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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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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• Price Trends



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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
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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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.

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

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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
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Market update Canadian Home Building

Multiples Prop Up Canadian Home Building
The Canadian home building sector warmed up again in January from a winter chill that slowed activity in December. Builders kicked off the New Year by pouring the foundations for 222,700 new housing units (annualized rate), an above-expected level and close to the average over the past year.

However, key details of the report raised some questions, as the entire monthly increase came from the typically volatile multi-unit segment (up 64%). Single-unit starts actually fell 4.8% to their lowest level in more than six years. While this likely reflects an ongoing shift towards multiples in the face of growing land constraints in densely populated areas of the country, it is bound to make starts quite bumpy going forward.

Regionally, gains were registered in Central and Western Canada in January. All provinces in Atlantic Canada posted declines.

The Bottom Line: Combined with strong employment numbers released earlier this morning, this report suggests that economic activity picked up in January after a short end-of-year break in Canada. Even so, housing construction is expected to slow moderately during 2008, which will restrain growth in coming quarters.

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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
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Canada's Housing Market Outlook for 2008

Canada's Housing Market

"What remains the greatest source of weakness in today's U.S. economy is a continued source of strength in Canada," says Warren Lovely of CIBC World Markets in a recent report. "While the U.S. housing market is mired in deep recession, Canada's own housing market has demonstrated extraordinary resilience."

This week the Canadian Real Estate Association (CREA) predicted that national home sales will rise to 8.1 per cent in 2007, setting an all-time sales record. Prices are also expected to go up by a whopping 10.4 per cent in 2007, with another 5.5 per cent increase in 2008.

"Resale housing activity was a juggernaut in the second quarter of 2007," says CREA's chief economist Gregory Klump. "Record breaking sales activity in the first and second quarters forced CREA to revise its forecast upward."

Although you'd expect the trade association to produce a rosy forecast, it's not much different that the latest prediction from the country's federal housing agency, Canada Mortgage and Housing Corp. (CMHC). It's also expecting a new sales record in 2007, an increase of 6.5 per cent compared to 2006. CMHC says prices will increase by 9.9 per cent this year and 5.2 per cent in 2008.

Why is the Canadian housing market still so strong? The economic fundamentals that have carried this housing boom for several years continue to be in place. They include record-high employment rates, rising incomes and strong consumer confidence.

In addition Subprime Mortgage Crisis Not Likely to Spread to Canada and Canadians do not have the same exposure in the subprime mortgage market that has come back to haunt U.S. home buyers.

However, the recent shocks to the stock market may change the Bank of Canada's plans to hike interest rates again in the near future. CMHC says that one, three and five-year posted mortgage rates will be in the 6 to 7, 6.25 to 7.25, and 6.50 to 7.50 per cent ranges respectively for the rest of this year and in 2008.

In analyzing CREA's sales figures for July, Porter says that 17 of the 25 reporting cities posted double-digit sales gains compared to last year. "All cities west of Lake Superior reported double-digit price increases last month, led by the 53.7 per cent sprint in Saskatoon," he says. "However, the price surge is not confined to Western Canada, as Hamilton, Sudbury and Quebec City have also posted double-digit increases. Meanwhile, the previously white-hot Alberta markets are showing some signs of simmering down. Sales in both Calgary
and Edmonton fell, while inventories climbed last month. In particular, while average prices in Edmonton are still up a whopping 38 per cent year-to -year, sales fell 21 per cent and new listings almost doubled. That combination points to a market headed for a correction."

Prices are forecast to increase by 17.4 per cent in Saskatchewan, 11.2 per cent in Manitoba, 9.9 per cent in B.C., 9.2 per cent in Nova Scotia, and 8.6 per cent in Ontario this year.

read more about:

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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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Housing Choices when Selling One home and Buying Another - which to to first?

Housing Choices of Buying Another and Selling One

In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly, here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.

Time it right

Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates aren't going to coincide, a gap rather than two mortgages is the better. It's easier and usually cheaper to find temporary housing than juggle two mortgages.

Selling First

• Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it's generally cheaper than two mortgages.
• Get an appraisal first thing off the bat. That way you'll have a good idea how the sale of your home will effect your purchasing power on the new one. This will help keep you from over extending your mortgage abilities.
• Get pre-approved on a loan for the new home.
• Until most of your contingencies have been met, wait to put an offer on a new house. You don't want to be left holding the bag, or in this case, the house.
• If you're ready to accept an offer on your home, but haven't found the right new home, negotiate a long escrow or a sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.

Buying First
It happens. You're only thinking of buying, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

• Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it's worth a try in any market. You never know what may also work best for the seller of your new home.
• Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
• Take a close look at what price you're going to ask for your home. Make sure it's realistic in the current market.
• When you get an acceptable offer, check the buyer's credit history. You don't want any surprises that are going to delay things. If you've closed on the new home, but haven't sold the old one, consider renting it out, or taking it off the market until the next season (or until the market improves).

Same Market or Across Country

Generally, if you're buying and selling in the same market, you can negotiate closing dates to work for you. But when you're dealing with a cross country move, it's a lot harder. A real estate professional really comes in handy at this point. Legal documents can be faxed or sent via overnight courier and your focus won't be stretched to the limit. You may end up renting one home or the other, or have to consider a bridge loan. But with someone local in the market on your side, it will hopefully be less stressful.

Show Me the Money

Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful, but never more so than during the purchase of a home. Two to three months is the recommended reserve, but if you don't have it, this is where the bridge loan comes in handy. Some lenders are more inclined to make a loan if it's for the purchase of a home. If you're a smart shopper/seller, you'll accept an offer from someone who's flexible about move-in dates. It can save you money in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction

Should you buy or sell first?

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

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
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Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?


The Toronto, Mississauga and GTA condominium market is flourishing, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like prices.

Due to the advantages of home ownership compared to renting your property, many people like you will soon be reaching a point where you want to buy a detached home. However, you may not be sure whether you should actually buy a house or if you should look in to buying a condo instead. This is especially true for younger home buyers who might want the benefits of living in the more communal situation of the condo.

Thus, you have a decision to make. Should you purchase a condo or go for a more traditional detached home or semi or townhouse? You should consider many factors such as your lifestyle and then consider the pros and cons of each choice before deciding which to buy.

Of course you decision is not life long as you can always sell the property and switch, but it's best to consider some major factors before diving into your purchase!

You may wish to purchase a detached home, semi or townhouse when the following items hold true:

You don't mind the occasional maintenance item and actually enjoy spending time and money and investing into your home
You currently have or plan to have a large family.
You are a very private person who does not like living close to your neighbours or having your home choices regulated by an association.
You are investing in home ownership primarily for the purpose of resale of the home in the future (since property values are usually higher than condo values).
You are seeking to purchase a large home and / or you need outdoor grounds areas for things like large pets.
You enjoy maintaining your own yard or garden.
You may live in a rural area or in a location where there are not many condos on the market.


A high-rise condominium may be the better choice for you if:

You are a single individual or a couple or an empty nester that is looking for a small home rather than a large property.
You don't have a lot of money to spend but still want to invest in home ownership.
You are interested in being part of a small community living in the same building or complex.
You are comfortable living in close proximity to your neighbours.
You don't mind having certain aspects of your property ownership regulated by a group of elected people who form the condo association
You live in an urban area where condos are very common, affordable and gives you much choice
You run a busy lifestyle and prefer to enjoy amenities like a pool or a shaded grounds area but aren't able to maintain such amenities yourself either because of the time that it takes or the cost.

A high-rise condominium may be best for single individuals or couples who have neither the money to invest in a house nor the time to maintain the upkeep of the larger home. These tend to be young people enjoy the benefits of apartment style living in close quarters with their neighbours, who are comfortable having some regulation by the home owner's association and who enjoy sharing common areas with others. Often, condo buyers are first time home buyers. If, in contrast, you are an older adult who has (or may soon have) a family and would like the freedom and privacy of a home with its own property, then a house is probably the right choice for you."

There are many items to consider when choosing between a high-rise condo and home purchase. Regardless of whether you buy a house or a high-rise condo, it's important to do your research and consider the future of the neighbourhood you're buying into. Whether it's a condo or home, the old saying of "location, location, location" remains true for either choice. Either choice is a significant investment for you and you need to find a vibrant and safe neighbourhood that will ensure a good return on your real estate purchase and investment into the future.

Read more tips about buying a home

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Here are some Bathroom Renovations you can do on the weekend!

Weekend Bathroom Renovation Projects

(ARA) – When giving someone a tour of your home, do you conveniently skip over the bathroom? If your bathroom is outdated, it might be time for a makeover. Small changes can make a big improvement and can be done on a small budget.

Here are some easy and affordable ideas from Faucet.com:

1) The Faucet
The faucet is the focal point of the entire bathroom and should be one of the main considerations when remodeling. You might also consider replacing the sink to really freshen up the look. Pedestal bathroom sinks and countertop sinks are easy to replace.

2) Bathroom Accessories
Updating the hardware and other bathroom accessories can be a fast and affordable way to give the room an instant facelift. Towel rings, vanity shelves and even drawer handles can all make or date a room.

3) Lighting
Remember, because you use the bathroom for your daily preparations, you want to have adequate lighting. Choose from two, three or four bulb fixtures to adequately light the mirror area.

4) Showerhead
When updating your bathroom, add something you can enjoy. New showerheads can be handheld, adjustable or even massaging.

5) Paint
The walls of bathrooms get abused with steam, hairspray, and perfume. A fresh coat of paint will add a new, clean element that will update any room.

Read about your return on renovations

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
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Home Staging to help sell your home in our GTA marketplace

Home Staging

When selling your home, the first impression is crucial to prospective buyers-it can make or break the sale. Buyers in today's real estate market are smart consumers and lead busy lives. They are looking for a home that is ready to be moved in to. Does your home make a great first impression?

Staging a home for the real estate market is not a statement on your personal decorating style. The way we live in our homes is very different than how we sell our homes.

Get the advantage
When selling your home, the first impression is crucial to prospective buyers-it can make or break the sale. Buyers in today's real estate market are smart consumers and lead busy lives. They are looking for a home that is ready to be moved in to. Does your home make a great first impression?

Staging a home for the real estate market is not a statement on your personal decorating style. The way we live in our homes is very different than how we sell our homes.

About Home Staging
Home staging is different from interior redesign. Home staging strategically arranges and edits your existing furnishings and accessories to showcase your home to potential buyers.

By redesigning an interior and creating exterior curb appeal you will be able to sell your home for more money in less time

By redesigning an interior and creating 'curb appeal' that stands out, you will not only see an increase in the value of the property, but you will also see a shorter time on the market.

It is seen that lot of sellers in Toronto, GTA area as Mississauga, Oakville, Brampton, Oakville are doing home staging for quicker sale at a better price.

Staging is the very best proven way to get top dollar for your home as you prepare it for sale. This is because Staging sets the scene throughout the house to create immediate buyer interest in your property. This will then lead to your home selling for the highest possible price in today's market. Remember, "The way you live in your home, and the way you market and sell your house are two different things."

http://www.mississauga4sale.com/selling-process.htm

Read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns

Financing Hurdles - Self employed, needing a second home, low downpayment

In order to help you when you have financing difficulties, some lenders can offer creative financing in many different situations. Below is one of those lenders. Some lenders feel that they can offer alternatives and help you with their financing, if you need a contact with Scotia, please let me know and I will forward you contact information.

Not everybody is in the same boat.

That's why Scotiabank's mortgages are not all the same.

Down Payment Hurdles

If you haven't been able to save funds for a down payment:

Scotia Free Down Payment Mortgage - Coming up with a 5% down payment isn't always easy, especially with closing costs, moving expenses, and all the other costs associated with buying a home. With this mortgage, Scotiabank pays a 5% down payment for you.

Scotia^® 100% Mortgage Program - This program allows you to borrow the full amount of the property value of the home you want to buy.

Self-Employed

If you're having difficulty getting a mortgage because you are self-employed or a commissioned sales person:

Scotia^® Mortgage for Self-Employed - Scotiabank offers a simplified credit approval process and the ability to select almost any Scotiabank home ownership solution. You can qualify for hassle-free home financing with as little as 5% down.

Second Homes

If you're looking for a second home as a vacation property or a home for a family member:

The Scotia Secondary Home^™ Financing Program offers first mortgage financing secured on all types of Secondary Homes, including Type A and Type B vacation properties.

Or, with the Scotia Total Equity^® Plan, you could use the equity in your principal residence to finance virtually any type of property from a four-season home to something more remote.

Flexibility

If you're looking for savings and flexibility with a variable rate mortgage:

Scotia Flex Value^® Mortgage - Flexibility means greater mortgage value: a low rate less than Scotiabank Prime Rate, low payments, and a guaranteed rate discount when locked into Scotiabank's 5-year fixed rate.

Scotia Ultimate Variable Rate^® Mortgage - All the benefits of lower interest rates with the security of a capped rate and fixed payments for the full 3-year term.

Consistency

If you're looking for consistency in mortgage payments:

Fixed Rate Mortgages - No matter what rates are doing, you can lock in at a rate that makes you comfortable. From 6 months to 10 year terms, all at very competitive rates.

read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

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
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RRSP withdrawal qualifications under the Federal Home Buyers Program (HBP)

Did you know....Home buyers who qualify for a RRSP withdrawal under the Home Buyers Program (HBP):

• have up to 30 days after closing to withdraw funds from their RSP;
• don't need to use all the funds towards the down payment (money can be used for closing costs, home renos etc);
• are allowed a maximum withdrawal of $20,000/ qualified home buyer;
• have 15 years to repay their RSP; & Revenue Canada helps keep accounting straight by providing a statement on the annual Notice of Assessment outlining repayment requirements.
  

Of course, when there is a tax implication, it's always prudent for the client to review the regulations with Revenue Canada.... http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/menu-e.html

Let me know how I can help. The following list are some of the current 'best' mortgage interest rates you can find.

Mortgage Interest Rate Update
February 1st, 2008

Prime Rate .5.75%
Variable Rate .Prime less .60%
1 year closed .5.65%
3 year closed .5.95%
5 year closed .5.84%
7 year closed .5.98%
10 year closed ...6.05%
25 year closed ...7.10%

See the current online Interest Rates

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Pricing your home to sell and the "High Price Tactic"

Pricing your home to sell can be tricky business, lookout for the "high price tactic" from some agents.

Listing a home at too high a price is the biggest mistake home sellers make. A high price will discourage buyers from even looking at a home they might otherwise be able to afford. In addition, realistically priced homes in the same neighbourhood will look better by comparison.

Of course, you don't want to set your sales price too low, either. The idea is to net the most money possible from the home sale. The price you set should reflect what other comparable homes in the area have recently sold for. It should leave some space for making concessions in order to close the deal. And it should take into consideration current trends--whether it's a buyer's or seller's market.

Read about the "High Price Tactic"

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Outlook for Housing Starts Continues to Look good!

The outlook for the housing market continues to be very upbeat for the near term.

Housing Starts:
2007: 227,500
2008: 214,300
Resales:
2007: 521,100
2008: 500,800

Housing starts will remain above the 200,000 unit threshold for a seventh consecutive year in 2008, a feat last accomplished in the 1971-1978 period.

Over the long term it is expected that residential construction will gradually decline as factors that drive housing become less stimulative reaching approximately 198,425 units by 2011. Despite this downward movement, the level of activity will remain well above the average annual level of about 150,000 housing starts observed during the 1990s.

The outlook for Canadian GDP growth remains positive over the medium term. The economy will continue to operate close to its capacity and expand at about 3 per cent from 2008 to 2011.

Employment growth is expected to be constrained over this time frame since a record number of Canadians are presently employed. Employment growth will average 1.3 per cent annually over the 2008 to 2011 period. At this pace, the unemployment rate is expected to creep up toward 6.5 per cent range by 2011.

Inflation will remain modest at about 2 per cent per year over the medium term. As a result, both short and long term interest rates will be fairly stable going forward. Longer term mortgage rates, such as the 5 year fixed rate, will stay low and should increase by 50 to 75 basis points between 2008 and 2011.

Population growth is a key driver of housing demand over the longer term and a major contributor to population growth is immigration. More than 216,000 immigrants arrived in Canada in 2006. Looking ahead, continuing tight labour market conditions will provide an attractive environment that will continue to draw large numbers of immigrants to Canada. As a result, net migration is forecast to rise steadily through 2011.

This rise will boost population growth and household formation, which in turn will support strong levels of housing starts through 2011.

Ontario, Quebec and British Columbia will continue to attract most of the new immigrants settling in Canada.
Source: CMHC Housing Market Outlook Canada Edition 4Q2007

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

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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Mortgage Interest Rate Update after Bank of Canada Prime Rate Drop of .25%

Mortgage Interest Rate Update after Bank of Canada Prime Rate Drop of .25%

Financial markets and interest rates dominated the news yesterday - as you are aware, the Bank of Canada lowered their lending rates by .25% and most banks have lowered the Prime lending rate to 5.75% (from 6%).

Following yesterday's announcement, fixed rate mortgages remain unchanged. Today's best pricing on a variable rate mortgage is 5.15% (Prime less .60%).

The next Bank of Canada rate announcement is scheduled for March 4th and there were strong suggestions yesterday that addiitional rate decreases are likely.

Mortgage Interest Rate Update
January 25th, 2008

Prime Rate .5.75%
Variable Rate Prime less .60%
1 year closed .5.65%
3 year closed .6.00%
5 year closed .5.99%
7 year closed .6.03%*
10 year closed ...6.10%*
25 year closed ...7.10%

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  
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TD/Canada Trust report: Bank of Canads has further rate cuts to come

TD/Canada Trust feels that the Bank of Canads has further rate cuts to come

January 22, 2008

Bank of Canada cuts by 25 basis points

Bank to cut 50bps on March 4th and 25bps on April 22nd

The Bank of Canada cut the overnight rate this morning by a quarter-point to 4.00%. This was broadly in line with market expectations; however speculation was building in the days leading up the meeting that the Bank might be more aggressive given that financial market confidence had been severely undermined by the prospects of a U.S. recession and the possibility of some contagion to the global economy. Speculation of a more aggressive Bank of Canada decision climaxed when the Federal Reserve caught financial markets completely off guard this morning with an inter-meeting cut of 75 basis points. Nevertheless, the Bank stuck to their guns with a more measured approach, reflecting their view that domestic demand on this side of the border is expected to remain strong. However, the Bank made it quite clear in this morning's communication that they are prepared to deliver more rate cuts down the road when they stated that "further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to return inflation to target over the medium term".

We believe the next move on March 4th will be a more aggressive 50 basis point cut. That rate decision will probably not be the result of slumping domestic demand. So far, the domestic side of the Canadian economy appears well grounded. In today's communiqué, the Bank noted that despite tighter credit conditions, strength in domestic demand is expected to remain supported by continued income growth associated with the increase in commodity prices since October, which has led to further gains in our terms of trade." It is also important to remember that unlike their American counterparts, Canadians are not getting hit on both ends of their asset portfolios. Home prices remain on the upswing in most major urban centers, and there is little concern that the Canadian housing market will start to mirror the slump in the U.S. In fact, we believe national home prices will rise at a rate of 5-7% in 2008, compared to a U.S. market that will likely absorb losses of around 5% or more.

However, we believe that by the next meeting, data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown. Given that inflationary pressures remain well in hand, a 50 basis point cut would provide much-needed insurance against the degree to which a U.S. economic downturn would lap onto Canadian shores. Certainly, inflation will not provide a barrier to a more aggressive Bank of Canada. The central bank has indicated that increased competitive pressures in the retail sector and the one percentage point GST cut at the start of the year will cause both core and total CPI inflation to fall below 1.5% by the middle of this year before returning to their 2% target by the end of 2009.

Following the March 4th meeting, there is the potential for another 25 basis point cut. However, given the degree of economic uncertainty on both sides of the border, the extent of additional easing will be highly dependent on how developments in the U.S. unfold and whether financial market confidence remains in question.

Some of the guessing on the Bank's views will be answered on Thursday when they release the update to the Monetary Policy Report (10:30ET). This report will lay out the Bank's downgraded views on Canadian and American economic growth alongside a more detailed assessment of the current economic and financial environment.

Read more about Interest Rates

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

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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RBC reporting Canadian Economy still expanding, but the pace likely to slow

RBC is reporting that the Canadian Economy still expanding, but the pace likely to slow

The economy grew at a 0.2% pace in October and at a 1.4% annualized pace compared to the 2.9% average of the third quarter, setting up for a more moderate quarter for growth following nine months of robust expansion.

Despite the slowdown in job growth in December, Canada's job market pumped out 370,000 new jobs in 2007 and the unemployment rate finished the year near its lowest level in 33 years. The 2007 job increase pushed the number of job created since 2002 above two-million and 82% of those jobs were full-time positions.

Retail activity started the fourth quarter on a firm note, rising 0.1% in October, stronger than market forecasts for a 0.4% decline. The strong labour market and firm wage growth will likely support retail activity as the fourth quarter progresses.

Housing starts slowed to a 187,500 seasonally adjusted annual rate in December from an upwardly revised 233,300 pace in November. Starts were 229,600 in 2007, a 1% gain over 2006. The housing market may cool a bit in 2008 we forecast starts of 210,000 units in the year.

The merchandise trade surplus was larger than expected in November, rising to $3.7 billion. But, with a strong Canadian dollar boosting imports and a sharply slower U.S. economy dampening demand for Canadian exports, we expect the drag coming from the trade sector to be even greater in 2008 than in 2007 and that the economy will grow at a more modest 2.1%.

Canada's core inflation rate moved to its lowest level since April 2006 in November, and held below the 2% target for the second month running. The all-items inflation rate will likely remain above the Bank of Canada's 2% target in the near-term, but continued discounting by Canadian retailers will keep the core rate below the 2% target.

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

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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100% Financing now available on Rental Properties

100% Financing now available on Rental Properties

With the recent changes to CMHC rules, mortgage companies can start the new year offering financing of up to 100% on rental properties with 1-2 units, as it is now available!

This is great news for both real estate agents and investors alike! On rental properties with 3-4 units, 95% financing can be offered to qualified individuals.

Let me know if you have any questions, or if you have any questions about financing investment properties.

Let's have a great 2008!

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

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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How to make money in real estate in the GTA

There is one sure way to make money in real estate in our area of the GTA, buy a property, rent it out, hold it for at least 4 to 5 years.

Not only will you gain as your mortgage principal amount decreases during that time period as the the tenant is paying down your mortgage you also get to enjoy the increase in value of the property over time = profit.

It really is as simple as that.

All the Best!
Mark

The pros and cons of owning real estate

Read about my personal story of how to get that mortgage paid off quicker.

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

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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Our Housing Market Continues to Boom in spite of Recent Economic and Financial Developments

Our Housing Market Continues to Boom under Recent Economic and Financial Developments

In late October the Bank of Canada published its Monetary Policy Report. It was noted, in that document, growth in the Canadian economy has been stronger than projected, supported by the robust global economic expansion and strong commodity prices. Canada's economy is now operating further above its production potential than had been previously expected.

With the economy moving back towards balance, and with the direct effect of the stronger Canadian dollar on consumer prices, core inflation is projected to gradually decline to 2 per cent in the second half of 2008. Total CPI inflation is expected to peak at about 3 per cent later this year and then move back down to the 2 per cent target in the second half of 2008.

But there are a number of upside and downside risks to the Bank's inflation projection. The main upside risk is that excess demand in the Canadian economy could persist longer than projected. The main downside risk is that output and inflation could be lower if the average level of the Canadian dollar were to be persistently higher than the 98 cents U.S. level that was assumed in the Report, for reasons not associated with demand for Canadian products. Given recent information, both the upside and downside risks appear to be greater than they were when we completed the Report.

In the Report, it was stated that after considering all factors, a judgment was made that the risks to the Bank's inflation projection are roughly balanced, with perhaps a slight tilt to the downside. And, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term.

The Canadian and U.S. economies remain highly integrated, and there is every indication that our economic ties will remain strong. But developments in the global economy and the growing prominence of emerging economies have important implications for policy-makers on both sides of the border.

It is important that policy-makers heighten their focus on the need to promote and enhance flexibility. Our economies must be able to adjust to changing circumstances. If we are successful in this effort, not only will both the Canadian and U.S. economies be able to deal with economic shocks, but we will also be able to sustain strong economic performance in North America. And that is the best outcome for Canadians and Americans alike.

Read more about GTA and Ontario Price Trends

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

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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GST reduced from 6% to 5% as of January 1st 2008- How will it affect real estate transactions?

GST Reduction Information

November 9, 2007 -- A reduction in the GST from 6 per cent to 5 per cent was announced by the federal government on October 30, 2007. With regard to the purchase price of residential properties, GST only applies to sales of newly constructed and substantially renovated homes.

GST is not applied to the purchase price of resale homes, but it does apply to REALTOR® commissions. The reduced rate will become effective on January 1, 2008; however, the reduced rate will apply to the purchase price of new homes immediately, subject to transitional rules detailed below (Note: This summary has been reviewed by the Canadian Real Estate Association for accuracy).

REALTOR® Commissions

GST is generally payable when an invoice is issued. However, since commissions do not typically become payable until the transaction closes, the closing date is generally the relevant date for calculating the applicable GST rate. The GST rate will depend on when the GST on the commission is paid or payable, as follows:

• If GST becomes payable, or is paid without having become payable, before January 1, 2008, the rate of 6 per cent will apply.
• If GST becomes payable on or after January 1, 2008, without having been paid before that day, the rate of 5 per cent will apply.
• If GST is paid on or after January 1, 2008, without having become payable before that day, the rate of 5 per cent will apply.

Purchase Price of New Homes

Ownership or Possession Transferred before January 1, 2008: Generally, the 6 per cent rate will apply if ownership of the property, or possession of it under the agreement of purchase and sale, is transferred to the buyer before January 1, 2008.

Ownership and Possession Transferred on or after January 1, 2008: The 5 per cent rate will apply if both ownership of the property and possession of it under the agreement are transferred to the buyer on or after January 1, 2008. Note the special transitional rule for new residential housing below.

Sales of New Housing under Written Agreements Entered Into on or before October 30, 2007 Where Both Ownership and Possession Transferred on or after January 1, 2008. The Following Rules Apply:

• Agreements of Purchase and Sale entered into on or before October 30, 2007 but after May 2, 2006, the 6 per cent rate will apply.
• Agreements of Purchase and Sale entered into on or before May 2, 2006, the 7 per cent rate will apply.
• In both of these circumstances, the purchaser will be entitled to file a claim directly with the Canada Revenue Agency to be paid a Transitional Rebate that reflects the GST rate reduction to 5 per cent, net of any corresponding rebate adjustment.

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

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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RBC Saying that Canada's economy on strong growth path

Canada's economy on strong growth path

Canada's economy has shown solid momentum in the first half of this year with real growth averaging a pace slightly above 3.5%, reflecting the impact of the positive terms of trade shock given recent strong gains in export prices.

However, we have revised the second-half growth rate down to 2.8% because of both a weaker U.S. outlook and the ongoing credit tightness.

The lingering impact from these factors, along with the marked appreciation of the Canadian dollar, will moderate growth next year to 2.5%. Continuing favourable terms of trade are expected to limit the extent of the slowing in growth. Inflation rates are high and will remain above the mid-point of the Bank of Canada's target band. Above-target inflation would normally result in the Bank raising interest rates, but the impact of the credit tightness and the strong surge in the Canadian dollar will prevent interest rates from rising until late in 2008.

Economic growth is expected to rise only moderately in 2009 to 2.6%, although the quarterly growth rates are expected to show a slowing trend.

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

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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Housing Affordability - Rising price-to-rent ratios partly justified

A look beyond our standard affordability measure
Our latest housing affordability calculations showed that the proportion of before-tax household income going towards home ownership costs suffered one of its largest and most broadly based quarterly deteriorations in the current housing cycle stretching back to the mid-1990s. While the deterioration spanned every major city, it was the western markets that warranted caution because of the speed and depth of the deterioration.


Our affordability measure provides a rough depiction of trends in wages, the cost of capital, energy prices and tax rates, but it has limitations. It does not directly address whether or not house prices are high today by historical standards and how they compare to local rental options and it does not account for recent financial innovation, such as the introduction of products like extended amortization mortgages.


Another measure that provides an indication of an over- or undervalued market is the price-to-rent ratio that compares house prices to rental costs using the rent component in the consumer price index. The purpose is to compare the cost of buying compared to renting a house. While insufficient on their own to predict market valuations, together the affordability measure and price-to-rent ratios can help assess whether housing markets are inflated.


Rising price-to-rent ratios partly justified
The unanimous trend of rising price-to-rent ratios across every major city in the current housing cycle can be partly attributed to recent financial market developments and innovation. The precise combination of historically low interest rates coupled with significant financial innovation has been a key support in the current housing cycle. Interest rates were on a downward trend through much of the 1990s and have held at very low, attractive rates since the start of the decade, thus helping to fuel housing demand. Financial innovation has also helped to make the market more liquid through extended mortgage amortizations, higher accepted loan-to-value ratios and securitization. In fact, longer amortization products now dominate new mortgages in the insured market and comprise about 25% of total new mortgages in Canada.


Regional disparities behind soaring price-to-rent ratios
National price-to-rent ratios were remarkably stable through the 1990s, indicating a relative indifference between buying compared to renting a home. The result in the 1990s was a significant improvement in affordability right across the country. The tide turned at the start of the current decade and price-to-rent ratios have since increased by roughly 80% nationally. A rising ratio is indicative of house prices outpacing rental costs. These trends are not a consistent cross-provincial phenomenon. Part of the increase in the ratios is attributable to what has become an overheated market out west. However, part is also due to changing dynamics in the market that have made housing more affordable and accessible to lower-income segments.


The bottom line
While financial market trends help explain some of the increase in price-to-rent ratios in central and eastern Canada, they do not fully explain the increases out west. By considering affordability conditions in conjunction with price-to-rent valuation estimates, a fuller picture of the sustainability of current fundamentals emerges. Together, these measures point to evidence of overvalued markets in the west, while markets from Manitoba eastward appear, on balance, to be fairly valued From RBC Economics

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

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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Toronto Land Transfer Tax - Slight adjustment in calculation

The Toronto Land Transfer Tax rate was adjusted down, slightly. See the new calcuation at this page of my site.

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Positive CMHC Housing Market Outlook for 2007/2008

CMHC released their Housing Market Outlook for Q3 2007. The housing market forecast for the balance of 2007 and 2008 remains positive.

This article will highlight some of their findings (a "Coles Notes" version!):

Ontario - Overview

• New home construction activity will moderate but remain near historical averages in 2007 & 2008;
• Growth in Ontario's economy will range between 2 & 2.5% annually this year & next;
• Ontario's economic growth will lag behind the Canadian average, but the growth gap between Ontario & the west will gradually narrow.

Ontario - Resale & Prices

• Existing home sales through MLS will set a new record this year. Slightly higher carrying costs in 2008 will pull sales only modestly lower.
• A more balanced resale market, resulting from higher listings, points to slower growth in house prices;
• Average MLS price in Ontario will rise by 5.3% this year & 3.4% in 2008.

Mortgage Rates

• Moderate inflation and a strong Canadian dollar vis-à-vis the U.S. dollar, will help keep Canadian bond yields and mortgage rates flat over remainder of this year.
• Posted mortgage rates for 5 year terms are forecasted to be in the 6.5% - 7.5% ranges (for remainder of this year & 2008).

Ontario - Multiple Starts

• Healthy pool of first time buyers looking for less expensive homes combined with provincial gov't efforts to promote higher density construction, suggest condo apartments will remain in demand;
• Multiple starts will remain relatively stable - increasing slightly from 2007 to 2008.

Ontario - Single Starts

• Demand for higher priced detached homes will cool despite a rapidly growing population of 'mid 40s' which prefer low density homes;
• Single starts will cool from 2007 - 2008.

The Canadian Economy

• The Canadian economy grew at a faster pace than expected in first quarter of 2007;
• Consumer spending made a significant contribution to economic growth;
• Key challenge for the Cdn economy has been the deterioration in net exports due to high value of CDN $ & the slow growth rate in US economy;
• Consumer spending should stay vibrant thanks to high employment, income gains & relatively low interest rates.

The full report is available at http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q03.pdf

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

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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Celebrating 20 Years in Real Estate!

Celebrating 20 Years in Real Estate!

I obtained my real estate license on Oct 26, 1987 and thus, today marks my 20th year in the real estate business. Much has changed in the business in 20 years. The Lord's Day Act prohibited selling real estate on a Sunday back in 1987. We did not begin using a fax machine until spring of 1988, and those fax papers would fade away after a month or two.

For the past 20 years, I carry two press releases inside my presentation folder. The one article is from the Toronto Star. It 'shouts' that the average price is predicted to rise over $200,000 in the next year. The average GTA price in October 1987 was $192,500 (today it's $380,132).

Even though I had bought my first townhouse in 1985 I needed some credibility to help me convice others that real estate was a good investment. Being new in the real estate business, I would pull out the Toronto Star article when I would meet people to prove that real estate was a good investment. I highlighted some of the paragraphs in the article and the key paragraph stated, "Real estate has always been a good investment and it has always produced excellent equity appreciation". I've not pulled out this article for about 10 years, but the same certainly holds true today as it did back then.

The other article I carry around is written by the then business editor of the Toronto Star, none other than Garth Turner. His views carried much weight back then and when he spoke about real estate, people listened. The article I carry that is written by him talks about the "horrifying experience" if you are looking for a place to live in the GTA. Prices are nearly averaging $200,000 and only one apartment in a thousand is vacant! We (Toronto) have the highest housing prices in the entire country. Mortgage rates were about 11.5% at the time and inflation was about the same! Wow have times changed, except that he also states, "We have also had the most spectacular gains in the price of real estate. There are, however, more increases to come, because as pricey as it is, housing is still essentially undervalued". Where have you heard this before? People in the GTA have been saying this same thing for the past 20 years that I've been in the business and will continue to say this for at least the next decade.

I believe that real estate will continue to be an excellent method of 'forced savings', it also gives you a firm footing to raise your family and will contintue to be an excellent long term investment anywhere in the GTA, North to Barrie, East to Newcastle, West to London and around the Golden Horseshoe to Niagara Falls.

The last 20 years in real estate has been great for me and my family. I am looking forward to more exciting times in real estate over the next 20 years and hope you can enjoy the ride along with me!

I want to thank all of my clients and friends that have supported me and used my services over the past 20 years and especially those people who 'believed in me' back in those early years.

I hope that this finds you and your family healthy and happy and I wish All the Best

Mark


Read about how to become mortgage free faster!

Read Mark's profile

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

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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Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Mississauga, ON (October 17, 2007) - After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John's are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent. Average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John's.

"Western markets were first out of the gate in 2007, but those in the East followed suit," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "By year- end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year."

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

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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How Much Is Your Home Really Worth?

"The true market value of a home is what a buyer is willing and able to pay for it." Setting a sales price for a home is a delicate balance. Price too high and the home won't sell; too low and it won't sell for what it's worth. Of course, the sales price should be based on fair market value--what a knowledgeable buyer would pay and an informed seller would accept. A home's value has a lot to do with what other similar homes in the area have sold for recently, taking into account size, style, age, number of bedrooms and baths, garage, lot size, condition and, of course, location. Ultimately, though, the price you receive for your home will have to do with who the available buyers are, what they're looking for and what other houses are available for sale. PRICING For more information about selling your home at the right price, read our online report, PRICING: How to price your home in our Market. Feel free to call or e-mail us for an update.

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

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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TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO, OCTOBER 9,2007 – Canada Mortgage and Housing Corporation

(CMHC) has released preliminary housing starts data for September 2007. The seasonally-adjusted annual rate (SAAR) of starts increased strongly to 41,800 in September from 32,300 in August. A robust annual rate of multiplefamily starts, especially for condominium apartments, drove this increase.

While condominium apartment starts were much stronger last month compared to September 2006, it should be noted that on an unadjusted basis through the first three quarters of the year starts of this housing type declined by 38 per cent compared to the first nine months of last year. The decline in new condominium apartment construction caused the total number of starts to dip by 12 per cent this year. Single-detached, semidetached and row (town) house starts were up 5.5 per cent compared to last year.

"Demand for new ownership housing has been very strong over the past year, due to seller's market conditions in the resale market driven by favourable local economic conditions and low borrowing costs," according to Jason Mercer, Senior Market Analyst at CMHC. "Demand for condominium apartments in the Toronto area has been especially strong. Record pre-construction condominium apartment sales experienced over the past two years have started to convert into increased starts. This trend is expected to continue in the last quarter of this year and through 2008."

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

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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Predictions on US interest rates and where they are heading over the next while

This is what the so called experts are predicting on US interest rates and where they are heading over the next while.

This week (Oct. 4 - Oct. 10) the experts say: There is still much uncertainty as to whether rates will rise or fall.

Experts' comments
The 10-year is currently trading at 4.55 percent and has not moved much, which is no surprise. Conforming rates have been steady. The jumbo market has stabilized a bit, with some big players coming back into the market and others making pricing corrections for the better. We will continue to see an improvement in rates through the end of the year. Remember the Fed is watching LIBOR closely and that will help determine what the Fed does next month.
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

Stocks will soon tumble as consumer spending continues to slow. Bonds will soon rally, meaning mortgages will become much more affordable.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

This market doesn't have enough data, one way or the other, to cement a major shift. One thing is certain: Locking your loan early is the best bet. Mortgage bonds are trading in a range with stiff upward resistance and the slightest sign of inflation could send interest rates through the roof overnight. Expect volatility.
Dan Dowling, president, United Mortgage Capital Corp., Altamonte Springs, Fla.
unchanged
Money is flowing back into stocks at the expense of mortgage bonds. Rates will move higher as a result.
Dan Green, mortgage planner, Mobium Mortgage, Chicago

We are sitting in the middle of a six-week range of interest rates as short-term volatility is becoming the norm. What's causing this are inflationary fears from the last and forthcoming cuts from the Fed tempered by weak economic data. Look for this to continue. Opportunities will exist to capture a lower rate on the right days.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.

We are seeing some lower rates from jumbo investors, but it is obvious that they still have to sell the stuff they have been sitting on for the past two months. With the housing market soft and mortgage rates artificially high with lower demand, there is little reason to sell that stuff at a loss unless there is opportunity to loan that money again at a profit. It is sort of a Catch-22.
There is no underlying problem here. The folks who hold those mortgages will sell them and the machine will get running again, it just appears that they are in no hurry.
There are a few strategic things which will result from this. Some banks will only make mortgage loans originated by their own employees. Some may stop taking loans from brokers.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

Bankrate's analysts
The forward path of mortgage rates will hinge on the outcome of the employment report. I'll say that revisionist history shows job growth in the past two months and, while not pretty, it wasn't as bad as initially thought. This will give mortgage rates a slight bump.
Greg McBride, senior financial analyst, Bankrate.com

The economy appears to be slowing down. Today's rates seem low by this summer's standards, but they were lower than this for much of last fall to this spring. Those lower rates are the norm.
Holden Lewis, senior reporter, Bankrate.com

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Understanding Your Credit Report and Credit Score

Understanding Your Credit Report and Credit Score

What many prospective borrowers don't realize is that the pricing of mortgages and other loans is based in part on their credit-worthiness. Consumers need to be aware of how their credit is evaluated by lenders, and how they can work to avoid so-called "bruised credit" people with a lower credit score can find themselves paying a higher interest rate, or even denied access to certain types of loans.

A credit report is a detailed history of how consistently you meet your financial obligations, and provides a picture of your financial health based on your past behaviour. A credit score is a three-digit number, usually between 300 and 900, representing your overall credit-worthiness, based on personal information from your credit report and other sources.

Both your credit report and score are important. When deciding whether or not to grant a mortgage loan, lenders refer to an applicant's credit report and score, along with a range of other factors such as income, employment history, and size of down payment.

The higher your score the more likely you are to be approved for a mortgage and receive favourable rates because the lender considers you to be a better credit risk. Several factors are used by the two credit agencies in Canada (Equifax Canada and TransUnion Canada) to calculate credit scores:

• Debt payment history.
  
  
• Amounts owed compared to your current credit limits with lenders.
  
  
• How often you seek new credit.
  
  
• Length of time you have had credit accounts.
  
  
• Type of credit, such as car loans, lines of credit, credit cards.

Interst Rates

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



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TD Canada Trust predictions for remainder of year

TD Canada Trust predictions for remainder of year



HIGHLIGHTS

• Canadian economy records steady growth


• Cross-currents will continue to blow across Canada's major industries


• Inflation monster continues to lurk in the background

This morning's release of Canadian gross domestic product (GDP) for July – while falling in on the soft side of market expectations – revealed that the economy continued to churn out steady gains early in the third quarter. The 0.2% month-to-month increase recorded in the month leaves the economy on track to record a respectable rate of growth of 2.5-3% in the third quarter, which is only modestly slower than the 3.5% average outturn clocked in the first half of the year. As has been the case in recent months, the service sector remained the tower of strength, forging ahead by 0.3% on a month-to-month basis in July and counter-balancing another soft performance on the goods side (-0.1%). Since monthly data are notoriously volatile, we've provided a snapshot of year-over-year changes across the sub-industries As can be seen, the service areas have reigned supreme, while Canada's export-oriented manufacturing sector has struggled.



The headwinds will increase



While the weaker-than-expected GDP result pushed down Canadian bond yields and took some steam out of the overnight rally in the Canadian dollar – which had pushed the loonie to 1.007 U.S. cents – investors are more concerned with what may lie ahead. For one, neither the GDP data for July nor August's stronger-than-expected Canadian employment report factor in the fallout from the recent financial turmoil that spread across the globe. Certainly, credit conditions have improved since the height of the mid-August turmoil, with interest-rate spreads on riskier assets easing from their highs. Still, international credit markets have not returned back to normal, as evidenced yesterday when both the Bank of Canada and the ECB moved once again to inject liquidity into their respective overnight market in order to ease the upward pressure on lending rates. In Canada, participants of the Montreal proposal that aims to resolve the third-party asset backed commercial paper (ABCP) crisis announced this week that they will need more time to find a solution to the issue.



Perhaps more importantly, the prospects of the U.S. economy have steadily dimmed since the summer. This week's reported 4%/8% drop in new/existing home sales and further deterioration in prices point to a housing market retrenchment that still has at least a year to run. Investors were served up some better news this morning, with the reported 0.6% gain in U.S. personal spending, which topped forecasts. Yet the spotlight quickly turned to the weaker-than-expected 0.3% gain in personal income that put downward pressure on the saving rate.



Given that 70% of U.S. GDP is tied to the consumer, so much of the near-term outlook Stateside rests on the performance of the job market, and in turn, the level of business confidence. We remain optimistic that the business sector will keep its head above water in the months ahead, supported by still-healthy balance sheets and cash positions. This week's report on durable goods for August highlighted the fact that while non-defense capital spending has slowed over the past few months, it remains at a respectable level. Certainly, next week's U.S. non-farm payrolls report for September will provide precious insights. Our bet is that employment growth resumed in the month, but by only 75,000 jobs. This pace is consistent with our outlook for lethargic quarterly real GDP growth of 1.5-2% in the near term.



Cross-currents in Canada's economy



The chillier headwinds from tighter credit market conditions and softness in the U.S. economy will not be lost on Canada's economy. Little reprieve can be expected in manufacturing, which has seen its cost edge evaporate from the surge in the Canadian dollar. In some areas – notably autos – U.S. producers appear to be moving to shore up profitability, exacerbating the manufacturing challenge for Canada. That said, other industries will continue to enjoy solid conditions. Consumer-driven industries, such as wholesale and retail trade, will continue expand at a decent rate, supported by a 33+ year low unemployment rate. These two industries also top the list of Canadian sectors actually benefiting from a soaring loonie. Housing markets may have started to cool in Alberta, but ongoing strength nation-wide should continue to provide enormous spill-over benefits across the gamut of goods and services industries. Although resource companies are confronting rising costs and a higher loonie, ongoing rapid expansion in China will continue to provide a solid underpinning on prices for oil and metals. Above all, this week's announced $14 billion federal budget surplus for fiscal 2006-07 served up a reminder that government coffers in Canada are the envy of the G-7, providing wiggle room to initiate tax cuts and other measures to help offset some of the challenges on the competitiveness front.



Netting out these offsetting headwinds and tailwinds, we project economic growth in Canada to run at a rate of about 2% over the next year. This moderate pace will continue to fuel debate about the Bank of Canada's likely next move. In a speech this week, Bank of Canada Governor Dodge indicated that the current rate setting was appropriate in view of the downside risks to growth and inflation emanating from the U.S. and the upside risks from booming housing activity.



As we discuss in the latest monthly edition of TD Global Markets, released yesterday, it is the inflation risk that is likely to win out, prompting the Bank of Canada to raise rates by 25 basis points in December after the Fed delivers one final rate cut at its October confab. Given that financial markets are pricing in more significant easing in the U.S. and are still betting on a modest easing in Canada, we are projecting a backup in yields on both sides of the border by 30-40 basis points by year-end. Lastly, the Canadian dollar will end the year at parity before falling back to about 95 U.S. cents in 2008. Article courtesy of R.Paul Chadwick from TD Canada Trust

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

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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How to Become Mortgage Free quicker

You can be mortgage free sooner than you think

Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.

The experts suggest the following:

1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)

2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.

3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.

4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.

5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.

6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.

Read more about becoming mortgage free quicker

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

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

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Multiple Offers - do the other offers really exist? Prove it!

There has been much ink lately on the procedure and truth in multiple offers on properties in the GTA. I for one agree with a registry system that would help to guarantee that there really is one or more other offers on a particular property. There is too much opportunity to 'fabricate' the existence of another offer on a property. Just my 2 cents. The article below is from the Toronto Star and brings up some very good points about the 'phantom bids' in the GTA real estate marketplace.

Let's hope that TREB and RECO helps resolves this problem for us,

Mark

The secret's out on phantom bids

Speak Out: Tell us your storiesBidding and bitternessCheaper ways to sell gaining groundThe secret's out on phantom bids'(The phantom bid) is one of the oldest tricks in the book'
MIKE DONIA, veteran Toronto realtor Registry, open bidding needed to stamp out phony offer scams, some realtors say

Sep 15, 2007 04:30 AM Tony Wong Gail Swainson Staff Reporters

The incoming head of the Toronto Real Estate Board has come out swinging against phantom bidding tactics after denying they even existed when she ran for the job three months ago.

"It's dirty realty, it really is," Maureen O'Neill said of agents who fabricate offers during bidding wars. She is now calling on the Real Estate Council of Ontario (RECO) to yank the licences of agents convicted of using phony bids.

"Boot them out, we don't need them in the business," O'Neill said. "I don't think these people should be allowed to sell real estate."

Phantom bids can be used by selling agents to spark extra rounds of bidding or to spook potential buyers into rushing or raising offers. The practice is considered a breach of ethics under the Real Estate and Business Brokers' Act of Ontario – administered by the Ontario council – and realtors who are caught can face hefty fines.

There are more than 52,000 real estate agents in Ontario (26,000 in Toronto) and last year they sold 194,793 existing homes in Ontario (84,872 in the Toronto market).

An informal poll of 30 Toronto-area agents taken yesterday by the Star suggests that virtually all believe that some form of phantom bidding exists in the market. More than two-thirds said some kind of structural reform in the way bids were handled was needed to address the problem.

However, more than half the agents said the problem is being caused by "a few bad apples."

One prominent broker, who handles one of the city's largest brokerages, calls the problem "rampant."

"This is a major problem and it's causing a black eye for the real estate community," said the broker, who did not wish to be named. "You end up with one man at an auction bidding against himself – it's plain fraudulent." The broker says he gets an average of one complaint per day from his agents about potential phantom bidding.

He said he has complained for three years to directors at the Toronto Real Estate Board who "really don't have the stomach for this. They don't want to deal with the issue."

O'Neill made her comments after learning the Star had received documents proving the Real Estate Council of Ontario has been called upon to deal with complaints about bidding war tactics.

Until this week, she steadfastly refused to acknowledge made-up bids occur, saying the Ontario council's CEO Tom Wright and registrar Allan Johnson assured the Toronto body's 18-member board on July 19 that no complaints had ever been received.

But the Ontario council's spokesperson Sandra Gibney said yesterday that Wright and Johnson made no such statements and "RECO does not know why Maureen O'Neill is claiming otherwise.

"If Ms O'Neill had contacted RECO prior to responding to questions about RECO's complaints statistics, RECO would have provided the same information that you received," Gibney added in an emailed statement.

In response, an angry O'Neill said she "will certainly be calling (RECO) and asking what the hell is the problem. Certainly they have strained this relationship."

O'Neill doesn't think the answer lies in a formal registry and open bid process, something Michael Manley, the owner of Prudential Properties in the Beach, advocates.

"If a buyer doesn't like the process, they can always walk," O'Neill said. "I think that in a free marketplace, everyone wins."

Manley, who ruffled feathers by raising the phantom bid issue during the real estate board's elections, is glad to hear O'Neill has come around. "I don't know where she's been. It's incredible that anyone as experienced as her could not have heard about this," he said.

Manley said the solution to phantom bidding is a registry system where every bid on every house is officially registered on the Multiple Listing Service. He is marketing an Internet program that would allow sellers to put a check mark on their listing to signal they are open to registered bids in an open process.

While no statistics are kept specifically involving phantom bids, the Real Estate Council of Ontario documents – obtained after a request by the Star – show the council received 60 complaints about bidding processes in the year ending March 31, 2007.

The Real Estate Council of Ontario, which regulates the activities of agents and brokers in Ontario, said in a statement that complaints about bidding "generally arise in a hot real estate market and are more common in highly desirable areas."

In July, Kingston Re/Max broker Bill Batson had his November 2006 conviction for "misrepresenting the existence of an offer to another member" upheld on appeal by the council's disciplinary panel. He was fined $10,000. The panel heard Batson suggested to a buyer's agent that another, non-existent offer might be coming in on his listing, priced at $449,000.

This sparked a $450,000 offer from the buyers, which was accepted. The buyers were originally preparing to offer about $400,000.

When reached at his Kingston office Thursday, Batson said he preferred not to comment.

"It's over and done with," Batson said. "I've paid the fine. RECO didn't believe the truth."

Under Section 26 of the provincial code of ethics, an agent or broker is required to disclose the number of competing offers to every buyer. But the agent is prohibited from disclosing the substance – or price – of competing offers, unless the seller agrees.

In more than two decades of selling homes, veteran Toronto realtor Mike Donia has seen more than a few deals that looked so questionable that he encouraged clients to walk away. The phantom bid, says the ReMax agent, is "one of the oldest tricks in the book – it's been out there forever and a day."

The problem is proving it.

"You've got people out there creating an illusion to pump up their profit," says Donia. "My advice to clients is not to get caught up in the bidding wars and make a decision on the spot, especially if you're not sure there really is another bid."

Heather Sherman, an associate manager at Sutton Group Admiral Realty who has served on various committees at the Toronto Real Estate Board, says phantom offers could be avoided if agents presented their offers the old-fashioned way: Show up in person.

Some vendors will only take faxed offers, which is a less transparent process and leaves potential buyers wandering if there really was a person on the other end of the phone line, said Sherman.

David Blair of Oakville put an offer on a house that was "conveniently" exceeded by $1,000 from the listing agent's own client. "I'm positive the agent told his own client what our offer was. I was a victim of an agent in a double-ended deal."

Even though the practice is not allowed under the provincial act, Blair's agent didn't file a complaint.

"She's developing a network right now and doesn't want to make any enemies in the industry," Blair said.

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

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
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RBC reports that our Economy forges ahead in the second quarter

Strong Signals - Economy forges ahead in the second quarter

Second-quarter GDP grew by a stronger-than-expected annualized 3.4%, following an upwardly revised 3.9% gain in the first. The monthly 0.2% gain in June was also an upside surprise, with markets expecting no gains. Strength late in the second quarter suggests strong momentum going into the third.

Employment increased by 23,300 in August, beating the 11,300 increase in July.

The unemployment rate held at 6%, the lowest level since 1974 and wage growth continued to be firm. The average hourly wage rate for permanent workers rose 0.9% and was 3.8% higher than in August 2006, the fifth month of solid monthly gains and the fastest pace of increase since August 2006.

Retail sales declined 0.9% and 0.3% excluding autos. However, real retail sales advanced at an annualized 10.8% in the second quarter, the fastest quarterly pace since the fourth quarter of 2001.

Housing starts were stronger than expected in August, coming in at a 226,500 annualized rate, firmer than market forecasts for 220,000 units and faster than July's 215,600 unit rate, indicating that Canada's housing market continues to perform well, backed by strong employment gains and income growth.

Canada's merchandise trade surplus shrank to $3.7 billion in July and June's surplus was revised down by $1 billion to C$4.3 billion. Exports increased by 1.4%, while imports rose by a sturdy 3.5%, pointing to the sector acting as a weight on the pace of economic activity in the third quarter.

The year-over-year all-items inflation rate held steady at 2.2% in July, while the Bank of Canada's core inflation rate slipped back to 2.3% from 2.5% in June. However, despite the dip in the core inflation rate, it has held above the Bank's 2% target for 11 months.

Courtesy of Dawn Aspinall RBC Economics Research

Read more about the current state of real estate in the GTA

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

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
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How Canadian city economic indicators are performing so far this year

How Canadian city economic indicators are performing so far this year

Job growth so far this year across the census metropolitan areas (CMAs) remains robust. Apart from lacklustre average annual growth reported in Saguenay, Quebec City, Ottawa, Kitchener, Hamilton and Windsor, the remaining CMAs that we track are reporting healthy annual year-to-date gains.

Saint John led the pace in July with 8% annual job growth. However, on a year-to-date basis, the cities in western Canada are putting in the strongest performances. Edmonton, Calgary and Saskatoon are all tracking gains in 2007 in the 6%-7% range three times the national rate.

Unemployment rates have ticked up a few notches after reaching record lows in many cities in the latter part of 2006. The uptick in unemployment rates is most prominent in Ontario. Toronto saw its unemployment rate reach 7.5% in July, which marks its highest rate in more than two years.

Quebec has seen its labour markets tighten significantly in the last six months. The renewed strength in job markets saw Montreal's unemployment rate drop from 7.8% in March to 6.5% in July. Quebec City's unemployment rate dropped from 6.5% in February to 4.1% in July.

Non-residential construction strength supports city economic growth

Non-residential building permits grew in June in two-thirds of the CMAs we track. The strongest growth rates were reported in Regina (up 343%), Trois-Rivières (up 224%) and Quebec (136%). The sharpest declines were reported in Thunder Bay (down 82%), Abbotsford (down 70%) and Ottawa (down 57%).

Investment in non-residential construction continued to rise in the second quarter of 2007 with heavy spending on office buildings in Alberta and Ontario supporting the gains. While Calgary led the investment gains in the commercial and institutional sectors, it was Toronto and Montreal that reported the largest dollar-value investment gain in the industrial sector.

Another strong month for city housing markets

Residential markets had another strong showing in June with strong resale activity and continued annual price gains holding in the 10% range. Thunder Bay and St. Catharines were the only two CMAs to put in a year-over-year drop in average house price gains in July. The remaining CMAs all reported healthy annual gains.

Residential permits increased at a 63% pace in the second quarter and the numbers point to continued firm activity in the third quarter.

Read more about the current state of The GTA Home Prices

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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
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RBC Reports that Housing affordability hit on all sides

Housing affordability hit on all sides

Increases in house prices, mortgage rates, utilities and property taxes all combined in the second quarter to deliver a severe hit to housing affordability. By a slim margin, the portion of before-tax household income going towards home ownership costs suffered its largest and most broadly based quarterly deterioration in the current housing cycle stretching back to the mid-1990s.

Affordability deteriorated in every housing class we track, in every province and in every major city. In two short quarters, Saskatchewan has set a new affordability low concentrated in Saskatoon.

Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Alberta is still, however, avoiding British Columbia's stressed affordability conditions.

Housing market conditions from Manitoba eastward are not yet a cause for concern, but conditions in Saskatchewan, Alberta and British Columbia warrant caution given the speed of the massive turnaround in affordability in several key cities. The economic fundamentals are supportive, but have been priced in fairly aggressively. In our view, a continued cooling in the pace of price gains and an ongoing pull back in sales-to-listings ratios lie in the cards in these cities.

Toronto's housing affordability slid across all four housing segments, but outside the core Toronto area, housing market conditions are healthy and roughly balanced. The bigger risk to affordability conditions is the potential for higher property taxes towards the end of the decade after the current freeze on property value assessments is lifted in 2008.

Montreal's housing affordability also softened across every housing segment. However, Montreal's housing market remains one of the softest among the big cities.

Affordability deteriorated across the board in the Atlantic region, but the two-storey and condo segments saw the sharpest erosion. Despite Ontario's second-quarter affordability hit, a look at historical affordability numbers in Ontario should help calm nerves that the province may be at risk of a significant correction. Unlike many of the western provinces, affordability remains comfortably below levels reached in the late 1980s just before the major housing market crash.

Manitoba had its worst quarterly deterioration in more than a year, but is the most affordable region in the country and has managed to avoid the severe affordability stresses prevailing in neighbouring Saskatchewan, Alberta and British Columbia.

Courtesy of Dawn Aspinall RBC Economics Research

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

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
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Title insurance policies and content can differ widely

Title insurance policies and content can differ widely

Are all title insurance policies the same? Are the coverages provided by the various title insurance companies so similar that it doesn't matter which one you choose?

These questions arise in the wake of a recent article on title insurance which appeared in the Aug. 18 New in Homes. The article quoted Toronto real estate lawyer Bruce McKenna, and Mississauga lawyer Lorne Shuman, who works for First Canadian Title.

"Both Shuman and McKenna suggest purchasers go with the insurance provider recommended by their lawyer," the article said, adding that "while there are small differences between providers, your lawyer will be working with the provider he or she feels is best for you."

McKenna is also quoted as saying that, "basically, the coverages are so similar and the market pressures to deal with claims in a reasonable way are so large that I don't feel the insurer matters very much."

I have to differ, but in doing so I should first point out in fairness that I am an elected bencher (director) of the Law Society of Upper Canada, which owns the Lawyers Professional Indemnity Company (LawPRO). That company insures all Ontario lawyers for errors and omissions, and also owns TitlePLUS, one of several licensed title insurance companies in Ontario.

In my capacity as a Law Society bencher, my legal duty is to assist in governing Ontario lawyers in the public interest. I am not, however, a cheerleader for the Law Society.

I have no role in the operations of LawPRO or TitlePLUS except to approve or not approve their annual reports, along with more than 50 other bencher colleagues. I do not sit on the board of LawPRO and do not attend its meetings.

Having said that, I feel compelled to explain that there is, in my opinion, a significant difference among title insurers. Conventional title insurance policies cover a lawyer's negligence only if the mistake relates to a loss that is listed in the policy as an insured risk.

In contrast, only TitlePLUS routinely makes available comprehensive coverage for the legal services provided by a lawyer, in addition to the listed risks. In other words, any negligence by a lawyer in a real estate transaction is covered by a TitlePLUS policy, whether or not the mistake is an insured risk set out in the policy.

What this means is that in a real estate transaction, if a lawyer makes an error amounting to negligence, the legal services coverage in a TitlePLUS policy protects the homeowner, even if the lawyer's mistake is not related to one of the itemized title risks insured by the policy.

One example of legal services coverage occurred when the buyer of a condo unit told her lawyer she wanted to pay cash, but wound up getting stuck with paying interest on a vendor-take-back mortgage during the interim occupancy period. The legal services provision in the TitlePLUS policy compensated the buyer for her $9,000 loss – even though the policy did not specifically insure against this type of loss.

Without the coverage, the client would have had to sue the lawyer for the loss.

The Aug. 18 article also quotes Lorne Shuman as saying that title insurance costs about $299 for a house purchase with a mortgage, but it varies with properties and price range.

In fact, there is a significant difference in the cost of residential title insurance policies among three companies that I called last week. For a resale house selling at between $200,000 and $500,000, with one institutional mortgage, First Canadian Title (FCT) quoted $322.92. Stewart Title Guaranty Company (STG) quoted $351, and TitlePLUS (TP) quoted $238.80 including the legal services coverage.

For new homes, the premiums drop to $268.92 (FCT), $324 (STG), and $233.10 (TP). In both of these types of policies, Stewart Title rebates a fee of $100 to qualified lawyers who arrange coverage over the Internet. The fee must be disclosed to the lawyer's client.

For resale condominium units in the same price range, the premiums are $193.32 (FCT), $189 (STG) and $184.80 (TP).

Whenever I can, I use TitlePLUS policies for purchaser clients. The cost is lower, and the coverage is – in my opinion – far superior.
by: Bob Aaron from the Toronto Star

Read More about Title Insurance

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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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Luxury sales continue to rise across the country

Luxury sales continue to rise
Luxury sales experience serious upward momentum in major Canadian markets, says RE/MAX Mississauga, ON (September 5, 2007) -- Consistent return on investment has prompted an unprecedented upswing in luxury home sales in major Canadian centres so far this year, according to a report released by RE/MAX.

The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

“The consumer appetite for luxury property has been insatiable,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it’s simply a starting price.”

Solid gains in housing values – especially in the top-end of the market – have garnered much attention. The steady upward trending has attracted a growing number of affluent purchasers who are taking advantage of both the increased equity and the capital gains exemption for a principle residence.

“Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper-end are comfortable with a million dollar plus investment in real estate,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings.” Out-of-province and international purchasers are active in most markets surveyed, but locals still account for the majority of upper-end sales. Benchmark sales, including one home priced at close to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales taking place in the very upper reaches of the marketplace this year. In smaller centres, benchmarks have been set throughout the year and although some, such as Regina, have yet to report a $1 million sale, the day is nearing.

Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these types of property. The most expensive sale to date occurred in Vancouver at close to $5 million, while the priciest listing carries a price tag of $18.2 million in the same centre.

“It appears that a growing percentage of the population has that kind of money to spend,” says Polzler. “Growth in market capitalization has generated tremendous wealth in recent years – in fact, both the Dow Jones and S& P 500 reported double-digit growth in 2006. Demand for luxury goods overall – upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway.”

“When it comes to shelter, these upscale purchasers clearly want it all,” says Ash. “Price is really no obstacle when it comes to creating a legacy.” RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca.

Read more about price trends in the GTA




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
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Vancouver and Toronto among world's most "liveable" cities

Vancouver, Toronto among world's most "liveable" cities

VANCOUVER -- Vancouver has been dubbed the most "liveable" city in the world for the fifth year in a row.

According to the British-based Economist Intelligence Unit, an Economist magazine affiliate, Vancouver offers the most exceptional quality of life of any of 132 cities polled this year.

Toronto placed fifth.

The survey rates cities on their attractiveness to business travellers.

Last year, an article in The Economist described Vancouver as a troubled city where "homeless panhandlers yell at theatre-goers, while young addicts deal drugs on street corners."

But that wasn't enough to knock Vancouver off the top, primarily because Vancouver is not considered to be at risk of a terrorist act like some U.S. and European cities.

The Economist noted that Vancouver has low crime, little threat from instability or terrorism and highly developed transportation and communications infrastructures.

By comparison, megacities such as New York, Tokyo, London and Paris suffer from "big city buzz," it said.

"Traffic congestion and higher crime rates associated with large urban centres have to some extent offset the obvious cultural gains of living in such location," the report stated.

"This is also compounded by fears that large centres like London and New York will remain targets for high-profile terror attacks."

No U.S. cities made it onto the Economist Intelligence Unit's top 10.

Read more about why Mississauga is such a great place to live



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

How much does that $200,000 home really cost?

How a $200K home costs $400K
Do you know what your mortgage costs?

The No. 1 financial tip I can dispense is to pay off your mortgage as soon as possible. This may not be as exciting as investing in emerging markets or hedge funds, but it's the most important tip you'll ever get.

Yet, more than half of Canadians underestimate how much home mortgages really cost. According to a survey released last week, GfK Roper Public Affairs & Media found 45% of Canadians don't realize how much they pay in interest payments over the course of a traditional mortgage. Only 20% correctly answered they'll end up paying 150% to 200% of a home's price over a 25-year amortization schedule.

Thus, with a 6.43% fixed mortgage, a $200,000 house will cost almost $400,000.

How can this be? In the early years of an amortization, most of your monthly payments goes just to interest -- if you set things up the way the bank wants you to. Under the guise of making your payments "affordable," you'll barely make a dent in reducing the principal on the loan.

This is a mug's game. What you need is higher and more frequent payments: The more you pay, the more you're paying down the principal and the less interest you'll be shelling out down the road.

The survey found the misperception is the same for both homeowners and renters: only 20% of either group knew how much mortgages really cost.

If anything, homeowners are getting more ignorant. The rise of interest-only mortgages or 40-year amortization periods can only be possible in a world where consumers are oblivious to the arithmetic of compounding interest.

Alan Silverstein, a real estate lawyer and author of The Perfect Mortgage, estimates that on a $100,000, 6% mortgage amortized over 25 years, homeowners pay an extra $91,940 in interest. The monthly payment is $639.91.

The lure with longer amortization is that the monthly payments are lower. What they don't go out of their way to tell you is those payments will drag on much longer and cost you even more interest in the long run. As Silverstein says, extending the amortization is "penny wise, pound foolish."

Thus, a 30-year amortization at 6% results in lower monthly payments -- just $594.82 -- but total interest jumps to $114,136.

Move out to 40 years and the monthly payment drops even more, to $545.09. But the total interest paid over those 40 years spikes up to $161,642, or more than 150% of the original price of the home.

In other words, with a 40-year amortization, the $100,000 home ends up costing $261,642. And, as Silverstein notes, you'll have to pay all that interest in after-tax dollars, so you'll have to earn perhaps 40% more than the $261,642 to carry that debt.

The reductio ad absurdum of this is interest-only loans, where not a penny of your payment goes to the principal. You'll be paying forever. This may make sense in the United States, where mortgage interest is tax deductible, but it's lunacy in Canada.

Remember the name of the game is paying down the principal. You do this by shortening -- not lengthening -- the amortization period, and increasing -- not decreasing -- the frequency of payments. Typically, once a year, you are allowed to give the bank a lump sum of 10% or 15% of the outstanding principal. This is a great but unappreciated benefit --all the payment goes directly to the principal, speeding the day when you are mortgage free.

Read more about How to Pay off your mortgage quicker



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

Buyer Agency in the GTA

“Working with a buyer's agent is like having a real estate advisor, a home finder and a financial consultant--all for free!”

Until recently, real estate agents were legally bound to represent the seller's interests in a real estate transaction, whether they were the "listing agent" or the agent who helped the buyer find the home.

That's all changed. Today, buyer's agents not only help buyers find homes, they can help negotiate price and contract terms on the buyer's behalf; provide information about a home, the sellers, previous offers and counteroffers; and help arrange for financing, among other services. In almost all cases in our area the buyer's agents are paid from the sales commissions offered by sellers.

Read more about Buyer Agency



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

Where is the market heading? In light of increased mortgage interest rates.

I received another email question today and thought I would post my long-winded answer below and share my thoughts with you too.

Enjoy! Mark

The question was:

Just wondering what is happening in the market after interest rates went
up.

Is there a lot of Townhomes on the market and are prices coming down.
Just wandering if is a good time to invest again.

Thanks

A.

Here's my answer:

Hi A.,

The market is quite fast these days. Normally, it slows down in the summer, but this summer has been quite active. Average prices are down a couple of percent which is typical for this time of year, but the volume of sales is hitting records. See the link below. Normally there are about 40-50 townhomes in Erin Mills for sale at any one time, but there are only 34 right now and many of them are conditionally sold.

Yes, this is a very good time to invest.

I realize the rates have increased but only marginally and it will likely only be short term. We are going short on all of our mortgages, time proves short term is by far the better option, see here, of course probably until I follow that method! :-))

There are not too many major scenarios that will cause real estate market to tank. One scenario is major global catastrophe or war or terrorist act. All could cause sudden and major drop in market, but the stock market would take a huge hit too. So would our entire economy, so all things being equal, anything major will affect everything, so real estate should still be a good long term investment. Time has proven real estate will recover and then some, so I am not worried, besides, it would just mean we get less rent, if we don't have to sell, all is fine, but more properties!

Another thing that could happen is that interest rates continue to climb. Once they reach 7 or 8 percent the economy will slow and then rates will stabilize and/or come down again. This may only last a year or two and then the economy will settle down again. Increasing rates certainly cut out the very bottom entry level buyers, but there seems to be enough buyers out there to sustain and continue to cause prices to rise and record sales month after month.

Another possibility is the US economy continues to be bad or gets worse. Although it used to be that "if the US got a sniffle Canada would get a cold or the flu", no longer seems to be the case. Our marketplace in the GTA, Ontario and Canada seems to have been insulated from events in the US since about 911 and seems to be able to sustain itself regardless of what happens to our friends south of the border.

Oil prices rise to $100 or more per barrel. Again, yes, this will have an impact on our marketplace, but maybe only short term. The demand for gasoline seems to be completely inelastic, regardless of how high gasoline and oil prices rise, we still drive large vehicles and conserve very little. We may complain like hell about the price at the pumps, but we pay it and keep driving.

US election years have almost always caused our market to slow, EXCEPT in 2004. Thus, it's your guess whether our market and economy slows next year or not.

Un-Employment rates rise, due to dollar, economy or overseas markets could cause our market to slow, people spend less money and the economy stalls, again, this would affect all markets, not just real estate.

Another scenario is that the baby boomers all get old in the next ten years and sell off their real estate and/or give it to their kids who cash out. Either way, if a flood of listings were to come on the market it could affect our prices in the short and long term. Personally, this does not worry me. There seems to be enough people out there to absorb any increase in inventory, but only time will tell on this one. I believe it will be much more gradual than people think. Fractional ownership worries me more than the boomers cashing out. I may be wrong on this and I've not researched the success or failure of fractional ownership in other parts of Canada or the world, but if time shares are any indication, I think that this may hurt more people than help them in the long run.

At any rate, these are some of the scenarios that the doomsayers are predicting and hopefully none of them will come to fruition and even if they do, I feel they will have less impact on our real estate market than some think.

There are other possible scenarios, I would like to hear your feelings and ideas, but these are some of the major reasons for large price swings in the market in the past and could be for the future too.

If history repeats itself again this fall, prices will likely escalate again in mid to late September until middle of November, see the graph here, so make your purchase soon or wait until December 10th to purchase and hope there are some listings on the market at that time that you like!

In summary, and I know it sounds corny, I still go by the old adage that the best time to buy real estate is yesterday.

Thanks,
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

Canada’s economy still has solid momentum

Canada’s economy still has solid momentum
Canada’s economy enjoyed strong momentum going into the second quarter, but mixed
data for April and May resulted in a downward revision to the market’s forecast for the degree of monetary policy tightening in the pipeline.

The pace of job creation paused in April and May, although the unemployment rate held at its 33-year low and wage growth firmed, signalling that labour market conditions are tight. April’s headline numbers in the manufacturing, retail and wholesale reports were disappointing, although manufacturing and retail activity actually firmed in the month after adjusting for price changes; only wholesalers saw a big dip in sales.

Real GDP growth flattened out in April compared to the rapid gains in February and
March, but even with only a modest pick-up in May and June the economy is on track to grow at close to its potential rate in the second quarter. After the strong increase in the first quarter and with the economy already operating in a state of excess demand, a trend like increase in the second quarter spells no relief from the upward pressure being exerted on prices. This means that the Bank will have to raise the overnight rate if the mediumterm
inflation target is to be met.

See how the TREB Average Prices have escalated over the past 10 years



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
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Mortgage Rates to Remain Historically Low

Mortgage Rates to Remain Historically Low

A combination of a strong Canadian dollar vis-à-vis the U.S. dollar and modest GDP growth will help keep Canadian interest and mortgage rates low over the remainder of this year and in 2008. One, three and five-year posted mortgage rates are forecast to be in the 5.75 - 6.75, 6.00 - 7.00, and 6.25 - 7.25 per cent ranges respectively over the rest of this year and in 2008.

Mortgage rates have moved slightly higher so far this year and are expected to drift-up modestly in the first half of 2008. However, while mortgage rates won’t increase much, higher house prices will push mortgage carrying costs higher. This will ease housing demand, particularly for first-time buyers.

MLS price growth will remain strong in 2007 at 9.6 per cent, pushing the average price to nearly $303,500, reflecting continued price pressures in western Canada. In 2008, the average MLS price will reach about $318,400, an increase of 4.9 per cent.
Source: CMHC - www.cmhc.ca

Most buyers are first time home buyers

Most Intending to Buy a Home in 2007 are First-Time Home Buyers
According to CMHC’s newly released Renovation and Home Purchase Report - Major Market Highlights, a large share of intenders will be first time buyers.

Close to half (48 per cent) of purchase intenders will be first time buyers with the majority of first time buyers between the ages of 25 and 34, with a household income between $80,000 to just under $100,000.

How do home buyers intend to finance their future purchase? Over half of potential home buyers are planning to make a down payment of less than 25 per cent of the expected value of their purchase. The main sources of down payment funds are household savings for 37 per cent of potential home buyers, while equity from the present/previous residence is also a popular option with 27 per cent.

Housing Starts Decrease in June
The seasonally adjusted annual rate of housing starts was 225,500 units in June, down from 235,200 units in May. “Following a significant increase in May, the volatile multiple segment lost most of the ground it gained in June,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Although housing starts will remain high in 2007, they are expected to resume a gradual decreasing trend. This is confirmed by the single detached component, which is slightly below the levels of the last two years.”
Want to read more about housing starts? Visit http://www.cmhc.ca/en/corp/nero/nere/2007/2007-07-10-0815.cfm

Read more about Mortgage Interest Rates




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
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How to Increase Your Home's Value

How to Increase Your Home's Value

Like most people, your home is probably your single largest investment. While the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth.

First, you need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.

In other words, it's best to keep changes simple.

Here's a list of remodeled projects that buyers are likely to find valuable:

Add a bedroom: Three- and four-bedroom homes are most desirable.

Install a master bathroom: When a bedroom has a bathroom, it means extra value.

Install a new shower: A new shower says a modern home.

Change your fixtures: Get a faucet that adds a decorative element to the bathroom.

Re-grout the tile: If the tiles are in good shape a new grouting does wonders.

Install new kitchen cabinets: Even just a paint job and some new handles will give your cabinets a fresh look.

Improve functionality: If you've got the space, an island is the way to go. New appliances make a difference too.

Expose the floors: Remove old carpet and show off the original floor. If you don't have hardwood floors, consider new carpeting.

Install new doors: Doors set off a room and make a great difference.

Paint the interior: A new paint job speaks volumes. Good colors to use are white, off-white, and a light yellow.

Add new light fixtures: Replace any that are damaged or out-of-style.

Add a fireplace: Even if you don't plan on using it much, it adds great value.

Take advantage of unused or underused space: If you can convert a basement or attic into a useful room, do it.

Landscape: A few strategically located plants and a neat-looking yard will impress.

Add a deck: It's a great use of exterior space because it increases your total entertainment area.

Dress up your porch and entrance: A freshly painted door with a new door handle can make a great first impression.

Replace the windows: New windows not only give your home a new look, they can also lower your energy bill.

Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Quick Home Improvements
(Even You Can Do!)

Outside:

Sweep all walkways and sidewalks.
Remove newspapers, bikes and toys.
Park extra cars away from the property.
Trim back the shrubs.
Clean windows and window coverings.
Keep pet areas clean.
Make sure roof and gutters are in good condition.
Mow the lawn more frequently and plant flowers.

Inside:

Kitchen and bathroom should shine.
Put dishes away.
Clean and/or vacuum carpets and rugs.
Place fresh flowers in the main rooms.
Make beds and put all clothes away.
Open drapes and turn on lights for a brighter feel.
Straighten closets.


More Ideas and Suggestions



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
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Advantages of New Home and Resale Home purchase

The Advantages of a New Home

Tips and discussion

NEW: If you purchased your new home prior to July 1, 2006 and will be taking possession after July 1, 2006 click here for transitional GST information and rebate form from the Canada Revenue Agency (Posted June 2006)

If a home comes up for sale in a mature neighbourhood where there’s an established sense of community and a history of strong property values, buying a resale home can be a good choice. However, there are several reasons why buying a new home is often the wiser choice.

We just don’t build homes the way they used to – and that’s a good thing! Today’s homes are built with state-of-the-art technology using lowmaintenance and durable building materials, to save you time and money.

From vinyl-clad windows to aluminum soffits to clay brick, a modern home requires far less upkeep than a resale home, even a fairly modern one. Advanced wiring and Internet-ready cabling means you can work out of your new home about as efficiently as you can in many office buildings.

Modern home design is lightyears ahead of older homes. Indeed, light is one of the main design features of today’s homes. Windows are bigger and better and they’re everywhere. They flood the interior with natural light without letting in the cold or letting out the heat.

Today’s homes also offer floorplans that are very functional, accommodatingyour needs, not the lifestyle of some mythical family from bygone generations. Open concept plans give modern homes a light and airy feeling, yet they can be informal or formal, casual or elegant.

Moreover, you can get exactly what you want, because many builders will customize the model you choose, allowing you to create rooms or styles that meet your personal needs. Options and upgrades provide further flexibility. Modern designs are also very clever when it comes to providing storage space, the lack of which is one of the biggest drawbacks of older homes.

Better insulation, higher efficiency heating systems, better windows and doors, overall tight construction and improved ventilation are hallmarks of homes built in the last few years. That means lower energy costs and a more comfortable home all year round.

With the purchase of a new home also comes peace of mind. Every new home sold in Ontario is covered by one-, two- and seven-year warranties, described in detail later. Safety is also improved, with features such as smoke detectors wired into the home’s electrical system; or video surveillance in condos.

Finally, many new homes are built in new communities, where there is consistent design among the homes and careful attention paid to public elements such as landscaping and street lighting. New home communities generally offer parks, schools, shopping and recreational amenities close at hand.


Advantages of a Resale Home

The major advantage of buying a resale home is that you are moving into an established neighborhood. Your lawn is green, your shrubs are growing, your driveway is paved and your trees are well enough established to give your street a feeling of permanence. Often, most extras are already present, such as appliances, curtains, drapes, central vacuum, humidifiers, decks, fencing, electric garage door openers, finishing the basement, walkways, outdoor lighting, indoor light fixtures, trees, shrubs, gardens and landscaping, children's play sets, swimming pool, air conditioning, etc.

In terms of investment, a resale home will often give you far more value than a brand new home. Many owners put tens of thousands of dollars into home improvements ranging from small items, such as landscaping, to major projects, such as a finished basement or any of the items above. Although these improvements will make the home more attractive to potential buyers, they may not increase the market value of the home. A $35,000 swimming pool or a $15,000 finished basement or even $5,000 worth of landscaping may make the home very attractive. However these additional costs incurred may not necessarily increase the market value of a home, especially if you have to sell it at a time of year where these major items add little or no perceived value. The buyer gets the home at its real fair market value, which is based on comparable homes for sale or sold in the neighborhood. All those expensive extras may be included in the home with benefit to the buyer at little or no extra cost. This can be a substantial savings over buying a new home.

With a resale, the vendor's asking price is almost always negotiable downwards unlike the builders list price which is usually firm. Any extras or changes are added to the list price of a new home and add up quickly.


Read an indepth article about buying new or resale home




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
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Mortgage Fraud, Common Methods to Dupe You and Your Money

Common forms of mortgage fraud
April 2007 ET Pat Curry

Mortgage fraud can take countless forms, says Ann Fulmer, an attorney, mortgage fraud investigator and founder of the Georgia Real Estate Fraud Prevention and Awareness Coalition. Homebuyers can run afoul of the law under a broad category called "fraud to qualify" or "fraud for house." In these cases, the borrower typically provides false information, such as income, source of down payment, employment, or intent to occupy the property.

Or, the fraud might be in the form of what's called a silent second. The seller lends the buyer money for a down payment through an unrecorded second mortgage. When this happens, the lender thinks the borrower is investing his own money. Why would lenders care? "The critical issue is the risk the lender is taking," Fulmer says. "It misrepresents the financing picture of the borrower."

Whatever the form of fraud, the goal is the same: to obtain a mortgage for which the borrower would not legitimately qualify. In these cases, the borrower wants the house and plans to repay the loan.

Then, there is "fraud for profit," a much more sophisticated version of mortgage fraud that involves industry insiders, such as real estate agents, appraisers, lenders or closing attorneys.

While there are an infinite number of variations on fraud for profit, these are among the most common:

Flipping. This term has gotten confused because of TV shows, such as "Flip This House," which isn't flipping at all. Those types of deals, in which houses are acquired legitimately, improvements are made and the houses are resold quickly, are known in the business as quick turns. "There is nothing wrong with that," Fulmer says. "It becomes illegal when people start lying about the improvements, the value of them or (lying) to qualify the buyer." Flipping involves a fraudulent appraisal and a grossly inflated sales price.

Straw buyers. One of the most frequent types of fraud occurs when "straw buyers" are used to hide the identity of the true borrower, who would not qualify for the mortgage. "The perpetrators use a straw buyer because they have good credit and can get the loan," Fulmer says. Straw buyers may be duped into thinking that they're investing in real estate that will be rented out, with the rental payments paying the mortgage. In fact, no payments are made and the lender forecloses on the loan. Or, sometimes, straw buyers are in on the scam and are getting a cut of the proceeds. "People may see this as a way to make a lot of money," Fulmer says. "In one case, a number of straw buyers purchased numerous properties and received boatloads of money back."

Appraisal fraud. Appraisal fraud is a part of most mortgage fraud scams. A dishonest appraiser inflates the value of the property. When the seller gets the check at the closing for a bogus amount, he pays off the appraiser and anyone else involved in the scam. Usually, the borrower doesn't make any payments and the house goes to foreclosure.

Foreclosure schemes. These are particularly evil because they prey on people with big enough financial problems that they're in danger of losing their home. A homeowner in the early stages of foreclosure may be contacted by a fraudster who says he can help the homeowner get rid of his debt and save his house for an upfront fee, which the fraudster takes and then disappears. In another scheme, a homeowner is approached by a con artist who offers to help them refinance the loan. "They sign all these documents and find out later that they actually sold the house -- to the fraudster. Then they face eviction. That's a lovely one." Read more about foreclosure and power of sales

Read more about mortages

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
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Are Boomers in No Hurry to pay off their mortgage?

Boomers in no hurry to pay off mortgage

In contrast to other age groups in Canada, the boomer generation of homeowners isn’t as concerned about being mortgage-free when they retire, according to the latest findings in a homeownership survey. While 66 per cent of all Canadians think it's very important to have their mortgages entirely paid off by the time they retire, this sentiment decreases with age, dropping to 59 per cent among those aged 55 plus -- the lowest percentage among all age groups.

More than a third (37 per cent) of the 55 plus age group still has a mortgage on their homes, compared to 71 per cent of those aged 45-54 who have a mortgage -- an indication that many older Canadians are successfully paying down their mortgages leading up to retirement. While the national average remaining on Canadians’ mortgages stands at $105,557, Canada’s boomers have an average of $80,331.

“Most Canadians still think it’s important to pay off their mortgage by the time they retire, and we see a huge jump in those that have paid it off once they hit 55. Yet, it appears that the level of importance in being mortgage free in retirement is decreasing for boomers,” says Catherine Adams, a vice-president of home equity financing.

The poll also showed that boomer homeowners with a mortgage have the highest comfort level of all age groups with variable rate mortgages.

Almost one-third (30 per cent) of homeowners aged 55 plus who have mortgages said that when they next renewed their mortgage, they would opt for a variable rate option -- a higher percentage than any other age group. “We found this particularly interesting, as older Canadians would recall the double-digit interest rates of the 1980s, and might be more inclined towards the security of a fixed rate,” says Adams. “But boomers also have enough mortgage experience to have uncovered one of the secrets to saving money -- they know that variable rates often bring significant savings in interest costs over the course of a mortgage, while at the same time offering the certainty of predictable payments.”

As expected, boomers are also less likely to want to upsize their homes when considering a future property purchase. Thirty-seven per cent of those 55 plus who intend to purchase a home in the next two years indicated they would prefer a smaller home, while 40 per cent would prefer the same size home. Only 22 per cent are looking for a bigger home. At 15 per cent, both younger (18-24) and boomer home buyers (55+) are more likely to be thinking about buying a condo or loft, compared with seven to nine per cent of those aged 25-54.

“We’re definitely starting to see the influence of boomers on the housing market,” says Adams. “Boomers may well be seeking the lifestyle flexibility to do some of the things they’re looking forward to in their retirement years, without the property upkeep concerns of a larger home.” Article courtesy of R.Paul Chadwick Manager of Residential Mortgages, TD Canada Trust

Read how to pay off your mortgage faster



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
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Will Canadian House Prices Will Double in the Next 20 years?

Canadian House Prices Will Double in the Next 20 years, Says Economist
by Jim Adair

A new report, Much Ado About Nothing: Canadian House Prices Not Based on
Demographics Alone, predicts that Canadian house prices are likely to
double in the next 20 years, and not drop as some analysts have feared.


Benjamin Tal, senior economist with CIBC World Markets, says that while
cyclical forces will continue to influence the housing markets during the
next two decades, "our finding is that the widely held fear of a
softening in housing market activity and structural downward pressure on
prices due to the changing Canadian demographic landscape are largely
unsubstantiated."


Tal says that when examining how demographics will impact the market,
"what counts is not only the change in population of a given age group,
but more importantly, the level of housing market activity among those
age groups." For example, he says that first-time buyers in the 25 to 44
age group account for almost 68 per cent of all home purchases. His study
shows that group will decline by 167,000 between 2007 and 2026, which is
such a "marginal" change that it will not impact housing demand in any
significant way.


The largest population decline in the next 20 years will be in the 45 to
54 age bracket, but this group accounts for only 12 per cent of total
housing demand. "And even that limited decline in housing demand will be
partly offset by the strong increase in the age group 55 to 74 and its
surprisingly high housing market activity," says Tal. Much of the
property purchased by this group is in the recreational and investment
markets.


Although an increasing number of people will downsize to smaller houses,
the trend may not be as pronounced as some people predict. Tal's study
shows that many baby boomers will stay in their current homes. Less than
one-third of those households of people aged 55 to 75 have moved in the
last six years. "What's more, this low proportion might be even lower in
the coming 20 years as those baby boomers have more financial assets and
are generally in better health than their parents," says Tal.


Although the boomers who do downsize will create more demand for
condominium units, "those who expect a significant rise in the price of
condominiums will be disappointed," says Tal. "Even if we assume that a
full one-third of Canadians age 55 to 75 will move to multi-units (a very
strong assumption), this means that, on an annual basis, builders will
have to increase supply by 14,000 units, compared to the previous cycle
(1987 – 2006) in order to eliminate all the potential price impact of
that extra demand." He says that's not a tall order, given the number of
condominium developments underway.


The study says the combination of fewer first-time buyers and the
downsizing and liquidation by the older population in the next 20 years
means that the housing market will have an extra supply of 250,000
houses. "While at first glace this appears to be a large number, it means
an average extra supply of only 12,500 homes a year during that period,"
says Tal. The previous 20 years saw an average of 180,000 starts per
year, so builders would only have to drop to just under 170,000 starts
"to completely eliminate any negative demographic influence on house
prices," he says.


Many other factors can have an impact on the housing market, but Tal says
interest rates will not be a huge factor in the coming 20 years. Interest
rates have been at historically low levels for the best part of a decade,
and Tal says the anti-inflationary nature of globalization will keep
inflation -- and interest rates -- at about the same levels.


Another reason why the housing market will stay strong is immigration.
Two-thirds of Canada's population growth since 2001 has been due to
immigration, and government policies could allow for even more in the
future.


Tal also points to the changing Canadian mortgage market as a possible
boost to housing in the coming years. Unlike the United States, which has
had products such as interest-only mortgages and extended amortization
periods for some time, Canada is only now discovering these products.
"One can argue that there is some room for these products to grow without
triggering a significant increase in the overall risk profile of the
Canadian mortgage market," Tal says.


"We project that the average real house price in the coming 20 years will
mirror the performance of the last 20 years," he says. "And assuming a
two per cent annual inflation rate, this means that house prices in
Canada, instead of falling, will in fact double by 2026." He says the
increase will not be symmetrical, and large cities will see even larger
increases in home valuations.


Article courtesy of R.Paul Chadwick Manager of Residential Mortgages, TD Canada Trust

See average prices here



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
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MARKETING TIPS For a Newly Listed Home

MARKETING TIPS For a Newly Listed Home

Every home seller can benefit from some simple tips before putting his residence on the market. For example, a pre-listing inspection could help identify the components of the house that are most in need of repair — which will make the home unattractive to potential b u ye r s. Homeowners who hire a qualified inspector will find it well worth their investment. Here are the common problem areas that are typically identified by home inspectors. Early correction of these problems will increase the house’s marketability (and its selling price!).

1. CHECK THE MAJOR SYSTEMS. After size, style, and location, nothing will sell a house quicker than the good condition of the home’s basic structure and major mechanical systems. A pre-listing inspection of visible and accessible home components can reveal problems in the structure and systems, and an inspector will recommend the necessary repairs. The most important components to consider are the roof structure and covering; the foundation, basement or crawl spaces; the central heating and air-conditioning systems; the electrical and plumbing systems.

2. MAKE MAINTENANCE IMPROVEMENTS. These basic, simple, and usually inexpensive improvements will make the home more appealing to buyers. After all, first impressions count, so make the home “drive-by perfect” by trimming trees and shrubs, applying new caulking or weather-stripping as necessary, cleaning gutters of leaves and debris, and making sure all windows are free of cracks. Inside, the homeowner should replace bathroom caulk or grouting, ventilate closed basements and crawl spaces, re-grade the soil around the foundation to keep water away from the house, replace dirty filters in the climate control systems and have the systems professionally serviced, and maintain chimneys, having them professionally cleaned and installing hoods or caps as needed.

3. PAY ATTENTION TO DETAILS. Fixing minor problems as they occur will indicate “loving care” to the potential buyer. The homeowner should repair leaky faucets, tighten loose doorknobs, replace damaged screens and windows, repair driveways, repaint walls and ceilings, and make sure all railings are secure. These simple steps will make sure the buyer doesn’t leave with a bad impression.

4. TAKE SAFETY PRECAUTIONS. Inspectors pay attention to the items in the home that will help protect the dwelling and its occupants. Homeowners should install a smoke detector on each level of the home, keep flammable products away from water heaters, general heaters and fireplaces, and install Ground Fault Circuit Interrupters in wet areas, such as the kitchen counter tops and bathrooms.

5. MAKE COSMETIC IMPROVEMENTS. In the world of real estate, looks do count, so homeowners should do all they can to assure their home is neat and attractive. Make sure the lawn is mown regularly, exterior walls and trim are clean, and the house is neat. Open windows and shades to let in light (which will give the home a bright appearance) and make sure those “hot spots” that buyers inspect closely — like kitchens and bath-rooms — are up to the “white glove” test. The homeowner should have house records on hand to answer questions easily and confidently. Appliance receipts, service records, and warranties should be easily accessible, as should information about all major components (heating, air-conditioning, carpeting, etc.). Also have copies of the latest bills on hand to give prospective buyers an idea of their cost.

Energy Systems

It is important for the homeowner to be knowledgeable about his energy systems. For example, he should not give the “go ahead” to landscaping without checking the placement of the plants in regards to his outside air conditioning unit. Manufacturers agree that plant life should not be any closer than 18" from the unit in order to allow the air conditioner to take in and let out air efficiently. If the air does not circulate properly, the unit could build up heat and require professional service. It is not necessary to cover an outside unit. Sometimes rain on a unit is beneficial, as it helps to keep the unit clean. Heat pumps, which run all year long, should never be covered. All A/C and heating equipment is rated as to efficiency. The higher the rating, the more energy efficient the model is. For a cooling system, the rating is a Seasonal Energy Efficiency Rating (SEER). The heat pump rating is Heating Seasonal Performance Factor (HSPF) and gas furnaces are rated with Annual Fuel Utilization Efficiency (AFUE). Sometimes humidity in an area is a bigger problem than heat. The best way to control excessive humidity is to purchase a system that runs longer at lower speeds. Variable speed air handling equipment keeps the air circulating against the cooling coil. This removes much more moisture than conventional systems, and it’s more efficient, too, because at lower speeds, the variable speed motor uses much less electricity than conventional motors.


Article courtesy of Door2Door Homes Inspections Siraj (AJ) Andani 416-728-9110


More information on Home Inspections


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

Where can I find Power of Sale, Foreclosure and Tax Sale properties and information?

Another question that I receive is where can I find Power of Sale, Tax Sale and Foreclosure properties and information?

I am very familiar with Power of Sales, Foreclosures and Tax Sale properties. Have you read the information on my site at these pages? http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure-FAQ.htm

Are you signed up to receive my power of sale properties? http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

In my experience I have seen that people spend many weeks and months researching and learning about power of sales properties and then decide not to buy one due to the many uncertainties involved and the fact that you need the resources at hand to do the renovation work. Don't get me wrong, some people buy them successfully, just not that many.

Again, in my experience, there are two things you should do in real estate. Buy as expensive of a principal residence as you can to maximize your tax free asset. The other best thing to do is buy and investment property and hold it for at least 5 years to earn fairly easy profit.

I will help you in whatever area you decide.

Thank you,
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

Agency in a real estate transaction - who is acting for who?

Agency in a real estate transaction explained

When working with a REALTOR, it is important to understand who the REALTOR works for. To whom is the REALTOR legally obligated?

In real estate, there are different possible forms of agency relationship:

1. Seller representation

When a real estate brokerage represents a seller, it must do what is best for the seller of a property.

A written contract, called a listing agreement, creates an agency relationship between the seller and the brokerage and establishes seller representation. It also explains services the brokerage will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a seller my have.

A seller’s agent must tell the seller anything known about a buyer. For instance, if a seller’s agent knows a buyer is willing to offer more for a property, that information must be shared with the seller.

Confidences a seller shares with a seller’s agent must be kept confidential from potential buyers and others.

Although confidential information about the