Monthly Archives: April 2011

Top Tweets of the Week: 04/25 – 04/29

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Today was a big week in the real estate and finance community leading up to the BILD and CMP awards, and, of course, the mammoth media takeover that was the Royal Wedding.

Here it is, folks, the week in Tweets!

04/25

@DaveChomitz Dave at ChomzTV

Holy Cow …. just got an email from a “beautiful girl from Russia” and she thinks that I am the man in her destiny !!! #GonnaBeAGoodWeek

[We once got an e-mail from an ‘African Prince’...  but, surely yours is the real deal]

@BuzzBuzzHome BuzzBuzzHome

If the Royal Couple moved to Toronto, would they live at The Ritz, due to proximity to The Princess of Wales Theatre? http://ow.ly/4GjAM

[Either that or Da Bisha, whose resto is supposedly D. D. Delish-ahh (at least, according to the RateHub Rapper]

@iSlutsky Matthew SlutskyCool Crocs

I bought really cool Crocs. True.

[Not convinced this is possible? Judge for yourself ->]

04/26

@VIRGINIAMUNDEN Virginia Munden

Virginia`s BUZZ…sitting with @RateHub_Canada talking Social Media and Shoes…amazing girls!

[Virginia, a girl after our own hearts]

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The 10-Year Mortgage – A Closer Look

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The best rate will save you hundreds, but the wrong term can cost you thousands

Our friend and mortgage expert John Shearer is advising RateHub readers this week on the feasibility of the rarely elected 10-year mortgage.

Too often borrowers are concerned with getting the lowest mortgage rate, not realizing locking in to the wrong term can be significantly more expensive.

The 10-year mortgage is one product that consistently demonstrates how selecting the wrong term can cost you.

Although it does not happen often, every once in awhile, a customer will inquire about a 10-year term. Record low interest rates and the inevitability of rate increases have drawn some customers to longer terms as of late.

The 10-year mortgage allows maximum risk aversion, and the knowledge your mortgage payments will not change over the course of a decade. This kind of security comes at a price, however.

Mortgage rates are priced on the risk posed to the lender. So, simply put, the longer you lock in the security of a set interest rate, the more you will have to pay the lender.

Anecdotal evidence suggests a 10-year term has historically been offered at a typical premium of 1.25% more than the 5-year term, which is the most popular mortgage term in Canada.

You may be willing to pay a premium for future protection, but let’s look at how much that extra security will cost you in the short term and also how many times the added security has paid off in the last 25 years.

For the purpose of the following examples, let’s use a premium of 1.00% on the 10-year mortgage compared to the 5-year mortgage. This simplifies our discussion as well as provides a conservative outcome.

 (Note: A recent synopsis of lenders’ rate sheets indicate 1.00% as the average difference between 5- and 10-year terms)

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Top Tweets of the Week: 04/11 – 04/15

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Election coverage, style counsel, and celebrity engagement: all in a week in Tweets. The Toronto real estate and financial community is, as always, highly transitional.

Shout-out to our Tweeps!

04/11

Scott Disick walking stick@BankGuru Bank Nerd

@RateHub_Canada Just because @KourtneyKardash boyfriend states [walking sticks] are in style, doesn`t make them in style! lol @amitandroy

[Now, does the careless manner in which The Kardashians spend money provide a foil to your financial reporting, Bank Guru? Or, do you watch for the ‘dress for success’ pointers?]

@syladurantaye Steve Ladurantaye

What I`ve learned covering election: When dealing with political types, every call starts with “is this on or off the record?” #cdnpoli

[Indeed a loaded question to a reporter]

04/12    

@YafaSakkejha Yafa Sakkejha

“There`s so much competition to be mediocre. There`s no competition to be the best.” – @RichardBranson

[‘Nuf said]

@BrianPersaud Brian Persaud

Lesson from Mark McGrath, never hand someone that much leverage over you. To an expert negotiator that is unforgivable #CelebrityApprentice

[Not only is Mark McGrath relevant again, but giving us life lessons?]

@jianghomeshi jian ghomeshi by DavidPylyp

Layton to Harper: “I`m not sure why we need so many more prisons…the crooks seem quite happy in the Senate.”  #db8

[Oh, snap!]

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The hidden dangers of posted mortgage rates

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If you navigate to the mortgage rates section on most of the major Canadian bank websites, you will notice there are typically two rate columns. One for ‘posted rates’ and the other devoted to ‘special offers’ (as described by RBC, for example), otherwise known as discounted mortgage rates.

The starting point of negotiation should be the latter category of rates, but many consumers are unaware of this and go in to mortgage meetings ill equipped. In fact, the more loyal to your bank you are – if, say, you have three or more products with one bank – the less of a deal you are likely to be offered. Your bank interprets your loyalty as reason to believe you are less likely to shop around, making you less price sensitive.
Further, those borrowers up for mortgage renewals are even less likely to shop around (85% renew with their existing lenders). So, resist the temptation to sign the dotted line when your bank sends you a mortgage renewal notice. It can save you a full percentage or more on your annual mortgage rate, or thousands of dollars.The Bank of Canada’s recent report on ‘Discounting in Mortgage Markets’ confirms this rationale and  found that new clients received a rate discount of .10% more than existing clients, and that, on the whole, ‘loyal customers pay more’.[1]

The report also concluded that if you hire a mortgage broker in Canada to do your mortgage shopping for you, it will leave you .32% better off on average. [2]

However, the most financially devastating aspect of the posted rates game is one you cannot foresee. If at some point during your mortgage term you need to refinance, posted rates become even more significant in calculating your refinance penalty.

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Co-Ownership…One for All, or All for One?

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Co-ownershipOur friend and lawyer Shadi Nasseri is back this week offering her legal counsel on the topic of co-ownership, not so simple as just co-habitation.

Whether it’s your first, a total fixer-upper, or your ultimate dream home, no one can deny the pure rush of joy associated with property ownership.  Signing your name on a Title/Deed document is an absolute moment of glory, which is multiplied when shared with the ones you care about most. However, when it comes to property co-ownership – whether the other party is your better-half, your best friend or your colleague – there are some legal factors that need to be taken into consideration. Property owned by more than one person must be owned in one of two ways: ‘Joint Tenancy’ or what is referred to as ‘Tenancy in Common’.

There are important differences between Joint Tenancy and Tenancy in Common to which you should be aware.

Some refer to Joint Tenancy as either the “Last Man Standing” or “A Game of Russian Roulette”. This is because of its most prominent characteristic: when one joint tenant dies, their interest automatically goes to the surviving joint tenant(s).  In this way, the title is finally unified with the last survivor. Only that last person can use his or her Will to give the property to someone else. Lawyers call this the “right of survivorship”.

Tenancy in Common, on the other hand, conveys no right of survivorship. In this arrangement, each person owns a half, or third, or some other portion that belongs only to them. When one co-tenant dies, the interest of the defunct co-tenant forms part of his or her estate and can be conveyed to a next-of-kin.

Since these types of co-ownership have different rights and obligations, choosing the wrong type of co-ownership can be a costly mistake. So, when considering ownership with others, make sure you understand the legal implications!

Shadi Nasseri

10 King Street East, Suite 1400
Toronto, Ontario,
Canada M5C 1C3

www.mytorontorealestatelawyer.com

Bank of Canada keeps prime rate at 3.0% leaving variable mortgage rates at 2.10%

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The prime rate remains at 3.0% today, keeping variable mortgage rates at 2.10% (Prime-0.90%). Analysts expected the prime rate to stay flat due to the expected negative impact the inflated Canadian dollar will have on net exports.

The prime rate has remained at 3.0% since November of 2010 and many are predicting it will stay flat at 3.0% until at least June. So what does this mean for your mortgage?

For those currently in a variable mortgage it means you can continue to enjoy incredibly low interest rates. Many Canadian mortgage brokers recommend taking advantage of this time to increase your monthly payment as quickly as possible.

For those currently shopping for a mortgage, variable rates are looking especially attractive, as 5-year fixed mortgage rates increased to 3.82% last week, creating a 1.72% spread. Mortgage brokers like Nawar Naji, from Mortgage Alliance, recommend taking a variable, paying it like a fixed and adjusting for inflation.

Top Tweets of the Week: 04/04 – 04/08

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A couple of big discoveries in our little real estate community this week – the saxogram, the Johnny Cash money machine, and the best condo deal in downtown Toronto since 2008!

Our week in Tweets…

04/04

@iSlutsky Matthew Slutsky

My favourite restaurant! RT @WBrettWilson: A great evening at #notabene in downtown Toronto. Well done Chef David Lee….

[Well, if Dragon’s Brett Wilson and BuzzBuzz’s Matt Slutsky will be there, so will we]

@darafahy Dara Fahy, A.M.P.  

Time for a nap with my pal after frantic Monday. Good thing she`s always up for a nap… yfrog.com/h2gt5vyj

[Pictures of dogs will ALWAYS make it on this roundup]

04/05 – Sent a saxogram

@TalkCondo Amit & Roy Bhandari

@SavelSells best hashtag….EVER? #anewjobababyoracondo

[Seeing as how you’re both realtors, we’re going with condo?]

@SavelSells Mark Savel

@ratehub_canada pssh, Sheen is so last week…plus, music is my only addiction – http://goo.gl/aWK7k

[The saxogram has taken over Charlie Sheen as the latest social media sensation]

04/06 – Pace Condos takes over the Twitterverse

@BuzzBuzzHome BuzzBuzzHome

Wowza! Looks like Pace Condos really is the best &$@!ing deal in town! http://ow.ly/1soflv

@TalkCondo Amit & Roy Bhandari

Low $500psf? What is this?? 2008? #pacecondos

[No, it’s, like, totally 2011!]

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More than JUST a Mortgage at Safebridge Financial

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SafebridgeRateHub founder Alyssa Richard embarks on a visit to see where the magic happens at Safebridge Financial

RateHub’s relationship with Safebridge started out as a hunt to secure the lowest mortgage rates, but as I learned more about the company, I was intrigued by their unique business model. These Toronto mortgage brokers are a full service operation for mortgage, insurance and complete investment planning.

Walking into the Safebridge office, the atmosphere is friendly but professional and Drew Donaldson, senior mortgage agent, reminds me that many of his clients are coming in to discuss the biggest investments of their lives.

At the core of the company stand Elisseos and Chris, mortgage and insurance broker respectively. The two previously worked independently in their respective craft, but were constantly referring each other deals. This mutual respect and shared passion for personal finance grew into what is today known as Safebridge.  Their commitment to the craft and amiable personalities have allowed them to build strong partnerships with real estate offices, and maintain a digital presence. In fact, most of the office is on Twitter and I’ve included their Handles below.

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House-hunting? Don’t forget to bring your Smartphone!

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Zoocasa appOur trusted real estate lawyer friend Shadi Nasseri is back this week blogging on her favourite real estate apps for iPhone, Blackberry and beyond!

Spring is here, the birds are singing, the sun is shining and home buyers are out hopping from house to house looking for the perfect dwelling. This year, as you drive around your favourite neighbourhoods scouting homes and open-houses, don’t forget to bring your Smartphone along. They’re not on hand just so you can check-in at various Foursquare locales, or to update your status every step of the way – there are actually numerous amazing and incredibly helpful apps that can make your home search more efficient and enjoyable.

Realtor.ca appUsing real estate apps like Zoocasa and Realtor.ca, with one touch you’re be able to see properties for sale around your current location displayed on a Google map. Narrowing your search is fast and easy as these apps allow you to filter by criteria such as price, and number of bedrooms and baths. You can scout through numerous photos of the property before getting out of your car and even contact the listing agent and set up an appointment. One of the best features these apps offer is that you can mark your favourite properties and visit only those that meet your criteria, saving you time and gas.

If you’ve been out on a home hunt lately you may have noticed square, black and white, two-dimensional codes on real estate signage, called QR codes. Scanning the codes with your Smartphone will lead you to text, a website or a virtual tour related to the listing. These links can be a great source of information which you can save, and return to, as you later recap your day, making paper pushing a thing of the past.

Once you’ve found a home you love, make sure to check out local businesses, retailers, and amenities within walking distance. Local search applications like Poynt, Yelp and Aroundme will identify exactly where you can get the best cup of coffee or the closest ATM in your new neighbourhood.

WARNING: once you’ve tried these apps, you may wonder how you ever survived without them!

Plus, keep your eyes out for RateHub’s new mobile mortgage site launching in the coming weeks!

Shadi Nasseri

10 King Street East, Suite 1400
Toronto, Ontario,
Canada M5C 1C3

www.mytorontorealestatelawyer.com

Top Tweets of the Week: 03/28 – 04/01

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Toronto real estate communityIt was a busy week in our little real estate/mortgage community, with the iPad2 in action and RateHub making its rounds on a full-fledged media tour.

Through the eyes of our industry partners and acquaintances, here’s our week in Tweets!

03/28

@TechvibesTO TechvibesTO

3 Toronto real estate startups we`re buzzing about http://ht.ly/4nNqz @RateHub_Canada @BuzzBuzzHome @RateSheet

[Good way to start off the week: a ‘lil recognition!]

03/29 – Here we go on tour

@syladurantaye Steve Ladurantaye

Podmate @jeffreybgray says if I put this @RateHub_Canada gift house on market, it`ll sell for $50g over asking. http://yfrog.com/h38bjttj

[What a hustler! And he’s not into profit sharing. We asked]

@BuzzBuzzHome BuzzBuzzHome

Just got to #ThirstyTuesday!! MmMmm. The drinks are so nice on the lips, and the gossip so good to the ears!

[Yes, everyone was abuzz guessing Cliff’s age!]

@BrianPersaud Brian Persaud

It makes sense now why Capital Economics refused to appear on @InsideTorontoRE with #CMHC or @TREB_Official http://ow.ly/4oVF7

[Oh, snap! Capital Economics better do a bit more research next time before releasing their findings]

03/30

@TalkCondo Amit & Roy Bhandari Roy Bhandari

@RateHub_Canada @amitandroy that faux hawk is out of control!

[You know what they say: the bigger the hawk, the better the talk -> TalkCondo]

@iSlutsky Matthew Slutsky

The time is 4:22am Do you know where your Realtor is?? Maybe in a condo lineup??? Check this out: http://ow.ly/4pjdw

[The real question is, why are YOU up at 4:22am, Matthew?!]

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