1. JANUARY 15, 2010
VOLUME 1 NUMBER 1
WhAt IS A MORtGAGE
101
comPrehensive guide
LAWYERS CORNER
Advice on ProPerty
YORK REGION 101
review of york ICE HOTEL: ICE COLD OR COOL?
JANUARY 2011 101 REAL ESTATE MAGAZINE | 1
3. EDITORIAL
W
e are proud to present our launch of 101 Real Estate Magazine. The reason why I chose 101 is unique. I wanted to educate people from all walks. After speaking to many people over the past few
years, I discovered something special. People like to know a little about everything. To read about things that are specially unique was key from my discovery. Wether it be real estate, mortgages,
law, finance, technology, cars, clothing, travel & food. The other purpose of this magazine is to share with you my network of business professionals who I have built a strategic partnership with over
the years. Over the course of the year I will add professionals from other faucets of business and they will publish up-to-date unique information for you, the reader.
What I want to bring to you in 2011 is a multimedia magazine that will continue to grow. Exciting videos, mind boggling flash, rich graphics, and thrilling content that will leave you with a breathe of fresh air. I
would like to thank the partners in the magazine, and please send me a note anytime if you have any ideas, suggestions, or just want to say nice job!
I would like to wish you all the best for 2011 and please visit my website at www.mahdiraza.com.
Mahdi Raza
Thank You,
phoTo fRoM MAhdI RAzA
4 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 5
4. 101
Real estate Magazine
8 | LAwyerS corner // Saidaltaf Patel
10 | LAteSt condo trendS // mahdi raza
13 | women Love condoS // Sameen jafri
16 | iBm vS JeoPArdy // dan noSowitz
18 | Secret reciPeS // mahdi raza
20 | york reGion 101 // wikiPedia
22 | whAt iS A mortGAGe? // mahdi raza
25 | Pre-APProvAL SAveS time // mahdi raza
26 | why chooSe remAx // remax.ca
28 | ice hoteL // jane mclean
6 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 7
5. LAWYERS
CORNER By SAidALtAf PAteL - BArriSter & SoLicitor
What is title insurance? The pre approval of mortgage means what should not be there in agreement
Title insurance is very important in all your income is enough to qualify you for of purchase and sale. As for example if
types of real estate transactions. Basically it mortgage. The pre approval of mortgage is the agreement of purchase and sale does
is a contract for insuring and indemnifying not a guarantee that you are going to get not speak anything about chattels such as
property owners or lenders against loss mortgage for particular house you intend fridge, stove, washer dryer etc., The seller
or damage from title risks in real estate to purchase. can take the chattels with him upon sale
transactions. The insured may claim for It is not advisable to waive the condition and buyer cannot do anything legally.
actual loss for the face amount of the policy. of mortgage in agreement of purchase and Also a lawyer plays very important
Title insurance protects from defects in sale based on pre approval of mortgage for role in closing of real estate transactions.
title as well as legal services related risks in the above mentioned reason. he does title search and other relevant
real estate transactions and that protection When should I see a lawyer for my searches to ensure that you get the title
is comprehensive no fault protection. real estate transaction? Who are the free of all encumbrances and defects. he
Instead of suing lawyer for negligence, a other people I need for real estate communicates with other side’s lawyer
policy holder may claim compensation transaction? and lender. A lawyer helps you to close the
from the title insurance company. Title transaction with hassles to you.
It is highly recommended that you see
insurance covers for unforeseeable losses a lawyer as soon as you intend to buy or Another important person in your real
unrelated to a lawyer’s negligence such as sell a house or property. The lawyer can estate transaction is a real estate agent. The
forgery, fraud, discrepancies not revealed review the agreement of purchase and sale real estate agent is expert in his field and
by survey etc. thoroughly and advise you properly. As helps you to choose best suitable house for
What does pre approval of soon as you sign the agreement of purchase you. The real estate agent can advise you in
mortgage mean? Should I waive the and sale, it becomes a binding contract which locality you should buy a house. he
condition for mortgage approval in enforceable under law. The agreement of can guide you through the process.
agreement of purchase and sale if I purchase and sale is a complex contract Mortgage broker and home inspector
phoTo fRoM ISToCK
have pre approval of mortgage? and must be reviewed with your lawyer. are also very important in real estate
SP Law Office A professional Corporation - Suite 30- 695 Markham Road - Toronto, ON M1H 2A5 - Tel: 416. 850.3673 - Fax: 416.850.3674 - Email: info@splawoffice.ca - Website: www.splawoffice.ca A lawyer can advise what should be or transaction.
Legal disclaimer: This is general information and contains no legal advice. This does not establish any client lawyer relationship.
for specific legal advice, contact a lawyer.
8 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 9
6. Latest Condo
trends By mAhdi rAZA
Left: Brazilian hardwood
touched with a 25m lap pool
complete with a children pool
and a splash court. Hydrotherapy
W
treatment is integrated into the
bays of spa seats lining the 2
hen it comes to condos, staying on the outfitted with dramatic finish as well and furniture in rich lengths of the pool.
cutting edge of style and decor is key. distressed black stain is another attractive way to add depth
The general perception of what’s hot to your decorating.
and what’s not can change daily, so STREAMLINED STORAGE
choosing trendy yet timeless decorating
styles and furniture pieces is the true challenge for the condo Maximize closet space by building shelves and installing
dweller. Always keep resale value in mind when you paint closet organizers. Make every square foot count–even under
or make upgrades. Chances are, you won’t live in this condo the bed! Buy thin plastic storage boxes which slide easily
forever and when you do sell, you want the place to be into small spaces and use them to store seasonal clothing,
attractive to a wide demographic–rather than simply to those wrapping paper, gift bags and more. Invest in drawer
who share the same tastes you do. organizers and cupboard shelves, too.
Bottom: Granite back drop with
WHAT’S HOT WHAT’S NOT modern and contemporary furniture
CLUTTER-FREE LIVING GARISH PAINT COLOURS to make all the envy of your suite.
The choice to live in a condo generally means one must Lime green may be your favourite colour–and very in to
commit to living clutter-free. Although most condos have a boot–but that doesn’t mean lime is a wise paint colour choice.
storage locker and at least one closet, the space for storage If you love it, don’t shy away completely, but don’t make it
is quite limited compared to that of other types of homes. the main focus of your space, either, as rich colours tend to
That’s why it’s so important to adopt a zen-like approach to dominate. Instead, choose boldly-coloured accessories such
clutter and possessions. If you don’t need it, sell it, give it to as blankets, throws, candles and vases. If you simply must
charity or throw it out. If you don’t know where you’ll put it, paint in a dramatic shade, choose a single wall to adorn with
don’t buy it. Life is much easier without too much stuff, and shocking colour.
condos are much more attractive when they aren’t packed FADING FLOORS
with useless possessions.
Even if you didn’t upgrade your floors, it’s important to
FLOWING DECOR keep them in great condition. Laminate floors should not be
When decorating a condo, choose a theme and stick washed with water, because it can leak through cracks and
with it. Condos and condo townhouses are generally open- cause bubbling. Instead, sweep well and spot clean with a
concept and fairly small, and introducing too many colour damp cloth. If you have hardwood, keep it in mint condition
schemes will overpower the space. When painting, choose a by cleaning and waxing regularly. If you plan to sell, a floor
colour that you can repeat–for example, paint your bedroom sand and refinish may be a good investment.
the same colour as your washroom to give the impression of TOO MUCH BULK
an ensuite and then chose a lighter or darker version of the
shade for the living area and kitchen. You may not plan to live in a condo forever, and thus
would rather invest in furniture that will make the transition
DRAMATIC WOOD FINISHES from condo to house with ease – but big, bulky, house-size phoTo fRoM JULIANINTERIoR.CoM phoTo fRoM JULIANINTERIoR.CoM
It’s tempting to go with deep, dark paint colours when furniture just doesn’t compute in a small condo. Choose your
seeking to add drama to your condo decor, but particularly stuff wisely, and don’t break the bank on condo furniture.
in a small space, this is not a great idea. Instead, stain the There are bargains to be had, especially on small, streamlined
floors a dark oak or cherrywood finish. Cupboards can be stuff.
10 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 11
7. WOMEN
LOVE
CONDOS
By SAmeen JAfri
CONDOREALESTATE
o
ver the past ten years, there has been a huge
.COM
increase on the number of women home buyers.
for many of these women buyers that I speak to, a
new condominium is the perfect choice.
Women are noticing various cool amenities
which are offered by new condo communities are extremely
appealing, with varying combinations of commercially equipped
gyms, aerobics/yoga/pilates areas, beautiful swimming pools and
whirlpools, wireless media lounges, fabulous party rooms for
entertaining, outdoor terraces with phenomenal views.
Modern women of 2011 enjoy the freedom and luxury that
comes with being able to travel the world and just lock the door
on their way out, without worrying about lawn maintenance, snow
removal, heavy repairs, up keep of the exterior and the like. This
carefree lifestyle includes having neighbours close by who can look
after plants and feed pets during vacations.
one of the most appealing aspect of the condominium lifestyle
for women is the security that comes with services including a
24 hour concierge and infrastructure features such as monitored
cameras in underground parking garage, enter phone or in-suite
security systems, and the list keeps growing. The other day I say
phoTo MENdo gARdEN BLog
motion detectors inside the suite!
Last but not least, the condo price that women are about to fall in
love with is also a major factor. The average condo is less expensive
then a typically low-rise home or a semi-detached homes, making it
more affordable on a single salary.
for the above reasons along with a whole list of others, it is great
to see more and more women every day benefitting from the perks
of owning one’s own home. for more information on great condos
that have awesome amenities for women please email me at info@
condorealestate101.com.
12 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 13
8. phoTo BY ISToCK
THE FUTURE OF CONDOMINIUMS
T
By mAhdi rAZA
hat may seem like a bold title for this column, but I believe it’s true for a and even roommates who pool their resources are buying condos to start earning equity
larger percentage of the population than people may realize. Whether you and set themselves up for a bright future. plus, younger people are frantically busy these
are 18, 30, 50 or older, I think there’s a good chance that you will opt for days. A lot of these buyers are not interested in using their time maintaining a low-rise
condo living at some point. You may not agree right now, but consider the home. They love the fact that they can own a smaller suite and are still able to entertain
reasons for my theory. friends in the building’s theatre, party room, billiards room, rooftop garden, etc. of course,
We have had an aging population for quite a while, and empty-nesters who find condominiums are usually close to public transportation and many are in the hub of
themselves ready to leave their large homes for the freedom of condominium living. They downtown Toronto, which may mean a quicker work commute for professionals. Some
appreciate being able to spend their leisure time enjoying life rather than mowing lawns, may even be able to walk to work, which is amazingly convenient.
shovelling snow and cleaning rooms for hours on end. Many baby boomers and seniors Last but not least, let’s not leave families out of the equation. We are seeing more
like to travel several months of the year, and it’s so much easier from a condominium people opting to raise their children in the city. This is a familiar concept for people who
building. You can simply close the door and immigrate here from Europe, Asia
leave with the confidence that your home will
be looked after while you’re gone.
“YOu cAN SImplY clOSe THe dOOr ANd leAve...” and elsewhere. Toronto, and in fact
the entire gTA, has great schools
phoTo BY ThEME.vISTA.CoM
Most condominium suites are single-level designs, which is perfect for seniors. As we and every municipality is dotted with natural areas such as lush parks. Even in the heart of
age, climbing stairs becomes more difficult, so having everything handy on one floor is a Toronto you can walk your dog and take the kids to the park to play.
comfortable luxury. And as mobility issues arise, it is wonderful to have everything under There are a lot of other scenarios. parents are buying condo suites for their grown
one roof. going to the pool for a swim, heading to the fitness centre for an aerobics class, children to live in while attending university, and then selling them for a profit after a few
or meeting friends for a game of bridge in the lounge can be as easy as an elevator ride. years. Some purchasers select a two-bedroom suite and rent out the second bedroom. And
You may be thinking, well, sure -- it’s safe to say that people over 50 will choose to live in of course, there are those who buy a condo strictly as an investment and rent it out from the
a condo, but I’m still in my teens, 20s, 30s or 40s. Why me? beginning. With the population of the gTA growing by leaps and bounds, condominiums
will be in demand for years to come.
first of all, the market has been flooded with first-time home buyers who appreciate the
advantages of owning in the gTA rather than paying out high rents and, for many of them, You never really know where life will take you. I may not be a psychic, but after many
a compact condo suite is an affordable starter home. Single professionals, young couples, years in the industry, I feel confident saying that there is a condo in your future! Neeta Sambrook | Audi Brand Specialist | o. 905.907.2834 | f. 905.907.0904 | nsambrook@pfaffaudi.com
88 Jane Street | Vaughan, Ontario L4K 2M9 | (877) 494 - 9001
14 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 15
9. IBM VS
JEOPARDY By dAn noSowitZ
One of the Internets largest and best-known online cellular repair and consultant sites is designed to help
put together an effective way to repair and restore your communication device fast and efficiently. Staff
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Charging Port repair, LCD and trackballs. Includes; Ipad, Blackberry Torch.
W
Gear 4 Tech focuses on customer service and responding to clients needs in a timely fashion while only
atson, an artificial intelligence program created by IBM (and named after Thomas J. Watson, IBM’s founder, not using OEM parts (Original Equipment Manufacturer).
Sherlock holmes’s roommate), is designed as a question-and-answer bot, able to interpret and respond to questions
posed in normal human language patterns. The natural use for such a program is, of course, the greatest game show Located conveniently In Oakville just off the QEW and Trafalgar in Oakville Place Mall. Our trained and
that ever was or ever will be: Jeopardy!. In february, Watson will be facing off against two of Jeopardy!’s toughest
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Ken Jennings, whose 74-day winning streak was the longest in the show’s history, and Brad Rutter, whose $3.3 million winnings are the quick solution. Gear 4 Tech has been in operation for well over 8 years..
show’s highest.
Creating an AI that can compete on Jeopardy! is an incredibly difficult task for any programmer. The venerable show poses questions not Staff members always willing to go the extra mile and that is to offer pickup and delivery service available
only as simple shows of trivia knowledge, but also puns, various forms of wordplay, trick questions, riddles, and other complex queries. It only in the GTA. Convenient for larger corporations and for people who are not able to make it out in a
takes uniquely flexible and quick thinking to succeed at Jeopardy!, placing Watson on a pedestal with chess-playing robot (and IBM sibling)
deep Blue. busy schedule. Please let us know how we can assist. Corporate rates available as well as recycling system
set up for old handset and equipment.
vIdEo BY YoUTUBE.CoM/USER/IBM
on february 14th, Watson will go head-to-head-to-head on a very special episode of Jeopardy!, playing against trivia legends Ken
Jennings and Brad Rutter. (In case you were wondering, Watson’s spot at the challenger podium will be taken by an avatar--no word on
what strained anecdote Trebek will coax out of him and then casually mock.) Watson has been prepping for the battle by sparring with other
Tournament of Champions competitors, though neither IBM nor Jeopardy! has released the trivia-bot’s record against human competitors.
You can see in the video above that some wordings can trip him up, so nobody knows exactly how capable a competitor he’ll be. OAKVILLE PLACE MALL
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The winner will receive $1 million--if Watson wins, IBM will donate the money to charity, and both of the human competitors have We are in the centre of Oakville Place Mall Right in front of Customer Service
pledged to donate half the prize if either wins.
16 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 17
10. SECRET reaL FrIed cHIcKen
barg nz ca
O≠ers You Can’t Refuse
Now is the time to take advantage of
LOW INTEREST RATES
RECIPES Starting at 2.40
%
CUT YOUR MONTHLY PAYMENTS by up to 75% O.A.C. Some conditions apply. Rates subject to change without notice.
By mAhdi rAZA
Cook Time:14 min LeveL: easy yieLd: 4 servings
IngredIents
•3 eggs •1/3 cup water •About 1 cup hot red pepper sauce
•2 cups self-rising flour •1 teaspoon pepper
•House seasoning, recipe follows
•1 (1 to 2 1/2-pound) chicken, cut into pieces
•Oil, for frying, preferably peanut oil
dIrectIons
In a medium size bowl, beat the eggs with the water. Add enough
hot sauce so the egg mixture is bright orange. In another bowl,
combine the flour and pepper. Season the chicken with the house
seasoning. Dip the seasoned chicken in the egg, and then coat well $20,000.00 $600.00 $68.74 $531.26
in the flour mixture.
(Terms and Conditions Apply) $30,000.00 $900.00 $103.11 $796.89
Heat the oil to 350 degrees F in a deep pot. Do not fill the pot more
than 1/2 full with oil. $40,000.00 $1200.00 $137.47 $1062.53
You work hard for your home. NOW, let your home work for you! $50,000.00 $1500.00 $171.84 $1328.16
Fry the chicken in the oil until brown and crisp. Dark meat takes
phoTo BY ISToCK
longer then white meat. It should take dark meat about 13 to 14 min-
utes, white meat around 8 to 10 minutes.
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House seasonIng:
•1 cup salt •1/4 cup black pepper •1/4 cup garlic powder E-mail: roger.kalwaney@canadalend.com Agent License #M08009114 Brokerage License #11384
Mix ingredients together and store in an airtight container for up to
6 months.
18 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 19
...See inside for more great rates.
11. campuses located in York Region, in King, Markham and
GEOGRAPHY Newmarket. York University is located just outside of York
York Region covers 1,776 square kilometres from Lake Region’s southern border, in Toronto.
YORK REGION
Simcoe in the north to the city of Toronto in the south. Its In addition, there are many other religious and private
eastern border is shared with durham Region, to the west schools located in the Region. These include: Academy for
is peel Region, and Simcoe County is to the northwest. A gifted Children (Richmond hill), The Country day School
map of the region showing its major roads and communities (King City), holy Trinity School (Richmond hill), Leo
is available. Towns and cities in York Region include: Town Baeck day School (Thornhill), Netivot haTorah day School
of Aurora, Town of East gwillimbury, Town of georgina, (Thornhill), pickering College (Newmarket), St. Andrew’s
Township of King, Town of Markham, Town of Newmarket, College (Aurora), St. Thomas of villanova College (King
101
Town of Richmond hill, City of vaughan, Town of City), Town Centre Montessori private School (Markham)
Whitchurch-Stouffville and Blyth Education (Thornhill)
York Region’s landscape includes farmlands, wetlands and
kettle lakes, the oak Ridges Moraine and over 2,070 hectares (vaughan), and vaughan Mills (vaughan) NEWS MEDIA
of regional forest, in addition to the built-up areas of its
municipalities. TRANSPORTATION York Region Media group, first Local/Rogers Tv York
Region, CKvR - A (based in Barrie), CfU758 - 90.7 RAv fM
The road network in York Region is remarkably ‘grid- (Thornhill) and CKdX 88.5fM - foxy 88-5 (Newmarket)
GOVERNMENT like’, meaning most roads run north-south or east-west. and Yorks finest oulets.
The region is governed by a group known as York Regional The topography of the land has permitted roads to be set
in predominantly straight lines. York Region assigned York’s news media is also served by the outlets based in
By wikiPediA Council, which consists of 20 elected representatives Toronto.
from each of the constituent towns and cities in the approximately 50 roads as York Regional Routes, meaning
that the cost of maintaining of these roads is paid for by York
region, including each of the nine mayors and 11 regional
Region. ATTRACTIONS
T
councillors, who are elected from specific municipalities as
follows: 1 from each of georgina and Newmarket, 2 from The major highways in the Region are: highway 7 (East- York Region has an unusual assortment of points of
Richmond hill, 3 from vaughan, 4 from Markham. west), highway 9 (East-west), highway 11 (north-south), interest, ranging from nature reserves to pioneer-era
he Regional Municipality of York, also called York Region, is a The leader of Council is referred to as “Regional Chair and highway 27 (north-south), highway 48 (North-South), museums, to a modern amusement park.
CEo”. highway 400 (North-South), highway 404 In vaughan, the major
regional municipality in Southern Ontario, Canada, between In october 2008, the York Regional Municipality was
(North-South), highway 407 (East-west)
and highway 427 (North-South)
attractions include the McMichael
Canadian Art Collection, located
Lake Simcoe and Toronto. It replaced the former York County named one of greater Toronto’s Top Employers by Mediacorp
Canada Inc., which was announced by the Toronto Star York Region is served by: York Region in the community of Kleinburg and
Transit (YRT), which also runs viva (bus features works by Canadian artists
newspaper.
in 1971, and is part of the Greater Toronto Area and the inner rapid transit) including Inuit and first Nations
artists. Canada’s Wonderland,
ECONOMY go Transit, which offers bus and train
ring of the Golden Horseshoe. The regional seat is in Newmarket. The economy of York Region is a mix. In general, the
services in the greater Toronto Area which features roller coasters and
other rides, concerts and fireworks
economies in its southern communities include a full range Toronto Transit Commission, which shows, is also in vaughan.
The 2006 census population was 892,712, of which 50,815 residents of businesses from industrial to high-tech. further north, has several bus routes which cross York’s
beginning in the northern sections of vaughan and Markham, southern border, and which offer limited DEMOGRAPHICS
inhabited rural areas in the municipality, and 841,897 resided in urban extensive wetlands and farmland still remain, although new services in vaughan, Richmond hill and
Markham. The Regional Municipality of
housing developments continually consume space year after
York is one of the fastest growing census divisions in Canada;
areas. Its growth rate of 22.4% from 2001 to 2006 was the third highest year. There are ongoing conflicts between conservationists
and developers over land use. Most contentious is the conflict EDUCATION from 2001 to 2006, its population increased by 22.4%. The
2009 mid-year population estimate by Statistics Canada was
amongst all census divisions in Canada, and the Government of Ontario use of the oak Ridges Moraine.
phoToS BY ISToCK
public schools, with classes up to grade 12, are 1,016,379 residents. It is the third-largest census division
administered by the York Region district School Board, in ontario, next to that of Toronto and peel Region,[9]
expects its population to surpass 1.5 million residents by 2031. SHOPPING which operates 180 schools. In addition, the York Catholic and seventh-largest in Canada.[10] Its population density
Major shopping centres located in York Region district School Board operates 95 schools with a curriculum of 506.7 residents per square kilometre is 11th highest in
include: Markville Shopping Centre (Markham), pacific based in Roman Catholic doctrine. Canada.
Mall (Markham), The promenade Shopping Centre Seneca College of Applied Arts and Technology has three
20 | 101 REAL ESTATE MAGAZINE JANUARY 2011 JANUARY 2011 101 REAL ESTATE MAGAZINE | 21
12. A
allowing your financial institution to gather information from your employer, creditors and
mortgage is made up of two parts: principal and interest. principal is the credit rating agencies.
actual amount borrowed. Interest is the lender’s fee you are charged for If you’ve had credit problems, it may be a good idea to check and clean them up before you
borrowing. You’ll have to decide on an amortization period (the length of apply for a mortgage. You can check your own credit rating by contacting a company that
time it will take to completely pay off the mortgage) and the term, or length of compiles the information. The two companies that take sure of credit are: Trans Union and
time each mortgage agreement guarantees the interest rate. Before you go to a Equifax. They both have websites or you can check for their contact numbers in the yellow
financial institution or mortgage broker, keep in mind that there are many mortgage options pages. Although your credit may not be perfect, it does not mean you are unable to purchase
available. Shop around for the best rates and the best terms. Negotiate. Everyone wants your a home. Make sure you talk to a mortgage broker about your situation before you give up on
business, but it’s up to you to look after your interests. of course, the key thing to remember your dream. Even if you can’t buy now, your mortgage broker can help you re-establish your
is to negotiate a mortgage that fits into your lifestyle, and doesn’t take over your life! Your credit so that one day you will be able to live your dream of owning a home.
mortgage broker can help guide you through this process and supply you with information. TyPES OF MORTGAGES:
OBTAINING A PRE-APPROVED MORTGAGE CONVENTIONAL AND HIGH RATIO MORTGAGES -
what is a
Why go house hunting only to find that you don’t qualify for a mortgage on the dream To qualify for a conventional mortgage, you simply have to have a 25% down payment of
home you’ve found? having a pre-approved mortgage will give you the confidence of the purchase price, with the mortgage not exceeding 75% of the appraised value. If your down
knowing exactly what you can spend on a home before you start looking. You will also be payment is less than 25%, then you qualify for a high-ratio mortgage. This type of mortgage
protected against interest-rate increases while you look for your new home because your requires loan insurance, which can cost an additional 0.5% to 3.75% of the mortgage amount.
lending institution will “lock your rate” for a certain amount of time (usually 90 days) in case With this type of mortgage you could also be limited to a maximum house price. You’ll be
the rates go up. A bonus is that if rates go down, you’ll automatically get the lower rate. paying those extra fees to the insurer – either Canada Mortgage and housing Corporation
PRE-APPROVED MORTGAGE FEATURES TO LOOK FOR: (CMhC) and gE Capital Mortgage Insurance Canada (gEMI).
mortgage
1) Competitive interest rates. You may be willing to pay a little more to get the flexible Second Mortgage - of course, you may need to consider a second mortgage to be able to
features you desire. get the funding to obtain the house you desire. Each mortgage uses your home as security
2) A 90-day rate guarantee. This will protect you against rising interest rates while allowing and gives the mortgagee the right to take your home if you default on your loan. The first
you to take advantage of falling rates. While this is usually the standard, ask to make sure just mortgagee gets paid first in cases of default and has the best chance of recovering all of its
in case. money. So it only goes to figure that a second mortgage will have a higher interest rate.
3) flexible payment options. discuss payment frequency and lump-sum payment options. ASSUMING AN ExISTING MORTGAGE
find out if your lending institution will allow you to skip a payment in special circumstances Say the seller of the home you want has a dynamite mortgage – meaning the rate is low.
or double-up on your payments. Some mortgages are very flexible and some are not, make By assuming the existing mortgage, you may be able to save on the usual mortgage fees
sure you get the best one for you. such as appraisal and legal fees. You’ll save time, since you don’t have to negotiate to arrange
Applying - When applying for a mortgage, provide prospective lenders with enough financing from another lender and the existing mortgage on the home may be less than the
A FIVE MINUTE COMPREHENSIVE CRASH COURSE information about your work history, debts and assets. They’re looking at the state of your
personal finances. They will look at your gross income and potential mortgage payments
current market rates. Unless otherwise specified, you’ll still have to qualify with the lender
first!
and property tax expenses to come up with a gross debt Service ratio (gdS). This is usually Seller Take Back - With an STB, the Seller also becomes a lender, holding all or some of the
By mAhdi rAZA limited to 30-35% of your gross income. To that lenders will add all other debts to come up mortgage. Sometimes the seller will offer this loan at lower than bank rates.
with a Total debt Service ratio (TdS), which can’t exceed more than 40 percent of your gross MORTGAGE FEATURES:
earnings.
prepayment - This is a wonderful option if you receive regular bonuses or if your income
WHAT LENDERS LOOK FOR fluctuates throughout the year. With a pre-payment privilege, you have the right to make
Lenders are looking at the risk factors from two points. first, will you be able to make your payments toward the principal portion of your mortgage over and above the monthly
scheduled monthly payments? Second, if you default (don’t make your payments) can the payments. A mortgage with a pre-payment option is closed. An open mortgage means you
financial institution get enough money from the sale of the house to repay the loan? can pay the entire principal sum without notice of bonus.
APPROVAL PROCESS portability - If you still have time remaining on that fantastic loan you negotiated,
You’ll be asked about your net worth, the difference between the value of everything you portability is one option you’ll want to discuss with your lender. Quite simply, it means
own and the amount you owe. Lenders take into account your bank balance, any types of transferring the balance of your current mortgage at the existing rates and with the existing
investments, other real estate, cars and boats, other loans, credit card balances and many terms and conditions, to your new home.
other things. Remember to be as specific as possible. So if you have a coin, significant stamp Expandability - If you need additional funds down the road, will your mortgage terms
or art collection, have it appraised! Your credit rating is your history of loan repayment and allow you to increase the principal amount? Usually, your new rate will be a blended amount
will be used by lenders as an indicator of your ability to repay your mortgage. It covers how of the initial mortgage rate and the prevailing rates. It’s a great option to discuss with your
you’ve managed past debts or if you’ve filed for bankruptcy. You’ll be asked to sign a form lender if you foresee large expenses in your future like renovation or education
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