Thursday, April 28, 2011

Canadian Home Pricing and Consumer Confidence


Consumer confidence rose by 4 points in April over the previous month, according to the Conference Board of Canada consumer confidence index. It also revealed a sharp shift in Canadians' attitudes toward making major purchases such as homes, appliances and automobiles.

For the first time in almost a year, survey respondents who think now is a good time to make a major purchase outnumber those who don’t. While results vary by province, news reports on the index highlight that Canadians overall seem to be more positive about job prospects and financial security.

As consumer confidence goes up – more good news for prospective home buyers is that prices appear to be levelling off in several real estate markets. The Taranet - National Bank of Canada House Price Index is a composite index of housing prices in six metropolitan areas – Halifax, Montreal, Ottawa, Toronto, Calgary and Vancouver. In February, it showed a modest 0.08 overall rise in repeat sale prices over the previous month, with prices going up in some markets and down in others.

Inflation, along with growing consumer and investor confidence, has economists speculating that the central bank will raise its key interest rate on May 31. Some predict it could go as high as two percent by year’s end and put downward pressure on housing prices.

If you can absorb the effect of a rise in interest rates on your monthly mortgage payments, it might be worth waiting to see where prices go; if you're sensitive to rate fluctuations and seeking a long-term property investment, now may be the time to make your move.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record -

CENTURY 21 United Realty Inc. Brokerage
Direct Line: 705.743.4444 |
Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Tuesday, April 26, 2011

Buyers Agent or Multiple Representation?

Q: Why should I work with one agent when buying a home? Isn’t it better to keep my options open by having multiple agents send me information about available homes?

A: Loyalty is a two-way street. A good agent will bend over backwards for his or her client, as long as the agent knows that the client won’t defect to another agent once the perfect home is found. When a great listing comes on the market, who do you think the Realtor will call first, a client who is working exclusively with this Realtor, or someone who told the agent “call me if you find something interesting” and is juggling several Realtors at once? You’ve guessed it; the loyal client gets the first call.

Choosing a Buyer’s Agent to work with exclusively benefits both of you. You get a professional who is obligated to find you the home you’ll fall in love with, answer any questions or unknowns about the process, negotiate on your behalf, take care of all the paperwork, and look out for your (not the seller’s!) best interests. The agent gets the peace of mind of knowing that after working hard to find you your dream home, he or she will get paid. That sounds pretty fair, doesn’t it? And since the seller, not the buyer, pays the agent, it is hard to understand why any buyer would not want to have a dedicated Buyer’s Agent at his side.

It’s Your Career – I’m Here to Support YOU!
Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705।743.4444 | Fax: 705-743.3702 | E-Mail:
Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Tuesday, April 19, 2011

Mortgage Business Down Due To Government Changes


Recent mortgage-rule changes have eroded volumes by as much as 15 per cent, possibly reflecting the loss of clients to the alternative lending market.

What we’re seeing is a loss of what were A clients that no longer qualify as borrowers with us because of the rule changes.

Leading that migration are clients looking to refinance above the new cap of 85-per cent of value. Others include new borrowers who need amortization terms longer than the new maximum of 30 years.

Starting March 18, Ottawa withdrew government backing for 35-year mortgages, lowering the cap to 30. Among other key changes, meant to rein in on record-high levels of consumer debt, the federal government also lowered the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes.

Starting today, it has also withdrawn government backing on any new lines of credit secured by homes, such as home equity lines of credit – HELOCs. It means many A-type clients may now be unable to obtain a line of credit at 80% LTV or higher. More importantly from Canadiana’s perspective, they can’t qualify for refinances above 85 per cent despite relatively low risks of default.

It's Your Career - I'm Here to Support YOU!

Constantine Isslamow

Broker of Record / Mortgage Broker

CENTURY 21 United Realty Inc. Brokerage.

Independently Owned & Operated

CENTUM Core Financial Inc. Brokerage License #: 10642 Constantine Isslamow License#: M08005391

Friends, followers and Connections are the way of the future.

Saturday, April 16, 2011

Thinking of Using a Mortgage Broker?


Despite the abilities of mortgage brokers to find rates for home buyers often lower than those posted by the big banks, some buyers are reluctant to leave the comfort of their lending institutions in favour of personal ‘agents’ working in their best interests.

This is supported by evidence that in Canada, first-time buyers are the most likely to use mortgage brokers, while repeat buyers tend to become loyal to their initial lending institutions and are a little more reluctant to switch to independent brokers.


But why?

Brand Loyalty

It’s hard to break up with your long-term financial institution, but switching your mortgage provider doesn’t mean you have to leave your bank. Maybe it’s the fear that your once friendly local bank manager will suddenly treat you like stale cheese, but banks understand - and you might be treated even better when it’s evident that you’re calling the shots.

In fact, it’s a badly kept secret that some of the lowest rates sourced by mortgage brokers are from top financial institutions in the country.

Fear of Hidden Costs

It might seem too good to be true, but consumers generally pay nothing to employ the services of mortgage brokers: financial institutions work with our industry because they know we’re likely to bring them qualified buyers, and they compete to pay us commissions.

When you use the services of a mortgage professional at a lending institution, you are exposed only to the rates and products of that one institution. A mortgage broker works for the buyer as opposed to the lender and has access to 40+ lenders across Canada. Why not let someone negotiate the best deal on your behalf?

Expertise and Reliability

Not all mortgage broker companies are created equal. It’s important to find a broker that you trust and is backed by a solid brand and reputation.

Having a qualified CENTUM mortgage broker working for you as a home buyer doesn’t usually cost you anything – but the advantages can save you thousands of dollars over the life of your mortgage.

It's Your Career - I'm Here to Support YOU!

Constantine Isslamow -

Mortgage Broker

CENTUM Core Fincial Inc. Brokerage License 10642

Constantine Isslamow License M08005391

Independently Owned & Operated

Friends, followers and Connections are the way of the future.

Wednesday, April 13, 2011

Canadian Mortgage Study


With historically low interest rates now rising, you may want to consider refinancing or renewing your mortgage now. This newsletter highlights four key things Canadians look for from their mortgage professionals.

Canadians speak out on what's most important to them:


Maritz Research Canada recently conducted a study of 2,000 Canadians. Part of the study focused on Canadians' specific feedback regarding how they choose their mortgage professionals and their experiences with those professionals.

The research concluded that consumers who understand mortgage broker services rated brokers very high compared to other mortgage channels. Consumers also indicated four key things which are important or very important to them when choosing a mortgage professional:

1. 97% of consumers said "The ability to offer low interest rates;" 58% indicated that mortgage brokers had better or much better rates

2. 96% of consumers said "Took time to understand my financial situation;" 46% responded that mortgage brokers were better or much better at understanding their needs; 54% said that mortgage brokers' access to a wide selection of products was better or much better

3. 95% of consumers said "Quality of customer service;" 42% indicated that mortgage broker's customer service was better or much better
4. 94% of consumers said "Mortgage industry knowledge;" 48% said that mortgage brokers were better or much better at helping them understand mortgage options.

The study results suggest that Canadian consumers who refer their family and friends to Mortgage Brokers can help them save money and get better service.

It's Your Career - I'm Here to Support YOU!

Constantine Isslamow -

Mortgage Broker

CENTUM Core Fincial Inc. Brokerage License 10642

Constantine Isslamow License M08005391

Independently Owned & Operated

Friends, followers and Connections are the way of the future.

Saturday, April 9, 2011

March 2011 Housing Starts



The seasonally adjusted annual rate of housing starts was 188,800 units in March, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 183,700 units in February 2011.

It's your career, I'm Here To Help You.

Constantine Isslamow
Broker of Record

Century 21 United Realty Inc. Brokerage
705-743-4444

www.constantineisslamow.com

constantine.isslamow@century21.ca

Thursday, April 7, 2011

Canadian Mortgages On The Rise


Several of Canada's big banks are raising most of their fixed-term mortgage rates ahead of the busy spring real estate market.

Toronto-Dominion Bank said the biggest increases will be for mortgages with terms of five to 10 years, which will all go up by 0।35 of a percentage point starting this past Tuesday.

The move was matched by Canadian Imperial Bank of Commerce.

Royal Bank of Canada its rates on mortgages for five and 10-year terms by 0.35 or a percentage point, and its seven-year rate by 0.15 of a percentage point.

The posted rate for five-year closed mortgages — one of the most popular types of loans for Canadian home owners — will rise to 5.69 per cent.

The three banks will also raise their rates on one-year, three-year and four-year terms by 0.2 of a percentage point while two-year terms go up 0.3 of a percentage point.

Fixed mortgage rates, which are closely tied to the bond market, tend to climb when traders shift investment activity to riskier equity assets from bonds, which are considered safer।

It’s Your Career – I’m Here to Support YOU!
Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.