Drive by online and listen to the story of this home.

Lower payments of a 40 year mortgage may help First time buyers qualify to buy a home. That may seem great when you are just starting out to buy a home but the interest paid over the years will also increase. Here is an example to explain what I mean.

Case A - $100,000 mortgage  5 year fixed 25 year mortgage at 5% interest rate  - payment = $582

Case B - $100,000 mortgage 5 year fixed 35 year mortgage at 5% interest rate  - payment = $502

Case C - $100,000 mortgage 5 year fixed 40 year mortgage at 5% interest rate  - payment =  $479

Case A Total Interest paid $74,482.96

Case B Total Interest paid $107,115.63

Case C Total Interest paid  $129,829.71 

So for a difference of $110 in monthly payments there will be a difference of almost $50,000 is added to the cost of your house.

Seek the advice of a professional lender for more details on how to best meet your needs and let me find a house that you can make a home.

“We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition,” said AIG United Guaranty President and CEO Andy Charles.

Included in AIG United Guaranty’s current product offering is insurance for no down payment mortgages, and a “more affordable” insurance product for borrowers whose credit scores have been affected by adverse conditions.

Investors with a 10 per cent down payment will be able to get insurance on rental properties of one to four units. The company is also offering products with 30, 35 and 40-year amortization periods, as well as identity theft insurance coverage.

Charles predicted in an interview that 50-year amortization periods for mortgages would be offered in the Canadian marketplace. He added that AIG United Guaranty has no immediate plans to insure mortgages amortized over 50 years.

A recent report by CIBC World Markets shows that Canada’s sub-prime mortgage sector increased by 50 per cent during the first half of 2006, and grew by almost five times the rate of traditional lending. CREA cautions that the report did not provide the actual number of sub-prime mortgages used to generate the statistics.

Sub-prime or “non-conforming” mortgages are often assumed to be inherently riskier than more traditional forms of borrowing. Lenders provide home loans to new immigrants who don’t have a Canadian credit history, mortgages for the self-employed who can’t easily prove their income, or loans for people who have a bad credit rating. Borrowers are often offered longer repayment periods or lower down payment options, and pay higher rates of interest.

Although not fail proof, with Brock and Niagara College cooperation there will be an improvement in the standard of accommodations for students and a smoothing of feathers to south St. Catharines home owners.

• Seller Representation

This is the most commonally known type of agency relationship. When a person (Seller) wants to sell their house they sign a Listing agreement with a Real Estate Brokerage, which formalizes the agency agreement. The Real Estate Company and their Sales Representatives are expected to work on the Seller’s behalf selling, the Listed property, disclosing to the Vendor all the information they obtain that will influence the sale of the property.

• Buyer Representation

Another relationship and not commonly established or understood. When a Buyer wants to buy a house a Buyers agency agreement ensures that the Realtor is working for the Buyer. A Buyer agency agreement establishes the same duties to the Buyer.

If you do not have this signed agreement it is assumed that the Brokerage and Sales Representatives are representing the interests of the Seller and you will receive Customer Service.When any information is disclosed in this situation the sales representative is obligated to inform the Seller.

• Multiple Representation

A real estate company may be acting as the agent of both the Sellerand the buyer. This occurs if a realtor is working on behalf of both the buyer and the Seller and this is called ‘mutiple representation’.
Multiple Representation may cause a confusion during times of offer presentation.  For this reason, Multiple Representation is permitted only when disclosed and with the knowledge and prior written consent of both parties.
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• Customer Service

 If you have not signed any agreement of representation/agency you would expect to receive Customer service. Customer service does not receive the same components as Agency but you are entitled:-

• No misrepresentation regarding the property
• Fair and ethical treatment
• Complete and accurate information

Whether you sign and agreement or not you will be asked to sign documentation confirming that you understand whom the Realtor is working for. *Working with a Realtor”  (OREA Publication). WorkingWithREALTORr6.pdf *

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