During a season when change is normal, we expect to see the leaves changing colours, and the weather begins to change, but now our Real Estate Landscape in Ontario looks like it's changing as well.

Recently we've experienced a few rate drops in interest rates with economists saying we shall see more to come. Canada's inflation rate dropped to 1.6% in September, and we've seen a bunch of new mortgage rules that will come into effect shortly. We covered most of the mortgage rule changes in a previous article which can be found here: https://unnarealestate.com/blog.html/news-for-first-time-home-buyers-8289247

One more major mortgage rule change was announced after we published that article. The announcement of the removal of the Mortgage Stress Test when Renewing your mortgage. That is Huge news for homeowners.

Switching Lenders Without Stress Test Borrowers will also benefit from the ability to switch mortgage lenders at renewal without having to undergo another stress test. This change is designed to foster competition among lenders, offering homeowners more flexibility to find better mortgage rates without the barrier of requalification. This is expected to be especially beneficial for those in high-interest-rate environments.

What Does This Mean for Ontario Homebuyers? These reforms are designed to improve access to homeownership amid soaring housing prices. However, there are concerns that increased buying power might lead to further price inflation, particularly in already tight markets like Toronto. As these rules roll out, buyers and investors alike should carefully consider how these changes align with their financial goals and housing plans.

If you’re considering purchasing a home or renewing your mortgage, these rule changes could impact your strategy. We at Unna Real Estate Group are here to help you navigate the evolving market and make informed decisions that suit your needs. Feel free to reach out anytime.

We’re back at it again with a review of Market numbers for the month of September. Lets have a look at the numbers.

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.

This past week, the federal government announced changes that will help some buyers enter the Real Estate Market. If you are a first-time home buyer or if you are considering purchasing a brand new build, these changes are for you.

Here are our major takeaways from the announcement

• 30-Year Amortizations: The expansion to 30-year amortizations can lower monthly payments, making homeownership more accessible. These are now available to all first-time buyers and anyone purchasing new builds.
  

• Higher Insured Mortgage Cap: The increase to $1.5 million allows buyers in high-priced markets to access insured mortgages with lower down payments. So in otherwords you can now purchase a more expensive home with a lower down payment.

It is always important to analyze your personal situation and your Real Estate Goals before knowing if any of these changes will even make a difference for you. Here are a few things to keep in mind when thinking of buying Real Estate.

1. Market Conditions:

   • Interest Rates: Consider current interest rates. Lower rates can make borrowing cheaper, but if rates are high, it might offset the benefits of the longer amortization period.

   • Housing Prices: Evaluate if home prices are trending up or down. In a hot market, prices increase faster than the benefits from these changes.

2. Personal Financial Situation:

   • Affordability: Assess your own financial situation, including your ability to handle mortgage payments, property taxes, and maintenance costs.

     • The recent changes to the mortgage market can create favourable conditions for buyers, but whether it’s a good time to buy depends on several factors:

   • Long-Term Plans: Think about how long you plan to stay in the home and whether the longer amortization aligns with your financial goals.

Overall, if these changes align with your financial situation and the local housing market conditions are favourable, it could be a good time to buy. However, it’s always wise to consult with a financial advisor or mortgage professional to ensure it’s the right move for you.

We’re back at it again with a review of Market numbers for the month of August. Lets have a look at the numbers.

On Wednesday, September 4, 2024, the Bank of Canada announced its third consecutive rate reduction, reducing the key interest rate to 4.25%. It's the third cut since June and the first time the central bank has posted three consecutive reductions since the 2009 global financial crisis.

The rate reduction comes shortly after the recent inflation announcement which gave some hope that our economy is improving. The Bank of Canada governor also mentioned that if the economy continued to improve, we might continue to see some more rate cuts. Their next announcement will be October 23, 2024.

Overall, I strongly believe the rate reduction is good for everyone. There is also a lot of talk about rates coming even lower in 2025, which may be possible. I believe a healthy interest rate is somewhere between 3-4%.

Now, what does this mean for you? Well, it really depends on what kind of situation you're in. I always strongly recommend people to speak to a professional whenever they are thinking about their financial situation, whether it be investing in Real Estate or other investments. Dont be distracted by the media and by what everyone around you is doing... Remember, not long ago, interest rates were almost Free, and they were telling us to take the free money, and many people got hurt.

Always analyze your personal situation. Sometimes, getting your foot in the door is better than waiting around for the perfect time or perfect interest rate. There also tends to be more activity as interest rates drop, which normally leads to price increases in the Real Estate Market.

Either way, at Unna Real Estate Group we're always available to chat with you about interest rates, Real Estate market or answer any other questions you might have. Feel free to reach out to us anytime.

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

We’re back at it again with a review of Market numbers for the month of July. Lets have a look at the numbers.

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!