Market Watch Infographic for April 2022
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
How to get your finances in order before buying a home
Take these steps to ensure you're truly ready to pay for a mortgage
Many people aspire to be homeowners, but since it’ll likely be the most significant financial decision you’ll ever make, it’ll take careful consideration. You need to ensure you take the proper steps to put yourself in a good position to buy.
Have steady income
Unless you have a ton of cash on hand, you’ll need a mortgage to buy a home.
Whether you’re a full-time employee or freelance, how much of a mortgage you’ll qualify for depends on your income. Generally, the more you make, the more you’ll be eligible for.
Generally, lenders want to see that you’ve had a job with the same employer for at least 12 months. This is important to lenders because they may not want to take a risk on someone that just got a new job and has a chance of not passing the probation period. Having steady employment gives lenders peace of mind.
.
Take these steps to ensure you're truly ready to pay for a mortgage
Many people aspire to be homeowners, but since it’ll likely be the most significant financial decision you’ll ever make, it’ll take careful consideration. You need to ensure you take the proper steps to put yourself in a good position to buy.
Have steady income
Unless you have a ton of cash on hand, you’ll need a mortgage to buy a home.
Whether you’re a full-time employee or freelance, how much of a mortgage you’ll qualify for depends on your income. Generally, the more you make, the more you’ll be eligible for.
Generally, lenders want to see that you’ve had a job with the same employer for at least 12 months. This is important to lenders because they may not want to take a risk on someone that just got a new job and has a chance of not passing the probation period. Having steady employment gives lenders peace of mind.
.
In the case of freelancers, small-business owners or self-employed individuals, lenders want to see consistent income. They would qualify you based on the income listed on your CRA notice of assessments from the last two to three years.
Improve your credit score
Your credit score is listed as a number between 300 and 900. The higher your number, the more creditworthy you are. This number matters a lot to lenders since it’s a quick way to determine how likely you are to repay loans.
If your credit score is in poor standing (below 660), you may have difficulty getting approved.
Lenders may see you as a risk. They may deny you loans, or only be willing to provide you loans with unfavourable terms, such as a high interest rate.
Before applying for a mortgage, try to improve your credit score by paying down debt and limiting your credit usage. Keep in mind that your credit score won’t improve overnight. A meaningful increase may take months or even years.
Save for a down payment
You need to have a down payment to qualify for a mortgage when buying a home. How much you need will depend on the purchase price of your home.
- $500,000 or less purchase price – 5 per cent down payment required
- $500,000 to $999,999 purchase price – 5 per cent down payment required for the first $500,000, 10 per cent for the portion above $500,000
- $1 million or more purchase price – 20 per cent down payment required
Any mortgage with less than a 20 per cent down payment is considered a high-ratio mortgage. A high-ratio mortgage would require you to get mortgage default insurance, which is 2.8 per cent to 4 per cent of the mortgage amount.
Saving more money, ahead of house hunting, means your monthly payments will be lower. However, when real estate prices rise, your savings rate may not outpace the year-over-year increases.
Become familiar with government incentives
A few different government incentives can help first-time home buyers achieve their goals.
The Tax-Free First Home Savings Account (FHSA) is being introduced in 2023 and is arguably the biggest help. Those looking to buy a home can contribute $8,000 a year to their FHSA, up to a total of $40,000. Contributions provide a tax deduction and any interest or capital gains earned are tax-free.
There’s also the Home Buyers’ Plan (HBP) that allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) for the purchase of your first home. This applies to each buyer, so couples buying together could access up to $70,000. If you use the HBP, you need to repay what you withdrew over 15 years.
Another program to consider is the First Time Home Buyer Incentive (FTHBI). With this program, the government will provide you with up to 10 per cent of the purchase price. This would increase your down payment amount, which would lower your monthly payments. However, the government would take a share of your home’s equity. For example, if the FTHBI provides you with five per cent of the down payment, the government gets five per cent when you sell your home.
Get pre-approved for a mortgage
Getting pre-approved for a mortgage is arguably the best way to prepare for homeownership. During this process, lenders would formally run your numbers and verify your details. They’d look at your income, down payment, credit score, outstanding debt, and more.
Based on that information, they’d be able to provide you with an amount and the interest rate for a mortgage. This is vital as you’ll now know exactly how much you’ll be able to afford. Best of all, lenders can typically hold the rate offered for 90 to 120 days, so you can search for a home within your budget knowing that you have the financing secured.
It’s worth noting that a pre-approved mortgage is different from a pre-qualification. With a pre-qualification, lenders aren’t verifying any of your information. It’s simply a quick way for them to tell you how much you’ll roughly be approved for. Since pre-approvals are more formal, you’re getting a guarantee that the funds will be made available to you.
Improve your credit score
Your credit score is listed as a number between 300 and 900. The higher your number, the more creditworthy you are. This number matters a lot to lenders since it’s a quick way to determine how likely you are to repay loans.
If your credit score is in poor standing (below 660), you may have difficulty getting approved.
Lenders may see you as a risk. They may deny you loans, or only be willing to provide you loans with unfavourable terms, such as a high interest rate.
Before applying for a mortgage, try to improve your credit score by paying down debt and limiting your credit usage. Keep in mind that your credit score won’t improve overnight. A meaningful increase may take months or even years.
Save for a down payment
You need to have a down payment to qualify for a mortgage when buying a home. How much you need will depend on the purchase price of your home.
- $500,000 or less purchase price – 5 per cent down payment required
- $500,000 to $999,999 purchase price – 5 per cent down payment required for the first $500,000, 10 per cent for the portion above $500,000
- $1 million or more purchase price – 20 per cent down payment required
Any mortgage with less than a 20 per cent down payment is considered a high-ratio mortgage. A high-ratio mortgage would require you to get mortgage default insurance, which is 2.8 per cent to 4 per cent of the mortgage amount.
Saving more money, ahead of house hunting, means your monthly payments will be lower. However, when real estate prices rise, your savings rate may not outpace the year-over-year increases.
Become familiar with government incentives
A few different government incentives can help first-time home buyers achieve their goals.
The Tax-Free First Home Savings Account (FHSA) is being introduced in 2023 and is arguably the biggest help. Those looking to buy a home can contribute $8,000 a year to their FHSA, up to a total of $40,000. Contributions provide a tax deduction and any interest or capital gains earned are tax-free.
There’s also the Home Buyers’ Plan (HBP) that allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) for the purchase of your first home. This applies to each buyer, so couples buying together could access up to $70,000. If you use the HBP, you need to repay what you withdrew over 15 years.
Another program to consider is the First Time Home Buyer Incentive (FTHBI). With this program, the government will provide you with up to 10 per cent of the purchase price. This would increase your down payment amount, which would lower your monthly payments. However, the government would take a share of your home’s equity. For example, if the FTHBI provides you with five per cent of the down payment, the government gets five per cent when you sell your home.
Get pre-approved for a mortgage
Getting pre-approved for a mortgage is arguably the best way to prepare for homeownership. During this process, lenders would formally run your numbers and verify your details. They’d look at your income, down payment, credit score, outstanding debt, and more.
Based on that information, they’d be able to provide you with an amount and the interest rate for a mortgage. This is vital as you’ll now know exactly how much you’ll be able to afford. Best of all, lenders can typically hold the rate offered for 90 to 120 days, so you can search for a home within your budget knowing that you have the financing secured.
It’s worth noting that a pre-approved mortgage is different from a pre-qualification. With a pre-qualification, lenders aren’t verifying any of your information. It’s simply a quick way for them to tell you how much you’ll roughly be approved for. Since pre-approvals are more formal, you’re getting a guarantee that the funds will be made available to you.
Create a realistic budget
Getting pre-approved for a mortgage is great, but it doesn’t factor in every expense. Therefore, it’s a good idea to create a budget that factors in all of your expenses and goals. For example, you may want to include the cost of raising children, vacations, and retirement savings.
By factoring in these expenses in advance, you can budget accordingly. That might mean that your actual maximum affordability is below how much your lender is willing to provide you in the form of a mortgage.
Remember, mortgage lenders only calculate things on the basis of whether you can make your monthly mortgage payments. They’re not considering any other goals you have. The last thing you want is to be house poor.
.
Getting pre-approved for a mortgage is great, but it doesn’t factor in every expense. Therefore, it’s a good idea to create a budget that factors in all of your expenses and goals. For example, you may want to include the cost of raising children, vacations, and retirement savings.
By factoring in these expenses in advance, you can budget accordingly. That might mean that your actual maximum affordability is below how much your lender is willing to provide you in the form of a mortgage.
Remember, mortgage lenders only calculate things on the basis of whether you can make your monthly mortgage payments. They’re not considering any other goals you have. The last thing you want is to be house poor.
.
A renovated home could help sell your house in this tricky market
In a softening housing market, a renovated home could be the key to selling your property. “In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
Some home renovations are worth more than others. A renovated kitchen hs the potential to add 20 per cent to the value of your home.
“In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
.
In a softening housing market, a renovated home could be the key to selling your property. “In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
Some home renovations are worth more than others. A renovated kitchen hs the potential to add 20 per cent to the value of your home.
“In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
.
Recent data indicates a changing housing market. In March, the Canadian Real Estate Association (CREA) reported a two per cent drop in the average national sale price from $816,720 in February to $796,000 in March. Year-over-year, the average price was still up 11 per cent. Sales in March also fell, CREA said.
The Toronto Regional Real Estate Board said Wednesday that Toronto home prices declined three per cent from March to April. Further, sales slowed 41 per cent year-over-year from last April and were down 27 per cent from March as rising interest rates started to crimp the housing market.
The survey of 340 real estate professionals found that a kitchen renovation is the “most worthwhile” improvement and, on average, can increase a home’s value by 20 per cent.
Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home. “When a potential buyer views a home for the first time, the one thing that will stand out — for better or worse — is what the kitchen looked and felt like.”
Bathrooms, another high-traffic part of every home, placed second on the list of most-valuable home improvements with survey respondents estimating that a new bathroom can add to the value by an average of 16 per cent.
Finishing a basement or adding a basement apartment placed third and fourth in the survey, respectively; both with the potential to increase home values by 15 per cent, according to respondents.
It was the first time in the survey’s history that basement apartments have ranked so high. “It was one of the biggest movers in terms of returns,” he said. That might be because renting a basement unit can help take the edge off of mortgage costs. The units also “appeal to newcomers looking for multigenerational homes”. “Having an additional fully livable unit allows for more privacy for those families.”
If you don’t have or don’t want to spend thousands on a new kitchen or bathroom, adding a fresh coat of paint to the walls is a good alternative and could increase the value of your home by 12 per cent, the survey said.
What about the outside of your house?
Window replacements ranked as a worthwhile renovation with the potential to increase a home’s value by 13 per cent followed by outdoor landscaping with an estimated return on investment of, on average, 10 per cent, the survey said.
Pools, the report noted, had the smallest potential return on investment.
.
The Toronto Regional Real Estate Board said Wednesday that Toronto home prices declined three per cent from March to April. Further, sales slowed 41 per cent year-over-year from last April and were down 27 per cent from March as rising interest rates started to crimp the housing market.
The survey of 340 real estate professionals found that a kitchen renovation is the “most worthwhile” improvement and, on average, can increase a home’s value by 20 per cent.
Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home. “When a potential buyer views a home for the first time, the one thing that will stand out — for better or worse — is what the kitchen looked and felt like.”
Bathrooms, another high-traffic part of every home, placed second on the list of most-valuable home improvements with survey respondents estimating that a new bathroom can add to the value by an average of 16 per cent.
Finishing a basement or adding a basement apartment placed third and fourth in the survey, respectively; both with the potential to increase home values by 15 per cent, according to respondents.
It was the first time in the survey’s history that basement apartments have ranked so high. “It was one of the biggest movers in terms of returns,” he said. That might be because renting a basement unit can help take the edge off of mortgage costs. The units also “appeal to newcomers looking for multigenerational homes”. “Having an additional fully livable unit allows for more privacy for those families.”
If you don’t have or don’t want to spend thousands on a new kitchen or bathroom, adding a fresh coat of paint to the walls is a good alternative and could increase the value of your home by 12 per cent, the survey said.
What about the outside of your house?
Window replacements ranked as a worthwhile renovation with the potential to increase a home’s value by 13 per cent followed by outdoor landscaping with an estimated return on investment of, on average, 10 per cent, the survey said.
Pools, the report noted, had the smallest potential return on investment.
.