5 key things to consider when buying a resale home
The decision to buy a house is one of the biggest decisions you will ever make.
The more information a home buyer has in advance, the more informed the purchase decision will be.
The decision to buy a house is one of the biggest decisions you will ever make. Here are five key things to keep in mind:
1. What is the seller telling you about the house?
Sellers used to provide disclosure statements, telling buyers about the condition of the home and disclosing problems. These days, lawyers advise against this, because of the potential for lawsuits. Some sellers are doing home inspections before they list the property for sale and giving a copy of the report to any buyer.
This helps sellers because they can correct problems noted by the inspector and so they do not have to negotiate with the buyer later. Some sellers are also providing history reports, which can be obtained from homeverified.com or Iverify.com which indicate whether the home has been the subject of an insurance claim for water, fire, flood or sewage backup, and if the home was ever listed as a grow house or meth lab.
The more information a buyer has in advance, the more informed the purchase decision. Still, even with this information, you should do your own home inspection before committing to any purchase.
2. Ask hard questions
Ask the sellers or their agent if they have had basement flooding problems, mould or roof leaks, even if the leaks have been repaired. Also ask whether there was a suicide or murder in the home, or if there’s a halfway house down the street. Watch how they answer. Sellers are required to respond truthfully to direct questions. If the seller refuses to answer or acts suspiciously, then you need to discuss this with your home inspector and your real estate agent and either adjust your purchase offer or walk away.
3. Talk to the neighbours
During your inspection, or before you put in an offer, walk around and ask people about the house you are interested in and the neighbourhood. Sellers may still try to hide things they think will lower their property value. Ask neighbours if they noticed any major repairs at the home over the past year. Also ask whether there are neighbourhood issues, such as the “neighbour from hell”. You may also want to know if there are many basement apartments on the street and whether this complies with local bylaws. Search the property address online to see if anything negative comes up.
4. Put everything in writing
Make sure everything you expect on closing is included in your offer. This includes mirrors, closet organizers, window coverings and TV brackets. Ask for two complete sets of keys. Make sure the seller understands they cannot replace any item before closing. Also add that the property must be left in a clean and broom swept condition, so that you do not have to pay to remove the seller’s junk. Consider paying two deposits, the first upon acceptance of the offer and the second once you waive your home inspection condition. Some sellers have been refusing to release a buyer’s deposit when a buyer has cancelled a deal as a result of a home inspection report.
5. Make sure you can afford it
Talk to a mortgage broker or your bank so that you know how much you can safely borrow. Make sure your lender will complete their appraisal of the property before you waive any financing condition. Be careful about getting caught up in a bidding war, because if your lender thinks you paid too much, they will not lend you what you may be expecting.
By following these tips, you should be better protected the next time you buy a home.
By: Mark Weisleder Real Estate, Published on Fri Oct 25 2013
Posted by Ronald Ephard on February 14, 2014
Holiday season is well behind and all we have left with us is found memories and those dreaded credit card bills. Most of us have been in the situation where our spending, especially during the holiday season, exceeded our ability to repay. There are also unexpected things in life, whether joyful or not so that we did not forecast or account for. At the end of this, we are stuck with a huge credit card bill. If you consider making only the minimum payments, without spending a penny more, it will take you up to 20 years to repay. Ouch! Banks and credit card companies know that and for these financial institutions credit cards provide an excellent investment and exceptional ROI. The unfortunate thing is that you, as a consumer, is stuck paying anywhere between 18-21% per year in interest. Here is another item, that most people would overlook that potentially can cost you much more at the end: Your Credit Score. Your credit cards are maxed out (80% and above the limit), your credit score goes down. Miss a payment, your credit score goes down. If you hold your credit balances long enough you will find yourself in the situation where obtaining or even renewing your mortgage will become a challenge.
One of the most common suggestions is debt consolidation. For people that do not own a property a consolidation loan from a bank with much more favourable interest rates is a great solution.
In this article, we will concentrate on property refinancing. There are several items to consider. Cost is being a prime issue. What does it cost to refinance. Almost always: legal fees $1,200-$1,500 as new charge must be registered. In some instances property evaluation fees: $200-$300 on average. There are also bank discharge fees ($250). The main cost issue to consider - early withdrawal penalty if your existing mortgage is being replaced with another mortgage. A good mortgage broker will analyse your options and will come-up with a solution that will be favorable in your situation.
For example: You currently owe a property with enough equity for refinancing. You existing mortgage is better than prime variable mortgage and your monthly payments are 1,500. Your credit card bills are totalling 20,000 with 18% interest rate per year.
Your cost of borrowing will be:
Legal Fees $1500
Appraisal Fee $300
Discharge $250
Bank Penalty $4000 (3 month interest)
Interest on 20K Mortgage =480/year (calculate at 2.4% APR)
Total: $7030
Credit card cost /year = $3,600
Conclusion: If you are unable to re-pay your credit card debt in 2 years or less, mortgage refinancing is the way to go.
In most instances, refinancing also makes sense to provide you with an extra cash-flow. This is achieved by amortising your debt over 25 year time period.
For more information, please call (778)881-0276 to discuss.
Negotiating your mortgage can seem like a maze of unknowns. Your mortgage will likely be with you a long time and for most people it’s the largest investment they will ever make. It’s worth taking the time to make sure you get the best deal possible.
As a special to 
RRSPs or TFSAs? The age old question comes up most often early in the year, at RRSP season. Which is right for you? The answer is sure to differ in each case. This article from the Globe and Mail offers case studies to assist those who are unsure to make this important financial decision, and also offers the following basics of both savings vehicles:
Taxes:
The spring market is just around the corner, and many Canadians have already started hunting for their dream home, and calling a Mortgage Broker for a pre-approval. While a great 