Pretty obvious right - purchasing your first home is one of the most monumental experiences in life. Many of our clients never understand some of the real estate jargon that comes with that purchase. Here is some terms you should definitely know:

1. Mortgage Components

Before you even begin to look at properties, you NEED to apply for a mortgage. Here is a crash course in understanding the major parts;

Amortization Period – This is the time it takes to pay off your mortgage. It effects how much interest you pay over the life of that mortgage.

Term – The term is the period of time when your mortgage agreement is in effect. Breaking a TERM rests in financial penalties. For example, in closed mortgages, you are restricted from anything that deviates from your agreed upon payment schedule (refinancing or selling before the end of the term is a penalty). Open mortgages do not set barriers to repayment, refinance or selling. Keep in mind that closed mortgages tend to come with lower interest rates while open mortgages come with higher rates. The lower the interest rate, the longer the lender wants it to take for you to pay it back.

Mortgage – This is the loan which allows you to finance the cost of your home. You will make mortgage payments until it is paid in full.

Mortgage Pre-Approval –  The lender commits to a specified loan amount for which you qualify so you know how much you can afford and can make a financially sound offer immediately.   

Fixed Rate Mortgage vs. Variable Rate Mortgage – Your loan accrues interest throughout its life (it's how the lender gets paid for loaning you the money). If you have a fixed rate mortgage, the interest rate associated with your loan will remain exactly the same for the course of the mortgage term (until it's paid off). If you have a variable rate mortgage, the interest associated with your loan will fluctuate according to changes in interest rates, and your monthly mortgage payment will reflect that.

Appraisal – Sometimes your lender will order an appraisal for the home you want to buy. This is NOT the same as the city assessment. An appraisal is the value of the home according to an expert (appraiser) sent by the bank. This monetary figure is provided to ensure that you're taking out a loan for the true value of the home.

2. Offer

We will be writing an offer together on the home you with to buy. It is a legal contract that defines all aspects of the purchase including price, date of possession, conditions, etc etc. Almost all offers are Conditional, which means the offer contains items that require fulfilling BEFORE an agreement is reached. 

Closing - This is the actual day you complete the deal and own the home. Closing is the completion of the contract.

3. Conditions  

Common things the offer depend on.

Financing Condition -- Your purchase will depend on making sure you have financing approved by your lender.

Inspection Condition  – You need to select a professional inspector to fully evaluate the home you intend to purchase. From the foundation to potential mold issues, it's during the inspection that you find out whether anything is wrong with the property.

 4.  Purchase Day

Closing Costs – These are a variety of costs that need to be paid when the purchase of the home is completed. Costs include items such as prorated taxes, tax fees, insurance fees, lender fees and legal fees. Costs vary per situation.

Title – This is what you've been waiting for! It's this document that says that you are the owner of this property.

Now that you've got the vocabulary straight, call us and lets start making this dream of home ownership a reality!  Check out our testimonials to see our comittment to service

Best Regards,

Denis Hrstic
AWESOME REALTOR® http://www.MyHomeAgent.ca

Not knowing your credit score

Not budgeting for the costs of home ownership

Not researching down payment choices

Focusing too much on interest rates

Not choosing your own payment schedule

Forgetting about closing costs

1. Newly Finished Basement – This is a common way to hide past problems. Were Permits pulled?
2. Odd Smell – Could be mould, mildew, caused by moisture or a past drug operation.
3. Exterior Cracking – Any unsealed opening on the exterior can cause water entry.
4. Slope Toward the House – Grade should move water away and not toward the house.
5. No Downspouts - Indicator of potential water issues at foundation.
6. Hot Water Tank Damage – Any sign of wear and tear on a hot water tank should be addressed quickly.
7. Cold Spots / Drafts – This can be poor insulation or improper construction.
8. Swellings Around Windows and Wall Seams – Possible water entry.
9. Water Staining / Soft Drywall – Bad news. 
10. Restrictive Covenants on Title – This could restrict the ways you can use the property, or what you can build in the future.
11. No RPR or Survey – This is the only protection you have to ensure that the house is built in the proper location on the lot and that you are getting the amount of useable land you paid for.
12. House Feels Small – The square footage listed may not be accurate.
13. Curled or Cracked Roof Shingles - Clear indicator of shingles past their lifespan.

April 28, 2011

TD just made a major policy change on conventional mortgages – that is, mortgages without CMHC or GE insurance.

Effective April 28 2011, clients can now qualify for HELOCs,Variable Rate Mortgages and fixed rates of 1 and 2 years on the 3-year posted rate, instead of the 5-year posted rate.

Anything above 3-years (the 3 and 4-year fixed) is qualified on the actual rate, again, instead of the 5-year posted.

Best Regards,

 

 

Denis Hrstic
Investment REALTOR®   http://www.MyHomeAgent.ca

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Direct: 403-852-6583 | Office: 403-271-0600 | Fax: 403-592-8831

CIR REALTY 103,11012 Macleod Tr S Calgary, AB T2J6A5

 

Single family homes in the inner-city drive recovery Calgary, February 1, 2011

The number of single family home sales in the month of January 2011 were 791, compared with December 2010, when sales were 734 — an increase of about 8 per cent. The number of condominium sales for the month of January 2011 was 302. This was down from the 320 condominium transactions recorded in December 2010. Year-over-year, the number of single family homes sold in January 2011

“More affordable housing will continue to attract homebuyers to the inner-city, particularly as employment in the city of Calgary continues to improve,” says Sano Stante, president of CREB®. “Single family homes in the city are currently driving this gradual recovery, and we are seeing

The board’s Metro Resale Index, released Friday, said Calgary joins Victoria, Vancouver, the Fraser Valley, Regina, Winnipeg, Halifax and Newfoundland in that category.

The conference board said Calgary’s resale housing average price in December for all residential properties was $394,949, down from $401,590 in November and from $403,148 in December 2009.

Seasonally-adjusted annual sales in the city in December were 21,996, which were up from November’s 20,100 but down from 24,108 in December 2009.

Throughout Canada, the board said sales were higher in November in 13 of 28 markets surveyed but remained below year-earlier levels in 26 and “often by a wide margin.”

Earlier this week, Sano Stante, the new president of the Calgary Real Estate Board, forecast single-family home sales to increase by 19.9 per cent this year from 2010 and for the average MLS sale price to jump by 4.1 per cent to $480,000. He also forecast condo sales to see a 15.8 per cent annual increase with the average price rising by 1.8 per cent to $295,000 for the year.

1.     Interest rates are STILL incredibly low

2.     Lots of selection to choose from

3.     Low prices

4.     Buyers market

5.     Negotiations favor buyers position

6.     Sellers are more flexible on terms

7.     Investment properties are CASH FLOWING

8.     More tradespeople available

9.     Cost of trades & materials has decreased

10.  Quality for dollar value has increased = Better Value

11.  Calgary’s economic outlook is still strong (especially compared to other markets)

12.  Home furnishing deals right now

14.  Advances in new home construction (home theatres, cat5 wiring, low e windows, energy efficient)

15.  Builders are offering incentives

16.  Real estate is always a good long term investment

17.  Consumers becoming more reasonable with expectations

19.  Lots of starter homes available

20.  We create the market by Believing in it!!!

21.  Desperate, motivated sellers

22.  Timing…rarely will you hit the perfect market

23.  Better to own than rent (start building equity now)

24.  More creative contracts

Calgary Buyers’ Remain Cautious

Sales of million dollar plus homes a bright spot in 2010 market

Calgary, November 1, 2010 – Home sales in the city of Calgary were down month-over-month in October 2010, showing signs that buyers still remain cautious, despite signs of economic recovery.  Year-over-year sales continued to trend lower in the month of October, according to figures released today by the Calgary Real Estate Board (CREB®).  

The number of single family home sales in the month of October 2010 shrank by 7 per cent at 888, compared with September 2010, when sales were 958.  The number of condominium sales for the month of October 2010 was 310. This was a decrease of 15 per cent from the 366 condominium transactions recorded in September 2010.

Year-over-year, the number of single family homes sold in October 2010 in the city of Calgary were down 31 per cent.  In October 2009, single family home sales totalled 1,285. Condominium sales saw a decrease of 48 per cent from the same time a year ago.  In October 2009, condominium sales were 601.

“Buyers remain cautious, perhaps waiting to feel a little more confidence in Calgary’s economic growth and their own job security,” says Diane Scott, president of CREB®.

“We believe economic recovery will build momentum into 2011 as the outlook for oil and gas and other sectors continues to improve. This, coupled with low interest rates and improved affordability, should eventually help to stimulate Calgary’s housing market,” adds Scott.

The average price of a single family home in the city of Calgary in October 2010 was $444,744, showing a 3 per cent decrease from September 2010, when the average price was $460,278, and a 4 per cent decrease from October 2009, when the average price was $462,465. The average price of a condominium in the city of Calgary in October 2010 was $287,793, showing a 1 per cent increase from September 2010, when the average price was $284,028 and no significant change over last year, when the average price was $289,155. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for October 2010 was $387,900, showing a 1 per cent decrease from September 2010 when the median price was $390,000. This was a 5 per cent decrease from October 2009, when the median price was $410,000. The median price of a condominium in October 2010 was $255,000, showing a 4 per cent decrease from September 2010, when the median price was $265,000, and a 3 per cent decrease from October 2009, when it was $263,500.

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Our average price is being buoyed by more sales in the million dollars plus category. Despite a slowdown in certain market segments, homes sold in the city of Calgary at a million dollars or more have actually seen an increase of more than 15 per cent when compared to the same time one year ago.  This boost in sales is, indeed, a bright spot in our current market,” says Scott.

Single family listings in the city of Calgary added for the month of October 2010 totalled 1,765, a decrease of 22 per cent from September 2010 when 2,252 new listings were added, and showing a decrease of 3 per cent from October 2009, when 1,819 new listings came to the market.

Condominium new listings in the city of Calgary added for October 2010 were 721, down 22 per cent from September 2010, when the MLS® saw 921 condo listings coming to the market. This is a decrease of 16 per cent from October 2009, when new condominium listings added were 859.

“We are seeing some decline in the number of new listings coming on to the market.  A continuing decline in supply will help bring the market into balance,” says Scott.

“We believe we will see a tempering of our inventory levels, as some sellers offer marginal reductions in prices, or others choose to pull their home off the market for a period of time,” notes Scott. “Homeowners should consider speaking with their REALTOR® about their current marketing strategy—there are always options in every market.” 

“Overall, we’re cautiously optimistic that Calgary’s economic recovery will pick up as we move into 2011—but in-migration will be needed to fuel a sustained recovery in Calgary’s housing market,” says Scott.

CREB® is a professional body of 5,540 licensed brokers and registered associates, representing 245 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR® members.

REALTORS® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the board’s website at www.creb.com.

Buyers’ Market Continues in Calgary ( FROM CREB)

Home sales in the city of Calgary increase month-over-month in September 2010

Calgary, October 1, 2010 – Home sales in the city of Calgary were up month-over-month in September 2010, the first uptick in sales since April 2010.  Year-over-year sales continued to trend lower in the month of September, but at a pace slower than previous months, according to figures released today by the Calgary Real Estate Board (CREB^®).  

The number of single family home sales in the month of September 2010 grew by 10 per cent at 958, compared with August 2010, when sales were 867.  The number of condominium sales for the month of September 2010 was 366. This was an increase of 1 per cent from the 364 condominium transactions recorded in August 2010.

Year-over-year, the number of single family homes sold in September 2010 in the city of Calgary were down 24 per cent.  In September 2009, single family home sales totalled 1,257. Condominium sales saw a decrease of 37 per cent from the same time a year ago.  In September 2009, condominium sales were 580.

“There are signs that September may mark a gradual, if not slight, uptick for Calgary’s housing market—we are seeing a modest improvement since the market’s decline, that really started in April of this year,” says Diane Scott, president of CREB^®.

“The Bank of Canada is in no hurry to raise interest rates to any significant level, and affordability continues to improve in key segments of the Calgary housing market. These factors, along with great selection, have clearly tipped this market in favour of the buyer,” says Scott.

“There are some great opportunities out there for buyers, particularly in the condo market. Currently, the highest volume price segment for condos is in the $200,000 to $300,000 range.  We have not seen this kind of affordability in Calgary’s condo market in many years,” adds Scott.

The average price of a single family home in the city of Calgary in September 2010 was $460,278, showing a 3 per cent increase from August 2010, when the average price was $445,617, and no significant change from September 2009, when the average price was $459,085. The average price of a condominium in the city of Calgary in September 2010 was $284,028, showing a 1 per cent decrease from August 2010, when the average price was $286,384 and a 2 per cent decrease over last year, when the average price was $290,253. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for September 2010 was $390,000, showing a 1 per cent decrease from August 2010 when the median price was 395,000. This was a 2 per cent decrease from September 2009, when the median price was $399,900. The median price of a condominium in September 2010 was $265,000, showing a 2 per cent increase from August 2010, when the median price was $260,000, and no change from September 2009, when it was the same – $265,000.

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Clearly there is a shift in the types of buyers entering the market. It was first-time home buyers who drove the late market recovery last fall and this spring.  While lower priced home sales have declined, home sales over $1 million have actually increased by 2% this year, as compared to the same period last year,” says Scott.

Single family listings in the city of Calgary added for the month of September 2010 totalled 2,252, an increase of 15 per cent from August 2010 when 1,960 new listings were added, and showing an increase of 21 per cent from September 2009, when 1,857 new listings came to the market.

“Unlike the volume of foreclosures we have seen south of the border, Canada’s market has seen only a small increase in arrears and foreclosures.  Nonetheless this increase likely had a modest impact on our current inventory—we expect this to have a small influence on price and supply as they work through the market this fall,” noted Scott.

• the Buyer registers a caveat on title, to show their interest in the property

• the Buyer makes Mortgage payments to the Seller each month, either until the Mortgage is paid off, or until your agreement comes to an end with the Seller. At this point you have to get your own financing and pay out the Seller the remaining loan balance.

Best Regards,

Denis Hrstic
Cell: 403-852-6583
www.MyHomeAgent.ca