CallDerek.ca
Georgetown Ontario Real Estate. Derek Dunphy, REALTOR®
Sunday, March 21, 2010
Thursday, March 18, 2010
ATTN: Variable Rate Mortgagors... It may be time to lock in!
Attention Georgetown Ontario Real Estate Blog followers:
There seems to be a lot of speculation about interest rates and where they are going over the last few weeks... If you are currently on a variable rate mortgage, I would strongly consider calling your mortgage advisor and asking them about their opinion on locking-in today!
As always, I suggest you call a mortgage broker to get the most competitive rate available (even if you take that rate to your bank and ask them to match)! This morning the lowest posted rate available for a 5-year fixed mortgage was 3.94%; and at least one mortgage broker has advertised 3.69%. For the most current rates available, see the "Mortgage Information" section of my website: CLICK HERE to go to my website!.
There seems to be a lot of speculation about interest rates and where they are going over the last few weeks... If you are currently on a variable rate mortgage, I would strongly consider calling your mortgage advisor and asking them about their opinion on locking-in today!
As always, I suggest you call a mortgage broker to get the most competitive rate available (even if you take that rate to your bank and ask them to match)! This morning the lowest posted rate available for a 5-year fixed mortgage was 3.94%; and at least one mortgage broker has advertised 3.69%. For the most current rates available, see the "Mortgage Information" section of my website: CLICK HERE to go to my website!.
Tuesday, March 9, 2010
Spring 2010 Newsletter
Written by me, for you... My Spring 2010 Newsletter is now online. Enjoy!
Spring 2010 Newsletter - CLICK HERE
Comments and Questions are appreciated.
Spring 2010 Newsletter - CLICK HERE
Comments and Questions are appreciated.
Saturday, February 27, 2010
Bank of Canada Urged to bump up rates...
Nonpartisan public policy think tank organization J.D.Howe Institute issued a press release this week from their Monetary Policy Council.
The policy group is largely made up of economist academics and bankers; who all recommended that interest rates should start to rise sharply, starting in July of this year. Where the rate will end up is a decision the Federal Government and the Bank of Canada will have to make; but if the council has it's way, we will see an increase of 50 basis points in July (from .25% to .75%), and further increases every few months until mid-2011, to a target rate of 2%.
Once again, if you are interested in buying a home this year - I advise you to strongly consider buying before July! Avoid the increased closing costs that will come with the HST implemenation, and avoid the risk of increased interest rates (which are almost certainly coming as well).
The policy group is largely made up of economist academics and bankers; who all recommended that interest rates should start to rise sharply, starting in July of this year. Where the rate will end up is a decision the Federal Government and the Bank of Canada will have to make; but if the council has it's way, we will see an increase of 50 basis points in July (from .25% to .75%), and further increases every few months until mid-2011, to a target rate of 2%.
Once again, if you are interested in buying a home this year - I advise you to strongly consider buying before July! Avoid the increased closing costs that will come with the HST implemenation, and avoid the risk of increased interest rates (which are almost certainly coming as well).
Saturday, February 20, 2010
Cautious Steps Taken to Prevent a Housing Bubble... As predicted!
"We're taking proactive, prudent, measured, and cautious steps today - to help prevent a housing bubble"; these were the words spoken by Jim Flaherty, Canadian Finance Minister on February 16th, 2010 - words many expected to hear (including this very BLOG at the end of 2009). The steps however were less far-reaching than many anticipated.
The goals of the Finance Minister were to help slow down rapidly rising housing prices across the country, and to help prevent the subprime crash our American neighbours experienced in 2008. Following the minister's comments, the banks weighed in - and in interviews given by Patricia Croft, RBC Chief Economist, and Derek Holt, VP Economics at Scotia Capital, both seemed to agree that the government's move was a good one (although Ms.Croft believed it came about 6 months too late). While sceptics (and many pure capitalists) argued that the government should leave the business of policy setting to the private industry; Derek Dunphy REALTOR from Johnson Associates Real Estate Ltd., Brokerage believes that the government should play a role in ensuring that Canadians can obtain affordable home ownership.
So, what were the steps taken? In broad terms, the steps were all subtle changes to the Canadian Mortgage and Housing Corporation (CMHC) policies:
1. Mortgage applicants will minimally need to qualify for a five-year fixed rate mortgage (even if they end up choosing a lower term or variable rate mortgage).
2. When refinancing a mortgage, the amount Canadians can withdraw from the equity of their home has been lowered to 90% (from the current rate of 95%).
3. A 20% down payment will be required for non-owner-occupied properties. Meaning investors will not qualify for high-ratio mortgages.
The immediate impact will be felt by many first-time buyers who will need an estimated $9200 more a year in income to qualify for an average priced house in the Greater Toronto Area (based on a house costing $337,000).
These changes come into effect April 19, 2010 - and that will likely cause some short term stimulation to sales, perhaps causing buyers that were planning late spring and summer purchases to act sooner.
Does your REALTOR understand the evolving market? If you are planning on buying or selling real estate in the Georgetown Ontario area (or anywhere else in the GTA), call Derek Dunphy, Salesperson with Johnson Associates Real Estate Ltd., Brokerage at (905)877-8233, or email Derek@CallDerek.ca. Derek's website can be viewed at http://callderek.ca/.
The goals of the Finance Minister were to help slow down rapidly rising housing prices across the country, and to help prevent the subprime crash our American neighbours experienced in 2008. Following the minister's comments, the banks weighed in - and in interviews given by Patricia Croft, RBC Chief Economist, and Derek Holt, VP Economics at Scotia Capital, both seemed to agree that the government's move was a good one (although Ms.Croft believed it came about 6 months too late). While sceptics (and many pure capitalists) argued that the government should leave the business of policy setting to the private industry; Derek Dunphy REALTOR from Johnson Associates Real Estate Ltd., Brokerage believes that the government should play a role in ensuring that Canadians can obtain affordable home ownership.
So, what were the steps taken? In broad terms, the steps were all subtle changes to the Canadian Mortgage and Housing Corporation (CMHC) policies:
1. Mortgage applicants will minimally need to qualify for a five-year fixed rate mortgage (even if they end up choosing a lower term or variable rate mortgage).
2. When refinancing a mortgage, the amount Canadians can withdraw from the equity of their home has been lowered to 90% (from the current rate of 95%).
3. A 20% down payment will be required for non-owner-occupied properties. Meaning investors will not qualify for high-ratio mortgages.
The immediate impact will be felt by many first-time buyers who will need an estimated $9200 more a year in income to qualify for an average priced house in the Greater Toronto Area (based on a house costing $337,000).
These changes come into effect April 19, 2010 - and that will likely cause some short term stimulation to sales, perhaps causing buyers that were planning late spring and summer purchases to act sooner.
Does your REALTOR understand the evolving market? If you are planning on buying or selling real estate in the Georgetown Ontario area (or anywhere else in the GTA), call Derek Dunphy, Salesperson with Johnson Associates Real Estate Ltd., Brokerage at (905)877-8233, or email Derek@CallDerek.ca. Derek's website can be viewed at http://callderek.ca/.
Tuesday, February 9, 2010
Strong January Real Estate Sales in the Greater Toronto Area
The real estate market, as expected and predicted right here on this BLOG is really starting to heat-up!
According to the Toronto Real Estate Board, whose SRATUS MLS system covers the entire Greater Toronto Area, recording a strong sales month in January. The statistics can be seen by visiting the CallDerek.ca website: January 2010 MarketWatch Report at CallDerek.ca
It's worth noting that the Johnson Associates Real Estate Ltd., Brokerage office recorded January sales that were roughly double January of last year. Once again outperforming all other offices in Georgetown Ontario.
To sell your home quickly and profitably contact Derek Dunphy, Sales Reprentative at Johnson Associates Real Estate Ltd., Brokerage: Derek@CallDerek.ca
According to the Toronto Real Estate Board, whose SRATUS MLS system covers the entire Greater Toronto Area, recording a strong sales month in January. The statistics can be seen by visiting the CallDerek.ca website: January 2010 MarketWatch Report at CallDerek.ca
It's worth noting that the Johnson Associates Real Estate Ltd., Brokerage office recorded January sales that were roughly double January of last year. Once again outperforming all other offices in Georgetown Ontario.
To sell your home quickly and profitably contact Derek Dunphy, Sales Reprentative at Johnson Associates Real Estate Ltd., Brokerage: Derek@CallDerek.ca
Sunday, January 24, 2010
How the HST Will Affect Home Buyers in Ontario
It seems that most Ontarians aren’t too concerned about the implementation of HST in Ontario this coming summer (the new tax goes into effect July 1st, 2010). On the surface it really doesn’t seem to be too impactful; we go from paying 5% GST and 8% PST, to paying 13% HST.
It remains to be seen if the effects of the HST will make a significant impact on home sales, but my feeling is that it will. The effect of the HST, coupled with changes proposed in CDN mortgages (see my blog from a couple weeks back), will almost certainly slow the real estate market down – in particular for first time home buyers.
It has been said that there are only two things certain in life: Death and Taxes. Well, this tax will not be the death of us, but it will slow us down a bit. My advice to you, if you are planning to buy a home this year: Buy soon and complete the purchase before July 1st. By buying this spring you will not only save on the increased HST fees, but you will lower your risk of getting a higher interest rate on your mortgage (rates seem to have nowhere to go buy up).
If you are thinking about buying or selling your home, call Derek Dunphy, Sales Representative at Johnson Associates Real Estate Ltd., Brokerage. Phone (905)877-5165, email Derek@CallDerek.ca, or contact through the website: http://callderek.ca/.
Perhaps the only people that should be concerned are some bureaucrats that collect taxes – it seems like we can now eliminate one of the old GST or PST collection offices. There is certainly going to be some efficiency realized through the harmonization, but there will undoubtedly also be some cash-flow negative results for Ontarians too.
HST now applies to areas that were previously PST exempt, which will now, among other things, increase the amount it costs to buy a home. Some fees which were previously PST exempt for home buyers include:
- Legal Fees
- Mortgage Insurance Premiums
- Home Inspection Fees
- Real Estate Fees
- Moving Fees
- Title Insurance
It remains to be seen if the effects of the HST will make a significant impact on home sales, but my feeling is that it will. The effect of the HST, coupled with changes proposed in CDN mortgages (see my blog from a couple weeks back), will almost certainly slow the real estate market down – in particular for first time home buyers.
It has been said that there are only two things certain in life: Death and Taxes. Well, this tax will not be the death of us, but it will slow us down a bit. My advice to you, if you are planning to buy a home this year: Buy soon and complete the purchase before July 1st. By buying this spring you will not only save on the increased HST fees, but you will lower your risk of getting a higher interest rate on your mortgage (rates seem to have nowhere to go buy up).
If you are thinking about buying or selling your home, call Derek Dunphy, Sales Representative at Johnson Associates Real Estate Ltd., Brokerage. Phone (905)877-5165, email Derek@CallDerek.ca, or contact through the website: http://callderek.ca/.
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