New Mortgage Rules will limit your Toronto House Purchase

New and updated Mortgage Qualification tools may have some buyers pushed out of the Toronto condo and housing market regardless of the interest rates. You could be affected if you are;

a) Self employed

b) Condo Purchasers need to include 100% of Maintenence Fee.

Stated-income products have become very popular during this housing boom, allowing more banks to get involved in loaning to the selfemployed.

"These are individuals that are self-employed, have great credit and won't be able to validate their ability to pay if they are not showing their income on their notice of assessment," said one source.

He says those people with stated income could have to make an even higher down payment than the normal 20% that exempts consumers from buying expensive mortgage default insurance.

http://www.nationalpost.com/Tough+rules+housing+market+gets/6035918/story.html

The suggestion the government might crack down on condo buyers is not new, having been scrapped last year in favour of tougher new rules on amortization lengths and refinancings. Most people in the real estate sector now believe amortizations will be reduced to 25 years after having been as long as 40 just three years ago.

Are you going to active this spring? Lets get you started on your next place sooner than later if these changes come into effect. Call me now for an appointment to pre qualify at 2.99%

This truly may be a limited time offer!

Phantom Mortgages Toronto Condo Law

David Pylyp: Hello, I'm with Shadi Nasseri in downtown Toronto, our condo law specialist. Can I ask about phantom mortgages?

Shadi Nasseri: When you are purchasing a condo in Toronto, one of the first critical dates to keep in mind is the INTERIM Occupancy Date. Essentially also called the Occupancy Date. That is when you get possession of your unit, in the condominium, but since the other units are not yet completed, the condo will not have fully registered yet. The Final Closing Date is still up coming.

David Pylyp: So I pay rent from the date I move in till the date of registration?

Shadi Nasseri: Yes. You are required according to most Purchase and Sale Agreements related to your new condo purchase,

to pay rent or occupancy fees to the Builder, until the time the condo officially registers and switches over to your name.

David Pylyp: What is the average time between move in and closing?

Shadi Nasseri: The average time between move in and closing varies depending on many factors.

One can be the experience of the builder.

Two can be the location of your unit.

It is known that units on the lower floors usually have longer interim closing periods, than ones on the top floors because once the top floor is done

All the units are completed and the condo goes towards REGISTRATION.

David Pylyp: How can people reach you?

Shadi Nasseri: My Toronto Real Estate Lawyer dot com or by telephone at 416 400 6167

Starting 2012 Toronto Real Estate

We are starting a New Year with Resolutions and Optimism! And an price increase of 8.5% averaged over last year.

The first real estate post that I notice is that "the eventual increase in interest rates will lead to a decline in home prices (probably in the magnitude of 10% - 15%)"

http://research.cibcwm.com/economic_public/download/if_2012-0116.pdf

The ink was barely cold on the presses when the pundits were howling about interest rate increases. When the Bank of Canada announced only 3 days earlier.

http://www.cbc.ca/news/business/story/2012/01/13/f-mortgage-rates-record-low.html

TORONTO, January 17, 2012 – Greater Toronto REALTORS® reported 1,506 sales through the TorontoMLS® system during the first two weeks of January 2012. This result represented a six per cent increase compared to the first 14 days of January 2011. New listings were also up on a year-over-year basis, but by a lesser 3.7 per cent.

“The market didn’t miss a beat after the holiday season, with robust sales growth continuing and sellers’ market conditions remaining in place. Strong competition between buyers continued to push the average selling price higher in the Greater Toronto Area relative to a year ago,” said Toronto Real Estate Board (TREB) President.

The average selling price during the first two weeks of 2012 was $444,473 – up by more than 8.5 per cent compared to the same period in 2011.

“Prices were up for most major home categories in the GTA in comparison to last year. The strongest price growth was for single-detached homes in the City of Toronto. The average price of singles in the 416 area code was up by 22 per cent year-over-year, pointing to a greater weighting of higher end detached homes changing hands compared to the same time last year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_mid_month_0112.htm

So here we are the start of a new sales year. Interest rates appear to be stable for the remainder of 2012. Inventory [available homes for sale] continue to be in short supply with the inevitable multiple offers when more than one buyer wants the same house.

Many of the pundits are talking about construction cranes and the inevitable lack of occupants for these newly constructed properties. Now lets add the one variable that no one is discussing;

The vacancy factor for Toronto rentals is very competitive. The Vacancy Rate appears to be around 1%. ONE percent. Rentals in high rise condo average $1,600 to $2,000 for a two bed two bath unit at Humber Bay Shore or Square One Mississauga

All of this may indeed be for only a limited time as demand may cause the rates to increase because of borrowing demand. Call now and let's beat the rush!

What do you think? Add your comments.

Shadi Nasseri Toronto Condo Law Specialist HST Rebates

David Pylyp: I'm with Shadi Nasseri; A Condominium Law Specialist in Down Town Toronto.

Tell me about HST (Harmonized Sales Tax Rebates) Can I get a rebate on the purchase?

Shadi Nasseri: When you purchase a new condo in Ontario you have to pay HST on the purchase price. There are however some exceptions to that rule. You can get a rebate of your HST payments, of a certain portion of your HST, if you qualify based on two factors, one, is if you live in the condo yourself, so there's a rebate that applies that you occupy the unit yourself, from the "occupancy date" and at least for a year, after the final closing date.

The other exception is where you rent it. In that case you do not apply for the rebate right away, so it is not deducted from the purchase price on closing, but it is rebated to you, a year after the closing, whereby you show proof that you rented, leased or rented the unit out, for the entire year and that you still own it.

David Pylyp: So, How can people reach you?

Shadi Nasseri: They can reach me on my website - MyTorontorealestatelawyer.com or by telephone at 416 400 6167

Shadi Nasseri Toronto Condo Law Rescission Period

David Pylyp: With Shadi Nasseri a Toronto condo Law Specialist, When you buy a condominium from a builder developer there is a cooling off period correct?

Shadi Nasseri: Yes, You actually have a limited time to have your condo agreement of Purchase and Sale revied by a lawyer. Its called the Rescission Period, and usually its 10 (ten) days from the day that you signed the Agreement of Purchase and Sale. This also includes Holidays and weekends! Usually, so... Make sure that you get to a lawyer, contact a lawyer, to review the agreement as soon as possible.

David Pylyp: What types of things are you looking for?

Shadi Nasseri: You want to make sure that you are OK with all the terms of the Agreement.

Although a lot of people say the agreements are standard, What may be standard in One agreement of Purchase and Sale, May not be in your best interest, specific to you, So you ALWAYS need to review it and make sure It is OK for you and your specific conditions.

David Pylyp: I've seen agreements recently that don't even contain the square footage of the condo...

Shadi Nasseri: Yes, Unfortunately that is quite common. They don't have the square footage

and often there are provisions in the agreement that state that the builder has the right to change any aspect of the size and shape of the condo, as they wish.

So you need to make sure, either one that your OK with that or that you can speak to a builder to PIN down exactly what you are going to get.

David Pylyp: How are you dealing with Capped Closing Costs?

Shadi Nasseri: I always like to put in some sort of cap IF it is agreeable to the builder, just to manage your expectations, or the purchaser's expectations on closing. So that when It comes time for closing you are not surprised by the fees that you have to pay with respect to adjustments or HST (Harmonized Sales Tax) excetera, and you can save up for that. If we can get a CAP set with the Builder; you know exactly how much money you will need to close.

David Pylyp: And How do people reach you?

Shadi Nasseri: You can reach me on my website on myTorontoRealEstateLawyer.com or by telephone at 416 400 6167

David Pylyp: Pleased to have Shadi Nasseri on our TEAM of trusted professionals. Shadi is a Toronto Condominium Law specialist with offices in the heart of Toronto's City Center at Yonge and King.

Living with MOM

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Thats OK . If you are 35 and still live with your Mom... we need to get you out..

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