Friday, March 28, 2008

Foreclosure Market Report - 2,203,295 foreclosure filings how can you find them?

On January 29th 2008, RealtyTrac®, the #1 online authority for foreclosures & defaulted properties, released their 2007 U.S. Foreclosure Market Report.

In their report, they mention that the 2007 foreclosures are up 75% over 2006 with a total of 2,203,295 foreclosure filings. The report also shows that more than 1 percent of all U.S. households were in some stage of foreclosure during the year, up from 0.58 percent in 2006.

Why, as a real estate buyer, should you care about foreclosures? Opportunity!

Up until now, there were very few methods of finding a foreclosure or Power of Sale (or defaulted property) in Ontario.

I tend to think a little differently than the average Real Estate Agent, which is probably why you remain part of my sphere of influence. For Power of Sale listings and foreclosures, I have created a very detailed section of my website to explain how properties end up in Power of Sale and what it means to you and how you can capitalize on buying these power of sale properties.

Read my power of sale section.

Every great adversity of the homeowner in Power of Sale brings with it a great opportunity to any buyer like you who knows where to find these properties and how to purchase them.

How?

Well, let me explain a little further...

With my POS newsletter, that alert will come to you 5 days per week showing you all the details of these power of sale properties, including the address and asking price! How can you lose?

If you are interested in receiving emails showing these new Power of Sale properties, please sign up to my POS newsletter here.

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Wednesday, March 26, 2008

Moving Expenses can be CRA Tax deductible

When you make a move in Canada you are sometimes allowed to deduct your moving expenses. This of course is depending upon your circumstances. This page will outline the situations where you may be able to deduct your moving expenses

Tax deductible Moving expenses

Maybe you have you recently moved to a new location? Did you know that you can often deduct certain moving expenses on your next Canadian Federal income tax return, including the costs of transportation, packing and storage costs.

Many people never realize these tax benefits because they don't know what can be deducted. If you are preparing to move, it's best to be informed beforehand so you know which receipts to keep.


You may find it worthwhile during a move to pay for various services that are tax-deductible rather than doing them yourself.

The typical move involves a number of costs including hiring a company to transport personal effects and furniture, hotel stays and meals (if the move involves driving a long distance to a new home), and service fees to disconnect and reconnect utilities. In addition, renters who leave on short notice may have to pay the cost of breaking a lease.

Homeowners will incur closing costs and commissions on the sale of their home as well as legal and other fees on the purchase of their new home. This article will enrich your information about some tax deductible moving expenses.

To be able to claim moving expenses on your Canadian Federal income tax return, your move has to meet the following conditions:

  • You moved to your new home or new apartment to start a job or a business, or to attend full-time post-secondary courses at a university, college or other educational institution.
  • Your new place of residence is at least 40 km closer to your workplace or school than your previous home.
  • You moved from one place in Canada to another place in Canada.

There are two groups are eligible to deduct a portion of their moving expenses: students moving away from home to attend school and people moving to a new area for a job or relocation by their employer.

There has been a challenge to the rules regarding eligibility for the self-employed as you'll read later in this article.

How the law applies to Students

Students must fulfill two main qualifications: the distance between your home and school must be at least 40km (by the shortest public route) and you must be a full-time student. A full-time student is defined as someone who regularly attends a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not) and is taking at least 60% of the usual course load during each semester.

As a student, you can only deduct eligible moving expenses from award income (scholarships, fellowships, bursaries, prizes, and research grants) that you report on your return. Your moving expenses must be greater than your award in order to deduct any moving expenses. As Revenue Canada's website reads, "If your moving expenses are more than the award income you report for the year, you can deduct the unused portion of those expenses from the award."

Although many students will not earn award income and will therefore not be able to deduct moving expenses, tuition fees themselves are a tax deduction. If a student has a part-time job, tuition can reduce taxes paid on those earnings.

Students who meet the qualifications and have received award income can deduct the costs of travel, shipping and transportation of belongings, as well as items listed below under 'Expenses you can deduct'.

How CRA applies the law to Employees

If you are moving for work (e.g. a company relocation or new job), are employed and establish a home at least 40 km closer to a new job than your old home, then you qualify to deduct moving expenses. Similarly, if you are self-employed, and you establish a home at least 40km closer to your new operational business than your old home, you also qualify to deduct moving expenses.

According to Revenue Canada, you must establish your new home as the place where you and members of your household ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home.

Employed and Working from Home: an Exception to the Rule

Until recently, employees who work from home and move have faced some restrictions regarding moving expenses. In the court decision Gary Adamson v. the Queen, Mr. Adamson had incurred moving expenses as an employee who was required to provide his own office in his home.

List of typical Personal expenses you can deduct:

  1. transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers;
  2. traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence (you can choose to claim vehicle and meal expenses using the simplified method);
  3. costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household (you can choose to claim meal expenses using the simplified method; and
  4. the cost of cancelling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

When your old residence is sold as a result of your move, eligible moving expenses also include:

  • legal or notaries fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence, and
  • the cost of selling your old residence, including advertising, notarial or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

This is a list of the typical Expenses that are not deductible:

  • expenses for work done to make your home more saleable;
  • any loss from the sale of your home;
  • expenses for house-hunting trips before you move;
  • the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products;
  • expenses for job hunting in another city (such as traveling expenses);
  • expenses to clean or repair a rented residence to meet the landlord's standards;
  • expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets;
  • mail-forwarding costs (such as with Canada Post);
  • costs of transformers or adaptors for household appliances; and
  • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved.

Don't forget to keep recipient and documents supporting your claims, you do not have to include those document in you tax claim but Canada Revenue Agency may want to see them at a later date.

The tax laws are frequently modified, we recommend that you visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim or consult a professional accountant to maximize your tax return. Please not that this article is for information only, you must contact your accountant or CRA to confirm that all of the above information is still applicable in your area and/or province.

Thank you and enjoy!

Mark

Good luck! Remember - many of your moving expenses can be tax deductible, so hang on to your receipts. Call CCRA Revenue Canada or visit their online site here which is an excellent resource for all the necessary tax forms! The "T1-M Moving Expenses Deduction" can be found here - form outlines who can use and claim the expenses and shows details and information on using the form.

More Moving Tips from RE/MAX

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Tuesday, March 25, 2008

Watch out for those Neutron Mortgage Loans!

Watch out for those Neutron Mortgage Loans

It's no wonder people in the US are in financial trouble, read this one and you will be amazed - Long-fuse mortgage bomb
ection
Americans who took out `option ARM' home loans will see monthly payments explode in coming years


New York–Joe Ripplinger took out a $184,000 (U.S.) mortgage in 2006 and makes his payments every month.

Now he owes $192,000.

The 66-year-old Minneapolis house painter has a payment-option adjustable-rate mortgage. It allows him to write a cheque for $565 a month even though he owes $1,300.

The difference is added to the mortgage, and when his total debt reaches $212,000, or after five years have passed, he said his monthly payment could jump to about $2,800, which he can't afford.

"We're barely making it right now," Ripplinger said.

The estimated one million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Board chair Ben Bernanke.

While subprime borrowers face an average increase of 8 per cent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.

"We call them neutron loans because they're like a neutron bomb," said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. "Three years later the house is still there and the people are gone."

Once option ARM borrowers' loan balances reach a predetermined limit, called a negative amortization cap, usually 110 per cent to 120 per cent of the mortgage amount, their payment rates immediately increase. They also automatically shoot up after five years.

Otherwise, increases typically are capped at 7.5 per cent of a borrower's initial payment per year.

"These could be called long-fuse, exploding ARMs," said Kathleen Keest, former assistant Iowa attorney general and now senior policy counsel at the Center for Responsible Lending in Durham, N.C.

"I've heard people say they are the most complicated product ever offered to consumers. They are the real liar loans."

The loans accounted for 8.9 per cent of the almost $3 trillion in U.S. home loans made in 2006, up from 8.3 per cent in 2005, according to an estimate by industry newsletter Inside Mortgage Finance.

Originations of option ARMs fell 50 per cent during the first nine months of last year, the newsletter says.

"The problem is, you can refinance an option ARM to a 30- year conventional loan at a 5.5 per cent interest rate, and you're still looking at your payment going up 150 per cent," said Andrew Laperriere, managing director of New York-based research firm International Strategy & Investment Group.

"That's pretty ugly."

About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.

That's the year that Joe Ripplinger's payment will jump, provided he doesn't reach his negative amortization cap before then.


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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Sunday, March 23, 2008

CMHC Update clients can now purchase rental properties (up to 4 units) with as little down as 5%

CMHC Update on investment property purchase

CMHC has just released an update where clients can now purchase rental properties (up to 4 units) with as little down as 5%.
And mortgage lenders are now allowed to use 80% rental income offset which makes it much easier for you to qualify! Let me know if you require more details and I will put you in touch with my mortgage people.
http://www.mississauga4sale.com/Investment-Property-Purchase.htm
Thank you and all the best!
Mark

read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

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Friday, March 21, 2008

Have you heard of the new 50 Year Mortgage?

You've no doubt seen 30 year and even the 40 year mortgage in the past year or so. But now, a Canadian mortgage and credit company is offering a 50 year amortization mortgage. Yes, you heard it right, 50 years!

The company is called Centum and they say they offer mortgage financing, home equity loans and debt consolidation especially designed for first time buyers and those with good, bad or marginal credit. Their site is labuick .com

It will likely not be too long before the other major lenders follow the lead!

Does this mean that you need to buy your first home at 15 years old to have it paid off by retirement? ;-))

http://www.mississauga4sale.com/bestrate.htm

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Thursday, March 20, 2008

More Canadian Tax Planning Tips






Tax Planning Tips

A Bigger Tax Refund is Yours for the Asking

No matter your age or income level, there are steps you can take to reduce the taxes you pay. It may be a matter of claiming all of the credits and deductions you are entitled to. Or it may involve splitting income with your spouse to reduce your family's total tax burden.

Under Canada's graduated tax system, the more you earn, the higher your tax rate. The rate of tax you pay on the last dollar you earn is known as your marginal tax rate (your tax bracket). It's an important concept because it tells you how much you would save by reducing your taxable income. For instance, if your marginal tax rate is 25% and you contributed $1,000 to your RRSP, you would save $250 in taxes.


Ready to get started? Explore the links below for some timely reminders to help you generate tax savings this year, as well as information on longer-term strategies.




Reduce Your Taxes Now: Maximize Your Credits and Deductions


Here are some tips to help you take advantage of available tax credits and deductions when filing your next tax return. For a more comprehensive list of credits and deductions, or specific strategies related to your situation, consult a financial or tax advisor. Not that details on credits and deductions may change from year to year. Visit the Canada Revenue Agency (CRA) website for specific amounts.


Claim all your credits
Tax credits reduce your taxes directly — a $100 credit reduces your taxes payable by $100. Deductions, on the other hand, reduce your taxable income — the higher your marginal tax rate, the more a deduction is worth to you.


Medical expenses
The medical expense tax credit is one of the most under-used tax breaks. It's available on medical expenses that exceed a prescribed amount or a certain percentage, whichever is less. Provincial tax credits also apply, but will vary according to the province of residence.






Education expenses
Post-secondary students are eligible for education and tuition tax credits. Visit the CRA Website for details. Provincial tax credits also apply, but will vary according to province of residence.






Charitable donations
Charitable giving is a great way to support the causes you care about and help your community. Your donations are eligible for a federal tax credit that increases once donations exceed $200 for the year. As with medical expenses, married or common-law couples can pool their donations to generate even greater savings.






Age and pension credits
All taxpayers over age 65 can claim the age credit but the credit available will depend on your income. You are also entitled to claim a non-refundable tax credit on up to $2,000 of qualified pension income, which includes payments from registered or pension plans but does not include CPP or QPP benefits.


Take your deductions


Think back over the past year. Are there new or one-time expenses you can deduct? You're probably most familiar with the tax deduction for your Registered Retirement Savings Plan (RRSP) contribution, but there are many others you can use to reduce your taxable income.


Moving expenses
If you moved at least 40 km to take a new job or to attend a post-secondary institution full time, you are allowed to deduct certain moving expenses. These include van rentals, the costs of hiring movers, furniture storage, and legal fees and real estate commissions involved in selling your home, among others. The amount is deductible only from income earned at the new job location or from a scholarship or research grant income.


Childcare expenses
The costs of raising a child — including daycare expenses and boarding school fees — can be deducted when both spouses are working or going to school full time. Generally, the lower-income spouse must use the deductions.


Deductions for the self-employed
If you run a home-based business, there are numerous deductions available to you. Let's say your home office takes up 25% of your total floor space. You can deduct 25% of your utilities, home insurance, mortgage interest, and maintenance costs, for example. Expenses directly related to the business, such as supplies and your business phone line, are also deductible. It's a good idea to speak to your accountant or tax advisor, and to keep accurate records.


Act Now to Save on Next Year's Taxes: Use Your Refund Wisely


You've taken advantage of available tax credits and deductions and are expecting a refund. Although it may be tempting to spend your tax refund right away, carefully reinvesting that money can generate even greater tax savings - and investment growth - for you and your family. Here are some ideas to consider:


Maximize RRSP contributions
Your RRSP remains one of your most powerful tax breaks. Not only do you receive a deduction for the contribution you make, the earnings in your plan compound tax-free. Contributing your refund to your RRSP will allow you to capitalize on up to a year's worth of investment growth. To get the most out of your RRSP on an ongoing basis, consider "paying yourself first" by setting up a regular investment plan. This will help you maximize your refund for next year.


Set up and contribute to an RESP
Saving for a child's education? If so, consider using your tax refund to set up a Registered Education Savings Plan (RESP). Although there's no immediate tax deduction, the money in the plan compounds tax-free. When the funds are withdrawn to cover education costs, they're taxable in your child's hands, not yours.






Pay down debt
If you took out an RRSP catch-up loan, consider using your tax refund to pay back the loan. This will reduce your interest costs and free up cash.


Make Tax Savings a Year-round Priority


Once you've wrapped up this year's taxes and put your refund to good use, you can start planning to reduce your taxes for next year and beyond. Here are some planning strategies to consider. You financial advisor can help you get the most out of these strategies.


Income-splitting opportunities
Because of Canada's graduated tax system, the more you earn, the higher your tax rate. If you are married or living common-law and one spouse earns more than the other, splitting income can reduce your family's overall tax bill.


Saving and investing
When both spouses are working, the higher-income earner should pay the bills and household expenses and the lower-income spouse should save and invest. Income earned on these non-registered investments may be subject to tax at a lesser rate. Be sure to keep good records and separate bank accounts if you employ this strategy.


Sharing government pension benefits
If you will soon be applying for Canada/Quebec Pension plan benefits, there is an opportunity to split income in retirement. If only one of you is entitled to benefits, or if one spouse's benefits will be significantly larger than the other's, apply to pool the benefits and have 50% paid to each of you. This can help put more money into the hands of the lower-income spouse.


Tax-smart investing outside of your RSP
Inside your RSP, all investment income accumulates tax-free. Outside your plan, the different types of investment income - interest, dividends, and capital gains - are taxed differently. Interest income, from your savings account for example, is taxed at your marginal rate, while dividends and capital gains receive preferential tax treatment. If you plan to build a non-registered portfolio, equity mutual funds are a tax-smart way to begin.








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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


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Wednesday, March 19, 2008

Interest Rate cut by 3/4 of a Point United States Federal Government


Fed Cuts Key Interest Rate by 3/4 of a Point


WASHINGTON The Federal Reserve reduced short-term interest rates for the sixth time in six months on Tuesday March 18th, capping an extraordinary series of measures it has taken to stabilize financial markets. The cut was smaller than investors had been expecting, though, and exposed some signs of a split among policy makers.

Rescue Tests the Fed's Credibility (March 18, 2008) The central bank lowered its federal funds rate the rate it charges banks for overnight loans by three-quarters of a percentage point, to 2.25 percent, and left the door open to additional rate cuts in the months ahead.
Though it was one of the biggest one-day rate cuts in decades, investors had been betting heavily that the Fed would cut its key rate a full percentage point in response to strong evidence that a recession has begun and to the deepening crisis on Wall Street.
But two members of the Fed's policy-making committee dissented, saying they favoured an even smaller rate cut, and the policy group as a whole expressed new worries about inflation a possible argument against any future cuts।


"Inflation has been elevated, and some indicators of inflation expectations have risen," the Fed said in a statement that accompanied the rate decision. "It will be necessary to continue to monitor developments carefully."

Some saw the cut of three-quarters of a point as a compromise to appease those who wanted less. Others surmised that the Fed may have been reluctant to cut rates further immediately in part because as the rates inch closer to their floor of zero, the Fed leaves itself less room to manoeuvre in case of further financial shocks. From The New York Times
Read about Canadian Interest Rates


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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


Homes for Sale

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Tuesday, March 18, 2008

Canadian Housing Market Update


Canadian Housing Market Update?

The Canadian housing market continues to lose momentum after a prolonged show of strength. Today's February existing home sales data from the Canadian Real Estate Association show that resale activity fell 6.4% from the prior month and 9.6% from a year ago. While this year's wicked winter weather has no doubt played a role, the 8.9% y/y drop in sales in the first two months of 2008 is a big turnaround from last year's 7.6% rise in overall sales.


As Canadian sales have lost steam, we are finally seeing some signs of cooler price gains as well: Average home prices were up 5.3% from year-ago levels in February, less than half of last year's average increase of 11%, and one of the smallest gains since the boom got rolling in 2002. The yearly price rise is still skewed by the mammoth 55% and 41% jumps in Regina and Saskatoon (respectively), although 7 cities reported double-digit gains last month.

The previously steaming hot Alberta markets are fully back down to room temperature, and continue to drag heavily on the overall sales figures. Sales in Calgary (-35.4% y/y) and Edmonton (-31.8% y/y) fell steeply from a year ago, while new listings continue to rise sharply. That's a nasty omen for the local markets, and both have seen price increases dip to around the 5% range.


The Bottom Line: With the further slide in February, Canadian home sales are now firmly below year-ago levels, another sign that the Great White North's housing boom is grinding to a finish. Dismal weather (unless you're a polar bear) may have exaggerated the weakness in the opening months of the year, but there are more durable factors to suggest that the bloom is off the boom. Sagging affordability and the likelihood of increased consumer caution point to calmer housing market conditions through the rest of 2008.


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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


Homes for Sale

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Monday, March 17, 2008

Bank of Canada to cut by another 50 bps in April so thinks TD/CT

Insights and highlights from TD/CT

U.S. weakness takes bite out of Canadian growth and Bank of Canada to cut by another 50 bps in April

Canada cannot escape the fallout from the U.S. economic slump was the message that rang loudly in the Bank of Canada's decision to pull the trigger on a 50 basis point cut to its overnight rate on Tuesday. In fact, in light of the increasingly "dovish" tone in the communiqué that accompanied the rate move and this week's spate of soft economic data, another rate cut in April appears a very good bet. The only question is: how much? Despite today's unexpectedly robust job report, the risks still are tilted towards another bold half-point reduction by the central bank, taking the overnight rate down to 3.00%.


Canadian growth prospects waning

This week's economic news highlighted the growing dent being placed on Canada's growth prospects from softening U.S. demand. A whopping 8.5% drop in exports was the key culprit dragging down Canadian real GDP growth to a six-year low of 0.8% (annualized) in the fourth quarter from 3% in the prior period. Offsetting the export plunge was a surge in domestic spending (+7%), spearheaded by the consumer. So, while the bite of weakening manufacturing exports to the United States is becoming more evident, domestic resilience continues to drive overall expansion – some good news there.

These trends were echoed in this morning's employment numbers – in spades! More than 40,000 net new jobs were created in Canada in February on the heels of an equally impressive gain in January and leaving the jobless rate at a 33-year low of 5.8%. Some 24,000 jobs in the export-heavy manufacturing sector were lost in the month, bringing the total losses since November to 50,000. Yet, service sector job creation powered ahead by 56,000 positions, with increases spread across public and private sectors. On a year-over-year basis, jobs in the public sector have increased at three times the pace (+6.6%) of the overall economy (+2.2%).

The blockbuster employment increase raises the question how much longer the job market can remain "decoupled" from the production side (i.e., GDP). Historical experience in Canada would argue that this divergence won't last very long. As export output and employment remain under significant pressure – which as we discuss below is very likely – there will be increasing knock-on effects to construction and services, and employment will ultimately follow suit. Governments will also respond to slower revenue growth by softening the pace of new hiring. In the meantime, the robust job market conditions continue to mitigate the risk of recession in Canada.

U.S. problems continue

With the U.S. problems leaving an increasing footprint on the Canadian landscape, this week's U.S. indicators did not provide much comfort. After being served up earlier this week with news that housing foreclosures jumped to a new high in the fourth quarter, investors received word that households are facing a rapidly-eroding employment picture. Non-farm payrolls dropped by 63,000 positions in February, chalking up the second straight monthly loss. Other indicators weren't much more heartwarming. The ISM survey of manufacturing activity slipped below 50 – the growth-contraction threshold – for the second time in the three months. On a brighter note, the export sub-index remained well above 50, indicating that a weak U.S. dollar continues to provide a boost to economic growth. The ISM non-manufacturing index rose from its depressed level of 44.6 in December, but at 49.3, remained slightly below 50.

It is the export sector – along with the stimulus from the Bush plan and Fed rate cuts – that will continue to provide key offsets to the headwinds brewing on other fronts going forward. At the same time, however, commodity prices, and notably crude oil (which rose to a new record of U$105 on Thursday) continue to rise on the back of U.S. dollar weakness. And with these elevated prices representing a tax on many U.S. consumers and businesses as well as raising inflation fears, some of the growth benefits of the currency-related weakness be increasingly eroded. In addition, the Fed will have less room to lower interest rates than otherwise would be case. Lastly, as we discuss in special report this week entitled U.S. Homeowners Not Getting Much of a Break on Mortgage Rates, the power of central banks to boost growth by rate cuts is lessened significantly when credit markets are in distress. Despite 225 basis points in Fed rate cuts, U.S. mortgage rates have barely budged.

Bank of Canada likely to go 50 again

Putting it all together, while the brisk job growth will not be lost on the Bank of Canada, we still feel that another aggressive half-point rate cut will be in the offing at the central bank's next fixed announcement date in April. By then, it will remain clear that the U.S. problems are not getting better, that the slowdown in Canada continues to broaden to the services side, and that Canada's overall economy will be hard pressed to record growth in the first quarter. Soft core inflation trends also provide credence to our call. Lastly – and importantly – we assume that the March reading on employment will better reflect the softening underlying momentum in the Canadian economy.

TD Economics releases Global Markets

This week, TD Economic released its latest installment of Global Markets, which presents quarterly forecasts for North American bond yields and international currencies. Despite the string of soft U.S. news, we still feel that too much pessimism has been priced into U.S. government debt markets, with yields likely to head moderately higher from current ultra-low levels and for the overall curve to flatten over the remaining three quarters. Canadian yields are also forecast to rise, albeit to a much lesser extent. Another key takeaway is that the US greenback will eventually find a bottom, likely by mid-year, although low U.S. rates will limit the extent of the bounce. In contrast, the Canadian dollar is likely to gravitate towards 95 US cents by year end.

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Saturday, March 15, 2008

Mortgage, Debt and strategies to receive Tax Benefits

Many of us have been busy shopping, baking, visiting with friends and family and now starting to make some New Years Resolutions as well. One might be to start the New Year off with some strong Financial Planning. Perhaps looking for ways to pay off some debts, contribute to your RRSP's or maybe even taking that long wanted vacation or the home renovations that have been sitting on the back burner.

Ø Is your mortgage Tax Deductible?

Ø When should you consolidate your debt?

Ø What are the Benefits to you?

Ø Would you receive a Tax Benefit?

Make 2008 your best year ever!

Most people have more than one debt. You may have high interest credit cards, loans and mortgages. To pay off one debt you may need to borrow from someone else, creating yet another debt. The solution to this problem is debt consolidation. If you own a home, you can get a debt consolidation, home equity loan. With a debt consolidation loan you will have to consolidate each of your high interest credit cards, as well as your consumer loans, into one inexpensive and affordable monthly payment with low interest.

Tax deduction and home equity loan consolidation

Another possible advantage is that interest you pay on your equity debt consolidation loan may be tax deductible. Normally, if you add your first mortgage to a new debt consolidation loan, and the total does not exceed 100% of the appraised value of your property, the interest you pay will be fully deductible. Your tax consultant can advise you on the matter, and it's always a good idea to check with him or her. A yes to any one of these questions is a red flag. A yes to more than one indicates that you're probably a strong candidate for debt consolidation. Don't let your stress level get any higher.

Ø Have you hit the maximum limits on all your credit cards?

Ø Do you charge more than you can pay off each month?

Ø Are you unable to pay more than the minimum payments?

Ø Do you accept every credit offer you receive?

Ø Are you transferring balances to avoid paying them off?

Ø Are creditors calling you directly to ask about payment?

Ø Are you incurring fees for missed payments?

Ø Are any of your credit accounts in default?

Why should I refinance?

If you bought your home a few years back when annual interest rates were 12 percent, refinancing now can save you a great deal of money over the term of the mortgage. Or you might be able to switch from a 30-year mortgage to a 15-year, so you can pay off your loan in half the time with roughly the same monthly payments.

There are several reasons to refinance your home:

1. Lower the interest rate on your mortgage, reducing your monthly payments, and overall cost;
2. Reduce the term or length of your loan, doing so can save you thousands of dollars in interest;
3. to provide a means of consolidating your debt;

4. Contributing to your RRSP's and take advantage of the tax benefits.
5. To draw on the equity built up in the house to get cash for a major purchase or for children's education;
6. Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.


It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:

1. How much can I lower my current monthly payment?

2. How much will I pay in refinancing costs?

3. How much will I still owe on the house?

4. How much am I currently paying each month?

5. How much did I initially pay for the house?

There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Friday, March 14, 2008

RBC report on Toronto GTA housing affordability



RBC report on Toronto GTA housing affordability


Toronto - more moderation in 2008


Affordability across Toronto deteriorated modestly for bungalows and townhomes and stabilized for condos and two-storeys. An overall improving affordability trend is expected in 2008 as new home and resale markets cool off amidst an increasingly lower mortgage rate environment. It is difficult to speak of the Toronto market without drilling into the different pockets of strength within the
city.


The core Toronto area remains tight and continues to bias the headline numbers up. Outside of the core, several other sub-regions will see a continued moderation in average house price growth in 2008.


To date, the condo market has proved quite resilient with house prices still growing at a 10% year-over year pace. However, a sizeable increase in supply coming to market over the next two years is expected to shave some of the excitement off price growth.



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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


Homes for Sale

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Thursday, March 13, 2008

Is the US Economy In or out of recession?

This is the RBC viewpoint on whether the U.S. economy is in or out of recession?

The pace of U.S. economic growth is expected to remain lacklustre in the near-term as the impact of the recent increase in the cost of borrowing weakens business activity; the housing market recession rolls on; and even the indefatigable U.S. consumer pares back spending on worries about the labour market, eroding net wealth, rising borrowing costs and more restrictive access to credit. Modest support will come from the trade sector — export growth is forecast to outpace imports as the past weakening in the U.S. dollar supports foreign demand for U.S.-made goods and lessens U.S. demand for foreign-made products.

Whether the economy falters is only important if the decline is deep and prolonged.

We believe that the third-quarter outlook is brighter because the large fiscal stimulus package passed earlier this year is likely to revive consumer spending activity.

We are assuming that about one-half of the more than $100 billion in tax rebates given to U.S. households will be spent mainly in the third quarter, boosting the annualized quarterly consumption growth rate by two percentage points and adding about 0.3 percentage points to 2008 GDP growth. This revival in consumer spending is expected to stem the weakening in the U.S. labour market. At the same time, the lagged effect of the Fed's aggressive easing campaign and more stable financial market conditions will shore up household balance sheets, setting the stage for stronger growth in 2009.

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Wednesday, March 12, 2008

Tips for Tax time


With just a few more weeks to go before the April 30 deadline for filing your personal tax return, you can still be rewarded with a lower tax bill if you pay careful attention to all the available deductions and credits and how you claim them.

Here are some practical tips to help you reduce your tax bill.


Tax Filing Tips





  • Are you an investor?
    You may be able to claim deductions for:

  • Interest — If you've borrowed money that you're using to earn income from a business or property, such as common shares bought on the stock market, the interest you pay is generally deductible.
  • RRSP contributions — If you made an RRSP contribution by March 1, 2008 and you have enough RRSP deduction room, you can claim the deduction on your 2007 income tax return or carry it forward, if doing this will benefit you more.
  • Small business investment losses — If you or your company invested money in an unsuccessful "small business corporation" and you now have a capital loss on shares of the corporation or debt it owes you, the losses may qualify as "allowable business investment losses". Unlike other capital losses, this type of loss can be used to reduce income other than just simply capital gains, such as employment or investment income.

Are you a commuter?


  • Commuters' tax credit — If you kept your monthly transit passes for travel after June 30, 2006 on local or commuter buses, subways and trains, remember to claim the new transit pass tax credit on your 2007 personal tax return. You may be able to claim the credit for monthly passes used by your spouse or child under 19.

Are you a business owner?


  • Self-employment expenses — If you're self-employed, make sure you take advantage of all the business-related expenses that you can claim to reduce your taxes. These include automobile expenses, parking fees, business association fees, entertainment costs, convention expenses (a maximum of two per year), cell phone bills, depreciation on your computer and salaries paid to assistants, including family members. Remember that in most cases, you can deduct private health care premiums as a business expense instead of as a medical expense.


Are you an employee?


  • Employment tax credit — If you are employed, remember to claim the new employment tax credit on up to $250 on your 2006 tax return to help cover your work-related expenses.

Do you have a family?


  • Child care expenses — If you have qualifying child care expenses, you may be able to deduct $7,000 for each child under seven and $4,000 for each child aged seven to 16. The expenses have to be made to allow you or your spouse to work, carry on business, attend school or carry on grant-funded research. Usually, the lower-income spouse must claim the deduction.
  • Charitable donations — If you're married, don't claim charitable donations separately — combine them and claim them on the higher-income spouse's return. The receipts can be in either spouse's name. If you donated public company shares to a charity after May 1, 2006, you will not have to pay tax on any capital gain on the shares.
  • Pay your spouse's tax bill — If you earn income in a higher tax bracket than your spouse, consider paying your spouse's tax bill with funds from your own separate bank account. This will leave your spouse with more funds of his or her own for investments, on which he or she will pay a lower rate of tax than you would.
  • Transfer your credits — If claiming certain non-refundable credits has reduced your federal tax owing to zero without using up all the credits, you may be able to transfer the unused amount to your spouse. Credits for charitable donations, tuition fees, education amounts, the age amount (for people over 65) pension income credits or disability credits can be transferred to your spouse's return, as long as you've used as much of them as you could.

Are you a student?


  • Textbook tax credit — If you're a post-secondary student, you may be able to claim a new textbook tax credit on the amount of $65 for each month of 2007 that you qualify for the full-time education tax credit or $20 for each month you qualify for the part-time education tax credit. If you can't use all of this credit in 2007 you can transfer it to a parent or spouse or carry it forward indefinitely.

Did you move during 2007?


  • Moving expenses — Moving expenses are often overlooked as a deduction. If you started working at a new location of employment or started a new business in 2007 and you moved to a home that is 40 km closer to your new work location than your old home was, you may be able to deduct many of your moving expenses, providing that the expenses were not reimbursed by your employer.

Do you have medical expenses?


  • Medical expenses — If your family has medical expenses totalling more than 3% of your net income (or more than $1,885 if your net income is over $62,833), you may be able to claim a federal tax credit for all qualifying expenses above the threshold. Keep in mind that you can claim your expenses for any 12-month period ending in 2007 on your 2007 return. The list of qualifying expenses is long — check the CRA web site for more information.

Can't afford to pay your tax bill?


  • Reduce late filing penalties — File your return on time even if you can't pay the balance owing. Doing this will eliminate the 5% late-filing penalty, though you will still have to pay interest on your balance. If you can't file your return on time but you know you owe taxes, making a payment by April 30, 2008 will help reduce late-filing penalties.



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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


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Tuesday, March 11, 2008

Seven Tips For First-Time Homebuyers


Seven Tips For First-Time Homebuyers

If you've ever thought about owning a home, now may be the time to take action. Lower interest rates combined with a large inventory of homes in most markets across the U.S. may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

"Whether you've been dreaming of owning a home for years or you've just decided it would be a smart financial move to make, your first home buying experience will be a memorable one," says Jim Ferriter, executive vice president for GMAC Mortgage. "It's important to learn about your financing options in order to find the mortgage that's right for you."

Ferriter offers the following tips for first-time home buyers:

1. Educate Yourself About the Mortgage Process - By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It's important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership. A mortgage tutorial is available at http://www.mississauga4sale.com/mortgage-qualifier-payment.htm, which breaks down the home buying process into easy-to-understand steps.

2. Save Just a Little Bit More - It's not only important to save money for the down payment and closing costs, but it's important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit - An individual's credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender - As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender or loan officer you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you've identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved - Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a credit pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don't Be Afraid to Ask Questions - Once you've found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect - Before you commit to purchasing a home, don't forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

For more information about the process for buying your first home, visit http://www.mississauga4sale.com/buying.htm

Courtesy of ARAcontent
Read more about first time buyers in detail at my site


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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,



Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com



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Monday, March 10, 2008

GTA Real Estate Marketplace Very Eventful!


The last month or so has been very eventful in the GTA real estate marketplace.




  • First of all, the Bank of Canada reduced the prime rate .5% last week. There has not been such a large drop since just after 911. Read More


  • Secondly, the weather in the GTA has been a major player in slowing down our market somewhat, only time will tell, and soon, if our market will surge as it has in the past 13 years in March/April.


  • Lastly, the US real estate market and economy is reeling from the sub-prime crisis. We are about 5 months into a recession in the US and most are predicting another 8 to 16 months of this. Read more about the Sub-Prime Meltdown




How much this will affect our GTA real estate marketplace and the Canadian economy in general is not known, but so far we are holding our own and many suggest that we will not feel the effects of the US slowdown and our economy will be fine for the short and long term. I tend to agree.




Read the latest Price Trends




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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,



Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com



Homes for Sale

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Sunday, March 09, 2008

Do you need the services of an Independent Fire Code Inspector?

Tips to getting your possible non-compliant properties inspected by an independent fire code inspector

Today most Fire Departments are taking non-compliant cases straight to prosecution.

Compliance is now expected and failure to comply can result in fines and prison terms.

Last year the Office of The Fire Marshal starting promoting a Zero Tolerance Policy.

They are now putting on courses for fire department personal entitled "Walk Your Talk To Zero Tolerance" a one-day workshop enhancing a stronger enforcement approach towards compliance with the Fire Code. These courses are to explain the legislation, how to commence Court Proceedings and processes necessary for successful prosecutions.

This is why you need the services of an Independent Fire Code Inspector who is fully conversant with Fire Code issues. He will offer advice on the best method of attaining compliance before the authorities become involved, thereby eliminating the risk of prosecution and fines of up to $50,000.

To-day the services of a Home Inspector are considered a necessary part of any real estate transaction.
So too must the services of an Independent Fire Code Inspector be considered necessary for any transactions involving multi-unit income properties.

Other properties, such as retrofit addresses any building with 2 or more apartments, from the house with a basement apartment right up to the apartment building.

So for all your Retrofit needs remember The Fire Guy
"Who is here protecting you from Fire and The Fire Departments"

This article is courtesy of The Fire Guy

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Saturday, March 08, 2008

Treehouse Monkeys REMAX TV Commercial

Another RE/MAX TV commercial, Enjoy!

video

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

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Friday, March 07, 2008

Current Mortgage Interest Rates


Following yesterday's Bank of Canada rate announcement, many mortgage lenders have lowered their prime lending rate to 5.25%.


Fixed rate mortgages remain stable.


Variable rate clients have benefited from this decrease - today's best variable rate is 4.65%.


With it's low rates, many borrowers are choosing the variable rate mortgage.

A few points to consider:


  • Ability to switch to lenders fixed rate mortgage during term (without a penalty);
  • Switching at 'best rate' vs posted rate;
  • Mortgage payments - change with prime vs remain stable (make sure you have choice).

Please let me know how I can help you if you want me to put you in touch with lenders that offer these rates!


Mortgage Rate UPDATE
March 5th, 2008


Prime Rate………….5.25%
Variable Rate……….Prime less .60%
1 year closed……….5.20%
3 year closed……….5.85%
5 year closed……….5.69%*
7 year closed……….5.93%*
10 year closed……...6.00%*
25 year closed……...7.00%



Read more about Interest Rates


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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com



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Thursday, March 06, 2008

Mortgage Interest Rate Specials


I know some mortgage people that are offering exception mortgage deals now that prime has dropped another .5%

1) 5.64% 5 year rate


CLOSINGS MUST HAPPEN BY MARCH 30th 2008.


Available on BFS and Rental NOT offered on fixed portions within the HELOC NOT offered on Pre-approvals For new purchase offers only



2) Prime rate is now 5.25%


That means qualified deals for ARM, High Ratio Rentals and High Ratio BFS rates are as low as 4.55% (Prime minus 70)


3) City of Toronto's increase to the Land Transfer Tax;


Solutions for Mortgages will take you to a lender who will now cover the cost of the tax for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years, subject to the following:


  • Maximum payout amount is $15,000 or 1.5% of the mortgage amount, whichever is less

  • Applications must be submitted between November 22 2007 and March 11 2008, and must fund by March 21, 2008

  • Offer is applicable only to Toronto properties which were affected by the new City of Toronto Land Transfer Tax

  • Purchase transactions only

Eligible rates and terms as follows:


5 year Fixed Rate Mortgage with a rate discount of 1.01% off the posted rate
7 year Fixed Rate Mortgage with a rate discount of 1.22% off the posted rate
Not available in conjunction with any other offers
Funds are paid directly to the customer
Clients must be approved by this lender

4) Rate special on selected
short term mortgages

6 month term
1 year term
3 year term

5.25%
5.45%
5.39%


Conditions:
- For new business only


- No pre-approvals
- No rental or equity deals


-These special rates do not apply to refinances of existing business


Limited time offer.


Let me know if you are interested and I will put you in contact with these mortgage brokers.


Thanks

Mark



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RBC reports Brighter outlook for second half of 2008


RBC feels that the second half of 2008 will be better than the first half of this year.


Brighter outlook for second half of 2008

While the near-term outlook for the U.S. economy is decidedly bearish, our view that the Fed will cut rates by another 100 basis points provides one of the supports for our call
that the economy will recover in the second half of the year. This recovery will also be aided by an expected $150 billion fiscal package that we are assuming will make its way through Congress shortly. The fiscal stimulus package is expected to include sizeable tax rebates that will reach U.S. households by the third quarter and provide a significant boost to growth.


At the same time, efforts by the government to curb the pace of sub-prime mortgage defaults are assumed to be successful in tempering financial market volatility, limiting additional spread widening and calming equity markets.


Doses of monetary and fiscal stimulus will be enough for the economy to regain upward momentum and we forecast real GDP growth of 3।9% in the third quarter and a more moderate 1.7% in the fourth. The combination of soft first-half growth and the stronger second-half pace will result in GDP growth of 1.4% in 2008, slower than the 2.2% pace in 2007 and our previous forecast the U.S. economy would expand by 2.1% this year.



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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


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Tuesday, March 04, 2008

RBC Royal Bank decreases prime rate

RBC Royal Bank decreases prime rate

TORONTO, March 4 /CNW/ - RBC Royal Bank today decreased its prime lending rate by 50 basis points to 5.25 per cent from 5.75 per cent, effective March 5, 2008.

Nice to see the banks are coming on board with this rate reduction!

Others will soon follow.

Enjoy!
Mark

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

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Prime Rate cut One Half Percent Bank of Canada to 3.5 per cent


Bank of Canada slashes interest rates half a point to 3.5 per cent

From the Canadian Press, OTTAWA The Bank of Canada has slashed its key short-term interest rate by half a percentage point to 3.5 per cent in an attempt to bolster Canada's flagging economy.


And the central bank signalled that further cuts to its overnight rate may be required soon, possibly as early as its next scheduled date of April 22.


The cut was the third in as many months, but the first time the central bank has moved so boldly on interest rates since the aftermath of the September 2001 terror attacks.


Tuesday's action was the first under new Bank of Canada governor Mark Carney, who took over the central bank's top post on Feb. 1 from David Dodge.


In its statement, the bank cited worsening economic conditions in the U.S., which have shown up in weaker Canadian exports.


The bank said the American slump is likely to be deeper and more prolonged than previously forecast, and prospects for the Canadian economy have darkened.


Text of the Bank of Canada statement Tuesday as the central bank cut its key overnight interest rate by half a percentage point to 3.5 per cent:


Information received since the January Monetary Policy Report Update (MPRU) indicates that economic growth in Canada through the four quarters of 2007 was broadly in line with expectations. Domestic demand has remained buoyant, as rising commodity prices and high employment have continued to support income growth. Canada's net exports weakened further in the fourth quarter, reflecting the slowing U.S. economy and the impact of the past appreciation of the Canadian dollar. Overall, the Canadian economy remained above its production capacity at year-end. Core and total CPI inflation at 1.4 per cent and 2.2 per cent, respectively, in January u have also been consistent with the Bank's expectations.


At the same time, there are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected in January. This stems from further weakening in the residential housing market, which is adversely affecting other sectors of the U.S. economy and contributing to further tightening in credit conditions. The deterioration in economic and financial conditions in the United States can be expected to have significant spillover effects on the global economy. These developments suggest that important downside risks to Canada's economic outlook that were identified in the MPRU are materializing and, in some respects, intensifying.


The Bank now judges that the balance of risks around its January projection for inflation has clearly shifted to the downside, and, as a result, the Bank is lowering the target for the overnight rate. Further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to achieve the two per cent inflation target over the medium term.

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Mark



A. Mark Argentino
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Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

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Bank of Canada Slashes Prime Interest Rate 1/2 point!


Canada Cuts Rate a Half Point, Signals More `Stimulus' Needed

March 4 -- The Bank of Canada cut its benchmark interest rate a half point, the first such move since 2001, and signalled it will have to act again to offset a slump in exports to the U.S.


Mark Carney, in his first decision as governor, cut the target rate for overnight loans between commercial banks to 3.5 percent, the lowest since March 2006. Thirteen of 26 economists surveyed by Bloomberg News predicted the move.


``Further monetary stimulus is likely to be required in the near term,'' the central bank said today in a statement from Ottawa. Signs of economic slowdown in Canada are ``materializing and, in some respects, intensifying.''


Tumbling exports to the U.S. will limit 2008 economic growth to a seven-year low of 1.8 percent, the central bank says, and have erased the country's broad trade surplus for the first time since 1999. The bigger rate cut today also helps catch up with moves this year by the U.S. Federal Reserve, and may slow the Canadian dollar's advance that has battered manufacturers.


``There are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected,'' which will have ``significant spill over effects on the global economy,'' the Bank of Canada said today.


Canada's decision comes two days before meetings of the Bank of England, and the European Central Bank, where economists predict policy makers will keep rates unchanged.


``With further rate cuts clearly needed to insure against the downside risks from a rapidly softening U.S. economy, and since monetary policy acts with a lag, we see no reason for the Bank of Canada to wait,'' Jacqui Douglas, economics strategist at TD Securities in Toronto, said before the decision.


Fed Moves


The Fed is expected to cut borrowing costs again on March 18. Canada's benchmark is now half a point greater than that of the U.S., narrowing what was the biggest gap since June 2004. That premium has helped keep Canada's currency close to a record high.


The currency rose to a record 90.58 Canadian cents per U.S. dollar on Nov. 7 and has gained 26 percent in three years.


Canada sends about three-quarters of its exports to the U.S., making the two countries the world's biggest trading partners, and the high dollar makes those goods less competitive. The U.S. economic woes have sapped demand for Canadian lumber and automobiles, two of the five biggest exports.


Finance Minister Jim Flaherty said Feb. 15 he's ``worried'' about the economy in Ontario, the country's biggest province and factory hub, the same day a report showed automobile production plunged 25 percent in December -- the most since 1996.


Room for Cuts


The high currency also gives Carney room for a bigger rate cut, by making imports cheaper and holding inflation close to his 2 percent target. Excluding volatile items such as fresh fruit, inflation slowed to 1.4 percent in January, the least since July 2005. Policy makers focus on the so-called core rate as a guide to future trends, and its moderation suggests inflation may slow from January's 2.2 percent pace.


``The balance of risks around'' the Bank of Canada's January projection for inflation ``has clearly shifted to the downside,'' the central bank said today. The bank's January economic forecast predicted core inflation of 1.4 percent in the first quarter.


There are still signs that consumer prices might pick up again. Canada's jobless rate is at a 33-year low, wages are rising at the fastest pace in a decade, and companies are earning record profits.


See current Interest Rates


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Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

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Monday, March 03, 2008

Current mortgage interest rates on the market

Here are today's 'best' rates, let's see if they drop next week after the Bank of Canada meets and sets the new prime rate on March 4th, 2008
Terms
Posted
Rates
Discounted
Rates
1 YEAR7.25%5.20%
2 YEARS7.30%5.99%
3 YEARS7.30%5.89%
4 YEARS7.19%5.89%
5 YEARS7.29%5.79%
7 YEARS7.70%6.15%
10 YEARS8.05%6.25%

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Mark

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P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

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How to Get An Extra Hour Out Of Every Day for the Rest of Your Life!

How to Get An Extra Hour Out Of Every Day for the Rest of Your Life!
How can you get an extra hour from each day? This is a basic challenge for all of us.

We've come up with many practical ways to secure one more precious hour from each day. (Remember that each of these tips is probably adaptable to your particular situation.) Here they are...

1. Make up and follow a detailed, daily schedule.

2. Get up earlier.

3. Do less passive reading, TV watching and the like.

4. Avoid allowing others to waste your time.

5. If you commute to work, use the time to study or plan.

6. Organize your work; do it systematically.

7. Make creative use of lunchtime.

8. Delegate authority if possible.

9. Spend less time on unimportant phone calls.

10. Think first; then do the job.

11. Do instead of dream.

12. Work hardest when you're mentally most alert.

13. Eliminate activities which make little contribution to the best results for your life.

14. Always do the toughest jobs first.

15. Before each major act, ask: Is this REALLY necessary?

16. Choose interesting and constructive literature for spare-moment reading.

17. Learn how to sleep. Sleep soundly, then work refreshed.

18. Skip desserts.

19. Stop smoking.

20. Write notes or letters while waiting for others.

21. Always carry an envelope with paper in it, stamps and a few postcards.

22. Combine tasks which are done in the same area.

23. Be prompt for all appointments.

24. Lay out your clothes the night before.

25. Relax. Ready yourself for the important jobs in life.

26. Concentrate on the specific task you're doing.

27. Make constructive use of those five- or ten-minute waiting periods. Carry with you magazine article clippings on helpful subjects.

28. Always carry a pencil and paper to capture important-to-you ideas.

29. Learn to do other "unnecessary things" while watching TV or listening to the radio.

30. Call on specialists to accomplish work you cannot do efficiently.

31. Learn to read more rapidly.

32. Nap an hour after dinner. Then take a shower. Begin the evening hours relaxed and refreshed.

33. Avoid making a "production" out of small tasks.

34. Avoid interruptions.

35. Tackle only one job at a time.

36. Search out job short-cuts.

37. Know your limitations.

38। Work to your top capacity.





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Mark





A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
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FAX 905-828-2829 ÈCELL 416-520-1577
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More Tips on Winter Saving Energy and Money at Home during the Cold months

Tips on Saving Energy and Money at Home

Did you know that the average family spends close to $1300 a year on their home's utility bills? Unfortunately, a large portion of that energy is wasted. By using a few inexpensive energy efficient measures, you can reduce your energy bills by 10% to 50% and, at the same time, help reduce air pollution.

The key to achieving these savings is a whole-house energy efficiency plan. To take a whole-house approach, view your home as an energy system with interdependent parts. For example, your heating system is not just a furnace, it's a heat delivery system that starts at the furnace and delivers heat throughout your home using a network of ducts. You may have a top-of-the-line, energy efficient furnace, but if the ducts leak and are uninsulated, and your walls, attic, windows, and doors are un-insulated, your energy bills will remain high. Taking a whole-house approach to saving energy ensures that dollars you invest in energy efficiency are wisely spent.

This information shows you how easy it is to reduce your home energy use. It is a guide to easy, practical solutions for saving energy throughout your home, from the insulating system that surrounds it to the appliances and lights inside. These valuable tips will save you energy and money and, in many cases, help the environment by reducing pollution and conserving our natural resources.

The first step to taking a whole-house energy efficiency approach is to find out which parts of your house use the most energy. A home energy audit will show you where these are and suggest the most effective measures for reducing your energy costs. You can conduct a simple home energy audit yourself, you can contact your local utility, or you can call an independent energy auditor for a more comprehensive examination.

Energy Auditing Tips

  • Check the level of insulation in your exterior and basement walls, ceilings, attic, floors, and crawl spaces.
  • Check for holes or cracks around your walls, ceilings, windows, doors, light and plumbing fixtures, switches, and electrical outlets that can leak air into or out of your home.
  • Check for open fireplace dampers.
  • Make sure your appliances and heating and cooling systems are properly maintained.
  • Study your family's lighting needs and use patterns, paying special attention to high-use areas such as the living room, kitchen, and exterior lighting. Look for ways to use daylight, reduce the time the lights are on, and replace incandescent bulbs and fixtures with compact fluorescent lamps or standard fluorescent lamps.

Formulating Your Plan

After you have identified places where your home is losing energy, assign priorities to your energy needs by asking yourself a few important questions:

How much money do you spend on energy?
Where are your greatest energy losses?
How long will it take for an investment in energy efficiency to pay for itself in energy savings?
Can you do the job yourself, or will you need to hire a contractor?
What is your budget and how much time do you have to spend on maintenance and repair?

Once you assign priorities to your energy needs, you can form a whole-house efficiency plan. Your plan will provide you with a strategy for making smart purchases and home improvements that maximize energy efficiency and save the most money.

Another option is to get the advice of a professional. Many utilities conduct energy audits for free or for a nominal charge. For a fee, a professional contractor will analyze how your home's energy systems work together as a system and compare the analysis against your utility bills. He or she will use a variety of equipment such as blower doors, infrared cameras, and surface thermometers to find inefficiencies that cannot be detected by a visual inspection. Finally, they will give you a list of recommendations for cost effective energy improvements and enhanced comfort and safety.

Insulation

Checking your home's insulating system is one of the fastest and most cost efficient ways to use a whole-house approach to reduce energy waste and maximize your energy dollars. A good insulating system includes a combination of products and construction techniques that provide a home with thermal performance, protect it against air infiltration, and control moisture. You can increase the comfort of your home while reducing your heating and cooling needs by up to 30% by investing just a few hundred dollars in proper insulation and weatherization products.

Insulation Tips

  • Consider factors such as your climate, building design, and budget when selecting insulation R-value for your home.
  • Use higher density insulation, such as rigid foam boards, in cathedral ceilings and on exterior walls.
  • Ventilation plays a large role in providing moisture control and reducing summer cooling bills. Install attic vents to help make sure that there is one inch of ventilation space between the insulation and roof shingles. Attic vents can be installed along the entire ceiling cavity to help ensure proper airflow from the soffit to the attic, helping to make a home more comfortable and energy efficient.
  • Do not block vents with insulation, and keep insulation at least 3 inches away from recessed lighting fixtures or other heat producing equipment unless it is marked "I.C." - designed for direct insulation contact.
  • The easiest and most cost effective way to insulate your home is to add insulation in the attic. To find out if you have enough attic insulation, measure the thickness of insulation. If there is less than R-19 (6 inches of fiber glass or rock wool or 5 inches of cellulose) you could probably benefit by adding more. Most homes should have between R-19 and R-49 insulation in the attic.
  • If your attic has ample insulation and your home still feels drafty and cold in the winter or too warm in the summer, chances are you need to add insulation to the exterior walls as well. This is a more expensive measure that usually requires a contractor, but it may be worth the cost if you live in a very hot or cold climate.

Weatherization

Warm air leaking into your home during the summer and out of your home during the winter can waste a substantial portion of your energy dollars. One of the quickest dollar-saving tasks you can do is caulk, seal, and weather strip all seams, cracks, and openings to the outside. You can save 10% or more on your energy bill by reducing the air leaks in your home.

Sources of Air Leaks in Your Home

1. Dropped Ceiling9. Chimney penetration
2. Recessed light10. Warm air register
3. Attic entrance11. Window sashes & frames
4. Electric wires & box12. Baseboards, coves, interior trim
5. Plumbing utilities & penetration 13. Plumbing access panel
6. Water & furnace flues14. Electrical outlets & switches
7. All ducts15. Light fixtures
8. Door sashes & frames

Heating and Cooling

Heating and cooling your home uses more energy and drains more energy dollars than any other system in your home. No matter what kind of heating, ventilation, and air conditioning system you have in your house, you can save money and increase comfort by properly maintaining and upgrading your equipment. By combining proper equipment maintenance and upgrades with appropriate insulation, weatherization, and thermostat settings, you can cut your energy bills and your pollution output in half.

Heating Tips

  • Set your thermostat as low as is comfortable.
  • Clean or replace filters on furnaces once a month or as needed.
  • Clean warm air registers, baseboard heaters, and radiators as needed; make sure they're not blocked by furniture, carpeting, or drapes.
  • Bleed trapped air from hot water radiators once or twice a season; if in doubt about how to perform this task, call a professional.
  • Place heat resistant radiator reflectors between exterior walls and the radiators.
  • Use kitchen, bath, and other ventilating fans wisely; in just 1 hour, these fans can pull out a houseful of warmed or cooled air. Turn fans off as soon as they have done the job.
  • Keep draperies and shades open on south facing windows during the heating season to allow sunlight to enter your home; close them at night to reduce the chill you may feel from cold windows.
  • Close an unoccupied room that is isolated from the rest of the house, such as in a corner, and turn down the thermostat or turn off the heating for that room or zone. However, do not turn the heating off if it adversely affects the rest of your system. For example, if you heat your house with a heat pump, do not close the vents - closing the vents could harm the heat pump.
  • Select energy efficient equipment when you buy new heating equipment. Your contractor should be able to give you energy fact sheets for different types, models, and designs to help you compare energy usage.

Heat Pumps

Heat pumps are the most efficient form of electric heating in moderate climates, providing three times more heating than the equivalent amount of energy they consume in electricity. There are three types of heat pumps: air-to-air, water source, and ground source. They collect heat from the air, water, or ground outside your home and concentrate it for use inside. Heat pumps do double duty as a central air conditioner. They can also cool your home by collecting the heat inside your house and effectively pumping it outside. A heat pump can trim the amount of electricity you use for heating as much as 30% to 40%.

Heat Pump Tips
  • Do not set back the heat pump's thermostat manually if it causes the electric resistance heating to come on. This type of heating, which is often used as a backup to the heat pump, is more expensive.
  • Clean or change filters once a month or as needed, and maintain the system according to manufacturer's instructions.

Solar Heating

Using the sun to heat your home through passive solar design can be both environmentally friendly and cost effective. In many cases, you can cut your heating costs by more than 50% compared to the cost of heating the same house that does not include passive solar design. Passive solar design techniques include placing larger, insulated windows on south facing walls and locating thermal mass, such as a concrete slab floor or a heat absorbing wall, close to the windows. However, a passive solar house requires careful design, best done by an architect for new construction or major remodeling.

Solar Tips
  • Keep all south facing glass clean.
  • Make sure that objects do not block the sunlight shining on concrete slab floors or heat-absorbing walls.
  • Consider using insulating curtains to reduce excessive heat loss from large windows at night.

Fireplaces

When you cozy up next to a crackling fire on a cold winter day, you probably don't realize that your fireplace is one of the most inefficient heat sources you can possibly use. It literally sends your energy dollars right up the chimney along with volumes of warm air. A roaring fire can exhaust as much as 24,000 cubic feet of air per hour to the outside, which must be replaced by cold air coming into the house from the outside. Your heating system must warm up this air, which is then exhausted through your chimney. If you use your conventional fireplace while your central heating system is on, these tips can help reduce energy losses.

Fireplace Tips
  • If you never use your fireplace, plug and seal the chimney flue.
  • Keep your fireplace damper closed unless a fire is going. Keeping the damper open is like keeping a 48-inch window wide open during the winter; it allows warm air to go right up the chimney.
  • When you use the fireplace, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window slightly, approximately 1 inch, and close doors leading into the room. Lower the thermostat setting to between 50 and 55F.
  • Install tempered glass doors and a heat air exchange system that blows warmed air back into the room.
  • Check the seal on the flue damper and make it as snug as possible.
  • Add caulking around the fireplace hearth.
  • Use grates made of C-shaped metal tubes to draw cool room air into the fireplace and circulate warm air back into the room.

Air Conditioners

It might surprise you to know that buying a bigger room air conditioning unit won't necessarily make you feel more comfortable during the hot summer months. In fact, a room air conditioner that's too big for the area it is supposed to cool will perform less efficiently and less effectively than a smaller, properly sized unit. This is because room units work better if they run for relatively long periods of time than if they are continually, switching off and on. Longer run times allow air conditioners to maintain a more constant room temperature. Running longer also allows them to remove a larger amount of moisture from the air, which lowers humidity and, more importantly, makes you feel more comfortable.

Sizing is equally important for central air conditioning systems, which need to be sized by professionals. If you have a central air system in your home, set the fan to shut off at the same time as the cooling unit (compressor). In other words, don't use the system's central fan to provide circulation, but instead use circulating fans in individual rooms.

Cooling Tips

  • Whole-house fans help cool your home by pulling cool air through the house and exhausting warm air through the attic. They are effective when operated at night and when the outside air is cooler than the inside.
  • Set your thermostat as high as comfortably possible in the summer. The less difference between the indoor and outdoor temperatures, the lower your overall cooling bill will be.
  • Don't set your thermostat at a colder setting than normal when you turn on your air conditioner. It will not cool your home any faster and could result in excessive cooling and, therefore, unnecessary expense.
  • Set the fan speed on high except in very humid weather. When it's humid, set the fan speed on low. You'll get better cooling, and slower air movement through the cooling equipment allows it to remove more moisture from the air, resulting in greater comfort.
  • Consider using an interior fan in conjunction with your window air conditioner to spread the cooled air more effectively through your home without greatly increasing your power use.
  • Don't place lamps or TV sets near your air-conditioning thermostat. The thermostat senses heat from these appliances, which can cause the air conditioner to run longer than necessary.
  • Plant trees or shrubs to shade air conditioning units but not to block the airflow. A unit operating in the shade uses as much as 10% less electricity than the same one operating in the sun.

Programmable Thermostats

You can save as much as 10% a year on your heating and cooling bills by simply turning your thermostat back 10% to 15% for 8 hours. You can do this automatically without sacrificing comfort by installing an automatic setback or programmable thermostat.

Using a programmable thermostat, you can adjust the times you turn on the heating or air-conditioning according to a pre-set schedule. As a result, you don't operate the equipment as much when you are asleep or when the house or part of the house is not occupied. (These thermostats are not meant to be used with heat pumps.) Programmable thermostats can store and repeat multiple daily settings (six or more temperature settings a day) that you can manually override without affecting the rest of the daily or weekly program

Ducts

Your home's duct system is one of the most important systems in your home, and may be wasting a lot of your energy dollars. It is a branching network of tubes in the walls, floors, and ceilings, carries the air from your home's furnace and central air conditioner to each room.

Unfortunately, many duct systems are poorly insulated or not insulated properly. Ducts that leak heated air into unheated spaces can add hundreds of dollars a year to your heating and cooling bills. Insulating ducts that are in unconditioned spaces is usually very cost effective. If you are buying a new duct system, consider one that comes with insulation already installed.

Sealing your ducts to prevent leaks is even more important if the ducts are located in an unconditioned area such as an attic or vented crawl space. If the supply ducts are leaking, heated or cooled air can be forced out unsealed joints and lost.

Although minor duct repairs are easy to accomplish, ducts in unconditioned spaces should be sealed and insulated by qualified professionals using the appropriate sealing materials. Here are a few simple tips to help with minor duct repairs.

Duct Tips
  • Check your ducts for air leaks. First look for sections that should be joined but have separated and then look for obvious holes.
  • If you use duct tape to repair and seal your ducts, look for tape with the Underwriters Laboratories (UL) logo to avoid tape that degrades, cracks, and loses its bond with age.
  • Remember that insulating ducts in the basement will make the basement colder. If both the ducts and the basement walls are un-insulated, consider insulating the basement walls and the ducts.
  • If your basement has been converted to a living area, install both supply and return registers in the basement rooms.
  • Be sure a well-sealed vapor barrier exists on the outside of the insulation on cooling ducts to prevent moisture build up.
  • Get a professional to help you insulate and repair all ducts.

Water Heating

Water heating is the third largest energy expense in your home. It typically accounts for about 14% of your utility bill.

There are four ways to cut your water heating bills: use less hot water, turn down the thermostat on your water heater, insulate your water heater, and buy a new, more efficient water heater. A family of four, each showering for 5 minutes a day, uses 700 gallons of water a week; this is enough for a 3-year supply of drinking water for one person. You can cut that amount in half simply by using low-flow showerheads and faucets.

Water Heating Tips
  • Repair leaky faucets promptly; a leaky faucet wastes gallons of water in a short period.
  • Insulate your electric hot water storage tank and pipes, but be careful not to cover the thermostat.
  • Insulate your gas or oil hot water storage tank and pipes, but be careful not to cover the water heater's floor, top, thermostat, or burner compartment; when in doubt, get professional help.
  • Install aerators in faucets and low flow showerheads.
  • Buy a new water heater with a thick, insulating shell; while it may cost more initially than one without insulation, the energy savings will continue during the lifetime of the appliance.
  • Although most water heaters last 10-15 years, it's best to start shopping for a new one if yours is more than 7 years old. Doing some research before your heater fails will enable you to select one that most appropriately meets your needs.
  • Lower the thermostat on your water heater; water heaters at a setting of 115°F provide comfortable hot water for most uses.

Water Heater

  • Insulate your water heater to save energy and money.
  • Drain a quart of water from your water tank every 3 months to remove sediment that impedes heat transfer and lowers the efficiency of your heater.
  • Take more showers than baths. Bathing uses the most hot water in the average household. You use 15­25 gallons of hot water for a bath, but less than 10 gallons during a 5-minute shower.
  • If you heat with electricity and live in a warm and sunny climate, consider installing a solar water heater. The solar units are environmentally friendly and can now be installed on your roof to blend with the architecture of your house.
Solar Water Heaters

If you heat with electricity and you have an non-shaded, south-facing location (such as a roof) on your property, consider installing a solar water heater. Solar water heating systems are also good for the environment. Solar water heaters avoid the harmful greenhouse gas emissions associated with electricity production. During a 20 year period, one solar water heater can avoid over 50 tons of carbon dioxide emissions.

Windows

Windows can be one of your home's most attractive features. Windows provide views, daylight, ventilation, and solar heating in the winter. Unfortunately, they can also account for 10% to 25% of your heating bill. During the summer, sunny windows make your air conditioner work two to three times harder. If you live in the Sun Belt, look into new solar control spectrally selective windows, which can cut the cooling load by more than half.

If your home has single pane windows, as almost half of homes do, consider replacing them. New double pane windows with high performance glass (e.g., low-e or spectrally selective) are available on the market. In colder climates, select windows that are gas filled with low emissivity ( low-e) coatings on the glass to reduce heat loss. In warmer climates, select windows with spectrally selective coatings to reduce heat gain. If you are building a new home, you can offset some of the cost of installing more efficient windows because doing so allows you to buy smaller, less expensive heating and cooling equipment.

Cold-Climate Window Tips
  • Install exterior or interior storm windows; storm windows can reduce your heat loss through the windows by 25% to 50%. Storm windows should have weather stripping at all moveable joints; be made of strong, durable materials; and have interlocking or overlapping joints. Low-e storm windows save even more energy.
  • Install tight fitting, insulating window shades on windows that feel drafty after weatherizing.
  • Close your curtains and shades at night; open them during the day.
  • Keep windows on the south side of your house clean to maximize solar gain.
Warm-Climate Window Tips
  • Install white window shades, drapes, or blinds to reflect heat away from the house.
  • Close curtains on south and west facing windows.
  • Install awnings on south and west facing windows.
  • Apply sun control or other reflective films on south-facing windows to reduce solar gain.

Landscaping

Landscaping is a natural and beautiful way to keep your home more comfortable and reduce your energy bills. In addition to adding aesthetic value and environmental quality to your home, a well placed tree, shrub, or vine can deliver effective shade, act as a windbreak, and reduce overall energy bills.

Carefully positioned trees can save up to 25% of a typical household's energy for heating and cooling. Properly placed trees around the house, can save an average household between $100 and $250 in heating and cooling energy costs annually.

During the summer months, the most effective way to keep your home cool is to prevent the heat from building up in the first place. A primary source of heat buildup is sunlight absorbed by your home's roof, walls, and windows. Dark colored home exteriors absorb 70% to 90% of the radiant energy from the sun that strikes the home's surfaces. Some of this absorbed energy is then transferred into your home by way of conduction, resulting in heat gain inside the house. In contrast, light colored surfaces effectively reflect most of the heat away from your home. Landscaping can also help block and absorb the sun's energy to help decrease heat build up in your home by providing shade and evaporative cooling.

Lighting

Increasing your lighting efficiency is one of the fastest ways to decrease your energy bills. If you replace 25% of your lights in high use areas with fluorescents, you can save about 50% of your lighting energy bill.

Indoor Lighting

Use linear fluorescent and energy efficient compact fluorescent lamps (CFLs) in fixtures throughout your home to provide high quality and high efficiency lighting. Fluorescent lamps are much more efficient than incandescent bulbs and last 6 to 10 times longer.

Indoor Lighting Tips
  • Turn off the lights in any room you're not using, or consider installing timers, photo cells, or occupancy sensors to reduce the amount of time your lights are on.
  • Use task lighting; instead of brightly lighting an entire room, focus the light where you need it. For example, use fluorescent under cabinet lighting for kitchen sinks and countertops under cabinets.
  • Consider three way lamps; they make it easier to keep lighting levels low when brighter light is not necessary.
  • Use 4-foot fluorescent fixtures with reflective backing and electronic ballasts for your workroom, garage, and laundry areas.
  • Consider using 4 watt mini fluorescent or electro luminescent night lights. Both lights are much more efficient than their incandescent counterparts. The luminescent lights are cool to the touch.
  • Use CFLs in all the portable table and floor lamps in your home.
  • For spot lighting, consider CFLs with reflectors. The lamps range in wattage from 13 watt to 32 watt and provide a very directed light using a reflector and lens system.
  • Take advantage of daylight by using light colored, loose weave curtains on your windows to allow daylight to penetrate the room while preserving privacy. Also, decorate with lighter colors that reflect daylight.

Outdoor Lighting

Many homeowners use outdoor lighting for decoration and security. When shopping for outdoor lights, you will find a variety of products, from low-voltage pathway lighting to high sodium motion detector floodlights. Some stores also carry lights powered by small photovoltaic (PV) modules that convert sunlight directly into electricity; consider PV-powered lights for areas that are not close to an existing power supply line.

Outdoor Lighting Tips
  • Use outdoor lights with a photocell unit or a timer so they will turn off during the day.
  • Turn off decorative outdoor gas lamps; just eight gas lamps burning year round use as much natural gas as it takes to heat an average size home during an entire winter.
  • Exterior lighting is one of the best places to use CFLs because of their long life. If you live in a cold climate, be sure to buy a lamp with a cold-weather ballast.

Appliances

Appliances account for about 20% of your household's energy consumption, with refrigerators and clothes dryers at the top of the consumption list.

When you're shopping for appliances, you can think of two price tags. The first one covers the purchase price - think of it as a down payment. The second price tag is the cost of operating the appliance during its lifetime. You'll be paying on that second price tag every month with your utility bill for the next 10 to 20 years, depending on the appliance. Refrigerators last an average of 20 years; room air conditioners and dishwashers, about 10 years each; clothes washers, about 14 years.

Dishwashers

Most of the energy used by a dishwasher is for water heating. The Energy Guide label estimates how much power is needed per year to run the appliance and to heat the water based on the yearly cost of gas and electric water heating.

Dishwasher Tips
  • Check the manual that came with your dishwasher for the manufacturer's recommendations on water temperature; many have internal heating elements that allow you to set the water heater to a lower temperature.
  • Scrape, don't rinse, off large food pieces and bones. Soaking or prewashing is generally only recommended in cases of burned on or dried on food.
  • Be sure your dishwasher is full, but not overloaded.
  • Don't use the "rinse hold" on your machine for just a few soiled dishes. It uses 3 to 7 gallons of hot water each time you use it.
  • Let your dishes air dry; if you don't have an automatic air dry switch, turn off the control knob after the final rinse and prop the door open a little so the dishes will dry faster.
  • Remember that dishwashers use less water than washing dishes by hand, about 6 gallons less per load; dishwashers also use hotter water than you would use if you were washing the dishes by hand, so they can do a better job of killing germs.

Refrigerators

Refrigerator Choices

Refrigerators with the freezer on top are more efficient than those with freezers on the side.

The Energy Guide label on new refrigerators will tell you how much electricity in kilowatt hours (kWh) a particular model uses in one year. The smaller the number, the less energy the refrigerator uses and the less it will cost you to operate.

Refrigerator/Freezer Energy Tips
  • Look for a refrigerator with automatic moisture control. Models with this feature have been engineered to prevent moisture accumulation on the cabinet exterior without the addition of a heater. This is not the same thing as an "anti sweat" heater. Models with an anti-sweat heater will consume 5% to 10% more energy than models without this feature.
  • Don't keep your refrigerator or freezer too cold. Recommended temperatures are 37° to 40°F for the fresh food compartment of the refrigerator and 5°F for the freezer section. If you have a separate freezer for long term storage, it should be kept at 0°F.
  • To check refrigerator temperature, place an appliance thermometer in a glass of water in the center of the refrigerator. Read it after 24 hours. To check the freezer temperature, place a thermometer between frozen packages. Read it after 24 hours.
  • Regularly defrost manual defrost refrigerators and freezers; frost buildup increases the amount of energy needed to keep the motor running. Don't allow frost to build up more than one quarter of an inch.
  • Make sure your refrigerator door seals are airtight. Test them by closing the door over a piece of paper or a dollar bill so it is half in and half out of the refrigerator. If you can pull the paper or bill out easily, the latch may need adjustment or the seal may need replacing.
  • Cover liquids and wrap foods stored in the refrigerator. Uncovered foods release moisture and make the compressor work harder.
  • Move your refrigerator out from the wall and vacuum its condenser coils once a year unless you have a no clean condenser model. Your refrigerator will run for shorter periods with clean coils.

Other Energy-Saving Kitchen Tips

  • Be sure to place the faucet lever on the kitchen sink in the cold position when using small amounts of water; placing the lever in the hot position uses energy to heat the water even though it never reaches the faucet.
  • If you need to purchase a gas oven or range, look for one with an automatic, electric ignition system. An electric ignition saves gas - typically 41% in the oven and 53% on the top burners - because a pilot light is not burning continuously.
  • In gas appliances, look for blue flames; yellow flames indicate the gas is burning inefficiently and an adjustment may be needed.
  • Keep range top burners and reflectors clean; they will reflect the heat better, and you will save energy.
  • Use a covered kettle or pan to boil water; it's faster and it uses less energy.
  • Match the size of the pan to the heating element.
  • If you cook with electricity, turn the stovetop burners off several minutes before the allotted cooking time. The heating element will stay hot long enough to finish the cooking without using more electricity. The same principle applies to oven cooking.
  • Use small electric pans or toaster ovens for small meals rather than your large stove or oven. A toaster oven uses a third to half as much energy as a full-sized oven.
  • Use pressure cookers and microwave ovens whenever it is convenient to do so. They can save energy by significantly reducing cooking time.

Laundry

About 80% to 85% of the energy used for washing clothes is for heating the water. There are two ways to reduce the amount of energy used for washing clothes - use less water and use cooler water. Unless you're dealing with oily stains, the warm or cold water setting on your machine will generally do a good job of cleaning your clothes. Switching your temperature setting from hot to warm can cut a load's energy use in half.

When shopping for a new washer, look for a front loading (horizontal-axis) machine. This machine may cost more to buy but uses about a third of the energy and less water than a top loading machine. With a front loader, you'll also save more on clothes drying, because they remove more water from your clothes during the spin cycle.

When shopping for a new clothes dryer, look for one with a moisture sensor that automatically shuts off the machine when your clothes are dry. Not only will this save energy, it will save wear and tear on your clothes caused by over drying. Keep in mind that gas dryers are less expensive to operate than electric dryers. The cost of drying a typical load of laundry in an electric dryer is 30 to 40 cents compared to 15 to 25 cents in a gas dryer.

Laundry Tips

  • Wash your clothes in cold water using cold water detergents whenever possible.
  • Wash and dry full loads. If you are washing a small load, use the appropriate water-level setting.
  • Dry towels and heavier cottons in a separate load from lighter weight clothes.
  • Don't over dry your clothes. If your machine has a moisture sensor, use it.
  • Clean the lint filter in the dryer after every load to improve air circulation.
  • Use the cool down cycle to allow the clothes to finish drying with the residual heat in the dryer

Read more energy tips at my site, http://www.mississauga4sale.com/newsletter/energy_saving_tips.htm

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

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Negative consequences of 40 year mortgages - I agree with this post

40 year mortgages did improve affordability for many first time buyers but there are negative consequences with these very long term mortgages
40 year mortgages also increased the amount that move-up buyers could afford. On the other hand, I agree with the article below that 40 year mortgages spell trouble for people who can't handle the huge debt load.

New mortgage products spell trouble

Ms. Vaz-Oxlade's advice: "If you can't afford a downpayment, don't buy."
'When I see this kind of unrealistic optimism ... it makes me scared for people,' says Gail Vaz-Oxlade.
Offering 40-year mortgages and no-money-down options to people who don't know how to budget 'is like taking a child into a candy store and telling them to eat anything they want,' one adviser tells Linda Mondoux.

If it were up to Gail Vaz-Oxlade, host of HGTV's popular Til Debt Do Us Part reality show on ordinary Canadians trying to dig themselves out of financial messes, no-money-down mortgages would be against the law.

And so would 40-year amortizations. And lines of credit wouldn't be handed to first-time homebuyers to finance their closing costs.

While these new mortgage products are being touted by lenders as great opportunities for young buyers to get on the property ladder, Ms. Vaz-Oxlade sees them as "nothing but trouble."

"What I am seeing in the real world is tremendous financial ignorance," she says, her voice booming over the telephone from her home near Cobourg. "They have no concept of the long-term cost of borrowing. They only focus on the payment -- the lowest possible payment, not accelerated payments.

"The problem with 40-year mortgages and no-money down is it doesn't prepare you to be a homeowner," she says. "Any fool can do that (get a high-ratio mortgage). But not everyone can be a homeowner."

Ms. Vaz-Oxlade chides the big banks for joining other lenders in adopting programs that she says have loosened the rules for mortgages and credit, "creating conditions right for default.

"It's almost as if we have rinsed our minds of 1990, when there was a correction in the real estate market," she says. "All markets have a cycle. When I see this kind of unrealistic optimism, that nothing bad will happen, it makes me scared for people."

The author of several books on consumer finances, Ms. Vaz-Oxlade accuses the banks of giving in by using a formula for credit scoring for mortgage purposes that is in conflict with sound lending practices.

The Certified General Accountants Association of Canada agrees that too much choice may be a bad thing.

"While lending institutions afford a beneficial service to society and its constituents, the risk tolerances of those institutions should not be exercised as a substitute for the judgment of individuals who must discern between good and bad credit," it says in an October report titled Where Does the Money Go: The Increasing Reliance on Household Debt in Canada.

The report points out that Canada's household consumer debt reached the $1-trillion mark in 2006 and has been climbing since, a trend Ms. Vaz-Oxlade's show and her website at www.gailvazoxlade.com try to reverse.

But it's not easy. An upcoming episode will feature homeowners whose monthly mortgage payments are financed from a line of credit.

"They're the perfect example of someone who is not ready for home ownership," she says. "Shame on the financial institutions for giving them a mortgage and a line of credit."

Ms. Vaz-Oxlade says offering 40-year mortgages and no-money-down options to people who don't know how to budget is "like taking a child into a candy store and telling them to eat anything they want. We're not educating them about the consequences."

But Mary Ellen Brown, director of home equity financing at the Royal Bank of Canada, defends her bank's decision to offer no-money-down, 40-year mortgages as "a good choice for some clients."

Those products, she says, are the result of a recognition by the financial industry that the cost of homes in Canada is going up, and more people want to own their homes. "It's still more attractive than renting," she says, adding that if things worked the way Ms. Vaz-Oxlade wanted, many people would be "missing an opportunity to build equity and real wealth."

Ms. Brown says the banks have not loosened their credit standards, "because you still need the capacity to repay." The checks and balances at RBC, she says, would deny a mortgage if there was a history of bad credit.

"Just because someone has opted for 40 years doesn't mean they have bad credit," she says, adding that RBC doesn't approve longer amortization mortgages without first discussing all costs -- such as default insurance premium surcharges -- and options -- such as accelerated payments -- with the borrower.

"It is our duty to make sure a client goes into this with their eyes open," she says, pointing out that the bank's online mortgage calculator is one of the few that shows potential borrowers how much interest they would pay over the life of the mortgage.

Ms. Vaz-Oxlade isn't convinced. Her advice: "If you can't afford a down-payment, don't buy."

- - -

Mortgage Options

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Accelerated weekly

Weekly payment: $315.46

Mortgage balance after 5 years: $171,819.25

Cost over lifetime of mortgage

Total payment: $345,762.93

Total interest: $145,762.93

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Monthly

Monthly payment: $1,261.84

Mortgage balance after 5 years: $179,289.98

Cost over lifetime of mortgage

Total payment: $378,548.84

Total interest: $178,548.84

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Accelerated weekly

Weekly payment: $267.48

Mortgage balance after 5 years: $186,270.32

Cost over lifetime of mortgage

Total payment: $426,831.36

Total interest: $226,831.36

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Monthly

Weekly payment: $1,069.91

Mortgage balance after 5 years: $192,605.48

Cost over lifetime of mortgage

Total payment: $513,547.74

Total interest: $313,547.
http://www.mississauga4sale.com/mortgage-qualifier-payment.htm


http://www.mississauga4sale.com/rates.htm

Read my recommendations on becoming mortgage free sooner

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Saturday, March 01, 2008

How can a (CMA) Comparable Market Analysis Help you?

Can a Comparative Market Analysis Help You?

To get the most accurate estimate of how much you should list your property for, your real estate agent can provide you with a Comparative Market Analysis (CMA). A CMA is an informal estimate of market value, based on sales of comparable properties in your area. It generally takes into account various aspects of your home, including size, features and annual costs. Reviewing comparable homes that have sold within the past year, along with the listing or asking price on current homes for sale, should help you determine a fair sale price for your property.

CMAs can include homes that are currently for sale and those which have recently sold. They can cover areas as narrow as one or two streets surrounding your home, or as broad as an entire subdivision.

Most real estate agents will give you a CMA for free, hoping you'll list your home with them. Each CMA contains valuable information on several recent sales, including:

  • How long each property stayed on the market
  • How close the sale price was to the asking price
  • Notes comparing each home to yours, i.e.; number of bedrooms and baths, approximate square footage, sizes of major rooms, amenities such as fireplaces and pools, age of the home, property taxes and more.

The CMA is an informative selling tool, but like any tool, it doesn't work by itself. For this reason, the CMA will always need to be interpreted by a professional or with complete objectivity by the seller or buyer.

Remember, too, that the CMA is also a buying tool; it is considered just as seriously by the buyer and his or her agent. As you and your agent are going to use the CMA to ask the highest possible price for your home, the buyer is going to use it to find reasons to either choose or eliminate your home, and to arrive at the lowest price possible.

Click here for a free CMA

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

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