Shoulda Woulda Coulda
Budget VS. Dream Home


Did you think back regret not making the move to purchase your dream home when you thought you had the chance? The house had everything your family wanted steps to the school, a walk to your favorite park, a great backyard with mature trees, and the cozy fireplace in the den. In reality the chance to get exactly what you want is still an option! Whether your dream property is a New York Style Loft with Soaring ceilings in hip downtown Toronto or  a Rustic Tudor Style with Original Gum wood Trim in Etobicoke, you can acheive your dream!

Seven Things You should do before you Search for your Dream Home
NOTE: FOR THIS EXERCISE FORGET ABOUT YOUR BUDGET

1. Make a list of your hobbies and pastimes (include things you aspire to do when you have more time like reading or painting)

2. Now think of the rooms, spaces,  and features that you desire that satisfy your aspiring hobbies..Ex Den or Library for reading or a backyard for gardening

3. Rank these features in order of importance and put aside those you couldn't live without.....Example you love to cook and want an island in the Kitchen  

4. Now list the rooms, spaces and features that you need in your daily life Example a driveway or to be walking distance to the subway or Transit  

5. Rank these features in order of importance and put aside those you cant live without....Ex Driveway or another bedroom for your next child.

6. Print these lists

7.  You are now ready to call me your Salesperson who will help guide you to your dream home!  


Richard will help guide you through the reality of the Toronto West housing market and go through the different types of pricing, features, and architecture that each neighborhood offers and he will get you to your Dream Home.

Tips for First-time Buyers for Real Estate in Toronto!

If you’ve ever thought about owning your own home, now may be the time to take action. Lower interest rates combined with a growing inventory of homes for sale in the Toronto market may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

Whether you’ve been dreaming of owning a home for years or you’ve just decided it would be a smart financial move to make, your first home buying experience will be a memorable one. It’s important to learn about your financing options in order to find the mortgage that’s right for you.

Here are some suggestions for first-time home buyers:

1. Educate Yourself About the Mortgage Process – By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership.

2. Save Just a Little Bit More – It’s not only important to save money for the down payment and closing costs, but it’s important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit – An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a credit report from credit reporting bureaus such as Equifax. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender – As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender, loan officer or mortgage broker you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you’ve identified two or three loan officers or mortgage brokers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved – Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a mortgage pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don’t Be Afraid to Ask Questions – Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect – Before you commit to purchasing a home, don't forget to hire a professional home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

May your journey on the road to home ownership be successful one guided by Richard Nestorovic Real Estate Representative in Toronto
Sourced on  http://toreal.blogs.com/

Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.

Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.

When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.

As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.

Glossary of Terms

AMORTIZATION -- The number of years it takes to repay the entire amount of a mortgage.

APPRAISAL -- An estimate of a property's market value, used by lenders in determining the amount of the mortgage.

APPRECIATION -- The increase of a property's value over time.

ASSESSMENT -- The value of a property, set by the local municipality, for the purposes of calculating property tax.

ASSUMABLE MORTGAGE -- A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts responsibility for making the mortgage payments.

BLENDED MORTGAGE -- A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.

BLENDED MORTGAGE PAYMENTS -- Equal or regular mortgage payments, consisting of both a principal and an interest component. With each successive payment, the amount applied to interest decreases and the amount applied to the principal increases, although the total payment doesn't change. (Exception: see Variable-Rate Mortgages)

BUY-DOWN -- When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender, or to the purchaser, in one lump sum or monthly installments.

CLOSED MORTGAGE -- A mortgage that cannot be prepaid, renegotiated or refinanced during its term.

CLOSING -- The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.

CLOSING COSTS -- Expenses in addition to the purchase price for buying and selling a property.

CLOSING DATE -- The date on which the title and keys to the property are transferred from the seller to the buyer, and the money is paid.

COMMON ELEMENTS -- The portions of a condominium development owned in common (shared) by the unit owners.

CONDOMINIUM -- Shared ownership in property. Owners have title (ownership) to individual units and a proportionate share in the common elements.

CONVENTIONAL MORTGAGE -- A first mortgage issued for up to 75% of the property's appraised value or purchase price, whichever is lower.

COUNTEROFFER -- One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.

DEBT SERVICE RATIO -- The percentage of a borrower's gross income that can be used for housing costs, including mortgage payment and taxes. (and condominium fees, when applicable)

DOWN PAYMENT -- The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

EASEMENT -- A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.

ENCROACHMENT -- An intrusion onto an adjoining property. A neighbour's fence, storage shed, or overhanging roof line that partially (or even fully) intrude onto your property are examples of encroachments.

EQUITY -- A homeowner's financial interest in a property. The difference between the value of the property and the amount owing (if any) on the mortgage.

ESTOPPEL CERTIFICATE -- A written statement of a condominium unit's current financial and legal status.

FIRST MORTGAGE -- The first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.

FORECLOSURE -- A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet ("defaults on") the mortgage obligations.

HIGH-RATIO MORTGAGE -- A mortgage for more than 75% of a property's appraised value or purchase price.

INTEREST -- The cost of borrowing money.

JOINT TENANCY -- A form of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s), apart from the deceased's will.

LEVERAGE -- Controlling a large asset with a relatively small amount of cash. In real estate, $25,000 down payment (or less) can be used to purchase (control) a $100,000 home, for example.

LIEN -- Any legal claim against a property, filed to ensure payment of a debt.

LISTING AGREEMENT -- The contract between the listing broker and an owner, authorizing the REALTOR to facilitate the sale or lease of a property.

LISTING BROKER -- The REALTOR who signs a contract with an owner to sell the property.

MAINTENANCE FEE -- A monthly fee paid by condominium owners for maintaining the development's common areas.

MORTGAGE -- A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt.

MORTGAGE BROKER -- A licensed individual who, for a fee, brings together a borrower in search of a mortgage and a lender willing to issue that mortgage.

MORTGAGEE -- The lender.

MORTGAGE INSURANCE -- Government-backed or privately-backed insurance protecting the lender against the borrower's default on high-ratio (and other types of) mortgages.

MORTGAGE LIFE INSURANCE -- Insurance that pays off the mortgage debt, should the insured borrower die.

MORTGAGE PAYMENT -- The regular installments made towards paying back the principal and interest on a mortgage.

MORTGAGE TERM -- The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.

MORTGAGOR -- The borrower.

MULTIPLE LISTING SERVICE® (MLS®) -- A system for relaying information to REALTORS about properties for sale.

OPEN MORTGAGE -- A mortgage that can be prepaid or renegotiated at any time and in any amount without penalty.

PARTIALLY OPEN MORTGAGE -- (Also called a "partially closed" mortgage.) Allows the borrower to prepay a specific portion of the mortgage principal at certain times with or without penalty.

PORTABILITY -- A mortgage feature that allows borrowers to take their mortgage with them without penalty, when they sell their present home and buy another one.

PREPAYMENT PRIVILEGE -- A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.

PRINCIPAL -- The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.

RATE (Interest) -- The return the lender receives for advancing the mortgage funds required by the borrower to purchase a property.

REALTORS -- Real Estate Professionals who are members of a local real estate board and the Canadian Real Estate Association. Only these professionals can call themselves REALTORS.

REFINANCING -- The process of obtaining a new mortgage, usually at a lower interest rate, to replace the existing mortgage.

RESERVE FUND -- The portion of a condominium maintenance fee that is set aside to cover major repair and replacement costs.

SECOND MORTGAGE -- A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.

SECONDARY FINANCING -- Second, third, fourth, etc. mortgages, secured by a property "behind" the first mortgage.

TAKE-BACK MORTGAGE -- See Vendor-Take-Back Mortgage

TERM -- See Mortgage Term

TITLE -- The legal evidence of ownership of a property.

TITLE SEARCH -- A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.

UNIT -- Term used to describe the individual home or apartment held by the owner within a condominium development.

VARIABLE-RATE MORTGAGE -- A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a large portion of the payment is applied to the principal.

VENDOR-TAKE-BACK MORTGAGE -- When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.

WEEKLY PAYMENTS -- Mortgage payments made weekly or 52 times per year.

ZONING REGULATIONS -- Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.