Mortgage Matters

Many homeowners are utilizing the equity they’ve accumulated in their homes to tap into Home Equity Loans or Home Equity Lines of Credit, sometimes referred to as a HELOC. You can use the equity in your home for many different reasons, to name a few:

• With the Home Renovation Tax Credit and the Eco-Energy Rebates, now would be a good time to make those renovations you’ve been thinking about! You would also be adding to your homes’ value, an all around win-win situation

 • If you’ve been feeling the pinch financially and are not feeling completely secure, now would be a good time to come up with a debt consolidation plan. The lower interest rates from the LOC makes payments manageable.

 • If you feel your business could use a little boost now that the economy is starting to recover, and you want to be ready, consider the benefits of the LOC; with it’s flexible terms, you can pay it off quickly when your business is back on sound footing.

 • If you’re generally good with money, a HELOC can provide a place to go for emergency funds from time to time, especially if you know you’re going to be diligent in paying it back.

Home equity is the difference between the current appraised value of your home and the amount you have paid on the first mortgage.

In these days of low interest rates, it doesn’t make sense to be paying credit card or unsecured line of credit charges. Please call Verico Designer Mortgages Inc to find out about the equity in your home and the options available to you.

Mortgages HELOC, Home Equity, Line of Credit

According to the latest article from CMHC, housing starts have picked up the pace and are re-growing.

The seasonally adjusted annual rate of housing starts increased to 150,400 units in August from 134,200 units in July, according to Canada Mortgage and Housing Corporation (CMHC).

“Housing starts are trending higher, reflecting improvements in both the single and multiple segments,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The improvement in housing starts is consistent with our expectation of a stronger second half for 2009.”

The seasonally adjusted annual rate of urban starts increased by 14.0 percent to in August. Urban multiple starts increased by 23.8 percent, while urban single starts moved up 2.5 percent units in August.

August’s seasonally adjusted annual rate of urban starts increased by 13.8 per cent in Ontario.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

Mortgages CMHC, Housing Starts

Vacancy rates have declined in the past year, proving good sustainability and growth in the Hamilton area.

In 2009, the vacancy rate in Hamilton is expected to edge lower to 3.0%

Demand for rental accommodation typically comes from youth households and other households who are not planning to own a home or have not yet saved enough for a down payment. Thus, it is important to take a look at the employment market by specific age groups and types of employment. Given that there are a number of post-secondary institutions in Hamilton, it is reasonable to expect that some of these young students who rent would also hold a part time job to supplement their living expenses. This year, part-time jobs among youth aged 15 to 24 increased 2.4 per cent.

At the same time, the labour force for this age group remained relatively unchanged from a year ago. This indicates that more youth are able to find a part time job and thus afford to be in the rental market.

Individuals usually at the First Time Home buyer stage are choosing instead to stay in the rental market until economic conditions improve.

If you were thinking about buying a rental property, now might be a good time to keep investigating the market trends.
If you are looking to finance a Rental Property contact Verico Designer Mortgages Inc. we are connected with a wide variety of lenders that can assist you in this matter.

Source: Canada Mortgage and Housing Corporation

http://www.cmhc-schl.gc.ca/en/hoficlincl/homain/stda/index.cfm

Mortgages Hamilton Rental, Rental Properties, Verico Designer Mortgages Inc

Special:  Mortgage renewal or closing coming up within 30 days – 5 year fixed rate 3.84%

Call Charmaine at Verico Designer Mortgages Inc  Today to find out more about how you can cash in on this amazing offer.

Mortgages Mortgage Special, Verico Designer Mortgages

Thinking of building a Secondary or Garden Suite? Canada Mortgage and Housing Corporation (CMHC) offers financial assistance for the creation of a Secondary or Garden Suite for a low-income senior or adult with a disability – making it possible for them to live independently in their community, close to family and friends.

What is a Secondary Suite and a Garden Suite?

A secondary suite, sometimes called an in-law suite, is a self-contained separate unit within an existing home or an addition to a home. This means there are full kitchen and bath facilities as well as a separate entrance.

A garden suite is a separate living unit that is not attached to the principal residence, but built on the same property. Garden suites are sometimes referred to as “granny flats” because they were originally created to provide a home for an aging parent of a homeowner. Like a secondary suite, a garden suite is a self-contained unit.

Who Can Apply?

You may be eligible to receive assistance if:

• You are a homeowner or private entrepreneur owning residential property that would accommodate an affordable, self-contained rental unit for a low-income senior (65 years of age or more) or adult with a disability.
• Your property meets with the applicable zoning and building requirements.
• You consent to enter into an Operating Agreement that establishes the rent that can be charged during the term of the Agreement.
• You also agree that the household income of the occupant(s) of the newly created self-contained unit will be below a CMHC set level.

Financial Assistance:

The assistance is in the form of a forgivable loan that does not have to be repaid provided that you, as the owner, adhere to the conditions of the program. The maximum loan available varies in accordance with the geographic zone in which the property is located.

Zone 1 – Southern areas of Canada: Max Loan/Unit is $24,000

Contact Information:

To find out how to apply for financial assistance or for more information about these programs please call CMHC toll free at 1-800-668-2642.   

Or call Charmaine at Verico Designer Mortgages Inc. 905-336-5997, Toll Free 1-866-824-8057.

(Source: Canadian Mortgage Housing Corporation/ www.cmhc.ca)

Reviews Garden Suite, Secondary Suite

Flipping houses is a hot topic these days. Here are 10 tips to help you find the perfect flip from HGTV’s The Big Flip renovator’s John Stassen and Randy Mackay.

1.      Find properties that are diamonds in the rough – homes that are rundown in comparison to those around them – as these often have a low list price.

2.      Are the surrounding properties well maintained? This can add value and clinch a sale when your house goes back on the market.

3.      Scrutinize previous renovations. Poor quality workmanship can mean you have paid a premium for finishes that you will have to repair or replace yourself.

4.      Can you add bathrooms, storage or enlarge a small kitchen to meet the needs of today’s average family? If you can’t, walk away, as these features often make or break a sale.

5.      Ensure you do a thorough home inspection before purchasing properties – this could save thousands of dollars in the long run.

6.      Identify your potential buyers (i.e. young professionals or families) and design the house with their needs in mind.

7.      Find a real estate agent who understands the market. There are thousands of real estate agents; get one who is experienced and understands the business of flipping houses!

8.      Do your research and find areas that are up and coming. Neighbourhoods that are in the early stages of being gentrified often contain homes that offer large returns on their investment.

9.      Be realistic with your budget and always leave room for hidden costs. Early budget optimism can mean cost cutting later on, which means sacrificing quality – and profits – in the final sale.

10.  Keep your eye out for properties with good layouts that can be easily updated with new paint and trim. You may get lucky and find a home that’s a good price and only needs finishing touches, adding tens of thousands of dollars with minimal investment.

Source: (Article by John Stassen and Randy Mackay / www.hgtv.ca)

Reviews Flipping Homes, real estate

For most Canadians, your home is your most important investment. But owning a home also comes with a great deal of responsibility. When unforeseen circumstances impact your ability to meet your mortgage payments, it’s important to take quick action and contact your lender. With early intervention, your lender can help you fund a solution to your financial difficulties.

For mortgages insured by the Canadian Mortgage and Housing Corporation (CMHC), CMHC provides lenders with the tools and the flexibility they need to achieve a solution to your unique financial situation. Depending on your circumstances, this might include:

• Converting variable rates into fixed to avoid sudden rate increases
• Temporary short-term payment deferral.
• Extending your repayment period to lower your monthly payments
• Adding any missed payments to your outstanding balance
• Arranging special payments unique to your particular financial situation

CMHC is also willing to consider other alternatives proposed by the mortgage professional to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

For more information visit: CMHC or contact me on 1.866.824.8057, and we can help guide you in the right direction.

Source: Canada Mortgage and Housing Company/Charmaine Idzerda, Verico Designer Mortgages Inc.

Mortgages CMHC, Mortgage Payments, Trouble, Verico Designer Mortgages Inc