Home
Fall 2010
& MORTGAGE
Location, location,
location: Why
it’s important
When it comes to buying a home, there’s no doubt that location is a key
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factor in your selection process. A great location can be a major contribu-
tor to your quality of life at that address.
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t also has a significant impact on trees important to you? Is it safe for kids
price — what you pay, what you’ll to play on? Some streets within a
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get when you sell, and the amount neighbourhood will be in greater de-
your lender is willing to give you as a mand for these kinds of features.
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mortgage. Take two identical homes in
different neighbourhoods — or even n Lot. The grade of the lot and direction
one street apart. The prices could vary that the house or condo unit faces are
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by tens of thousands of dollars. other key features to consider. For
The location is also one of the things example, do you want the morning sun
that you can’t change about the home, shining in the kitchen window? Check to
so it’s worth investigating carefully. see if the kitchen is facing east.
Consider these key elements:
n Unit position. If you’re buying a
n Neighbourhood. Does the area have condo, consider where the unit is situated
amenities nearby that you’re looking for, in relation to potentially noisy corridors,
such as parks, schools, or shopping? garbage chutes, elevators, and amenities.
n Neighbours. Make sure you find out Your real estate agent is a key part of
who’s living on all sides, including the your home-buying team, and he or she
back. Do you mind if you’re next to, say, will be able to guide you in choosing a
a multi-student residence? location that’s right for you. Once you’ve
found the right home, I can help you
n Street. Is the street quiet? Are mature secure the financing to make it yours.
INSIDE
2 Get your 3 Protect with 4 Give drafty
credit report yourself windows the
in order insurance cold shoulder
Need a mortgage?
Refinancing? Get your
credit report in order
Whether you’re planning to apply for a new mortgage or to refinance an existing one, it’s important to check your credit
report and make sure it’s in order. Your credit rating affects whether your financing application is approved, and it can
even affect the interest rate you’ll pay on your mortgage.
You can obtain your credit report from Canada’s two major reporting agencies, Equifax (www.equifax.ca) or
TransUnion Canada (www.transunion.ca).
Find out your credit track record
Your history of loan and credit repayments will be recorded in
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one of two ways:
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1. A payment chart for each month of the past two years,
showing whether various bill payments were made on time,
30 days late, or 60 days late or more.
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2. Or, you’ll receive a letter-number rating for each credit
item you have. The letter indicates the type of credit: instal-
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ment (“I”), open (“C”), or revolving (“R”) credit. The numeri-
cal scale from 1 to 9 indicates that you pay your bills within
30 days of the due date (“1”) or you never pay your bills and
have made a consumer debt repayment proposal (“9”). reflection of various factors, including your payment history, the
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type of credit you have, and the number of credit inquiries. The
You’ll also receive a simple credit score, also known as a higher your score, the lower the risk for the lender.
FICO® score, this figure, between 300 and 900, is an overall
What to look for
You’ll want to look for inaccuracies that
How to improve
should be corrected, as well as areas where
you could improve in future.
Make sure that all your account and
your credit rating
personal information is correct and that you
authorized all credit inquiries that are listed.
Unrecognized accounts or credit inquiries
could indicate that you’ve been a victim of
n DO use credit. You’ll build a credit history. fraud.
For more information about credit reports,
n DO pay your credit card bills in full. If you can’t, pay at least the minimum including samples, visit the Financial Con-
amount by the due date. sumer Agency of Canada at www.fcac-acfc.
gc.ca > Search > Credit Report Score.
n DON’T apply for new credit while applying for a mortgage. To avoid the
appearance of overextending your credit, don’t make further credit applications at
I’m here to help
this time – either before your mortgage application goes in or before closing. Any
I can explain various items in your credit
credit inquiries from businesses will show up on your credit report immediately.
report. If you’re concerned about your credit
n DO keep balances low. If you have to run a balance, try to keep well below history and your ability to obtain financing,
the maximum limit. I can offer suggestions that could help you
improve your credit score. My clientele
n DO correct errors. Contact the credit reporting agency to revise inaccurate includes many happy homeowners with a
information. wide range of credit histories.
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Protect yourself and your
investment with insurance
Homeownership brings a variety of new responsibilities, and among them is protection for your investment:
insurance. Each of the following types of insurance protects you in a different way.
Homeowner insurance
Also known as property insurance, this provides
the replacement cost of your house in case of
damage or destruction — for example, from a fire.
You must provide proof to your lender that you
have purchased property insurance coverage that
begins the day you take possession, or you may
not get possession.
Homeowner insurance also covers the contents
of your home and provides liability protection if
someone is injured on your property.
How to save: You may get a discount if you buy
property and auto insurance from the same
company. Increasing your deductible also helps
keep premiums down. Shop around, comparing
quotations carefully to check the terms of
the coverage.
Mortgage life insurance
This optional insurance would cover the balance
of the mortgage in the event that something
should happen to you or your spouse. It protects
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your family — and, most notably, your lender, who
gets the money. Mortgage insurance
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How to save: Rates can vary, so talk to your lender. Mort- If your down payment is less than 20% of the purchase price,
gage life insurance isn’t mandatory; if you have life insurance, you are required to purchase mortgage insurance (also called
you may already have appropriate protection. mortgage loan or mortgage default insurance), to protect the
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lender in case you default.
Title insurance How to save: Try to have as large a down payment as
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Your lawyer may recommend that you purchase title insur- possible. This will keep the premium lower. You may qualify
ance, which provides coverage in the case of risks such as for a discount if you’re buying an energy-efficient home or
easements, zoning non-compliance, or fraud. making energy-saving renovations.
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How to save: Title insurance is a one-time cost and relatively I can make your home-buying experience easier by arrang-
inexpensive, but do compare rates. ing mortgage insurance if you need it.
Mortgage AB C s Helping you be an educated homeowner
Agent Broker Dual agency
The real estate salesperson who A person or company, working A situation in which the same
represents the buyer or the seller alone or employing real estate broker (or salespeople employed
of a property. salespeople, with a real estate by the same brokerage) represents
license that allows administration both the seller and the buyer.
of trust accounts.
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Fall Almanac
Give drafty windows
the cold shoulder
It’s not too late to replace drafty or broken windows before the cold weather
hits. This quick guide can help you navigate the many options now available.
Frames
n PVC is durable, energy-efficient, low
window frames are energy-efficient,
durable, and resist corrosion. Prepare to
be floored
maintenance, and the most cost-effective.
Panes
n Wood is a natural insulator, can be For energy efficiency, choose low-E
painted or stained, and is resistant to coating, double- or triple-pane glass, Great flooring makes a great impres-
temperature extremes and less prone to and argon or krypton gas-filled panes. sion. If you’re choosing wood flooring
condensation; however, it requires plenty for your house or condo, these are
of maintenance and is more costly. Efficiency and air flow
Double-hung windows (so-called the major types and what you should
n Clad PVC or because they have two frames that either know about them:
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wood give you slide up and down or side to side) allow
n Laminate. The most cost-effective
colour choices for the best control of air movement and are
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your home’s interior easy to clean because they lift out. Fixed option, laminates are usually made of
and the durability of windows typically produce the greatest melamine and fibreboard. The material
metal on the energy savings, but they don’t open. is light and mimics the appearance of
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exterior. Single-hung and casement (which open domestic or exotic woods. Stain- and
on a hinge like a door) windows are the moisture-resistant, laminates may
n Fibreglass is
least energy efficient. be a good choice for basements and
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expensive, but these bathrooms. However, they can’t be
sanded or refinished.
Winter warm-up time
n Engineered. This flooring is formed
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with a thin but tough sheet of hardwood
laminated onto sheets of plywood or
Stay warm this winter by making sure your heating fibreboard. The layers are stacked in
system is working at peak performance: opposite directions for greater stability,
Engineered wood can be sanded, but not
n Forced air system. Consider professional duct cleaning if you’ve just moved in,
as often as hardwood.
done renovations, or have pets. Otherwise, just remove grills and vacuum inside
ducts yourself. n Hardwood. The most expensive option,
hardwood is also the longest lasting. It
n Furnace. Inspect a gas furnace every other year, either yourself or by hiring a qualified
can be stained any colour and sanded
service company. Disconnect the power and examine the fan belt for wear, looseness, or and refinished numerous times to extend
noise, and clean fan blades to remove dirt buildup. Inspect an oil furnace every year. longevity and beauty. Hardwood is the
n Electric baseboard heaters. Thoroughly vacuum dust from heaters in each room. only flooring milled from solid lumber.
As a result, it’s not suitable for damp
n Water radiators. Bleed air from each radiator. environments.
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