Archive for October, 2007
Why Use a Real Estate Agent When Buying an Ajax or Pickering Home?
A reasonable question. When you have decided to buy your first home, the services of a qualified real estate agent are of utmost importance. The ideal real estate agent will have a good working knowledge of local real estate market conditions, be prepared to deliver a high standard of service to customers, and have the support of a successful real estate company. Most importantly, a good agent will save you time and money.
Advantages when Buying an Ajax or Pickering House:
* Real estate agents are experienced negotiators who will manage your offers and counter-offers.
* A real estate agent is familiar with the neighbourhood and can give you information on local real estate values, taxes, utility costs, services and amenities.
* A real estate agent is familiar with the entire home purchasing process and can advise you of your legal and financial options as well as recommend appraisal, home inspection and contracting services.
* A real estate agent can pinpoint homes that fit your needs and dismiss those that do not, saving you time.
* A real estate agent knows the potential problem areas in a home and can guide you away from “lemons.”
Right At Home Realty offers the ultimate level of real estate services to our customers. Our Sales Representatives are the best in the business, our products and services are the best on the market, and our company is committed to delivering the best results.
Please feel free to contact us should you have any questions or are ready to embark on your home buying or selling journey!
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Contact the Jeffrey Team for more information – 416-388-1960
US Housing Problems Not Headed to Canada
By Bob Finnigan, President, Building Industry and Land Development Association
“Oh Canada, Get a load of this boom!” What a great headline, especially since I found it on the front page of the real estate section of the Chicago Tribune.
Americans are quite envious of our real estate market here as they suffer the effects of the sub-prime mortgage meltdown. I’m often asked if the same thing could happen here and I’m happy to say the answer is “no,” according to Peter Vukanovich, CA, president of Genworth Financial Canada, which, next to CMHC, is the largest mortgage insurer in Canada.
Vukanovich says there are many important differences in lending practices and regulatory systems in the two countries.
“As a direct result, the Canadian mortgage market is far more stable than its U.S. counterpart.”
The Genworth head explains that sub-prime mortgages typically have higher interest rates and fees than “prime” mortgages and often include features such as “teaser” rates that offer the homebuyer very low payments for a short period of time, or the option to make interest-only payments. As well, whereas Canadian lenders are very strict about debt ratios, income verification and credit checks, the American lenders are not nearly as diligent.
Vukanovich notes that here in Canada, most loans are made for five-year terms with fixed monthly payments that will not jump quickly to unaffordable levels. Also, mortgage interest is not tax deductible here, so we have an incentive to pay off our mortgages as quickly as possible.
Another important difference in Canada is that mortgage default insurance is currently required under federal financial services law for those making less than a 20 per cent down payment. As a result, 95 per cent of the loans made in Canada are considered “prime” lending quality versus a much smaller number in the United States.
By acting as a lender’s “second set of eyes,” mortgage insurers ensure that mortgage underwriting standards are prudently and consistently applied to about half the market – approximately 450,000 mortgages in 2006.
Mortgage default insurance works by transferring the homeowner’s risk of default from the lender to the mortgage insurer. It also benefits Canadian homebuyers by allowing them to obtain loans at lower interest rates than would otherwise be charged if lenders retained the risk of default.
“While Canadian mortgage default insurers have expanded underwriting guidelines over time to include an increased number of borrowers with diverse credit profiles (self-employed, separated/divorced), we have done it differently than our American neighbours,” says Vukanovich. “If Canada had a U.S.-style system, at least one-third of all Canadians who currently have low-cost insured prime mortgages would pay higher interest rates and additional fees.”
“All told, Canadians can take comfort in knowing that our mortgage default insurance system is one of the most efficient, safest and stable in the world. It is also one of the main reasons why Canada will not experience their mortgage lending problems we’re now hearing so much about from the U.S. media,” Vukanovich concludes.
The whole U.S. house of [credit] cards assumed rising housing markets and stable or declining interest rates. Unfortunately, the U.S. has seen the opposite trends. We’re very fortunate to be avoiding that fiasco here in Canada, although we are certainly feeling the side effects on the stock market side.
For years there were just two mortgage insurance companies in Canada. However, we are starting to see some new players in the game. I think competition is great, but we must ensure that responsible lending standards prevail.
The bottom line is that our lending practices are solid and our real estate market remains strong and insulated from the woes of our neighbours to the south.
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Contact the Jeffrey Team for more information – 416-388-1960
Great Ajax community offers new release of homes
From New Home and Condos
In scenic north Ajax, Great Gulf Homes has just released brand new lots on Taunton Road west of Salem Road, that accommodate the breadth of home styles available at highly successful Wyndam Manor. Choices now include TownManors (executive townhomes), semis, plus detached homes on 30-, 37-, 41- and 47-ft. lots. You will also find four fabulous Mike Niven-designed, furnished model homes to tour, which showcase Great Gulf’s built-in design and construction quality.
As you tour these luxurious models, you will notice that each has a distinctive colour palette and décor scheme. To create a sense of visual continuity, Mike Niven used a different common colour on the main floor of each home that smooth transitions from one room to the next. These homes will give you a good feel for how versatile the designs here are in terms of creating visual surroundings that satisfy your individual taste.
The 2,400-sq.-ft. Donnington (Elevation A) on a 41-ft. lot is just one of the spectacular models. A large porch and peaked gables adorn the home, offering it irresistible curb appeal. A masterpiece of open-concept interior design, the Donnington contains both standard features and upgrades. On the main floor, the living/dining room is visible from a parapet wall at the foyer. A corner gas fireplace and a handy island enhance the area that contains the open family room, kitchen and breakfast room at the back of this well-designed home. The family living centre features a fabulous home entertainment system, which appeals to families with growing children. The second-floor computer loft appeals to the way today’s families really want to live.
The 2,345-sq.-ft. Middleham (Elevation A) model home on a 37-ft. lot is predominantly finished with standard features to highlight the high level of finishes Great Gulf includes in each home. The 3,105-sq.-ft. Buckingham (Elevation A) on a 47-ft. lot is an extremely upscale home that incorporates many designer highlights such as architectural moulding on the walls. The 2,845-sq.-ft. Canterbury (Elevation B) on a 47-ft. lot has a wraparound porch, open concept interior, and a computer loft on the second floor.
Wyndam Manor’s location has attracted numerous families who appreciate living close to amenities. Ajax is handy to GO Transit, and Hwys. 407 and 401. The multi-purpose Ajax Sportsplex is nearby, with its ball diamonds, soccer pitches, parklands, trails, playgrounds and change room pavilion. Also close at hand is the McLean Community Centre, which features a leisure pool, tot pool, whirlpool, sauna, training club, aerobic studio, skateboard park and much more. The Ajax section of the Waterfront Trail includes Rotary Park, with its small-craft boat launch, walkways, pavilion with a snack bar, accessible playgrounds and more. All along the waterfront, walkers, bikers and in-line skaters make great use of paved pathways, benches and natural areas.
At Wyndam Manor, TownManors range in size from 1,225 to 1,620 sq. ft. and are priced from the $220’s. Semis from 1,265 to 1,805 sq. ft. start from the $230’s. Detached homes on 30-ft. lots from 1,775 to 1,995 sq. ft. are priced from the $280’s; on 37-ft. lots from 1,455 to 2,700 sq. ft. from the $280’s; on 41-ft. lots from 1,945 to 2,850 sq. ft. from the $320’s; and on 47-ft. lots from 2,280 to 3,095 sq. ft. from the $340’s. First closings are slated for fall 2006.
Celebrating 30 years of homeowner satisfaction, Great Gulf Homes is one of Ontario’s largest builders, and was named Builder of the Year in 2002. More than 35,000 families now call a Great Gulf community “home.”
Location: Ajax
Housing type: TownManors, semis, and detached homes on 30-, 37-, 41- and 47-ft. lots
Starting price: TownManors from the $220’s; semis from the $230’s; detached on 30-ft. lots from the $280’s; on 37-ft. lots from the $280’s; on 41-ft. lots from the $320’s; and on 47-ft. lots from the $340’s
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