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| This email was sent by The Mortgage Group. 2788 St-Joseph Boulevard, Lower Unit, Ottawa, Ontario, K4C 1G5 |
The Ottawa Citizen published a headline this past weekend that said "The Comeback Kids" in reference to the fact that first time home buyers are starting to return to new home builders.
While resale homes have remained strong and are in fact higher than they were this time a year ago, new home sales plunged by almost 55% during the last quarter of 2008 as compared to 2007. Slowly but surely, that figure is improving.
Drawn by low interest rates, builder and government incentives, new home buyers are flocking back to the model homes. Typically, 35% to 40% of the market for new homes comes from the first-timers and for some builders, the number may be as high as 50%, depending upon the "extras" added which may include very attractive interest rates if the builder has partnered with a lender.
Where are these new home buyers going? Most of the first-timers are going to the suburbs, where homes can cost anywhere from $50,000 to $75,000 lower than within the city. Orleans, Kanata and Barrhaven continue to lure young couples hoping to start families or who already have started. According to the Greater Ottawa Home Builders Association, the average price of townhomes and semi-detached properties was $258,700 in west Ottawa (including Kanata), $255,400 in the south area (such as Barrhaven) and $285,300 in the east (as in Orleans).
Of course, you can generally do better buying a re-sale home. New homes can be a bit like buying a new car, if you're competing with newer models, you don't always get the same price the builder does if you're in the same neighbourhood where building is on-going. It's best to make sure you want to stay in your new construction home at least five years or more to realize the gain from paying down the mortgage and increased costs of new construction.
The economic chain reaction of a home buyer is measurable; from plumbers, electricians, furniture salespeople, decorators, home improvement stores to just about anything else you can think of that happens when a home is bought and one is sold! Real Estate is one large cog in the engine of our local economy and the continued confidence ensures Ottawa is going to be the first out of the downturn to the economy.
When you are in the market to buy a home, your Realtor, lawyer and mortgage broker may talk about "Title Insurance" for your property. With so many other "insurances" being required when you buy a home, it can become quite confusing!
In a nutshell, Title Insurance gives you added protection should someone else claim a legal interest in their property. It also protects you against any loss that might result from municipal work orders, survey issues, certificate of location defects, unpaid taxes by previous owners and a number of other covered title risks such as Title Fraud. Ask your lawyer for a complete list of the risks that are covered.
What is Title Insurance?
When you buy a home, you're actually paying for title to the land: essentially, you acquire the right to occupy and use the space. Part of the price paid will be for what is known as "improvement" which is generally the actual house that sits on the land, but the major cost of most property is the land itself. You obtain title to that property when the owner signs the deed (transfer document) over to you. Title is then registered in the government's land registration system.
Before closing, records at the Land Registry Office are "searched" to determine the previous ownership of the property, existing mortgages, liens for outstanding taxes, utility charges, claims from trades,etc., registered against the property. At closing, you reasonably expect the property to be free of such claims, so normally they must be cleared up before closing. For example, the Seller's mortgage will be discharged (paid off) and outstanding expenses (such as taxes, condo fees if applicable and any utility charges) will be paid for (or adjusted for) at closing.
If the title is restricted by rights and claims of others it could cause you to not be able to sell down the road if things aren't cleared up. It could also limit your use and enjoyment of the property (such as in the case of shared driveways or easements) and even bring financial loss. However, such issues may not be discovered or remedied before closing. Title insurance will protect you against these situations.
Do I need Title Insurance?
To fully understand what type of protection title insurance can provide you, talk to your lawyer, title insurance company or insurance agent/broker to determine whether or not you should purchase title insurance or if other options exist. Once you get all the facts, you can make an informed decision based on your specific situation and needs.
Who is protected with Title Insurance?
Title insurance policies can be issued in favour of a purchaser (on new/resale homes, condos and vacation properties), a lender, or both the purchaser and lender. Lenders will sometimes require title insurance as a condition of making the loan. Title insurance protects purchasers and/or lenders against loss or damage sustained if a claim that is covered under the terms of the policy is made.
What does Title Insurance cover?
For a risk to be covered, generally it has to have existed as of the date of the policy. As with any type of insurance policy, certain types of risks might not be covered, for example, native land claims and environmental hazards are normally excluded. Be sure to discuss with your lawyer what risks are covered and what are excluded.
How long is the insurance coverage?
Residential title insurance coverage lasts as long as you own the property. Most residential title insurance policies extend coverage to your heirs through a will, to a spouse in the event of a divorce, or to children when the property is transferred from parents to children for nominal consideration.
In the case of title insurance covering a lender, the policy remains in effect as long as the mortgage remains on title. A lender covered under a title insurance policy is insured in the event the lender realizes on its security and suffers actual loss or damage with respect to a risk covered under the policy. Lenders are usually covered up to the principal amount of the mortgage.
The premium for title insurance is paid once (at the time of purchase). Generally speaking, in Canada the purchaser of the property pays for the title insurance, though there can be situations where the seller pays for it. Some policies automatically cover both the purchaser and lender; others will cover both for a small additional fee.
Protection and peace of mind
Title insurance can help ensure that a closing is not delayed due to defects in title. And, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of loss. It is important to keep in mind that title insurance does not replace legal advice when purchasing property.
If your home is important to you, don't overlook this important piece of insurance.
If you'd like more information, click on this link from the insurers at http://www.firstcanadiantitle.com/portal/server.pt?open=514&objID=3810&parentname=CommunityPage&parentid=0&mode=2&in_hi_userid=3675&cached=true First Canadian Title.
Are you still sitting on the fence about buying your first home? Many people are probably bringing to your attention the fact that interest rates are rising and you're feeling the pressure! Ok, it's true, interest rates are rising, but I don't think the current 3.99% is anything to worry too much about. We bought our first home at an 11.5% interest rate and we've been fine.
There are many questions probably running through your mind. The common ones are "how much can I afford"; "how do I get the best mortgage deal with so many competitive products?"; "should I use an agent or go it myself?" to "should I buy new or resale?".
This will probably be one of the largest financial transactions you undertake for a long time. It's a major decision. However, if you do your research and approach the process with an open mind and confidence, you will end up with something to be very proud of!
Here are a few tips to keep in mind and if you want more, check out http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_005.cfm CMHC's web-site:
Make Sure You Understand the Process.
There really shouldn't be anything that is so complicated that someone you trust can't explain to you. This is where Realtors truly come in handy. You can also turn to your accountant or lawyer. It's generally not a good idea to ask relatives for help in understanding legal terms and conditions! Research, learn the lingo and don't be afraid to ask questions!
You are the Most Important Person in the Process.
You are the person that is going to make this deal happen! You are selecting a home that meets your criteria; you must determine where your comfort zone is; you must be able to see yourself in this home for the foreseeable future; you need to know what your plans are and only you can make those decisions! Remember the most important part, make sure you get good advice from someone you trust!
Surround Yourself with Professionals.
You need a good Realtor, a mortgage specialist and a property lawyer to get you started. You most likely will need a home inspector and some other professionals too. In the end, these people save you time and money. Their knowledge of the community, the importance of the Real Estate transaction to the overall economy (and your personal goals), the intricacies of the process (including the amazing amount of paperwork!), negotiations and protecting your rights must be the most important things these people bring to you to help you reach your goals!
Approach your home buying experience with confidence! With the right people behind you, you will take that first step on the property ladder and never look down!
While you're considering buying that new home, you should also take into account all the things that you will need to do before you to move into it! Here are a few tips to help you plan for this big event!
•1. Call a mover or truck rental company at least two months in advance. Pick up boxes from stores and start stockpiling packing material and tape. Local newspaper offices sometimes have unused ends of newsprint available for packing or crafts - it's much less messy than newspaper.
•2. Make a list of the utility companies you need to contact and decide if you need a change-of-address form from the post office (or can you notify everyone on-line of your new address).
•3. Prepare your family, especially the kids, who can get very stressed http://www.canadianliving.com/family/parenting/kids_feel_stress_too.php by the upheaval of a move. Tell them what to expect so they don't get any surprises and help them adjust to the new surroundings by taking a walk around the neighbourhood.
•4. Separate your essentials - pack a travel bag with necessary items, such as toiletries and a change of clothes. The last thing you need after a hectic day of moving is a lost toothbrush. Don't forget to include a bag with prescriptions and a first aid kit!
•5. Purchase or rent a safe-deposit box for valuable items such as jewellry, legal documents (birth certificates, passports, etc). This way they won't get lost in the shuffle.
•6. Know that once you're in your new place, you shouldn't rush to get every picture and painting up on the wall the week you move in. Instead of unpacking or cleaning up the first night, give yourself a break and enjoy a nice dinner. Go on-line and find the restaurants that deliver or plan to take the family out for a nice break!
The Mortgage Group is a Team of Mortgage Agents covering Ottawa. We are dedicated to finding you great rates and providing exceptional service, for residential, investors and commerical mortgages.
The Mortgage Group is a Team of highly professional Mortgage Agents, covering Ottawa and the surrounding areas, dealing with the very best Mortgage Lenders in Canada. We help secure residential, investor and commercial mortgages for the First Time Home Buyer through to the experienced Real Estate Investor.
If you know of anyone who is looking to Buy, Sell or Invest in Real Estate, and would be interested in our great rates and exceptional services, please pass along my details or send me an email and I will be happy to contact them directly.
Ottawa Mortgages - www.OttawaMortgageSolutions.com (The Mortgage Group - Mortgage Brokerage). Refinancing or Renewing your Ottawa mortgage? First Time Home Buyer mortgage? Real Estate Investor mortgage? Commercial Mortgage? Debt consolidation? Let us show you how to save money! Access to over 40 Canadian mortgage lenders and great mortgage rates! Our experienced mobile Mortgage Agents are available to coach you through your mortgage experience. We negotiate on your behalf to save you money. Call us now - 1-877-933-8383 or email info@OttawaMortgageSolutions.com.
We specialise in helping people with mortgages for Buying a Home, First Time Home Buyer, Refinancing or Renewing, Investing in Real Estate or Debt Consolidation.
"My wife and I were referred to Chris by our Realtor, as we were having some problems due to my recent arrival from the UK. Chris worked tirelessly on our behalf, giving us advice and sourcing the best deal for us. His attitude towards us and his professionalism would lead me to recommend his services to anyone, and we will continue to use his services when it comes to our mortgage renewal"
Paul, Eryka and Aiden
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