Banks start raising mortgage rates
TORONTO (CP) — Several of Canada’s big banks are raising most of their fixed-term mortgage rates ahead of the busy spring real estate market.
TD Canada Trust TD said the biggest increases will be for mortgages with terms of five to 10 years, which will go up by 0.35 percentage points starting today.
The move was matched by CIBC.
The Royal Bank raised its rates on mortgages for five and 10-year terms by 0.35 percentage points and its seven-year rate by 0.15 percentage points.
The posted rate for five-year closed mortgages — one of the most popular types — will rise to 5.69 per cent.
Source: TheChronicleHerald.ca
What should you watch out for when looking to buy real estate in the U.S.?
Interested in buying some property in Florida?
It's not such a far-fetched idea right now for many Canadians, with housing prices in the United States at depressed levels and the Canadian dollar holding steady above the U.S. greenback.
About one in five Canadians are interested in buying some property in the U.S., according to survey results released by the Bank of Montreal on Friday.
The bank said that housing prices in the U.S., overall, have declined about 30 per cent over the last four years. Some of the hot spots Canadians are likely to have visited in recent months have seen even bigger declines.
In Florida itself, prices in Miami are down 49 per cent and 44 per cent in Tampa, BMO said. Housing prices are down 54 per cent in Phoenix and 57 per cent in Las Vegas, it added.
However, one of BMO's experts said such ideal conditions for Canadians to buy property in the U.S. is unlikely to last.
"Now, with the American economy and employment gaining strength, home sales should pick up and put a floor under soft prices," said BMO chief economist Sal Guatieri, adding that the U.S. dollar is also expected to gain strength. "We expect prices to rise over time as the overhang of unsold homes eases."
Among men, 29 per cent said they would consider buying a home in the U.S. right now compared to 16 per cent of women.
The results were based on an online poll of 1,511 Canadians taken by Leger Marketing in the last week of January. BMO said such a sample size would normally produce results representative of the population within 2.5 percentage points, 19 times out of 20.
Renovation: Best Return on Investment
The Greater Toronto Area’s spring real estate market is just a few week away.
If you’re planning on making a foray into the market this year, now could be the time to undertake improvements, which if carefully planned, can increase the value of your home considerably.
Most of us know that kitchens, bathrooms and a fresh coat of paint inside and out offer the best return on investment. According to the Appraisal Institute of Canada, you can expect to get back 75 to 100 per cent of what you put into kitchens and bathrooms. Painting can return 50 to 100 per cent of your investment.
While these are typically low-risk investments, a number of factors can influence the gains you achieve with other types of renovations. Location is one such consideration. The completion of a basement recreation room, for example, can generally return 50 to 75 per cent of expenses, depending on the preferences of future buyers in your area. In a predominantly seniors community, its value could be considerably limited.
It’s also important to consider your home’s most crucial needs. Window and door replacement may offer a return of 50 to 75 per cent, but if your existing units are broken, this home improvement should take priority on your project list. Where glaring needs are concerned, the value associated with your home’s overall impression outweighs specific project returns.
When deciding whether to proceed with functional renovations though, it’s also important to consider that significant government rebates are available for many energy efficiency improvements.
There are some improvements that we undertake simply for our own enjoyment, like a swimming pool, from which you can get back up to 40 per cent of your investment, or landscaping, which is likely to offer a 25 to 50 per cent return. Despite the limited gains they may offer individually, these types of improvements can also make an important contribution to your property’s overall image.
Consider as well that not all of your renovations need to be sizable. Even minor improvements like new light fixtures, cabinet hardware or faucets can give your home a contemporary look.
Source: TorontoRealEstateBoard.com
How to keep your condo in its best shape
When it comes to condos, staying on the cutting edge of style and decor is key. The general perception of what’s hot and what’s not can change daily, so choosing trendy yet timeless decorating styles and furniture pieces is the true challenge for the condo dweller. Always keep resale value in mind when you paint or make upgrades. Chances are, you won’t live in this condo forever and when you do sell, you want the place to be attractive to a wide demographic–rather than simply to those who share the same tastes you do.
The choice to live in a condo generally means one must commit to living clutter-free. Although most condos have a storage locker and at least one closet, the space for storage is quite limited compared to that of other types of homes. That’s why it’s so important to adopt a Zen-like approach to clutter and possessions. If you don’t need it, sell it, give it to charity or throw it out. If you don’t know where you’ll put it, don’t buy it. Life is much easier without too much stuff, and condos are much more attractive when they aren’t packed with useless possessions.
Flowing Decor
When decorating a condo, choose a theme and stick with it. Condos and condo townhouses are generally open-concept and fairly small, and introducing too many colour schemes will overpower the space. When painting, choose a colour that you can repeat–for example, paint your bedroom the same colour as your washroom to give the impression of an ensuite and then chose a lighter or darker version of the shade for the living area and kitchen.
Dramatic Wood Finishes
It’s tempting to go with deep, dark paint colours when seeking to add drama to your condo decor, but particularly in a small space, this is not a great idea. Instead, stain the floors a dark oak or cherrywood finish. Cupboards can be outfitted with dramatic finish as well and furniture in rich distressed black stain is another attractive way to add depth to your decorating.
Streamlined Storage
Maximize closet space by building shelves and installing closet organizers. Make every square foot count–even under the bed! Buy thin plastic storage boxes which slide easily into small spaces and use them to store seasonal clothing, wrapping paper, gift bags and more. Invest in drawer organizers and cupboard shelves, too.
What’s Not:
Garish Paint Colours
Lime green may be your favourite colour–and very in to boot–but that doesn’t mean lime is a wise paint colour choice. If you love it, don’t shy away completely, but don’t make it the main focus of your space, either, as rich colours tend to dominate. Instead, choose boldly-coloured accessories such as blankets, throws, candles and vases. If you simply must paint in a dramatic shade, choose a single wall to adorn with shocking colour.
Fading Floors
Even if you didn’t upgrade your floors, it’s important to keep them in great condition. Laminate floors should not be washed with water, because it can leak through cracks and cause bubbling. Instead, sweep well and spot clean with a damp cloth. If you have hardwood, keep it in mint condition by cleaning and waxing regularly. If you plan to sell, a floor sand and refinish may be a good investment.
Too Much Bulk
You may not plan to live in a condo forever, and thus would rather invest in furniture that will make the transition from condo to house with ease – but big, bulky, house-size furniture just doesn’t compute in a small condo. Choose your stuff wisely, and don’t break the bank on condo furniture. There are bargains to be had, especially on small, streamlined stuff.
Source: Marissa Ponikowski /HGTV.ca
Major Canadian Banks are Reducing Rates for Fixed Rate Mortgages
TORONTO - Three more Canadian lenders say they will lower some of their fixed rate mortgages as nervous investors move to bonds, causing a drop in long-term interest rates.
TD Bank (TSX:TD), National Bank (TSX:NA) and Desjardins Group said Wednesday that their fixed five-year closed rates will drop 0.1 of a point to 5.34 per cent, effective Thursday.
The move follows similar announcements from Royal Bank of Canada (TSX:RY) and Bank of Montreal (TSX:BMO) on Tuesday.
Four-year rates will fall 0.15 percentage points to 4.99 per cent across the board.
Seven-year rates will move 0.2 percentage points lower to 6.14 at TD and to 6.4 per cent at Desjardins and the others, but will be unchanged at National, whose 10-year closed rate will fall 25 basis points to 6.4 per cent.
Fixed mortgage rates, which are closely tied to bond markets, tend to fall when traders shift investment activity from riskier equity assets toward bonds, which are considered safer.
Investors have been jittery over fears that a potential nuclear disaster in Japan could severely derail the global economic recovery.
In February, many of Canada's big banks moved to raise their fixed mortgage rates as investors grew more confident about investing in equity markets and the global economy appeared stronger.
(Source: The Canadian Press - March 16, 2011)
How global turmoil will affect real estate in Canada
"Our country is uniquely positioned to provide the world with the three 'Fs' - food, fuel and fertilizer - and our supply chain is safe. The inflation in these commodities will drive prices upwards and boost jobs into key areas of the country, which in turn will lead to migration of people to those regions, driving real estate and rental demand upwards. Price increases will follow," he says. (Source: CTV News)
Home Renovation: Heating System
A heating system converts fuel into heat which then flows through a house. The efficiency of a heating system depends on the amount of fuel consumed to meet heating needs. Using less fuel means your system has increased its energy efficiency.
Check your heating system first.
One way to maximize output using the least amount of fuel is to reduce air leakage. Before deciding to replace or upgrade your present heating system you will have to consider how much of your present system can be saved. Are the heating ducts or water distribution pipes in good condition? Oil and gas fired furnaces require a constant supply of air to operate, because fire needs oxygen to burn. An air-starved furnace can cause carbon monoxide to build-up in quantities that can be dangerous.
Additional ventilation can sometimes be required in houses with heating systems that require little or no indoor air, electrically heated homes, homes with chimney-free condensing furnaces, or houses with a fuel burning furnace enclosed in a room with air for combustion from the outside.
Improve heating efficiency
If you decide to change your system, you'll have to consider what type of fuel you want to use. Cost and availability of fuel is usually the deciding factor. If you're keeping your present system, here are a few ways you can improve its operation.
- Hot air ducts are notorious wasters of heat and money. If your basement feels too warm, too much heat is probably seeping out of your ducts. You can seal all joints and seams in the ducting with vinyl duct tape. With forced air-systems, the furnace filters should be changed regularly.
- With hot water systems, the exposed accessible heating pipes should be insulated with flexible foil- faced fiberglass at least 19mm thick. If there is an aquastat on the boiler, (a water temperature control) the water temperature can be reduced to about 49 Celsius of 120 Fahrenheit during warmer parts of the heating season. (If your boiler is made of stainless steel, or if your main boiler also heats your domestic hot water, you shouldn't reduce the water).
- "Downsizing" your oil furnace can reduce fuel bills by seven to 10 per cent. Retention head burners mix the air and oil spray very quickly which permits the combustion of oil with less air. Less air entering the burner means that less heat escapes out the chimney.
If you think you might be having problems with household air supply, contact a registered heating contractor for advice. (Source: OREA)
