Robert Morrow

Have you received your 2008 property assessment form from MPAC?

Most of the people I've spoken to state their homes have increased in assessed value close to $30,000 since 2005. My home's assessment was $37,000 and it's a condo. We have done no improvements to the interior and any improvements made by the condo corporation to the exterior have been more than covered by the annual increases demanded for condo fees. So why the impressive increase?

Despite the other factors the official flyer mentions, assessments are based mostly on recent sales in your neighbourhood. A lot of condo's have sold on our street over the past three years. I'm a real estate agent, I know what they sold for. My assessment is now about $10,000 below actual market value. That's hard to swallow.

And if they are assessing homes at values they won't phase in until 2012, why are they saying it's worth that price now? Are my taxes based on the 2009 (phase 1) value (which has only jumped $9,200) or on the full 2012 (phase 4) value that they say it is worth on Jan 1/08?

Step one: Get an friendly agent to tell you what homes in your neighbourhood have sold for over the past three years. Don't know anyone? Send me an email @ robert@HamiltonHomeReview.com. Leave me your name, address and an email I can reach you at. I'll send you as much info as I can.

You can also use the "AboutMyProperty" feature at www.mpac.ca. They well allow you up to 24 comparisons free of charge. You'll need your User ID and Password which is printed on the bottom right of the Property Assessment Notice you received in the mail.

Stpe two: If, after researching, you feel your property has been unfairly assessed, you need to file a RfR form (by March 31/09) which you can get at www.mpac.ca or by calling 1-866-296-6722.

Step three: Once you receive a decision--based on your RfR form-- you have 90 days to file an appeal with the Assessment Review Board (ARB). they, of course, have their own appeal process. For more info on it, contact ARB at 1-800-263-3237 or visit www.arb.gov.on.ca.

At the ARB hearing, it is MPAC's job to prove the accuracy of the assessment and they will do so by presenting comparable properties as evidence (they will share this info with you prior to a hearing, likely so that you might reconsider continuing the process). If you are still undeterred, you will be asked to provide similar comparables. You can get these from the "AboutMyProperty" service at MPAC or from an understanding real estate agent (once again I can be reached at the above email address or via the magazien at: www.HamiltonHomeReview.com/contact.html.

I am very interested in other people's take on this assessment process, both consumer and agent, so please feel free to comment, positive or negative...in aggreance, or not.

Robert J. Morrow is editor of www.HamiltonHomeReview.com, Greater Hamilton's Online Real Estate Magazine. Mr. Morrow is also a REALTOR(R) with Chase Realty Inc., Ancaster, ON.

Stuck in with this year's assessments was a little brochure about a new property tax grant for Seniors. I thought it was worth talking about online because most people in that age bracket are not computer savvy and are unlikely to be aware of this new program. They may need you to point it out to them.

If you know someone who is 64 or older and who owns a principal residence in Ontario, then they are eligible for this grant of maximum $250 per year. Doesn't sound like much but to many in that age group, it could make a difference at tax time. (In 2010, the grant will increase to $500 per year).

If your senior (or senior couple) have a combined income of $45,000 or less, they receive the full $250 grant to apply against annual property taxes. Those with higher incomes still get a grant but proportionately lower.

Applications for the grant will be included in the Ontario Tax Credit portion of the 2009 Income Tax Returns (Form ON479), available in early 2009. Just let them know so they look for it when doing taxes early in the year. Be sure they are aware, the form must be filed by March 31st in order to qualify.

They can get more info by calling 1-800-337-7222 or 1-800-263-7776.

Robert J. Morrow is editor of www.HamiltonHomeReview.com, Greater Hamilton's Online Real Estate Magazine.

As an agent, I could see it happening.

Now, the President of the Realtors Association of Hamilton & Burlington makes it official:

"The summer resale market demonstrated how different the various area communities are; while lower Hamilton saw price increases, the average price on Hamilton Mountain was down two per cent year over year,"said Ann Cosens, RAHB President in the recent edition of the Board's newsletter. "Ancaster, Waterdown and Grimsby also saw a decline in average price, illustrating that the market is beginning to adjust to the increased number of properties for sale."

"With the market stabilizing, there has never been a better time to be looking for a home,"added Cosens. "With 5,200 properties currently on the market, consumers have more properties to choose from and less pressure to make a quick decision."

That's good news for Buyers as Sellers are more apt to consider offers that are reasonable put perhaps not as close to listing price as in previous months this year. If Sellers are motivated to sell (for various reasons), the Buyer can prepare an aggressive offer that will be accepted if it takes into account the Seller is not about to willingly "give away the store".

Though Sellers realize this isn't a market in their favour, they still want close to their asking price. They are assuming--and rightfully so--that their agent has researched the market and the neighbourhood and suggested an appropriate price. If that is the case, then an aggressive (but not ridiculous) offer should be seriously considered. There's simply too much competition not to be open to a close offer.

If, on the other hand, the Seller is simply asking for the price they "need" for whatever reason, it may not be realistic in the current marketplace. An aggressive offer, therefore, may not be welcomed. But if the Seller's agent has a good relationship with the client, and agrees with the Buyer's agent that the aggressive offer is reasonable, a deal should still be possible.

On July 9, 2008 the government of Canada anounced it will no longer be insuring 40 year amortization or 100% mortgages effective October 2008. They have also announced there will be new minimum beacon scores for insured borrowers and more stringent confirmation on income. This potentially affects the stated income business for self borrowers. Canada Mortgage and Housing (CMHC) has not released anything yet but we anticipate they will do so soon.

This means that borrowers must have 5% down and their mortgage can only be amortized up to 35 years, as of October 15, 2008. If you know anyone that needs 100% financing they should be calling the link below now as the government will honour anyone up to October 2008.

"I have 3 lenders who are still accepting applications, the approval must be in by October 15/08 in order to qualify,: says Rita Cruse of Mortgage Alliance in Dundas, ON. "The criteria for acceptance is they must have good credit and they need to have the closing costs saved which is usually 1.50% of the purchase price. This is an excellent way of getting into home ownership, now is the time to see if you qualify."

If you're interested, contact Rita at: rcruse@tmacc.com as soon as possible. You can also reach her via her website at www.mortgagealliance.com/ritacruse.

Mortgage Insurance is a credit risk management tool that protects mortgage lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender will submit a claim to the mortgage insurer to recover its losses. The law requires federally regulated lenders to obtain mortgage insurance on loans where homebuyers make downpayments of less than 20 percent of the purchase price. You can check out the article on this link:http://finance.sympatico.msn.ca/banking/mortgages/article.aspx?cp-documentid=8537625

Robert J. Morrow is editor of www.HamiltonHomeReview.com and a REALTOR(R) with Chase Realty Inc., Ancaster, ON

The prime rate remains unchanged at 4.75%...for now.

If you have a variable/adjustable rate mortgage, your payments will remain unchanged. The Bank of Canada announced today that economic growth and inflation are lower than anticipated last month. The overnight rate--what banks charge each other for overnight loans--remains steady at 3%.

The Bank of Canada will likely cut interest rates further in the near future, hopefully causing similar cuts from national banks.