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"Real
Estate Bits - 2"
August
2009
Money Matters
Presented By: Nino Pasquariello - Manager - Scotiabank
Yonge and Eglinton Branch
(416) 932-3885 #7000
E-Mail:
nino.pasquariello@scotiabank.com
Mortgages - To Early Renew or Not to Early Renew?
That’s A Good Question
Many of us are locked into closed mortgage terms at rates significantly higher than the prevailing mortgage rates available today. All of us would love to obtain the lowest possible rate, but perhaps you are unclear as to what your options are.
My first piece of advice would be to call your lending institution and make an appointment to meet with your Mortgage Specialist in person. This is important for several reasons, the most important one being that you can negotiate the best possible deal face to face, and inquire about any discretionary reduction in penalties.
Some Lenders will offer to blend your existing rate with today’s lower rates, for a longer, extended term. The result of this scenario is a good one, as it usually helps you avoid any kind of interest penalty. If you are looking to obtain the lowest mortgage rate available today rather that blending, the chances are that your Lender will charge you an interest penalty, which could be substantial. Some Lenders will charge a penalty equal to the interest rate differential to maturity of your term.
Try having a discussion with your Mortgage Specialist to hear what options you have: maybe a Cashback feature is available to offset your penalty, for example. Can the Mortgage Specialist invoke any discretion to soften the penalty? Also, try what I call the “give to get” approach. Suggest to your Mortgage Specialist that you are prepared to transfer over additional business, or perhaps refer a prospective mortgage client in exchange with a reduced penalty.
In the end, it makes sense financially to early renew if you still have more than say one year left in your term. The interest savings will likely justify the cost, if any, and equally important, you avoid the reinvestment risk of not knowing where rates will be if you wait until your current term matures.
Regards,
Nino
Pasquariello.
Tricks Of The Trade:
Choosing A Contractor
The watchword is “interview”.
Check References - always see past jobs & talk to former clients.
A cheap price is probably not a good deal.
Is there a good vibe with this person?
Is he a general contractor?
Ask for a written estimate.
Ask For A Written Contract - Scheduled As:
1/3 up front.
1/3 at the 60% completion mark.
1/3 minus a “hold back” on completion.
Have a clean up clause - a damage clause.
Have a late delivery clause.
Who takes away garbage?
Who provides drawings and permits?
Is he bonded and insured?
Is he licensed or certified?
Does he belong to any associations?
Has he ever been sued?
Start time every morning?
Finish time at night?
Does he work week-ends?
Who picks up supplies?
Has he listened to your requirements?
Did he offer any creative suggestions?
Do you like him? Gut level reaction?
Horror stories with contractors usually start with poor choices and a poor plan. Take your time and don’t become another statistic!
Regards,
Rosemary...
Okay, Okay - Here's The Joke …
Another
Really Bad Joke
Letters To Dear Abby:
Dear Abby,
What can I do about all the Sex, Nudity, Bad Language and Violence on my VCR?
Dear Abby,
I have a man I can't trust. He cheats so much. I'm not even sure the baby I'm carrying is his.
Dear Abby,
I am a twenty-three year old liberated woman who has been on the pill for two years. It's getting expensive and I think my boyfriend should share half the cost, but I don't know him well enough to discuss money with him.
Dear Abby,
I've suspected that my husband has been fooling around, and when confronted with the evidence, he denied everything and said it would never happen again.
Dear Abby,
I joined the Navy to see the world. I've seen it. Now how do I get out?
Dear Abby,
My forty year old son has been paying a psychiatrist $50.00 an hour every week for two and a half years. He must be crazy.
Mid-Month Market Update:
GTA Realtors Report August Mid-Month Resale Market Figures
Toronto - August 18, 2009: In the first two weeks of August, GTA reported 3832 sales - up 27% compared to the first two weeks of August 2008. The average price for these transactions was up 3% cent year-over-year to $383,796.
"The results for the first half of August indicate that many households in the GTA remain confident in their ability to purchase and pay for a home over the long term," said TREB President Tom Lebour.
Year-to-date sales, at 54,303 are up slightly compared to 54,138 in 2008. Average price, at $385,603 is down by less than one-half of 1%. "Strong re-sale housing demand will contribute to broader economic recovery as each transaction results in substantial spin-off benefits to other sectors of the economy," explained Jason Mercer, TREB's Senior Manager of Market Analysis.
Summary of Mid Month August Sales & Average Prices 2008 and 2009
City of Toronto - (416):
2009 Sales = 1465 Average Price = $391,252
2008 Sales = 1192 Average Price = $394,563
Rest of the GTA - (905):
2009 Sales = 2367 Average Price = $379,181
2008 Sales = 1827 Average Price = $360,326
GTA:
2009 Sales = 3832 Average Price = $383,796
2008 Sales = 3019 Average Price = $373,844
Ask An Expert?
These are just some of the professionals who can help you
with your home ownership concerns. If you subsequently
choose to establish a business relationship with any
person/company then you should be sure to define the
specific details of the relationship or business contract
before you proceed.
-
Ask An Interior Decorator?
-
Ask A Kitchenware Retailer?
-
Ask A Landscape Designer?
-
Ask An Employment Lawyer?
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Ask A Banker/Mortgage Broker?
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Ask A Firecode/Retrofit Specialist?
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Ask A Garden Sculpture Specialist?
-
Ask A Basement Waterproofing Specialist?
Business Referrals
Client & Networking referrals are the foundation of a
successful real estate sales representative's career. Over many years in
this industry I have enjoyed the confidence and repeat
business of my clients. I appreciate your on-going support
and want you to know that I will always look after friends
and colleagues you refer to me with professionalism, care
and respect.
Rosemary Wright
Sales Representative
Sutton Group-Bayview Realty Inc., Brokerage
Independently Owned & Operated
(Bus): (416) 483-8000
(Fax): (416) 463-0159
WebSite:
www.rosemarywright.com
E-Mail:
mail@rosemarywright.com
"Professional Service With A Personal Touch"
This newsletter is never sent unsolicited. If you wish to
be removed, please reply to this
E-Mail with the words "Remove from Newsletter" in the
subject line or call me at
(416) 483-8000 to request removal.
The intent of the newsletters - "Real Estate Bits" &
"Real Estate Bits - 2" is to provide information to you
regarding real estate. Personal details such as your
name, contact information and address are never revealed
to anyone without your consent. In accordance with the
new
Privacy Act,
your consent must be given
(either implicitly or explicitly) to receive these
newsletters.If you do not want to receive my newsletters
- please notify me. My newsletters are not
intended to solicit Buyers or Sellers who are currently
under contract with any Broker.
The information and opinions contained, statistics and
articles are courtesy of TREB, CMHC or other individuals
or companies and are believed to be reliable, but their
accuracy is not guaranteed. Sutton Group-Bayview Realty
Inc., Brokerage and Rosemary Wright accept no
responsibility whatsoever for any loss arising from any
use or reliance on the accuracy and timeliness of the
information contained herein. Every endeavour is made to
ensure accuracy. These newsletters do not render
financial, legal, accounting, home inspection or
professional advice. They are for general educational
purposes only. They do not offer do-it-yourself advice.
We encourage you to always contact the appropriate
professionals or specialists to address your individual
needs.
E&OE
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