29 Mar

Need an Appraisal? Tips for Success.

General

Posted by: Karli Shih

Appraisal services help to pinpoint the market value of real estate.  The appraiser checks the general condition of your home and determines a comparable market value based on the sale information of other homes in your area.

Planning in advance of an appraiser’s visit can help you secure the best possible valuation of your property by keeping a few things in mind:

1) Clean Up:  A good rule of thumb is to treat the appraisal like an open house. Clean and declutter every room, vacuum, and scrub to ensure your home is as presentable and appealing as possible.

2) Curb Appeal: First impressions can have a huge impact when it comes to an appraisal. Spending time ensuring the outside of your property from your driveway entrance to front step is clean and welcoming can make a great difference.

3) Visibility: The appraiser must be able to see every room of the home. Take care of any issues with respect to accessing and being able to see everything in each area of your property to allow the appraiser full access.

4) Upgrades and Features: Ensuring the appraiser is aware of any upgrades and features can go a long way. Make a list and include everything from plumbing and electrical updates to new flooring and appliances etc.

5) Know Your Neighbourhood: Noting what similar homes in your neighbourhood have sold for will allow you to discuss examples from your area if you believe your property is worth more than the appraisal suggests.

Don’t hesitate to contact me if you have any questions about your existing home or mortgage, or if you are looking to sell and relocate in the future.  I’m always happy to help.

 

 

Adapted from DLC Marketing

Photo Credit: Andrea Davis on Unsplash

22 Mar

House Hunting

General

Posted by: Karli Shih

Buying a home is one of the largest investments you may ever make. In order to make your home hunting experience the best it can be, here are a few key items to keep in mind before you start your journey:

Get Pre-Qualified: One of the most important aspects of buying a home is the mortgage application and approval process. If you need a mortgage to complete the purchase, getting pre-qualified via a detailed review of your financial picture will determine the actual home price you can afford.

Set a Pre-Determined Budget and Planning: Setting, then following your pre-determined budget and staying within your means will set you up for success. Getting pre-qualified will help determine what you can afford, and will help you select the best mortgage options with your future goals in mind.

Hiring a Real Estate Agent: Realtors help negotiate the purchase price and other purchase terms such as timing and specific items included with your new home.  They can also occasionally provide access to properties that may not be listed publicly.  They understand the home buying process and guide you through from the first viewing to getting the keys to your new home in hand.

Property Features: Price and location should be higher priorities than aesthetic details such as paint color, flooring, or even outdated appliances or light fixtures, which can all be updated.  Sometimes homes may only need a bit of imagination and a few minor updates to become your perfect space.

Think Ahead: What you look for in a house today could be very different from what will suit you in the future. Planning for a growing family or helping aging parents may factor.  You can always sell your home later on if needed, but how that home may accommodate you later could increase a particular property’s appeal to you now.

If you are looking to purchase a new home, whether it be your first space, a step up, or you’re downsizing, I would be happy to help! Even if you’re in or nearing retirement, you may have an opportunity to leverage your home’s equity in the future tax free, which can preserve your investments and provide you savings on capital gains taxes.  Please don’t hesitate to reach out to set up a virtual appointment to find out more.  I am here to discuss your mortgage options, pre-qualifications and to help uncover what you need to know now before you make a move.

 

 

 

Adapted from DLC Marketing

Image Credit: Jonathan Borba Unsplash

 

15 Mar

Property Security Tips

General

Posted by: Karli Shih

Safeguarding your property can be simple keeping a few ideas in mind.  The following is a list of security options for some of the key areas you’re likely to want to consider when planning to protect your home or investment property.

Securing Windows

  • Reinforce the windows on the first floor with window stops.
  • Keep windows locked at night or when occupants are away.
  • Frost garage windows.
  • Consider adding window sensors for an added layer of protection.

Securing Doors

  • Change the locks when you take possession of a new property.
  • Use deadbolts instead of spring-latch locks.
  • Install door reinforcement hardware on any outward facing doors (including sliding doors).
  • Consider installing a video doorbell to help see who is at the door right from your phone or computer.

 

Interior Security

  • Install a home security system or a security camera.
  • Password protect the Wi-Fi network.
  • Leave a few lights on at all times.
  • Secure your smart devices you can access with your phone.

Exterior Security

  • Install motion-detector lighting outdoors.
  • Install security sensors in any detached buildings, like a garage or out-buildings.
  • Maintain any trees and shrubbery to ensure a clear view.

 

Adapted from DLC Marketing

Photo – Samuel Wolfl from Pexels

8 Mar

Bank of Canada Pauses Rate Hikes

General

Posted by: Karli Shih

As expected, the central bank held the overnight rate at 4.5%, ending, for now, the eight consecutive rate increases over the past year. The Bank is also continuing its policy of quantitative tightening. This is the first pause among major central banks.

Economic growth ground to a halt in the fourth quarter of 2022, lower than the Bank projected. “With consumption, government spending, and net exports all increasing, the weaker-than-expected GDP was largely because of a sizable slowdown in inventory investment.” The surge in interest rates has markedly slowed housing activity. “Restrictive monetary policy continues to weigh on household spending, and business investment has weakened alongside slowing domestic and foreign demand.”

In contrast, the labour market remains very tight. “Employment growth has been surprisingly strong, the unemployment rate remains near historic lows, and job vacancies are elevated.” Wages continue to grow at 4%-to-5%, while productivity has declined.

“Inflation eased to 5.9% in January, reflecting lower price increases for energy, durable goods, and some services. Price increases for food and shelter remain high, causing continued hardship for Canadians.” With weak economic growth for the next few quarters, the Bank of Canada expects pressure in product and labour markets to ease. The central bank believes this should moderate wage growth and increase competitive pressures, making it more difficult for businesses to pass on higher costs to consumers.

In sum, the statement suggests the Bank of Canada sees the economy evolving as expected in its January forecasts. “Overall, the latest data remains in line with the Bank’s expectation that CPI inflation will come down to around 3% in the middle of this year,” policymakers said.

However, year-over-year measures of core inflation ticked down to about 5%, and 3-month measures are around 3½%. Both will need to come down further, as will short-term inflation expectations, to return inflation to the 2% target.

Today’s press release says, “Governing Council will continue to assess economic developments and the impact of past interest rate increases and is prepared to increase the policy rate further if needed to return inflation to the 2% target. The Bank remains resolute in its commitment to restoring price stability for Canadians.”

Most economists believe the Bank of Canada will hold the overnight rate at 4.5% for the remainder of this year and begin cutting interest rates in 2024. A few even think that rate cuts will begin late this year.

In Congressional testimony yesterday and today, Federal Reserve Chair Jerome Powell said that the Fed might need to hike interest rates to higher levels and leave them there longer than the market expects. Today’s news of the Bank of Canada pause triggered a further dip in the Canadian dollar (see charts below).

Fed officials next meet on March 21-22, when they will update quarterly economic forecasts. In December, they saw rates peaking around 5.1% this year. Investors upped their bets that the Fed could raise interest rates by 50 basis points when it gathers later this month instead of continuing the quarter-point pace from the previous meeting. They also saw the Fed taking rates higher, projecting that the Fed’s policy benchmark will peak at around 5.6% this year.

 

Bottom Line

The widening divergence between the Bank of Canada and the Fed will trigger further declines in the Canadian dollar. This, in and of itself, raises the Canadian prices of commodities and imports from the US. This ups the ante for the Bank of Canada.

The Bank is scheduled to make its next announcement on the policy rate on April 12, just days before OSFI announces its next move to tighten mortgage-related regulations on federally supervised financial institutions.

To be sure, the Canadian economy is more interest-rate sensitive than the US.  Nevertheless, as Powell said, “Inflation is coming down, but it’s very high. Some part of the high inflation that we are experiencing is very likely related to a very tight labour market.”

If that is true for the US, it is likely true for Canada. I do not expect any rate cuts in Canada this year, and the jury is still out on whether the peak policy rate this cycle will be 4.5%.
Courtesy of Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
1 Mar

Change of Address Checklist

General

Posted by: Karli Shih

 

Changing your address is just one of your to-do’s when you move, but this can go smoothly with a bit of advance planning.  Before moving just be sure to notify the following groups on this list:

 

Personal Contacts

  • Relatives
  • Friends
  • Employer
  • Schools, colleges, universities, daycares
  • Landlord (if necessary)
  • Clubs, associations and charities

 

Healthcare Professionals

  • Doctor(s)
  • Dentist
  • Veterinarian
  • Other healthcare specialist(s)

 

Creditors and Services

  • Phone, cable, internet, mobility company
  • Electricity / hydro
  • Natural gas
  • Heating fuel company (ask if you receive a deposit refund)
  • Financial institution
  • Credit card companies
  • Insurance companies / broker(s)
  • Lawyer / notary
  • Subscriptions (e.g., newspapers, books, music, loyalty programs)

 

Government Services

Lastly, it is vital to inform the federal and your provincial/territorial government if your address changes to ensure all your data and ID cards are updated:

  • Driver’s license
  • Health Card
  • Vehicle registration
  • Canada Post / epost
  • Canada Revenue Agency
  • Canada Pension Plan / Quebec Pension Plan
  • Old Age Security
  • Employment Insurance

 

Whether you are purchasing, upsizing, or downsizing, feel free to give me a call to make a plan for your new mortgage, or to just review your current one.  I’m happy to help.

 

Adapted from DLC Marketing

 

Photo by Cande cop on Unsplash