Ajax Pickering Real Estate Blog

There are usually many costs, on top of the buying price, that you must consider when buying a home in Pickering or Ajax. These extra fees, such as taxes and other additional costs come into play whether you’re looking to buy your first home, or trading up to a larger or smaller one. You will be surprised of an unwanted financial nightmare on the closing day if you’re not informed and prepared in advance. However, some of these costs are only one-time fixed payments, while others unfortunately represent an ongoing monthly or yearly commitment. It’s better to know about these costs are ahead of time so you can budget properly, even if they don’t apply in your situation.

Whether it’s your first, second or tenth home, buying real estate is a major milestone and there are many important details to address, during the process. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.

Carefully view the following list to make sure you’re budgeting properly for your next move.

1. Appraisal Fee
Your lending institution may request an appraisal of the property, which you will be responsible to pay for. Appraisals can vary in price from approximately $200 - $350.

2. Survey Fee
If the home you purchase is a resale, your lending institution may ask for an updated property survey. The price for this survey can vary between $800 - $1000.

3. Property Taxes
Your lending institution may decide to include your property taxes in your monthly mortgage payments, depending on your down payment. If your property taxes are not added to your monthly payments, ensure to have annual proof that your taxes have been paid.

4. Property Insurance
Home insurance covers the replacement value of your home. Proof that you are insured will be requested by your lending institution will request as it protects their investment on the loan.

5. Legal Fees
A lawyer must be involved to review all paperwork, even of the simplest of home purchases. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.

6. Mortgage Loan Insurance Fee
Depending upon the equity in your home, some mortgages may require mortgage loan insurance. This type of insurance will cost you between 0.5% - 3.5% of the total amount of the mortgage. In addition to your mortgage and tax payment, these payments are also made monthly.

7. Mortgage Brokers Fee
In order to source a lender and organize the financing, you will need a mortgage broker who is entitled to charge you a fee for his/her services. However, it better for you to look around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

8. Moving Costs
The cost for a professional mover can cost you in the range of $50-$100/hour for a van and 3 movers, and 10-20% higher during peak demand seasons, like Christmas or March break.

9. Service Charges
Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

10. Maintenance Fees
In your budget, ensure to have a section for maintenance fees, such as carpet cleaning or deck painting.

11. Water Quality and Quality Certification
If the home you purchased is serviced by a well, you must consider having your water checked regularly. Where you live determines whether or not a fee is charged to certify the quantity and quality of the water reaching your home.

12. Local Improvements
If the town or neighbourhood you live in has made local improvements, such as the addition of sewers or sidewalks, it could impact a property’s taxes by thousands of dollars.

13. Land Transfer Tax
Whenever a property changes hands, this tax will be applied. The amount that is applied can vary from one property to another.

As you can see, taking those extra costs into consideration is very important. You need to budget properly for your next move to avoid facing any financial troubles. Consult your broker or sales associate if any extra costs will be applied to you. Remember, purchasing a home is a major milestone and if you plan your budget accordingly, you will enjoy the best of your home.

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

The Bank of Canada announced yesterday that it will leave its key interest rate unchanged, as anticipated by most economists.

In its statement the Bank commented that its current key policy rate is consistent with achieving the inflation target over the medium term. The Bank forecasts that the Canadian economy will grow by 2.6% in 2007, 2.3% in 2008, and 2.5% in 2009, and that inflation will “return to 2% in the second half of 2008.

As a result of this decision, lending institutions in Canada are expected to keep their prime lending rate steady. However, people looking for a new variable-rate mortgage should note a recent mortgage rate trend  on this type of mortgage has been adjusting upwards in recent weeks. Existing variable rate mortgages do remain unchanged but new variable borrowers are paying more.

If you would like to discuss how current trends in mortgage rates impact the best mortgage strategy for you, contact your Real Estate Agent or Mortgage Consultant. He or she can obtain a mortgage pre-approval if you’re wanting to buy a home with a rate hold of up to 120 days, therefore you will know how much you can afford.

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

By Derek Raymaker - Globe and Mail

As we wind down our state of the 905 condominium market series, it would be fair to say that the suburban belt around Toronto is rapidly coming to terms with the fact that condominium suites are for more than just single professionals.

A lot of builders and buyers would have, until recently, considered Durham Region to be a long way from being a condominium pocket of any note beyond the odd lakeshore retirement community.

That all seemed to change in May with the launch of San Francisco by the Bay in Pickering, near the Lake Ontario waterfront at Frenchman’s Bay. Most of the 350 mid-rise suites to be built in two adjacent towers on the site of a downtrodden shopping plaza were snapped up in short order. In the first weekend of sales alone, 210 of the suites and townhouses were sold.

Much of the interest, no doubt, was due to San Francisco by the Bay’s attractive price point, ranging from $149,000 for a fairly spacious 561 square feet to $230,000 for 1,147 square feet (there are also 121 townhouses ranging from $250,000 to $330,000 for up to 2,110 square feet).

But many market watchers had predicted pent-up demand for condominium suites in the string of municipalities east of Toronto because of the enormous price spikes in new detached housing over the last three years. Durham Region (Pickering, Ajax, Whitby, Oshawa and Clarington) had gone from an affordable tract housing market to a rapidly appreciating market overnight, with average new home prices eclipsing $350,000.

That didn’t leave a lot of room for first-time buyers and those on a budget, which has traditionally been the bread and butter of Durham Region’s new home market.

The reason housing prices went up so quickly was because Durham’s land supply had been tightened by the province’s new restrictions on municipal land use, encouraging higher density in 2004 through the Places to Grow Act.

City planners in Pickering, the Durham community just east of Scarborough, encouraged the developers of San Francisco by the Bay — S&R Development Group, Rose Corp. and Chestnut Hill Homes — to bump up its density in order to fit the Places to Grow guidelines. That move is a radical departure, as most planners are used to arm-twisting condo builders to scale down density.

On the other side of Durham, in the sprawling, semi-rural municipality of Clarington, Dunbury Homes is launching a project called the Ville.

Although the six-storey glass building is billed as a luxury project, its prices are pretty down to earth, ranging from $189,999 for 603 square feet to $269,000 for 906 square feet, with penthouses ranging from $246,000 to $360,000. All prices include parking spaces.

Oshawa has the distinction of being one of the only municipalities in Durham with a history not as a bedroom community. Over on Bond Street, Atria Developments successfully converted a derelict building into a two-tower condo development with 120 suites that is now more than 90 per cent sold.

The remaining suites at Parkwood Residences, ranging from $150,000 for 600 square feet to 300,000 for 1,189 square feet, are already built and available for occupancy with closing periods as short as 30 days.

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