From the category archives:

the numbers

New Mortgage Rules

New Mortgage Rules You Need To Know

Hi everyone

By now you’ve probably heard or read in the news that the federal government is making changes to mortgage rules to ensure that Canadians don’t take on more debt.  There is a lot of confusion regarding whether or not buyers will be required to provide a larger down payment or have to meet stricter qualifications.  So what are these changes and how do they affect you?

There are 3 major changes you’ll need to know about:

  1. Qualifying at a 5 year rate
    All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.

  2. Refinancing limited to 90% of the loan-to-value ratio
    Currently, borrowers are able to refinance their mortgage up to 95% of the property value.  This amount has now been reduced to 90%, in order to help homeowners maintain equity in their home.
  3. Minimum 20% down payment required on non-owner-occupied properties
    A 20% down payment will now be required for small (ex. 1 – 4 unit) residential rental properties if the owner does not occupy the property.  If the owner intends to live on the property (ie. a rental property), they will still be able to purchase the property with only 5% down.

These changes will go into effect on April 19, 2010.

For more details, visit my thread on my message board.

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Zero Down Mortgage

Buying a home in Brampton with no money down

If you’re thinking of buying a home in Brampton soon and are worried about coming up with a down payment, there is still a zero down mortgage program available for you to explore. Essentially, what you would be getting is a cash back from the lender that you would apply as your down payment.

This mortgage program is a lifesaver for those who want to take advantage of the low interest rates and brisk real estate market in Brampton, but don’t have enough cash in the bank as a down payment.  The interest rate will not be as low as a regular mortgage with 5% down, but it does get home buyers into a position where they can own their own home at an affordable monthly mortgage payment.

Here are some quick details:

  • A minimum of 650 credit score is required
  • Maximum cash back from this program is $25,000
  • Amortization is 35 years
  • Mortgage is calculated on a 5 year at the posted rate (currently 5.39%)

If you’re currently renting and am considering owning a home, but don’t have the cash for a down payment, this program may be for you.  Don’t let this strong Brampton real estate market pass you by!

For more details, visit my thread on my message board.  If you would like to see if you can qualify for this mortgage program, leave me a comment here or email me!

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New Condo In Brampton - Blade Condos

Hi everyone!

In a previous post, I covered Park Place Condos.  Here’s a quick start guide to the other big condo development that is coming up in Brampton. Blade Condos is currently under construction. Read ahead to find out more details on this condo project!

Where is it located?

The official address of this building will be 45 Railroad St., and it will be located in the heart of Brampton, directly across from the GO Station and will be occupying the former Dominion Skate Factory.  Below is a picture of the site before contruction:

Brampton Condo Site

Who’s the builder?

Preston Group.

How tall will it be?

26 storeys.

What kind of suites will they have available?

  • One bedroom
  • One bedroom + den
  • Two bedroom
  • Two bedroom + den

What are square footages on these units?

The one bedroom units range anywhere between 571 – 831 square feet. The two bedroom units range anywhere between 900 – 1116 square feet.

What amenities will the building feature?

  1. Security
  2. Skating oval that converts into a walking track in the summer
  3. Fitness room
  4. Swimming pool
  5. Whirlpool
  6. Al Fresco Dining Area
  7. Yoga room

Are there prices or floor plans available?

Prices start at $179,900.  Please contact me and I’ll be happy to provide them for you.

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This post has 21 comments

  • joe
    i want to know how much are the maintenance fees and what they cover and if that rate is guaranteed and for how long. also taxes, and parking is it underground is there a security gate and how many parking spots you get and if you get any extra ones and for how much. thanks for taking the time.

  • joe hawkins
    I'm interested in pricing for 1 bedrooms and/or +dens. Requesting pricing list if possible. Thanks.

As promised, here are the final selling prices for homes in the W24 district of Brampton (anywhere East of Highway 410) for 2009.

dyerware


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  • Rhonda
    Hi Lang, I just read your home prices for 2009, very interesting. I will be on the hunt for a detached 4 bedroom approx. 2400 sq ft home in the Springdale area in another year or so, what are the current market value for these homes, possibly with a finished basement, do you think the prices will go up within the next year, is this a good area to invest in the future ?.

I’ve just finished compiling the final selling prices for all homes in the W23 district of Brampton (that’s anywhere West of Highway 410) for 2009. I’ll be working on the numbers for W24 and have them posted shortly.

Hope this chart will provide useful for some of you!

dyerware


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HST Tax

One of the most frequent questions I get from clients is about the upcoming Harmonized Sales Tax (HST) and how it will affect the purchase of a home.  Here is the breakdown of the rules:

When does the HST take effect?

July 1, 2010.

How much tax will I be paying in total?

13% (That’s 5% GST + 8% PST).

I’m buying a resale home, so will I have to pay this HST?

Good news!  The answer is NO!  If you’re buying a resale home, you simply pay the purchase price as usual.

I’m thinking of buying a new home from the builder, so will I have to pay this HST?

Ouch, yes you do!

But wait, I heard there is some sort of rebate program in place if I bought a brand new home?

The Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Is there anything else that I would have to pay HST on?

Unfortunately, they’re hitting you everywhere.  You’ll be paying HST on legal fees, moving costs, home inspection fees, and real estate commissions.

Where can I find out the full details of this tax and how it works?

You can read all the exciting details right here.

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  • lang
    Hi Brent Yes, in this case you would. Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010. The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010. Hope that helps! Lang

  • Brent
    If I purchase a new home before July 2010 but completion date is Summer of 2011, would I still have to pay the HST tax?

mortgage-rates

If you’re still sitting on the fence regarding whether it’s a good time to buy or not, here are the latest rates that I can get for you.  Now is absolutely the time to pick up a pre-approval and lock in.  Remember, your pre-approval rate will be guaranteed for 90 days, so even if the rates go up in April as anticipated, you’ll still be able to use these rates when it comes time to buy a home.

Contact me if you’re interested in getting these rates.

1 year fixed: 3.25%

3 year fixed: 3.75%

4 year fixed: 3.69%

5 year fixed: 3.89%

** UPDATE **

The 5 year rate is now 3.80%

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  • lang
    Hi Tim It's currently at 3.80% for a 5 year fixed. Lang

  • Tim
    please give me a quote for 5 year fixed rate.thanks

0 down payment for mortgage

Lately, I’ve been getting some inquiries regarding the option of buying a house with no down payment.  In reality, there are no more ‘zero down’ mortgage programs available.  However, there is a program that exists that is very similar and that can help you purchase a property with no money as a down payment.

It’s called a free down payment mortgage, and essentially the bank offers to pay your 5% down payment on your behalf when you qualify for a 5 or 7 fixed year mortgage.  What will you need to qualify?

  1. An employment record of at least 1 year at your current job
  2. A credit score of at least 640

The current rate for a 5 year fixed zero down payment mortgage is 5.50%.

If you’d like more information on this program or would like to apply for a pre-approval, you’re welcome to contact me here.

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  • lang
    Hi Niinii Unfortunately, there really isn't much you can do unless you can find someone to co-sign on the deed that has good credit. Lending institutions are looking for either a large down payment, or an employment record with a good credit score. An individual who has no down payment and bad credit history is unlikely to find any lender that will take a chance on a mortgage. Lang

  • lang
    You're most welcome, Meg. Glad the article was helpful. :)

When should I replace parts of my home?

June 17, 2008

Although this article may be useful for people living in older homes, purchasers of newer homes can also benefit from this. A home in not unlike a car – it’s made up of a variety of components that have different life expectancies and that need to be replaced throughout various stages of it’s use. [...]

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Tell me more about the Park Place condos in Brampton!

June 6, 2008

If you’ve been a long time resident of Brampton, you’ll know that the condo selection is relatively small. Aside from the cluster of condo buildings near Bramalea City Centre, and a few other buildings scattered around the city, there haven’t been any new condo developments in the last while.
You’ve probably also seen signs around [...]

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I’m buying a home – what are my closing costs?

June 4, 2008

If you’re a first time home buyer, you may be wondering what sort of costs you’ll be facing down the road when it comes time to close the sale on your home. Because there are so many fees, expenses, and taxes to pay, it may be a little scary and overwhelming. Below is [...]

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How much will it cost me to pave my driveway or build a garage?

April 29, 2008

As always, I’m always on the lookout for building/renovation costs to provide to my readers as a general basis before taking on renovation tasks. It’s tough sometimes knowing where to begin or knowing who to ask regarding large projects and the costs that are associated. Hopefully, my previous articles have been of some [...]

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It’s time for a new roof, but how much will it cost me?

March 13, 2008

With spring around the corner, some of you may be considering replacing that old roof. The real estate market tends to pick up briskly in the spring, and changing an old roof may be needed if you plan on selling your house. One of the key areas of a home inspection is looking [...]

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Am I eligible for a land transfer tax refund?

March 2, 2008

There seems to be a lot of confusion going around these days regarding new land transfer tax changes. In this previous article, I highlighted the new changes to land transfer taxes in the City of Toronto, as well as provided a land transfer tax calculator.
The Land Transfer Tax Refund Program for first-time home [...]

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