Edmonton Real Estate Blog

If you are planning to purchase a new build. There are two types are mortgages available. Completion or Draw mortgage. A Completion mortgage is when builder does not require funds require funds until property is completed.  Whereas, in terms of a Draw mortgage, the funds are advanced during the building process. The builder will advise which type is required and you simply advise your mortgage associate.

New builds require 6 to 12 months. In which, the mortgage with a one year rate holds will be required. Minimum down payment is 5%, which the builder will require as a deposit.

Borrowers qualify at time of purchase.  Once your purchase contract is signed with the builder, you have roughly 10 days to work with a mortgage associate to get the financing approved. Within those 10 days, buyers will sign documents and provide supporting documentation for the lender to review.

It is important to note that the lender will recheck credit and employment before possession. So, ensure you don’t finance any large purchases since any changes in your circumstance could negatively affect your application and possibly disqualify you completely.

Aside, from the type of mortgage, builders may differ in their process including upgrades. In some cases the purchase contract will includes all upgrades at the time of purchase. So, the client will be required to decide on their upgrades upfront and the mortgage amount can be determined at time of approval.

Whereas, others the purchase contract simply outlines cost of the base model. Upgrades are to be chosen at a later date and a final price quote will be provided a month before completion. In this case, I will estimate the total cost of all upgrades and submit for a mortgage amount that is includes the estimate. When, the final price quote is received then the lender will re-adjust the mortgage amount to reflect actual amount.

Although, different builders may require different types of mortgages or the processes may vary. I can help you get the right mortgage and make your purchasing experience a breeze!

If you need clarification, don’t hesitate to contact me. I would be happy to explain further.

How to identify your best long-term alternative

Have you ever wondered whether it makes more sense to pay off your mortgage or to contribute to a Registered Retirement Savings Plan? Perhaps you’re expecting to receive some extra money from an inheritance or an employment bonus, and you’re not sure which route to take.

The truth is, there is no easy answer. There are many variables that must be taken into account. Concentrating on paying down a mortgage may be the best route for one person, while focusing on an RRSP may benefit another.

Here are some factors to consider:

• Your age. When you’re young, it is wise to make your RRSP a priority. The sooner you get money into a sheltered retirement plan, the longer it will grow on a tax-deferred basis. But don’t overlook the need to build home equity. It can give you a head start on the expenses of moving to a larger home as your family grows.
• Your income. The more you earn, the higher the rate of tax you’ll pay. That means you must earn more in before-tax dollars to make mortgage payments. If you’re a high income earner you may want to quickly reduce this expensive debt.
• Investment returns. Pay attention to the rate of investment returns you could reasonably expect to earn when you contribute to your RRSP. Astute investors could be further ahead by investing their money than paying down the mortgage. The benefits of investing are magnified by an RRSP, with tax-deferred growth within the plan and tax deductions on contributions.
• Your mortgage rate. If your mortgage rate is higher than your expected investment return on your RRSP, then paying down your mortgage may be prudent – especially if you expect borrowing costs to rise in the future. But if your mortgage rate is low, it may make more sense to contribute to an RRSP.
• Are you behind on your RRSP? If you have made less than your maximum annual RRSP contribution in the past, a lump sum could allow you to catch up. You are allowed to make up for unused contribution room that you’ve accumulated from past years – which can also generate a significant tax refund.
• Your pension plan. Those with generous workplace pension plans that provide for a secure retirement may be able to concentrate on a mortgage without giving up financial security in retirement. Of course, you can focus on both your RRSP and mortgage. For example, contribute to your RRSP and then apply the tax refund it generates towards a prepayment on your mortgage.

Sincerely,

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284

Homeowners who haven’t listed their property in recent years may be surprised and somewhat skeptical of the advantages of styling or “staging” a home in order to maximize its resale price. However, it is a fact that detailing is very effective. When a professional designer is enlisted to optimize the appearance of a home, it leaves a positive impression on the potential buyers. its not just about style. A proper consultation can identify means of emphasizing a homes best assets, such as improving sightlines with strategic furnishing, or making a room more welcoming with improved lighting, a carpet, or an attractive piece of art. Whether it’s kitchen hardware replacement, new bathroom decor or a fresh coat of paint, property staging is a worthwhile investment. It may require a bit of work, or may involve renting a few items, but is sure to make a home more attractive to potential buyers.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

Did you know that, next to heating and air conditioning, your lights consume most of the energy in your home? In fact, you can lower your electricity bill quickly – and substantially – simply by being smarter about lighting.

First, consider replacing your conventional light bulbs with the energy-saving variety. You’ve probably seen these at your local home improvement centre. Compact florescent light bulbs, for example, use up to 75% less energy.

Second, lower the wattage in some outlets. Is it necessary to have a 100 watt bulb in the furnace room? Try a 60 watt bulb.

Finally, think before you turn on the lights. Do you really need them on? Perhaps there’s an alternative, such as opening a window blind to let in more sunlight.

Some people know what general paint color they want but struggle with envisioning the exact shade. Others are just scared to commit to color because they’re not sure what works best with their furniture. One of the points about paint I like to make with clients is that the colors you may like may be very different from colors you want to live with.

Some shades translate perfectly to walls. Some, although beautiful, are better saved for fabrics or rugs. Here are some shades of popular, tried and true paint colors along with their exact name and brand, that I think translate very well to walls.

for the complete article click on the following link:

 12 Tried and True Paint Colors for Your Walls

When you see a new home you like on the market, it’s easy to get distracted by all the features you love – the wrap-around backyard deck or the spacious rec room with plenty of space for entertaining. You just need to make sure that in all that excitement you don’t overlook any expensive maintenance issues that could be just around the corner.

Nothing lasts forever. The major components of every home – from the furnace to the roof shingles – need to be replaced eventually. Knowing when such maintenance issues are likely to arise can help you make a smarter decision about the home you’re considering.

How do you do that?

When viewing a property, ask for the age of the major components of the home, such as the roof shingles, furnace, air conditioner, water heater, and appliances. Roof shingles may look merely weathered in spots – and you might think they have years of service left – when, in fact, they’re due to be replaced in a year.

Also pay close attention to the backyard deck, fencing, flooring, and windows. Do any of those components look aged, worn, and in need of repair or replacement sometime soon?

Finally, don’t forget to check the kitchen and bathrooms. Sinks, faucets, bathtubs, showers, and cabinetry have a life-span of about 10-15 years.

Of course, there are things you can’t see, such as wiring, plumbing, venting, and other components of a property that may require maintenance soon. That’s why it’s so important to make any offer to purchase a home conditional on passing an inspection by a qualified home inspector.

Want more ideas on buying the right home for you? Call today 780-634-8151.

I’d be willing to bet that when you think about your dream kitchen, it doesn’t include the word “tiny.” Yet that’s the reality that many of us live with: skimpy counter space, a cramped work triangle and precious little space for appliances. If you’re not ready — or willing — to knock out a kitchen wall, you can at least do the next best thing: Create the impression of a bigger space with a few strategic decorating tricks.

Add to ideabook

1. Replace solid cabinet doors with glass ones. Glass fronts lighten the look of cabinetry and allow the eye to travel through to the back, which helps the kitchen seem more expansive. Just don’t clutter the interiors with bric-a-brac — you’ll defeat the purpose.

Private Comment

Add to ideabook

by Jeanne Finnerty

2. Paint cabinets the same color as the walls. Limiting the cabinetry and the wall color to a single hue erases visual boundaries that might stop the eye. The conventional school of thought is that pale colors will reflect light and make the space feel bigger, and that’s certainly a safe approach. But don’t be afraid to go dark, either. Deep tones such as black, navy, charcoal and chocolate recede visually and create the impression that the walls are farther back than they really are.

Private Comment

Add to ideabook by Andre Rothblatt Architecture

3. Choose furnishings with a small footprint. Select petite islands, slim chairs, streamlined stools and narrow tables that don’t eat up valuable floor space. Avoid chunky furniture legs or thick bases, which add visual bulk. Private Comment

Add to ideabook by Aidan Design

4. Recess storage. Tuck a pantry, shelving or cabinets flush with the wall to keep from obstructing the kitchen’s flow. It’s fairly easy to retrofit a recessed niche, especially if you orient it between wall studs. Private Comment

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by Boor Bridges Architecture

5. Design with clean lines. Big corbels, ornate cabinetry and fussy details can make a kitchen feel chopped up. Instead, keep the elements tailored and sleek to smooth out the look and create a roomier feel.

Private Comment

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by Lisa Borgnes Giramonti

6. Merge into a larger space. This breakfast room, separated from the kitchen by a low half wall, feels like a natural extension of the cooking area.

Private Comment

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by Justrich Design

7. Incorporate open shelving. Open shelves reduce visual weight and lend the illusion of a more expansive space. For an even sleeker look, choose floating shelves over models with brackets.
See more of this 90-square-foot kitchen

Private Comment

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8. Winnow down. Don’t crowd counters, shelves and cabinets with clutter, which makes the space look as though it’s bursting at the seams. Instead, focus on a few standout items and necessities and hide the rest away.

Private Comment

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by Whitten Architects

9. Direct the eye upward. Choose patterns and visual elements that help to guide the gaze toward the ceiling. The vertical lines of the wall and ceiling boards in this kitchen lend the impression of greater height.

Private Comment

Add to ideabook by Aidan Design

10. Flood the space with light. Whether your kitchen is done in pale colors or dark ones, light beaming in will help it feel as large as possible. Keep window treatments very simple, or eliminate them entirely, so as not to block the sun. Source: www.Houzz.com

Now is the best time to ensure your central air conditioning is working. Don’t scramble for a service call during the first heat wave. to get started, replace or clean your indoor air filters. next, follow your manual’s instructions on how to turn off your thermostat and all AC power connections. (Do not touch or disturb any electrical connections, as some parts may hold a live charge). Next, remove the unit’s outside screen and determine if any motor points require lubrication. Then examine the condenser coils and exterior fan to ensure they are clean and unobstructed. Remove any debris or wash off with garden hose. Finally, carefully replace all covers, turn on the power, and set your thermostat low enough to start it up. If it looks, acts or sounds unusual, or if you feel uncertain about its operation, arrange for a preseason service call.

A good investment in a renovation should increase the value of your home by at least the amount of money you spent, or close to it. A bad one doesn’t get you much of your money back. Here are some investments that have proven to return their value, or close to it:

· Low-cost improvements that make your home look better: Painting, new wallpaper, and items like new rugs and curtains help to brighten and improve the look of a home, and add value to your house if they are done close to the time of sale.

· New or improved kitchens and bathrooms: Improvements to your kitchen and bathroom seem most likely to increase the value of your home. Keep in mind that these improvements lose value over time.

· Improvements to the living room and the master bedroom: These are also good investments and will usually return most of the money you spent, if not more.

· Investments in more efficient use of energy: Oil, gas, and hydro costs continue to go up. That’s becoming more of a concern when people are looking to buy a home. You can make your home more energy efficient as an investment in its value. Some government programs help reduce the costs of these projects. Also, consider buying appliances that waste less energy.

· Keeping up with repairs. If you do a little at a time, you can avoid doing a lot of expensive repairs at the same time. A reasonable amount to spend yearly is 1% to 2% of the value of your home.

What are some renovations that don’t add much value to my home?

· Swimming pool: Make sure you want a pool before you invest in a pool. The cost of putting in one won’t show up in the price that you get when you sell a home.

· Costly appliances: Most people won’t want to pay an extra $4,000 for your home to pay for a $7,000 refrigerator instead of a $1,200 refrigerator. If you pay thousands of dollars for top-of-the-line appliances, enjoy them. You probably won’t get your money back if you sell them with your home.

· Costly landscaping: The way your home looks from the street can really help interest buyers. It’s called ‘curb appeal.’ But if you spend $30,000 in landscaping, don’t expect to get it all back. Most buyers probably won’t see or appreciate the value.

· Renovating in an area where homes are being torn down: Tear-down activity involves homes being sold, torn down, and replaced by bigger, more expensive homes. If someone is going to buy your home and tear it down, a renovation won’t return any of your money. The buyer will have no interest in the building, just in the land.

Remember: Don’t assume you will get all your money back from a renovation

The key to renovating is to keep the house in good repair and do the renovations you want to enjoy. If you think you might be selling in the near future, focus on renovations that are more likely to get your money back.

Learn more:

: information on a wide range of topics ranging from finding a contractor, to home maintenance checklists

– Resource Centre Worksheets: worksheets and checklists you can use when planning a renovation who belongs to the Canadian Home Builders’ Association

Source:

Early spring is the best time to ensure your central air conditioner is working. Don’t scramble for a service call during the first heat wave. To get started, replace or clean your indoor air filters. Next, follow your manual’s instructions on how to turn off your thermostat and all AC power connections. ( Do not touch or disturb any electrical connections, as some parts may hold a charge.) Next, remove the unit’s outside screen and determine if any motor points require lubrication. Then examine the condenser coils and exterior fan to ensure they are clean and unobstructed.  Remove any debris or was off with the garden hose.  Finally carefully replace all covers  turn on the power, and set your thermostat low enough to start it up. ( only do this step when it is at least 16 degrees Celsius outside ) If it looks, acts or sounds unusual, or if you feel uncertain about its operation, arrange for a pre-season service call.