New Mortgage Rules for The Self Employed

As people have increasingly entered the world of self-employment, lenders have made great strides in their flexibility in giving mortgages to those with non-traditional sources of income.  Well it seems that the time has come for them to tighten up their requirements once again.

Effective April 9th, CMHC (the people who insure mortgages for buyers with less than 20% down) will now require a 10% down payment from those who are self employed, have been in business less than 3 years and who cannot prove income via traditional means. They’ve also reduced the amount available for refinancing to 85% of the appraised value.

GTA Sales up 234%

From the Toronto Star…

Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.

 The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.

 “The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.

 However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.

February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.

New Listing + Open House Notice – Manhattan Meets New England in Leslieville

 

Designer-owned century home overlooking Jimmy Simpson Park in trendy Leslieville/South Riverdale. One-of-a-kind property featured in House and Home Magazine melds country aesthetic with modern edge. Artistic touches at every turn—light-filled gourmet open-concept kitchen with granite counters, tumbled marble backsplash, gas range and SS appliances; breakfast area with walk-out to deck and private garden; massive floating fireplace in living room; reading room overlooking park; marble and granite bathroom with huge glass-door walk-in rain shower. Custom wainscoting and mouldings, vaulted ceilings—straight out of a magazine!

 Steps from Queen East’s restaurants and shops.

Open Houses this weekend: March 13 & 14, 12-4 pm. Or call Melanie at 416-568-0427 for a private showing!

Toronto February Sales up 77%!

OK, so the February stats are kind of misleading, given last February it seemed like the sky was falling…but nonetheless, the Feb 2010 numbers do continue to show a healthy Toronto real estate market.

Prices were up 19%, to an average of $431,509.

The best news for buyers was that the number of homes listed on MLS was up 24% – which means more selection, and hopefully a better equalibrium between supply and demand.

Tax Break for Condo Owners

Did you know that as a condo owner, you are entitled to claim a portion of improvements made to your building between jan 27 2009 and Feb 1 2010?

Because you pay a monthly fee to a condo corporation, renovations completed to the common elements (for example, a new lobby or new windows)  should count towards the HRTC. The condo corporation is simply paying for these goods on your behalf.

So when filing your taxes this year, you’ll be able to claim the credit for renovations to your own unit, as well as your share of upgrades to common areas. This credit can be worth up to $1,350 per family, so it’s worth investigating.

Canada Revenue Agency guidelines for condo owners indicate that improvements made to common areas will qualify if:

– You own your unit.

- The expenses fall within the regular rules of the program – things like new furniture don’t count

– Your condo corporation has notified you of your share of the expenses.

How to make a claim:

In order to claim your portion of building renovations you need documentation from your condo corporation. According to Canada Revenue Agency, the documentation “must clearly identify the type and quantity of goods purchased or services provided” and also include the following:

– The cost of the renovations

– Your portion of the expenses

– Contact information for the vendor or contractor (including GST/HST number, if applicable)

– A description of the work in question

– The date or dates the work was completed.

Your Condo Board should be able to provide you with all the information you need.

We all could use a little extra cash in our pockets – make sure you don’t leave yours behind!

Get What You Want!

We’re excited to announce the launch of our newly designed website, www.getwhatyouwant.ca .  It’s full of important information for buyers and sellers, and of course, includes our featured listings. Check it out!

Clean This Mess! New Promo for Sellers!

Did you know that most buyers make a decision about whether or not they are interested in your house or condo within the first 10 seconds of entering it? You only have one chance to make that first impression, and having a squeaky clean home can make all the difference. 

To celebrate the imminent arrival of spring, we are offering a promotion to Sellers – list your home with us, and we’ll send over our cleaning team to prep it for you! You’ll get all the benefits of a show-ready, dust-bunny-free home without having to lift a finger!

Our partners at CleanThisMess are premium cleaners-professionally trained and bonded, they even use environmentally friendly cleaning products!

PROMO SMALL PRINT

Our small print isn’t that small, actually. Sign an agreement to list your home with us by May 31, 2010, and we’ll pay for up to $500 of cleaning. That’s a lot of cleaning!

New Mortgage Rules Announced

Well I guess we knew all it was coming….the federal government has announced changes to mortgage insurance rules in an attempt to cool the super-hot Canadian housing market. Essentially, they’ve announced the following:

1. All borrowers must now qualify for a five-year fixed rate mortgage, even if you choose a shorter mortgage with a lower interest rate. Some banks have already been qualifying borrowers this way, but it will mean that some people will be able to afford less house. It also means that borrowers should still be able to afford their mortgages if interest rates go up (which they likely will).

2. If you’re looking to buy an investment property in which you do not live, you’ll need a 20% downpayment. To be honest, this is generally how much you’ve always needed to put down in order for the math to work for rental units…but now it’s the rule.

3. If you’re looking to re-finance your mortgage and free up some cash, you’ll only be able to withdraw up to 90% of the appraised value of your home (as opposed to the previous 95%).

So what does it all mean? You’ll still be able to borrow with as little as 5% down if you live in the home. The 35-year amortization is still a possibility. And while the tougher qualification rules may affect some, it will hopefully prevent us from entering in a U.S-style housing bubble.

All in all, we think these changes will help stabilize the housing market – and that’s a good thing. The changes come into effect on April 19, 2010.