3 tips for secondary income suites

Buying a home with a secondary income suite, or with the intention of installing one, can be an effective way to offset steep mortgage costs in some of the hottest Canadian real estate markets.

And it should come as no surprise that they’ve become a widespread practice in Toronto and Vancouver, where the average price for a detached home now exceeds $1 million.
 
Considering rental vacancies are incredibly low in both cities – 1.6  per cent in Toronto, and 0.6 per cent in Vancouver – offering affordable housing seems like a guaranteed money maker. In fact, 80 per cent of rental units outside of purpose-built developments are located in private residences.
 
The Canada Mortgage and Housing Corporation (CMHC) recently recognized how secondary suites help…

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Mortgage Basics: Types of lenders

You have many choices when it comes time to get your mortgage.

Not only do the different types, terms, and options for the mortgage vary, but you also have options when it comes to choosing the lender for your home loan. It’s important that your lender offers you a competitive rate, but there are other things to take into consideration, such as flexibility, customer service, and the fact that not all lenders offer all types of mortgages.
 
Banks
 
The biggest players in the mortgage market by far are the commercial banks. Big banks provide the majority of home loans to consumers. The general public knows and recognizes their brands, and there’s also some brand loyalty for consumers who already make use of the bank’s other financial products. These…

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Two-thirds of B.C. residents say foreign ownership tax won’t cool real estate market: poll

Two-thirds of British Columbians don’t believe the new foreign ownership tax introduced by the B.C. government in July will help to cool down the red-hot real estate market in the province, according to a new poll.

On July 25, B.C. Finance Minister Mike de Jong announced foreign nationals who buy real estate in Metro Vancouver would pay an additional property transfer tax of 15 per cent. The additional tax means that a home selling for $2 million will amount to an additional $300,000 for a foreign buyer.

But a new poll conducted by Insights West suggests British Columbians have their doubts when it comes to the effectiveness of the tax.

Sixty-eight per cent say the new tax will be unsuccessful in “making it easier for British Columbians to afford…

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Want to buy a house in Canada? It’ll cost you 400 weeks of work

Millennials looking to get into Canada’s hot housing market don’t just have to pay more than their grandparents did, they’re having to work twice as long too.

New research from the Broadbent Institute in Ottawa on Thursday measured prices in terms of how many weeks of work are required to pay for it.

Marc Lavoie, a researcher with Broadbent Institute, found it took just over 200 weeks of work to buy the average Canadian home in 1970. That’s shot up to more than 400 weeks’ pay in 2015.

He said there are several reasons behind the dramatic rise.

“It’s much easier to get credit for mortgages now than it used to be, and the amount that can be obtained is much larger,” said Lavoie, who’s also an economics professor at the University of Ottawa.…

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5 Crucial Tips Anyone Buying a House Should Know

You’ve made up your mind to purchase a new home.

You have started looking at online listings to get a feel for the types of houses that are currently available. Before you give into those real estate temptations, there are a few crucial tips you need to bear in mind.

1. Know your Purchase Power
Before you even start looking at houses know how much your lender will pre-approve you for. Getting your heart set on a listing you can’t afford will taint your entire home buying journey. Keep in mind that there is usually negotiating room on a listing price, but try not to look at homes more than 10% above your pre-approved mortgage amount.

See our article on pre-approval/qualification

2. Decide what you are looking for
Know exactly what you are…

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Frequently Used Real Estate Terms

Frequently Used Real Estate Terms

If you are new to real estate and hear terms and phrases that you are not quite sure on their meaning why not bookmark this page and get your real estate terms explained.

Acceleration Clause

The acceleration clause in a mortgage contract states that the entire balance of the debt is due and payable in full should the mortgagee default on the mortgage.

Acquisition Cost

The acquisition cost combines the purchase price with the estimated closing costs of the home.

Adjustable Rate Mortgage

An adjustable rate mortgage is also referred to as an ARM. This type of mortgage includes a lower initial rate of interest that changes after a predetermined time has passed and it is adjusted periodically. At that…

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Do all home improvements make financial sense?

Not all home improvements make financial sense.

I hear questions from prospective sellers all the time regarding home improvements and will they add value to the home. A common question is "I am worried that my home improvements are not going to pay off at all when I sell my house. Do all home improvements make financial sense?"

Not all home improvements make financial sense. Some homeowners make improvements because they want a particular feature or “feel, ” without regard to the cost. Be leery of articles in popular magazines that imply these improvements are an automatic financial benefit. Lists of the percentage gains on individual components, like a bathroom or kitchen remodel, are common. Every home must stand on its own two feet, not…

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Getting a divorce? Think about the house

Getting a divorce is tough enough, but having to sort out the house and finances can seem like a daunting process.

Here’s a few tips on how to minimize your frustration, and financial exposure, during a divorce.

In era where almost half of marriages end in divorce we all must try to acknowledge that divorce and property is a messy business. The best solution is, obviously, not to get divorced. But if separation is imminent in your life you may be curious as to how a family break up with impact the marital home.

There are three basic scenarios as to what can happen to your marital home.

Sole possession. This is when one partner opts to buy out the other partner. Often a paid appraisal is conducted, which provides a current or fair market value…

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Real estate Myths, Fact or Fiction?

Have you heard or been told things that you think "that doesn't seem right" in regards to Real Estate?

A home is likely the most expensive purchase you'll ever make. And the best way to protect yourself from costly mistakes is to go in with a solid understanding of all aspects of the home-buying process. Feel like you're swimming in misinformation?

Well lets look at a few of these "myths" and debunk them. Here is a list of the “Top Real Estate Myths.” There is no particular order. A typical consumer would not encounter all of these (and may not experience any of them) in a transaction. We could substitute many different “myths” for the list above. Some of these may surprise you, so there are general comments about each myth.

1. Experienced agents…

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What things Realtors should tell you....

The vast majority of successful real estate agents are true professionals who take the long view.

Their advice is in their clients' best interests. Some agents go further by being fully transparent when conflicts arise (which often do) and make certain they are fully disclosed to their clients.

Realtors live a conflicted life.

On the one hand, they are salespeople that only make money when their deal closes.

On the other hand, they are consultants. They advise buyers and sellers throughout the process, ideally giving clients advice that is disinterested from their own financial outcome.

Often, these two objectives are aligned and there is no issue. For example, a listing agent makes more money if he is able to sell a house for a higher…

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