Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

2.99% for 4 Year Mortgage! Mortgage interest rate promotion

2012-05-18T09:35:00.000-04:00

I recently was emailed a fabulous mortgage rate promotion. See the rates
below.

Thanks to recent renewed trouble in Europe, we see some new mortgage rate
promotion.

4 year fixed at 2.99%, fully qualified deals only. This promotion is ending
at May 22.

3 year fixed at 2.99%.

Please let me know if you have any other questions or require further
information about this promotion.

Thank you,

Mark

Latest Toronto GTA real estate marketplace from the Toronto Real Estate Board April 2012

2012-04-06T10:50:00.001-04:00

This is a summary of the latest GTA real estate marketplace from the Toronto Real Estate Board

Average price in March as $504,117 up 10% compared to March 2011 and volume of sale are up about 8%

See the graphs at my site

Read the full report below.

GTA REALTORS(r) Report Monthly Resale Housing Market Figures

Toronto, April 4, 2012 - Greater Toronto REALTORS(r) reported 9,690 sales through the TorontoMLS System in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011.

"The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates," said Toronto Real Estate Board President Richard Silver. "The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average."

The average selling price in the GTA was $504,117 in March - up by 10.5 per cent in comparison to March 2011.

"The number of new listings was up last month in comparison to March 2011.

However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole," said Jason Mercer, TREB's Senior Manager of Market Analysis.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Mortgage Rates On The Rise

2012-03-28T11:06:00.002-04:00

Just as soon as I posted that fixed rates are currently excellent and it's a great time to lock in, then I received the email below that fixed mortgage rates are on the rise!

Could be time to lock in..... read below

Mark

_____

From: Mortgage consultant
Sent: Tuesday, March 27, 2012 8:51 PM
Subject: Mortgage Rates On The Rise

Mortgage Rate Bulletin

RBC and TD have announced mortgage rate hikes effective this Thursday March
29th... Other lenders are sure to follow!

Get your applications in now to get your 120 rate holds before rates go up.

10 year fixed rates still available at 3.99% and are looking better and
better right now!

5 year fixed rates still available at 2.99%

If you need mortgage help, please contact me!

Mark

Are rates about to increase? Mortgage Interest Rate outlook

2012-03-28T09:40:00.000-04:00

We have seen a price war for 4 year mortgage interest rates for the past couple of weeks. BMO was one of the first out of the gate to offer 2.99% for a 4 year mortgage, the other banks and lenders followed shortly thereafter.

Now you can see 5 and 10 year mortgage interest rates at absurdly low levels.

I've seen 5 year fixed rate mortgages at 3.5% which is unbelievably low.

Fixed rate mortgages are very attractive right now.

I've written many articles about staying with short term mortgage rates at this page:
<http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm>
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

My preference for many years has been to go variable, but if you are not a gambler, then it could be getting close to the time where you lock in your mortgage.

Read the article below that just appeared in the POST, it's very interesting what the experts are saying.

Stay Tuned.......

All the best!
Mark

The logic is pretty simple. You hit rock bottom and there is no where else to go but up.

Mortgage rates on terms of five years and 10 years have never been this low. You can go back 50 years and not find a rate of 2.99% from one of the major banks for a fixed-rate product for five years. The 10-year, an almost unheard of length for most Canadians to commit to, has touched down at below 4%.

Even sticking it out with a variable-rate product linked to the prime lending rate still looks pretty good with most major financial institutions offering some type of discount off their 3% floating rate.

Already there are signs rates could be on the increase. The bond market - which mortgage rates are based on - has been rising fast and the big banks say their most recent specials will come to an end this week. But even with a 50 basis point increase, a five-year fixed closed mortgage of 3.5% is almost unheard of historically.

"Everybody is looking at the bottom here and thinking, 'When are rates going to go up?'" says Kelvin Mangaroo, president of RateSupermarket.ca which produces a monthly forecast from leaders in the mortgage industry.

.Even among the experts, few foresaw this price war in the mortgage sector. "With the big banks getting very aggressive again, it took a lot of people by surprise," said Mr. Mangaroo. "I think people were thinking the status quo would hold for a while."

.He says the last Bank of Canada announcement about the economy had people thinking at some point the overnight lending rate, which impacts the prime lending rate, would go up, but not this year.

"Now that people are thinking of early 2013, that has people talking but really that is just so far out says Mr. Mangaroo. "It's really just an abstract concept at this point."

Craig Alexander, chief economist with Toronto-Dominion Bank, says he can understand how there might be some fatigue from consumers hearing about rising rates.

"Unfortunately, we have been saying for years 'that's it, rates can't go any lower than they are today' and then they are [lower] 12 months later," Mr. Alexander says.

.But this time out, he says, it almost seems impossible that rates on a five-year closed mortgage could go lower than the current 3%. "Short of the Canadian economy going into a recession and causing the Bank of Canada to cut rates back to their all-time low, there really isn't an environment that would lead to significantly lower mortgage rates," Mr. Alexander says. "The downside here is extraordinarily limited."

The real risk for the consumer might be not locking in right now. While no one is expecting the overnight rate to go up anytime soon - discounts off the prime lending rate might even improve if the economic uncertainty calms in some parts of the world - the 50-year-low rates today could become hard to find.

"If the economic forecasters are wrong about the outlook for growth and things turn out better than anticipated, then bond yield will rise, we'll have a steeper yield curve and higher fixed mortgage rates," Mr. Alexander says. "You won't be able to get what is offered today in 12 months time. They could go up half a percentage point or higher."

In the interim, Gregory Klump, chief economist with Canadian Real Estate Association, says in terms of profitability, there is room for the banks to go lower on rates, but margins for the banks are so thin he doesn't expect it happen.

"We are not out of the woods yet in terms of a clear picture that growth is going to strengthen," says Mr. Klump about the catalyst that could drive up bond rates, which would impact mortgage rates. "My own view is growth may well weaken."

He predicts that any rise in rates will happen slowly, which the housing market would more easily absorb. "I do not expect it," Mr. Klump says about the type of interest rate shock that could send housing sales tumbling.

Author Garth Turner, a noted pessimist on the fortunes of housing these days, thinks those who want to be in the market for a house should probably be grabbing on to long-term products.

He says the banks know the housing market is already shrinking and are scrambling for a larger share of the mortgage market, something that also allows them to cross-sell other products like RRSPs to consumers.

"The writing is already on the wall, prices will be declining," Mr. Turner says. "The Bank of Canada will be raising rates."

A Bank of Canada hike will make variable rates rise fast, and he agrees the present day rates could look very good in a few years. "If you want to be a homeowner, it is an appealing product. Three or fours years from now, these rates could look absurd. I have no problem with being in real estate as long as it's not the bulk of your net worth. If you are getting into real estate now though and leveraging up, you are going to be unhappy about it," says Mr. Turner, adding the raising rate environment will hurt sales and prices will follow quickly.

Don Lawby, chief executive of Century 21, says the rate wars going on right now combined with the unusually warm winter have already boosted housing sales, which could leave little demand left for the spring market.

"Interest rates are low and they probably can't go any lower than they are," says Mr. Lawby, who thinks there is not much room for housing prices to go higher. "I looked around and say if the local economy stays good, the market can stay good. But these low rates are very key."

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Mid-month report for March 2012 from TREB Real Estate

2012-03-23T08:28:00.002-04:00

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

TORONTO, March 19, 2012 –During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970.

“Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver.

The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks.

“Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price, on average, suggests that sellers are very much in tune with the current market situation and know the fair market value of their home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Average Housing Prices for Major cities across Canada

2012-03-23T08:00:00.005-04:00

CMHC published a report showing the average MLS price in each major city in Canada for 2010, see the image below:

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

This is the latest Economic News from TD Canada Trust

2012-03-21T06:58:00.000-04:00

Below is the latest report from TD Canada Trust with regards to the economy and decided to keep the federal funds interest rate unchanged at 0% to 0.25% until at least the end of 2014

This is good news if you are borrowing money over the next 2 years! See the press release below
Please let me know if you have any other questions or require further information.

Thank you,

Mark

Data Release: FOMC maintains the status quo, provides no sign of further
stimulus discussion

The Federal Open Market Committee decided today to keep the target range for
the federal funds rate unchanged at 0.0% to 0.25% at least through
late-2014. The Committee also decided to continue its program to extend the
average maturity of its holdings of securities - "operation twist".

Supporting their decision, FOMC members noted that, despite the recent
decline in the unemployment rate, unemployment remains high and they still
expect it to gradually decline towards levels consistent with the Fed's dual
mandate.

They also characterized the economic outlook as one of "moderate" economic
growth and "temporary" higher inflation caused by the recent spike in crude
oil and gasoline prices.

Moreover, committee members acknowledged the easing of global financial
markets strains, but reaffirmed their concern that those strains continue to
pose significant downside risks to the economic outlook.

Jeffrey Lacker once again expressed his disagreement with the after-meeting
communiqué. In particular, Mr. Lacker does not share the view that economic
conditions are likely to warrant exceptionally low levels of the federal
funds rate through late-2014.

Key Implications

At its previous meeting in late-January, FOMC members had decided to extend
the conditional commitment to low interest rates from mid-2013 to the
current late-2014 stated date. In addition, they had provided clarification
on how the FOMC interprets its dual mandate of price stability and maximum
employment. Lastly, to further enhance the Fed's communication strategy,
they had released interest rate projections from all committee participants.
Given this precedent, there was very little expectation heading into today's
meeting that the after-meeting communiqué would deliver anything more than
what it actually did.

Recently there has been some speculation about the possibility that the Fed
could engage in "sterilized" bond purchases as a way to keep a lid on
interest rates while avoiding a potential inflationary expansion in money
supply. The recent improvement in labor market data, combined with the rise
in gasoline prices observed since the FOMC last met certainly did not set
the ground for any mention of further monetary stimulus in today's
statement.

o see if that discussion actually occurred at today's meeting, we will have
to wait until the Fed releases the minutes on April 4th.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Is it time to lock in your mortgage rate?

2012-03-19T07:02:00.002-04:00

I was asked by Harry

"Hi Mark,

Hope all is well.

I have been on variable rate since I spoke with you last. I have an opportunity to lock in my mortgages at 2.99% for 4 years. Is it a wise move under today's conditions?

Thanks in advance.
Harry"

Hello Harry,

Yes, I saw this rate and blogged about it last week! Not sure if you saw it or not:

Long term mortgage rates

It's a judgment call on your part, there are some severe restrictions that you must be aware of. There are discounts on these 'posted' rates, so ask for a discount.

We may find that the variable rates drop again to prime minus, maybe they will go to prime minus .9% again and that's 2.1% and you may regret the 2.99%

Funny thing is, when rates were 10 to 14% for about 15 years in the late 80's to early 2000's you would have jumped at 2.99% and thought you won the lottery.

Our mortgages are all variable, prime minus, so I'm still staying where we are for at least the next 6 to 12 months or most likely longer.

Again, it's how much risk you are willing to take.

I wish you the best and let me know what you decide!
Mark

ADU's or Additional Dwelling Units in Mississauga, Toronto and GTA - Update

2012-03-16T06:53:00.000-04:00

This is a minor update to the law and Bill 140 that changes the planning act in Ontario to allow second dwelling units in detached, semi detached or row dwellings, with the following definitions and changes.

Specifically the act now states:

Amendments to Planning Act

1. Clause 2 (j) of the Planning Act is repealed and the following
substituted:

(j) the adequate provision of a full range of housing, including
affordable housing;

2. Section 16 of the Act is amended by adding the following subsection:

Second unit policies

(3) Without limiting what an official plan is required to or may contain
under subsection (1) or (2), an official plan shall contain policies that
authorize the use of a second residential unit by authorizing,

(a) the use of two residential units in a detached house, semi-detached
house or rowhouse if no building or structure ancillary to the detached
house, semi-detached house or rowhouse contains a residential unit; and

(b) the use of a residential unit in a building or structure ancillary to
a detached house, semi-detached house or rowhouse if the detached house,
semi-detached house or rowhouse contains a single residential unit.

3. (1) Subsection 17 (24.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(24.1) Despite subsection (24), there is no appeal in respect of the
policies described in subsection 16 (3), including, for greater certainty,
any requirements or standards that are part of such policies.

(2) Subsection 17 (36.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(36.1) Despite subsection (36), there is no appeal in respect of the
policies described in subsection 16 (3), including, for greater certainty,
any requirements or standards that are part of such policies.

4. Clause 22 (7.2) (c) of the Act is repealed and the following
substituted:

(c) amend or revoke the policies described in subsection 16 (3),
including, for greater certainty, any requirements or standards that are
part of such policies.

5. Subsection 34 (19.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(19.1) Despite subsection (19), there is no appeal in respect of a
by-law that gives effect to the policies described in subsection 16 (3),
including, for greater certainty, no appeal in respect of any requirement or
standard in such a by-law.

6. The Act is amended by adding the following section:

By-laws to give effect to second unit policies

35.1 (1) The council of each local municipality shall ensure that the
by-laws passed under section 34 give effect to the policies described in
subsection 16 (3).

Regulations

(2) The Minister may make regulations,

(a) authorizing the use of residential units referred to in subsection 16
(3);

(b) establishing requirements and standards with respect to residential
units referred to in subsection 16 (3).

Regulation applies as zoning by-law

(3) A regulation under subsection (2) applies as though it is a by-law
passed under section 34.

Regulation prevails

(4) A regulation under subsection (2) prevails over a by-law passed
under section 34 to the extent of any inconsistency, unless the regulation
provides otherwise.

Exception

(5) A regulation under subsection (2) may provide that a by-law passed
under section 34 prevails over the regulation.

Regulation may be general or particular

(6) A regulation under subsection (2) may be general or particular in
its application and may be restricted to those municipalities or parts of
municipalities set out in the regulation.

7. Subsection 39.1 (3) of the Act is repealed and the following
substituted:

Area and time in effect

(3) Despite subsection 39 (2), a by-law authorizing the temporary use of
a garden suite shall define the area to which it applies and specify the
period of time for which the authorization shall be in effect, which shall
not exceed 20 years from the day of the passing of the by-law.

Commencement

8. (1) Subject to subsection (2), this Schedule comes into force on the
day the Strong Communities through Affordable Housing Act, 2011 receives
Royal Assent.

Same

(2) Sections 2 to 6 come into force on a day to be named by proclamation
of the Lieutenant Governor.

Also, the other additions to the planning act are as follows:

amendments to Planning Act

Schedule 2 amends the Planning Act.

Clause 2 (j) is replaced to add a reference to affordable housing to the
matters of provincial interest under section 2.

The new subsection 16 (3) requires an official plan to have policies that
authorize the use of a second residential unit.

The amendments to section 17 provide for there to be no appeal of a decision
to adopt or approve the second unit policies.

The amendment to section 22 provides for there to be no appeal in respect of
a request to amend or revoke the second unit policies.

The amendment to section 34 provides for there to be no appeal in respect of
a by-law to give effect to the second unit policies.

The new section 35.1 requires councils to pass zoning by-laws to give effect
to the second unit policies. The Minister may make regulations that
authorize the use of, and prescribe requirements and standards for, second
units. Such regulations will prevail over a zoning by-law passed by a
council.

The amendment to section 39.1 increases the period of time a by-law may
authorize the temporary use of a garden suite from 10 years to 20 years.

The entire bill can be found at this page:

http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en
<http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2440&deta
ilPage=bills_detail_the_bill&Intranet>
&BillID=2440&detailPage=bills_detail_the_bill&Intranet

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

City of Mississauga had posted some good information about Second Units, Accessory Dwelling Units

2012-03-15T18:03:00.001-04:00

The City of Mississauga had posted some good information about Second Units, Accessory Dwelling Units on their website that allowed them under certain circumstances:

http://www.mississauga.ca/portal/residents/accessorydwellingunits

With Bill 140 there are many steps that must be taken to ensure the ADU's are put into place and will comply with all building, fire and other codes and regulations

The City of Mississauga is having public meetings and listening to public input, read more about workshops here:

http://www.mississauga.ca/portal/residents/housingchoicespublicconsultation

as well there is an FAQ section for the city website:

http://www.mississauga.ca/portal/residents/housingchoicesfaq

Stay tuned, this will become a major change in the City of Mississauga, Toronto and all of Ontario

Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

What does the as is - where is term mean when you purchase a Power of Sale property

2012-03-12T09:07:00.001-04:00

I was recently asked about the term 'as is - where is' when it pertains to a
Power of Sale property.

The question was:

Hi Mark,

I am enjoying your newsletter, and want to thank you for the vast amount of useful information on your web site.

I have a couple questions for you. Could you provide details regarding listings that I have found recently that post properties as being sold under "As-Is, Where-Is" conditions. Is it safe to assume that an "As-Is" sale is typically a power of sale situation (where the seller is a bank, who in turn is offering no warranties whatsoever? And what about the "Where-Is" stipulation??

The term suggests to me that there is perhaps some issue of encroachment on property lines or set-backs, or that there is some other non-conforming aspect to the property.

Your help in this matter would be greatly appreciated.

John

Hi John,

Thank you for your kind comment, glad you are finding my newsletters it useful.

I can't really give legal advice regarding 'as is - where is' this is a legal term used in contracts. Suffice it to say, as you have pointed out, that yes when you see this on a listing it is used most often in Power of Sale situations. It's also used in estate sales and other situations too.

Since the onus of disclosure is on the seller to disclose "material facts" that may affect market value, this is why the banks and others) use the as is where is clause. When a bank is selling, they don't know anything about the property and really have 'no knowledge' about the property and don't want to spend time or money investigating the condition of the property to give proper disclosure, thus again, the as is where is.

We agents interpret the "as is, where is" to mean that you are purchasing the property in as is condition, no warranties whatsoever for anything. The "where is" is likely as you say, plus you are accepting chattels and fixtures 'where is' and where they are located and no express or implied warranty as to working condition or meeting any building code, electrical or plumbing codes or guidelines etc. Encroachments, easements, rights of way and any other outside influences and affect on market value are also assumed by the purchaser

Theoretically, when you purchase as is where is, you are literally buying the property in it's current state. This is also part of the reason that the banks usually insert a clause into the offer that you the buyer are NOT allowed back into the property once the agreement is finalized. They don't want anything happening to the property between agreement date and closing.

So what does this mean to you as a buyer? You need to have full inspections and I even recommend knocking on neighbors doors to see if they know of any current of past problems related to the property. Many times the properties are grow houses or meth labs and are in need of major renovations and improvements. Neighbours can be helpful with this too.

How big is your risk buying one of these properties? It depends. If you are buying a home in a typical subdivision and you get good information on similar homes and such, I think the risk is minimal. If you are buying a unique home or property and you skimp on inspections or due diligence, your risk could be significant. After all, with an "as is - where is" property, whatever problems you discover after you close on the property become your issues to rectify and most important is that you will have no recourse against the seller after the closing.

In a nut shell, you must do your due diligence ahead of time. Such as home inspection, legal investigations, by law inquiries, etc, before you submit your offer, or at the very least make your offer conditional upon these inquires. The practical problem with this is that typically in power of sale situations there are multiple offers, and the offers with conditions are often not accepted. With that said, the banks also realize that purchasers must do their due diligence and will often accept conditional offers as long as the conditions and time periods of the conditions are reasonable.

Great question and no short answer! This is why in all POS situations I insist that the buyer consults their lawyer ahead of time, it's very complicated and presents many obstacles and potential issues. Please let me know if you have any other questions or require further
information.

Thank you,

Mark

Donald Trump unveils new Trump Towers in Toronto Ontario Miss California would be proud!

2012-03-09T08:17:00.003-05:00

This is the latest information about the Trump Towers in Toronto

on their website, they state "You have just arrived at an incredible new standard of luxurious living. You are met by an exquisitely designed stone, steel and glass façade that rises 60-stories above an impressively redefined Toronto skyline. The lobby doors open and the attentive and friendly five-star staff welcome you inside. A grand piano’s gentle melody transforms your state of mind."

The $500-million Trump tower is the first of three luxury hotel-condominium projects opening this year in Toronto, after The Ritz-Carlton opened last year. The Four Seasons Hotel and Private Residences and the 66-storey Shangri-La Toronto are also set to open this year.
Toronto’s rise of luxury hotel residences follows a record year for tourism, with more than 9 million hotel-room nights sold in 2011, according to Tourism Toronto. The industry association said the availability of luxury hotel options attracts “high-value visitors” to the city.

Luxury Hotel Condominiums & Residences in the Heart of Downtown Toronto
Trump International Hotel & Tower Toronto, Canada’s tallest residential building, opens Tuesday, capping a seven-year effort to bring the brand of billionaire Donald Trump to the country’s largest city.

Trump International Hotel & Tower® invites you to create your own unique oasis within the heart of this magnificent city. From its coveted vantage at the intersection of Bay and Adelaide, residents and guests will enjoy first class access to all Toronto has to offer.

Situated on the northwestern shore of Lake Ontario, Toronto boasts lush parks and historical neighborhoods. The financial hub of Canada, major banks, financial institutions and insurance companies all call Toronto home.

A true international, multi-cultural city, Toronto has earned global recognition as a leader in not just the financial world, but also the performing arts, museums, art galleries, international cuisine and a thriving nightlife scene. Culture cravers love it. International travelers feel welcome. The discerning identify with its sophistication. Business executives appreciate its efficiency.

other comments by buyers:
The tower’s distinctive design and unique spire of light soaring 277 metres up the side of the building into the sky where it inscribes a signature on the city’s skyline was another deal maker.

“Several of these kinds of towers have gone up in Toronto, but the colour and design of this one really appealed to us

Security and privacy are paramount.

Owners and their guests access via a separate entrance and are whisked to an exclusive residents-only lobby on the 32nd floor staffed by a full-time concierge.

Building setback allows for spectacular views from units with 11-foot ceilings and luxurious appointments where “no detail has been left to chance.”

Mortgage Interest Rates 2.99% for 5 year at or near all time low!

2012-03-09T06:27:00.001-05:00

You have likely read or heard about BMO announcing their 5 year fixed rate at 2.99% It will not be long before the other major banks follow

Please read the fine print of any offering and mortgage, there are often stipuations and restrictions.

See the short article below to learn more about what to look for with mortgage rates and locking in long term.

As you may have already heard, BMO announced yesterday that they are bringing back their 5 year fixed rate special of 2.99%. This will once again, spark rate wars! When they first announced this special in January, other banks and mortgage lenders were quick to respond with their own rates of 2.99%, however just on 4 year terms.

While the BMO rate sounds attractive, it comes with some serious restrictions:

- Fully closed for the full 5 year term. This means that you cannot pay the mortgage off in full unless the house is sold through to a non-family member for fair market value. This also means it can't be refinanced during the term, unless done through BMO (guess who has the negotiating power in that situation?)

- maximum 25 year amortization (their website says 'for people who want to become mortgage free in 25 years'. Clever marketing, but a little misleading as there are many borrowers who go with 30 year amortization and are committed to getting it paid off faster. Any lump sum payment will significantly accelerate the pay off of the mortgage. I digress)

- Prepayment privileges are limited to 10% / year.

There ARE better 5 year fixed products available out there for 2.99% with much better terms then BMO, such as full prepayment privileges of 15%, 30 year amortization, and a closed period of only the first 3 of the 5 years.

The 4 year fixed at 2.89% (something that has been available since August) is also becoming a popular option.

It is important to read the fine print on any mortgage, as many mortgage professionals may not take the time to explain them to you. While a rate may look the same on paper, certain restrictions can end up costing you more money down the road. Provided by Paul Meredith, Citycan financial

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
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www.mississauga4sale.com/popupquestion.htm

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www.mississauga4sale.com/TREBprice.htm

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GTA real estate market has tight market that pushes the average price above $500K in Toronto

2012-03-06T06:53:00.002-05:00

This is the latest from the Toronto Real Estate Board

Tight Market Pushes the Average Price above $500K TORONTO

March 5, 2012

Greater Toronto REALTORS(r) reported 7,032 sales in February 2012 - up 16 per cent compared to February 2011.

New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February.

Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively. "With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price.

Price growth will continue to be very strong until the market becomes better supplied," said Toronto Real Estate Board President Richard Silver. "It is
important to note that both buyers and sellers are aware of current market conditions.

This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February," continued Silver.

The average selling price in the TREB market area was $502,508 in February - up 11 per cent compared to February 2011.

The Composite MLS(r) Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared February 2011.

"If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA."

Read more and see graphs of prices at this page

I hope this finds you Happy and Healthy!

All the Best!

Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

TREB Real Estate latest figures show very healthy GTA real estate marketplace

2012-03-05T16:53:00.004-05:00

GTA REALTORS® RELEASE RESALE MONTHLY MARKET FIGURES

Toronto, March 5, 2012 – Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively.

“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied,” said Toronto Real Estate Board President Richard Silver.

“It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February,” continued Silver.

The average selling price in the TREB market area was $502,508 in February – up 11 per cent compared to February 2011. The Composite MLS® Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared February 2011.

“If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA.”

Summary of TorontoMLS Sales and Average Price

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Economy is humming in Canada, will it last?

2012-02-29T17:40:00.004-05:00

This article below summarizes what has been happening in Canada recently and the outlook for the economy from the view point of TD Canada Trust They are optimistic on some points and pessimistic on others, enjoy the read! Mark

HOPE BOLSTERS MARKETS, BUT CAN IT LAST?

Highlights

• Financial market sentiment has proven far more upbeat than expected in early 2012, supported by reduced risks of a systemic banking crisis in Europe and better-than-anticipated U.S. economic data.

• This improved sentiment and market trends have led to an upward revision to our long-term government bond yield forecasts, with Canadian 10-year bond yield to reach 2.85% by year-end. We have also increased our near-term commodity price forecasts.

• Given all of the positive news factored into the current strength of the Canadian dollar, there is risk of a near-term pullback. Nevertheless, the loonie should trade broadly in a 5 cent range above and below parity over the medium term.

• The positive financial sentiment belies the continued risk-filled environment. We continue to see risks from the European fiscal crisis, the slowdown in emerging market economies, and now from high oil prices. Volatility is likely to increase in the coming months.

With two months of 2012 now under our belts, the mood on global financial markets is decidedly calmer than we had anticipated. The S&P/TSX has rallied so far this year, and measures of market volatility have returned to more normal levels (see chart). Markets seem far more confident that European leaders will be able to manage their sovereign debt crisis without triggering global contagion. Particularly, the European Central Bank's (ECB) first injection of liquidity to the banking sector back in December helped to dramatically ease liquidity pressures in the financial system. Expectations are high for the take-up on the next opportunity for financial institutions to tap cheap three-year loans from the ECB, on February 28th. Consensus expectations are for around €470 billion Euros of loans to be extended, which is just shy of the amount loaned in December. While the increased liquidity to the banking system is unquestionably positive, it does not address the fiscal challenges facing European governments.

Last week, leaders also managed to agree on a second bailout package for Greece, hopefully averting a disorderly default in March. Now Greece must solicit participation from private sector bond holders for a debt swap at less than half of the par value of current Greek bonds. Unfortunately, we suspect that the current bail out package will ultimately prove insufficient to put Greek debt on a sustainable path. The Greek economy is in a rapid downward spiral that will deeply impair fiscal improvement. So, while markets are calm for now, the Greece crisis is bound to cause renewed financial market volatility in the future.

U.S. economy: hope, with a side of caution

Apart from markets stepping back from the precipice of impeding euro-driven doom, the rally seen in equities also has its roots in the more upbeat U.S. economic data so far in 2012. Both businesses and consumer confidence has improved from the lows seen last fall. And greater optimism in manufacturing is being born out in the hard production data, which continues to grow at a steady pace. Durable goods orders also point to continued strength ahead and corporate balance sheets also remain very healthy.

Perhaps the best news is that U.S. job growth has been accelerating out of its mid-2011 soft patch. Maintaining the current pace of 200,000 new jobs per month is just what is needed to sustain spending growth and help repair household balance sheets. The other good news is that the housing market is showing some signs of improvement; existing home sales and housing starts are rising, and residential investment is starting to contribute to economic growth. Auto sales also got off to a very strong start to the year.

However, just as the European risks decline, a new threat in the form of rising oil prices is rearing its head once again. Resurgent gasoline prices are making it feel like 2011 all over again. Just when just as the U.S. seems to be picking up steam, rising gasoline prices – already above $4 per gallon in California – start to bite at consumers' purchasing power. Moreover, recent increases in crude prices suggest gasoline is headed higher in the coming weeks (see chart). Tensions surrounding Iran have built a large risk premium into the price of oil, and if crude prices come down somewhat (see forecast pages 3), consumers should get some relief. But considering rising gas prices have preceded every major U.S. economic slowdown in the past 40 years, it is a risk that bears close watching.

Bottom Line

So what does all this mean for our outlook for markets? With the ECB backstopping the European banking system with cheap liquidity, a lower chance now that Greece will imminently default on its debt, and a stronger economic picture emerging from the U.S., we no longer expect a third round of quantitative easing (QE3) by the Federal Reserve. That scenario is now a risk to our outlook in the event of a worse-case outcome in Europe, or more signs the U.S. growth is faltering.

That has led us to raise our forecasts for longer-dated bond yield forecasts both in the U.S. and Canada (see table page 3). However, unlike the U.S., there has been little to cheer about in the Canadian economic data of late. That has led us to raise our year-end Canadian bond yield targets relatively less than Treasuries. Rosier market sentiment has meant commodity prices have remained firmer, and oil prices continue to rise, so we have raised our near-term crude price target accordingly, but our longer-term targets unchanged.

Our forecast for the Canadian dollar, however, has remained unchanged. With the price of oil vulnerable to a giveback if geopolitical tensions don't play out as feared, and the potential for a deterioration in market sentiment if all does not go smoothly in Europe, we still see near-term weakness in the Canadian dollar (Strong Canadian Dollar Ahead, But Mind The Potholes). Moreover, removing QE3 from our base-case outlook is a plus for the U.S. dollar, and another headwind for the loonie. But beyond that we continue to expect relatively strong macroeconomic fundamentals to support a Canadian dollar in a 5-cent range above or below parity with the U.S. dollar over the medium term.

While our pessimism of late 2011 has not been borne out, the changes to the forecast are generally positive, so they are ones we are happy to make. Now we all have to keep our fingers crossed that these new hopes aren't dashed by a continued spike in oil prices, renewed problems in Europe or a hard-landing by emerging market economies.

2012 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities

2012-02-24T06:59:00.001-05:00

This chart plots the share of average household income that goes toward mortgage principal and interest, property taxes and utilities for the average priced home in the GTA subject to the following assumptions:
1.Average annual or year-to-date home price as reported by TREB
2.20 per cent down payment
3.Average 5-year fixed mortgage rate (Statistics Canada); 25-year amortization
4.Average property tax rate reported by/estimated from the Statistics Canada Survey of Household Spending
5.Average utilities cost reported by/estimated from the Statistics Canada Survey of Household Spending and components of the Consumer Price Index
6.Average household income reported by the Census of Canada.

2012 TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price

2012-02-23T06:49:00.001-05:00

This chart plots the monthly sales-to-new listings ratio (blue line) with year-over-year average annual per cent price change (brown line). When the sales-to-new listings ratio moves higher, average annual per cent change in home prices generally trends higher. When the sales-to-new listings ratio moves lower, average annual per cent change in home prices generally trends lower.

2012 TREB MLS® Average Price Monthly Time Series with Trend Line Actual

2012-02-21T07:04:00.001-05:00

This chart plots monthly MLS® average price since January 1995. The blue line shows the actual average price. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual average price must occur to change the direction of the trend.

2012 TREB MLS® New Listings Monthly Time Series with Trend Line

2012-02-20T07:13:00.001-05:00

This chart plots monthly MLS® new listings since January 1995. The blue line shows actual new listings. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual new listings must occur to change the direction of the trend.

TD Canada Trust latest Economic News - February 17, 2012

2012-02-18T13:01:00.001-05:00

This is the latest news from TD Canada Trust about Candian home sales,
interesting reading indeed!
Mark

Data Release: Canadian home resales lower in January

The number of Canadian home resales fell by 4.5% in January on a seasonally-adjusted basis. This was the first monthly decline in five months, and the largest since July 2010. Still, the January resale

level is slightly above the monthly average observed in 2011.

Regionally, the January drop in resales was especially marked in Greater Toronto and Montreal.

Overall, there were declines in over half of all local markets.

Despite the volume decline, average resale prices rebounded 1.6% in January (seasonally adjusted) following a similar decline in December 2011. Prices rose both in Toronto (+3.8%) and Vancouver

(+2.7%).

Key Implications

Canada's housing market was firming up during the second half of 2011, due in large part to the relative stability of the Canadian economy, steady consumer confidence and historically low interest rates.

This month's decline is likely reflective of what will shape up to be a softer year in sales, especially when it comes to Toronto and Vancouver condos. We anticipate growth will slow down in 2012 both in terms of sale volumes (+0.5%) and prices (+2.5%). In contrast, the actual
correction is foreseen to start in 2013, with both resales and prices turning negative.

This forecast is in line with the timing of interest rate increases, which we expect will start to take hold in 2013.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
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Follow up to ADU's and Basement Apartments are now legal in Ontario due to Bill 140

2012-02-17T09:28:00.000-05:00

This is a follow up to my previous post about basement apartments becoming legal in Ontario for any age of property. It's also called an ADU - Accessory Dwelling Unit

The City of Mississauga is planning on come on board with this, but there are public information
meetings and zoning by-laws that must be updated and changed to reflect the new law. This process requires more public meetings and then council must approve the changes, I imagine it will take a while.

I'm still waiting to hear back from someone in planning department on a couple of questions.

Here is the link to our webpage with all the information :

Link to City of Mississauga Website about ADU's

You can register at :

Register for meeting about ADU's at City of Mississauga

As I find out more information about these ADU's and basement apartments in Mississauga and Ontario I'll post it here.

Thank you,

Mark

2012 TREB MLS® Sales Monthly Time Series with Trend Line

2012-02-17T06:53:00.001-05:00

This chart plots monthly MLS® sales since January 1995. The blue line shows actual sales. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual sales must occur to change the direction of the trend.

Mortgage interest rates are going up!

2012-02-16T11:55:00.000-05:00

This was the advice from a mortgage person that just sent me information
about what's happening with mortgage lending rates. It seems that the
'specials' for the fixed rate mortgages are dissappearing. If you are
purchasing or renewing, now is the time to lock in, assuming that's the
route you want to go. Read about it below.

You know my advice, go variable, read more about it here:

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best!
Mark

Hi Mark ,

Last few days we have seen quite a few lenders have cancelled the special
rates for 4 year fixed @2.99%. I expect all lenders will follow.

What can you do to help yourself?

If you have put a purchase offer, get these special rates ASAP. (Still some
lenders have great rates.)
Unforturnately most banks don't offer these rates for pre-approval.
But we do have some good news for clients to be pre-approved and hold these
historical low rates.

3 year fixed rate @2.89% available for pre-approval, rate hold for 120 days
4 year fixed rate @ 2.99% for high ratio mortgage, 3.09% for conventional
mortgage, rate hold 90 days for pre-approval.
5 year fixed rate @ 3.19% for high ratio mortgage, 3.29% for conventional
mortgage, rate hold 90 days for pre-approval.

These rates won't last long, so please act quickly if you are looking to buy
or refinance

Sales for the first half of February up by more than 9% compared to the same period last year Toronto Real Estate Board

2012-02-16T09:54:00.002-05:00

Below is the latest report from the Toronto Real Estate Board regarding the sales for the first half of February, up by more than 9% compared to the same period last year.

GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures

Toronto, February 16, 2012 - Greater Toronto REALTORS(r) reported 3,206 sales through the TorontoMLS(r) system through the first 14 days of February 2012 - up by more than nine per cent compared to the 2,933 sales reported during the same period in 2011. New listings were up by 13 per cent over the same period.

"The GTA resale home market became better supplied during the first 14 days of February. If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rates of price growth later in 2012," said Toronto Real Estate Board (TREB) President
Richard Silver.

The average selling price during the first 14 days of February was $491,493 - up by nine per cent compared to the first 14 days of February 2011. On average, sellers received 99 per cent of their asking price and their homes were on the market for an average of 25 days.

"Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA. There is not a mismatch in expectations, so homes sell quickly at close to the asking price," said Jason Mercer, TREB's Senior Manager of Market Analysis.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm