Bank of Canada holds the interest rates

Bank of Canada just announced that will keep holding the rate at 0.75% due to low rate of  inflation of 1% reflecting the drop in costumer energy prices.
"Real GDP growth is projected to rebound in the second quarter and subsequently strengthen to average about 2.5% on a quarterly basis until the middle of 2016. The Bank expects real GDP growth of 1.9% in 2015, 2.5% in 2016 and 2% in 2017.”

Source:  http://www.calgarysun.com/2015/04/17/bank-of-canada-holds-the-line-on-interest-rates

First-time home buyers’ most common mistakes

Buying your first home can be an exciting experience -- but it can also be complex, confusing and time-consuming. Here are some common traps first-time home buyers fall into that you should avoid:


You're Not Sure How Much You Can Really Afford

"How much can I borrow?" is not the same as "How much should I borrow?" The mortgage that you qualify for isn't necessarily the amount you can actually afford. Bear in mind that homeownership brings extra expenses such as utilities, homeowners insurance, property taxes and maintenance and repair costs. Factor those into your monthly budget to find out how much home you can comfortably afford without becoming "house poor."

Overlooking Extra Costs

Your mortgage isn't the only cost to consider when purchasing a home. You'll also have to be ready at the outset to cover closing costs -- potentially including loan origination fees, appraisal and home inspection costs -- as well as moving costs and any necessary repairs you'll need to make when you take possession of the home.

Make sure you have a budget that can cover several thousand dollars of extra expenses related to home buying.

Not Getting Pre-Approved for a Mortgage

Before you even start looking at houses, you should get pre-approved for a mortgage. This carries two benefits: First, you'll know the price range for a home you can realistically purchase, and second, many realtors won't even let you put a bid on a house until you've completed this step.

Getting Too Emotional

It's easy to fall in love with a home at first sight, but don't let that initial emotional reaction cloud your judgment. Look beyond the aspects you adore and ask yourself if the entire house is the right fit for you -- is it large enough, is the layout workable, is it in the right neighborhood, will you have to make any costly renovations?

Not Getting a Home Inspection

Without a home inspection, you could be purchasing a money trap without even knowing it. Home inspections shine a light on potentially pricey (and dangerous) issues with a home and can save you from getting in way over your head.

Source: http://realestate.aol.com/blog/2015/02/12/common-mistakes-first-time-home-buyers/?utm_content=buffer53406&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer

Occupancy Standards

The Condominium Act allows condominiums to limit the number of people who can occupy a unit in a corporation. To do this the standard must be set by by-law. It is recommended that any buildings near educational institutions should include such provisions in their by-laws as doing so provides the corporation with the ability to control the numbers of people living in a unit. The current maximum provided in these by-laws is two persons per sleeping room as set out in the Ontario Building Code.  There are two ways to deal with overcrowded units.

First, is when the overcrowding is a result of people occupying the unit who are not family related members, for example a group of students. One student signs the lease for a two bedroom unit and 5 extra students then move in.  With an occupancy standard by-law, the corporation can seek the removal of the two extra people.

Second, if the overcrowding is as a result of children or extra family members occupying the unit, then the Human Rights Code family status provision will not allow the enforcement of the occupancy by-law provision, but the corporation can levy a surcharge against the unit.

Spurce: http://www.millerthomson.com/en/publications/articles/occupancy-standards?utm_source=Mondaq&utm_medium=syndication&utm_campaign=View-Original

Canadian home sales slip lower in January

Home sales slipped lower in January for the second month in a row. The Canadian Real Estate Association says sales through its multiple listing service in January were down 2.0 per cent compared with a year ago. Compared with December, January's sales were down 3.1 per cent.
The national average price for a home sold in January was $401,143, up 3.1 per cent from a year ago.
CREA says it was the smallest year-over-year increase since April 2013.

Source: http://www.ctvnews.ca/business/average-price-for-a-home-in-canada-is-401-143-crea-1.2239839

Rent Control in Ontario

You’ve survived several months in your rental unit and have managed to transform your rental unit into a home. You’re probably wondering about the amount of rent you’ll have to pay if you remain living there. You have no clue what the rent will be like next year if you decide to stay in your rental unit (you also have no clue about what you’ll wear tomorrow but that’s a whole different story). Here are a few guidelines that will satisfy your curiosity about rent control in Ontario.

After 12 months have passed since you first moved in (or since your last rent increase), your landlord can (and more than likely will) increase your rent once every 12 months. Once the 12 months have passed, you’ll be happy to know that your landlord cannot surprise you with an increase of rent without first notifying you. In fact, the landlord must give you a written notice of rent increase at least 90 days before the day the rent increase is to start. Why 90 days? Well, if you don’t like (or can’t afford) the new rent, it will allow you enough time to give the landlord proper notice of termination and find another suitable place to call home.

Regarding how much your landlord can increase your rent by, in most cases your landlord will follow rent increase guidelines set annually by the Ministry of Municipal Affairs and Housing. The Ministry isn’t inventing random numbers but relying on the Ontario Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada. For 2014, the rate of allowable rent increases is 0.8%.

For example, if your monthly rent ($900) of an apartment began on September 1, 2013, then 12 months later on September 1, 2014, your landlord could lawfully increase your rent by 0.8 percent. Of course, proper written 90 days’ notice should have been provided to you. Therefore, your new rent amount from September 1, 2014 would be ($900 x 0.008 = $7.20) $907.20. Now here’s where it can get complicated. If your rent increases by more than 0.8% then it’s probably because the law allows landlords to apply to the Landlord and Tenant Board for an increase above the rent increase guideline for operating costs related to security services, for eligible capital expenditures, or if their costs for the municipal taxes or utilities have increased by more than the guideline plus 50 per cent.

The only silver lining with all this talk about rent control is that the interest rate on the deposit for the last month or week that you gave to your landlord before you began your tenancy is the same as the rent increase guideline.

Source: Matthew Wilson, real estate and land development lawyer

http://lernersrealestate.ca/blog/post/rent-control-in-ontario?&utm_source=Mondaq&utm_medium=syndication&utm_campaign=View-Original

Gone downtown: 2015 real estate trend

According to a new report produced by PricewaterhouseCoopers and Urban Land Institute, homeowners who choose the convenience of city life over the more generous living space in suburbia are driving Canada’s real estate market.

The most recent numbers available show that the population of urban centres grew 7.1 per cent between 2006 and 2011, according to Statistics Canada.

Much of this is due to changing demographics as young families and millennials forgo the white picket fence and house in the suburbs to take advantage of downtown living, where properties are smaller but offer more conveniences.

Meanwhile, an expected rise this year in interest rates from historically low levels may also influence demand in the housing market. Developers responding to the needs of downtown dwellers by building more mixed-used properties, which include residential and retail space.

Source: http://metronews.ca/news/canada/1196234/gone-downtown-2015-real-estate-trend/