Toronto Condo and Real Estate Blog

Lowering the costs of home ownership

From Homes Magazine

We invest a lot of time and energy in our families, our jobs and our homes - whether we rent or own. For 60 years, Canada Mortgage and Housing Corporation (CMHC) has worked to improve access to home ownership - for all Canadians, from coast to coast to coast. One example of this is CMHC Mortgage Loan Insurance which enables homebuyers to access mortgage financing with as little as 5% down, at a rate of interest typically reserved for borrowers with a 25% down payment or more.

In February, CMHC and First Line Mortgages announced a pilot program under which CMHC will insure mortgages for up to 30 years. Until now, 25 years has been the maximum amortization period permitted for CMHC-insured mortgages. The purpose of extended amortizations is to make it easier for Canadians to become homeowners. This 30-year amortization period complements the host of products and options CMHC already offers to Canadians who want to own their own home.

* Own your own home sooner. By using a wider range of sources for your down payment, if you have a proven track record of meeting your debt requirements and sufficient income to support mortgage loan payments, your lender may be able to provide you with CMHC’s Flex Down product. Sources for your down payment can include: borrowed funds, gifts and lender cash back incentives.

* Energy efficiency pays. Save 10% on your Mortgage Loan Insurance premium - if a CMHC-insured mortgage is used to buy an energy-efficient home, or to renovate a new or existing home with the intention of making it more energy efficient, you may also have the option of extending the amortization period for an additional 10 years.

* Found your dream home? Want to renovate it? With CMHC’s Purchase Plus Improvements, you can work with your lender to finance the cost of renovating by increasing your mortgage, up to 95% of the “as improved” value.

* CMHC’s Refinance product can open the door to a full range of financing options. Your lender may now be able to help you refinance your home for up to 90% of the market value to a maximum of $200,000 of additional funds. These funds can be used for any purpose other than
default management.

* Self-employed borrowers, through CMHC, have easier access to mortgage loan insurance than ever before, with no additional fees or premiums. This is because CMHC has improved its employment verification requirements for self-employed borrowers.

* When it comes to the purchase or refinancing of a second home, CMHC Mortgage Loan Insurance can also help you. This home can be located anywhere in Canada, provided it is not an investment property, and must be suitable for and available for year-round occupancy.

* Another relatively recent option in the mortgage field is an insured homeowner line of credit. With a secured line of credit, you can draw funds up to your insured credit limit at any time and without the need to reapply.

* With an insured homeowner line of credit, you can also make interest-only payments for a period of time, plus you have the flexibility to prepay without penalties. CMHC offers mortgage loan
insurance to help homebuyers obtain homeowner lines of credit. If you’re interested in exploring this option further, contact your lender to confirm availability and qualifying criteria.

Check with your lender for the qualifying criteria and availability of these innovative products within their product offerings.

For over 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency, and a source of objective, reliable housing expertise.

———————————————————————————

Contact the Jeffrey Team for more information

The largest numbers of second homes are in areas with large populations. The most popular locations for second homes are near bodies of water and mountains and second home buyers prefer rural settings to those more urban, but in most cases, second homes are within less than a day’s drive from the primary residence.

Second homes are everywhere, but determining the best location for your second home isn’t easy. In response to the growing demand for vacation homes, resorts and the like here is a list of 10 tips to help shoppers find their second dream home.

1. Define your lifestyle interests. It’s well known that people who buy second homes are primarily looking at areas that have to do with their recreational interests.

2. Determine the ideal travel distance. Ideal traveling time is a matter of personal preference and tolerance, but it’s best to limit yourself to a few hours traveling time. If it’s too far or too expensive to reach within a few hours, you likely won’t use your second home enough to justify its cost. Before you buy, rent in the area for a season. See how often you actually manage to get to your vacation home.

3. Research locations. You may like downhill skiing, but can you really afford a home in a ski town and what happens around town when the slopes close? Okay, you’ve defined your lifestyle but what about affordability, climate, population and all those other issues?

4. Select the desired location - within the destination you have to pick the community. Do you want a new planned development? Do you want a patio home or town home for less maintenance? Do you want it inland or a beach community? Do you also want a golf community near the beach?

5. Make inquiries with locals. How many second home owners are there? Are they true home owners or renters? Too many renters and they might not be keeping the place up. You need community details often available only from the residents.

6. Contact a real estate agent. A real estate agent is your eyes and ears in distance places. You can do a lot of things without a real estate agent, but there is a point when that picture you saw and that virtual tour isn’t enough. A real estate agent can highlight areas of interest. One of the things to remember is that a resort real estate agent is very different from a regular real estate agent in a resort area. You have to rely upon someone who knows the area, rather than someone who merely sells homes.

7. Visit destinations. Most people will visit a destination two or three times before they purchase. You start finding out about the resources, what the travel time is really like if you drive or fly. The other thing is most people buy a second home have in the back of their minds that the property will be their primary residence at some time. Are you really sure this is where you will want to live?

8. Review financing options. Some places deal with high-end purchases that are almost always without loans. Can you use your equity line to buy a second home? Financing for a second home is different, and there are also different insurance criteria. The good news is you still get that mortgage write off (up to certain limits, depending upon how the property is used and its value). Involve your tax professional in the financing part of the deal.

9. Purchase through a resort specialist. People selling in a resort area know more about a particular area and typically take it very serious that business comes from the outside. Outsiders’ questions are quite different from those inside the area.

10. Enjoy the process. This isn’t your primary residence and everything doesn’t have to be perfect. Have a little fun with it.

———————————————————————————

Contact the Jeffrey Team for more information

From New Homes & Condos Magazine

Bliss Condominiums broke the mould this month with an astounding 70% of the suites in the building selling since the launch. This latest offering is the second tower by CanAlfa to be launched in the popular Liberty Village neighbourhood just west of Strachan Avenue, south of King Street West. The company is also responsible for 476 townhomes that are completely sold and occupied.

Of those people visiting the presentation centre, many decided to make the commitment to be part of this dynamic, evolving neighbourhood. It’s not just that Bliss Condominiums is affordable, though prices start at $221,000 for a 644-sq.-ft. unit, or that it has the benefits of a smaller unit mix. It’s not even just the deluxe standard finishes like granite counters and stainless appliances. No, what’s drawing people from all over the GTA to Liberty’s doors is a community that nurtures and celebrates what’s valuable in life.

The tag line – Live in Liberty – says it all. When homeowners live close enough to work to eliminate long commute times, they have the time to enjoy life’s essentials – to live, work and play.

Built on 45 acres of historic industrial lands laid fallow when manufacturing gave way to the information and technology revolution – and unhampered by pre-existing residential neighbourhood plans – CanAlfa was free to envision a community suited to today’s needs.

Its proximity to a booming downtown that’s fast taking its place on the world stage has also helped fuel the area’s rebirth – around the corner a evolving crop of restaurants and cafés, like Susur, Lee, Maro, and a thriving graphic arts, design and film industry. A little farther you’ll find the trendy clothing stores and furniture shops of Queen West, the theatres and Thomson Hall, all part of King West. Twelve minutes by transit and you’re at work in the financial district.

There’s natural beauty just two minutes south at the lake and opportunities for sailing, strolling on the beach, relaxing bike rides or a ferry ride to the Islands. Nearby Ontario Place offers summer fun and live entertainment, celebrities perform at the Molson Amphitheatre, the Direct Energy Centre hosts a variety of international shows including the National Home Show, the One-of-a-Kind Show and the Royal Horse Show and Harbourfront regularly entertains with art, music and theatre festivals.

From its conception as an urban village, Liberty Village has been steadily growing. The streets are now bustling. What was once home to a small neighbourhood of factory labourers is now home to over 1,000 new residents – multi-pierced and tattooed hipsters, haberdashers, fashionistas, IT purveyors, artists, film-makers, Bay Street bankers, and a host of clever entrepreneurs.

The area’s transformation has been so radical, in fact, that Liberty Village was nominated for Community of the Year at the 2007 National Sales and Marketing Awards held in February.

What distinguishes it is the community spirit, the importance of friends, family, fun, even work. And Bliss Condominiums – now selling at extremely appealing prices in Liberty Village which promises to be one of the hippest neighbourhooods in Toronto – are an integral part of that.

New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new homes in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.

———————————————————————————

Contact the Jeffrey Team for more information