"Real Estate Bits - 2"

March 2004

Money Matters...

Presented By: Glen Travers - Manager - Scotiabank
(416) 932-3034
E-Mail: glen.travers@scotiabank.com

"Being A Financially Savvy Homeowner"

Before you start thinking about the kind of home you want and where you want to live, it's a good idea to take a financial inventory! This stage of the process - saving, budgeting and planning is not nearly as exciting as choosing a neighbourhood and looking at homes, but it will put you in the best position when it comes time to talk mortgages.

Preparing To Buy A Home:

For most of us, the first step in the home-buying process is to ramp up our savings - the more you can put towards a down payment, the less interest you will pay and the more you may save on mortgage insurance. If you don't already have a budget then prepare one. You may want to talk to your accountant or financial advisor for advice on creating a workable budget.

Paying down debt and building a good credit history are also part of this process. The better your credit history, the more leverage you will have when negotiating a mortgage.

How Much Can I Afford To Spend?

The first lending principle states that your monthly housing costs - including mortgage payments, insurance, property taxes, applicable condo fees - should not exceed 32% of your family's gross monthly income. This is known as the Gross Debt Service Ratio (GDSR) calculation.

The second lending principle states that monthly housing costs plus all other debt (loans, credit cards, lease payments) should not exceed 40% of your family's gross monthly income. This is known as the Total Debt Service Ratio (TDSR) calculation.

Pre-Approved Mortgages:

Once you've set your savings plan and determined how much you can afford, getting a pre-approval is the next step. Having a pre-approved mortgage tells potential Sellers that you are serious about entering the housing market. A pre-approved mortgage qualifies you for mortgage financing at an interest rate that is typically guaranteed for 120 days from the time that financing is arranged. To prepare yourself for the kinds of questions that mortgage lenders will be asking, call your banking or financial contact and find out what you need to bring with you to a meeting.

Remember:

You can purchase a home with as little as 5% down. However if your down payment is less than 25% of the home's appraised value or its purchase price - you are required to purchase mortgage insurance and will need to be approved for a CMHC hi-ratio mortgage, in addition to your bank's mortgage pre-approval. The above information is helpful, not only for first time buyers, but also for anyone who is thinking about upgrading and has forgottern all the necessary steps in the financing process. Please call me if I can be of assistance with your mortgage needs.

Regards,
Glen.

"Tricks Of The Trade"

"Really Worthwhile Property Renovations"

You may not be thinking of selling your current home or condominium now, but at some to our homes as time goes by, and it's prudent to make wise choices about how much money to spend, and where and how to spend it. If you plan to do something in your home that is expensive, non-traditional or very personal, be sure that you will enjoy it for the time you own the house, because that money may not come back to you when you sell. An example would be a $100,000 kitchen in a lower to mid-range house The following are some good ideas that many potential buyers appreciate and are happy to pay for in many real estate transactions.

• Painting and decorating the interior of the house.
• Exterior painting makes a great "first impression".
• Immaculate, move-in condition homes.
• Kitchen renovation.
• Flooring upgrades - especially hardwood.
• Basement renovation - excellent if the house is a small 2 storey or a bungalow.
• New furnace/CAC.
• Solid mechanics throughout the house.

If you are looking for other things that buyers really like, this list is a good one to contemplate:

• Main or second floor laundry.
• A well equipped, ground floor home office.
• "Smart" house wiring.
• Whirlpool bath and separate shower stall.
• Main floor powder room.
• Built-in kitchen appliances.
• Kitchen island (better with a sink).
• Under-counter kitchen lighting.
• Neutral, paint tones.
• Home theatre or separate 'entertainment' room.
• Skylights.
• Built-in storage.
• Spacious, outdoor decking and patios.
• Unused garages converted to 'summer rooms'.
• Landscaping, especially with a water feature, and good outdoor lighting.
• Use of colour/texture in furniture and drapery fabrics.
• Contrasting floor and furniture colouring.
• Simple lines and uncluttered spaces.

Regards,

Rosemary ...

Okay, Okay - Here's "The Joke"

Carol, a mother of 2, was observing her children sledding in the back yard one sunny winter day. She noticed a pattern in their play and finally called her 8 year old son James in to the kitchen to speak to him. "James", she said, "I thought I told you to share the toys equally with your sister". James looked at Carol and said, "Mom, I am sharing. Becky plays with the sled going up the hill and I play on the sled coming down".

Father to 6 year old son, Harry: "When I was your age, I was too poor to buy lunch and I had to work every day after school, even though I was only in Grade 1. Harry replied," Gee Daddy, I guess you're a lot happier now that you live with Mommie and me".

Guest Columnist

~ A Guest Columnist Will Return ~

Ask An Expert?...

As promised this space is reserved just for you. Please send any questions you have to my e-mail. You get to have a free telephone consultation with the "Expert" of your choice. If you subsequently choose to establish a business relationship with that person/company then you should define the specific details of any business contract with that person or company!

mail@rosemarywright.com  and I will get you an answer or connect you with the Appropriate Expert.

• Ask A Lawyer?
• Ask A Painter?
• Ask A Surveyor?
• Ask A Designer?
• Ask An Accountant?
• Ask A Tradesperson?
• Ask A Home Inspector?
• Ask A Financial Adviser?
• Ask A Colour Specialist?
• Ask An Insurance Broker?
• Ask An Interior Decorator?
• Ask A Web-Site Designer?
• Ask A Kitchenware Retailer?
• Ask A Landscape Designer?
• Ask An Employment Lawyer?
• Ask A Banker/Mortgage Broker?
• Ask A Firecode/Retrofit Specialist?
• Ask A Garden Sculpture Specialist?
• Ask A Basement Waterproofing Specialist?

The above article(s) provide information that is of a general nature only and is never intended to be a substitute for advice specific to your particular concern. No one should act upon such information without appropriate advice and/or consultation.

Please Call Me With Any Real Estate Questions.

I’m Always Here To Help!!!

-Rosemary Wright...

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Client & Networking referrals are the foundation of a successful real estate agent’s career.  Over many years in this industry I have enjoyed the confidence & repeat business of my clients.  I appreciate your on-going support and want you to know that I will always look after friends & colleagues you refer to me with professionalism, care and respect.

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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. 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.