Don’t get caught at the last minute with a mortgage that is coming up for renewal. Enter your information by clicking on the link and we will be in contact with you well in advance of your renewal to ensure that you get the best rate and product to suit your needs.

Mortgage Renewal Reminder Sign-Up

Calgary, AB — April 15, 2010 — The Real Estate Investment Network (REIN™) a Division of Cutting Edge Research Inc. is pleased to release its 2010 update to The Calgary Transportation Effect, which details the impact of the upcoming transportation improvements, part of the government stimulus packages, on housing in Calgary.  The report’s research concludes that prices in select Calgary neighbourhoods will receive a 10% to 20% premium, over and above what the rest of the city’s market does in the coming years.

The failure of the Province of Alberta to reach a deal with the Tsuu T’ina nation resulted in an update to the transportation report as different communities will now be impacted by the southwest portion of the ring road running entirely through city land.

The report also includes more detailed information on the addition of the West LRT Line and proposed future extensions and expansions to the Calgary LRT network.      

REIN’s detailed research has found that there are three “Tiers of Impact” that will occur in the Calgary region:

First Tier, which will witness the most positive effects from the combined ring road and LRT improvements: NE — Saddle Ridge, Martindale, Falconridge, Taradale, Castleridge; NW — Rocky Ridge, Tuscany, Scenic Acres, Ranchlands, Silver Springs, Hawkwood.

Second Tier, which will feel positive impacts from either the LRT or the ring road: NE —, Coral Springs, Temple, Montery Park, Pineridge, Abbeydale, Applewood Park, Marlborough Park, Penbrook Meadows; NW — Bowness, Greenwood, Valley Ridge. SE — Chapparal, McKenzie Lake, Cranston, Auburn Bay, Mahogany, Copperfield, and Sundance

Third Tier regions will feel the ripple effect outward from the main impact areas; these include Cochrane, Balzac and Airdrie, as well as new developments near the Ring Road. 

When the Ring Road and the new LRT stations are completed, communities within an 800-metre radius of these transportation improvements can anticipate a 10%–20% increase in their property values. The largest effect will be felt in older and more established neighbourhoods.

“Our research shows that when a highway increases accessibility to the region by providing new access or shorter commute times, residential property values rise by 12%–15% over similar properties not affected by the new highway,” says Don Campbell, author of the best-selling Real Estate Investing in Canada. “People need to understand that commute and travel distances are now measured in minutes, not kilometres.”

The 2010 Calgary Transportation Effect report reviews the peer-reviewed academic research that has been conducted on the impact of light rail, highway expansion and road improvements in other parts of the world

__________________________________________________

Brad Gavin – VP, MBN Group of Companies

Mortgage Broker – MBN Mortgage Ltd (Associated with Mortgage Intelligence)

When investing in real estate, sometimes it’s necessary to look beyond your own backyard. The Real Estate Investment Network (REIN), a national organization of investors, has compiled what it says are the top 10 Canadian cities in which to invest. Few are major cities and some are surprising. Don Campbell, president of REIN, as well as one of the researchers on the study, says the results are based on factors such as planned transportation improvements, or if the area’s average income, population growth and job growth are increasing faster than the provincial average.

Oddly enough, nothing east of Ontario shows up on the list, and while Mr. Campbell says cities like Halifax, Saint John and Moncton “still provide decent returns,” the top cities are ones that will outperform the national average between 2010 and 2015.

1. Calgary

Calgary is “poised to outperform the average by a wide margin,” says Mr. Campbell, making it the top-ranked city.

After two years of declining average resale housing prices, the Canada Mortgage and Housing Corp. has predicted they will increase year-over-year in 2010.

The REIN report credits the downturn to a much-needed correction, and that it was “economically impossible for the [Calgary] market to continue at the pace at which it was heading.” But now that it is coming out of the recession, along with economies elsewhere, Calgary’s strengths in producing food, fuel and fertilizer will boost its growth.

“Calgary is in a unique economic and geographic position to take advantage of the direct and indirect jobs this increase in demand will create,” says Mr. Campbell, who adds that with strong in-migration and renewed affordability, the city provides a good buying window for long-term investors.

2. Kitchener-Waterloo-Cambridge, Ont.

REIN refers to Canada’s Technology Triangle as the “economic Alberta of Ontario.” That means KWC is not only seen as the economic engine of the new Ontario economy, but also that it “will outperform all other major regions in eastern Canada,” Mr. Campbell says. For indicators, he points to job growth, student growth and a new light rapid-transit system.

3. Edmonton

Edmonton sits near the top of the report’s list because of its future potential. Calling it a “perennial overachieving market,” REIN says the city is a “growing market, [with] an increasing population, and a forward-looking leadership.”

It will also be the main benefactor of energy development in Western Canada, says Mr. Campbell, resulting in a “very affordable, strong rental market with strong in-migration from across Canada.” Major infrastructure improvements, such as the ring road and LRT expansion, will be key.

4. Surrey, B.C.

British Columbia’s second-largest city is growing so fast it could become even bigger than Vancouver.

“Just a decade ago, it was known as the punch line to many a joke,” Mr. Campbell says. But with two border crossings to the United States, links to five major highways, deep sea docks and four railways, Surrey is a prime location to do business, he says.

Although there may be a strong rental market, it’s a city that requires a closer examination, taking “neighbourhoods and even the street’s characteristics into consideration when deciding where to purchase,” REIN warns.

5. Maple Ridge & Pitt Meadows, B.C.

The Translink and Gateway Project infrastructure improvements have made these B.C. towns the “most accessible regions in [Vancouver’s] Lower Mainland,” the report says. They’ve come a long way, Mr. Campbell says. The unofficial motto of Maple Ridge used to be “You can’t get there from here.” As a result of poor infrastructure in the past, property values have been historically low in this area. But with the improvements, it’s predicted an additional 400 business will move into the area, REIN says, improving the demand for both residential and commercial property.

6. Hamilton, Ont.

“The perception no longer matches the reality of Hamilton,” Mr. Campbell says. “The city’s leadership, as well as local business owners, have transformed what was once a rough-and-tumble steel town to a city with economic vitality, diversification and population growth.” REIN applauds Hamilton’s leadership as being innovative in revitalizing the city, adding Hamilton

“has beaten its overall building permit value for the second year in a row.”

7. St. Albert, Alta.

“Long thought of as a satellite of Edmonton, St. Albert is poised to be the biggest benefactor of the new Edmonton Ring Road,” says Mr. Campbell, who adds that as the transportation access improvement is completed, the city will begin to experience “a flood of not only new residents, but also the relocation of companies and jobs into town.” Other attributes of the city include consistently low vacancy rates, high rents and strong property value increases. It also helps that the city has “turned itself into a major retail centre for the northern region while adding to its industrial and commercial job base,” REIN says.

8. Barrie & Orillia, Ont.

These two cities have been shedding the perception of being just cottage country and have become a “hot bed for growth,” Mr. Campbell says. University and college expansion campuses have brought new life to the area, and the addition of Go Train access has made them viable commuter towns for the Greater Toronto Area, REIN says. For investors, this all adds up to healthy property appreciation, a respectable vacancy rate of 4.7% and the youngest residents on average in a given Census Metropolitan Area (CMA).

9. Red Deer, Alta.

In the centre of the Edmonton-Calgary corridor, Red Deer is not close to either. But REIN suggests reviewing city plans, as there will be a lot of hidden opportunities. “The whole central Alberta region has witnessed very strong population and job growth, as well as a real estate market that has continually outperformed most other regions of the country,” Mr. Campbell says. He adds that with a continually expanding industrial and commercial job base, Red Deer is in a good position to “take advantage of the inevitable growth in demand for food, fuel and fertilizer.”

10. Winnipeg

Winnipeg is often left off the real estate investment radar, but Mr. Campbell says it’s a good city for “consistent economic performance — not too high during booms and not too low during downturns.” But people should stick to buying top-quality properties. REIN also notes that housing prices, after dipping last year, are back to double-digit increases, which could “lead to an influx of inventory on the market.” But with one of the lowest vacancy rates in the country, at 1.2%, there is room for movement. Another positive factor for the city is international immigration is expected to increase under the provincial nominee program being undertaken by the government.

Financial Post

Read more: http://www.financialpost.com/news/Where+cities/3369599/story.html#ixzz0w83R2BY5

Economic activity in Canada is unfolding largely as expected, led by government and consumer spending. Housing activity is declining markedly from high levels, consistent with the Bank’s view that policy stimulus resulted in household expenditures being brought forward into late 2009 and early 2010. While employment growth has resumed, business investment appears to be held back by global uncertainties and has yet to recover from its sharp contraction during the recession.

The Bank expects the economic recovery in Canada to be more gradual than it had projected in its April MPR, with growth of 3.5 per cent in 2010, 2.9 per cent in 2011, and 2.2 per cent in 2012. This revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada. The Bank anticipates that business investment and net exports will make a relatively larger contribution to growth.

Inflation in Canada has been broadly in line with the Bank’s April projection. While the Bank now expects the economy to return to full capacity at the end of 2011, two quarters later than had been anticipated in April, the underlying dynamics for inflation are little changed. Both total CPI and core inflation are expected to remain near 2 per cent throughout the projection period. The Bank will look through the transitory effects on inflation of changes to provincial indirect taxes.

Reflecting all of these factors, the Bank has decided to raise the target for the overnight rate to 3/4 per cent. This decision leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.

The Bank of Canada may pause on its rate increases to assess the effects of the 2 increases already implemented before announcing any further rate increases.

After years of paying down your mortgage, you’ve built up a significant amount of equity in your home. Instead of using costly credit cards or high-interest bank lines of credit, you can use that equity to your advantage with a home equity loan or line of credit. And, you’ll save a considerable amount of money in the process.

 Home equity loan: This is a traditional loan in which a borrower uses built-up home equity as collateral. Following approval, the homeowner receives a lump-sum payment and makes fixed monthly payments over a predetermined period of time.

 Home equity line of credit (HELOC): Like a line of credit, homeowners can draw funds as needed, up to a set limit. Once funds are drawn, the borrower must pay a minimum monthly payment and can repay the entire amount owing at any time. Unlike a traditional home equity loan, interest is only paid on funds that have already been withdrawn.

 Two major uses of home equity-related financing are home renovations and debt consolidation. Renovations that can potentially boost the value of a home can offset the up-front borrowing costs. Similarly, using home equity to shift debt from high-interest credit cards to a much lower-interest loan can significantly reduce interest payouts and improve overall cash flow.

 As with all forms of debt, however, homeowners should always borrow conservatively by staying well within their overall debt limits and should always try to pay more than the minimum payment to maximize credit ratings and reduce long-term interest payments.

 A mortgage professional can review your home equity options and compare this borrowing method to other financing alternatives.

For more information, contact me today!

What eager first-timers need to know before the house hunt

You’ve saved for your down payment, you’ve crunched the numbers and you’ve decided on the neighbourhood where you want to live – but are you really ready to start shopping around?

“Buying your first home is one of life’s most exciting milestones, but there are lots of steps on the way to crossing the threshold as an owner for the first time,” says Brad Gavin, mortgage consultant with Mortgage Intelligence in Calgary. “To make sure this process goes smoothly, you’ll need to get financing advice right from the get-go and do some work in advance.”

Brad breaks the process down with the following tips: 

Get your down payment and deposit ready. A down payment must come from your own resources, and in most cases must have been held in your account for at least 90 days. Using a gift from your parents or other family member for a down payment?  You’ll need a letter stating that it is actually a gift and does not need to be re-paid. These funds will likely need to be deposited in your account two weeks before your purchase closing date.

The Home Buyers’ Plan is another financing option for first-time buyers. It allows you to withdraw up to $25,000 ($50,000 per couple) from your RRSP to buy or build a home. 

Keep in mind that when placing an offer, a deposit is usually required. It can be all, or part, of a down payment.

Figure out what you can afford. The best way to do this is by talking to a mortgage expert and getting pre-approved for a mortgage. A mortgage consultant can provide examples of what monthly payments and home buying costs will be, to eliminate surprises.

“A major benefit of a pre-approval is that most financial institutions will lock-in a rate for up to 120 days,” advises Brad.  “This is very helpful if you’re buying in a rising rate environment.” 

Get in touch with the professionals. Think of home buying as a team sport – a mortgage consultant can help you find a good real estate agent, real estate lawyer, home inspector and home insurance agent. Be sure to get in touch with these professionals early in the buying process to avoid last-minute scrambles.

Come up with an offer strategy. In competitive real estate markets, it is common for vendors to put off accepting offers until a particular date. This means buyers may be bidding for a home along with several other parties. It’s easy to get caught up in the emotion, so it is important to decide on a maximum price before bidding and to stick to it.

Choose your mortgage strategy. Ask yourself: Do I want the stability of a fixed-rate mortgage or am I comfortable with the potential rewards and risks of a variable-rate loan? A mortgage expert can help you decide which one makes the most sense for your financial situation, as well as help you understand your payment options and the other features of various types of mortgages.

Get ready to close. When buying a home, it pays to learn about closing costs, which can represent up to 3 per cent of the purchase price, including land transfer tax, lawyer’s fees, appraisal fees, title insurance and home inspection fees.  A mortgage professional can help estimate how much these will cost and offer ideas for how you can cover these costs.

”A lot of first-time buyers can’t wait to get out there and house hunt, but they need to understand that this is not a decision to enter into lightly,” says Brad. “But with careful planning and expert advice, you can make your first home – and your first mortgage – work well for you in the long term.”

____________________________________________________

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!

For many people, mortgage payments are their single largest expense. Yet, when financing a home, most Canadians don’t comparison shop to ensure they’re getting the best mortgage rate and terms available. This mistake can cost homeowners tens of thousands of dollars over the course of their mortgage. Here are six ways mortgage professionals can help:

1. ACCESS TO COMPETITIVE RATES.

Brokers deal with multiple competing lenders and can often access exclusive rates. They also have the power to negotiate rate discounts from lenders, which can be passed on to their clients.

2. KNOWLEDGEABLE ADVICE.

Brokers offer consultative service, advice and solutions that are customized to each client’s needs. And unlike banks, brokers work for you.

3. SPEED AND CONVENIENCE.

Brokers will work around a client’s schedule to make the transaction as easy and convenient as possible.

4. PRE-QUALIFICATION.

Whether you’re shopping for a new home or refinancing your existing mortgage, a broker can help you obtain a pre-approved mortgage, often with up to a 120-day interest rate guarantee.

5. PRESERVED CREDIT RATING.

When you shop for a mortgage, there is an accumulation of lender inquiries on your credit bureau report, possibly affecting your credit rating and, ultimately, the rate and terms of your mortgage. This isn’t the case with a mortgage broker, who only does one inquiry yet can still get many competing lenders to quote on your business.

6. PEACE OF MIND.

The Canadian Association of Accredited Mortgage Professionals has a stringent Code of Ethics that members are required to adhere to in order to retain membership.