Thursday, January 27, 2011

How to avoid owning Two Homes

When your sale closes after your purchase
  • to get the best price for your home often you have to compromise and choose dates that may not match
  • this means you need to leverage the equity in your home, for the required time between the purchase and sale to fund your down payment into your new home

Example of Bridge Financing

Sold $ 270,000 Purchase $ 450,000
less deposit w/offer $ 15,000
Real estate commission New Mortgage $ 335,000
13% HST Real estate commission
Mortgage balance legal fees on sale and purchase

Equity $ 100,000 Funds to close $ 100,000

SALE closes May 31 PURCHASE closes April 28
BRIDGE FINANCE of $100,000 for 33 days for $750 estimated fee

How can a secured credit line save me money?

  • in our previous example some lenders will allow you to register up to 80% of the purchase price.. Let’s say $360,000
  • known as a “Collateral Mortgage”, this additional $25,000 could be used as a secured credit line towards your down payment
  • Reduces Bridge loan to $75,000 & cost down to approximately $540
  • Saving you $210
  • Credit line paid to ZERO from the proceeds of the sale in 33 days
  • The credit line is available when needed always at a preferred rate
  • This allows greater flexibility and reduces interest costs for you

What if you sell before you buy?

  • There are still some situations where this happens. Owner is motivated and grabs your offer!
  • This means you will have to pay out your mortgage and any penalty, as there will be a shortfall .. until your move in date.
  • Most lenders will reimburse the penalty, if you have a move in date within 90 days of your sale & come back with the same terms; conditions to the mortgage
What if you want to keep your property and rent it ... instead?
  • If you have considerable equity, you may want to rent out your property as an investment
  • Your home can be re-financed to where the rent will carry the mortgage payment, condominium fees and property taxes.
  • You could then buy, your new home with less down payment.
  • You can always sell your investment at a later date to maximize your sale price.
  • Having a plan for your mortgage is key
We give you a Firm Approval

We are able to approve the bridge financing as well as your mortgage at the same time.

This combined approval is unique in Toronto
Peace of Mind & no surprises for you

Things can change quickly between the time you buy, until you move in to your new home.

  • … Job change, need credit for new appliances
  • … Many lenders pull a second credit bureau, verify your employment or even leave the appraisal till a week before closing date

Ready to get Started?

Contact Lindsay Doke RBC Financial Trusted Mortgage Advisor 416 464 6423

Sunday, January 23, 2011

Do you rent or Do you Buy?

Will you rent or will you buy?

Interest rates on savings at your Bank? 1 - 1.5% annually

Average rental on a two bedroom with den Two full bath? $1,800

With the interest rates hovering around 3.89 - 4.09 % five year fixed; yes we would all like to have the variable at 2.35% .

Expected rate of annual value increase? I would use 4%

Try it and tell me. How did your model work?

Lets get you started.

Saturday, January 22, 2011

We are all afraid of...

Yes the neighbour from Hell!

Who lives next door; How do they keep their place? How will we get along? This is a fun although sad vignette that I found in MacLeans

The builder tells a different story: “[The client] spent more than he intended; he asked for things that weren’t part of the contract, and he manufactured deficiencies.” The matter went to court, resulting in suits and countersuits; issues remain before the courts, which is why none of the parties agreed to be named. A few months into the fight, witnesses report, the businessman turned into a neighbourhood building-code vigilante, calling in inspectors to check other houses the builder had constructed in the area, even reporting hedges that were mere inches higher than code allowed. “He would get up at 6 a.m. every morning to move his car three houses to block access to a building site,” the builder claims. The businessman counters that the builder blocked his car and spewed obscenities one morning when he was driving his children to school.

When the businessman saw the builder’s name associated with the annual fair for the local school, which his children attended, he threatened to pull his own sponsorship. “He told the principal, ‘I’ll bury you in policy,’ ” says a neighbour. The businessman says he reviewed the school bylaws and noticed the school was in flagrant violation of many of them. One casualty was a lottery for the daycare centre, which was shut down for lack of a proper licence. “They lost 40 per cent of their funding,” says his neighbour. He even tried to ban cotton candy at the fair because it didn’t comply with the school’s healthy-eating policy. “The nitpicking was unbelievable,” says one resident. “He could have cured cancer with the time he put into creating problems in the community.” The businessman’s vigilance “created total paranoia,” says a neighbour, so much so residents were afraid he’d report their annual Canada Day fireworks display, which didn’t have a licence.

You really need to read the rest of the story to find the dedication and effort this neighbour placed in Getting the other Guy!

Do you have a neighbour from hell story?

Tell me about it....

Friday, January 21, 2011

Park Lake Residence and Floor Plans

Just Registered and Ready for you!

1900 1910 Lake Shore Blvd., W, at Ellis Ave
Phase One West Tower 1910 Lake Shore
18 floors 133 suites
Phase Two East Tower 1900 Lake Shore
19 floors 146 suites
Twin Towers with a individual recreation centers, share a fifth floor terrace that overlooks the magnificence of High Park and all the seasonal colours, and an unbridled views of Lake Ontario and Lake Shore Blvd., between, including entry foyer. Located as the last building site possible along Lake Shore Blvd., at Ellis Avenue with an unobstructed view for the East Tower, east view buyers, with a panoramic view of High Park, downtown Toronto and the lake views. Easy access to transit and Lakeshore Blvd.
Building Features/ Amenities
Large angled balcony for a gorgeous view of the lake!
Beautifully landscaped podium with b.b.q. area
Fully equipped exercise room with separate aerobics/yoga area
An elegantly appointed party room plus a billiards and cards lounge
24-hr Concierge for your convenience and security
Keyless entry into building and suite, for added security
Wood flooring for living/dining area & den, 40 oz. carpet for bedroom
Upgraded GE stainless steel appliances
Granite kitchen countertop
Granite, porcelain tile or pre-finished wood flooring for kitchen & foyer
Marble or Granite bathroom counter top
Google Mapping Have a look at whats really around you!
Newport beach, Homesinwesttoronto.comIf you would like more information on this building or to find out what is currently available for sale please Contact David Pylyp As units come available for sold or sold data is compiled; you will need to register to receive this information. Please fill in the information below to receive the most recent sales data.
Are you an Owner?
If you own a unit in this building and you would like to sell your condo, click here and get a free condo value analysis.

Sunday, January 16, 2011

Finally, Selling your Home

Flexibility and Creativity, along with a detailed marketing plan, careful preparation and strategic planning are needed to yield you optimal results as a home seller.

A long event horizon is an advantage in the home selling process. You have taken your time deciding and Now you are ready. A well structured sale for the highest dollar can take months to create. This sale may take months if not years of advance preparation prior to putting the sales process into motion. It has taken a lifetime to buy your home, raise a family, pay off your mortgage and send them through school. You helped them buy their first house. Now it's your time again.

Control your market timing. The long term planning window will permit you to select the best time to sell without being forced into the process by long term illness, critical health issues or other pressing financial issues. The Home Selling process has a cyclical nature in that, some months are superior to others and you may want to time your purchase and sale to when market and economic conditions are most favourable to you. The spring market provides the most families looking to schedule their move to coincide with the school calender.

Buyers will be looking for superior homes in established neighbourhoods and although they may compete to purchase they still expect the due diligence phase of a purchase being their searches appraisals and inspections. Better homes are now at or near inner city with access to TTC transit hubs or major transit commuting centers. By working with a local experienced neighbourhood specialists you will gain additional advantages.

Although Sellers may have an idea of Neighbourhood Values. they do need experienced expert help to ascertain Fair Market Value. In the course of this evaluation. each upgrade and improvement that has been made over the years may or may not be reflected in the Fair Market Value. What was spend on the landscaping or basement may not return dollar for dollar where an extra bathroom will. We can provide a Market Evaluation, or an Opinion of Value.

When buyers and sellers are ready, all questions answered, your team of advisers can help you negotiate a well structured Agreement of Purchase and Sale.

When we get started, you will need to articulate and communicate your intentions to me, of what you want to achieve with this sale. It is important to think through how your lifestyle will change at the new property; How your sense of community will be altered.

This psychological component of your transition should be discussed with your family, as you yourself may be unprepared for the emotional impact of your gradual extraction from a property where you have lived for decades. Often a sense of self worth and purpose is tied directly to the home.

Often as the Seller your entire self worth may be in this one singular asset. We understand that this house may very well be your entire net worth. Sellers may need to include estate and financial planners to ensure that future pension income serves the required needs. I and my team would be pleased to help counsel you through this transition.

When you are ready, I would love to sell your home. Call me at 647.218.2414 or email

Tuesday, January 11, 2011

The Junction Community Bulletin


The fight for electric trains has become even more urgent. Several important dates are coming up, and our community needs to act NOW to ensure we keep the 400+ dirty diesel daily trains out of our neighbourhood.

Below are some of the dates for action:

CTC Meeting with Mayor Ford's staff - MONDAY, JAN 17

Electrification Study report available by/before FRIDAY, JAN 21

Metrolinx Board Meeting on the Electrification Study - WEDNESDAY, JAN 26 @ Central YMCA, 20 Grosvesnor St., 9:00am

Clean Train Coalition demonstration - WEDNESDAY, JANUARY 26, Central YMCA, 20 Grosvesnor St., 8:30am

Possible Clean Train Coalition demonstration - WEDNESDAY, JAN 26, Ontario Liberal Party Campaign Headquarters 10 St. Mary Street, 11:30am OR 1:00pm

Metrolinx scheduled date for completion of Sumitomo Contract negotiation - SUNDAY, FEBRUARY 6

Metrolinx Board Meeting - FRIDAY, FEBRUARY 18


We urge you to attend any of the above events to show your support for Electrification Now. Additionally, it is imperative that you contact Premier Dalton McGuinty to tell him that you DO NOT want dirty diesel trains in our neighbourhoods, affecting our environment and our health.

Go to the Clean Train Coalition's website to find out everything you can do to stop the Dirty Diesel, from signing the online petition to writing to your MPP and Premier. You can find out more about what to do here.

Monday, January 10, 2011

Men and Women are different

Kim Kargus was recently divorced and looking for a home to buy for herself and her daughter. The 36-year-old child protection worker loved the look of a three-bedroom house in Cobourg, but was a bit nervous about putting in an offer.

She had always rented and was concerned about taking on the debt, a mortgage and the day-to-day responsibilities, from plumbing to electrical, of home ownership.

“When you are renting and something goes wrong, you can call your landlord to come and fix it. But when you buy a house, it all falls on you,” she says. After doing some research, she knew she was ready to take the plunge.

“I had heard lots of other people’s stories, both good and bad. And so I was kind of anxiously waiting and hoping everything was going to go well,” she says.

Kargus’ situation is a good example of how men and women differ in attitudes towards buying a house. Studies by Genworth Financial Canada found more women than men want an easy to understand mortgage structure, and low monthly payments.

Women are also more anxious about their financial future, find shopping fora home more stressful then men, but like men find the notion of home ownership comforting.

A recent Bank of Montreal study made similar findings, noting that women are more likely to report feeling overwhelmed by the home buying process. This trend – and the fact that more women are buying their own homes – has led to a rise in services catering to women.

Banks are focusing on female buyers in their marketing materials and mortgage brokers, such as Marcy Berg, have sprung up. Berg runs the Cobourg-based Mortgages for Women, which courts female clients.

Berg’s clients include separated and divorced women as well as the never-married, single crowd. The latter group is on the rise. A 2007 Royal LePage survey found that 30 per cent of women who have never been married already own their own home. And of those who didn’t, 31 per cent said they planned to purchase a home within three years.

Kargus met Berg three years ago and was preapproved by a mortgage company for a mortgage but the interest rate was fairly high – partly because rates were generally higher at the time but also because Kargus had some debt.

Berg encouraged Kargus to postpone her purchase and pay off her debt to improve her credit rating. She also suggested Kargus wait at a year to buy to give housing prices and rates a chance to drop. “It was one of the best pieces of advice that I ever got,” Kargus says.

Two years later, when she returned to Berg, houses were more affordable. Thanks to paying off her debt and interests rates dropping, Kargus received a lower rate.

Looking back, Kargus says, it was worth the wait. “I don’t regret it all. I absolutely love my house.”

Some single women are purchasing a home with a friend or friends, says Laura Parsons, Bank of Montreal’s manager of specialized sales.

“We just put three waitresses into a mortgage last year,” said Parsons. “They work together. They were all paying rent at $1,200 a month. Why would they not go together? It’s an investment.”

Regardless of whether women who are buying real estate are single, separated, divorced, or coupled up, the home-buying process should begin the same way, Parsons and Berg say.

Sit down with a mortgage specialist or mortgage broker to find out what you can afford. Don’t get rushed through the process over the phone. “There is so much disappointment in that,” Parsons says.

With a mortgage, don’t just focus on the monthly payments. Pay attention to the amortization schedule, which shows, over the entire term of your loan, how much of each payment goes towards interest and how much goes towards principal. (The allocation will change over time.)

“You have to look at how much money this is going to cost you over the life of the mortgage,” Berg says. “People look at the monthly payment and say, ‘I can afford this.’ Well, you can afford the payment, but is it the smartest payment to make?”

After meeting with a mortgage specialist or mortgage broker, don’t be discouraged if the conclusion is that now isn’t the best time for you to buy. Get help setting up a plan that will lead you towards home ownership, Parsons and Berg say.

Naomi Carniol is a Toronto freelance writer.

David Pylyp; When you are ready, lets work out your financing details, and without any pressure or drama, find a place for you, your place to start building your own equity. Call or email.

Monday, January 3, 2011

Welcome 2011 Toronto Real Estate

Lets recap the Toronto Real Estate Market events for 2010 and forecast for 2011.

Although We saw a “softening” of the number of sales in 2010, but not the “bubble bursting” that was predicted by so many. we finished with 86k sales just slightly below the 87k in 2009. Listings right now are at 10k homes for sale. This is very low for a city of 4 million plus in the Toronto GTA.

So, what will happen in 2011? Inventory numbers (number of houses for sale) will remain relatively low and prices in the GTA will continue to rise at a slower pace than we’ve had over the last few years. Simply put, the last few years have been strong so we’ll go back to “normal” price increases. [that are the rate of inflation plus savings deposit returns, so lets say 3 - 4%] Many neighbourhoods of the GTA will remain firmly in a “Sellers Market”.

Digital Advertising, QR codes and Video marketing will separate Agents with Content and Internet Marketing and their property presentations from "Old School" agents that will need to work harder and do more effective marketing.

Many things are influencing our market.

1. Our inventory levels are very low and should remain low. Except for late night TV foreclosures and power of sales do not really exist as far as “distressed properties” coming on the market. Buyers won’t be able to sit back to pick and choose. We won’t have a huge influx of new listings
2. Mortgage interest rates are very low and should remain low for quite some time. Although we may see marginal increases over the next while, home ownership will remain very affordable.

Have included a comparision calculator for you to try as Buy vs Renting Calculator I found that when you compare a 2 bed 2 bath rental at $1800 per month vs the cost of ownership at $1250 Owning makes sense.

3. Our economy is very strong, Unemployment is low at less than 8% in Toronto and may be improving. Toronto continues to be a leader and will be right in front leading Canada. Buyers and Sellers are already asking if Rob Ford [our newly elected Mayor] will repeal the Toronto Land Transfer Tax. This may create additional hesitation.

Would you like to live here? Call me or email. Lets get you started!

Buyer Representation Agreement Toronto West Homes

The Toronto Real Estate Board has created a number of topic video that are professionally crafted to inform and educate the Home Buying public in the GTA.

This video explains the concepts of Buyers agency and How the Buyers Registry works for Selling Agents to find what you are looking for!

Do you need a Buyers Agent - Using a Realtor ®

We're talking Canada (or at least Ontario) every offer has to be accompanied by a completed Confirmation of Co-operation and Representation form (OREA form #220). This has to be signed by both agents, as well as the Seller and Buyer, and places on record who's looking after who and how the Buyer's Agent will get paid (usually by a share of commission as stipulated in the MLS listing), prior to the presentation of any offers.

As a Buyer Agent, you do need to realize that my primary responsibility is to take care of my (buyer) client's best interests.

This means two essential things.

On the one hand, I shouldn't focus on selling the property for as close to the asking price as I can. Rather I should make sure that the offer price properly reflects the market value, particularly by setting it against an appropriate Comparative Market Analysis.

On the other hand, I should help my buyer client to determine that the property represents the best value for their money. This means that we need to demonstrate that each one of the comparables isn't going to be a better buy.

If you will, my job is to get the Buyer "the most house for the money" as opposed to enabling the Seller to get "the most money for the house." The difference is a critical one and I have a legal duty and obligation to apply it in your dealings with my buyer clients.

There is a difference when choosing a realtor with experience. If you are looking for a property in Toronto west, Etobicoke to Mississauga ....

Let's get together for a coffee and see what we can do for you. or call 647 218 2414