Last month, the Toronto Real Estate Board posted the above video to their YouTube channel. In the video, Senior Manager of Market Analysis, Jason Mercer, takes a look back at the 2011 real estate market and a look forward to what we can expect in 2012. Warning: the video is over 25 minutes long! Not to worry – I sat through the entire thing myself and have summarized the main points below (you’re welcome).
Mortgages
The Importance Of Having A Mortgage Pre-Approval
When I meet with a new buyer client, one of the very first questions I ask is, “Have you been pre-approved for a mortgage?” More often than not, they’ve haven’t. Sure, they’ve done a bit of research on their own; plugged some numbers into an online mortgage calculator, crunched a few more numbers to see what they’re comfortable spending each month… Don’t get me wrong – this preliminary leg work is great in that it gives you a ballpark idea of what you’re in the market for. It’s not the same as having an actual pre-approval though.
Say No To Status Quo And Repeal The Toronto Land Transfer Tax
A few months ago I wrote a BLOG post titled, “How Much Can You Expect To Pay In Land Transfer Taxes?” (read it here). I provided a breakdown of how the various provinces calculate these taxes. I even linked to a handy little calculator that shows just how much a resident of Toronto has to pay. Let’s just say… it’s not chump change.
How Much Can You Expect To Pay In Land Transfer Taxes?
Deposits, home inspections, legal fees… Whenever I start working with a new client I go though the list of closing costs that they need to budget for. One of the biggies is Land Transfer Tax.
Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.
Five For Friday
It’s roundup time! Let’s take a look back at some of the more interesting articles, videos, and photos that popped up over the past two weeks…
#5. Photos Of The Supermoon Above Toronto
On the 20th, Derek Flack of blogTO posted a choice selection of photos of Saturday’s supermoon. Stunning photos aside, I think David did a good job of summing up this rare natural wonder when he wrote, ”Impressive, yes. Jaw-droppingly amazing, not so much.” Read the full article here.
Federal Government Changes Mortgage Rules, Again
It’s been almost a year since the Feds last tightened lending rules (you can read my BLOG post from last February here). Last week, Jim Flaherty and the Government of Canada announced three further changes to the standards involved in Government backed mortgages:
- The maximum amortization period will be reduced from 35 years down to 30 years.
- The maximum amount Canadians can borrow in refinancing their mortgages will be reduced from 90% of the value of their home down to 85% of the value of their home.
- Government insurance backing on lines of credit that are secured by homes (eg. a home equity line of credit) will be withdrawn.
Looking Forward: What’s In Store For The 2011 Real Estate Market?
The Toronto Real Estate Board recently weighed in with their outlook for 2011/2012 by posting the above video to their YouTube channel. This video is the latest from TREB in a series featuring their Senior Manager of Market Analysis, Jason Mercer.
In his presentation, Mr. Mercer focuses on 3 key factors in his analysis of where we’ve been and where we’re going:
Looking Back: The 2010 Real Estate Market In Review
One of my favourite Real Estate blogs, BuzzBuzzHome, posted a great recap a few days ago of all the craziness that the Canadian real estate market experienced this past year (read it here). Looking back, there’s no doubt 2010 was a remarkably eventful year. Here’s my own breakdown of some of the highlights:
Don’t Be Mistaken When It Comes To HST
As noted in the above YouTube video, a recent Ipsos Reid survey revealed that 56% of Ontarians mistakenly believe HST applies to the full purchase price of resale homes. The survey was commissioned by the Ontario Real Estate Association in an effort to convince the Ontario government to launch a public awareness campaign to educate taxpayers and put an end to the confusion.
Should I Buy First Or Should I Sell First?
As my career in real estate grows (I’ll be entering my 5th year in the business next month), I find myself getting more and more repeat business from past clients. Generally, this comes in the form of them wanting to sell the home I helped them buy a few years ago and move up to something bigger. While this particular buying/selling scenario is not uncommon, it does have its own unique set of factors to keep in mind. The easiest way to explore these is with the question, “Should I buy first or should I sell first?”
