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Monthly Archives: January 2011

Home Energy Retrofit Grants – Deadlines for Eligibility

30 Sunday Jan 2011

Posted by gtarealtyagent in current real estate affaiirs, FAMILYLAW & REAL ESTATE, Green Investment, H.S.T., Home Reno (adds The Value), Houses, Let's Talk Investing, Real Estate info & ideas

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Deadlines for Eligibility, Home Energy Retrofit Grants


Home Energy Retrofit Grants – Deadlines for Eligibility

The federal and provincial governments provide grants to homeowners who undertake renovations that improve the energy efficiency of their homes.  These programs are coming to a close as of March 31, 2011.  See deadlines for eligibility below.

Details

Before undertaking any renovations:

Homeowners must first have an energy audit of their home performed by a licensed service organization (list of auditors provided at government web site address provided below).  The evaluation report provides customized recommendations for renovations to improve the energy efficiency of the home.  Once the homeowner has completed the renovations, a second audit must be undertaken within 18 months of the first one to determine the change in the home’s energy efficiency.

Deadlines for eligibility:

Home energy retrofit grants are provided by both the federal and provincial governments.  Both programs are ending as of March 31, 2011.  To be eligible for federal grants, homeowners must have booked a pre-retrofit audit BEFORE March 31, 2010 and have the post-retrofit audit completed by March 31, 2011, or within 18 months of the date of the pre-retrofit evaluation (whichever comes first).   Homeowners who booked a pre-retrofit audit AFTER March 31, 2010 can only access grants from the provincial government, but must also complete their post-retrofit audit completed by March 31, 2011.

For more information visit:

http://www.mei.gov.on.ca/en/energy/conservation/ohesp2/

http://oee.nrcan.gc.ca/residential/personal/grants.cfm?attr=0

 

For renovation related loans are also available click

http://torontomortgagetrends.com/Refinancing.php

http://torontomortgagetrends.com/Tap-Into-Home-Equity.php

 

___________________________________________________________
Home Electrical Safety Test – DIY do it your self and score your test- evaluation>>>>FREE DOWNLOAD___________________________

What you should know about Knob & Tube

Knob and Tube Wiring in Residential Installations

What you should know about aluminum wiring

Aluminum Wiring in Residential Installations

Finding an Authorized Contractor

To find the Authorized contractor nearest you

If you are looking for a listing of Licensed Contractors in Ontario, please click here for the ECRAESA listing of Licensed Contractors.

The Authorized Contractor Program was developed by ESA to recognize those Licensed Electrical Contractors and HVAC Installers who consistently perform Ontario Electrical Safety Code compliant work.

The Biological, Chemical and Mold Testing Report, ESA Cover Sheet, ESA Requirements Checklist and Structural Report (if required) may be submitted by:
E-mail: hygiene.reports@electricalsafety.on.ca
Fax: 1-905-712-7845
Mail: ESA, 400 Sheldon Drive, Unit 1, Cambridge ON N1T 2H9

Grow House Report Cover Sheet ESA Requirements for Inspection of a Site for Reconnection After a Grow House or Meth Lab Operation

 

This blog communication is for public awareness and public responsibility, for client and customer benefit and best intrest in mind.

Source of Information : http://www.esasafe.com/GeneralPublic/index.php

 

Vijay Gandhi is an Re/max Real Estate sales Personnel &  independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.

 


Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today!We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. to availability

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*
&
Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients.

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Buying a Home: Electrical Current Safe. Safety 1st .

23 Sunday Jan 2011

Posted by gtarealtyagent in current real estate affaiirs, FAMILYLAW & REAL ESTATE, FSBO, Home Reno (adds The Value), Houses, Let's Talk Investing, Multiplex-Multi Residetial Investment, POWER OF SALE-FORECLOSURE PROPERTY, Real Estate info & ideas

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Electrical Current Safe, Electrical Safety Authority, Hiring a Contractor, Safety 1st .


Sunday, January 23, 2011

Buying a Home: Electrical Current Safe. Safety 1st .

Buying a Home: Electrical Current Safe. Safety 1st .

Buying a home is one of the largest investments that we can make, and you want to minimize any surprises.

It is recommended that a record search be conducted with the Electrical Safety Authority to ensure that no outstanding work orders exist on the property that you are considering purchasing. Your lawyer can request a record search to check if ESA has any recorded outstanding defects on the property, or open notifications.

If you are not sure the wiring meets Ontario Electrical Safety Code requirements, you can request that the owner arrange for a general inspection as part of the terms and conditions of purchase. The general inspection will identify if there are any electrical defects that need to be corrected. The existing owner will be responsible for correcting any defects – or can negotiate with the potential purchaser to assume responsibility.

In addition, it is recommended that you ask the previous owner for copies of “Certificates of Inspection” for any electrical installations/modifications that have been conducted since the original construction of the home.

Home Electrical Safety Test – DIY
do it your self and score your test- evaluation>>>>FREE DOWNLOAD

What you should know about Knob & Tube

Knob and Tube Wiring in Residential Installations

What you should know about aluminum wiring

Aluminum Wiring in Residential Installations

Finding an Authorized Contractor

To find the Authorized contractor nearest you

If you are looking for a listing of Licensed Contractors in Ontario, please click here for the ECRAESA listing of Licensed Contractors.
The Authorized Contractor Program was developed by ESA to recognize those Licensed Electrical Contractors and HVAC Installers who consistently perform Ontario Electrical Safety Code compliant work.
The Biological, Chemical and Mold Testing Report, ESA Cover Sheet, ESA Requirements Checklist and Structural Report (if required) may be submitted by:
E-mail: hygiene.reports@electricalsafety.on.ca
Fax: 1-905-712-7845
Mail: ESA, 400 Sheldon Drive, Unit 1, Cambridge ON N1T 2H9

Grow House Report Cover Sheet ESA Requirements for Inspection of a Site for Reconnection After a Grow House or Meth Lab Operation

Following are links to Professional Listings of persons or agencies that may conduct the required testing in compliance with ESA’s Health and Safety requirements. It is the responsibility of the facility owner to confirm that ESA requirements can be met prior to engaging the services of a person or agency.

CRBOH – Canadian Registration Board Occupational Hygienists Directory of Consultants in Occupational and Environmental Health and Safety – 2007 Public Database Search for Persons Certified for the Practice of Industrial Hygiene by the American Board of Industrial Hygiene

Certificates of Inspection

  • The Electrical Safety Authority is encouraging the public to request copies of the “Certificate of Inspection” for all electrical work done in their homes/businesses. The General Inspection provides the end-use customer with a record that all electrical work in their home/business complies with the requirements defined in the Ontario Electrical Safety Code.
  • The Certificate of Inspection is sent to the permit applicant — ask your contractor for a copy of the Certificate.
This blog communication is for public awareness and public responsibility, for client and customer benefit and best intrest in mind.

Source of Information : http://www.esasafe.com/GeneralPublic/index.php
Vijay Gandhi is an Re/max Real Estate sales Personnel &  independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.

Have you considered a 50/50 Mortgage?
As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today!We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:
vijaygandhi.com , icxforsale.com & torontomortgagetrends.com
Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. to availability
Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*
Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/

“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.
Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Light Rail Transit & Scarborough Condos – Good and Bad sides

22 Saturday Jan 2011

Posted by gtarealtyagent in Condos, current real estate affaiirs, FAMILYLAW & REAL ESTATE, Let's Talk Investing, Mortgage, Pre-Construction, Real Estate info & ideas, VIP Condo

≈ Leave a comment

Tags

Sheppard Avenue East Light Rail Transit


Scarborough CONDO home owners and residences will benefit tremendously from Light Rail Transit (LRT) on Sheppard Avenue East – from Don Mills Subway Station to Meadowvale Road. LRT makes public transit more efficiency and enjoyable from Kennedy Rd  to the East along Sheppard Avenue and to the West – Don Mill Subway Station. Not only does Toronto Transit City Light Rail Plan make overall environment greener most likely it will increases the value of all CONDO units in Scarborough. Pre-construction activities & Resale have been up because of that. The specific LRT construction schedule is being confirmed 2010.

 

Sheppard Avenue East   Light Rail Transit (LTR)

 

 

Connection at Don Mills Subway Station

The Sheppard Avenue East Light Rail Transit (LRT) will provide a fast, reliable, and comfortable way to travel on Sheppard Avenue between Don Mills Subway Station and Meadowvale Road. The LRT is planned to enter a tunnel just west of Consumers Road, travel under Highway 404 and connect directly to the subway level at Don Mills Station. The modern electrically-powered light rail vehicles will operate in dedicated transit lanes, separated from traffic.

What key benefits will this project bring to the City and Scarborough in particular?

Like everywhere across Toronto, there will be considerable growth in the Sheppard corridor in the future. By separating transit from general traffic, this project can provide a fast, reliable – i.e. predictable – ride for customers. More people will find transit attractive, so we are taking a major step towards ‘Building a Transit City”. Toronto’s Official Plan is premised on such an approach to making transit a more attractive travel option as the City grows.

The City’s Official Plan (OP) designates certain sections of the city as ‘Avenues’ where they plan to develop a more urban and pedestrian friendly street environment – this includes the section on Sheppard Ave from Victoria Park to McCowan. Light Rail Transit (LRT) will help create development in this area that is more dense, varied and transit-oriented.

Project Overview

The Toronto Transit Commission and the City of Toronto will construct an LRT line from Don Mills Subway Station to Meadowvale Road which will improve transit operations on Sheppard Avenue East significantly.

• The LRT will operate in reserved lanes in the middle of Sheppard Avenue East between

Consumers Road and Meadowvale Road.

• West of Consumers, the LRT is planned to operate in a tunnel under Highway 404, and

connect directly to the subway level at Don Mills Station.

• The associated road works include a major widening of Sheppard Avenue between

Pharmacy Avenue and Meadowvale Road to incorporate the LRT, two traffic lanes in each direction, separate left turn lanes, and new bicycle lanes.

• The project will include a grade-separation of Sheppard Avenue under the Agincourt GO line.

LRT Connection between Consumers Rd. and Don Mills Station

The Sheppard East LRT will enter a tunnel just west of Consumers Road,

travel under Highway 404 and ‘butt up’ against the east end of the subway platform. This

would allow transferring customers to walk from the subway to the LRT along a single

continuous platform without having to change levels.

  

The purpose of the project 

The TTC and the City of Toronto want to identify the best way to provide high quality transit service in the Sheppard Avenue East corridor, from Don Mills Subway Station, to Morningside and potentially as far east as Meadowvale Road, in a manner whichis affordable. It makes transit a much more attractive travel option relative to the private auto; and it supports the City’s growth objectives of a better variety and density of transit-oriented developments.

The projected annual ridership of the route

In 2021, it is expected that the Sheppard East LRT will carry 17 million riders a year. Based on further, detailed forecasting (premised on development levels as far into the foreseeable future as possible – 2031) we can expect to be carrying 3000 people per hour in a single direction on the busiest point on the line.

Technology

There are two basic criteria that are generally required for a facility to be called “LRT”: electrically powered rail vehicles with power supplied from overhead wires – which allows them to operate on a city street – and operation of these vehicles in a dedicated right-of-way. The vehicles can be operated individually, or attached together and operated in ‘trains’. This right-of-way can take many forms – from lanes in the middle of the street, to hydro corridors or abandoned railway corridors

In addition to the above, all-door loading (not just front doors) is characteristic of modern LRT lines in North America and there is normally a much greater distance between stops, relative to a typical bus route.

LRT preferred over a subway extension

The design of a transit service is based on the number of people it is expected to carry per hour in a single direction at the ‘peak point’, the busiest spot on the line. City planning forecasts for the Sheppard Avenue corridor into the foreseeable future show a peak point demand in the order of 3000 people per hour. This demand can easily be accommodated by LRT, particularly given that the new light rail vehicles being designed for the TTC will be about twice the size of a standard Toronto streetcar, and can be easily ‘coupled’ to operate as two-car trains, if single vehicles operation is getting too frequent to avoid vehicles catching up and ‘bunching’. A peak point demand of 3000 per hour is well below what would be required to justify the much higher cost of a subway.

 

Preliminary cost estimates of a surface LRT – such as that proposed on Sheppard Avenue, including vehicles, is estimated to cost roughly $40 million per kilometre. In comparison, recent estimates for the extension of the Spadina/University subway, from Downsview station to Steeles Avenue, are over $200 million per kilometre (including vehicles).

LRT preferred over buses

LRT is more comfortable for riders, quieter, has no emissions on the street, and is far superior in carrying capacity in a constrained environment such as an arterial roadway. Buses in dedicated lanes, sometimes called BRT, or bus rapid transit, cannot easily accommodate 3000 people – the peak hour demand projected on Sheppard Avenue – unless the bus ROW includes by-pass lanes at intersections to allow some buses to operate “express” and pass “local buses” stopped to serve customers. To illustrate the problem, it would require 40 articulated buses per hour to accommodate a peak hourly demand of 3000 people. That is a bus every 1 ½ minutes. Even with dedicated lanes, buses operating this close together would catch up to one another and ‘bunching’ would result if some of them don’t operate express. Given that there are a variety of important objectives for Sheppard Avenue – in addition to high quality transit – such as a comfortable walking environment, attractive streetscaping, bike lanes, etc., there is not sufficient width available to allow for the construction of a by-pass lane to be added to the transit right of way.

Speed of LRT vs Buses 

In terms of reduced travel times, in the p.m. rush hour, the bus service on Sheppard Avenue is scheduled to operate at an average speed of about 17kph. For purposes of comparison, the average speed of TTC subways is in the order of 30kph. It is expected that the LRT will travel at speeds of about 22km-25km depending on the number of stops in the final design.

Therefore the travel time savings on Sheppard using an LRT are projected to be considerably faster than bus service in the p.m. peak period, when there is the greatest interference from traffic. Keep in mind that those are today’s figures – the average speed of a bus in mixed traffic would be expected to decrease as the city grows; given that the LRT is to operate in separate lanes, it will be protected from increasing traffic congestion.

The LRT run in the middle of the street

In designing dedicated transit lanes, any crossings by other traffic must have a traffic signal to ensure everyone knows who has the right-of-way. On Sheppard Avenue, or any roadway where there are very frequent un-signalized intersections and driveways, the side of the road option is not feasible because they would all have to be signalized.

The Sheppard LRT connect to the existing transit network (SRT)

SRT is a separate study looking at optional alignments – that study will determine the location of and design of the interface between the two lines. The SRT (Scarborough Rapid Transit) study website is also located at www.toronto.ca/involved .

At a minimum, it must extend far enough east to intersect with the Scarborough Malvern LRT line. At present, that line is proposed on Morningside, but that EA study will evaluate Neilson as a potential alternative. In any event, the Sheppard East LRT EA study is evaluating going as far east as Meadowvale

Traffic, Parking and Other 

East of Pharmacy, Sheppard has two through traffic lanes in each direction and the road will be widened to maintain these lanes. However, there are some existing right turn lanes that may be removed to allow more space for a better pedestrian/cycling environment and better urban design. West of Pharmacy, where there are three through lanes in each direction, we expect a reduction to only two through lanes, consistent with the section to the east. However, our designs to date do not include a reduction to the number of lanes on Sheppard in the vicinity of the Hwy 404 overpass.

Left turns across the right-of-way will only be permitted where there is a traffic signal. Between traffic signals, there will be no left turns permitted from Sheppard into un-signalized intersections or driveways, or from those locations, onto Sheppard. However, there will be separate left turn lanes provided at the signalized intersections and motorists will be able to make “U” turns from these lanes; a motorist on Sheppard who now makes a left turn into a midblock driveway could, with the LRT in place, simply go past the driveway, to the next signalized intersection, and make a “U” turn to return to his/her destination.

Noise or vibration from the LRT

There will be very little noise – the greatest problem with noise on light rail lines is created at locations where the vehicle must operate through a loop to turn around. This creates ‘wheel squeal”. The vehicles on Sheppard are planned to be ‘double-ended” – ie. have an operators’ cab at both ends so it can be operated in either direction. It will reverse direction at each end of the line, similar to the operation of a subway, and therefore will not need loops. TTC will design the trackbed to dampen vibration and ensure it is kept at an acceptable level; as part of the EA study, TTC will be undertaking a vibration assessment. 

Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Sincerely,
Vijay Gandhi,

Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/ , http://gtarealtyagent.blogspot.com

“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

Your comments on the subject is most welcome…

Please discuss the recent developments in your community connected to this project and find out the ways and get advice if it is connected to your real estate interest from us .Thank you.










Light Rail Transit & Scarborough Condos
 

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RE/MAX Listings: click on the City Name

17 Monday Jan 2011

Posted by gtarealtyagent in Let's Talk Investing, Listing of the Day

≈ Leave a comment


RE/MAX Listings click on the City Name

Toronto Mississauga Kitchener Ottawa Windsor
Cambridge Brampton Hamilton London Niagara Falls
Oakville Barrie Burlington Markham Vaughan
Guelph Sudbury St. Catharines Waterloo Oshawa

Toronto |Scarborough |Ajax |Pickering Whitby

Markham-Stouffville |Richmond Hill |Vaughan |Etobicoke

Brampton |Mississauga

Suggested click to Searches:








Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:
vijaygandhi.com , icxforsale.com & torontomortgagetrends.com
Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Sincerely,
Vijay Gandhi,

Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*
Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074
C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441

E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/ , http://gtarealtyagent.blogspot.com
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.
Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

Your comments on the subject is most welcome…

Share this:

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New Mortgage Regulations Announced on 17 Jan 2011

17 Monday Jan 2011

Posted by gtarealtyagent in Business, condo assignment investments, Condos, current real estate affaiirs, Houses, Interest Rates, Let's Talk Investing, Mortgage, Opinion, Real Estate info & ideas

≈ Leave a comment

Tags

ammortization, Finance Minister, Mortgage Refinancing in Toronto, mortgage regulations., new


Finance Minister Jim Flaherty has announced new mortgage regulations.

Video Link from Globe and Mail Link  1

Link1 : http://www.theglobeandmail.com/report-on-business/video/ottawas-new-mortgage-rules/article1872591/
Video Link from Globe and Mail Link 2
Link 1

http://www.theglobeandmail.com/report-on-business/video/ottawas-new-mortgage-rules/article1872591/

January 17, 2011

As many of you heard this morning on the news the changes about Mortgage market by Finance minister.

Here is a quick Update, stay tuned for updates on this topic.

This morning, Finance Minister Jim Flaherty has announced new mortgage regulations aimed at reducing Canadians’ soaring household debt.

Flaherty has unveiled three new rules:

(1) Mortgage amortization periods will be reduced to 30 years from 35 years.

(2) The maximum amount Canadians can borrow to refinance their mortgages will be lowered to 85 per cent from 90 per cent.

(3) The government will withdraw its insurance backing (i.e. CMHC insurance)on lines of credit secured on homes, such as home equity lines of credit.

The new rules come on the heels of a Bank of Canada announcement that Canadians’ domestic debt burdens have hit record levels.

 

The change in amortization and refinance borrowing limits will go into effect on March 18, 2011 and the change in insurance on home equity lines of credit will go into effect on April 18, 2011.

 

The first change is likely to have the largest impact. Buyers who purchase a home with less than 20 per cent of the value of the home are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.

 

Under the new rules, mortgages amortized over longer than 30 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 30 years in Canada.

 

While Flaherty called the changes “moderate,” they did not include an increase to the five per cent minimum down payment Ottawa requires for a home purchase. They also stopped short of a proposal that surfaced last week which would have required 100 per cent of condo fees to be included in the list of expenses that are measured against income when financial firms consider a mortgage candidate. Currently, only 50 per cent must be included.

 

The ratio of household debt to disposable income has reached 147 per cent and household debt has reached $1.4 trillion.

 

The International Monetary Fund has called household debt the No. 1 risk to the Canadian economy.

 

Here is net impact of the first change a client with 90K income that could qualify for 415K with 5 % down, Now the same client will qualify for 397K, another way to look at it is that 4K more in income would be needed to qualify for 415K purchase price. THIS IS EFFECTIVE AS OF MARCH 18 for Mortgages and April 18 for Line of credit.

Here is the link to the official change: http://www.fin.gc.ca/n11/11-003-eng.asp

Action for realtor B2B partners: It is a good idea to touch all clients in pipeline to make sure their approvals are valid in their benefit.

If you need to run a quick scenario by me feel free to call at your convenience.

For more information on the regulations and their impact on our industry, please contact Vijay at vgandhi@remax.net

Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

 

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Sincerely,
Vijay Gandhi,

Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/ , http://gtarealtyagent.blogspot.com

“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

Your comments on the subject is most welcome…

Related links:

http://montreal.ctv.ca/servlet/an/local/CTVNews/20110117/flaherty-mortgage-rules-110117/20110117/?hub=MontrealHome

Ottawa’s new mortgage rules

 

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Is your home free from potential health hazards?

15 Saturday Jan 2011

Posted by gtarealtyagent in current real estate affaiirs, Home Reno (adds The Value), Houses, Let's Talk Investing, Pre-Construction, Real Estate info & ideas

≈ Leave a comment

Tags

home depot, Home Renovation, Top 5 Home Reno’s


 

  • Healthy Home

Air Quality

 

A Breath of Fresh Air
Did you know that indoor air is often more polluted than the air outside? Whether dust, dander, odours or VOCs are the issue, there’s an air purifier to help make your home a healthier place to be.

more »SHOP AIR PURIFIERS »

 

Give Your Home a Breathe-Better Makeover
Feeling lousy? How about a little décor therapy? Go clean with your renovating and decorating materials-think environmentally responsible flooring, low-VOC paints and a quality air filter-and not only will your home look better but you might just feel better too.

more »SHOP FURNACE FILTERS »

view all air quality articles »

Water Quality

 

What Are You Drinking?
Is your water leaving your drinking glasses coated with soap scum? Or maybe it smells just a little off? Whether the culprit is lime, rust or sediment, identifying the issue is the first step in fixing your water problem.

more »SHOP WATER FILTERS »

 

Crystal Clear
You drink it, bathe in it, cook with it: Water. How pure is yours? Will a simple filter meet your needs or do you require an ultraviolet system? Our guide to today’s water-treatment options can help you make your water as clean as it can be.

more »SHOP WATER SOFTENERS »

view all water quality articles »

Home Safety

 

What’s Your Fire-Safety Plan?
Keeping your family safe from fire requires not just common sense around everything from matches to appliances, but also the right type of smoke detectors and fire extinguishers, plus a well-detailed escape route. Are you prepared?

more »SHOP SMOKE & CARBON MONOXIDE DETECTORS »

 

Carbon Monoxide: Silent But Deadly
You can’t see it, taste it or smell it, but carbon monoxide can have lethal consequences. So take a read below: Find out where it comes from and how to keep your home and family safe from its potential danger.

more »SHOP FIRE EXTINGUISHERS »

view all home safety articles »

Hazardous Materials

 

Clear Your Air
You can’t see it, smell it or hear it. That doesn’t mean danger doesn’t lurk. Keeping your home safe means making sure your air is clear of dangerous carbon monoxide, radon and formaldehyde. Don’t be alarmed; just be safe.

more »SHOP AIR CONDITIONERS & PORTABLE FANS »

 

Clean and Green
Living a healthy life for you and your family means adopting a natural approach to cleaning your home and garden. Edit out the hard-core detergents and pesticides and look instead to your pantry for inspiration.

more »SHOP CEILING FANS »

view all hazardous materials articles » 

 

__________above all info is from  http://www.homedepot.ca______________


So what’s the Listing Commission?

My Listing commission plan is straightforward. 1% for me and the buyer agent will get his usual 2.5% (if you want to pick total 2% listing this will be 1%).

Total maximum commission you will ever pay with me is 3.5%.

This is for FULL service. No cutting corners. No tricks.&

if for any reason you are not satisfied you can cancel the listing at anytime. No penalties charged.

Well this sounds like too good , but its true….Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

From all economic indicators, it appears that higher interest rates are on the way in 2012.
What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.
Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!
Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:
vijaygandhi.com , icxforsale.com & torontomortgagetrends.com
Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate |Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*
Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

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Real Estate Today

15 Saturday Jan 2011

Posted by gtarealtyagent in current real estate affaiirs, Interest Rates, Let's Talk Investing, Opinion, Real Estate info & ideas

≈ Leave a comment

Tags

real estate today


Real Estate Today

Proposed condo rules could make it harder to buy (CTV)

New rules would hit condo buyers (Financial Post)

Canadian housing data (Globe and Mail)

Clouds darken over new home construction (Globe and Mail)

New home prices top pre-recession peak (Financial Post)

Canadian homebuilding activity falls in December – pdf (TD Economics)

Toronto housing starts up for 2010 (Toronto Star)

Building permits down in Toronto market (Toronto Star)

Toronto’s priciest home is going for $27M (Toronto Star)

C.D. Howe wants a rate hike. Seriously? (Globe and Mail)

Major cities enjoy economic rebound (Globe and Mail)

Few foreclosures, no bank failures: Canada offers lessons (Hamilton Spectator)

Real estate market faces stronger year: report (CBC)

Canadian real estate market to resemble 2010: report (CTV)

U.S. home price drops exceed Great Depression: Zillow (Financial Post)

A Record Year for Reverse Mortgages (Canadian Mortgage Trends)

Garth Turner, the Housing Crash, “Liar Loans” & More (Canadian Mortgage Trends)

No solid basis for the scary speculation (The Montreal Gazette)
Making Real Estate Easy!! ( http://wp.me/pS1hn-fF )

Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

 

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate |Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Proposed condo rules could make it harder to buy- HURRY

15 Saturday Jan 2011

Posted by gtarealtyagent in condo assignment investments, Condos, current real estate affaiirs, Development, Let's Talk Investing, Mortgage, New Development/Week, Pre-Construction, Real Estate info & ideas

≈ Leave a comment


Proposed condo rules could make it harder to buy

 

Real Estate
Real Estate

The federal government is considering new rules to make it harder to qualify for a loan to buy a condominium.

The new regulations would be part of Ottawa’s effort to toughen borrowing guidelines and tamper down Canadians’ debt.

The change would add 100 per cent of condo fees to the expenses considered when a buyer is applying for a mortgage. Currently, only 50 per cent of the fee is considered.

Toronto realtor Brad Lamb says the move is going to push a lot of people out of the market.

“A lot of people are going to get locked out of buying a condo, which, in most cities in Canada, is the most affordable option for housing,” he told CTV News. “It’s a terrible idea.”

The maximum length of a mortgage could also come down from 35 years to 30.

“You’re talking $150 to $200 more per month, which works out to $40,000 in purchase price,” Lamb said.

Craig Alexander with TD Bank says the new rules might not take people out of the market completely.

“It really wouldn’t take people out of the market. It would mean people would end up taking a lower mortgage and buying a lower-priced house,” he said.

Prime Minister Stephen Harper acknowledged the rumours of the new rules.

“The government remains concerned about growth and the level of household debt, and will look at taking prudent steps to moderate that growth,” he told reporters. “We’ve seen some moderation recently.”

There is also speculation the government might increase the minimum downpayment required. Currently it is five per cent.

source-http://www.ctv.ca/CTVNews/Canada/20110114/condo-rules-110114/

Want to learn more on HST and how it will affect your property, please call Vijay Gandhi

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Why you should request a credit report

14 Friday Jan 2011

Posted by gtarealtyagent in Business, condo assignment investments, Condos, current real estate affaiirs, Houses, Interest Rates, Let's Talk Investing, Mortgage, Opinion, Real Estate info & ideas

≈ Leave a comment

Tags

credit report, equifax, transcanada


Why you should request a credit report

Checking your credit is one of the best ways to stay on top of your financial situation. Even if you are diligent with all your finances, you should still make it a point to request a credit report at least once a year.

Credit reports accomplish three things. First, they can help you determine if there is any unknown debt in your name. For instance, your friend Misa could have used a credit report to find out about her hidden $8,000 debt. Second, they will tell you about any mistakes in your credit file — a CNN survey found that 79 per cent of credit reports reveal errors, which can have serious consequences. Third, scrutinizing your credit history can help identify if someone is trying to steal your identity.

What’s in a credit report?

Credit reports contain comprehensive information on every loan you’ve had in the past six years. You can see whether you paid your bills on time, the credit limit on each account, and how much you owe.

Each line item will also have a score, consisting of a type and rating. “R” stands for revolving credit, like a credit card, whereas “I” stands for installment account, like a mortgage. The ratings are from 0 to 9. Zero means you have no credit history, one means you pay your bills within 30 days, and nine means you have bad debt.

Each report will also list any authorized credit grantors who have accessed your credit file.

How do I check my report?

Canada has two credit reporting agencies, Equifax and TransUnion, both of which offer free and paid options to access your report. (I Guess once in year, ask them.)

The free option can be accessed by either calling Equifax at 1-800-465-7166 or by completing and mailing in a form to TransUnion. If you are in a rush to access your report, you can get an instant credit report online from either company for about $15.

What if there is a mistake?

My credit report had a line item for a credit card I thought I had cancelled six months earlier. Turns out the credit card company never cancelled the account. I called and asked them to cancel it — problem solved.

If you find an error on your credit report, both agencies offer a free credit dispute service which can be found on their websites. The credit agency will review the disputed item with the creditor and if there is an error, remove it from your report. If your report is updated, the credit agency will send you a revised report 60 days later.

If the dispute is not resolved, however, the item will remain on your credit report and you won’t be notified. You may have to resort to legal action to clear up the error. Ask/ Consult a lawyer.

Canadian credit bureau contacts, based on your province of residence:

Experian Canada Experian Canada, Inc.
150 King Street West, Suite 805
P.O. Box 68
Toronto, Ontario, Canada
M5H 1J9
Experian Canada credit report request form.
Trans Union of Canada
(For all provinces except Quebec)
TransUnion Canada
Consumer Relations Center
PO Box 338, LCD 1
Hamilton, Ontario
L8L 7W2
TransUnion credit report request form.
(For Quebec residents) Trans Union (Echo Group)
1600 Henri Bourassa Boul Ouest
Suite 200
Montreal, PQ
H3M 3E2
TransUnion credit report request form.
Equifax Equifax Canada Inc.
Consumer Relations Department
Box 190 Jean Talon Station
Montreal, Quebec
H1S 2Z2
Equifax credit report request form
Download the free viewer

Canadian credit bureau phone and address information

Identification required for free Canadian credit report by mail

To get your Canadian credit report by mail you must provide two pieces of photocopied identification, front and back. One of your identifications must show a signature.  Acceptable identification includes:

  • Driver’s license or Provincial ID card
  • Birth Certificate or Passport copy
  • Bill statement (gas, telephone, electricity, cable)
  • Certificate of Indian Status
  • Credit Card
  • Citizenship Card

To receive a copy of your Consumer Disclosure report, TransUnion requires the following information: Your full name, present address,  previous address (if present address is less than 2 years,) phone number (optional,) date of birth, place of employment (optional,) Social Insurance Number (optional,) and your signature.

This info. Is for the benefit of our blog subscriber and client awareness program.

Also refer previous blog article:
Capital Gains Tax (Summary & Web Links)
Making Real Estate Easy!! ( http://wp.me/pS1hn-fF )

Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

 

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

People who read this also read … Related Internal Links

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Creating a Tax-Deductible Canadian Mortgage- Investment Perspective

12 Wednesday Jan 2011

Posted by gtarealtyagent in Business, condo assignment investments, Condos, current real estate affaiirs, Houses, Interest Rates, Let's Talk Investing, Mortgage, Opinion, Real Estate info & ideas

≈ Leave a comment


Creating a Tax-Deductible Canadian Mortgage- Investment Perspective

The way that mortgages are treated in the Canadian tax code is slightly different than in the U.S. One main difference is that the interest on a mortgage for a principal private residence in Canada is not tax deductible. However, no taxes are payable on any capital gains upon selling the home (Some conditions apply- see my previous article about capital gain and loss). But what if there was a way to take advantage of the capital gains exemption, and make the interest tax deductible? Keep reading to find out how to make your Canadian mortgage tax deductible.

An individual’s net worth is his or her assets minus liabilities. To increase your net worth, you must either increase your assets; decrease your liabilities, or both.

An individual’s free cash flow is the amount of cash that is left over after all expenses and debt payments have been made. To increase your cash flow, you must spend less, get a better paying job, or pay less tax. Let’s take a look at a strategy to help you increase your assets by building an investment portfolio, decrease your debts by paying off your mortgage faster, and increase your cash flow by paying less tax; effectively increasing your net worth and cash-flow simultaneously.

The Strategy

Every time you make a mortgage payment, a portion of the payment is applied to interest, while the rest is applied to principal. This principal payment adds equity to the home and can be borrowed against (often at lower rates). If the borrowed funds are then used to purchase an income-producing investment, the interest on the loan is tax deductible, which makes the effective interest rate on the loan even better.

This strategy calls for the homeowner to borrow back the principal portion of every mortgage payment, and invest it in an income-producing portfolio. Under the Canadian tax code, interest paid on monies borrowed to earn income is tax deductible. As time progresses, your total debt remains the same (as the principle payment is borrowed back each time a payment is made), but a larger portion of it becomes tax deductible debt (good debt), and less of it remains as “old” non-deductible debt (bad debt).

To explain this better, refer to Figure 1 below, where you can see that the mortgage payment of $1,106 per month consists of $612 in principal and $494 in interest.

Figure 1

As you can see, each payment reduces the amount owing on the loan by $612. After every payment, the $612 is borrowed back and invested – this keeps the total debt level at $100,000, but the portion of the loan that is tax deductible grows by each payment. You can see in Figure 1 that after one month of implementing this strategy, $99,388 is still non-deductible debt, but $612 is now tax deductible.

This strategy can be taken a step further: The tax-deductible portion of the interest paid creates an annual tax refund, which could then be used to pay down the mortgage even more (Ask your tax consultant). This mortgage payment would be 100% principal (because it is an additional payment), and could be borrowed back in entirety and invested in the same income-producing portfolio.

The steps in the strategy are repeated monthly and yearly until your mortgage is completely tax deductible. As you can see from the previous figure and the next figure, the mortgage remains constant at $100,000, however, the tax deductible portion increases each month. The investment portfolio, on the side, is growing also, by the monthly contribution and the income and capital gains that it is producing.

Figure 2

As seen in Figure 2, a fully tax deductible mortgage would occur once the last bit of principal is borrowed back and invested. The debt owed is still $100,000; however 100% of this is tax deductible now. At this point, the tax refunds that are received could be invested as well, to help increase the rate at which the investment portfolio grows.

Benefits

The goals of this strategy are to increase cash flow and assets while decreasing liabilities. This creates higher net worth for the individual implementing the strategy. In addition, this strategy also aims to help you become mortgage-free faster, and to start building an investment portfolio faster than you could have otherwise.

Let’s look at these a bit closer:

* Become Mortgage-Free Faster: The point at which you are technically mortgage free is when your investment portfolio reaches the value of your outstanding debt. This should be faster than with a traditional mortgage because the investment portfolio should be growing at the same time as you are making mortgage payments. The added mortgage payments from the tax returns can pay down the mortgage even faster.

* Build an investment portfolio while paying your house down: This is a great way to start saving. It also helps free up cash that you might otherwise not have been able to invest prior to paying off your mortgage.

Now, let’s compare a traditional mortgage to that of a person using this tax-deductible technique.

Case Studies

Dick and Jane’s House – Bought the Traditional Way
Dick and Jane bought a $200,000 home with a $100,000 mortgage amortized over 10 years at 6% with a monthly payment of $1,106. After the mortgage is paid off, they invest the $1,106 that they were paying for the next five years earning 8% annually.

After 15 years, they own their own home, and have a portfolio worth $81,156

Dick and Jane’s House – Bought Using the Tax Deductible Strategy

Dick and Jane bought a $200,000 home with a $100,000 mortgage amortized over 10 years at 6% with monthly payments of $1,106. Every month, they borrow back the principal and invest it. They also use the annual tax return that they receive from the tax deductible portion of their interest and pay off the mortgage principal. They then borrow that principal amount back and invest it. After 9.42 years, the mortgage will be 100% good debt, and will start to produce an annual tax refund of $2,340 assuming a marginal tax rate (MTR) of 39%. After 15 years, they own their own home, and have a portfolio worth $138,941 – a 71% increase.

For better understanding consult your personal tax advisor.

A Word of Caution

This strategy is not for everyone. Borrowing against your home is psychologically difficult, and if the investments don’t yield expected returns, this strategy could yield negative results. By re-borrowing the equity in your home, you are also removing your “cushion” of safety if the real estate (or investment) markets take a turn for the worse. By creating an income-producing portfolio in an unregistered account, there can also be additional tax consequences or capital gain tax on the income produced over investment – so always consult with a professional financial advisor to determine whether this strategy is for you, and if it is, have it tailor-made to you and your family’s personal financial situation.

Also refer previous blog article:
Capital Gains Tax (Summary & Web Links)

Making Real Estate Easy!! ( http://wp.me/pS1hn-fF )

Vijay Gandhi from RE/MAX is dedicated to providing you with a home you’ll love to live in. Contact him as by email

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Recent Posts

  • Bank of Canada hikes key interest rate 50 basis points for 1st time in 22 years!!
  • The Bank of Canada raised its target for the overnight rate to 0.50 per cent.
  • Despite record high inflation, Bank of Canada holds interest rate steady & Unchanged
  • The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. Feb/05/2020
  • Two Big Six banks hike benchmark rates by Approximately 45 BPS, Despite BOC holding its rate.

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