If you are thinking of selling your home or remortgaging be aware that some banks are charging huge penalties.
Some lenders are charging mortgage prepayment penalties in the $10,000-$20,000 range.
Interest rates have dropped precipitously in recent months. Most lenders will charge a penalty that is the greater of 1) three months mortgage interest, and 2) an interest rate differential calculation. (Remember banks never lose money!)
If you are thinking of selling, call your bank and determine your penalty. I would suggest you ask for that in writing as any Realtor listing your home will want to be sure you have that information. A Realtor can not get this information for you as privacy laws forbid obtaining someone else mortgage information.
Friday, April 24, 2009
Thursday, April 16, 2009
Peterborough MLS President's Report on Sales March 2009
Barbara Criegern, the president of the Peterborough & Kawarthas Association of Realtors says: "The number of March 2009 sales show a decrease compared to March 2008. 178 sales were reported in March 2009 compared to 232 reported in March 2008.
There were 623 new listings in March 09, compared to 619 in March 08. At the close of March there were 2071 active MLS listings compared to 1850 in March 08."
The president also states: "That while sales are down slightly from last year, Peterborough still has a relatively stable real estate market. In fact sales are up 30% from February. Incentives offered to 1st time Buyers include a land transfer rebate of up to $2000., the ability to borrow $25,000 from your RRSP and renovation tax credits from the Federal government and historically low interest rates. There are many reasons to buy in the currant economic climate.
We Are anticipating improved sales activity throughout the spring market. . .and beyond
There were 623 new listings in March 09, compared to 619 in March 08. At the close of March there were 2071 active MLS listings compared to 1850 in March 08."
The president also states: "That while sales are down slightly from last year, Peterborough still has a relatively stable real estate market. In fact sales are up 30% from February. Incentives offered to 1st time Buyers include a land transfer rebate of up to $2000., the ability to borrow $25,000 from your RRSP and renovation tax credits from the Federal government and historically low interest rates. There are many reasons to buy in the currant economic climate.
We Are anticipating improved sales activity throughout the spring market. . .and beyond
Thursday, April 9, 2009
OREA News & Queens Park Updates April 2009
CMHC Launches Campaign to Help Homeowners
The Canada Mortgage and Housing Corporation (CMHC) launched a consumer outreach campaign to help borrowers understand the importance of working with lenders to find manageable solutions if they are facing financial difficulties in repaying their mortgage loans.
The campaign includes consumer information on the options available to homeowners who may be having difficulty meeting their mortgage payments. This information is also being provided to government partners and credit counseling organizations.
For more information on the campaign click
http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-03-26-0800.cfm
The Green Energy Act Referred to Committee
Bill 150, the Green Energy Act, 2009 and its requirement for mandatory home energy audits on the sale or lease of residential buildings has passed Second Reading in the Ontario Legislature and has been referred to the Standing Committee on General Government for further review. The Committee will hold public hearings on the Bill April 6, 8, 20 and 22 in Toronto and in London, Ottawa, and Sault Ste. Marie the week of April 13, 2009.
OREA will appear before the Committee on April 22nd to voice REALTOR® opposition to section
2(1) of Bill 150 requiring mandatory home energy audits on residential properties.
OREA is also working with the Sault St. Marie Real Estate Board, the London & St. Thomas Association of REALTORS® and the Ottawa Real Estate Board to ensure that when the Committee holds hearings on Bill 150 in their communities, local boards are prepared to voice REALTORS®’ opposition to the damaging effects of mandatory home energy audits.
In addition, senior officials of OREA and the Toronto Real Estate Board recently met with George Smitherman, the Minister of Energy and Infrastructure, to express REALTORS®’ opposition to mandatory home energy audits. In the meeting, the Minister indicated that he plans to go forward with the concept of mandatory home energy audits. However, the Minister did offer to work with organized real estate to make sure mandatory energy audits were implemented in a practical manor.
REALTORS® explained to the Minister that we respectfully disagreed and would take all action necessary to defeat the proposal.
In the coming weeks OREA will be issuing a ‘Call for Action’ on the issue of mandatory home energy audits in the Green Energy Act to continue to inform MPPs that mandatory home energy audits are bad for homeowners and bad for real estate.
The Canada Mortgage and Housing Corporation (CMHC) launched a consumer outreach campaign to help borrowers understand the importance of working with lenders to find manageable solutions if they are facing financial difficulties in repaying their mortgage loans.
The campaign includes consumer information on the options available to homeowners who may be having difficulty meeting their mortgage payments. This information is also being provided to government partners and credit counseling organizations.
For more information on the campaign click
http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-03-26-0800.cfm
The Green Energy Act Referred to Committee
Bill 150, the Green Energy Act, 2009 and its requirement for mandatory home energy audits on the sale or lease of residential buildings has passed Second Reading in the Ontario Legislature and has been referred to the Standing Committee on General Government for further review. The Committee will hold public hearings on the Bill April 6, 8, 20 and 22 in Toronto and in London, Ottawa, and Sault Ste. Marie the week of April 13, 2009.
OREA will appear before the Committee on April 22nd to voice REALTOR® opposition to section
2(1) of Bill 150 requiring mandatory home energy audits on residential properties.
OREA is also working with the Sault St. Marie Real Estate Board, the London & St. Thomas Association of REALTORS® and the Ottawa Real Estate Board to ensure that when the Committee holds hearings on Bill 150 in their communities, local boards are prepared to voice REALTORS®’ opposition to the damaging effects of mandatory home energy audits.
In addition, senior officials of OREA and the Toronto Real Estate Board recently met with George Smitherman, the Minister of Energy and Infrastructure, to express REALTORS®’ opposition to mandatory home energy audits. In the meeting, the Minister indicated that he plans to go forward with the concept of mandatory home energy audits. However, the Minister did offer to work with organized real estate to make sure mandatory energy audits were implemented in a practical manor.
REALTORS® explained to the Minister that we respectfully disagreed and would take all action necessary to defeat the proposal.
In the coming weeks OREA will be issuing a ‘Call for Action’ on the issue of mandatory home energy audits in the Green Energy Act to continue to inform MPPs that mandatory home energy audits are bad for homeowners and bad for real estate.
Saturday, April 4, 2009
Manditory Home Energy Audit
The Ontario Real Estate Association (OREA) supports the government’s Home Energy Audit Rebate Program that encourages homeowners to voluntarily assess the energy efficiency of their home. Like all responsible Ontarians, REALTORS® want to see a greener, healthier environment for future generations and we believe energy efficient housing can play an important role in achieving those goals.
Unfortunately, a mandatory system of energy audits, as envisioned under Bill 150, The Green Energy Act, 2009 has a number of serious implications for sellers, low and moderate income Ontarians, seniors, first time home buyers and thousands of other Ontarians who own their own home or business.
OREA’s POSITION
Mandatory home energy audit reports will have serious cost implications for home sellers. Those with less than ideal energy audit ratings will face pressure from homebuyers to either spend thousands of dollars to improve the energy rating of their home or lower their sale price. Many middle and low income Ontarians simply cannot afford the cost of financing home energy retrofits.
Those sellers who can afford expensive retrofits will want a premium sale price. As the cost of housing rises, fewer and fewer low and moderate income Ontarians will be able to find affordable housing. Government policy should promote affordable home ownership to low and moderate income Ontarians, not hinder it.
Seniors will also be disadvantaged by mandatory home energy audits. Most Ontario seniors rely on the equity they have built in their homes for retirement. Mandatory home energy audits will force homeowners who are seniors to complete energy retrofits at a tremendous cost to their retirement savings or lower the value of their home in order to compete with newer ones.
Mandatory home energy audits will adversely affect first time home buyers. The majority of homes that will not score well on home energy audits are resale homes. Resale homes, on average, are more affordable for first time homebuyers. If homeowners decide that energy retrofits are necessary in order to sell their home, how will first time home buyers, who statistically have smaller than average down payments, be able to pay the increased sale price?
Ontario REALTORS® agree with the principle of energy efficiency for homes expressed in the Government of Ontario’s proposed mandatory home energy audit, but they say that the additional costs will hurt homeowners, especially in these economic times.
“This mandatory government regulation will impose a significant cost on home sellers. As with most Canadians, we don’t believe in green at any cost,” said Gerry Weir, President of the Ontario Real Estate Association. “It’s not the initial cost of these audits that concerns us,” he said. “Rather, the results of these audits will be used by home buyers as bargaining chips to significantly reduce the final selling price.
“Today’s economic downturn is a terrible time to introduce this measure. Home sellers are already worried about lost equity in their homes. A move like this, which will reduce their value even further, will not help them in any way,” Mr. Weir said.
REALTORS® favour government encouragement of energy efficiency in homes through expanded tax breaks and other measures.
In addition, REALTORS® point out that there is no one standard for energy audits. Different firms arrive at different assessments of the same house. “EnerGuide ratings of an existing home can and do vary between energy auditors, depending on the assumptions they make and the extent of data they collect on the building’s actual construction,” Mr. Weir said.
Furthermore, since there is no regulation of energy auditors, a conflict of interest can arise if a contractor conducts the audit. There is a natural inclination for that contractor to find problems that he can offer to repair for the homeowner.
Many details of the energy audit proposal have not been released. For instance, the government has not said if an energy audit will be required if a property is transferred between family members. Nor have they said how long an energy audit will be recognized as valid. For example, if a homeowner sells within one year of buying a property, will the previous energy audit be recognized?
Unfortunately, a mandatory system of energy audits, as envisioned under Bill 150, The Green Energy Act, 2009 has a number of serious implications for sellers, low and moderate income Ontarians, seniors, first time home buyers and thousands of other Ontarians who own their own home or business.
OREA’s POSITION
Mandatory home energy audit reports will have serious cost implications for home sellers. Those with less than ideal energy audit ratings will face pressure from homebuyers to either spend thousands of dollars to improve the energy rating of their home or lower their sale price. Many middle and low income Ontarians simply cannot afford the cost of financing home energy retrofits.
Those sellers who can afford expensive retrofits will want a premium sale price. As the cost of housing rises, fewer and fewer low and moderate income Ontarians will be able to find affordable housing. Government policy should promote affordable home ownership to low and moderate income Ontarians, not hinder it.
Seniors will also be disadvantaged by mandatory home energy audits. Most Ontario seniors rely on the equity they have built in their homes for retirement. Mandatory home energy audits will force homeowners who are seniors to complete energy retrofits at a tremendous cost to their retirement savings or lower the value of their home in order to compete with newer ones.
Mandatory home energy audits will adversely affect first time home buyers. The majority of homes that will not score well on home energy audits are resale homes. Resale homes, on average, are more affordable for first time homebuyers. If homeowners decide that energy retrofits are necessary in order to sell their home, how will first time home buyers, who statistically have smaller than average down payments, be able to pay the increased sale price?
Ontario REALTORS® agree with the principle of energy efficiency for homes expressed in the Government of Ontario’s proposed mandatory home energy audit, but they say that the additional costs will hurt homeowners, especially in these economic times.
“This mandatory government regulation will impose a significant cost on home sellers. As with most Canadians, we don’t believe in green at any cost,” said Gerry Weir, President of the Ontario Real Estate Association. “It’s not the initial cost of these audits that concerns us,” he said. “Rather, the results of these audits will be used by home buyers as bargaining chips to significantly reduce the final selling price.
“Today’s economic downturn is a terrible time to introduce this measure. Home sellers are already worried about lost equity in their homes. A move like this, which will reduce their value even further, will not help them in any way,” Mr. Weir said.
REALTORS® favour government encouragement of energy efficiency in homes through expanded tax breaks and other measures.
In addition, REALTORS® point out that there is no one standard for energy audits. Different firms arrive at different assessments of the same house. “EnerGuide ratings of an existing home can and do vary between energy auditors, depending on the assumptions they make and the extent of data they collect on the building’s actual construction,” Mr. Weir said.
Furthermore, since there is no regulation of energy auditors, a conflict of interest can arise if a contractor conducts the audit. There is a natural inclination for that contractor to find problems that he can offer to repair for the homeowner.
Many details of the energy audit proposal have not been released. For instance, the government has not said if an energy audit will be required if a property is transferred between family members. Nor have they said how long an energy audit will be recognized as valid. For example, if a homeowner sells within one year of buying a property, will the previous energy audit be recognized?
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