Once again the Bank of Canada has increased interest rates, this time by 75 basis points. What does this increase mean for you? We sat down again with Carina Demedeiros Mortgage Specialist to ask some of your biggest questions.
Early renewal?
Interest rates might continue to rise, should you be looking at early renewals or locking in your rates when shopping for a house?
Variable, or fixed mortages?
Many people are wondering if it’s still a good idea to go with a variable mortgage, or if fixed is the best route.
What is the stress test?
Here’s a throw back to our video going over prime (0:20 sec) and the stress test (1:25).
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In the last few years, ‘fixer upper’ properties have become extremely popular. Many first time home buyers and investment buyers are forgoing turn key homes for houses with a bit lower price tag, but need some work done.
Here are some tips to remember when looking at a home that needs work:
Cost
Make sure you mentally include the price of upgrades when submitting your bid. Painting and floors is one thing, but once you get into actual structural changes you need to have an idea of how much it will cost before committing.
Timing
Living in a house under construction can be…hard. Try completing major renovations before you move in so not to disrupt your life. If this isn’t possible, consider the plan for living in a house while also updating it. Are there specific rooms you can live in while the rest of the house is being worked on? Can you live on one floor while the other is being demoed? Having a plan for the construction is key.
Talk to an engineer
If you are planning on making structural changes ensure they have been approved by an engineer and the city before submitting your bid. There are bylaws you may have to adhere to as well as structural limitations. You don’t want to plan your dream home just to find out its not possible!
Photos
Before and after photos are the best way to track your process…and remember what it once looked like!
Most importantly, EXPECT THE UNEXPECTED. Delays, over budget costs, and unexpected road blocks are very common with fixer upper properties. Take your time. Do it at the pace that makes the most sense for you and remember to give yourself lots of buffer room with both time and budget. It will be a lot of work, but totally worth it in the end!
Masonville and Whitehills are two of the more established neighbourhoods in London. They are great for families as well as investment buyers being so close to Western University.
Masonville Neighbourhood
Masonville is located within a 10 minute drive of the university and about a 15 minute drive from Fanshawe College. It’s very family friendly and has every amenity you would need. Though many amenities are within walking distance, this is an area where you’d likley need some kind of transportation. Luckily there is a major transit hub at Masonville Mall, allowing you to easily access almost anywhere in the city.
Price Range is approximately $600K to $1.6 mill
Neighbourhood established in the 80s/ 90s and continues to expand North towards Arva
Whitehills is one of the older neighbourhoods in London established in the 1970s. It’s perfect for first time home buyers and is filled with parks and splashpads for families. The proximity to the university is ideal for income buyers and nearly everything you need is within a 10-15 minute walk. For those without a vehicle, transit is easily accessable. There was an expansion of the neighbourhood in 2000s that connects with Hyde Park neighbourhood.
Price Range $600k- $1 million
Homes built in the 70s- 2000s
Great walking score
Wonderful schools
Lots of amenities
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Many of my clients have voiced their concerns about rising interest rates. With prime rates constantly in the news, it’s easy to understand why many people have questions about these increases and how it will effect their buying power. To kick off the ‘SMart-ens London Living Series‘, I took my client to meet with Carina Demedeiros Mortgage Specialist and ask some important questions on everyone’s mind.
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If you’re a first time home buyer, downsizing after retirement or just looking for more space with a growing family; moving can be a difficult journey. There are a lot of things to consider when you’re ready to move. Finding the right neighbourhood can be one of the hardest elements, especially if you’re not from the city you’re moving to. That’s why we’ve started the ‘SMart-ens London Living’ series.
We’ll be exploring all the neighbourhoods of London Ontario and surrounding areas. We’ll discuss average costs, perks and downfalls of the neighbourhood, and what type of lifestyle is best suited for the location. From growing families to single, first time home buyers, we’ll find the right neighbourhood for you!
A lot of first time home buyers are looking at condo options. We’ve created a breakdown of condominium corporations you could come across during your search. To learn the difference between condos and freehold homes click here.
Standard Condominium Corporation
This is the most common type of condominium. These units can be in an apartment building, row-townhouses or stand-alone townhouses. • You own the interior, condo corporation owns any land and exterior • Owners have an interest in the property’s common elements and assets (ie. hallways, elevators) • Condo fees cover most exterior costs like snow removal, insurance, ground maintenance, parking, water and common area maintenance
Common Elements Condominium Corporation
This type of condominium has no units and only has common elements such as a road, a golf course, or a ski hill. Riverbend in London is an example of this. Owners enjoy the common elements and jointly fund the maintenance and repair through condo fees. • The part of land you own is considered a parcel of tied land (POTL) • It is permanently attached to your common interest in the community
Vacant Land Condominium Corporation
This option is very similar to a free hold home, but with some extra maintenance perks. Buyers often own the building and the personal property. Common areas the city would usually own (such as sidewalks and parking lots) are owned and managed by the condo corporation.
• Land maintenance such as snow removal or lawn care is covered by fees • Fees are very low in comparison to other options • The condo’s declaration may restrict development size, construction or design standards
Leasehold condominium corporations
Mobile home parks are a great example of leasehold properties where the land is not owned by the condominium corporation. The cost of the land isn’t included in the price of the condominium, but a portion of the fees do go to the landowner. The lease term must be between 40 and 99 years, so you will enjoy many of the advantages of owning a freehold condominium. You can sell, transfer, mortgage and take other actions with your unit without asking the landowner for permission.
• The sale price you can ask for your unit may be affected by the time remaining on the land lease • Once the ground lease expires, the property owner could loose the right to occupy the unit
All these options have fees attached, so make sure you confirm what’s included before signing the dotted line! If this seems overwhleming, give me a call. We can work through it together!
Price Range $
