Ben Officer-REALTOR®

The Edmonton real estate and St Albert real estate markets have been doing better than expected over the past year. Now, I am definitely not an alarmist. I always try to present information to Buyers and Sellers as objectively as possible.

I have been seeing a trend of possible Sellers that say they will wait until the Spring to put their homes on the market. Entirely their choice.

Now, I tell Sellers (and Buyers too) that the only true known factors are what is happening right now. The future is always uncertain. I recommend that folks make their decisions on known's not unknown’s.

I have twelve reasons why this is might particularly relevant:

1. Interest rates might go up    (This means less buyers that qualify to buy and higher costs)

2. House might be worth less   (House prices may go down next year)

3. New home might cost more   (If buying a new home then costs may increase prices)

4. Law of supply and demand    (Lots more homes on the market means more competition and possibly lower selling price)

5. Repair and lose money    (Why not put that new furnace in a home you will be living in for years to come)

6. Tax change    (What if they bring in the Land Transfer Tax?)

7. Political change    (Uncertain government changes may affect the market)

8. Cost of marketing    (Cost of advertising, gasoline etc.., increase costs to sell)

9. Loss of opportunity time    (Make your move when you have the time)

10. Double house payment   (Say it takes a while to sell, you leave it vacant, and you move to a new home…. this can be expensive)

11. Lost in the shuffle    (A big increase in Spring home listings means you have lots of other homes to compete with)

12. Job stability     (You know what your employment position is now. If you are looking to change your mortgage then your employment stability has a direct effect on your qualification)

Not all of these factors may affect the housing market and they may affect it in ways that are different than I have suggested.

I am definitely not trying to urge anyone make a choice that they shouldn’t make. If you are considering waiting until next Spring to list your home, then take a good look at these factors and weigh how they may come into play in the future.

If you have any questions or comments, please feel free to contact me. I’m here to work with you.

Ben Officer, CD   REALTOR®

RE/MAX Real Estate

This evening I was at a presentation in Edmonton by Patricia Croft, who is the Chief Economist for
RBC (Royal Bank of Canada) Global Asset Management.

She had a quite positive outlook and she was quite upbeat, but she did sound several notes of caution. She questions whether the recovery is completely sustainable and it might not stand up to all the negative factors.

She did say “Canada is in one of the best positions of all the developed nations”. The stimulus money was needed but the road back is going to be a bit of a rough one.

She noted oil and copper prices are up, plus interest rates are not likely to increase much until 2011, and then it will be to fight inflation and/or support the Canadian Dollar if it goes too high.

Globally, which country is in the most dire straits? Japan. They are in a difficult situation and will be for a while to come.

The economy to watch?   China.  They are looking to be the up and coming powerhouse.

What about real estate?  Well, in the US housing prices dropped about 30% and are recovering slowly. The US Government will probably keep their incentives for 1st time buyers and expand it to some home-owners.

Canada has done surprisingly well but the prediction is for only a 1 to 3 % increase in prices for the next year.

What are some of the Risks to the recovery from the Recession?

a) governments might make policy mistakes

b) another credit crisis (so save some money and Buy Canadian when you can)

c) Chinese economy may stumble

d) Inflation and taxes

e) Protectionism

f) Geopolitics

g) weak US Dollar

So, there are many factors that will affect the recovery, but Canada is the envy of many different countries. If you are looking to purchase a 2nd home in the US, you probably need not rush. They will be slow to recover.

Ben Officer, CD

RE/MAX Real Estate

This is not a real estate blog post to-day, but a real-life blog post. Please bear with me.

To-day I saw several people on TV had already started wearing poppies. I usually start wearing a poppy on Nov 1st, but I think your free to wear it when you feel you should.

What does Remembrance Day mean to you? Do you attend a Remembrance Day ceremony in your area?

With the Afghanistan conflict taking the headlines, it can be easily dismissed as supporting the war or supporting Bush’s/Obama’s quest for oil……

Not too me. It means that many, many men and women sacrificed (and are still sacrificing) their personal freedoms and too often their lives for the common good of all. I have lost a couple friends in Afghanistan.

During my service career I have visited the Canadian War Graves Cemetery outside the town of Dieppe and the Allied War Graves Cemetery in Ramleh, outside Tel Aviv Israel.

To see the rows and rows of crosses, to read the names of common Joes who put their lives on hold to go and fight somewhere far from home….never to return.

I go to commemorate the Living and the Dead.

Please leave the politics and pettiness aside, so you can think of those that fought and are fighting to keep our way of life.

Lest We Forget.

Ben Officer, CD   REALTOR®

RE/MAX Real Estate

The amount of electricity we use, when we use it, and suggestions on how to save electricity. To me that is good information to know.

Google is teaming up with electricity providers, usage monitoring device manufacturers, and home-owners to set-up a usage monitoring system to help save energy.

You will be able to access the data from your personal computer so you can learn about your power-usage habits and ways to help reduce the amount of electricity you use.

The site says they have trials in several countries, Canada included. Lets hope it will come to Edmonton and surrounding areas.

Saving electricity and the environment. Great on both accounts.

Here is the link to Google PowerMeter webpage:   http://www.google.org/powermeter/

Ben Officer, CD  REALTOR®

RE/MAX Real Estate

I sometimes have Buyer clients looking at Edmonton real estate listings and St Albert real estate listings, ask “what about private sales?”

I say, “good question.”  Let’s talk about them for a second.

I believe that anyone is free to sell their car, bicycle, boat, and yes even their home on their own. We live in a free country.

Now, do I think it’s the best way to sell your home? No. And for a few reasons. I won’t go into great depth here because I already have a page on this website about For Sale by Owners and why they should use a REALTOR® such as myself to sell their home.

In regards to buyers, For Sale by Owners are more difficult for me to show.

I try to show each pre-approved buyer a selection of homes, so they can choose the home that they want. With homes on the MLS® this is quite easy.

I contact the listing REALTOR® to set-up an appointment but the seller will not have to be home when we go through. This is because we have an electronic key container system to hold the keys and get access to the home. I can show a series of homes to a buyer with ease.

Now, I will show the buyer a For Sale by Owner but I have to make an appointment that is convenient to the seller because they have to be home to let us in. Plus, Buyers might be nervous when a home-owner is there because they are looking in the closets with the owner there.

Either way a seller decides, it’s their home to sell. It’s just that I believe there are many pluses to having a hard-working, caring REALTOR® like myself work with you to get your home SOLD.

Organized real estate has been around for 150+ years, so it must be doing something right.

Call me to get me working for you!

Ben Officer, CD   REALTOR®

RE/MAX Real Estate

The Canadian Real Estate Association just released its quarterly update on Canadian Housing Market activity. 

Generally, markets have been surprisingly strong across the country. The Calgary real estate market has been hotter than the Edmonton real estate market, but that’s often a good sign. Edmonton’s real estate market seems to run about 3 to 6 months behind Calgary’s market, from my experience.

You can find the complete CREA news release at: http://creastats.crea.ca/natl/

Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

As a home-owner, or prospective home-owner you have a lot of information to sort through. One item is the Real Property Report (RPR). It can also be called the Survey.

The Alberta Land Surveyors’ Association defines it as: “A Real Property Report is a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries.” When you are purchasing or selling a home or bareland condo you need to understand what an RPR is and how it can affect the transaction.

Basically, its a report on the location of any structures, decks, sheds, and land locations of your property. Once the report is completed by a survey company, it is sent to the city or county to make sure all of the information complies with their regulations. A current RPR is normally required in most cases for the sale of a home.

When you are looking to purchase or sell a home it’s important to talk to your REALTOR® early about the RPR, so you get advice on how to handle the situation and who to consult with further, to ensure a smooth purchase or sale. We have the experience to handle issues like the RPR.

You can find out more from the brochure at the Alberta Land Surveyors’ Association website at: http://www.alsa.ab.ca/uploads/files/PDF/ALSARPRBrochure.pdf

Ben Officer, CD   REALTOR®

RE/MAX Real Estate (Edmonton)

Cities such as Edmonton, St Albert, and Sherwood Park are set to begin planning for higher housing density to help prevent urban sprawl. In addition to reducing sprawl, this will make transit systems more affordable and make areas more accessible for walking to amenities.

The idea of increasing the housing density makes economic sense for transit planning, land preservation, and property taxes although it also causes issues with the segment of the population that wants to live in a city but not feel like they live on top of their neighbours.

The planned housing density will be 30 to 45 housing units on a residential hectare. St Albert says it has a density average of about 18, with it's Sturgeon sub-division having the lowest density of approximately 13.5 units per hectare.

The City of St Albert has a section on it's webpage about the proposed “Smart Growth” plan and its basis. You can find it at:

http://www.stalbert.ca/uploads/files/Smart%20Growth/Weekly_Bulletins/July%2023-09%20Bulletin%202%20-%20Capital%20Region%20Land%20use.pdf

The other question I have is how will these density targets affect infill developments in Edmonton, St Albert, and Sherwood Park. Existing neighbourhoods could be dramatically affected by these developments.

Now, for those considering Edmonton real estate or St Albert real estate purchases, older established neighbourhoods may have some extra draw due to their lower housing densities. Its truly a choice to be made, weighing all your options.

Ben Officer   REALTOR®

RE/MAX Real Estate (Edmonton)

The recent StatsCan report about how New Housing Prices in the markets such as the Edmonton real estate market have dropped by up to 11.4%, which is actually not really surprising given a number of factors.

During my reading of various sources, opinions, and from my experience it happens that resale homes are bought and sold faster at this time in large cities like Edmonton

(and by association St Albert) by quite a few first-time or move-up buyers purchasing lower priced, older homes. This pushes up the prices. Also, this is coupled with the fact that new home builders have been reducing their prices to get some of their inventory moving. This is normal during the recovery from a recession.

Location is a factor too, because buyers like to buy within more of the core (not necessarily downtown) in cities like Edmonton, before looking in the outer areas for the New Homes. Gas for the car or truck is not going to be this cheap for ever, so if you have a long commute you might like to buy closer to work.

As the number of resale homes is depleted and builders start to build more new homes again, this segment should begin picking-up.

Ben Officer

REALTOR®

RE/MAX Real Estate (Edmonton)

Yesterday Statistics Canada released the latest New Housing Price Index. Most areas of Western Canada showed a decline in prices over past 12 months. Edmonton real estate showed the largest decrease in New Home prices at –11.4 %.

Here is the Statscan report.

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New Housing Price Index

August 2009 

Contractors' selling prices increased 0.1% in August following a 0.3% advance in July.

Between July and August, prices increased the most in St. John's (+1.1%) followed by Québec (+0.9%) and Regina (+0.8%).

In St. John's, some builders adjusted prices upward to be more in line with the value of land within the city.

In Québec, prices continued to increase as builders reported higher material and labour costs. Builders moving to new phases of development also raised their prices as the scarcity of available lots has been pushing up land value in this region.

The largest monthly decrease in new housing prices was recorded in Hamilton (-0.5%). Some builders lowered their prices to encourage sales while others offered bonus upgrade packages.

Monthly declines were also observed in Windsor (-0.4%) and Edmonton (-0.3%).

12-month change: Continued declines in the New Housing Price Index in Western Canada

Year over year, the New Housing Price Index was down 3.1%. The largest declines remained in Western Canada, where prices decreased from highs registered in late 2007 and the beginning of 2008.

In the Prairie region, 12-month declines were recorded in Edmonton (-11.4%), Saskatoon (-7.6%) and Calgary (-6.3%).

On the West Coast, Victoria (-10.0%) and Vancouver (-7.8%) also posted year-over-year declines.

Over the past few months, some builders in Alberta and British Columbia have offered lower prices, bonuses and incentives to motivate sales in the face of weaker market conditions.

Among surveyed cities, the largest year-over-year increase was registered in St. John's (+7.5%). This was the 10th consecutive month that this city has led the way in year-over-year advances.

On a year-over-year basis, prices in Québec (+6.3%) and in Saint John, Fredericton and Moncton (+2.2%) increased, albeit at a slower pace than in previous months.

Compared with August 2008, contractors' selling prices were 1.8% higher in Regina. Charlottetown (+1.7%) and Winnipeg (+1.6%) also posted increases.

You can find the complete article at the Statistics Canada website at:http://www.statcan.gc.ca/daily-quotidien/091013/dq091013a-eng.htm

Ben Officer, CD  REALTOR®

RE/MAX Real Estate (Edmonton)

The lack of infill guidelines is not an issue with a proposed development in Akinsdale, says some on the St Albert City Council.

(According to the latest Wikipedia entry, Infill is "the use of land within a built-up area for further construction, especially as part of a community redevelopment or growth management program or as part of smart growth. It focuses on the the reuse and repositioning of obsolete or underutilized buildings and sites.")

I believe Infill Guidelines are important for St Albert real estate developments so that they are done right the first time. If you are living in the neighbourhood or next to the property, you want the process to be fair and inclusive. In the case of the Akinsdale project, this is a decision for the St Albert City Council in consultation with the area home-owners.

Here is the article:

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Infill guidelines not needed for Akinsdale decision — councilors

By Cory Hare
Staff Writer

Some members of city council are willing to vote on a proposed new condominium complex in Akinsdale despite the absence of medium density infill guidelines that are in development.
City administration is working on guidelines aimed at smoothing out potential conflicts arising from new multi-family developments being proposed for established neighbourhoods. But according to planning and development director Curtis Cundy, the guidelines won’t be ready before mid-2010. Meanwhile, the Akinsdale project, a partnership between Habitat For Humanity and a private developer, is likely to come before council in January.

Coun. Lorie Garritty will be prepared to go ahead with a decision at that time.

"There is a process in place," he said. "It’s not like we’re flying blind here."
The project developers held their first open house Oct. 1. There will be another open house before the developers submit an application to the city, which will lead to a public hearing before council.
In late 2007 Garritty was the first to voice a desire to halt medium-density infill projects until the city drafted appropriate guidelines. Council made a formal request to administration in September 2008. The guidelines were to come out in the second quarter of 2009 but additional work on the Smart Growth plan has put the initiative on the back burner, Cundy said.

While awaiting the guidelines, city council has ruled on other infill projects, such as Time Developments’ complex on Sturgeon Road, Garritty noted, so there’s no reason to delay a decision on the Akinsdale project.
Councillors Len Bracko and Gareth Jones agreed.

"If the information that comes into us is positive then I don’t see any reason why we’d have to wait until the middle of next year," Jones said.
Mayor Nolan Crouse is out of town and other councillors did not return requests for an interview.
Garritty’s original suggestion of infill guidelines followed city council’s turning down a controversial project on Mission Avenue.

In researching the guidelines, city administration was to look at demographic trends in established neighbourhoods, from population to changes in household size. It was also to analyze medium-density infill in terms of demand, impacts and potential locations.

Favourable project

The Akinsdale project is a partnership between Habitat For Humanity, an Edmonton charity, and Apollo Developments. It would see 63 condo units built at 70 Arlington Drive, a surplus school site that the Protestant school board is trying to sell to Habitat.

City council has committed to providing the $840,000 sale price if it approves of the project.
The three councillors who spoke to the Gazette each gave favourable reviews of the Habitat concept.
"I think it’s a great project. I think it’s ideal," Jones said.

The open house drew resident fears of reduced property values and increased traffic, noise and vandalism.
"Those are the usual comments made from not knowing what the project is really about," Jones said, noting that Habitat offers home ownership and not rental units.

One concern of residents is that the Akinsdale concept would see as many as 48 of the 63 units sold on the open market, independent of the screening process used by Habitat. However, the condominium association rules would require the units to be owner-occupied, said Apollo Developments president Andy Banack.

"From what we know so far, I feel positive about it but until we get all the information in, I reserve my final decision," Jones said.

City council is looking to increase density wherever it can, said Bracko. The Capital Region Board is developing guidelines that will almost certainly call for much greater density in the area occupied by St. Albert, Edmonton and Sherwood Park, he said, and the Akinsdale project is an opportunity for St. Albert to move in the right direction.

"Habitat does an excellent job. Their complexes usually enhance a neighbourhood," Bracko said. "Until I get all the information and it comes before council, I always keep an open mind but … we do need more affordable housing."

While maintaining he was remaining true to the public consultation process, Garritty was also positive about the project.

"I’m completely supportive of Habitat For Humanity, completely supportive of trying to get affordable housing in St. Albert," he said.

chare@stalbert.greatwest.ca

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You can also find the article at the St Albert Gazette website: http://www.stalbertgazette.com

Ben Officer, CD  REALTOR®

RE/MAX Real Estate

This is a question with many different answers. I am asked this question and I feel it really depends on your situation and outlook.

It’s funny I haven’t blogged about this before. My website http://RightHouseRightTime.com is sort of an off-shoot of this idea.

My personal story of first home-ownership begins when I was in the Canadian Forces back in the early 90s. My wife and I were living in a PMQ (Rented Private Married Quarters) on the base in Calgary. One of the Sergeants was retiring after about 24 years service and he stopped me in the hallway.

He said “Ben, Buy a house!”. I said “Why"?” He said ”I’m retiring out of the military and I’ve lived in rented military housing all my career. Now I have to buy my first house and I realize I should have done this many years ago”.

Well, didn’t that get me thinking. My wife and I started saving for a down-payment. Within a year we bought a little 2-storey home. We were posted to different locations after that, but we were on our way.

My story is not much different from many others and it just shows you that one little event can change your attitude. Whatever the reason, when you do decide that you want to buy your first home or condo, do some serious planning.

I suggest that you:

1. Talk to Mortgage Broker or Mortgage Specialist (at a bank etc…) to find out what you need to get pre-approved for a mortgage and how much to save for a down payment plus closing costs.

2. Talk to a REALTOR® to find out what is available in your price-range that fits your wants and needs. Then, use that Real Estate Agent’s skills and knowledge to help you get into your first home.

Please feel free to call or email me with any questions or to provide you with friendly service.

Ben Officer, CD  REALTOR®

RE/MAX Real Estate (Edmonton)

I received this email from a Krista Rumberg - Mortgage Broker yesterday.  I wanted to let everyone know what might happen soon with Mortgage Rates.

Ben Officer, CD REALTOR®

RE/MAX Real Estate (Edmonton)

This is the email:

------------------

From: Krista Rumberg

Please note the article below.

Bond yields went up today so it is very likely that we will see a major increase in fixed interest rates. (RBC has already increased their rates)

If you have clients sitting on the fence get them pre approved for a rate hold TODAY!!!

Rate sheet attached

Krista Rumberg

Mortgage Specialist           

Integrity First Mortgage Solutions  

Office:  780.946.6222            

Cell:     780.983.9119

Fax:      780.946.7758

e-mail: Krista@MortgageSimple.ca

www.MortgageSimple.ca

Good Afternoon,

Here is a update on Bond Yields and Spreads:

Bond yields spiked today due to the economic news.  The positive employment report this morning (refer to my article below "Canada's unemployment rate falls to 8.4%, first decline since recession") was the big driver.  People are selling off GOC bonds believing the BOC may be forced to raise rates earlier than expected. Even though the day isn’t over, as of 2pm EST, the bond yield is up to 2.86%.  That is a jump of 22 BPS today and 44 BPS in the last two days. 

The Spread is down to 1.13% based on that update (final numbers will be as of 5pm EST).  RBC has already raised their 4 & 5 year rates by 35 BPS and this is on the heels of the rate increases in Australia.  Are we in for rate increases?  Sure looks that way. 

Here are links to Canadian Mortgage Trends and Bloomberg that show the same data: http://www.canadianmortgagetrends.com/

http://www.bloomberg.com/apps/quote?ticker=GCAN5YR%3AIND

I think it would be a smart idea to look at those who are deciding on whether to buy or not and lock into a mortgage very soon!  Brace yourselves ... looks like things may change!

Transmitted by CNW Group on : October 9, 2009 13:43

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RBC Royal Bank changes residential mortgage rates

TORONTO, Oct. 9 /CNW/ - RBC Royal Bank announced today that it is increasing its residential mortgage rates effective October 10, 2009.

    The changes are as follows:

    Fixed Rate Mortgages

    Six-month open                  6.45 per cent     (increase by 0.10 per cent)

    Six-month convertible       4.65 per cent     (increase by 0.10 per cent)

    One-year open                   6.45 per cent     (increase by 0.10 per cent)

    One-year closed                3.80 per cent     (increase by 0.10 per cent)

    Two-year closed                3.95 per cent     (increase by 0.10 per cent)

    Three-year closed             4.45 per cent     (increase by 0.10 per cent)

Four-year closed                5.29 per cent     (increase by 0.35 per cent)

    Five-year closed               5.84 per cent     (increase by 0.35 per cent)

    Seven-year closed           6.80 per cent     (increase by 0.20 per cent)

    Ten-year closed                6.95 per cent     (increase by 0.20 per cent)

    Variable Rate Mortgages

    Variable Closed                RBC Prime + 0.00% (no change)

    Special Fixed Rate Offers*

    ----------------------------

    Six-month convertible       4.15 per cent     (increase by 0.10 per cent)

    Four-year closed               4.24 per cent     (increase by 0.35 per cent)

    Five-year closed                4.54 per cent     (increase by 0.35 per cent)

    Seven-year closed           5.35 per cent     (increase by 0.20 per cent)

    * The rates indicated are special discounted rates and are not the

        posted rates of Royal Bank of Canada. To calculate a rate discount

        compare the Special Offer rate against the posted rate for the

        applicable term.

        Special Offers may be changed, withdrawn or extended at any time,

        without notice. Not available in combination with any other rate

        discounts, offers or promotions.

Krista Rumberg

Mortgage Specialist           

Integrity First Mortgage Solutions  

Office: 780.946.6222            

Cell:     780.983.9119

Fax:    780.946.7758

e-mail: Krista@MortgageSimple.ca

www.MortgageSimple.ca

I have been asked this question many times and I will discuss a bit of it here.

Possession Day is the day you are supposed to take possession of your new home. Several things have to happen before that can occur.

The Buyer’s Lawyer has to have all the documents completed and all the funds gathered together (Mortgage, Down Payment, etc…) to pay for the home or condo. Sometime between about 9 A.M. and 4 P.M. the Buyer’s Lawyer will send the money to the Seller’s Lawyer.

Once the Seller’s Lawyer verifies that all the funds and paperwork are correct, then they notify the Seller’s REALTOR® to release the keys to the Buyer and their REALTOR®.

Now, if there are problems with the funds or other issues with the paperwork, then Possession can be delayed. There are times when the Buyer might not take Possession of the residence, but might go in under Tenancy-At-Will. This is negotiated between the lawyers, and then the Buyer is paying rent to the Seller until everything is correct, and normal Possession is achieved.

I will stress, please do not book your movers to move-in to your new home on Possession Day. If there are issues and Possession is delayed, then you will have more than one headache. The movers will charge you a substantial fee to sit outside your home waiting for the keys to be released.

Please contact me if you any comments or questions.

Ben Officer, CD  REALTOR®

RE/MAX Real Estate (Edmonton)

The St Albert housing market has been busy, with 65 detached homes Sold in September. This is higher than the 56 homes Sold in August of this year.

Here are three charts comparing the number of Sales and Average Sale Prices for 2009, 2008, and 2007.

This is the St Albert Sales Chart for August and September, 2009.

This was the St Albert Sales Chart for August and September, 2008.

This was the St Albert Sales Chart for August and September, 2007. 

The St Albert housing market continues to be an active market.  Prices have softened from the

2007 levels, but they continue to show signs of resurgence.

Ben Officer, CD REALTOR®

RE/MAX Real Estate

----------------------------------------

(The above stats are courtesy of Ben Officer/RightHouseRightTime.com from info provided

by the REALTORS® Ass’n of Edmonton)

The Edmonton, St Albert, and area real estate market has been steadily moving along in September.

The average price of a single family home increased by about $5000 and condominiums increased by about $3000.

This defies the expectation that condo prices should be going down with the increased number of available units.

I think the market has been doing better than a lot of people thought it would.

Here is the chart comparing the months average prices, so far for 2009.

I also found this article in the Edmonton Journal that would be a good read to.

Its at: http://www.edmontonjournal.com/business/Resale+housing+still+rebound/1999300/story.html

Ben Officer, CD  REALTOR®

RE/MAX Real Estate

I’ve been asked on numerous occasions whether it’s worth-while to buy real estate for a rental property (house or condo), and be a landlord. Maybe you just rent out a room or your basement to help pay the mortgage?

Either way, I found this article from the Globe and Mail that takes a look at that question.

http://www.theglobeandmail.com/globe-investor/personal-finance/becoming-a-landlord-more-trouble-than-its-worth/article1312269/

Ben Officer, CD  REALTOR®

RE/MAX Real Estate

As a REALTOR®, I sometimes get to work with first-time home-buyers. They are often a great pleasure to help because they are making a conscious decision to get into the Edmonton real estate, St Albert real estate, or area real estate market. They are making a long-term choice to purchase a home to own, and to take care of and decorate as they choose.

A mortgage pre-approval is a must before I take them out to see a selection of homes. What some of them don’t realize is that your credit report will have a direct bearing on your ability to be qualified for a mortgage.

Sometimes in the past, I have seen the financing for a buyer fall apart because, upon a deeper check of their credit history, the lender refused to authorize the mortgage.

What can you do to prevent this?

1. Keep track of your credit history

There are essentially two credit reporting agencies in Canada:  Equifax and Transunion. If you go to their websites you can find out how to order your credit history report for free. You can usually do this twice a year.

If you have some blemishes on your history (late payments, over due accounts), you can work towards improving your credit history.

2. Be careful of “Shopping” for credit

If you go looking at buying a new vehicle, for example, you might be asked to fill out a form before taking the car or truck for test-drive. Be wary! Ask them if they are doing a credit check. If they are, you probably should tell them “NO”. 

The way I’m told (and have seen for myself) it works, is that every time your credit is checked, it counts against your credit score. They discourage having your credit checked too often. (Checking your own credit history twice a year shouldn’t count against you)

What can you do?

If you go looking for a mortgage, I often recommend using a Mortgage Broker. They will check your credit history once, and then they shop it around to a variety of mortgage lenders who can offer you a mortgage. This prevents unnecessary credit checks.

If this doesn’t suit you, then just be aware that if you shop around, be vigilant on who checks your credit history. If in doubt, always ask if or when, they will be checking your credit history.

I recommend talking to your Mortgage Broker,  financial advisor, and/or reading the info provided at the Equifax/Transunion websites. As they say…”Knowledge is power.”

Ben Officer, CD   REALTOR®

RE/MAX Real Estate

The CBC reports that the International Monetary Fund has increased its expectation for the Canadian economy to grow by 2.1% in 2010. This is good news for Canadians, with greater prospects for the unemployed and those struggling in the down economy.

How does this translate to real estate? The market should pick-up with more people able to purchase a home, although interest rates will almost inevitably rise to keep inflation in check.

You can read the article on CBC.ca at: http://www.cbc.ca/money/story/2009/10/01/imf-eceonomic-outlook.html

  Have a great day!

                       Ben Officer, CD   REALTOR®