When you take out a mortgage to buy a home, you know how much your mortgage payment will be. However, that's not the only cost that comes with owning a home! As budgeting lies at the foundation of a solid financial plan, understanding the total cost of homeownership before purchasing a home is paramount.

One of our mortgage partners Lorena Sarnaglia from The Mortgage Coach, explains the total costs In addition to your mortgage, your monthly budget sheet may include:

▪️Property tax

▪️Home Insurance

▪️Utilities

▪️Condo fees

If you already own a home or are thinking of buying and need help understanding the total cost of owning, please give Unna Real Estate a call. We will provide you with a customized "Home Ownership Total Cost Analysis" that will allow you to prepare for the changes that may have to be made in order for you to succeed through homeownership.

This insightful blog is authored by our mortgage agent partner Lorena Sarnaglia, whose expertise in real estate ensures that readers are well-informed about the intricacies of homeownership costs.

1. Declutter, Clean, and Prepare Your Space

Start by giving your home a deep clean to create a fresh environment for the cooler months. Dust surfaces, vacuum all rugs and carpets, mop the floors, and clean the windows. This is also an excellent time to declutter your living areas, putting away any summer-specific items. Organize your belongings thoughtfully, packing away seasonal items so they’ll be ready for use when needed.

Don’t forget to check your gutters. Clear them of leaves, twigs, and debris to prevent clogs that can lead to water damage. If your roof is accessible, use a leaf blower to clear off the debris. While you’re at it, take a look for any necessary repairs to keep your home secure from potential storms or heavy winds.

2. Make Your Home Weather-Resistant

With cooler days on the horizon, you’ll want to ensure your home is well-insulated. Examine windows and doors for any gaps or cracks where air could escape. Apply caulking or install weatherstripping to seal those areas. You can also use door draft stoppers to help retain heat and block cold air from seeping in.

3. Tune Up Your Heating System

Before the cold sets in, ensure your heating system is ready to perform. Schedule an inspection with a professional to check your furnace or heating unit. This will help guarantee that everything is working efficiently, reducing the chances of unexpected breakdowns in the middle of winter. Also, make sure to clean or change your air filters regularly. Consider installing a programmable thermostat to maintain comfortable temperatures while saving energy.

4. Add Cozy Touches to Your Decor

Fall is the perfect season to refresh your home’s interior by incorporating warm, cozy accents. Swap out light summer fabrics for heavier blankets, pillows, and throws in autumnal hues like burnt orange, deep red, or mustard. Introduce fall-themed decor—such as pumpkins, wreaths, and candles—to create a welcoming seasonal atmosphere.

For an extra cozy feel, consider adding fall fragrances throughout your home. Diffusers with essential oils, scented candles, or simmer pots with cinnamon, vanilla, or pine will fill your space with the comforting scents of the season.

5. Prep Your Outdoor Spaces

Don’t forget about your outdoor areas as fall approaches. Trim back any overgrown plants, rake up fallen leaves, and either store or cover outdoor furniture. If you enjoy gardening, now’s a good time to plant fall-blooming flowers or vegetables. Be sure to clean and put away your gardening tools to protect them from the elements.

By following these steps, your home will be well-prepared to embrace the fall season with ease.

Buying a first home is a significant milestone, but it can also be a complex and stressful process. Here are five big mistakes that first-time homebuyers often make:

1. Not Getting Pre-Approved for a Mortgage

Why It's a Mistake: Without pre-approval, buyers might fall in love with homes they can’t afford. Pre-approval also shows sellers that the buyer is serious, which can be an advantage in a competitive market.

Avoiding the Mistake: Get pre-approved for a mortgage before you start house hunting to know your budget and demonstrate your credibility to sellers.

2. Overestimating What They Can Afford

Why It's a Mistake: Many first-time buyers focus on the maximum loan amount they qualify for rather than what they can comfortably afford. This can lead to financial strain and difficulty meeting monthly payments.

Avoiding the Mistake: Create a realistic budget that includes all homeownership costs, such as property taxes, insurance, maintenance, and utilities.

3. Skipping the Home Inspection

Why It's a Mistake: Some buyers might skip the inspection to save money or speed up the buying process. However, this can lead to unexpected and costly repairs after the purchase.

Avoiding the Mistake: Always invest in a professional home inspection to uncover any potential issues with the property before finalizing the purchase.

4. Failing to Consider Resale Value

Why It's a Mistake: First-time buyers may focus only on their immediate needs and preferences, neglecting to consider how the home’s features, location, and condition will affect its resale value.

-**Avoiding the Mistake:** Think about long-term considerations, including neighborhood trends, school districts, and the potential for future growth or decline in the area.

5. Making Decisions Based on Emotion

Why It's a Mistake: Buying a home is often an emotional experience, but making decisions based solely on feelings can lead to overpaying or choosing a home that doesn’t meet all of your practical needs.

Avoiding the Mistake: Stay objective and stick to your budget and checklist of must-haves, even if you fall in love with a property. Take time to evaluate all options before making a decision.

Avoiding these common pitfalls can help ensure a smoother and more successful first home-buying experience. We from Unna offer the best tools and assistance to make sure you won’t fall under these mistakes! Call us Today!

As the vibrant colours of fall begin to take over, it's the perfect time to get your home ready for the cooler months ahead. Here are five essential steps to ensure your home is cozy, safe, and energy-efficient this fall:

1. Inspect and Clean Gutters: Falling leaves can quickly clog your gutters, leading to water damage and potential roof issues. Clean out any debris and ensure your gutters are securely fastened to prevent problems during autumn rains.

2. Seal Windows and Doors: Drafty windows and doors can cause your heating bills to skyrocket. Check for gaps or cracks around frames and use weather stripping or caulk to seal them up, keeping your home warm and energy-efficient.

3. Service Your Heating System: Before the cold sets in, have your furnace or heating system inspected by a professional. Replace filters and make any necessary repairs to ensure your system is running efficiently all season long.

4. Check Smoke and Carbon Monoxide Detectors: As you start using your fireplace or heating system more frequently, it's crucial to ensure your smoke and carbon monoxide detectors are in working order. Replace batteries and test each unit to keep your family safe.

5. Prepare Your Yard: Rake leaves, trim back overgrown shrubs, and store outdoor furniture to protect them from the elements. Additionally, consider aerating your lawn and fertilizing it to help it recover from the summer heat and prepare for winter.

By following these simple steps, you can ensure your home is well-prepared for fall, keeping it safe, warm, and comfortable throughout the season.

• Extra Income: Renting out your house or even just a room on Airbnb can generate significant additional income. This can help cover mortgage payments, property taxes, or fund other expenses or investments.

• Flexible Use of Space: Airbnb allows you to rent your property only when it's convenient for you. You can block off dates when you want to use the space yourself, ensuring that it’s always available when needed.

• Meeting New People: Hosting on Airbnb gives you the opportunity to meet travelers from all over the world. This can be a culturally enriching experience and a way to build connections with people from different backgrounds.

• Property Maintenance: Regularly hosting guests can encourage you to keep your property well-maintained and up-to-date. The steady flow of visitors means you’ll likely keep up with repairs and improvements more regularly than you might otherwise.

• Utilization of Unused Space: If you have extra rooms or areas of your house that aren’t being used, Airbnb allows you to make the most of that space. Instead of letting it go to waste, you can turn it into a profitable asset.

Summary: Unna Real Estate Group can provide a comprehensive evaluation of a client's property, advising on the best way to present it on Airbnb. You can help set competitive pricing based on market trends, location, and property features to maximize earnings

Here are three important reasons why you should get pre-approved when buying a home.

Save Time

Getting pre-approved for a mortgage is important because it informs you of how much the lender is willing to lend you and helps you understand how much you can afford. This information makes it easier to determine where to buy and what type of property to consider.

It doesn't mean you need to spend the entire amount offered to you by the lender; you can purchase a home that is priced lower than your pre-approved amount.

To be Protected

You will know your interest rate and regular payment amount, what you are paying toward principal and interest, and also how long it will take to pay off your mortgage. It will also protect you from future interest rate increases.

Peace of Mind

Some lenders will require you to pay off certain debts before closing to receive your loan. This will save you from future concerns.

Buying:

When buying a property, several costs are involved beyond the purchase price. Here are the key expenses that buyers should consider:

1. Down Payment

It can vary from 5% to 20% (in some special cases more) of purchase price

2. Closing Costs

Closing costs include various fees and expenses associated with finalizing the real estate transaction. They typically range from 2% to 5% of the purchase price and may include:

• Loan Origination Fees: Charged by the lender for processing the loan application.

• Appraisal Fee: Paid to a professional appraiser to determine the property's value.

• Home Inspection Fee: Paid to a professional inspector to check the property's condition.

• Title Insurance: Protects the buyer and lender against disputes over the property’s ownership.

• Recording Fees: Paid to local government entities for recording the property's sale.

• Attorney Fees: If required or desired, for legal representation during the transaction.

• Credit Report Fee: Charged by the lender to check the buyer’s credit history.

3. Property Taxes

Buyers may need to pay a portion of the annual property taxes at closing, depending on the time of year the purchase is made. These are often prorated based on the closing date.

4. Homeowners Insurance

Lenders typically require homeowners insurance to protect the property against damage or loss. The first year’s premium is usually paid at closing.

5. Private Mortgage Insurance (PMI)

If the down payment is less than 20% of the home's value, the lender may require PMI. This insurance protects the lender if the borrower defaults on the loan. The cost of PMI varies based on the loan amount, down payment, and credit score.

6. Homeowners Association (HOA) Fees

If the property is part of a homeowners association, buyers may need to pay a portion of the HOA fees at closing. These fees cover the maintenance and upkeep of common areas and amenities.

7. Prepaid Interest

If the loan closes in the middle of the month, buyers may pay interest on the mortgage for the days between the closing date and the end of the month.

8. Moving Costs

Moving costs can include hiring movers, renting a moving truck, purchasing packing materials, and other related expenses.

9. Miscellaneous Expenses

There may be other costs, such as utility setup fees, repairs, or upgrades needed before moving in.

Being aware of these costs can help buyers budget effectively and avoid surprises during the home-buying process.

Selling:

Selling real estate involves various costs that sellers should be prepared for. Here's a breakdown of the key expenses:

1. Real Estate Agent Commissions

• Typically the largest expense, real estate agent commissions are usually around 5% to 6% of the sale price. This amount is split between the seller's and buyer's agents. For example, if a home sells for $300,000 with a 6% commission rate, the total commission would be $18,000.

2. Closing Costs

• Sellers are responsible for certain closing costs, which can include:

  • Title Insurance: Protects the buyer and lender from title defects. The cost varies by location and sale price.

  • Escrow Fees: Fees for the escrow service that manages the transaction, including holding and distributing funds.

  • Transfer Taxes: Local or state taxes imposed on the transfer of property ownership. The rate varies by location.

  • Attorney Fees: If an attorney is involved in the sale, their fees are part of the closing costs.

  • Recording Fees: Fees charged by the local government to record the sale of the property.

3. Home Repairs and Improvements

• Sellers often invest in repairs or improvements to make the property more appealing to buyers. This can include fixing structural issues, updating outdated features, or making cosmetic improvements. The cost varies depending on the scope of the work.

4. Staging Costs

• Staging involves arranging furniture and decor to make the home more attractive to potential buyers. Staging can significantly impact the property's perceived value and marketability. Costs vary depending on the size of the home and the extent of the staging.

5. Mortgage Payoff

• If the seller has an existing mortgage, the remaining balance must be paid off at closing. This includes any prepayment penalties that might apply.

6. Capital Gains Tax

• If the property has appreciated in value, sellers might owe capital gains tax on the profit. However, primary residence exemptions may apply. For example, single homeowners can exclude up to $250,000 of capital gains, and married couples can exclude up to $500,000, provided they meet certain conditions.

7. Home Warranty

• Some sellers offer a home warranty to the buyer as a selling incentive. This warranty covers repair costs for major home systems and appliances for a set period after the sale. The cost usually ranges from $300 to $600.

8. Utilities and Holding Costs

• Sellers may need to continue paying for utilities, property taxes, and homeowners insurance until the sale is finalized. If the property is vacant, there may also be costs associated with maintaining the property, such as landscaping and security.

9. Relocation Costs

• These costs include expenses related to moving to a new home, such as hiring movers, renting a moving truck, and temporary storage.

10. Miscellaneous Fees

• There may be additional costs, such as notary fees, courier fees, and fees for obtaining required documents like a property survey or homeowners association documents.

Understanding these costs can help sellers budget appropriately and maximize their net proceeds from the sale.

What to know exactly how much will cost if you buying and selling real estate? Please contact us and find out what is included in our service fee!

Here are 5 things to avoid as a Buyer during the your process when facing multiple offers and bidding wars:

• Do not get emotionally attached to a property before the deal is Firm: Avoid attaching yourself emotionally to a home before the conditional period ends. Be prepared for the possibility of not securing the property due to being outbid or issues with financing or inspection. Getting emotionally attached can lead to disappointment if you don't get the property and may affect your future choices.

• Do not go in Blind: It's crucial to work with a Buyer Agent who represents your interests and guides you through determining the property's market value. Stay in touch with your mortgage broker to understand your financial situation and the steps required for financing.

• Do not wait: Act swiftly when you find a property of interest. In today's fast-paced market, properties are selling within hours. Make necessary inquiries, ask questions, and decide promptly whether to present an offer to avoid missing out.

• Do not go over what you're comfortable with: Never exceed your comfort level when making an offer. Ensure that the price you offer aligns with what you are comfortable paying, even if it means losing out on a few offers. Find a balance where you won't regret the decision the next day.

• Do not quit: The home buying process can be stressful, especially in a market with multiple offers. Despite setbacks, work closely with your Realtor to adapt your search criteria and persevere in finding the right home. Don't give up on your goal of buying a property.

Laneway & Garden Suites in Toronto

(Laneway & Garden Suites… What are they? Why are they becoming so popular?)

The housing crisis in the Greater Toronto Area, particularly in the city's core, persists despite market changes, with property values remaining high and homeownership challenging for many.

In response to financing challenges, homeowners have explored options like secondary units to generate extra income for mortgage support, with basement or second-floor apartments traditionally being popular choices.

The Changing Lanes Program introduced by the City of Toronto in 2018 allows homeowners to build Laneway Suites, providing new rental housing options within established neighbourhoods.

A Laneway Suite is a self-contained residential unit situated on the same lot as the main house, typically located in the backyard next to a public laneway, offering additional housing choices.

The Changing Lanes program simplifies the process for homeowners to construct a laneway house without the need for various approvals, making it easier to enhance their property.

Homeowners interested in building a Laneway Suite can reach out to the City of Toronto to determine eligibility based on property criteria.

For properties without access to a laneway, the City of Toronto introduced Garden Suites in 2022, offering detached housing units in the backyard as an additional housing option.

Garden Suites, like laneway suites, provide smaller housing units that can accommodate family members or serve as rental units, aligning with the city's efforts to diversify housing options.

Both Laneway and Garden Suites contribute to various housing factors, increasing property value, expanding rental opportunities, and enhancing homeowners' financial flexibility.

These initiatives offer additional housing solutions and benefits to homeowners, tenants, and buyers in Toronto's competitive real estate market.

As always, different rules and regulations apply on every property, feel free to contact us to discuss this or any other Real Estate Related topic. 

When to Sell Your Home…

(when is the best time to sell my home?)

The question of when is the best time to sell my home comes up almost every single day, the truth is there is no black-and-white answer to this question but this may help you find the right answer.

Some people buy a home to eventually sell it and turn a profit. This can be a very lucrative idea when the market is right, but if more people are selling than buying, it can be particularly tricky.

Not everyone wants to hold onto a home for their lifetime. The real estate market can herald a lot of money when the timing is right, and for someone who is comfortable with the process of selling and buying again, this can be a very exciting possibility. It is, however, important to understand how the timing can influence the value of your home.

A good rule of thumb: when in doubt, talk to a Professional. If there are ever any questions on the fluctuating market, your Sales Representative can answer them all. It is always important to contact your preferred Real Estate Professional. The one you trust most.

There are so many factors to keep in mind when trying to figure out the best time to sell your property. Remember that it will always depend on your specific neighbourhood and even the type of property you want to sell.

With this in mind, there are a few chief rules to consider when finding the right time to sell your home:

- Is the market good for selling? For example, are there more people looking to buy than sell?

- Will you be buying a new home once your existing one is sold?

- Is there a better time to sell your home? (i.e. will you make more of a profit if you hold onto the property?)

Selling a home can be exhausting, but with the right advice and a good guide of current market values, you can make the selling experience comfortable and stress-free.

We at Unna Real Estate Group are always ready to answer all of your questions and concerns. Feel free to contact us anytime.

New Content: Lower Monthly Payment or Paying More Interest?

Introduction: sConsidering buying a home? Picking the right mortgage term is crucial. In Canada, the standard is a 25-year amortization, but 30-year terms are gaining popularity due to rising interest rates. Starting August 1, 2024, first-time home buyers can opt for 30-year terms for newly built home, Understand the new rules:

If you're not a first-time buyer, you can still get a 30-year mortgage with a 20% down payment or by choosing an uninsured mortgage. Unsure about term length? Think about whether you want lower monthly payments or are okay with paying more interest over time.

1. Advantages and Disadvantages of a 30-year Mortgage Term:

   • Pros: Lower monthly payments make homeownership more affordable, especially for younger buyers. Increased borrowing power.

   • Cons: Higher total interest payments over the mortgage's life.

2. Impact of the New Rule on the Canadian Housing Market:

   • This rule change could stimulate demand for newly built homes, potentially boosting construction activity. However, it may also artificially inflate prices if demand outpaces supply.

3. Eligibility Criteria for a 30-year Mortgage with Less than a 20% Down Payment:

   • Currently, a down payment higher than 20% is required for a 30-year mortgage. With the new rule, first-time homebuyers can choose this option even with less than 20% down, but it's limited to newly built homes.

Our Opinion: The government should extend this option to all homebuyers, regardless of property type. This would promote affordability and accessibility in the housing market.

"Click the link below to schedule a personalized 1:1 call with us and explore the best options for you. If you're considering purchasing new construction, sign up for our newsletter to stay updated on all projects in Toronto and the GTA."

In response to the challenges faced by young Canadians in saving for their first home, the government has proposed significant changes to the Home Buyers' Plan (HBP). These changes include increasing the withdrawal limit and extending the repayment grace period, aimed at easing the path to homeownership for first-time buyers.

Understand: Let's break it down:

1. The Problem: Young Canadians often struggle to save enough money for a down payment on a house and to qualify for a reasonable mortgage.

2. The Solution - Home Buyers' Plan (HBP): The government has a program called the Home Buyers' Plan (HBP) which lets you take money out of your retirement savings (RRSPs) to buy or build a home.

3. Current Limits: Right now, you can withdraw up to $35,000 from your RRSPs under the HBP to put towards buying a home.

4. Proposed Change: The government wants to make it easier for people to buy their first home. So, in the proposed Budget 2024, they suggest increasing the limit from $35,000 to $60,000. This means you could take out more money from your RRSPs to use towards buying your home.

5. Extended Repayment Grace Period: Also, if you've taken money out of your RRSPs under the HBP between January 1, 2022, and December 31, 2025, the government wants to give you more time to pay it back. Normally, you have to start paying back the money within two years, but with this proposal, they're extending that grace period to five years. This way, you have more time to focus on paying your mortgage and getting settled in your new home without the added pressure of repaying the RRSPs.