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Posts tagged with: mortgage

Demand for Housing Stays Strong

March 4, 2011

TORONTO, March 3, 2011 - Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010.

While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years.

“Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.

The average selling price for February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010.

“Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

** Provided By: TREB

Tagged with: real estate vaughan mary nacarato mandy coz mortgage home ownership job rate

Less Inventory = Buyers Competing for Homes = Great Sellers' Market!!!

February 18, 2011

Greater Toronto REALTORS® reported 3,084 sales during  the first two weeks of February 2011 – a 13% decrease compared to the first two weeks of  February 2010.

"We are on pace for a strong sales result in February, but transactions will come in lower than the record result reported last February. Sales remain strong because the GTA resale market contains a diversity of housing types catering to a wide array of home ownership needs," said Toronto Real Estate Board (TREB) President Bill Johnston.

The average price for transactions during the first 14 days of February was $451,257, representing a five% increase compared to the first two weeks of February 2010.

"Average selling price growth for existing homes is expected to range between three and five percent this year. Tighter market conditions over the last four months have pushed price growth to the top end of this range," said Jason Mercer, TREB's Senior Manager of Market Analysis.

 

** Provided By TREB, February 17, 2011

Tagged with: real estate market vaughan realtor mary nacarato mandy coz the nacarato team remax premier mortgage

New Mortgage Rules - Tougher Lending Practices?

January 17, 2011

The federal Conservative government is expected on Monday to introduce new rules aimed at toughening up mortgage lending.


In February of 2010, Mr. Flaherty moved to toughen up the mortgage rules amid worries that Canada was in the midst of a housing market bubble. The reforms, since introduced, compelled borrowers to meet standards for a five-year fixed-rate mortgage, even if the buyer wanted a shorter-term, variable rate loan; reduced the amount Canadian can borrow against their home, to 90% of the property value from 95%; and require purchasers of rental properties to issue a 20% down payment as opposed to 5%. The moves played a role, observers say, in slowing down real estate activity.


In today’s announcement The key change Finance Minister Jim Flaherty is likely to unveil is a cut in the maximum amortization period, to 30 years from 35 years. Mortgages with amortization periods longer than 30 years will no longer qualify for government-backed mortgage insurance, which is required for buyers with less than a 20% down payment on a home.


Government sources also told the National Post Mr. Flaherty is expected to lower the maximum amount Canadians can borrow against the value of their homes, to 85% from 90%, and remove federal government backing of home equity lines of credit, or so-called HELOCs.


The sources, who spoke on condition of anonymity, add the minimum down payment, at 5%, will remain as is. Further, there will not unveil any plan to target condominium purchases by requiring monthly condo fees be added to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage.


The Bank of Canada recently warned debt levels are growing faster than income, and the risk posed by consumer indebtedness to the domestic economy would continue to escalate without a “significant change” in how consumers borrow and banks lend.


The new changes, though, reduce even further the amount people can borrow against their homes, to 85%. Also, the changes target HELOCs, which Mr. Flaherty cited as a source of concern in a recent interview. Home-equity lines of credit surged 170% over the past decade, or twice the rate of mortgage growth, and now represent 12% of overall household debt. With the new rules, Ottawa will no longer back the HELOC, as it was doing up until now through mortgage insurance. Instead, sources say, the government will signal that the banks are on the hook for any default linked to a HELOC it issued. 

 

While the federal government looks to curb borrowing, economists say the Bank of Canada may have to follow by raising its key interest rate sooner rather than later. The central bank issues its latest rate statement on Tuesday and it is expected to hold its benchmark rate at its present 1% level as signs indicate the economy may be benefiting from renewed business and consumer confidence in the United States.

** Provided By:  Dominion Lending Centres

Tagged with: mortgage variable rate fixed rate real estate lending canadian economy mary nacarato mandy coz

The Housing Year in Review

January 7, 2011 - Updated: January 7, 2011

Greater Toronto REALTORS® reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by one per cent compared to 2009.

“Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term,” said TREB President Bill Johnston.


“New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved,” continued Johnston.


The average home selling price in 2010 was $431,463 – up nine per cent in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was five per cent.


“At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This
was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.


“Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation,” continued Mercer. “Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income.”


Home sales in the GTA were spread across a number of different housing types in 2010. Detached homes accounted for 49 per cent of total sales. Condominium apartments accounted for an additional 25 per cent per cent of sales. Other housing types including townhomes and semi-detached houses accounted for the final 26 per cent. In some areas like TREB’s central districts the mix was quite different, with condominium apartments accounting for 61 per cent of total sales.


“Ownership housing is available in a diversity of types and price points across the GTA, allowing plenty of choice for first time buyers and experienced home buyers alike. This housing diversity is one factor that continues to make the GTA a popular choice for households and businesses,” concluded Johnston.

** Provided By: The Toronto Real Estate Board - Jan 6, 2011

Tagged with: market real estate mortgage rates salesperson agent toronto vaughan detached condo affordability hst

Lower Mortgage Rates? Woohoo!

October 13, 2010 - Updated: October 13, 2010

Great news!  Mortgage rates come down again...  click on link to the Toronto Star article to read more:

http://www.moneyville.ca/article/874866--more-banks-cut-residential-mortgage-rates

Should you need help selecting the right mortgage product, give us a call - we have a fabulous mortgage broker on our team.

 

Tagged with: mortgage td bank mortgage agent bmo lower rates fixed rate mortgage variable mortgage remax

A Balancing Act - A Report on the Current Market Situation

October 5, 2010 - Updated: October 5, 2010

TORONTO, October 5, 2010: 

Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010.

This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.

“The level of sales in the second half of 2010 has been lower, representing a

balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.

The average price for September transactions was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657.

“Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.  “It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow.”

** Provided By: TREB

Tagged with: gta toronto housing statistics mortgage balance market treb

A Bump in the Road

October 2, 2010 - Updated: October 2, 2010

When working with Buyers, it is truly important that they be pre-approved for a mortgage before their search for a home begins.  Having a pre-approved mortgage amount makes the search for a new home much easier and less time-consuming because you will have a price range in mind during the shopping process.  We have mortgage professionals on our team that we refer from time to time, however - what are some of the challenges that come up when a Buyer is working with their own bank or mortgage broker?

A few months ago we came across a hiccup in one such situation.  We received a referral for a young couple who were looking to buy their first home.  At our original appointment, we asked if they had been pre-approved - they assured us that yes they were subject to certain conditions with their own mortgage broker.  We proceeded to work with the Buyers, taking them out to see homes and found a property that they wanted to call home.  During the conditional period after acceptance of the offer, we received a call from our clients who were in a panic - their mortgage broker would not give them their financing due to the location and certain features of the property.

Under time constraints, we put them in touch with our in-house mortgage broker who was able to get them their financing with an A-Lender (within 24 hours), and also saved them about $8,000 in extra fees that they were paying to their original mortgage broker who had placed them with a B-Lender.  Needless to say, we had some very happy clients on our hands.

In closing, a little caution in reading the fine print and understanding conditions goes a long way.  We are here from start to finish so let us be part of your team.

Tagged with: mortgage prequalified broker troubles buyer seller agent

Contact Me

Mary Nacarato & Mandy Coz Sales Representatives
RE/MAX Premier Inc., Brokerage Independently owned and operated
9100 Jane Street
Vaughan, ON   L4K 0A4

Phone: 416-987-8000Mobile: 416-451-0177Fax: 416-987-8001
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