Where are mortgage rates headed?

My concern for anyone looking to buy in the coming months is that they get a pre-approved rate guarantee sooner than later. Given last week’s events (rising bond prices, dollar, oil and gold) triggered some lenders to raise their fixed term rates.I am wondering whether we may be at the ‘bottom’ of the Fixed rate decline. No worries on Prime increasing anytime soon and Variable rates are still low and should likely remain so for awhile, however the catch-22 is that for anyone more sensitive to larger increases in Prime, by the time that Prime increases to the point they feel they want to lock in, Fixed rates may well have been on the increase for some time and they may have lost the opportunity to benefit from today’s historically low Fixed rates.

There is so much conflicting economic data these days, and there remains a great deal of uncertainty as to which direction the economy is ‘really’ going to be headed in the coming months/years, with a question as to whether the ‘rally’ some feel we are experiencing may just be a temporary surge only for another deeper plunge/downturn to be on the horizon.

Despite the fact that everyone would like to see things turning around, I think this roller coaster ride may have a few more ups and downs, twists and turns to go yet. My opinion on all of these mixed economic indicators and economic uncertainty is that folks simply can’t go wrong by playing it safe and locking in at 5-year Fixed still available below 4% – especially the first-time buyers!!

Words of Wisdom shared by; Liz Doyle, Owner/Mortgage Broker of Centum Mortgage Options Inc.

Making sure you are READY TO BUY

If you’re thinking of buying a home, you’ve come to the right place. This web site can turn you into a house-hunting master. But before we jump right in, you have to make sure three things are ready. You, your bank account, and the real estate market.

Are you ready? Be sure

Few joys can match the pride of owning the roof over your head, but you will have to make some sacrifices. There’s the obvious financial responsibility, but your home will also require constant care. That’s what real pride of ownership is all about.

Is your bank account ready? Check it twice

Your first home will be the biggest financial obligation you’ve ever faced. You should already be an experienced saver, and good at managing debt like student loans or credit cards. Ideally, you’ve also saved up some money for a down payment. Our next step will give you a crystal clear picture about How much you can afford.

Is now a good time to buy? Here’s the hottest market tip you’ll ever get

Markets go up, markets go down and even the smartest experts can’t accurately predict when a market will peak or bottom out. If you’re buying a home as a long-term investment (and for long-term enjoyment), you should be protected from short-term changes in the market. Over time, real estate has almost always increased in value.

All you have to do is pick a home that meets the needs of you and your family. Then you’ll enjoy living in your investment as it grows in value. A home is one of the best financial decisions you can make. If you’re trying to compare what’s the better investment, a home or equities and the stock market – remember, it’s tough to live in a stock portfolio!

Attracting that buyer- The DONTS

Currently in this market there is a lot of inventory out there! And buyers are becoming more and more picky when it comes to choosing their dream home. When putting your home on the market you have to put your best out there, if you want to sell fast and at a reasonable price.

Here are some things to avoid if you want to prevent that buyer from walking out that front door!

1. Make sure your home is as clean as possible. Pay close attention to kitchen and bathrooms, declutter counter tops, polish the kitchen sink, polish the stainless steel appliances. Clean all the grout, and make your floors gleam! Before every showing try to do a quick clean up to keep it top notch.

2.Nothings worse then walking into the home and the first thing you smell is cigarette smoke! If  you smoke try your best to take it outside while your home is up for sale. Any type of odors like cooking smells or pets can really turn off a buyer. Try using fabric freshener and rooms scents like diffusers to freshen up the home!

3.If you like bold colours, you may want to pick up a roller and paint your home some neutral colours. Buyers sometimes get steered the wrong way when they see loud colours on the walls, it can really distort the potential they see in a home.

4.Swimming pools are fun in the summer and a great activity for the kids but believe it or not a pool can be a major turn off for buyers. The up keep and costs that come along with it can be very expensive. In some cases having a pool can lower the value to your home! if you are planning to sell it may be a wise thing to consider filling the pool and putting some nice landscaping or patio. Outdoor living spaces are becoming more and more popular these days where they even have outdoor fire places.

5. First impression always counts, make sure the exterior of your home is top notch! make sure the grass is always manicured. Plant some pretty colorful flowers or place a nice potted plant at the front door for a welcoming entrance. Rusty mail boxes wont cut it either, replace it if its starting to look on the old side. If the numbers on your house are tarnished, change them up.  When buyers walk to the front door this may determine whether they walk in or just turn away!

The Pros vs: Cons to buying "NEW"

Lets face it there are advantages and disadvantages when it come to purchasing through a developer whether its a condo or a detached home. 

A number of people out there are buying from builder off plan, rather than pr-existing homes or condos that are ready to move in. Buying off plan is basically purchasing a property based on the drawings and proposals submitted by the developer, usually before  any work on the property has even started.  

Sales from off plan in recent years have flown off the shelves, selling within 72 hours of their release. In many cases, off-plan buyers have seen their properties appreciate significantly before they have been given their keys!

The Pros:

- Buyers get into the development before it even launches which mean lower prices per square foot. The overall price for the property is much lower then it would be then buying it as re-sale.

-Flexible payment structure. Most developers require a minimum of 15% until closing, some even can work a better payment plan. This is also good where you can budget yourself, you have some time to put together each deposit because its not all required at the same time.

-You get to take advantage of developer incentives, could be cash back on closing, 3 years free condo fees, upgraded finishes and much more.

- You are able to choose from a variety of floor plans. In some cases the developer will allow you to add some of your personal touch to the floor plan with some minor changes to the layout.

The Cons:

- Delays in construction- closing can be pushed several months. This could be due to good old mother nature.

-Can be risky, your buying something you don’t see physically.It can be tough at time to visualize. You have to base your purchase by word of mouth and reputation of the developer.

Some other things to keep in mind:

-Read all the documents before signing, especially the sales and purchase agreement, which contains important information about proof of ownership, resale restrictions, penalty clauses, and building delay penalties. Buyers should be clear about the details of all of these provisions.

-Research the developer, find out what other developments they have completed and what the overall satisfaction is.

Time to Get Our Economy Back On It’s Feet

Nothing is more evident than the upsetting news that the economy is going down the drain. Everyone knows at this time and from past performances the only way back is with buying power. Trying to save your hard earned dollars like Mom & Dad did is not the wisest of choices to help stimulate this economy.
The only way back is to buy, buy that new car you’ve been wanting, start looking for that bigger home. You can only do so much in a 2 bedroom condo with 4 kids a dog 1 turtle and 2 goldfish.
Time to move my friend and prices are enticing.
Call up that long lost cousin of yours who’s a Realtor with that Company no one has ever heard of before.
Put that condo on the market and go buy that two storey dream home you’ve been dying to get into for years.
The economy will thank you and so will your job as well as your kids future.