If you are buying a home, you may be wondering whether it’s better to lock in a fixed rate in case rates continue to go up, or choose a variable rate that floats with the prime rate. Similarly, if your existing mortgage is variable, you may be wondering whether now is the time to lock in.

Mortgage rates are difficult to predict. It is best to base your decision on your personal situation and comfort level, rather on economic expectations.

Going variable

Variable-rate mortgages can be attractive - the interest rate is lower than for a fixed mortgage of similar size and duration.

With some mortgages, as rates fluctuate, so does the amount of your mortgage payments. Or, with set payment amounts, the portion of the payment that covers your mortgage principal will fluctuate.

In an environment of falling rates, you’ll pay down more principal and pay less interest. But if rates go up, your principal payments will shrink and it may take you longer to fully pay for your home.

Should you choose a variable-rate mortgage? If you can tolerate the uncertainty, the variable rate could save you money over the long term.

Locking in

When you lock in to a fixed-rate mortgage, the interest rate will be higher than for comparable variable-rate products. The benefit, however, is that your rate is fixed for the term of the mortgage.

Even if rates in general rise substantially, your rate is guaranteed not to change. From the moment you lock in, you’ll know exactly what your payments will be and how much of the principal will remain at the end of the term.

Should you choose a fixed-rate mortgage? If fluctuation rates are going to keep you awake at night, then a fixed-rate mortgage may be worth the peace of mind it can give you.

Your decision

Ultimately, the decision to choose a variable or a fixed-rate mortgage is as personal as choosing the right home. It should always be made with informed advice from a professional, who can help you evaluate the options based on your unique circumstances.

For any questions about mortgage financing, programs, options, interest rates etc., feel free to contact Danuta at 1-800-605-6154

Written by Danuta Levitzki.
Conseillère en Financement Hypothécaire | Mortgage Loan Specialist
Visit her website

ShareThis

Related Articles

• Why Deal with a Mortgage Broker?
• Your Mortgage Broker: A Source for Financial Solutions
• Morning Interest Rates Headlines
• Quebec Homeowners Intend to Pay off Mortgage Quickly
• Interest rate cut will help Canadian home owners and buyers
• Subprime mortgage news update

Asking Price: $239,000
Property Type : Triplex
Bedrooms : 2
Interior Floor Space : 800 sqft
Built in : 1910
Location : Central - East (Montréal)
City Evaluation: $228,200

Although the information sheet describes the location as “Central”, we’ll call it Central-East, since the near intersection are borderline Hochelaga-Maisonneuve area. And we ALL know that’s not really central “downtownish”, is it?

This little triplex with its funky looking doors is now listed under foreclosure properties by RE/MAX 2000.
The MLS sheet does not mention it, but it has a yearly gross revenue of $17,000 more or less. Good? Well, that will depend on the property’s expenses, which there is no mention of it either.

There are also no additional images of this property. But if you are so keen to know more, you can  contact us for more Repossession listings in the area.

Stay tuned for more listed foreclosure properties: Subscribe to the Montreal Real Estate Blog

ShareThis

Related Articles

• Repossession du Jour: Penthouse in St Laurent Street.

Rate Hold
The length of time, typically between 60 and 120 days, that a lender will guarantee a loan’s interest rate once you are locked in.

Rate Lock-in
A written agreement or contract in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set time period.

Real Estate Agent
An individual who is licensed to represent a buyer or a seller of real estate in a sales transaction. Real estate agents typically work on commission.

Real Estate Attorney
An attorney or lawyer who specializes in real estate transactions. This includes dealing with property tax issues and the transfer of land and buildings.

Real Estate Broker
An individual who is licensed to represent a buyer or a seller of real estate and collects commissions for the work. Most brokers have agents working for them and they collect a portion of those commissions in exchange for providing office space, marketing, and other overhead.

Real estate brokerage
The professional activity of real estate brokers and agents. Brokerage transactions and professional acts carried out by real estate brokers and agents concerning the purchase, sale, rental or exchange of immovable properties. Profession which can only be practiced by holders of a certificate issued by the Association des courtiers et agents immobiliers du Québec.

Real Property
Permanent, non-movable property, such as land and buildings.

Realtor
A real estate broker or an associate that holds an active membership in a real estate board.

Recognized Gain or Loss
The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.

Refinance
To arrange a new loan for an increased amount whereby the old loan is paid off from the proceeds of the new loan.

Refinancing
The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.

Refund
1. To give back, return, or repay (typically money).
2. The excess of your withholding and estimated tax payments for the year that you paid over your tax liability. The Federal Government then issues a tax refund if you paid more taxes over the year for your tax bracket.

Registered Education Savings Plan
Education savings plans that grow tax free until a child is ready to pursue a post-secondary education, at which time the money is withdrawn to help finance the costs.

Registered Retirement Savings Plan (RRSP)
A savings plan introduced by the Federal Government to encourage Canadians to save money for retirement. The investment and the interest earned on the RRSP is sheltered meaning it will not be taxed as long as the funds remain in the plan.

Reliction
An increase in the amount of land that occurs when a body of water (such as a river or sea) permanently withdraws.

Relocation Benefits
Monetary assistance and other considerations given to employees who must relocate at their company’s request. This can include reimbursement for packing and moving, house-hunting trips, and temporary housing/storage expenses.

Relocation Company
A company or business that specializes in providing assistance to individuals who are being relocated by their employers.

Remaining Balance
The unpaid or remaining principal left on a loan.

Remaining Term
The length of time remaining for a borrower to pay off the rest of an installment loan as scheduled.

Renewal
Extending an unpaid loan with the original lender when the terms of the loan expire.

Repayment Period
With a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.

Repayment Plan
Modifications made to the repayment terms of an existing loan after the borrower is delinquent. Often used when the borrower misses payments, but the lender does not foreclose.

Replacement Cost
The amount or cost to rebuild and refurnish with materials and items of similar value. For example, replacement costs are used for insurance purposes in the event of theft or fire when replacing lost items.

Replacement Reserve Fund
Funds that are set aside by a homeowner’s association or condominium board to replace common property, such as playground equipment.

Repossession
If a borrower stops making payments on a property, the lender has the legal right to take back the property.

Resale Value
The price or dollar amount that a property owner is able to negotiate when selling an existing home or property.

Rescission
The cancellation of a contract as agreed by all of the parties involved.

Reserve Fund
Funds that are set aside or reserved by a home owner’s association or condo board for major repairs and improvements to common areas.

Reserves
Formerly required to be maintained by the bank in accordance with Bank Act regulations, but are now phased out.

Resident Alien
A person who is living as a legal permanent resident, but is not a citizen of that country.

Residual Value
The value of the vehicle at the end of a lease agreement which is agreed upon at the time of signing.

Restructured Loan
A mortgage in which basic terms — such as interest rate, term and monthly payment — are altered or restructured to prevent foreclosure on the property. This is not a regular practice in Canada.

Resets
The periodical balancing of an account for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.

Retail Banking
Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.

Retained Earnings
All of the profits or losses accumulated from prior years and from the present year’s income statement, minus dividends paid to you.

Return
Any increase in value, profit, or income that is earned from an investment.

Return on Investment
The gains or profit from an investment that is typically expressed as equity divided by cash flow.

Right of First Refusal
An agreement made by a property owner which gives a specific buyer the opportunity to purchase the property before it is offered to anyone else.

Right of ownership
Recognition which gives the owner of a property the right to use, enjoy and freely and fully dispose of the property, to the extent of the limits and conditions imposed by law.

Right of withdrawal

Privilege which a natural person has to withdraw a real estate brokerage contract for the sell of his immovable within three days following receipt of the contract duplicate signed by both parties, unless there is a written waiver. After this period, if the contract is marked “irrevocable”, it cannot be cancelled under any circumstance nor can the term be changed unless the broker or agent agrees.
Note: The right of cancellation applies when the contract involves a chiefly residential building containing less than five dwellings.

Royalty Income
Payments or money received for the use and exploitation of certain kinds of property, such as artistic or literary works, patents, and mineral rights.

ShareThis

Related Articles

• Real Estate Glossary: Q
• Real Estate Glossary: P
• Real Estate Glossary: O
• Real Estate Glossary: N
• Real Estate Glossary: M
• Real Estate Glossary: L

NOTE: Choosing the wrong mortgage can cost you thousands of unnecessary paid interest money.

Why Should You Go To a Mortgage Broker First?

A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your Mortgage Broker is trained to present your mortgage proposal to obtain the most immediate and positive result.

Example: You don’t call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!

How Do Brokers Get Better Deals Than Many Banks?

Brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources.

Can You Still Go Through Your Bank With Your Broker?

Yes, letting a Mortgage Broker represent you to your own financial institution can often result in a better rate than you could get on your own.

Written by Danuta Levitzki. Conseillère en Financement Hypothécaire | Mortgage Loan Specialist
For current interest rates or to get more information on mortgage financing feel free to visit her website or call direct at 1-800-605-6154.

ShareThis

Related Articles

• Should you lock in your mortgage?
• Your Mortgage Broker: A Source for Financial Solutions
• Homebuyers have more reasons to go green with TD Canada Trust
• Canadian Interest Rates Morning Recap
• Interest rates news headlines
• Today’s Headlines: Interest Rates and Subprime Mortgage

Here is our first contestant: A lovely penthouse located in St Laurent Street.
We won’t give you the exact address BUT we will give you the contact information, so if you are interested, you can do your homework and get back to us with your review.
Fair enough?

Great.

Here are the facts…illustrated.

Asking Price: $ 320,000
Property Type : Condominium
Bedrooms : 2
Bathrooms : 1
Interior Floor Space : 1100 sqft
Built in : 2005
Location : Le Plateau-Mont-Royal (Montréal)
City Evaluation: $268,100

Now, you might think that for a repossession this isn’t the best deal. And you are probably right, but considering the city evaluation against the asking price, there’s only a difference of 52k - more or less. We’d dare to say that there is ample room for negotiation.

The property is listed with Plateau Immobilier INC.(after all, it’s located in the Plateau) you can contact listing agents through this MLS link

or

You can also contact us for more Repossession listings in the area.

And a third option, you can also stay tuned for more foreclosure properties listed in Montreal by Joining the Montreal Real Estate Blog

ShareThis

Related Articles

• Repossession du Jour: Triplex in Central East Montreal

Quit Claim Deed
A general release of all claims or rights to a parcel of land.

ShareThis

Related Articles

• Real Estate Glossary: R
• Real Estate Glossary: P
• Real Estate Glossary: O
• Real Estate Glossary: N
• Real Estate Glossary: M
• Real Estate Glossary: L

• Achat d’un immeuble par un organisme public (gouvernem
• Achat de fermes ou de boisés qui continueront d’être exploités
• Transaction dont le prix de vente est inférieur à 5000$
• Transfert d’immeuble à sa compagnie par un actionnaire détenant 90% des actions dans la compagnie ou vice-versa
• Transfert d’immeuble entre parents ex. :

1. En ligne direct, c’est-à-dire : fils, fille, mère, père
2. Entre conjoints, c’est-à-dire : époux, conjoints unis civilement ou vivant ensemble depuis un certain temps (habituellement 12 mois)
3. Entre beau-père ou belle-mère et gendre ou bru
4. Entre beau-père ou belle-mère et beau-fils ou belle-fille

Lors d’une exonération, la municipalité peut percevoir un montant de 200$ (droit supplétif) ou de 0.5% du prix de vente ou de la valeur de l’immeuble si elle est moindre de 40 000$.

Pour plus d’informations sur les règlements se rattachant à la Taxe de bienvenue ou sur tout autre sujet en immobilier, vous pouvez me contacter directement : Sheila Iacono 514.823.8611.

Ecrit par Sheila Iacono. Agent immobilier affilié.
Royal Le Page Habitaction. Courtier Immobilier agreé.

ShareThis

Related Articles

• Surestimer le prix d’une propriété: risqué!
• Sheila Iacono joins the Montreal Real Estate Blog
• Les Grandes Lignes du Programme d’Accession à la Propriété
• La taxe de bienvenue: C’est quoi et comment la calculer?

The slowdown in price increases resulted from a sharp increase in listings and a slower growth in sales, the report showed. Two new properties were listed for sale for every home that sold through the Multiple Listing Service (MLS) system across Canada in April.

The number of new listings of homes for sale on the MLS of real estate boards in Canada reached its highest level ever in April 2008 at 77,248 units, the report showed. Meanwhile, the number of homes sold during the month came in at 36,614 units in April

The national MLS residential average price rose 4% year-over-year to $317,619 in April 2008. This is the smallest year-over-year price increase in over six years.

Source: CEP News

ShareThis

Related Articles

• Canadian Housing Starts Falls in April
• Royal LePage Housing Report: first quarter 2008.
• Condo Market Forecast: Montreal and Quebec City.
• Quebec Homeowners Intend to Pay off Mortgage Quickly
• RBC Housing affordability forecast for 2008
• Montreal Real Estate Board Report: February 2008

Many people think of a mortgage broker as someone who can help them get a good rate on their mortgage. While this is certainly true, a mortgage broker can also help you with much more than that.

A mortgage broker is a licensed financial professional with whom you can form a long-term relationship that can extend to various types of financing. Here are some examples:

• If you have an upcoming expense, such as sending your child to college or university, your mortgage broker can help you cash out equity in your home or secure a home equity line of credit.
• If you are looking to buy a cabin or lakefront property, a mortgage broker can help you with financing for it.
• Little-known fact: If you are having problems meeting all of your financial obligations, a mortgage broker can help you consolidate your debts by securing a debt consolidation loan, so you have just a single, manageable payment every month.
• If you want to finance a renovation or other major expenditures, your broker can help arrange suitable refinancing options.
• When it’s time to renew the mortgage, your broker can find a competitive mortgage program and interest rate other than your current bank or financial institutions resulting in further savings.
• Mortgage brokers may also be able to give you information about legal services for buying a home and recommend realtors, appraisers, and home inspectors.

Written by: Danuta Levitzki.
Conseillère en Financement Hypothécaire | Mortgage Loan Specialist.
For current interest rates or to get more information on mortgage financing feel free to visit Danuta’s website at www.HYPOTHECA.net or call direct at 1-800-605-6154.

ShareThis

Related Articles

• Should you lock in your mortgage?
• Why Deal with a Mortgage Broker?
• Morning Interest Rates Headlines
• Quebec Homeowners Intend to Pay off Mortgage Quickly
• Interest rate cut will help Canadian home owners and buyers
• Subprime mortgage news update

Moins de gens verront la propriété.

Il y a plusieurs moyens d’offrir de la visibilité à une propriété à vendre. La pancarte À VENDRE, le bouche à oreille, la publicité dans les journaux ou à la télévision et bien entendu, l’internet. La publicité sur internet peut se faire à travers plusieurs différents sites ex. :MLS.ca, les sites des différentes bannières de courtiers immobiliers, les sites de petites annonces et biens d’autres possibilités. Le fait est que la plus part de ces sites fonctionnent avec des moteurs de recherche qui permettent aux utilisateurs de sélectionner leurs critères de recherche. Le prix maximal qui les intéresse est souvent le critère le plus important et fonctionne dans la plupart des cas par tranches de 10 000$ ou 25 000$. Cela signifie qu’un acheteur qui a un budget maximal de 235 000$ pour son acquisition devra sélectionner la tranche de prix allant jusqu’à 240 000$ pour les tranches de 10 000$ ou 250 000$ si ce sont des tranches de 25 000$. Bien sur souvent, les acheteurs sélectionneront un montant un peu plus haut que leur budget mais il est important de savoir que dans bien des cas aujourd’hui, la marge de négociation est étroite dans le cas ou la propriété est listée au bon prix et les acheteurs qui sont de plus en plus informés le savent et limitent leurs recherches à quelques milliers de dollars au dessus de leur budget. Alors imaginez le nombre de clients potentiels qui pourraient se permettre de s’offrir la propriété mais qui risque de ne même pas la voir puisque elle est présentée à un prix qui dépasse la tranche qui les intéresse.

Difficiles d’attirer les offres.

Certains acheteurs verront tout de même la propriété car ils ont un budget plus élevé. Par contre, lorsqu’ils la visiteront ils la compareront à d’autres du même prix mais qui offrent beaucoup plus. Alors pourquoi feraient-ils une offre sur celle-ci si leur budget leur permettre d’acheter l’autre qu’ils ont vu qui est beaucoup plus grande ou qui offre beaucoup plus de luxe ou d’avantages?

Difficiles d’obtenir le financement.

Dans la plupart des cas, la promesse d’achat sera conditionnelle à l’obtention d’un prêt hypothécaire. Les institutions financières ou les compagnies d’assurances prêts procéderont dans la majorité des cas à une évaluation de la propriété. Pour ce faire ils étudieront le marché pour savoir leur degré de risque en cas de mauvais paiement de la part de l’acheteur. S’ils reprennent la propriété et doivent la remettre sur le marché pourront-ils facilement la revendre et récupérer leur investissement? Pour ce faire ils utiliseront les comparables À VENDRE et VENDUS. Cela signifie que même si on réussit à attirer l’attention sur la propriété au point d’obtenir une offre, la transaction risque d’échouer à cause de la difficulté à obtenir le financement.

Risque de faire vendre la compétition.

Les agents immobiliers ainsi que les acheteurs qui sont de plus en plus informés ont accès à toutes sortes d’informations qui leurs permet de comparer les produits. Ça veut dire qu’une propriété dont le prix est trop élevé pourrait être utilisée pour en faire vendre une autre puisque pour la même qualité on peut payer moins cher ou qu’on peut obtenir mieux pour le même prix.

La propriété souffre d’un désintéressement du marché.

Le marché d’aujourd’hui est encore bouillonnant. Tout se passe très vite et les gens y sont habitués. Une propriété ne reste pas très longtemps à vendre. Les acheteurs avertis épluchent le marché à travers des différents moyens qu’ils ont de savoir tout ce qui est à vendre. Ils risquent de voir et de revoir les mêmes maisons à différents endroits et ils sont à la recherchent de nouveauté. Alors même si en cour de route on décide de réduire le prix de vente, le nouveau prix risque de ne pas faire beaucoup de vagues car la propriété ne sera quand même pas une nouveauté. Aussi plusieurs acheteurs auront des craintes lorsqu’il s’agit d’une propriété qui est sur le marché depuis longtemps : Pourquoi cette maison n’a pas trouvé preneur? Il doit y avoir quelque chose qui cloche.

En résumé, c’est préférable de battre le fer quand il est chaud! Les vendeurs ont tout intérêt d’être réalistes face à la valeur de leur bien comparé à ce qu’il y a de disponible sur le marché. Les comparables À VENDRE et VENDUS leur donneront l’heure juste sur le prix qu’ils peuvent espérer. Il est préférable d’afficher un prix plus près du prix auquel on est prêt à vendre pour attirer le plus d’attention possible. Il est mieux de négocier serré que de n’avoir aucune offre à négocier. Dans un monde de surconsommation comme le nôtre on obtient toujours un meilleur prix lorsque c’est le nouveau truc in alors les meilleures offres risques d’arriver lorsque la propriété est toute fraîche sur le marché. Ceci bien sûr si elle est affichez au bon prix pour le bon produit.

Si vous voulez avoir une juste estimation de la valeur marchande de votre propriété sur le marché d’aujourd’hui, n’hésitez pas à me contacter Sheila Iacono, agent immobilier affilié au 514.823.8611. Ce service est gratuit et sans obligation.

ShareThis

Related Articles

• Taxe de bienvenue: Qui n’a pas à la payer?
• Sheila Iacono joins the Montreal Real Estate Blog
• Les Grandes Lignes du Programme d’Accession à la Propriété
• La taxe de bienvenue: C’est quoi et comment la calculer?