Canadian Real Estate

You’ve heard the saying more times than you can remember; a home is the largest investment one is likely to make. While true, there is sometimes a negative connotation attached to this and really, there doesn’t need to be.

Financing Your Home
Via www.hgtv.ca

A home can be one of the most positive and rewarding investments and assets you will own and when managed properly, it can also be quite financially rewarding. One of the most important aspects is of course the financing end of things; the mortgage. So naturally, starting off on the right foot with your mortgage would be a wise decision. We are going to list 5 of the most common and sometimes costly mistakes home owners make when financing their home (in no particular order):

  1. Not knowing all your closing costs up front.

    In some cases, clients will budget only for their down payment and mortgage payment, then come closing they are short money for fees such as legal, appraisal, etc and end up in a sticky situation. Make sure to discuss and budget for all these upfront. If you are working with a broker, ask them upfront, although a good one will usually tell you anyways.

  2. Know your interest rate and costs to break your existing mortgage if re-financing.

    In other words, make sue the ends justifies the means. Just because you are lowering your interest rate, doesn’t mean you are always coming out on the saving end. If you are saving $4,000 in interest by lowering your rate but your penalty is $6,000, was it worth it? The answer is no. Make sure to get all the info and make an educated decision. For help on calculating these costs, check out our article on this HERE.

  3. Consider all your options, don’t just go for the sexiest rate.

    Should you be going with a Variable Rate, a fixed rate, open term, 3 or 5 year term? These are all dependent on your individual needs and goals. You may be selling your home in 2 years and may want to consider a Variable Rate to pay a lesser penalty at the time. Speak to your broker and get a mortgage that suits your needs, don’t just fall for the “teaser rate” advertising.

  4. Know all the lenders terms, privileges and options.

    Again, don’t just fall into the rate trap. Some lenders may be offering a lower rate but don’t allow you to break the mortgage without astronomical penalties or don’t allow pre-payment privileges. Get the scoop first.

  5. Use a Mortgage Broker

    Yes, a shameless self-plug. But only because we truly believe in this statement. Anything the bank could or would be offering you, a Mortgage Broker can almost always match or beat it. And if we can’t, we will always be honest with you and advise you to do what is best for you. There are a multitude of advantages in using a mortgage broker. Maybe that will be our next post.

Know of other reasons people should be aware of? Comment and share!

Have an idea for an article or something you would like to see posted? Post it in the comments below or on Facebook and we will do our best to produce it for you. Or sign up for our email reports to stay up to date with market news and special rate promotions.

Have any questions, need any advice? Visit us at www.thefinancialforum.ca. Email us at mortgages@thefinancialforum.ca. Call us at (877) 335-4486.

Best Home Loans & Financing - The Financial Forum

 

VERICO The Financial Forum Ltd.

“Your Connection To A Better Mortgage”

Together, We Make Mortgages Easy!

Purchasing a property for investment can be a great idea. This has historically been an excellent venue for building personal net worth. There are certain “pockets” (locations) that seem to have an abundant supply of renters for residential and commercial properties.

Purchasing A Flat

It definitely pays to do your homework on the property market before you dive in, and we are there to assist you when it comes to financing your decision.

Building your wealth with property can be a solid long-term option, especially if you arrange your finances to your greatest advantage. The better you manage your assets and your home loan, the better the returns you can expect.

So, what type of investment properties are there:

  • Rental Property (most common)
  • Condo units
  • Renovation project or “The quick flip”
  • Rebuilds
  • Second homes
  • Pre-construction homes from builders
  • Commercial Units or Multiplexes

How do you determine which one is best for you? Typically, someone who is going to invest will already have an idea of what they are looking to do. But if you are in the position where you have some extra capital that you want to put to work, then you need to ask yourself a few questions:

  • What type of risk are you willing to take on?
  • Is this a long term or short term investment?
  • Can you handle the extra payments every month or just the initial investment and need rental income?
  • Is this something you would like to do full time or just a small long term investment?

Take our “What type of Investor are you” Quiz HERE

Once you have that narrowed down, you can begin to weigh out your options in a little more detail and decide which direction to go in. A rental property in the right area can offer you a fairly consistent long term investment. A renovation on the right house in the right area can offer a quick return if you have the capital to manage it properly. A commercial unit is more for people who do this for a living, but can be done otherwise, and pre-construction can sometimes offer a modest return without ever having to move into or rent the home. These are all things you need to consider.

Overall, however, real estate has traditionally been and remains a pretty sound investment that can offer you great returns if done properly. Like any investment, make sure you do your homework and talk to the right professionals to get the most value and more importantly to protect yourself.

If you would like to look at what type of investment you can afford or the financing particulars on one, give us a call or flip us an email and we would be happy to discuss with you obligation free.

Have an idea for an article or something you would like to see posted? Post it in the comments below or on Facebook and we will do our best to produce it for you. Or sign up for our email reports to stay up to date with market news and special rate promotions.

Have any questions, need any advice? Visit us at www.thefinancialforum.ca. Email us at mortgages@thefinancialforum.ca. Call us at (877) 335-4486.

Best Home Loans & Financing - The Financial Forum

 

VERICO The Financial Forum Ltd.

“Your Connection To A Better Mortgage”

Together, We Make Mortgages Easy!

Well, we’re back with part two of our Top 10 Wealthiest Neighbourhoods in Canada list and we are happy to present the top 5 on the list. Enjoy and be sure to leave your comments below.

    1. Kerrisdale, Vancouver, British ColumbiaAverage Household Net Worth: $12.85M

      Average House Price: $2.765M

      The residents of Kerrisdale have increased their Net Worth by 21% from just a year ago. And although 5th on this list, they have BC’s highest average annual household income at $1,153,529.

Kerrisdale, Vancouver, British Columbia
Via www.kerrisdalenotary.ca

    1. Shaughnessy Heights, Vancouver, British ColumbiaAverage Household Net Worth: $13.81M

      Average House Price: $3.07M

      They hold the bragging rights of being Vancouver’s richest neighbourhood, which is quite the title considering Vancouver is one of most expensive places to live in all Canada. Their average annual income is “only” $700,431, almost 500k less than Kerrisdale. So they must be doing something right with their money.

    2. The Bridle Path, Toronto, OntarioAverage Household Net Worth: $19.73M

      Average House Price: $3.42M

      A perpetual top 3 and number 1 last year, The Bridle Path is highly regarded as one of the most beautiful neighbourhoods in all of Canada and certainly Toronto.

The Bridle Path, Toronto, Ontario
Via www.BlogTo.com

  1. York Mills-Windfields, Toronto, OntarioAverage Household Net Worth: $20.65

    Average House Price: $2.26M

    Although the average price of Real Estate is a little cheaper here than in The Bridle Path, their Net Worth is slightly higher in York Mills.

  2. Sunnybrook, Toronto, OntarioAverage Household Net Worth: $22.709M

    Average House Price: $2.225M

    And we have a winner people, stealing top dog from The Bridle Path after increasing their average Net Worth by 9% from a year ago. If you are ever in the Bayview and Lawrence area, take a drive and enjoy the view.

 Sunnybrook, Toronto, Ontario
Via www.estatesofsunnybrook.ca

Have an idea for an article or something you would like to see posted? Post it in the comments below or on Facebook and we will do our best to produce it for you. Or sign up for our email reports to stay up to date with market news and special rate promotions.

Have any questions, need any advice? Visit us at www.thefinancialforum.ca. Email us at mortgages@thefinancialforum.ca. Call us at (877) 335-4486.

Best Home Loans & Financing - The Financial Forum

VERICO The Financial Forum Ltd.

“Your Connection To A Better Mortgage”

Together, We Make Mortgages Easy!

 

When the USA suffered its Real Estate crash that it is still recovering from, the Canadian Real Estate Market managed to not only stabilize but continue to grow. Average home prices in most Canadian cities continue to appreciate year after year, but which cities are the most expensive to live in? We break it down below:

  1. Vancouver, BC – Average Price $866,772
    Expensive, but most would argue that the price is well worth it. Vancouver is not only the most expensive in Canada on average, but in all of North America. With no shortage of breathtaking scenery and things to do, Vancouver is actually one of the best places to live in North America. It boasts one of the lower carbon footprints in all Canadian and American cities and with vast amounts of mountains and forests, the air there is fantastic. Home to major sports teams and Olympic grade facilities, world class ski resorts, bike paths, beaches and more – Vancouver is as beautiful as it is pricey.

  2. Toronto, ON – Average Price $609,236
    This gives you an even clearer picture of just how expensive Vancouver actually is! Toronto is Canada’s largest and most prosperous city and it is nearly $300,000 less on average to own a home here. Just like Vancouver, Toronto is a fantastic city to live it minus the traffic. The skyline is gorgeous with the CN tower as the exclamation point. The dining here is world renowned and offers some of the best variety and quality in all of North America. The theater is just as diverse and respected and the night life is also among the best on the continent. If all the city has to offer isn’t enough for you, drive about 1.5 – 2 hours north and you’re now in beautiful Ontario cottage country. Toronto may just be the best bang for your buck city in Canada.

  3. Canadian Real Estate Markets

  4. Victoria, BC – Average Price $519,379
    Victoria is the capital of beautiful British Columbia and for good reason too. Victoria is home to some of the best weather in all of Canada. Although not a tropical climate like down south, Victoria has early springs, gorgeous summers and very mild winters. Everything just seems nicer here, including the very reputable and prestigious school; UVIC.

    4. Calgary, AB – Average Price $459,958
    Although the 4st most expensive city to live in, Alberta does not currently have a provincial sales tax and therefore, offsets a lot of the cost of living here. Additionally, Calgary is a nationwide leader in energy, with petroleum helping to drive their economy. With a gorgeous city center and some of Canada’s nicest national parks, living in Calgary and the surrounding area seems to be well worth the cost of real estate.

  5. Canadian Real Estate Markets1

  6. Hamilton/Burlington, ON – Average Price $434,730
    Known mostly for its beautiful parks, golf courses and manufacturing plants, this diverse area is also home to some beautiful real estate. The Hamilton and Burlington area is within a 30-45 minute drive of Toronto, Niagara and the Canada/USA border, making it a very geographically desirable location.

    Wonder what the mortgage payments in these areas would look like or the income needed to support the payment? Enter the price into our mortgage calculator to find out.

Do you live in any of these cities? Have you had trouble affording a house recently? Are the prices worth it? Let us know your thoughts.

Have an idea for an article or something you would like to see posted? Post it in the comments below or on Facebook and we will do our best to produce it for you.

Have any questions, need any advice? Visit us at www.thefinancialforum.ca. Email us at mortgages@thefinancialforum.ca. Call us at (877) 335-4486.

VERICO The Financial Forum Ltd.

“Your Connection To A Better Mortgage”

Together, We Make Mortgages Easy!