Archive for May 2010

When you signed your mortgage a few years back, you were thrilled with the rate you had negotiated: possibly the lowest in your home-owning memory. That was then.

Who would have believed that mortgage rates would have continued that marvelous downward trend?  Today, mortgage shoppers are looking at some of the lowest rates in history, and many homeowners with existing fixed-term mortgages are experiencing some “rate envy” about today’s rock-bottom mortgage rates. 

It might be worth a conversation with a mortgage professional about your options. Typically, we think of a fixed term mortgage as a non-negotiable contract. It’s true that there are financial penalties to renegotiate, but, many homeowners have been asking mortgage professionals for a mortgage analysis – a detailed look at the penalties versus the payoffs — to determine whether it’s worth refinancing. Like many Canadian homeowners, you may find that refinancing makes sense.

There are two approaches to refinancing: you can simply pay out the penalty on your existing mortgage and start fresh with a new mortgage, or you can opt for what is termed a “blend and extend.”

Firstly, understand that you won’t reap immediate rewards when you refinance; it will take time to see the savings, since you’ll have some up-front penalties. So, if you’re going to be selling your home in the next year, you’re unlikely to benefit from refinancing now. Your mortgage professional can help you assess your “payback” period: the length of time required to see any savings, based on the penalties you will incur and the difference between your existing rate and your new one.

Speaking of penalties, what does it cost to get out of your existing mortgage? Generally, you can expect to pay out the greater of either a) three months’ interest, or b) the interest-rate differential*. The interest rate differential can be high; in effect, your mortgage lender will expect you to pay them the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates. If it is early in your mortgage arrangement, the penalty may be high.

Don’t be put off by what looks like a big penalty: it’s only one factor in your analysis.

So is it worth it? Only your mortgage professional can tell you for sure, but many homeowners are experiencing significant savings – even with rate differentials of two points (or possibly more).

Begin with a visit to a mortgage professional, who has access to rate information from a wide spectrum of lending institutions – and who can provide you with the kind of detailed analysis you’ll need to assess your options.

In the world of real estate, curb appeal is everything. Whether you’re selling your home, getting ready for some special entertaining or just sprucing things up for spring… you need to make an impact in a flash. The place doesn’t look good from the street, but it’s gorgeous inside? It better be… it takes a lot of work to correct a bad first impression. And a buyer may not take the time to get as far as the front door.

Take some time this month to re-think your home’s’ first impression.

Here are some quick tips to help boost the “wow factor”:

- Take a drive or walk. Then come back down the street towards your home as if you are the one seeing it for the first time. Take a notebook and be objective. Is there clutter in the lawn, driveway, or yard? Maybe the pile of discarded garden pots that you’ve been meaning to recycle? Check out the roof. What about the eaves trough? Anything looking crooked or in need of repair? Any cracked windows or peeling paint? What do you see when you look in the windows? Paraphernalia piled on a window ledge? Tatty curtain liners? Make a note of everything you see.

- A yellow front door. Real estate agents have joked that they can sell any house – if the front door is painted yellow. Or if the home smells like green apples! What does this tell us? Savvy agents know how easy it is to impress buyers with a little “spit & polish” and a dash of flair. Your front door is a focal point – make sure it looks fabulous.

- Sparkling windows. Your windows and doors must not only be in excellent repair, but the glazing must be sparkling clean too. If the exterior of your home is well kept, you’re sending a signal that everything else is well cared for, too.

- A pot of pansies is worth its weight in gold. Make sure you have some lovely pots of flowers flanking the entrance of your home. If you’re making an impression in the winter, it’s worth beautifying your entranceway with two urns of evergreens.

- Impressive house numbers matched to your home’s “look”, a doorknocker, a kick plate, and sturdy doorknobs say to a buyer: welcome to this solid, well-maintained home. Remember that everything must work…especially the doorbell, the door handle, the swinging screen or storm door, the front porch light, the mail box slot…You can’t afford to slip up – at the entrance of your home.

- Wonderful walkways. An attractive front pathway will entice buyers into your home. A few twinkling lights sprinkled here and there creates a magical mood for late-day visitors. Spotlight a lovely tree or trimmed shrubbery for night time curb appeal too.

- Enhance and downplay. Accentuate the positive and eliminate the negative. If you have a pleasing curved pathway, edge it and line it with boxwood shrubbery. If you have an attached garage, paint it (camouflage it with the colour of your exterior), then make your front door “pop” by painting it an impactful colour.

You’ll be pleased by the big impact that just a little effort can make. If you’re selling your home, then it’s in your best financial interest to make sure your home has great curb appeal. And even if you’re not, imagine how wonderful it will be to welcome family and friends to your own front door!