Posted on
September 21, 2018
by
Tibor Bogdan
Owning a home is one of the cornerstones of a solid financial plan. However, making mortgage payments for 20 to 30 years can take a huge bite out of your budget, even with low interest rates. Yet it’s surprisingly easy to reduce your amortization – and the amount of interest you’ll pay. When you’re mortgage free, a big part of your budget will become available to help achieve your other financial goals.
Here are three ways to become mortgage-free faster:
1. Make a lump sum payment. A lump sum payment, or prepayment, reduces your outstanding principal. The sooner you can make a prepayment, the less interest you’ll pay over the long term. Your mortgage agreement specifies the maximum amount you can prepay each year and how often (usually once per calendar year) without penalty. Coming up with a large lump sum - up to $75,000 on a $300,000 mortgage - is next to impossible for most people. But even a small sum – from a bonus or tax refund, for instance – can reduce your overall interest amount.
2. Increase the amount of your payments. Most mortgage lenders allow you increase your payment, but there may be a fee if you change it again during the calendar year. This option is easier than coming up with a large lump sum.
3. Make more frequent payments. Financial institutions offer a number of payment options. The standard ones are: monthly, semi-monthly, bi-weekly and weekly. Many people match the frequency to their pay periods for ease in budgeting. If you decide to make more frequent payments, inquire about an accelerated option. Accelerated weekly and bi-weekly payments can save you thousands in interest charges because you’ll make the equivalent of one extra monthly payment each year. There is very little extra savings if you just switch to a more frequent payment without taking the “accelerated” option.
You can save thousands in interest by paying off your mortgage as fast as your budget allows. Choose any one, all, or a combination of the prepayment options available to you. Contact your mortgage lender for your payment options and any penalties or fees you may be required to pay.
Tibor Bogdan
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
September 14, 2018
by
Tibor Bogdan
When selling your home the outcome of the home inspection can make or break the deal. The home inspection fully informs your prospective buyer about the state of your property and makes them aware of any issues they may inherit upon purchase. Here's a look at three potential inspection outcomes and what each one means to you as a seller.
All Clear After a detailed inspection of all the key parts of your property, the inspector may give you a clean bill of health. This is the best case scenario because this means that your roof, foundation, and electrical are all in good shape. As well as no damage from water leaks were found. This means that the sale can proceed as planned. The original offer that you accepted on your home stands. This is the quickest route to your closing deal. If your home is newer or well taken care of, you can hopefully expect this result. You'll get the best price for your home.
Request for Repairs In some cases, the inspector's report comes back with some minor to moderate issues which may affect the sale. For example, a hot water heater may have a leak or there may be cracks in your drywall due to settling. In this scenario, the buyer returns to you with the inspection report and asks that you make the necessary repairs before the deal proceeds. At this point, you have the option to walk away from the buyer; but it's not usually advised that you do so unless there are other issues at hand. Typically, sellers will simply proceed with whatever work needs to be done, as noted on the inspection report, so the sale can move forward.
Price Negotiations If the issues revealed by the inspection are severe or there are numerous, the buyer may want to negotiate on price rather than have you completed the repairs. In this case, they acknowledge that they will have to shoulder the burden and cost of the work - so as compensation, they may ask you to reduce the sale price of the home.
Again, you can walk away at this point if buyers are being unreasonable. However, if you feel the request is fair, you can negotiate an agreeable price reduction. This can be a wise choice if the updates needed require custom design choices like new appliances or flooring. Now that you know what to expect, you can head into your home inspection feeling confident and prepared for any outcome! If you are unsure what the inspection may come back you are able to have a pre-sale inspection done on your property prior to listing your home. This will ensure you will get the best price for your property.
oll Free: 1-877-837-3603
Email: Daniel@MrHomeInspectorLtd.com
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
August 17, 2018
by
Tibor Bogdan
The latest property transfer data from the B.C. Ministry of Finance, released at the end of July, indicates that foreign buyers have all but disappeared from the Lower Mainland.
The numbers show that just 1% of all real estate transactions in Metro Vancouver and the Fraser Valley Regional District during the first six months of this year involved foreign nationals, down from 3% in the same period a year ago.
Burnaby, Coquitlam and Richmond were the top destinations for foreigners buying property in the first half of 2018, with 3% of transactions in Burnaby and 2% in each of the other two municipalities involving foreign nationals. The sole municipality to see an increase in the proportion of foreign nationals making purchases was the city of North Vancouver, where foreign buyers were involved in 1% of deals in the first six months of 2018.
Those concerned about foreign nationals purchasing agricultural properties will be reassured to know that foreign buyers of Lower Mainland rural properties have fallen from 14% of the total in the first six months of 2017 to zilch in the first half of this year.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
August 3, 2018
by
Tibor Bogdan
Here's a recent article on recreational property sales in this current market.
Recreational property prices "surge"
Prices of recreational properties surged during in June 2018 from the same month a year before. The median house price for the said properties (which include waterfront, non-waterfront, water access and ski-in properties) increased by an annualised 13% last month.
"Compared to 2017, when only 55 per cent of regions surveyed had retirees driving the market, this year's 91 per cent are having a much bigger impact," said Christopher Alexander, executive vice president and regional director, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "Combined with the fact that Canada's senior population is the largest it has ever been, and many of these retirees are using recreational properties as retirement properties, pricing has increased across the majority of markets,” he added.
In particular, British Columbia saw an increase of 19%, with the median price more than doubling in areas like Tofino. The firm said the increase was propelled by a lack of inventory. Meanwhile, Sun Peaks, one of Canada's largest ski areas, saw an increase of 34%, due to its available services and schooling attracting retirees as well as families.
However, the median price increase was not across the board as the Prairies saw a 4% lower figure from a year before. Changes in mortgage rules and an economic slowdown are factors that contributed to the decrease, the firm said.
The economic slowdown in the Prairies, combined with stricter mortgage qualifications, has affected demand in its recreational market. On the other hand, B.C.'s economy is the fastest growing in the country and its status as a destination market has contributed to the strong growth of its recreational market.
Ontario saw an overall price increase of 15%, with the median price in areas like Haliburton's waterfront properties almost doubling. Atlantic Canada saw a very modest median price increase of 0.13% amid slow economic growth. Those still recovering from the 2017 market downturn in places like Newfoundland and Labrador are delaying purchases of recreational properties at the moment.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
July 20, 2018
by
Tibor Bogdan
Canada Mortgage and Housing Corp. is making changes intended to make it easier for the self-employed to qualify for a mortgage.
The national housing agency says it’s giving lenders more guidance and flexibility to help self-employed borrowers.
Self-employed Canadians may have a harder time qualifying for a mortgage as their incomes may vary or be less predictable.
CMHC is providing examples of factors that can be used to support the lender’s decision to lend to borrowers who have been operating their business for less than 24 months, or in the same line of work for less than 24 months.
It is also providing a broader range of documentation options to increase flexibility for satisfying income and employment requirements.
The changes, which apply to both transactional and portfolio insurance, will take effect October 1st.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
July 13, 2018
by
Tibor Bogdan
As widely expected, the Bank of Canada (BoC) raise its key interest rate on Wednesday. It was the fourth hike for Canada’s central bank since July of last year, a move that brought rates to 1.5 per cent, up from just 0.5 per cent 12 months ago.
Most Canadians probably know the drill by now. As the BoC rate goes up, so does the interest on floating-rate loans, like variable-rate loans and lines of credit. And usually, a couple of days after the BoC’s announcement, the banks announce that they’re raising the interest on new fixed-rate mortgages as well.
It may be time to choose variable again Variable-rate mortgages are once again looking pretty attractive, according to mortgage brokers.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
July 6, 2018
by
Tibor Bogdan
Vancouver ranks 1st and Abbotsford ranks 4th among cities where home buyers shell out the most in home-purchase tax (land transfer tax on a home purchase – known in B.C. as property transfer tax - in a new ranking by real estate website Zoocasa.)
The website ranked all the major Canadian cities in terms of how much tax both a first-time buyer and a repeat buyer would pay on the average-priced home for that city. During the month of May in Abbotsford, the tax on an averaged priced home costing $538,999 was $8,780, placing it fourth on the list for both the first-time and repeat buyer rankings.
Vancouver was by far the highest on the first-time buyer list, with both first-time and repeat buyers paying $20,076 in tax on the purchase of an average-priced home costing $1,103,803.
The cost of LTT on top of purchasing a home can be onerous, especially for first-time buyers and especially in high-priced markets, as Zoocasa’s managing editor Penelope Graham wrote in the report. “Land transfer tax is a cost that must be paid in cash upon closing and it cannot be mortgaged. This results in requiring buyers in the most expensive and heavily taxed housing markets to save for years longer to have that cash in hand, compared to more affordable markets with a moderate fee structure.”
Article sourced from: Glacier Media Real Estate
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
June 30, 2018
by
Tibor Bogdan
Read this article before you consider adding your kids to title to "avoid probate".
A Burnaby pensioner is suing a construction company that has put a claim on half of the home she lives in and that represents her lifetime savings.
In October, 80-year-old Tina Gully was upset to learn that Ledcor Construction Ltd. had gotten a “certificate of judgment” in court for the half-interest in her apartment suite she had given to her son, who owed the company $800,000 arising from a business deal.
According to court documents, in May 2015 she had added her son, Steven Gully, as a joint tenant on the title of the high-rise suite on Kathleen Avenue near Metrotown. She says that the property transfer was done without her son’s knowledge, agreement or consent and was solely for the purpose of estate planning given her age.
Gully, who earns $20,000 a year after taxes, says she intends to give her estate to her two grandchildren and didn’t add them to the title because they are still very young.
Her son did not know of the transfer until after the certificate of judgment had been registered on the property, she claims.
The grandmother of two says she asked Ledcor to remove the certificate, informing the company that Steven holds the property in a “resulting trust” for her, but that the company has refused to do so.
Initially she named her son as the sole defendant, with the son not responding to the lawsuit, and later added Ledcor in an amended notice of civil claim filed in B.C. Supreme Court seeking to have the certificate removed from the title.
“Since the certificate, it has always been my fear that I will not be able to support myself,” Tina Gully says in an affidavit filed in April. “It has become a daily stress and concern for me. I sometimes cannot sleep at night because of this ordeal.
“I cannot understand why my lifetime saving has been claimed by Ledcor when Ledcor was doing business with Steven, and I had nothing to do with that.”
She says she has health issues and is not sure that if she sells the apartment and Ledcor gets half of the proceeds of sale, she will be able to afford moving into a seniors care home.
David Chen, a lawyer representing Tina Gully on the Ledcor matter and who was not involved in the estate planning, said that to be fair Ledcor has informed him that they don’t plan to kick Gully out of her home or seek to have the property foreclosed pursuant to the certificate of judgment.
“That said, I think to an extent, they put the judgment on the property and what they would like to do is collect on it eventually,” said Chen.
“And that may be when either Ms. Gully moves out because she’s very senior and she’s already looking at going to a seniors home, or when she passes.”
Steven Gully said he believes his mom got bad legal advice on the estate planning and unfortunately got dragged into his financial dispute with Ledcor.
He said he had “no idea” that his mom had given him half title on the property until the lien was placed on the home.
“As far as from a legal perspective, I’m certainly not going to oppose her motion. The easiest thing is to not respond and hopefully the judgment goes her way.”
In several e-mails, David Hoff, a spokesman for Ledcor, said that the son hired Ledcor to undertake construction for a commercial venture and as part of his assurance of payment, he made his personal assets available to the company as a guarantee.
He said that Steven Gully and his company owe $800,000 for the work, with the work involving Ledcor paying hundreds of thousands of dollars to local sub-contractors and professional trades.
“Despite extensive efforts by Ledcor to work out a mutually acceptable payment plan, Steven and his company reneged on the arrangement,” said Hoff.
The company spokesman said that as a result of the son’s failure to pay his debts, the company secured the 50 per cent equity in the Burnaby home and added that if the debt is paid, Ledcor will remove its interest in the suite.
“Ledcor is not taking any steps to disrupt the use of the premises by the mother. It is only protecting its rights as a judgment creditor.”
The case is expected to be in court Aug. 17.
Article read here. Keith Fraser @ The Province.
Tibor Bogdan *P.R.E.C.
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
April 15, 2016
by
Tibor Bogdan
Lately the media have re-labeled a very common practice called "Contract Assignments" and I would like to bring bit of light into this matter.
What is an assignment of a contract:
An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights. In order to do that, the other party to the contract must be properly notified.
How Assignments Work:
How an assignment of contract plays out depends on many factors, especially the language of the contract. Some contracts may contain a clause prohibiting assignment; other contracts may require the other party to consent to the assignment.
Here's an example of a basic assignment of a contract:
Tom has a firm contract on the purchase of a townhouse but due to some new financial obligations he doesn't think he can complete on the purchase. His brother John steps in and for $1.00 assumes all the obligations of the contract and buys the property.
It is important to note that in this case an assignment didn't relieve Tom from liability. If John couldn't complete on the purchase Tom would be liable.
In a hot market, assignment of contracts is often executed for a much larger sum of money then $1.00 but the principal and legality is the same (if properly executed).
If you have a question on this write me an email or consult with your lawyer/ notary.
Posted on
February 7, 2014
by
Tibor Bogdan
I read this article in the Vancouver Sun and thought some of you might find this interesting.
~ BMO, Scotiabank join RBC in reducing a number of mortgage rates ~
At least two more big Canadian banks have joined Royal Bank in quietly reducing some of their mortgage rates. Bank of Montreal and Scotiabank both lowered rates recently although, like the Royal Bank, neither issued a news release announcing the changes.
Scotiabank lowered its five-year closed fixed term mortgage 10 basis points. BMO lowered a number of its rates between 10 and 20 basis points, including its posted five-year fixed rate to 3.69 per cent from 3.89 per cent, according to Ratehub.ca.
The changes follow a move by RBC to lower its rates on several fixed-rate mortgages by 10 basis points, bringing its five-year closed rate to 3.69 per cent.
RBC said in an email it was only matching lower rates offered by other financial institutions. “Competitors have been pricing at lower rates for several weeks and this rate change now puts us in line,” the bank said.
Article from: The Vancouver Sun
Kind Regards,
https://www.facebook.com/TiborRealEstate
 What is a pre-sale?Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.
Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.
If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.
The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.
Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.
A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.
If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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