Government of Canada Takes Action to Strengthen Housing Financing

The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada’s housing market and continue to encourage home ownership for Canadians.

“Canada’s housing market is healthy, stable and supported by our country’s solid economic fundamentals,” said Minister Flaherty. “However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing.”

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

• Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.

“There’s no clear evidence of a housing bubble, but we’re taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” said Minister Flaherty. “If some lenders aren’t willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families.”

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

___________________________________
For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

http://www.fin.gc.ca/n10/10-011-eng.asp

What they sold for? Greater Toronto Area

Hello there;

Just wanted to inform you on what type of purchases buyers are making these days across the Greater Toronto Area. These stats are for the month of January 2010

1% of buyers purchased a home under $110,000

9% of buyers purchased a home between $110,001 and $200,000

25% of buyers purchased a home between $200,001 and $300,000

27% of buyers purchased a home between $300,001 and $400,000

17% of buyers purchased a home between $400,001 and $500,000

21% of buyers purchased a home $500,001 and up

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

Source: The Toronto Real Estate Board

Beware of promises that sound too good

“List with me and I guarantee to sell your home in 60 days or I will buy it myself.”

How many times have you seen advertisements like this from real estate salespeople? I have often been asked whether these guarantees are in fact legitimate. As with most advertising claims regarding guarantees, there are always terms and conditions that the guarantee is subject to, and these conditions must be immediately brought to the attention of any consumer at the time any inquiry is made about the guarantee.

In addition, the terms and conditions cannot contradict the main point in the advertising.

In a discipline case decided in March of 2008 by the Real Estate Council of Ontario, a real estate broker made a guarantee that if a buyer bought a home through the broker, then the broker would sell their home in 120 days or he would buy it himself. The buyer found a home to buy with this broker and then listed their home with the same broker. The home did not sell and then the broker refused to buy the seller’s home.

The reason given was that although the buyer did buy a home using the broker as a buyer representative, the buyer did not buy a home that was actually listed with this same broker. The broker was fined $10,000 for this misleading advertising.

Some terms and conditions may state that the salesperson will only pay 80 to 95 per cent of the appraised value. But many other points are left vague. Is the real estate commission included or excluded? When is the appraisal to take place? Who conducts the appraisal? What if the property needs repairs? Who pays for this?

If you intend to rely on any guarantee, be sure to get all these terms and conditions in advance in writing, before signing anything.

Selling a home or condominium is complicated. There is a lot of money involved and potential liability if you are not honest with any buyer about the condition of your home.

That’s why it’s important sellers receive the highest quality of representation, to both make sure they obtain the best price for their property, but also to avoid any risk of being involved in any kind of legal proceedings.

In my opinion, you do not need any guarantee; you need the right salesperson to represent you.

To make sure you find the right real estate salesperson to sell your home, remember the following:Ask your friends, relatives and colleagues for references;

Drive around your area and look for signs that say “sold” on them;

Check the information on the salesperson’s website; the more helpful the information, the better;

Review examples of their marketing materials to see how professional they look;

Carefully review the salesperson’s sales history. Ask how many homes they listed last year and how many sold, as well as how long on average it took for each of their homes to sell as compared to the average on your local market.

The salesperson will prepare a comparative market analysis giving you an idea as to what your own home should sell for. Review this carefully.

Read the testimonials of previous clients of the salesperson and call them yourself to verify the information.

By doing your homework in advance of finding the right salesperson to sell your home, the greater your chances of being satisfied.

It is not about catchy advertising slogans or guarantees, it is about results.

Mark Weisleder is a lawyer, author and public speaker for the real estate industry and a regular contributor to Real Estate News. Email: mark@markweisleder.com

Toronto Star

Editor’s picks

January 22, 2010

Mark Weisleder

SPECIAL TO THE STAR

Source:

http://www.yourhome.ca/homes/realestate/article/753908–beware-of-promises-that-sound-too-good

Sales Start off Strong in 2010! Toronto Real Estate and GTA Real Estate

Hello Everyone;

Check out the “Market Watch” Report done by the Toronto Real Estate Board.

Click Here to read the report!

Click Here if your thinking of selling and would like an online evaluation!

Toronto’s WinterCity Festival!

Starts: January 29, 2010
Ends: February 11, 2010

Cost: Free

3 festivals in 1!

WOW! Series at Nathan Phillips Square
-Beat the cold with a spectacular fire installation, gravity-defying aerial dance performances, ice sculptures and themed skating parties.

Warm Up Series at Toronto Attractions
-Five special performances and events produced by Toronto-based artists and institutions.

Winterlicious at Toronto Restaurants
Experience a series of mouth-watering culinary events or indulge in great food at great value with the ever-popular prix fixe promotion.

For more information contact:
Phone: 311

Address:
WOW Series! takes place at Nathan Phillips Square
100 Queen Street West
Queen Street West and Bay Street
Map to this event

TTC: Exit Queen Subway Station (wheelchair accessible) or Osgoode Subway Station.

For other event locations, please visit www.ttc.ca to plan your route!

www.toronto.ca/special_events/wintercity/2010

Hiring a Home Inspector!

It’s often said that one of the most expensive and important purchases you will ever make will be your home. However, unlike the guarantee a buyer receives with most purchases, there’s no money-back guarantee or return policy if you’re not satisfied with your recently purchased home. Once you buy a home, you’re on your own to maintain it, repair it, anticipate problems and pay the bills. This is why it’s best to know as much as you can about potential problems before you make the commitment to buy.

What Home and Property Inspectors do

One of the best ways to understand about a home’s condition, habitability and safety is to hire a professional home inspector¹. A properly trained home inspector will review your house as a system, looking at how one component of the house might affect the operability or lifespan of another. Home inspectors will go through the property and perform a comprehensive visual inspection to assess the condition of the house and all of its systems. They will determine the components that are not performing properly as well as items that are beyond their useful life or are unsafe. They will also identify areas where repairs may be needed or where there may have been problems in the past. Inspections are intended to provide the client with a better understanding of property conditions, as observed at the time of the inspection.

A pre-purchase inspection for a 165 to 205 m² (1,800 to 2,200 sq. ft.) home typically takes about three hours and costs around $500. Following the inspection, the buyer is presented with a written report, consolidating the details of the inspection. The home inspector should be willing to answer any questions a buyer might have and to clarify the limitations of the inspection to avoid misunderstandings. CMHC recommends that potential buyers accompany the inspector as the inspection takes place. It can be a valuable learning experience.

Scope of the Inspection

Home inspections are intended to provide information regarding the condition of systems and components of the home at the time of the inspection. It will help you make an informed purchase decision.

The home inspector will provide a visual inspection by looking at the home’s various systems, including interior and exterior components. The inspector will check exterior components including roofing, flashing, chimneys, gutters, downspouts, wall surfaces, windows, doors, the foundation and the grading around it.

Note that if the inspection takes place in the winter, the roof and the foundation may not be fully visible for inspection if they are covered with snow and ice. For safety and insurance reasons, the home inspector would not typically climb up on snow or ice covered roofs. However, the home inspector will inspect the roof from the ground or other vantage point. This also applies to the chimney and downspouts.

If problems or symptoms beyond the scope of the inspection are found, the home inspector may recommend further evaluation.

Interior systems the home inspector will check include electrical, heating, air conditioning, ventilation, plumbing, insulation, flooring, ceiling and walls, windows and doors. Note that a home inspector is not qualified to inspect a wood-burning appliance such as a fireplace or wood stove unless they are WETT (Wood Energy Technology Training) certified. Many home inspectors are, but do not carry out a WETT inspection as part of the standard home inspection unless it is requested. This is an extra request and will add at least one hour to the inspection time. To be properly inspected, a chimney must first be cleaned.

As with the outside of the home, the inspection of the interior systems is visual, meaning that the inspector will be unable to see behind walls or under the floor.

Unless otherwise arranged, typically a home inspection does not include appraisals, exact quotes for repairs, or determine compliance with regulatory requirements. A home inspection is not intended to provide warranties or guarantees.

Choosing a Home Inspector

Home inspection is a discipline that requires special training, knowledge and communication skills.

However, there is presently no mandatory certification and no legislated requirement for home inspectors to take any courses or to have passed any tests. Anyone can say that they are a home inspector. That is why it is important to choose an inspector wisely.

Reputable home and property inspectors generally belong to a provincial or regional industry association. These associations have set standards, which, in some cases, are recognized by provincial governments. Some associations have developed membership categories based on the individual members’ qualifications. In most provinces, a member cannot advertise or promote his or her membership in the association until they have reached the minimum standards of a practicing member. Standards may vary from province to province.

The Canadian Association of Home and Property Inspectors (CAHPI) with the support of CMHC, Human Resources and Social Development Canada and the Construction Sector Council, developed a voluntary national accreditation and certification program to help ensure the competency and professionalism of home inspectors. Home inspectors who have met the requirements of this national certification program are designated National Certificate Holders.

The following questions/answers have been prepared to help you to choose a home inspector:

1. How do I find a home inspector?

   Check association websites, the Yellow Pages™ or housing or home trade magazines. Ask friends or family members. Your real estate agent may also make a suggestion. However, be aware, under provincial regulations for some provinces, and the code of ethics for real estate agents, agents are not permitted to recommend or provide the name of only one home inspector. They are, however, permitted to provide a list of home inspectors from which you can choose.

   The only alliance home inspectors should have is to their professional association and their only allegiance should be to the homebuyer.

2. How long has the home inspector been in business?

   The competence of a house inspector can be expected to improve with the number of years in business and the number of home inspections conducted. Experienced home inspectors will be better prepared to assess the condition of the house.

3. What are the home inspector’s qualifications?

   Look for people who belong to a provincial association and who have taken inspection courses such as: defect recognition, building sciences, and home construction. Professional home inspectors are typically bound by a strict code of ethics and must adhere to specific standards of practice. Knowledgable home inspectors will have a general understanding of all the various systems and components in a home. Many have practical experience or a background in engineering, construction and related building trades.

   Keep in mind that at this time, anyone can become a member of a home inspection association. Many associations have different levels of membership. Being an association member does not necessarily mean that a member has successfully completed a certification process. Check to make sure that the inspector has successfully completed the association’s certification process.

4. How do I know that a home inspector has the necessary qualifications?

   You should ask to see proof of their membership in a provincial association. In most provinces, a member cannot advertise their membership in the association until they have reached the minimum standards of a practicing member. The association in your province will be pleased to clarify their membership categories and any particular inspector’s membership level. Inspectors meeting the requirements of CAHPI’s National Certification Program have a National Certificate Holder designation.

5. Can the home inspector provide three references?

   Any qualified home inspector should gladly provide this information upon request. Call the people named as references and ask whether they were satisfied with the service they received from the inspector. You can also check with the Better Business Bureau.

6. Can the home inspector also be hired to do repairs or improvements?

   Many home inspectors associations have code of ethics that prevent home inspectors from offering services to repair or improve homes they have inspected. While they may provide you with a personal opinion based on past experience, it is recommended that you obtain three independent quotes from qualified contractors.

7. Does the home inspector conduct inspections at night?

   It is not desirable to conduct an inspection at night, since a number of the vital components of the exterior of the house cannot be seen properly.

8. Where can I get more information about the home inspector and/or his/her firm?

   The home inspector may point you to the firm’s website, to their industry association, provide company details, list inspector qualifications or describe a range of services offered.

9. What should a home inspector provide following the inspection and when will I receive it?
   
   The home inspector generally provides a written report reviewing every major home system and component within 24 hours of the inspection.
10. Should I hire a home inspector to inspect my new home?

    A pre-delivery inspection (PDI) may be a requirement in closing the purchase of a new home. During the pre-delivery inspection, the homebuyer and builder inspect the home to ensure both parties are satisfied that the conditions of the sales agreement have been met, any outstanding work, and warrantable defects or deficiencies, are identified. If you do not feel that you have the knowledge to judge whether or not your new home meets the conditions set out in the agreement you could retain a home inspector to help you. Note that some builders have policies concerning who may be present during the pre-delivery inspection so it’s best to inquire with the builder during the negotiation of the sales agreement whether or not this is possible.

    You should also be aware that pre-delivery inspections are fairly specialized and not all home inspectors have experience in this area. If you have permission from the builder to bring a home inspector to your PDI, enquire if the inspector has the knowledge/experience to conduct this type of inspection.

A Final Note :

CMHC does not recommend or endorse any individual home inspector or association. CMHC supports national uniform standards of competency for home inspectors.

For more information on the inspection industry’s National Certification Program, please refer to the National Certification Authority’s website http://www.nca-anc.com/

¹ Property inspectors inspect commercial properties. Many inspectors perform both home and property inspections.

Source: CMHC

http://www.cmhc-schl.gc.ca/en/co/buho/buho_001.cfm

If your thinking of buying or selling a home in the Greater Toronto Area please visit www.GTAHomeWire.com and request any information you desire.  We would be happy to send you the information you requested promptly.

Understanding the Buyer

Understanding the buyer

As the seller, you can control three factors that will affect the sale of your home:

* The home’s condition
* Asking price
* Marketing strategy

However, it’s important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers’ market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.

Location
Unfortunately, the most influential factor in determining your home’s appeal to buyers is something you can’t control: its location. According to the National Association of REALTORS®, neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.

Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and “empty nesters,” or couples whose children have grown up and moved out.

Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the “hot ticket” items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That’s not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.

January Mid-Month Housing Statistics. Toronto Real Estate

GTA REALTORS® REPORTING JANUARY MID-MONTH HOUSING STATISTICS

Click here to read the full Report from the Toronto Real Estate Board

Click Here if your interested in an online home evaluation

GTA new home sales up 24 per cent in 2009. Toronto Real Estate

New home sales in the Greater Toronto area were up by 24 per cent in 2009 compared to a year earlier, according to figures released today.

The Building Industry and Land Development Association (BILD) stated 33,165 new homes and condos were sold in the GTA, compared to 27,153 in 2008.

Most of those sales were in the second half of the year when consumer confidence, sparked by low interest rates, returned to the market.

The solid figures were helped by a strong December, with 3,148 home sold, representing a more than five-fold increase over December of 2008.

The recovery was “kick started by builders slashing costs and margins on inventory and new product to the bone,” said the association.

“It was propelled by an improving economy, increased consumer confidence and overall housing affordability.”

That strength has continued into 2010. Sales in the first two weeks of January were almost double those of the same period last year – 1,749 so far this year up from 888 at the same time in 2009, according to figures released by the Toronto Real Estate Board on Monday.

The average price of a home in January was also up, at $395,307, compared with $332,495 in the same month in 2009.

The board expects the strength in sales and pricing will continue for the next few months.

Please visit www.GTAHomeWire.com if your thinking of making a move and are interesting in an online home evaluation

Source:

Tony Wong: www.Yourhome.ca

Toronto Real Estate

This month in Real Estate: January 2010

If you want the inside scoop for the Canadian Real Estate Market please click here to watch “This Month in Real Estate”.  Its a monthly updated video on whats happening in our great country.  You can also watch it every month on the front page of my personal website which is www.AtHomeWithJason.com