How " FREE" is Credit Card Balance protection insurance..

Interesting Read

Balance protection insurance is a profit centre for the banks. They find it an easy sell because Canadians are risk averse and worry about paying their credit card bills in a crisis. Most banks charge you for insurance only when you carry a balance from the previous month. But a few, such as TD, charge fees each month.

TD spokeswoman Huma Pabani said customers are told over the phone that the insurance premiums are based on the average daily balance. After verbally agreeing, a customer gets a letter and certificate of insurance in the mail, showing how premiums are calculated.
sales pitch to buy insurance to protect ones balance if one became sick or lost their job is always misinformed about the ‘fee-free’ coverage. There is always a premium charge if you used the card. 
The trend is caused by lower demand for classic credit cards and transfers of balances to lower-cost lines of credit.When it comes to your credit card limit, banks used to raise it without asking and notify you after the fact. Now they are required to get your consent before increasing the limit.

Why do property taxes vary so widely in the city?

Question: Why do taxes very so widely in the city? It is obvious even from the examples in the Globe and Mail that market value based on sales has little relationship to assessments. One is not allowed to compare to other areas when appealing.

Property taxes in the city of Toronto are calculated by multiplying your home’s MPAC (Municipal Property Assessment Corporation) assessment value by the City’s predetermined tax rate and the province’s education rate.

For the 2013 tax year, the rate determined is approximately 0.75 percent of your property’s assessed value. This rate is broken down into two parts: about 0.54 percent for the city tax rate, and another 0.21 percent for the province’s education tax rate. So for a house assessed by MPAC at $450,000, the annual property taxes for this year would be about $3,375.

“The residential tax rate includes a component for the municipal portion of taxes, and a component for the education portion of taxes,” he said. “The municipal portion of the tax rate is set by Council each year, depending on budgetary requirements. Once Council has established its annual budget, the municipal tax rate for each class is determined in an amount that will raise the required amount to fund the various operating programs, services, and capital requirements of the City. This includes amounts needed for all City programs, including police, fire and emergency services, parks and recreation, transportation, libraries, transit, social assistance programs and housing, etc. The education portion of the tax rate is set by the Province of Ontario, in order to raise amounts needed for education purposes across the Province.”

“The residential tax rate applies to all residential property within the City of Toronto, regardless of location and regardless of the type of residential dwelling type. Therefore, with a single residential tax rate, the only variation between the property taxes paid for a property is the Current Value Assessment of the property.”

How your home’s value is assessed by MPAC. Similar to methods used by many appraisers, there are several factors in determining property value. Physical factors such as age of building, construction quality, finishes, basement, garages, pools and more help to determine the value of the structure. Environmental factors also come into play when determining value; location, lot size, traffic patterns, and surrounding green space to name a few.

you see little correlation between market value and assessed values of a property. I believe this is not the case, there is definitely a relationship between the two, but Toronto’s hot market often highlighted by bidding wars can drastically increase a property’s market value. It should be noted, your home’s assessed value can be lower than market value and this may have a favorable effect on your annual property tax.

Of course, your property value could be assessed for more than you think it is worth, which would lead to an increase in property taxes. MPAC allows you to appeal the assessment through a “Request for Reconsideration” (RFR) free of charge. The process allows you to access information on comparables in your immediate neighbourhood in order to help you justify your appeal.  Request for Reconsideration, the tools and resources are readily available, making the process less cumbersome than you might think it to be.

The last part of question deals with comparing properties in different neighbourhoods.Environmental factors are considered when determining the value of a property – one of which is location. For example, all things considered, a home in Rosedale will always be worth more than a home in a less desirable neighbourhood.

Courtsey : from Globe ans Mail

TRENDS AT A GLANCE - CANADIAN REAL ESTATE MARKET -CMHC

Key factors and their effects on housing starts

Mortgage rates: Mortgage rates are expected to increase gradually and steadily, over the forecast horizon. However, they will remain low by historical standards. Current mortgage rates are supportive of housing demand.

Employment :The labour market has gotten off to a slower than expected start in 2013, with employment growing in the first six months at a little over half the rate in 2011 and 2012. Nevertheless, employment is expected to improve during the course of the year and is forecast to grow 1.4% in both 2013 and 2014, which will support Canada’s housing sector.

Income: Growth in incomes is expected to continue, albeit at a moderate pace, on account of modest economic growth in Canada and global markets. As a result, income growth will remain supportive of housing demand over the forecast horizon.

Net migration: Canada’s economy is expected to continue to perform well, relative to its peer countries. Canada should, therefore, continue to attract a high level of immigrants (net international migration) over the forecast horizon, which will support housing demand in the medium to long term.

Population:  Lower population growth among the 25 to 34 year age group is expected to lead to a slight moderation in demand from first-time home buyers this year and over the longer term. Furthermore, Canada’s low birth rate should lessen the demand for additional housing stock in the medium and longer term. Population aging, however, is likely to impact the type and tenure of housing demanded.

Resale market:  Resale market conditions for 2013 and 2014 are expected to be balanced in most local markets. Nevertheless, some price momentum will see the average MLS® price grow roughly in line with inflation in 2013 and 2014.

Vacancy rates:  The average vacancy rates of purpose-built rental apartments across Canada’s metropolitan centres is expected to decline slightly, to 2.5 per cent, in 2013 and remain at that level in 2014. Lower vacancy rates for purpose-built rental apartments over the forecast horizon are expected to help support multiple-unit housing construction, particularly in 2014, through the expansion of the rental condominium market.

Stock of new and unoccupied units: The stock of unabsorbed new housing units has been stable in the second quarter of 2013, indicating continued strength in demand for newly completed homes. In addition, the ratio of the stock of unabsorbed new units to population, a simple gauge to assess potential over-building is close to the historical average. Nevertheless, should the Inventory increase inordinately , builders may delay or reduce the size of some housing projects. This could lead to sharper - than -expected moderation.

My city Toronto and me as A REALTOR

From dinner gatherings to doctor visits, at virtually every point in our daily lives, we as REALTORS® find ourselves engaged in casual conversation about whether now is a good time to buy or sell a home.

My response to this question is an unequivocal, “Yes!”

Our city’s cultural and economic diversity are key factors that attract people from around the world, newcomers are also drawn by Toronto’s outstanding international reputation. According to a study released recently by the international research firm GfK, Toronto ranks eighth on an index that measures the image of cities around the world.

A recent report by National Bank Financial noted that as a result of immigration, our country’s population of 22- to 44-year-olds grew in 2012 at its fastest rate in more than two decades, increasing by 1.1 per cent. This demographic decreased everywhere else in the developed world. Representing 55 per cent of all immigrants to Canada, it is a very significant age group, as it includes individuals who, in their prime home buying years, contribute to the demand for housing throughout the Greater Toronto Area.

Based on more than 5,000 interviews with adults around the world, the study gauges such factors as a city’s international status, physical aspects, amenities, affordable accommodations, people, attractions, and economic and educational opportunities.

Toronto’s eighth place finish also represents the most significant move within the report’s top 10 cities, climbing from the 13th spot when the study was previously conducted in 2011. 

As Torontonians, we should be extremely proud that our city’s image ranks amongst such world centres as London; Sydney; Paris; New York; Rome; Washington, D.C.; and Los Angeles.

Toronto scored highest with respect to friendliness and safety in this study, ranking second and fourth in the world respectively. I believe that Greater Toronto REALTORS® are an excellent representation of these attributes, as we strive to be our most congenial and courteous while interacting with people from all walks of life on a daily basis.

As REALTORS®, I gain great fulfillment from working cooperatively with  other Realtors and from helping our clients realize the dream of home ownership.

Courtsey from President -Toronto Real estate Board

Convenience And Variety Store for sale in Prime Location

Excellent Established Convenience And Dollar Store Business In Busy Area Near Schools And High Rise Buildings,Lots Of Walk-In Customers. High Profit Margin Business

. If You Are Feeling Creative You Have Possibility To Add More Such As Lotto, Western Union Money Transfer.

This Business Has Monthly Income Of $ 28000 Appx And Expenses Are Only Around $ 4000-5000.

Rent Is $ 3,160/Month. Heat &

Hydro Separate

Full Training Will Be Provided,Buyer Can Verify Sale By Working In Store.

Canadian Mortgage and You.

Being a Realtor, I am always facinated by the articles on Finance. I read this article in Toronto Star showing us how to save on your  Mortgage and  few other facts on Mortgage.

If you are First time buyer , buying your next house or buying a real estate as investment is always good know that how you can save on your mortgage.

Do you know that when it comes to find the best rate First time buyer gets the best rate and option as they shopped around, have tight budgets and so fight for every basis point.

The economists found that people who switch banks get a better deal than existing customers, because new customers offer the banks an opportunity to sell more products. So when it comes to mortgage loyalty does not pay well.

The best way to figure out  about your choices are: to compare prices and features, read the fine print on contracts and keep an eye on developments in the news. In this respect, the Internet has been a great leveler. The study also found that mortgage brokers find the best rates . Mortgage brokers are paid by the lender so they aren’t confined to one lender’s products. Their business is very competitive, so the pressure to find the very best rates is high. The study noted that brokers “are a significant factor driving discounts,” reducing the cost of a mortgage on average by 17.5 basis points.

When it comes to saving on your mortgage, there are lots of ways to cut your interest costs, such as
1. Making pre-payments 2. Shopping around at renewal time. 3. Borrowing as little as you can
4. Making as large a down payment as possible.

For instance, say you’re purchasing a home for $200,000.
With a down payment of 20%, or $40,000,
your monthly mortgage payment would be $930.57,
Your interest cost will be $119,170, at an average interest rate of 5 %, amortized over 25 years.

But, if you can put down 25 %, or $50,000, your monthly payment would be $872.41 and your total interest cost would be $111,722 — a savings of about $7,400.

Most mortgages offer pre-payment privileges that let you pay an extra 10 to 25%, per payment or per year. Those payments go directly to the principal and can take years off your
mortgage.

Simply changing from monthly payments to accelerated bi-weekly payments will pay off the mortgage about four years sooner, with an overall savings of more than $25,000 in interest.

If your mortgage is up for renewal ,get the current lower rate, but don’t  change your payment.
For example, if you’re renewing a mortgage from five years ago and your rate is 5.75% and your payment on a $200,000 mortgage was around $1,200, at today’s rates, it would drop to about $900. So If you can keep making the $1,200 payment, every payment, you’ll be whacking an extra $300 off your mortgage balance. You could literally pay off yr mortagage earlier than u imagine.

 Financial planning experts say that, when it comes to saving for retirement, it’s best to start early and save often, even in small amounts.The same principle applies to money that you owe for 25 or 30 years,That extra payment goes to the principal ,that extra dollar gets applied to it’s the last dollar.
What happens when you have closed fix rate mortgage and you wants early exit from your mortgage.

There are few things we should know about Mortgage penalty.

If interest rates go up after you take out a closed mortgage, you can usually get out early by paying a penalty of three months’ interest. Your lender can sign up a new borrower at a higher rate.

But if interest rates go down, you have to pay a penalty that is much higher than three months’ interest. It is based on the interest rate differential (IRD) between your initial rate and the current rate until the end of the term.

An IRD penalty can be a shocker, since your lender wants compensation for having to break your higher-rate mortgage and sign up a new borrower at a lower rate. Lenders calculate these penalties as they wish. There isn’t a formula that everyone has to follow. If you received any rate discounts or cashback rewards when you took out the mortgage, you may have to pay them back on your way out the door. This, too, inflates your penalty.

It is best to find out if the lender is giving you a discount that will be thrown into the IRD calculation when you get out of a mortgage prematurely and  how the penalty is calculated. If
you see anything that says you must pay for the discount or some other extra cost. then you must choose what is best for you.

So choosing the  low rates is not the only criterion when choosing a lender but also to keep in mind what is the option for early payment  of mortgage or exit prematurely should be
also the question you should be asking your lender.

Choose wisely and live happily after that..

Pushpa Dhawan as your Neighbouhood Realtor