Zingers #10 - Pot
Okay, none of that either but I want you to toss out the pot pourri. The perfume is always awful. Nothing says “sad and desperate” like a big bowl of dead leaves, acorns, pine cones and bark.
Say “Bye Bye” to the Pot
Say Bye-Bye to 40 Year Mortgage Guarantees
There has been significant press around the Federal Minister of Finance’s decision to no longer provide government guarantees to 40 year mortgages. In addition, the guarantee is not available for 100% financing of a home. The buyer will be required to provide a minimum of 5%. This could be borrowed, but it will not become part of the government guarantee. These changes will become effective October 15, 2008.
What is Mortgage Insurance? A government guarantee is actually government backed mortgage insurance. Mortgage insurance (which is sometimes called mortgage default insurance) is a credit risk management tool that protects mortgage lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender will submit a claim to the mortgage insurer to recover its losses. (from the Department of Finance website)
What is the Impact of a 35 versus 40 year amortization period on a $200,000 Mortgage? If you cannot get a 40 year mortgage, then 35 year amortization periods continue to be available. The example Finance uses is: Reducing amortization from 40 years to 35 years on a mortgage loan of $200,000 with a 6 per cent interest rate results in a $41 increase in a borrower’s monthly payment, but the borrower will save $49,000 in interest payments.
Are there other changes? Four other changes will be taking place.
1. Credit Scores: “Canadian lenders have not originated many government-backed mortgages for borrowers with low credit scores. To ensure this practice continues, the new framework will establish a credit score floor of 620. There will also be a limited “basket” to provide for exceptions to this rule, recognizing that there are some borrowers with credit scores below 620 that otherwise represent low credit risks.”
2. Loan Documentation: The guarantee will now require a minimum loan documentation “standards to ensure that there is evidence of reasonableness of property value and of the borrower’s sources and level of income.”
3. Interest Only Mortgages will not be covered.
4. The total debt service ratio (portion of gross income that is spent on debt service and housing-related fixed or essential payments) will be set at a maximum of 45%.
I have included this information to give you a briefing on upcoming changes. If you need additional information, it is available on the Government of Canada Department of Finance site, with mortgage brokers, and at your financial institutions.
Before shopping for a new home, shop for your financing. Know what is available to you.
Photo credit: 3D Realty Handshake @ http://www.flickr.com/photos/lumaxart/2136953043/
Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca
Mum is the Word When House Hunting in Ottawa
In this age of technology, with nanny cams and voice recorders, it is best to say only positive things when looking at a house with your REALTOR®.
I know you are going to be surprised, pleasantly or otherwise, with things in a home. In fact, what will give you most pause is how people decorate and the things they own and display. It is always best to keep your reaction to yourself until you leave the house. In some cases, it is because the owners are still there. Why do they stay? In other cases, it is because there is always a 
possibility that you are being recorded. Shocking? Yes. I think owners are nervous about having strangers in their home and reduce their anxiety by recording the visit. Whatever the reason, it is always best to keep quiet and touch nothing.
Now you have found the house you want to purchase. Our buying strategy is best developed outside of the house. The kitchen table looks comfortable and you want to sit and discuss next steps. Don’t! Go outside, go to the car, go to my office but do not have the discussion in the house you want to buy. If there are recording devises, the owners will have an indication of how much you are prepared to pay and other terms that you may negotiate. Why give away information?
Finally, if you are being recorded and you say negative things about the house, owners will take it personally and may decide not to sell you their home, no matter what your offer is. Why be insulting and negative? If the owner loves the home, then he or she will want you to love it as well.
Silence is golden.
Photo credit: Silence! Foolish mortals! @ http://www.flickr.com/photos/randomecho/298010188/
Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca
Zingers #9 - This little light of mine…..
Yes, those low watt bulbs are fantastic for the environment BUT… if they take 2 minutes to warm up, buyers will have walked out of the room and not seen how wonderful your home is. For the days or weeks that your house is on the market, think increased wattage.
Shine a little light on your sale.
New Identification Requirements for Home Buyers and Sellers in Canada
On June 23, 2008, new federal money laundering and anti-terrorists financing regulations came into effect. These require real estate agents and brokers (amongst others) to collect and keep personal identification from buyers and sellers.
REALTOR® have been required to report any suspicious or large cash financial transactions of $10,000 or greater since 2001. This year the regulations, under the Proceeds of Crime (Money Laundering) and Terrorist 
Financing Act have been changed to increase the reporting. Real estate agents and brokers are now required to document personal information and proof of identity of their clients in each and every transaction. This includes corporations and purchasers in another city, province or country. If the buyer or seller is not represented by a REALTOR®, the agent for the buyer or seller is required to obtain the personal information and identification of the other party.
What will the real estate agent need for information? Using a government issued document, such as passport, drivers license or residency card, the agent will record date of birth and occupation. The law requires the agent to keep the information for a period of five years.
There is a lot of paperwork involved in buying and selling a home. The forms needed for this information will be part of the package you complete.
For additional information on these and other requirements, please go to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) or call 1-866-346-8722.
Photo credit: Dreaming of Diamonds @ http://www.flickr.com/photos/swamibu/1182138940/
Things Ottawa Buyers May Notice #15 - Smell of Paint and Verathane
THE SMELL OF PAINT AND VERATHANE
As I go out with Buyers looking at houses and host Open Houses on Sundays, there are things buyers seem to repeatedly notice. This series looks at the good and the not-so-good things that buyers have noticed.
A buyer and I were visiting a number of homes one afternoon in the spring. One 
home was empty and we were able to get in with very little advanced notice. Well!!! After the owner moved out, he or she painted the walls and refinished the floors. This could have been a good thing but…. We were unable to stay in the home for more than 5 minutes because the fumes were overpowering. When I mentioned this to the listing agent, he indicated that he thought all of the fumes would have dissipated by the time of the visit. Ha. I have no idea how long ago the paint and varathane were applied but it was not a home ready to see and buy.
If you are going to improve your home before selling, please ensure that all the off gases / fumes / smells are gone before letting people in to view.
Don’t try to sell a toxic smell site.
Photo credit: IMG_0189 @ http://www.flickr.com/photos/11988206@N05/2607022211/
Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca
Zingers #8 - Black and White and Red all Over
No, not the newspaper (What is black and white and read all over?) but colour. Every room in your home should have a touch of black for impact. If you are buying new bathroom fixtures, you will not offend with white. Find a way to add a bit of red to the family room or livingroom. Less is more.
You won’t want the buyer seeing red.
Old Ottawa South - House Sale Trend 2003 to YTD 2008
What has happened to the price of homes in the Glebe and Old Ottawa South. A reader of this site asked me to track the average sold prices for a three bedroom home in these two neighbourhoods. It will make you wish you had invested in real estate in these neighbourhoods.
Please keep in mind that every year different homes are being sold so it is only a trend not a predictor of a specific house. The average price was calculated using data on the Ottawa Real Estate Board Multiple Listing Service® site available to real estate representatives. * YTD (Year to date) is as of July 12, 2008
OLD OTTAWA SOUTH - Three Bedroom Homes
| Year | Sold | Average Price($,000) | %D |
| 2003 | 51 | $319.1 | |
| 2004 | 44 | $346.2 | 8.5 |
| 2005 | 44 | $354.0 | 2.3 |
| 2006 | 58 | $388.1 | 9.6 |
| 2007 | 49 | $446.1 | 14.9 |
| YTD 2008 | 38 | $459.1 | 2.9 |
The Glebe - House Sale Trend 2003 - YTD 2008
What has happened to the price of homes in the Glebe and Old Ottawa South. A reader of this site asked me to track the average sold prices for a three bedroom home in these two neighbourhoods. It will make you wish you had invested in real estate in these neighbourhoods.
Please keep in mind that every year different homes are being sold so it is only a trend not a predictor of a specific house. The average price was calculated using data on the Ottawa Real Estate Board Multiple Listing Service® site available to real estate representatives. * YTD is as of July 12, 2008
THE GLEBE - Three Bedroom Home Sales
| Year | Sold | Average Price($,000) | %D |
| 2003 | 37 | $349.3 | |
| 2004 | 52 | $382.0 | 9.4 |
| 2005 | 43 | $413.2 | 8.2 |
| 2006 | 37 | $415.1 | 0.5 |
| 2007 | 53 | $458.3 | 10.4 |
| YTD 2008* | 20 | $525.3 | 14.6 |
Am I obsessed with Ottawa doorways?
I talked about painting your front door and then I gave you what are my top three things to do, after painting the door. Now, I find that I have so much more to say about the stuff that we seem to love putting in and around our doorway.
New doorknocker. Do you need a doorknocker? I know that you can get some fun knockers (see the Doorbell Factory) but… If you have one already, okay. If not, think about how much clutter do you want on and around your front door. What happens if it is Christmas time and you have hung a wreath on the front door and it covers half of the knocker and looks like one more bit of clutter that you have added? Repeat: simple, simple, simple.
Door Knob -Polish the doorknob. If it is old and the metal is wearing thin, you might want to buy a new door knob. You will want to keep the style of the other “door jewels” and the same metal. It would really look odd to have a mail box, kick-plate, door knocker, doorbell, welcome sign, etc all in different metals in different styles, all making your eyes bleed from too much to see.
New Kick-plate and Welcome Mat - If you must - then remember to polish or replace the kick-plate and ensure that the Welcome Mat is clean and no debris has accumulated under and around the mat. In this picture, there are three kickplates attached to the door. This door, in addition to shedding a few pounds of plate, would be greatly enhanced with a lick of paint. BTW - have we all stopped sweeping the front doorway?
Finally, two more things that are useless or a waste of your money.
A Welcome Sign - Yikes, I will say no more.
Anything with your name on it - on the mailbox, on the mat, on the door or anywhere where the new owner will have to have it removed. The house is no longer about you but about the buyer seeing him/herself living at the house.
Don’t be a door fool. Clean and Simple is the Rule.
Photo credit: Gtown at Flickr http://www.flickr.com/photos/katmere/69168456/
Valerie Zinger ~ Ottawa, Canada ~ Ph. 613-723-5300 ~ Email vzinger@royallepage.ca
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Welcome
My name is Valerie Zinger. I am a Realtor in Ottawa. I look forward to listing your property or helping you find your home.
Phone: 613-723-5300 Click here to contact Valerie by Email at:
vzinger@royallepage.ca -
