Archive for October 17, 2007

Laurin Jeffrey | October 19, 2007
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Mortgages and hidden costs

Here are a few items that can vary from one mortgage to another, regardless of financial institution.

By Anthony Harte, Dream Homes & Condos Magazine

Property tax re-imbursement

At the close of your mortgage transaction and/or title transfer, it is necessary to have all property-related expenses and fees paid and current. One very important fee is the realty or property tax. The vendor or previous owner of the property will, in most cases, have paid some portion of his/her property taxes to the municipality. The municipality is not obligated to return these monies upon sale of the property, so the responsibility of re-imbursement for taxes paid lies with the purchaser or new mortgagor. Property taxes are the first of all liabilities satisfied in the event of a default in payment or foreclosure.  The figure or the amount of monies paid by the vendor or previous owner will vary from mortgage to mortgage and is disclosed in the statement of adjustments provided to your lawyer by the vendor’s lawyer prior to the closing of the transaction. This represents an added closing cost.

New home builder connection fees

Lost in the fine print of some new home builder contracts are the set-up or connection fees.  When the builder develops a site, he must bring the necessary heating, water, sewage and related services to each and every home. The builder is charged a fee for the provision and testing of these services, which is passed on to you – the new home owner.  The fees for set-up and proper implementation of these services vary as per specific home size, options and requirements. Given the variety of homes and styles existing today, there is quite a difference in fees from project to project.  Although the connection fees must be disclosed within the contract of purchase and sale, exorbitant fees may not be highlighted by the sales staff. Typically a condition of the agreement of purchase and sale, the solicitor’s review is an important step in the process, highlighting all key facts within the agreement.  These connection fees represent an added closing cost.

Interest Adjustment

Given the variety of lenders and their varied approaches to customer service and/or banking protocol, the interest adjustment is handled and implemented differently at most financial institutions. The typical situation sees a client paying the daily interest component of his/her mortgage payment for a predetermined period normally used to align the mortgage payment with their respective payday.

The payment is typically made at closing and provided to the lawyer. Some institutions will deduct the interest adjustment from the client’s account or debit the client’s preferred account at the desired institution. On occasion, the interest adjustment has been debited inexplicably from the client’s account without giving him/her notice. This and other minimal one-time service fees are lost in the fine print but ultimately disclosed and therefore legitimate. This may represent an added closing cost.

These represent a few of the hidden or otherwise unknown fees associated with the closing of your mortgage. A proactive approach to your personal finance will see some small savings to ensure the smooth and timely close of your mortgage.

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Contact the Jeffrey Team for more information – 416-388-1960

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Category: Buying Real Estate, General Real Estate, Mortgages, New Homes |
Laurin Jeffrey | October 18, 2007
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A waterfront paradise on Frenchman’s Bay

Are you ready to indulge yourself so completely?

Living on the water offers a certain lifestyle. Waterfront views are beautiful and soothing. For some, the boating life is the only life, for others, living the resort lifestyle is paramount. The leisure of cottage living, the convenience of city access, the quiet of a small neighbourhood, Marshall Homes’ Frenchman’s Bay Village is a community that understands. It’s got easy access to all of the urban amenities of Pickering, but the community will seem like it’s a world away from the urban pace. Situated at the base of Liverpool Road, right on the bay, the community has been designed as a waterside village. The marina, the Fairport Yacht Club, the gorgeous townhomes with a view of the bay; every detail offers the promise of comfort and leisure, allowing residents to indulge in the lifestyle they’re after.

Marshall Homes has created an ideal community for this lifestyle. Limited to only 66 townhomes, residents will be able to be on the water within moments of coming home. This innovative builder has reserved 66 docks in the marina and they are only available for purchase by homebuyers. The ‘dockominiums’ are the answer for boaters who are tired of leaving the marina for the long drive home, always disappointed at never having quite enough time to spend on the water.

Plus Frenchman’s Bay Village residents who purchase a dockominium automatically become members of The Fairport Yacht Club, with access to the clubhouse facilities, including storage lockers, change rooms, showers, laundry and lounge. The staff of The Frenchman’s Bay Marina also offer all the services you expect from a modern marina, such as launching and storage, repairs and engine servicing. As of this year, the docks are undergoing an upgrading program and state-of-the-art facilities will be added including card access security gates, full electrical power outlets and water hookups and dock side storage boxes.

But landlubbers have not been left out. At Frenchman’s Bay Village, the marina is only one of the impressive amenities of this waterfront community. Homebuyers are in no way obligated to buy a dockominium if they don’t need one. The Fairport Yacht Club is right in the community and brings the resort lifestyle to you with membership. You can stroll the boardwalk and enjoy the beach. The community features a pool for the exclusive use of residents.

The homes of Frenchman’s Bay Village are designed to reflect the lifestyle and needs of residents. Even from the exterior architecture featured here you can see the difference. Charming streetscapes reminiscent of east coast villages, the two- and three-storey townhomes offer features like upper level lookouts, rooftop decks and cupolas. Homes include numerous windows, taking advantage of the phenomenal views to the fullest.

Designs and finishes offer great variation, enabling you to find a home which feels custom-designed to suit your needs. Ranging from 1,405 to 3,001 sq. ft., these homes include some very innovative designs and offer homebuyers a choice of three fabulous appointment packages: Silver, Gold or Platinum. Silver includes a handsome selection of fine standard features including imported ceramic tile flooring and 35 oz. broadloom, a fireplace with white painted mantle with marble insert, natural oak railings and pickets, and 9 ft. main floor ceilings.

The additional features with Gold include a Whirlpool appliance package in the kitchen and also a washer/dryer set, oak flooring in the Great Room and the main staircase in oak, and a gas outlet for a barbecue. Upgrading to Platinum offers additional high-end appointments such as a Sub Zero refrigerator, Thermador slide-in range, Panasonic Genius over-the-range microwave, Bosch dishwasher, central air, Maytag high-efficiency stacked front loader washer/dryer, upgraded fixtures, cultured marble tub shower and countertops with sink in master ensuite, and an installed central vac among numerous other luxurious features and accessories.

The layout of these homes are quite unusual. Numerous balconies, walkouts and rooftop decks are used liberally throughout all of these plans. The TH 6 design uses the main floor for a kitchen and dining area with a Great Room ceiling that is open to above, soaring a full two stories. A laundry room and two bedrooms, each with an ensuite, occupy the second floor. The third floor loft is a master bedroom with a gorgeous ensuite and massive walk-in closet.

A small number of homes have the ability to use the main floor for business space. Designs like the TH 2 reflect this, with a large, spacious room on the ground floor. The second floor features the dining room, Great Room, kitchen and a bedroom/den. The third floor holds the master bedroom with his and hers walk-ins and ensuite, as well as a third bedroom and the laundry room.

A unique design, the TH 4 is a two-storey home which offers the ease of main floor living. One half of the ground floor is the master bedroom with walk-in and ensuite, while the kitchen, dining room and Great Room make up the other half. The laundry, a second bedroom and a media loft occupy the second floor.

And still others are designed to indulge residents withsublime qualities. The TH 3 uses a traditional layout, with common rooms on the main floor and all bedrooms on the second floor. This leaves the third floor free to utilize as the entertainment loft, fitness studio, hot tub/spa and billiard room, complete with wetbar, full bathroom and walkout to a rooftop deck. Now that’s living!

Boater or landlubber, Frenchman’s Bay Village is quite irresistible. The question is, are you ready to indulge yourself so completely? Answer yes and take a trip to sales office at Frenchman’s Bay in Pickering. It’s just south of Highway 401 on Liverpool Road. Or visit by boat, it’s completely accessible from the lake, and there’s ample docking available out front.

Location: Pickering
Housing type: Freehold condo towns from 1,405 to 3,001 sq. ft. Dockominiums for vessels up to 46 ft.
Starting price: Call for pricing.

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

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Contact the Jeffrey Team for more information – 416-388-1960

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Category: Buying Real Estate, New Homes, Pickering Real Estate, Townhouses |
Laurin Jeffrey | October 17, 2007
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Housing highs still showing

Another Record Set; Longer mortgage terms fuelling cost, industry warns

Garry Marr, Financial Post

Real estate prices hit another record high last month in the country’s top 25 markets, a move some commentators say reflects the growing dependency of Canadians on debt to finance purchases.

Real estate author Don Campbell says the latest statistics from the Canadian Real Estate Association are further proof that the newest trend in lending — long-term amortizations that have increased to 35 and 40 years from 25 years — is fuelling price increases.

“I would say one-third of the percentage point price increase is due to [longer amortizations],” Mr. Campbell said.

“Real estate is driven by monthly payments and you can afford more and pay less monthly when your amortization is moved from 25 years to 40 years.”

The Ottawa-based Canadian Real Estate Association said yesterday the average price of a home sold in the country’s largest cities rose to $325,881 last month, an 11.2% increase from a year ago.

With 10% down and a 7.19% interest rate on a five-year mortgage, a consumer with an average Canadian home would make monthly payments of $2,088.80 based on a 25-year amortization. Based on a 40-year amortization, the consumer would make monthly payments of $1,840.67.

The consumer with the longer amortization would pay interest costs of $589,786, compared with interest costs of $333,189 for the mortgage amortized over 25 years.

“I think this is having more of an effect on the low end of the real estate market than the top end,” said Mr. Campbell, who thinks people are paying more for homes because with the new mortgage products they can afford more. “Instead of 11% price increases, they might be 6% to 8% without [longer amortization].”

A report from the Royal Bank of Canada this week suggested as much as 50% of new insured mortgages — those with less than 20% down payment — are going for amortizations of more than 25 years. The bank suggested as much as 25% of refinancings are for the longer amortizations.

Benjamin Tal, a senior economist with CIBC World Markets, said it’s probably too early to suggest the longer amortizations are fuelling an inflationary market for housing. “It’s not a big enough piece of the real estate market yet to matter,” he said. “Potentially, it could be big. Look at how much overall housing there is and this is not enough to influence markets yet.”

Elton Ash, regional executive vice-president of Re/Max for Western Canada, said the new products are helping consumers to buy. “It certainly has helped with the affordability, especially in markets like Vancouver and Victoria,” he said. “But I don’t believe the escalation in prices is because of the mortgage products. It is because of strong economic performance, strong consumer confidence and interest rates still being favourable.”

Bob Linney, a spokesman for the Canadian Real Estate Association, said there is no data to indicate new mortgage products are responsible for some of the rising prices in the real estate markets. “I don’t have the stats to back that up,” he said.

It is starting to look like a surge in new listings could put some downward pressure on prices. Nationally, new listings were up 3.4% from a year ago.

Red-hot markets such as Saskatoon, where prices are up 56.4% from a year ago, saw listings surge by 65.9% from August, 2006. In Edmonton, prices are up 27.7% from a year ago, while listings are up 57.8%.

“I’m relieved to see the listing inventories coming up. It’s better for the consumer,” said Mr. Ash.

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Contact the Jeffrey Team for more information – 416-388-1960

Category: Ajax Real Estate, Buying Real Estate, General Real Estate, Pickering Real Estate, Scarborough Real Estate, Selling Real Estate | Tags: , ,
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