Buying a home is almost always a very scary thought, especially the first time. Most of us are not in the habit of signing documents where we commit to paying a large loan for 25 years.

The best way to overcome most of your fears is by knowing what to expect.

In these 2 videos we take a look at the 6 most common home buying fears, and how to make your home buying experience at least bearable.

Number One fear – I am worried about the state of the economy.

In spite of the generalized gloom and doom we see these days, Canadians keep on buying homes. Many home buyers believe that in spite of ups and downs in the economy, their home will always be one of the safest investments available

Number Two fear – What if my mortgage application is turned down?

Banks are in the business of lending money, so if you are turned down, there are others who may want to give you a loan.

What if you are turned down by all of them? This is usually a clear sign that it may a bit early for you to consider taking that much debt.

Number Three fear – I don’t have enough money for a down payment.

You can buy a home with as little as 5 percent down payment. Your mortgage broker or bank representative will help you through the entire process after they have had a chance of looking at your personal financial picture.

On the next video we will look at the other 3 biggest fears:

• I don’t know what to buy! I am totally confused
• I don’t know anything about plumbing wiring, or anything else about a house.
• What if after I buy my home I realize I can’t afford the payments?

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How to Conquer the 6 Most Daunting Home Buying Fears, Part 1 – Buying a Toronto Home is a post from: Toronto Real Estate-Toronto Homes For Sale

The RCMP has launched a new website listing addresses of homes and places where they have found Marijuana grow-ops.

This website will allow home buyers to view a list of home addresses, buildings and business where the police have served search warrants.

RCMP Assistant Commissioner Mike Cabana said “”Marijuana grow operations harm communities. Wherever they exist, there’s the potential for an increase in criminal activity and a greater chance of fire, explosions and violence,”

British Columbia is at the top of this list with the most grow-ops discovered.

Toronto Police have a list of more than 200 homes which were used as marijuana grow-ops.

Pauline Aunger, of the Canadian Real Estate Association’s board of directors, said grow-ops are a major concern for home buyers and realtors across the country.

A home where the Police have found a marijuana operation may lose as much as fifty percent of its value.

Toronto lawyer an Star columnist Bob Aaron says, “Former grow houses nearly impossible to sell”, click here

Furthermore, since this is now public information, the home has a stigma similar to that of properties that were insulated with urea formaldehyde.

Up until now, there has been no source where home buyers could find this information.

The website’s address is www.rcmp-grc.gc.ca/drugsdrogues/mgi-ircm/indexeng.htm.

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Was Your New Home Ever a Marijuana Grow-Op? Toronto Real Estate is a post from: Toronto Real Estate-Toronto Homes For Sale

Step inside this cherished and lovingly renovated seven room, three bedroom  Century home, circa 1891! Enjoy its high ceilings and cozy atmosphere – much loved by the current owners for ease in entertaining and quiet enjoyment.

Nestled on a desirable downtown street, it affords marvelous access to all the amenities this neighbourhood offers. Just a quick stroll to Allan Gardens, Ryerson, Yonge Street, College Park, The Eaton Centre, neighbourhood restaurants, cafés and the subway.

The home was built 1891 and it was extensively renovated in 2004 including plumbing, electrical, heating and central air systems. This home has been Cat 5-wired for intercom, stereo & HDTV.

Features of this home

Here you will find Brazilian cherry hardwood floors. The home comes with gas stove, gas barbeque and stainless steel appliances. A truly chic urban home in downtown Toronto with perennial garden and a charming patio.

Some of extras include stainless steel fridge, gas stove, dishwasher, washer and dryer, outdoor gas barbeque, all blinds, electric light fixtures, stain glass transoms, Brazilian cherry floors, granite kitchen counters, English tumble stone backsplash and a low maintenance garden.

No car necessary

You’ll be able to walk to Eaton Centre, College Park, the new Maple Leaf Gardens, and Allan Gardens, the financial district as well as great dining and the Toronto subway system.

The roof was also redone in 2004. There is a fireplace and is not being used by the current owner. Seller requests certified deposit funds. We are awaiting a property survey; frontage may be larger than stated on the MLS listing. The house has permit parking available from the city of Toronto.

This lovely renovated McGill Street home has 7 rooms, 3 bedrooms, 3 washrooms and is priced at $699,000. (This property has been sold)

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Chic and Affordable Urban Home at 126 McGill in Downtown Toronto – Toronto Homes for Sale is a post from: Toronto Real Estate-Toronto Homes For Sale

You’ve been house hunting for a while and now you have found the perfect home! You still have not chosen an agent so you decide to put an offer through the listing agent.

After all, the listing agent is acting for the seller and knows more about that house that any other agent.

You can negotiate a better deal

Plus, you may be able to negotiate a better deal. Should you end up buying that home, the listing agent stands to make both the listing and the selling commission. In real estate jargon this is known as ‘double ending’’ the sale.

The listing agent stands to win at your expense

So what’s wrong with that, you ask? A lot! You have now placed the listing agent in a very difficult position. Most agents make only a few sales per month. Now the listing agent has a real chance at making two commissions at once.

However, the most important issue is …how can that agent change loyalties in mid-stream? She is the agent for the seller.

How objective and impartial is the agent likely to be?

If you give her an offer, she must now give you the option to represent you as a client, and therefore becoming your agent also. This is known as acting as a double agent. In many agents eyes, the focus of the sale has now shifted from serving the seller, to making two commissions.

The other alternative and not a good one, is that the agent remains the agent for the seller and you are treated as a customer, and not as a client. In other words, she does not owe you ‘fiduciary duties’ which means she is not acting on your behalf.

Best alternative is to have your own agent

In my opinion, it is not possible to honestly serve two parties who have opposing interests. Best approach for you to take is that you choose another agent to represent you. She will be working exclusively on your behalf and will have your interest at heart.

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Ever Wonder Why Buying Your Home Through the Listing Agent is a Bad Strategy? Buying a Toronto Home is a post from: Toronto Real Estate-Toronto Homes For Sale

Here is a quick look at proposed mortgage changes by some Canadian banks and how they can have a serious effect on how you finance your home in the future.

Some of the major Canadian banks want to move all mortgages from conventional to collateral mortgages.

What this means is that when you buy a house, the bank will register a mortgage for up to 125 % of the value of your home. Of course, the banks will only advance you the seventy or eighty percent you applied for. The balance between what you receive and the 125% collateral loan allows you to borrow additional dollars without the inconvenience of having to register a new mortgage.

It all sounds great until you take a closer look. In effect, you are now tied to ‘that’ bank until your mortgage is paid in full. Should you decide to change banks, there will be large penalty that will make your move prohibitively expensive.

Also, should you fall behind on another loan you have with that same bank, the bank can now go after your home if it’s been registered as a collateral mortgage.

Below, there are two articles for you to learn more about the pluses and minus of having a collateral mortgage on your home.

To read “beware a collateral mortgage”  click here To read ‘”collateral versus conventional mortgages” click here

If you want to know more, simply send us your question in the form below.

Buying a Home in Toronto – Beware the Pitfalls of Collateral Mortgages (Video) is a post from: Toronto Real Estate-Toronto Homes For Sale

Some homebuyers are feeling that if they do not buy now, they may never be able to get into the real estate market. Home prices in places like Toronto keep rising and low interest rates serve only to add fuel to the fire of a very hot market.

The fear that rates will go up anytime creates even more discomfort for those still looking to buy.

A recent Toronto-Dominion Bank survey on first-time homebuyers seems to suggest homebuyers are pressing the panic button, (clik here).

More singles are jumping into homeownership and not waiting until they are married.

The report found also found that buyers are by-passing the mortgage pre-approval process. Last year 84% of buyers decided to get bank pre-approvals as compared to only 72% this year. More homebuyers have also opted not to have a home inspection. The number of home inspections dropped from 85% in 2010 to 67% this year.

What many buyers fail to grasp is the impact rising mortgage rates will have on home prices. Higher rates will inevitably bring home prices down. The question is when and by how much?

Will buyers be better off once sellers begin to accept the reality of the new market? It all depends on the impact those higher rates will have on home prices. Things such as income levels, the overall state of the Canadian economy and job opportunities will play a big role in bringing affordability back to buyers.

We encourage you to give us your opinion on the form below.

Homebuyers’ Desperation Beginning to Show – Toronto Home Prices is a post from: Toronto Real Estate-Toronto Homes For Sale

Banks Fight Over Your Mortgage as Toronto Housing Market Slows Down is a post from: Toronto Real Estate-Toronto Homes For Sale

Congratulations! You just bought that beautiful home you have been looking for, for quite a while. 

So now you bring your completed offer (Agreement of Purchase and sale) to your lawyer for review, hoping that the lawyer may spot any important issues you may have missed.

Let’s say that you were not aware that the home you bought is located in a termite area of the city. To make matters worse, your agent (a friend of the family) is unfamiliar with this neighbourhood, therefore she has no knowledge about those pesky little bugs either.

The home inspector you hired is also unaware of termites in this neighbourhood. To make matters worse, since you had no previous knowledge, you fail to ask the inspector to check for those nasty critters.

Nasty surprise

A year later you decide to do some renovations and after removing a wall you find that there are lots of other creatures living in your house, mostly in the wooden frame and joists of your home.

Do you have any recourse against your friend the real estate agent? How about the home inspector? Shouldn’t your lawyer also have caught this issue when she reviewed your offer?

The answer to the first two questions is perhaps, yes. However, you’ll probably excuse your realtor friend since she only sells real estate part time and is not familiar with the neighbourhood you chose. Same goes for the home inspector. He should have known, but didn’t, and you didn’t ask him.

And here comes the interesting part, what about the lawyer? Your lawyer’s function is to look after the legal aspects of your contract. But not all terms and conditions fall under the ‘legal’ classification. There are also the ‘business’ aspects of your offer. Things such as the home inspection, the amount of your deposit, the history of the neighbourhood and the closing date, to name just a few.

My lawyer will look after everything!

The lawyer’s job is to review and makes changes to any matters that may render your contract illegal or unenforceable. Her job does not extend to giving you general real estate advice (clik here) such as an extra clause you should have inserted into your contract; things such as termites, the neighbours from hell, or if there was a death in the house (click here). But this is the subject of a future article.

Your lawyer is not supposed to do your agent’s job

So remember, your lawyer is not acting as your real estate agent! That is your agent’s responsibility.

It goes without saying that aside from all the financial considerations you need to take into account, the next most important one should be the selection of the best agent for the job. That includes a professional with several years of experience who, more than any other agent, knows the homes and neighbourhood you like.

Moral of the story: When your lawyer is presented with an unconditional but obviously defective agreement of purchase and sale, she is under no obligation, and in fact, cannot try to negotiate or improve the terms of the contract you have agreed to.

Since there is no cost to you as a buyer when you hire an agent, make sure you hire a knowledgeable expert who knows the people and homes in your chosen neighbourhood.

Your Lawyer is Not Obligated to Negotiate Better Purchase Agreement for Your Home – Toronto Homes is a post from: Toronto Real Estate-Toronto Homes For Sale

By now we all know that the main culprit of the biggest housing collapse in North America was free government subsidies offered by the U.S government, as well as loose lending policies allowing practically any ‘breathing human’ to get a mortgage.

This is no exaggeration. Millions of U.S. home buyers with no job and poor credit were given mortgages that they could not possibly repay. Those buyers became known as NINJAS (No Income, No Job or Assets)

Can you buy a house in Toronto with no down payment?
In Canada we have stricter banking rules that have helped us avoid making the same mistakes as our southern neighbours. First of all, let me make clear that we are not talking about a government grant. This is a regular mortgage to be paid over a number of years.

Here are some tips and steps you need to follow before you apply for a low down payment insured mortgage.

1.      You must have a good credit rating. (Get a free copy of your credit score at Equifax.ca)

2.      Reduce or eliminate all credit card debt.

3.      Cancel credit cards you are not using.

4.      Do not change jobs just before applying for a mortgage.

5.      Show stable history of employment

6.      Do not buy car or make any large purchases before applying for a mortgage

7.      Make sure you correct any wrong information about your credit.

Can you get an insured mortgage?
Through a private mortgage insurer or through the Canadian Mortgage Housing Corporation (CMHC) you can mortgage up to 95 per cent of the purchase price of your home. You must have at least 5 percent down payment and 1.5 per cent to cover land transfer tax, legal fees, closing fees and moving expenses.

What’s the catch?
You will have to demonstrate that your income is sufficient to cover all your monthly household expenses and your mortgage costs. If you can afford the mortgage payments and all of your household expenses, then you should be able to buy a home, whether you have a full down payment or not.

How to Buy a Toronto Home with No Money Down (Almost) is a post from: Toronto Real Estate-Toronto Homes For Sale

If you are planning to insure your home, why wouldn’t you want to ensure you receive a quality home buying experience?

How do you know you are buying the right house? You want to know everything about that condo! Did you know there is a document that protects the homebuyer? Every REALTOR who represents a home buyer should by law present you a buyer’s representation agreement, a B.R.A.

By signing one early it protects you and improves your home buying process. It ensures your REALTOR has your best interest at heart so you know you are making the right decision. After all its one of the biggest you’ll make. Make signing a B.R.A. your first move.

Why Should I Sign a Buyer Representation Agreement? Toronto Homes is a post from: Toronto Real Estate-Toronto Homes For Sale