"I Fell for a Huge Century Home in Need of Major Repairs"

This is something we can many of us can relate to!! I absolutely love this essay and wanted to share.

Published Tuesday, Aug. 23, 2011 3:29PM EDT

Robin Albrecht - Globe and Mail 

I swaggered into home ownership with the naive confidence of a first-time buyer. I had a down payment, a spreadsheet of monthly expenses and an IKEA gift card – I was ready.

After a few weeks of looking at well-built, renovated homes in my price range, I grew bored. These houses looked like everyone else’s houses. They had no heart, no character. They didn’t speak to me the way I felt my first home should. I wanted a warm, fuzzy feeling in my gut.

In that moment of weakness, I saw it – a listing for a century home in a charming town just 15 minutes outside the city.

“I like old stuff,” I thought. “I like charming small towns with fall fairs and friendly neighbours. They’d probably bring me a pie the day I move in!” How could I resist? A viewing was scheduled.

The warm fuzzies started as I drove down the street. The house sits across from a huge field and winding river. This field and its adjacent community centre are home to annual bake sales, community breakfasts and theatre productions, and the all-important fall fair. Images of being buddies with the locals and looking out my living room window to see livestock and midway rides flooded my head.

My real-estate agent made a valiant effort to bring me back to reality. “That river floods,” he warned as we turned into the driveway. I barely heard him as I gazed up at the sprawling white house with periwinkle trim. It was already whispering my name.

The front door brought us into a charming enclosed front porch flooded with sunlight. A turn of the glass doorknob (and a gentle shove of the shoulder) revealed everything I hadn’t known I wanted. Creaky hardwood floors, an exposed brick wall, a nook off the family room – perfect for my library and office – and the kitchen, a huge room with original tin ceilings, a functional 1950s Frigidaire stove and a view of the gigantic backyard. This was it.

I was ready to move in immediately, but somewhere in the back of my mind, a little voice prompted a home inspection. I was a knowledgeable and well-prepared purchaser. I knew about these things.

One week later the inspection took place and the results were (mostly) favourable. The roof would need to be replaced in a year or two, a shower wall was mushy and it seemed like some of the electrical work had been a DIY job. Over all, I was told there wasn’t much to worry about and it was a great, character-filled home. A real gem. I agreed wholeheartedly.

The three months before the closing date flew by. Paint colours were selected, furniture was ordered, room layouts were sketched onto many a sticky note. I experienced a few moments of doubt that I considered a natural result of making the biggest purchase of my young life, but was still convinced I had made the right decision.

The first time I really began to wonder if a 135-year-old behemoth of a house was the best choice for a single, 25-year-old woman was when we went for a final walkthrough. My brother pointed out that I wouldn’t be able to put a chair with wheels into the library nook because I would roll back over the home’s sloped floors. I noticed that every surface in the bedrooms was wallpapered, including the ceilings and inside the closets, and that the kitchen counter was abnormally low. I reassured myself that the house was sound, that these were cosmetic imperfections and I didn’t want a chair with wheels anyway.

A month after I moved in, every ceiling in the upper level started to drip when it rained. After hours of chipping decades-old wallpaper from the master bedroom and remudding the walls, water seeped in and effectively melted the work that had been done.

It turned out the previous owners had been less than truthful about their oil heating costs, and I had been unaware buyers can ask to see previous bills. Then an inspection by an electrician revealed $5,000 in work to bring everything up to code. And how had I not processed the fact that my laundry room was in an unheated addition at the opposite end of the house from my bedroom? Those pipes burst soon enough.

It was time to admit I had been blinded by the excitement, distracted by the charm and foolish to ignore the advice of those around me. What had I been thinking? Why hadn’t someone stopped me? In truth, my parents and boyfriend, co-workers and friends had tried, but I was too convinced of my own invincibility to listen. I finally understood why parents get so frustrated with kids who think they know everything. Because kids who think they know everything make ridiculous decisions.

Thousands of dollars flew from what I had considered a well-padded bank account. The roof was replaced, a gas line and new furnace installed. Empty paint cans piled up as I slowly worked through each room and made the house my own. I can stand at my oddly low kitchen sink and watch my dogs frolic in the yard.

A year and a half later, I have learned to appreciate, and more importantly listen to, the opinions and advice of those around me. I still look around and add tasks to a constantly expanding list of improvements. But my roof doesn’t leak, I can afford heat and I love the work I’ve done and the knowledge that my friends and family will stick by me even when I’m being unreasonable. The neighbours may not have brought me pie, but the house didn’t flood this spring and that’s good enough for me.

Robin Albrecht lives in New Hamburg, Ont
.

Make your basement rec room chic & inviting.

This post by Sarah Richardson (HGTV) on basement living has some great photos, ideas, etc. for anyone thinking about renovating their basement.

Its very common when working with buyers that their 'must-have' list includes finished basement space. My only 'beef' with the article is that the photos in question do not all appear to be a 'basement' as we think of it - some appear to be above-grade.

http://www.theglobeandmail.com/life/home-and-garden/decor/sarah-richardson/make-your-basement-rec-room-chic-and-inviting/article2273585/

Its December 1st!!

I STILL haven't heard how the HGTV filming went for our cousins. I think they are purposely avoiding me since they don't want to be bombarded with questions - but they can't avoid me at Christmas!!!

Since its December 1st, I think its officially acceptable for me to hand out Christmas cookie tins and mail out Christmas cards. I can't wait - I love doing it!!! I actually hate snow, so I have to find something to make me happy over the winter months (aside from browsing travel websites!)

Happy December 1st! Go buy or sell a house!

Rick Mercer bought because he couldn't afford rent!

I often say to people that for the most part, buying is cheaper than renting. Of course there ARE exceptions - pricy, 'hot' cities like Vancouver or New York make buying almost for the super-rich. Generally speaking, however, buying is more affordable - and hopefully it helps you build equity in the meantime. If buying wasn't a better option, do you think so many people would be landlords?

This article appeared in yesterday's Toronto Star - it is an interview with Rick Mercer about money, and he talks about when he was 19 he bought because it was cheaper than rent! Of course, like many people, he had "a hand up" from his parents (help with the downpayment). Very cool to see that even celebrities needed help at one point.

By Emily Mathieu | Sat Nov 26 2011

The Toronto Star

Comedian and commentator Rick Mercer’s distinct take on Canadian politics and social issues can be caught on the Rick Mercer Reportevery Tuesday at 8 p.m. on CBC. In our series on the financial habits of notable Canadians Mercer told the Toronto Star’s Emily Mathieu about his $19,500 row house, why trying to make a living in show business is a gamble and why entertainers, thanks to the nature of their industry, tend not to retire.

How did your childhood influence your attitude toward money?

My parents were pathological about living within their means and there simply wasn’t a lot of money. So as a family there were no trips to Florida but lots of camping trips, the driveway wasn’t paved (still isn’t) but there was money for music lessons, the house is small and had one bathroom for a family of six but it was paid for.

For people who had relatively little money my parents didn’t actually stress about money because they avoided debt. They certainly made a lot of sacrifices. As kids we knew that they would help out with post secondary education, for example, but the entire time I was growing up I doubt my father ever paid more than a thousand dollars for a truck, and he would paint them with a brush. I can’t actually think of anything that my father needed that he bought new.

Even now if I mention to Dad that I went to Canadian Tire and bought a lawn mower I know what he is thinking “Hmm, bought a new lawn mower, fool and his money”.

What was the best financial advice they passed on?

My father said never loan money to friends or at least never loan money and expect it back. If you are in a position to help a friend that’s great and you are in fact obligated to, but don’t expect it back. He was adamant that allowing a friendship to be damaged because of bad feelings around money is inexcusable.

What was your first big purchase?

My first house. I was 19 years old, I paid $19,500 for a very skinny row house, attached on both sides, attached to 20 other houses and a Chinese take out. The house was essentially condemned; it came with a huge binder of work orders from the city of St. John’s.

I was the cliché of a starving actor and actually couldn’t afford to live in an apartment. Owning the house allowed me to live on my own and concentrate on working in comedy. My cousin and a few friends rented rooms for $75 bucks a month. I financed it with $4,000 down which was money that my parents had planned to give me for university. I had payments of $300 dollars a month on a $15,000 dollar bank loan. The down payment from my parents was a hand up that changed my life.

How do you prefer to pay, cash, card or debit?

I have no preference. But I’m careful to pay off my cards monthly. Which I understand is a luxury.

Do you bank online?

Very little.

What has been your savviest investment?

Canadian Banks. Boring old Canadian Banks back in the early 90s.

Have you learned any financial lessons the hard way?

Yes I have and the tip I would give for anyone who is playing around in the market is to avoid people with hot tips.

What advice would you give to people about to enter the entertainment industry?

It depends on what area. There are lots of very good stable jobs in the entertainment industry. It’s an exciting industry. That said if a young person says they want to be a professional actor or musician I generally say don’t. A person doesn’t become an actor, a musician or a dancer because other people encouraged them, they do it because they have to, it is in their blood and they can’t imagine doing anything else.

If you can imagine doing something else you should probably concentrate on that. Being an artist or a performer is a very difficult life, there is no job security. In show business you can’t make a living but you can make a killing, it is a big gamble.

Was there a moment in your career where you felt you had achieved financial security?

Yes and no I don’t care to elaborate.

Do you worry about retirement?

I don’t worry about retirement but I do worry about not working. One of the great things about being an actor or a writer is you never have to stop working. I look forward to playing a crotchety old man.

But all actors worry about not working. When I bump into Gordon Pinsent he will talk about work, where the next job is, etc. He’s worked more than almost any actor alive, he could have retired comfortably decades ago but he is an actor and that’s what actors do, they worry about their next job.

Can money buy happiness?

It certainly doesn’t hurt. Anyone who says otherwise is lying. Money can mean not having to worry about paying the bills and there is no doubt about it for the vast majority of people that is the number one cause of stress in their life. But it all comes back to living within your means.

I’m sure there are people with massive salaries and five million dollar cottages in Muskoka they visit for two weeks a year stressing about bills at the end of the month. So one thing we do know is money can’t buy smarts.

Are money and success the same thing?

Absolutely not.

O.M.G.

OMG. My husband's cousins have posted on Facebook that they are being filmed by HGTV today for a new tv show.

I have never felt a jealousy so intense!! My lifelong dream of being an HGTV star is so close - and yet so far!!! Some day, I'm going to BE Sandra Rinomato. Not just be LIKE her, but I'm going to BE her. She has to retire at some point.

I have absolutely NO idea what specifically they are being filmed for - I think they are doing some renos, so it may be related to that - but I still think its super cool. Plus, I've always wanted to know what goes on behind the scenes - I'm curious to see if the final product is 'staged' or is actually the process they go through. Do they get paid? SO many questions!!

I'm going to pester them with this blog post in hopes that they will sit down for me and tell me every.single.detail. of what happened.

Stay tuned, friends!!

How To Squeeze a Gym into your Small Space

Home Body: How to squeeze a gym into your small space

November 20, 2011The Toronto Star

LIZ BRUCKNER

The problem with working out in a small space is twofold: Quarters are tight and equipment is large. Thankfully, making a few changes to your home’s setup — and choosing strategically sized fitness gadgets — can help even the coziest areas yield a workout worthy of the gym.

Clear the clutter. The easiest way to transform a cramped living room into one that welcomes a workout is to move bigger pieces — like coffee or side tables and chairs — out of the way. “All you need is an area that’s six feet by six feet to get a good workout,” says Andre Potvin, Vancouver personal trainer and president of INFOFIT Educators School for Fitness Professionals. If you’re able to lie down without bumping into furniture when facing north/south and east/west, he says you’ve got more than enough room.

Pull double duty. Sometimes the key to incorporating exercise equipment into small areas lies in choosing the right multi-tasking pieces. Toronto-based interior designer Marisa Arpaia loves stability balls for this reason. “They’re great to use as a chair in a home office, and as an addition to Pilates, yoga and core-strengthening workouts. And because they’re easily deflated, they can magically disappear when company shows up.”

Shrink it. It’s not just furniture that’s downsizing of late — fitness gear is shrinking too. According to Dai Manuel, chief operating officer for Fitness Town, two products taking off for the home market are Power Plate Vibration Training, a machine that promises body toning and cellulite reduction in mere minutes a day, and Functional Trainers, a space-conscious multi-functional machine that offers a complete workout via hundreds of different exercises. “Both of these systems have been gaining momentum for the past two years as in-home fitness solutions because they’re effective and take up very minimal space,” Manuel says.

Think like a trainer. There’s a plethora of collapsible or compact pieces of fitness equipment that can be easily hidden or stored away, so channel your inner trainer and follow the ‘in the bag’ technique. “If I’m training a client in their home, I only bring what fits in my bag,” says Potvin. The pieces making the cut: a stability ball, two sets of resistance tubing and PowerBlock dumbbells, which are portable, compact and can offer weight equivalent to that of an entire rack of dumbbells. “Each of these pieces are versatile, easily stowed and ideal for an at-home gym,” he says.

Avoid the oversized. Unless your last name is Beckham and you have a large personal gym at home, think twice about cluttering up your space up with clunky treadmills, exercise bikes and elliptical machines. While some are folding and can be tucked away in a closet or even under a bed, in many instances, says Arpaia, these machines end up being used as an expensive laundry rack and not for much else.

Pass on fads. As with fashion, certain pieces of fitness equipment have a decidedly ‘flavour-of-the-month’ feel to them. “Kettle bells and medicine balls fall under the ‘not necessary at home’ category for me,” says Potvin. “They can be great fitness tools, but working out with them requires quality instructions about precise techniques before someone attempts to use them on their own.” His suggestion: Stick with the classics, and don’t waste your money — or space — on pieces that are best left at the gym.

See a professional. You’ve stocked your home with the best small-space equipment. Now what? “The most important thing I suggest people do when they’re trying to dedicate themselves to a fitness routine — in or out of their home — is hire a trainer,” says Potvin. Even if it’s for one session a month, you’ll not only be walked through proper technique, that single session can set you up for a month of training and ultimately lower the chances of you giving up on workouts because you’re not sure which moves to perform.”

The snow is falling!

The snow is officially starting to fall. I'm sure we will have lots of 'melts' from here until Christmas, but it is becoming a lot more common to see snow than rain. The trees have lost most of their leaves, and the air is definitely crisp. I wish I could say I like winter - I honestly admire people who do. I've tried - I took up skiing, snowshoeing, I even went winter camping with my Girl Guides last year. We spent most of it bundled up inside with the heat on :)

It seems as though when the snow starts, people stop looking at houses - they've got too many other things to think about! Christmas, New Years, holiday parties....who wants to go to an Open House when they can go shopping?! (well, I still prefer Open Houses, but I'm weird.....) So the housing market definitely slows down, but it doesn't die completely - its actually a great time to buy if you're looking! Realtors are slower so you definitely get 150% of their attention, you are less likely to end up competing, and there is usually an abundance of houses to choose from. Plus, you can have a move-in date of early spring, and whats more fun than moving into your new house before summer?! Especially if it has a pool!!!

If you're thinking of buying or selling this winter, don't be scared off by the weather! The real estate market is always moving, and you never know when you're going to find the perfect house :)

Have a great weekend!

Average Vancouver bungalow now $1M

Canadian home prices remained resilient in the 3rd quarter, Royal LePage says. The national average price of a detached bungalow rose the most in the 3rd quarter — 7.8 per cent year-over-year to $349,974.

VINCE TALOTTA/TORONTO STAR

By The Canadian Press | Wed Oct 05 2011

• Recommend (4)

TORONTO — Royal LePage says home prices remained unexpectedly resilient across Canada’s housing market in the third quarter, but the overall strength is concealing signs of moderation in some regions.

In its House Price Survey and Market Survey Forecast, Royal LePage says that Canada’s residential real estate market benefited from very low interest rates and a relatively stable domestic economy.

The national average price of a detached bungalow rose the most — 7.8 per cent year-over-year to $349,974.

However, prices varied widely depending on the local market. For instance, detached bungalows in Vancouver had an average price of about $1 million — nearly three times the national average.

The Canadian national price of a standard two-storey detached home rose 7.7 per cent to $388,218 and the price of a standard condominium 5.7 per cent to $239,300.

In Vancouver, usually the country’s most expensive real-estate market, the average price fo two-storey homes was $1.14 million and condos were going for about $513,500.

The report highlighted both Calgary and Edmonton as regions where prices were relatively flat year-over-year.

In Toronto, prices were up for all housing types surveyed. The average price for detached bungalows was $518,433, up 9.4 per cent from a year earlier. Standard two-storey homes were up 7.6 per cent from a year earlier to $620,862.

In Atlantic Canada both Halifax surged ahead with the price of standard condominiums increasing 10.4 per cent.

“The strength in Canada’s national housing market conceals signs of predictable softening in some regions,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

“The third quarter saw a return to a normal seasonal business cycle as price appreciation slowed in many areas — with some average values even falling slightly — after the busy spring trading season.”

“A broader slowdown is expected in the months ahead but fears of a US-style correction are completely unfounded,” he added.

Home Ownership Matters!

There’s a reason why home ownership is considered part of the Canadian Dream. People aspire to home ownership for the financial and social benefits to people, communities and Ontario.

TO PEOPLE…

• Home owners say they have a better of Quality of Life. They report being happier, healthier and enjoy a greater feeling of control over their lives.

• Home owners are free to redecorate, renovate and modify their homes as they wish.

• Most home owners enjoy stable housing costs – a fixed rate mortgage payment might change a little over time while rent in Ontario has increased on average 3.5% a year.

TO COMMUNITIES…

• Home owners are civically engaged. Home owners are much more likely to say they voted in the last municipal election than renters.

• Home owners are significantly more likely to have donated to charity, participated in local festivals/events, volunteered, and written a letter to their editor.

• The overwhelming majority (94%) of Ontarians agree that owning a home provides a stable and healthy environment for raising a family.

TO ONTARIO…

• 72% of Ontario households are owner occupied. Ontario is a province of homeowners.

• In 2010, Ontario MLS® home sales generated $9.3 billion in additional consumer spending.

• Every home purchased in Ontario pumps $47,575 into the economy for furniture, home improvements and related items.

• Home sales on MLS® generate over 80,000 direct and indirect jobs annually in Ontario.

Woodstock Sales Strong in March

Woodstock, Ont. 

          The number of homes sold through the MLS® System of the Woodstock-Ingersoll and District Real Estate Board are on par with year-ago levels in March 2010 and up 41 per cent from February 2011.

         According to statistics provided by the Board, home sales numbered 123 units in March 2011 with sales totalling $26.3 million. Of the units sold 112 were Single family homes and 10 were Condominiums.

          “Last year, in March 2010, we saw the market start to pick up momentum with the looming threat of increased interest rates; the introduction of HST; and changes to the mortgage rules. So being on par with last year is a positive sign that our local market is very stable and a stable market is a positive indication of recovery,” comments President Goldhawk.

            The overall dollar value of homes sold in March 2011 is up 4 per cent from March 2010. Edging the residential sales price average up 4 percent to $213,862 compared to year-ago levels. “The increase can be attributed to 28% of homes sold in March were selling at a price of $250,000 or greater. When examining the median price of homes sold in March, the price is $209,900 a difference of 2 per cent from the average sale price and a better more realistic representation to what we are currently seeing in our market,” commented President Goldhawk.

              The best selling residential home type for Woodstock and Ingersoll was the 2-Storey and Bungalow respectively. The total sales numbered 124 units in March, down seven per cent from the same month in 2010. The total value of all properties sold was 26.4 million, down four per cent from March 2010. New listings on the Board’s MLS® System numbered 269 units in March 2011, a decrease of 9 per cent from a year earlier. Seasonally adjusted new listings have been trending downward since peaking a year ago.

If you wish to view the listings currently on the Woodstock-Ingersoll & District Real Estate Board, as well as information pertinent to Sellers and Buyers please go to www.widreb.ca

The Woodstock-Ingersoll & District Real Estate Board is an Association of REALTORS® committed to promoting and providing programs, services, education and technology enhance member competency, knowledge, ethics and professionalism. The Board shall encourage and deliver high levels of service to its members.

The Democratization of Real Estate Data

The democratization of real estate data

April 9, 2011

RYAN STARR

www.thestar.com

Say you bought a one-bedroom downtown condo for $446,000 back in May 2009. Sure, the project’s just a hole in the ground at the moment but you’d still like to know how much that property’s currently worth.

Condo buyers have never been able to get that kind of information before.

And George Carras, chief of RealNet Canada Inc. — the primary data provider for the GTA real estate and development industry — realized there was a big void in need of filling.

In late January his team launched RealCondoInvestor.ca, a site that enables investors to track the estimated value of their condo(s) online and analyze market activity, much the same way they would keep watch on their other investments. “It’s condo meets stock market,” Carras says.

For example, you could see that the one-bedroom condo you bought in 2009 for $446,000 is now worth $605,000. (Feels good, doesn’t it?) You can then compare your condo’s performance to that of the submarket you’re in (Downtown West, for example) and of the municipality.

Alternately, investors can lament a decision they didn’t make. “Some people go in and say, ‘Pretend I bought a one-bedroom at Project A, what would that be like today?’ ” Carras says. “And then they look at it and go ‘Crap!’ ”

RealCondoInvestor.ca, powered by RealNet’s vast databank, currently has information for 65,000 pre-construction or under-construction condo investments in the GTA.

As of early February, the site had several thousand subscribers. RealCondoInvestor.ca is accessed via direct subscription for about $99 a month. It’s free to subscribers of RealNet’s other portals (like RealInfo) or users can also be sponsored by a Toronto Real Estate Board realtor.

Subscribers receive monthly customized emails that detail the value of their investments. The messages come either directly from the site or realtors can use the service strategically, sending clients emails suggesting, Amazon.ca style, other projects they might be interested in. “It’s just smart marketing,” Carras says.

Those researching a prospective purchase can analyze and compare their options using the site’s market analyzer tool.

Subscribers can compare GTA condo price performance against other investment options, such as the TSX, REITs and gold.

They can examine average price trends between various new condo submarkets. And they can delve into price trend differences between particular unit types — one-bedroom versus two-bedroom, for example — in submarkets. They can also compare specific unit types in specific projects to one another.

The analytics are available in five languages, so the site is accessible to global investors.

It’s still early days for RealCondoInvestor.ca and Carras notes the site has already gone through several iterations, with improvements made based on user feedback.

The portal, which he says cost in the seven figures to build, is adding another level of sophistication to what he calls the “best informed market on the planet.”

“Smart people who are informed with real information will make better decisions,” says Carras. “And if you have people who make better decisions consistently over time, you get better markets.”

He thinks RealCondoInvestor.ca will also help make Toronto even more attractive to global real estate investors.

“This market has a global reach and this site has a global reach,” he says. “This is all about making one of the strongest condo markets on the planet more visible to global stakeholders.”

For more information, go to www.realcondoinvestor.ca.

1128 Cree Ave, Woodstock

          Another great new listing for first-time buyers! 1128 Cree is a 2+1 bedroom, 1.5 bath raised ranch semi in North Woodstock.
         Fully renovated top to bottom including new kitchen, new baths, new laminate flooring, paint, doors, etc. New gas furnace in '10. Nice sized backyard with a storage shed. Large paved driveway with parking for 3+ cars.
          Visit the full listing on MLS HERE

1-486 Springbank

      I have a fabulous new listing for a first-time homebuyer. Very clean and spacious end-unit condo in the PineRidge Estates. 1-486 Springbank is a delight to show - owner pride is evident!
      3 bedrooms, 1.5 renovated baths. Upstairs has new laminate flooring, new paint and trim. The entire unit has new windows and is very well-maintained. Central air, forced air gas furnace, very energy efficient. Natural wood-burning fireplace in living room.
      Priced to sell at $129,950. Monthly condo fees of $175 (will be increasing to $185 in July).

        Check out the MLS listing HERE.

The ABC's

When I meet with buyers & sellers, they often have a lot of questions about some of the terminology used when it comes to mortgages and real estate. Here is a quick overview of some key terms.

Adjustable mortgage interest rate:

 

With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.

Amortization:

 

Length of time over which the debt will be repaid.

Appraisal:

 

Process for estimating the market value of a property.

Appraiser:

 

Certified professional who carries out an appraisal.

Appreciation:

 

The increase in value of something because it is worth more now than when you bought it.

Approved Lender:

 

A lending institution authorized by the Government of Canada through CMHC to make loans under the terms of the National Housing Act. Only Approved Lenders can negotiate CMHC insured mortgages.

Assumption Agreement:

 

A legal document signed by a homebuyer that requires the buyer to assume responsibility for the obligations of a mortgage by the builder or the previous owner.

Blended Payment:

 

A mortgage payment that includes principal and interest. It is paid regularly during the term of the mortgage. The payment total remains the same, although the principal portion increases over time and the interest portion decreases.

Builder:

 

A person or company that builds homes.

Carriage home:

 

A carriage, or link home, is joined by a garage or carport. The garage or carport gives access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.

Certificate of location (or land survey):

 

A document that shows property boundaries and measurements, specifies the location of buildings on the property and states easements or encroachments.

Certificate of status:

 

Also called an Estoppel certificate, it is a certificate that outlines a condominium corporation's financial and legal state. Fees may vary and may be capped by law (does not apply in Quebec).

Closed mortgage:

 

A closed mortgage cannot be paid off, in whole or in part, before the end of its term. Many closed mortgages limit prepayment options such as increasing your mortgage payment or lump sum prepayment (usually up to 20% of your original principal amount).

Closing costs:

 

Costs in addition to the purchase price of the home, such as legal fees, transfer fees and disbursements, that are payable on closing day. They range from 1.5% to 4% of a home’s selling price.

Closing day:

 

Date on which the sale of the property becomes final and the new owner takes possession of the home.

CMHC:

 

Canada Mortgage and Housing Corporation. A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians. CMHC also develops and sells mortgage loan insurance products.

CMHC Insurance Premiums:

 

The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

Commitment Letter (or Mortgage Approval):

 

Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.

Compound Interest:

 

Interest calculated on both the principal and the accrued interest.

Conditional offer:

 

An Offer to Purchase that is subject to specified conditions, for example, the arrangement of a mortgage. There is usually a stipulated time limit within which the specified conditions must be met.

Condominium (or strata):

 

A unit, usually in a highrise or lowrise, or a townhouse that can be owned. You own the unit you live in and share ownership rights for the common space of the building. Common space includes areas such as corridors, the grounds around the building, and facilities such as a swimming pool and recreation rooms. Condominium owners together control the common areas through an owners’ association. The association makes decisions about using and maintaining the common space.

Contractor:

 

A person responsible for overall construction of a home, including buying, scheduling, workmanship, and management of subcontractors and suppliers.

Conventional mortgage:

 

A mortgage loan up to a maximum of 80% of the lending value of the property. Typically, the lending value is the lesser of the purchase price and market value of the property. Mortgage insurance is usually not required for this type of mortgage. Counteroffer: If your original offer to the vendor is not accepted, the vendor may counteroffer. This means that the vendor has amended something from your original offer, such as the price or closing date. If a counteroffer is presented, the individual has a specified amount of time to accept or reject.

Credit bureau:

 

A company that collects information from various sources and provides credit information on a person’s borrowing and bill paying habits to help lenders assess whether or not to lend money to the person.

Credit history or Credit Report:

 

The main report a lender uses to determine your creditworthiness. It includes information about your ability to handle your debt obligations and your current outstanding obligations.

Curb appeal:

 

How attractive the home looks from the street. A home with good curb appeal will have attractive landscaping and a well-maintained exterior.

Deed:

 

A legal document that is signed by both vendor and purchaser, transferring ownership. This document is registered as evidence of ownership.  

Default on payment:

 

Failure to make a mortgage payment.

Delinquency:

 

Failing to make a mortgage payment on time.

Deposit:

 

Money placed in trust by the purchaser when an Offer to Purchase is made. The sum is held by the real estate representative or lawyer/notary until the sale is closed and then it is paid to the vendor.

Depreciation:

 

The decrease in value of something because it is now worth less than when you bought it.

Down payment:

 

The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.

Duplex:

 

A duplex is a building containing two single-family homes, located one above the other.

Easement:

 

This is where someone else has the right for access to or over another person’s land for a specific purpose, such as a driveway or public utilities.

Equity:

 

The difference between the price for which a home could be sold and the total debts registered against it. Equity usually increases as the mortgage is reduced through regular payments. Market values and improvements to the property may also affect equity.

Estoppel Certificate:

 

Also called a certificate of status, it is a certificate that outlines a condominium corporation's financial and legal state. Fees may vary and may be capped by law (does not apply in Quebec).

Fixed mortgage interest rate:

 

A locked-in rate that will not increase for the term of the mortgage.

FlexHousing™:

 

A housing concept that incorporates, at the design and construction stage, the ability to make future changes easily and with minimum expense, to meet the evolving needs of its occupants.

Foreclosure:

 

The legal process where the lender takes possession of your property and sells it to cover the debts you have failed to pay off. When you default on a loan and the lender feels that you are unable to make payments, you may lose your home to foreclosure.

Freehold :

 

Ownership of land and buildings (house) by one person (or two, such as joint ownership by spouses). Detached and semi-detached homes, duplexes and townhouses are usually owned freehold. Freehold owners can do what they want with their property — up to a point. They must obey municipal bylaws, subdivision agreements, building codes and federal and provincial laws, such as those protecting the environment.

Gross Debt Service Ratio (GDS):

 

The percentage of the borrower's gross monthly income that will be used for monthly payments of principal, interest, taxes and heating costs (P.I.T.H.) and half of any condominium maintenance fees.

Gross monthly income:

 

Monthly income before taxes and deductions.

High-ratio mortgage:

 

A mortgage loan higher than 80% of the lending value of the property. This type of mortgage may have to be insured — by CMHC, for example — against payment default.

Home inspector:

 

A person who visually inspects a home to tell you if something is not working properly,  or is unsafe. He or she will also tell you if repairs are needed, and maybe even where there were problems in the past.

Home warranty:

 

(New Home Warranty Program) A guarantee that if something covered under the warranty needs to be repaired it will be. If the builder doesn’t repair it, the repair will be made by the organization that provided the warranty.

Household budget:

 

A plan that allocates income for household expenses.

Insurance:

 

insurance provides coverage to ensure a loan is paid. See also Mortgage Loan Insurance and Mortgage Life Insurance.

Insurance premium:

 

Payment for insurance.

Interest:

 

The cost of borrowing money. Interest is usually paid to the lender in regular payments along with repayment of the principal (loan amount).

Interest rate:

 

The price paid for the use of money borrowed from a lender.

Land registration:

 

A legal document that records the ownership of a property and land.

Land survey:

 

(Survey or Certificate of Location) : A document that shows property boundaries and measurements, specifies the location of buildings on the property and states easements or encroachments.

Land surveyor:

 

A professional who can survey a property in order to provide a certificate of location.

Lawyer:

 

A legal advisor who assists people by representing them on legal matters.

Lender:

 

A mortgage lender is an institution (bank, trust company, credit union, etc.) that lends money for a mortgage.

Life insurance:

 

See Mortgage life insurance.

Lien:

 

A claim against a property for money owing. A lien may be filed by a supplier or a subcontractor who has provided labour or materials but has not been paid.

Link home:

 

A link, or carriage home, is joined by a garage or carport. The garage or carport gives access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.

Lump Sum Prepayment:

 

An extra payment, made in lump sum, to reduce the principal balance of your mortgage, with or without penalty. A closed mortgage typically restricts the amount and frequency of the prepayments you can make. With an open mortgage, however, you can make a lump sum prepayment at any time without penalty. Making prepayments can help you pay off your mortgage sooner and ultimately save on interest costs over the life of your mortgage.

Manufactured home:

 

Sometimes called a mobile home is a factory-built, single-family home. It is transported to a chosen location, and placed onto a foundation.

Maturity Date:

 

The last day of the term of the mortgage. On this day, the mortgage loan must either be paid in full or the agreement renewed.

Mobile home:

 

These are built in factories, and then taken to the place where they will be occupied. While these homes are usually placed in one location and left there permanently, they do retain the ability to be moved.

Modular Home:

 

A factory-built, single-family home. The home is typically shipped to a location in two, or more, sections (or modules).

Mortgage:

 

A mortgage is a security for a loan on the property you own. It is repaid in regular mortgage payments, which are usually blended payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money). The payment may also include a portion of the property taxes.

Mortgage approval:

 

Written notification from the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.

Mortgage broker:

 

The job of the mortgage broker is to find you a lender with the terms and rates that will best suit you.

Mortgage life insurance:

 

Mortgage life insurance gives coverage for your family, if you die before your mortgage is paid off.

Mortgage loan insurance:

 

If you have a nigh-ratio mortgage (more than 80% of the lending value of the property) your lender will probably require mortgage load insurance, which is available from CMHC or a private company.

Mortgage payment:

 

A regular payment to the lender that includes both the interest and the principal.

Mortgage term:

 

Length of time that the agreed-upon mortgage contract conditions, including interest rate, is fixed.

MLS — Multiple Listing Service:

 

A multiple listing service is a real estate agents’ cooperative service that contains descriptions of most of the homes that are for sale. Real estate agents use this computer-based service to keep up with properties they are listing for sale in their area.

Net worth:

 

Your financial worth, calculated by subtracting your total liabilities from your total assets.

New Home Warranty Program:

 

Coverage in the event that an item under the warranty needs to be repaired. If the builder doesn’t repair it, the repair will be made by the organization that provided the warranty.

Notary:

 

In Quebec a notary handles the legal matters related to home buying.

Offer to purchase:

 

A written contract setting out the terms under which the buyer agrees to buy the home. If the Offer to Purchase is accepted by the seller, it forms a legally binding contract that binds the people who signed to certain terms and conditions.

Open mortgage:

 

A flexible mortgage that allows you to pay part before the end of its term.

Open-house:

 

A period of time during which a house or apartment for sale or rent is held open for public viewing.

Operating Costs:

 

The expenses that a homeowner has each month to operate a home. These include property taxes, property insurance, utilities, telephone and communications charges, maintenance and repairs.

Payment schedule:

 

The monthly, biweekly, or weekly mortgage payments

Premium:

 

See CMHC Insurance Premiums.

Principal:

 

The amount that you borrow for a loan. Each monthly mortgage payment consists of a portion of the principal that must be repaid plus the interest that the lender is charging you on the outstanding loan balance. During the early years of your mortgage, the interest portion is usually larger than the principal portion.

P.I.T.H.:

 

Principal, interest, taxes and heating — costs used to calculate the Gross Debt Service ratio (GDS).

Property Insurance:

 

Insurance that you buy for the building(s) on the land you own. This insurance should be high enough to pay for the building to be re-built if it is destroyed by fire or other hazards listed in the policy.

Property taxes:

 

Taxes charged by the municipality where the home is located based on the value of the home. In some cases the lender will collect a monthly amount to cover your property taxes, which is then paid by the lender to the municipality on your behalf.

Real estate:

 

Property consisting of houses and land.

Realtor or real estate agent:

 

A person who acts as an intermediary between the seller and the buyer of a property.

Reserve Fund:

 

This amount is set aside by the homeowner on a regular basis so that funds are available for emergency or major repairs. Setting aside 5% of your monthly take-home pay will give you a well-funded reserve.

Row house:

 

Also called a townhouse, a row house is one unit of several similar single-family homes, side-by-side, joined by common walls.

Security:

 

Property that can be claimed by a creditor if a loan is not repaid.

Single-family detached home:

 

Free-standing home for one family, not attached to a house on either side.

Single-family semi-detached home: 

 

Home for one family, attached to another building on one side.

Stacked townhouse:

 

Two two-story homes are stacked one on top of the other. The buildings are usually attached in groups of four or more. Each unit has direct access from the outside.

Strata (or condominium):

 

a unit, usually in a highrise or lowrise, or a townhouse that can be owned. You own the unit you live in and share ownership rights for the common space of the building. Common space includes areas such as corridors, the grounds around the building, and facilities such as a swimming pool and recreation rooms. Strata owners together control the common areas through an owners’ association. The association makes decisions about using and maintaining the common space.

Survey or Certificate of Location:

 

A document that shows property boundaries and measurements, specifies the location of buildings on the property and states easements or encroachments.

Sustainable neighbourhood:

 

Neighbourhood that meets residents needs while protecting the environment.

Total Debt Service (TDS) ratio:

 

The percentage of gross monthly income required to cover the monthly housing payments and other debts, such as car payments.

Term:

 

Mortgage term is the length of time that the mortgage contract conditions, including interest rate, are fixed.

Title:

 

A freehold title gives the holder full and exclusive ownership of the land and building for an indefinite period. A leasehold title gives the holder the right to use and occupy the land and building for a defined period.

Title Insurance:

 

Insurance against loss or damage caused by a matter affecting the title to immoveable property, in particular by a defect in the title or by the existence of a lien, encumbrance or servitude.

Total Debt Service Ratio (TDS):

 

The percentage of gross monthly income required to cover the monthly housing payments and other debts, such as car payments.

Townhouse:

 

Also called a row house, a townhouse is one unit of several similar single-family homes, side-by-side, joined by common walls.

Variable mortgage interest rate:

 

Fluctuates based on market conditions but the mortgage payment remains unchanged.

Vendor:

 

The seller of a property.

Vendor take-back mortgage (Sometimes called take-back mortgage):

 

The vendor, not a financial institution, finances the mortgage. The title of the property is transferred to the buyer who makes mortgage payments directly to the seller. These types of mortgages, can be helpful if you need a second mortgage to buy a home.

Warranty (New Home Warranty Program):

 

Coverage in the event that an item under the warranty needs to be repaired. If the builder doesn’t repair it, the repair will be made by the organization that provided the warranty. All provinces have New Home Warranty programs for newly built homes. However, there are currently no such programs in the Territories.