Life In Durham: October 2011

Friday, October 28, 2011

Currently Listed for $353,900

Gracious and Elegant - this is trully a turn key home in one of Oshawa's oldest and most desireable areas. Completely Renovated Home

Designer Kitchen Features Custom Cabinetry, Stone Countertop, Pantries, Marble Floors, Professional Stove And Hood, All Newer Staimnless Steel Appliances. Almost 1800 Sq Ft Of Living Space Plus Enjoy The Summer On A Large And Private Backyard. Good Size Deck, Hot Tub, Swimming Pool! Bathrooms Feel Like A Spa!!

All Windows Updated, Refinished Hardwood Flrs, Two Full Bathrooms, Great Rec Room In The Bsmt With built in desk (Office Space), Tv Nook, Pot Lights

New Awning Above The Sliding Door Gives You A Chance To Enjoy The Deck no matter what the weather is - Come on out on Saturday afternoon and see this wonderful home for yourself or let your friends and family know about this fantastic home!

See the full gallery on Posterous

If you can't make it to the Open House please feel free to contact me and set up a private showing at your convenience

Scott Roy

REMAX JAZZ

21 Drew Street

(905) 728-1600

(905) 435-SELL

scott@lifeindurham.com

www.lifeindurham.com

Friday, October 21, 2011

Mortgage Affordability

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Mortgage Affordability

When shopping for a new home, the first step is to figure out how much you can afford. Affordability is based on the household income of the applicant(s) purchasing the house, the personal monthly expenses of those applicants (car payments, credit expenses, etc.), and the expenses associated with owning a home (property taxes, condo fees, and heating costs).

You also need to determine if you have enough cash resources to purchase a home. The cash required is derived from the down payment put towards the purchase price, as well as the closing costs that must be incurred to complete the purchase.

How to Estimate Affordability

Lenders look at two ratios when determining the mortgage amount you qualify for, which generally indicate how much you can afford. These ratios are called the Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio. They take into account your income, monthly housing costs and overall debt load.

The first affordability rule, as set out by the Canada Mortgage and Housing Corporation (CMHC), is that your monthly housing costs – mortgage principal and interest, taxes and heating expenses (P.I.T.H.) - should not exceed 32% of your gross household monthly income. For condominiums, P.I.T.H. also includes half of your monthly condominium fees. The sum of these housing costs as a percentage of your gross monthly income is your GDS ratio.

The CMHC’s second affordability rule is that your total monthly debt load, including housing costs, should not be more than 40% of your gross monthly income. In addition to housing costs, your total monthly debt load would include credit card interest, car payments, and other loan expenses. The sum of your total monthly debt load as a percentage of your gross household income is your TDS ratio.

Down Payment

Because the minimum down payment in Canada is 5%, this benchmark is used to determine your maximum affordability. Ignoring income and debt levels, your maximum mortgage would be Normal 0 false false false MicrosoftInternetExplorer4 [down payment $ ÷ 5%]. Any mortgage with less than a 20% down payment is known as a high-ratio mortgage, and requires you to purchase mortgage default insurance, commonly referred to as CMHC insurance.

Cash requirement

In addition to your down payment and CMHC insurance, you should set aside 1.5% - 4% of your home's selling price to cover closing costs, which are payable on closing day. Many home buyers forget to account for closing costs in their cash requirement.

NOTE:

You should always consult a mortgae specialist of your choice to see exactly what you would qualify for, being prequalified will make your home search much easier. If you do not have a mortgae specialist let me know and I can refer you to one of our in house specialists at RE/MAX JAZZ

Scott Roy

RE/MAX JAZZ

21 Drew St. Oshawa ON

(905) 728-1600

DON'T FORGET LAND TRANSFER TAX WHEN PURCHASING A HOME

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Land Transfer Tax

Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a % of property value, using asking price as a close estimate. Home buyers in Toronto, unfortunately, also incur an additional municipal tax. However, Ontario, British Columbia, Prince Edward Island and the city of Toronto offer land transfer tax rebates for first-time home buyers to offset the unwelcome cost

Ontario Land Transfer Tax

To Calculate your land transfer taxes simply use the following calculation:

Purchase Price of the Home- $350,000

ON THE FIRST $55,000 multiply by 0.5% (55,000 x 0.5% = $275)

ON $55,000 - $250,000 multiply by 1.0% (195,000 x 1.0% = $1,950)

ON $250,000 - $400,000 multiply by 1.5% (100,000x 1.5% = $1,500)

ON $400,000 and over multiply by 2.0% (not applicable for this calculation)

($275 + $1,950 +$1,500 = $3,725) Land Transfer Tax Amount Payable

($55,000 + $195,000 + $100,000 = $350,000) Purchase Price of the Home

Ontario First-Time Home Buyer Land Transfer Tax Rebate

The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $2,000.

Eligibility

The buyer must be older than 18 years
The buyer must occupy the home within nine months of purchase
The buyer cannot have owned a home anywhere in the world
The buyer's spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty

Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227,500. For houses over $227,500, home buyers will receive the maximum $2,000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home.

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Monday, October 17, 2011

New Weekly Article - The Quick Energy Fix || Home By Design Weekly Article

Great Article about enjoying the holidays and reducing your stress!

You’ve got a project due at work, Thanksgiving travel plans to book, and kids to help with their homework every night. Faced with such a full schedule of activities and obligations, you’re likely feeling overwhelmed and wondering where all your energy went. And, as you head into one of the busiest seasons of the year, you can only predict that things could get worse from here.

That’s all the more reason to start paying attention to your energy levels and finding ways to increase them now. Doing so will help you tackle your many tasks and, most importantly, enhance your enjoyment of daily life

Read more by clicking on the link below!

New Weekly Article - The Quick Energy Fix || Home By Design Weekly Article

Scott Roy

RE/MAX Jazz

21 Drew Street, Oshawa ON

(905) 728-1600 Office

Wednesday, October 12, 2011

CMHC Mortgage Insurance

Many New Home Buyers are sometimes unclear on what CMHC is and how it works. Click on the link below for some clarification provided by CMHC themselves.

CMHC Mortgage Insurance

Look for other great resources such as the section dedicated to those who are new to Canada - If you are or know of someone who is new to Canada and wants to purchase their first home click the link below for more detailed information in your language of choice.

Newcomers to Canada

Durham Region is a great place to start your new life in Canada - Close to Toronto, Less expensive homes and housing options, close to public Transit and transportation corridors to Toronto.

Please feel free to contact me if you would like additional information on Durham Region and the wonderful communities and cities that make up Durham Region.

Scott Roy

RE/MAX Jazz

21 Drew Street

Oshawa, Ontario L1H 4Z7

(905) 728-1600 Office

(905) 435-SELL

Home Operating Costs

Every new home buyer and even those home owners who have not purchased a home in more than 9 years should refresh on the costs associated with purchasing a home

Home Operating Costs

If you are a New Home Buyer and would like to know more about the process and costs associated with purchasing a home please feel free to contact me.

Scott Roy

RE/MAX Jazz

21 Drew Street

Oshawa Ontario L1H 4Z7

(905) 728-1600

(905) 435-7355

scott@lifeindurham.com

The Buyer Representation Agreement

Buyers should be aware of their options so they are better able to protect their positions in a transaction. The role of the Realtor has been undergoing tremendous change over the past several years. Prior to 1995, all Realtors worked for the Seller in a Real Estate transaction. A buyer can now choose to retain representation with a Licensed Realtor and receive the same legal relationship that Sellers have received for nearly 100 years.

Buyers who understand their options will typically want to select their Real Estate representative EARLY in the transaction in order to avoid potential conflicts of interest should they be making many calls to various Realtors (typically listing sales representatives representing the Seller)

The Internet allows buyers to conduct tremendous research on their own before looking at homes or contacting a Realtor. It cannot be understated that part of the research conducted from a buyer’s perspective, is the careful selection of the Realtor to represent their interests in the acquisition of property. A skilled Buyers sales representative will add tremendous value to the buyer during the entire process of searching for a home and preparing and drafting of the contract, during negotiations, and overseeing the contract to completion.

The Buyer Representation Agreement

For more more information or to schedule a Buyers Consultation please contact me directly

Scott Roy

RE/MAX Jazz

21 Drew Street

Oshawa, Ontario L1H 4Z7

(905) 728-1600 Office

(905) 435-7355 Direct

scott@lifeindurham.com

New Weekly Article - Bright Possibilities || Home By Design Weekly Article

Los Angeles Based designer Michelle Workman shares how her designs were always a touch different than classmates back in school and how she effectively uses a unifying theme of colour!

Now an established professional, dressing homes and commercial spaces for the Los Angeles elite through Michelle Workman Interiors, she stays true to her design roots by utilizing simple yet elevated color palettes. Drawing inspiration from her time spent in Florida, Georgia, and California, Workman has developed a signature style that’s a combination of traditional and modern elements—such as this West Hollywood condo design, which she describes as West Hollywood meets Palm Beach.