You should use a BUYERS AGENT.. it is FREE !!

I thought this was a great post, so I am repeating it here again. I have people I can happily refer you to as well that will do an amazing job for you!!!  Happy Thursday everyone!

Many first time home buyers stay away from buyer’s agents because they think it will cost them money. Well, the opposite is really true; a buyer’s agent will likely save you money. How, you ask? Well, most often the buyer doesn’t pay the agent, and the buyer gets the benefits of an agent’s knowledge, expertise, and negotiating skills. See our post about the benefits of a buyers agent for more info on how they can help.

So, how does the buyer’s agent get paid? With the typical sale, a seller pays an agent to list the property for sale. Within the listing contract this listing broker says they will offer a specified percentage of their commission to a buyer’s agent, if there is one. So, the seller is paying a commission to the listing broker, and the listing broker is paying a commission to the buyer’s agent. This is the way most deals work.  

Where the buyer needs to be careful is with FSBO’s (For Sale by Owner) and lower commission MLS deals. It’s becoming more and more common that FSBO sellers are willing to pay a buyer’s agent, but it needs to be written into the purchase contract. Also, many buyer agencies contracts will say that the buyer’s agent gets paid a percentage of the purchase price or the MLS offer of compensation (what the listing agent is offering), “whichever is greater”. When you sign a buyer’s agency agreement, make your agent cross out the “whichever is greater” portion. If you sign an agreement to pay the greatest of 3% or the MLS offer of compensation and the listing agent is only offering 2.5%, you as a buyer could be on the hook for the extra 0.5%. These instances are rare, but you need to be aware of them. We’ve actually never had a buyer pay us any portion of our commission out of their pocket.

As a buyer, having an agent work for you through a transaction rather than for the seller, at no cost to you, is a no brainer.

A couple weeks ago, I wrote about the home buying process and picking a Real Estate Agent. Although, I never really explained why you should have a buyer’s agent. There are tons of benefits to using a buyers agent! They will:

1. Talk through your financials and recommend a mortgage lender who will work well for your needs.
2. Analyze your wants and needs to help determine your requirements for a home and location.
3. Guide you to homes that fit your criteria. Ask your agent to set up a search that will notify you every time there is a new listing or price change meeting your criteria.
4. Educate you about the current market and help you make a wise decision on which home to choose.
5. Look at comparable sales to determine a reasonable purchase price on the home you choose.
6. Walk you through an offer contract and help you determine all the terms required in the contract to meet your needs.
7.  Negotiate on your behalf. Real estate professionals are trained negotiators and can often  get a better price then a consumer can on their own.
8. Keep you on track to meet all the dates and requirements outlined in your contract.
9. Recommend inspectors and testers who will provide you knowledgeable input on the condition of your future home.
10. Coordinate with the lender, inspector, title company, and listing agent to get everything ready for closing.
11. Solve any problems that may arise related to the contract, financing, inspection, title, etc.
12. Get the deal closed so you can start moving into your new home!

….and best of all…

In most cases you don’t have to pay a penny for the buyer’s agent, they’ll split the commission paid by the seller with the listing agent.

Don’t believe the lie that you get a better deal without a buyer agent.




Written : keithandkinsey.wordpress.com

Mixed Messages from the Media - Its the Norm.....

Thursday, February 21, 2013

Mixed messages from media – it’s the norm

Once again, we are getting mixed messages from the media. Headlines warn that house prices are easing, yet on further reading, we find that only a few major centres are feeling the pinch. In local markets, prices have stabilized and even increased slightly.

For example, in Vancouver, prices fell 0.81 per cent in January from December, and were down 2.54 per cent from a year earlier. Prices in Calgary slipped 0.1 per cent on the month, but rose 4.29 per cent on the year. And Toronto saw prices dip 0.37 per cent between December and January, but register a gain of 5.31 per cent from a year earlier.

While prices may be stabilizing, sales are lower than a year earlier. Information from The Canadian Real Estate Association (CREA) showed the number of sales had not changed much month-to-month since September, 2012. That just changed with CREA’s latest report released on February 15 stating that national home sales activity edged up on a month-over-month basis in January 2013.

Yes, the housing market has cooled since January 2012 but signs point to a fairly healthy spring market.
Despite recent media attention to a slowing housing market as well as reporting on job losses, and an underperforming economy, as usual, things are not as bad as they seem.  Really! Let’s first take a look at what’s happening in the U.S.

That country’s export market expanded in the fourth quarter of 2012, which means that factories are increasing their output and products are being sold. This is a good omen for the manufacturing sector there and it points to an increase in trade with other countries.

There are positive signs in the retail sector and in the consumer credit market – people are starting to spend more, albeit it’s slow, but still a good sign. 

While average home prices in the U.S. are still about 30 per cent lower than their 2005 peak, the long road to recovery has begun. Real home prices in the third quarter of 2012 were 5% higher than a year ago.
In Canada, we need to accept the market for what it is – balanced – which, actually means normal. A hot real estate market is not the norm, yet people think that anything less than boom times is doom and gloom.  Hot markets can’t be sustained. It’s great when we’re in it – all sectors benefit – but eventually, the market returns to normal.

According to a report by Benjamin Tal, Deputy Chief Economist for CIBC, the Canadian economy is making sense again. Both the labour market and housing starts, although weaker than what we’ve been experiencing, he says, are in line with what we should be seeing at this point.

The big picture is that the Canadian economy will probably grow by 1.7%-2.0% in 2013 and that’s normal.

 

Taken from TMG The Mortgage Group Blog. 

                                                            www.arianaleroux.com

When your Mortgage is Up for Renewal

When the Term of Your Mortgage is About to Mature.

When the term of your mortgage is about to mature, most lenders will mail out their renewal agreements a few months before the maturity date. 85% of Canadians auto renew with their lender just because it’s simple. This can mean that 85% of Canadians are paying too much for their mortgages because in a lot of cases that rate is above what you might have received by allowing a mortgage broker to review your situation.
By obtaining a pre-approved mortgage, i can guarentee your rates up to 120 days before your mortgage comes due. This protection helps you in case there is a rate increase in those last couple of months prior to the mortgage maturity. This could save you thousands of dollars down the road.
When your mortgages is due for renewal, it is a great opportunity to make sure you have the right mortgage for your current needs. As the mortgage is fully open on maturity, it is the perfect time to pay down your mortgage. Whatever you can afford will have a significant impact on your mortgage and your ability to be mortgage-free sooner. It is also a great time to consider a more frequent payment method, such as bi-weekly or weekly to further reduce your mortgage.
Also, if interest rates have decreased since your last mortgage, you may want to consider keeping your payments at the same level as this will also allow you to pay down the principal at an accelerated rate. 

Should You Switch Your Mortgage?   

To switch your mortgage means to move your mortgage from one financial institution to another. There are several reasons why people switch their mortgages, but the primary reason is that another financial institution is offering a better interest rate of mortgage terms. Another reason people switch is because they were unhappy or unsatisfied with their current lender.
When you switch your mortgage the new financial institution transfers your current mortgage balance and the remaining amortization period on that mortgage. Your new mortgage payments are then based on these numbers and the interest rate offered by the new institution. If you had a 40 year amortization previously, you will be reduced to 30 years. Refinancing and switching are two different things however; each financial institution has its own policies with regards to the amount you can refinance without incurring fees. You also have an option of doing a switch with a total refinance but you will be subject to fees similar to that incurred with registering a new mortgage. If it is just a switch then many lenders use title companies that will do the paperwork at your home. Make sure you’re clear with your mortgage broker on what you want to do.
If you are simply switching your mortgage at renewal time to another finanacial institution then you should not be subject to any fees or payout penalties. If you decide you want to switch and increase your mortgage amount or lengthen your amortization period, then the mortgage would have to be re-registered and you would be sugject to additional fees.(i.e legal fees, appraisal fees, etc.)

You should start the process between 90-120 days before your renewal.
 
For mortgage information about mortgage renewals and switches, contact me, Ariana Leroux, by visiting my website at www.arianaleroux.com.

Ariana Leroux
Licensed Mortgage Agent
With The Mortgage Group Alberta

phone: 780-437-5225
mobile: 780-952-4087
fax: 877-489-8126
email: arianaleroux@gmail.com

arianaleroux.com

Canadian Economy Springs Back to Life!

Canadian economy to spring back into life

Once again, Canada looks to the US for signs of life and after more than three years, the U.S. is poised for economic recovery.

 As dependent as the country is on the economic health of the United States, and indeed, the rest of the world, the government’s fiscal policy and the Bank of Canada’s astute predictions, have put us in a solid position for future growth, despite the slowdown in the real estate sector and manufacturing sectors.

On a positive note, U.S. housing starts surged 12.1 per cent in December, the fastest since June 2008.  Economic recoveries are usually led by a surge in home building. Banks offer low interest rates, and consumers take advantage to buy big items like houses. Then they buy furniture and other items to put into their homes. Construction companies start to hire, which bumps up consumer demand for goods and services, then economic growth bops along at a nice pace.

The U.S. Fed chairman Ben Bernanke said that 2013 could be a “very good” year. The early signals are good ones, which is also a good sign for the Canadian economy and the jobs market and the real estate market.

In Canadian real estate, there has been a slowdown in a few areas of the country -- Vancouver is one -- with prices and sales cooling, especially in the condo market.  However, the surrounding areas of Vancouver are already showing signs of activity.

Alberta is still expected to see strong growth despite a slight slowdown in major centres. Areas outside Edmonton and Calgary are active as well.

Sakatchewan and Manitoba have not really seen a slow down, but are experiencing a lack of inventory.
Ontario is a smorgasbord of activity – slow in some areas and strong in others. Reports have Toronto’s condo sales slowing, which Finance Minister Jim Flaherty was most concerned about in Toronto as well as in Vancouver.  Mid-month figures released by the Toronto real Estate Board show a 2.5 per cent rise in home sales compared to the year-ago period.

In the Atlantic Provinces Nova Scotia is still strong.  RBC Economics predicts that Newfoundland’s economy will swing from a bottom position in the 2012 provincial growth rankings to top spot in 2013. PEI is expected to remain the same.

It will be important to watch two things. The first is employment gains. More jobs mean an increase in economic growth. Second: real estate sales trends as we move through the first quarter. The stricter guidelines imposed by the government last year had home buyers move to the sidelines. Over the next few months, we’ll be able to see if they remain there or decide to move forward towards purchasing a home.



Jan 31, 2013 From TMG Mortgage Group Blog. 

 Ariana Leroux 
 Licensed Mortgage Agent with TMG
 Leroux Mortgages
 Mobile 780.952.4087
 Email: mortgages@arianaleroux.com
 Web: www.arianaleroux.com

Collertal Mortgage info.... HOT TOPIC! Important info

Thursday, January 31, 2013

Collateral mortgages a hot topic

There has been a lot of interest in collateral mortgages since CBC’s Marketplace took a stab at TD Canada Trust’s product on January 27, 2013.

Up until a few years ago, most mortgages were registered as a standard charge mortgage. The major decisions were to opt for a fixed or a variable-rate mortgage and what term to select.

In 2010 some banks switched to collateral charge mortgages. Traditionally, Home Equity Lines of Credit (HELOC) and revolving credit lines are considered collateral because they allow borrowers to readvance their loan, to access extra funds, without re-negotiating. Collateral mortgage charges register loans at a certain percentage of your property, up to 125%, regardless of the initial amount borrowed. If your home is valued at $250,000 and you borrowed $200,000, a mortgage could still be registered against your home for $312,500.

With a standard charge mortgage, you agree to how much you’re borrowing, the interest rate, and the term. So if your home is valued at $250,000 and you have $50,000 down, then your mortgage is $200,000. And with a standard charge your mortgage is registered at $200,000. If you wanted a line of credit, for example, you would have to reapply.

With collateral mortgages, the bank thinks you will likely want to borrow more money in the future so it is establishing a global limit. The reasoning is that it will cost consumers less because there are no additional legal fees if the customer needs to refinance. Another reason is that it keeps customers from moving their mortgage business elsewhere.

There are pros and cons to collateral mortgages with the banks having the advantage. It’s an okay product for homeowners who want extra borrowing ability along with their mortgage but it’s not for everyone.
“Yes, homeowners can refinance throughout the term without incurring legal costs as long as they’re not asking for a total loan greater than the collateral charge at the time of renewal or refinance, said Steve Nipius, TMG’s Deal Centre Manager. “However, if a homeowner only has a 5% or 10% down payment, then it’s pointless to have a collateral charge.”

The cons may outweigh the pros. First of all, if a homeowner wants to switch to another lender, they are forced to pay legal and registration fees. More importantly, most banks won’t allow transfers because of the other loans tied to the collateral charge. This makes it harder to leave the lender since all your debt, if any, is under one agreement.

“Banks know there are costs involved to the borrower if they decide to move, so there no need to offer the best rates, “Steve said.

Also, consider this scenario: Your mortgage is in good standing but you default under a credit line with the same bank. The bank could, in most cases, start default proceedings under your mortgage, meaning you could lose the house.

However, if you carry a lot of debt, require a readvanceable loan and frequently need access to cash, a collateral mortgage will save you money in the amount of legal fees you are paying.

But, if you want to the freedom to move your business elsewhere, it’s not likely the best option. Collateral mortgages mean less choice and flexibility for consumers. Most experts advise to shop around at the end of a mortgage term because you can save up to 0.5% on your interest rate, which can translate into substantial savings.

Getting a standard or collateral charge mortgage is just another complication for many homebuyers and owners. Get advice through your mortgage professional whose focus is on mortgages and who deals with a variety of lenders to get the best mortgage for your situation.

From TMG Mortgage Blog