Edmonton Real Estate Blog

Three projects that will give you the biggest return on your investment…

The Kitchen

The kitchen is the best place to put your money, hands down. According to the Appraisal Institute of Canada, the average amount home-owners should spend on a kitchen reno is about 10 to 15 per cent of the overall value of their home. If you’re renovating the kitchen for personal use and not only for the purpose of investment, and if you are going to live in your house for more than five years, then you should spend 15 to 25 per cent or more. In most cases, you will recover the cost by the time you sell your home – with a 44 per cent higher return on investment than the average.

What do buyers look for?

• space, functionality and effective, well thought-out storage
• granite countertops create elegance, plus its resistance to scratches and easy maintenance make it ideal for everyday use
• quality – don’t skimp on appliances or labour – having the job done well is a value adder; doing it poorly may reduce the value of your home!

The Bathroom

After the kitchen, bathrooms are the next key space potential buyers look at. A study from Canada’s leading real estate companies shows that a well-designed bathroom renovation can generate up to a 56 per cent better return on investment than the average. Usually a bathroom renovation involves the complete replacement of existing finish and fixtures – tubs/showers, toilets, faucets, sinks, tiles, flooring, lightings, cabinetry and tile-work. Sometimes a bathroom renovation also involves the re-location of fixtures and the removal of adjacent walls to create a better layout.

What do buyers look for?

• a spa-like environment: light colours, rich textures
• luxuries such as water jets in the tub or a steam shower stall
• a large master ensuite with a soaker tub and double sinks

Floor and Wall Finishes

Don’t undervalue the paint and flooring in your home! Many buyers want a home that’s move-in ready, so the more appealing the walls and floors are, the more interest your home will generate on the market. Flooring can generate a 22 per cent better return on investment than the average. If you have carpet in the family, dining and living rooms, it is recommended to change to hardwood and/or tiles. Not only will it make your home more elegant, but you will also enjoy the benefits of a healthier indoor environment, with less allergens. Simply repainting your walls a warm, neutral colour will give you a 29% better return than other popular renovations.

What do buyers look for?

• walls should be smooth and painted in a neutral colour which will help enlarge the space
• currently, hardwood or tiled flooring if not throughout, then at least in the main areas, is the more popular choice for potential buyers
• flooring should create a good flow between one room to the next and be able to tie in with other elements such as cabinetry, wall colours and baseboards

By Kenneth Ho, www.chatelaine.com

Sandra Magsamen shares five artful and inexpensive home improvement projects that will stimulate, captivate and motivate you!

Just because you don’t have a lot of extra cash doesn’t mean you can’t invest in your home. Artist and author Sandra Magsamen offers some artful, low-charge and no-charge ways to create a home that stimulates, captivates and motivates.

Color Outside of the Lines
Color is a wonderful gift, and paint is low cost. Repaint a room or all the rooms in your home. Dream about what feeling you want a room or rooms to share, and think through possible color choices. Journey down to the local paint store for an adventure, and gather tons of paint chips for your consideration and reflection (they are free).

Rummage and explore magazines, pulling out pages of rooms that you want to live in. Look for inspiration everywhere, including friends’ homes, museums, movie sets and nature.

When you are ready to paint, make it fun. Host a paint party and invite some friends over. Make a plan for the evening and give everyone a job. Before you know it, you’ll have splashed some new life into those old walls.

Remember when thinking about color that white brings in light and is the perfect canvas for hanging colorful art. Red is bold, primary and dramatic. Blue is reflective and peaceful. Green is all about nature and calm, and yellow activates and brightens any room.

Putter the Clutter
In my home, clutter seems to multiply magically. Piles of books form here and there, baskets of unrelated items seem to pile up throughout my house and stacks of papers simply grow bigger in size without any human intervention.

For some of us, clutter can be daunting and can make our homes feel messy and unorganized. For others, clutter feels comfortable and fine. If you are one of those folks who love clutter, skip right past this section, but if clutter annoys you, my advice is to “putter the clutter.”

It is really hard to declutter a house in one day because it is such a daunting task, so putter around in each room. Break down the job and pick a room to declutter, then move on to the next room another day. Remember, all this clutter didn’t gather in one day and it doesn’t have to go away in one day either.

If you break this job into small puttering steps, you’ll have a better chance of getting it all done and not be overwhelmed by doing it. Make this job as fun as you can by putting on some great favorite music and dancing your way through the job. Ask yourself as you start this job, “What do I really need and want?” Today is the day to recycle old magazines and donate clothes, furniture and items that could help someone else. Pare down to what feels comfortable and nurturing for you.

Rearrange for Change
If you have grown tired of the same old furniture in your living room and don’t have the finances right now to go out and buy all new pieces, I suggest you do a little rearranging and you’ll be delighted by the change. This tip costs nothing — the only thing you will need is the willingness to play!

Play around with what you already own and see how you could reuse or rearrange in your home. You could go wild with this idea, like moving the living room into the dining room and the dining room into the old living room, or simply rearrange the bedroom by moving the bed under the window so you can feel the spring and summer breezes.

By simply playing around and moving around what you already own, you can change the whole look and feel of your home.

Get Creative
There are so many fun projects to explore and create as you invest in your home. Instead of running to the store to buy an accessory or home decorating item, think about how you might recycle, reuse or create a work of art instead.

• Make new pillows for the sofa by recycling and reusing fabrics.Sew a quilt from clothing that you no longer want to wear but that would be beautiful as a patchwork quilt.
• Paint a whole wall in chalkboard paint and enjoy writing, doodling, drawing, leaving messages, sharing famous quotes, creating or simply jotting down the grocery list.
• Need some lighting? Instead of purchasing a new lamp, why not decorate a lamp shade to match the room? Hot gluing colorful ribbons, buttons or fabric to a shade can look beautiful and artful. Using ceramic tile adhesive on a lamp base and gluing in shards of pottery or stones can create a beautiful mosaic feel to any lamp.
• Need a new rug in the foyer? Try painting a large piece of canvas and make a durable canvas rug. Using acrylic paint, paint the canvas with a design, paint splatter, words or any art that you love. Once dry, varnish with water base polyurethane four or five times, and you’ll have a canvas rug that will be a work of art.
• Make a wreath out of vines you find on a walk in the woods. Gather vines and roll them up in a circle, then tie them together with string. You can decorate the wreath with anything or nothing. 

Grow Beauty
Create a garden in a window, a window box, a terra-cotta pot or the whole front yard. Growing flowers and vegetables is fun, satisfying and always makes a home more beautiful.

Enjoy planting and nurturing your garden, no matter its size. There is great joy and accomplishment that comes from helping anything grow. Make a lettuce garden and enjoy wonderful salads, plant herbs to use all year round, grow flowers you can cut and make a beautiful bouquet from and share your garden with others. You’ll grow great friendships.

You don’t have to spend big money to create the home of your dreams — you only need to spend some time and energy putting your imagination to work.

By Sandra Magsamen, Oprah.com

A key element of planning for your retirement is making sure that you’ll have sufficient income after you retire. A portion of that may come from reliable sources like a pension plan, government benefits, annuities and perhaps part-time employment. But after that, you may be counting on your personal retirement savings.

Most people need to withdraw some money from their portfolio, so having the right mix of investments to generate sufficient income and growth is important. You also might want to consider consolidating your accounts. It can help you gain a clearer picture of your retirement savings and the withdrawal amounts that may be needed from both your registered and non-registered accounts.

The amount you withdraw from your portfolio can depend on factors such as your age, risk tolerance, how your money is invested and the desire to leave a legacy. Everyone’s situation is different, but retirement can last 20 years or more, so an initial withdrawal rate of 4% can be a good place to start. A moderate withdrawal rate allows you to be more flexible because your income needs may rise and fall.

Regarding the make-up of your portfolio, it should provide you with an appropriate amount of income. This can come from Guaranteed Investment Certificates (GICs) and individual bonds, which can help provide a predictable flow of income. Some people decide to invest only in GICs because they provide income with less risk. But remember that GICs alone likely won’t provide a return that can keep pace with inflation.

As for stocks and mutual funds, you should look for those with a history of paying dividends and increasing them over time – though keep in mind that dividends can be increased, decreased or totally eliminated at any point without notice. Although equities possess more risk relative to bonds, their growth potential can help protect against inflation. To help reduce risk, consider buying quality that you can hold for the long term – and don’t overlook the importance of diversifying your investments. While diversification does not guarantee a profit or protect against loss, it has proven over time to be an effective investment strategy.

Life annuities and Guaranteed Minimum Withdrawal Benefit plans* may be another option for some of your retirement income. With these options, which can be customized to meet your retirement needs, you would essentially entrust money to an insurance company in exchange for a guaranteed income stream that will last your lifetime and pay for your necessary living expenses.

Speak with your financial advisor to create a long-term strategy that can help meet your needs today and into the future.

Call me soon so that we can create a long-term strategy that can help meet your needs today and into the future.

This article provided by: Sean Mullane of Edward Jones (780) 464-6100

In a time where identity theft and Ponzi schemes are plastered across the daily news, the last thing you want to worry about is yet another way to lose your hard-earned money.

But as a homeowner, you need to be aware of crimes on the rise known as mortgage fraud and real estate title fraud.

Mortgage Fraud

The most common type of mortgage fraud involves a criminal obtaining a property, then increasing its value through a series of sales and resales involving the fraudster and someone working in cooperation with them. A mortgage is then secured for the property based on the inflated price.

Following are some red flags for mortgage fraud:

• Someone offers you money to use your name and credit information to obtain a mortgage
• You are encouraged to include false information on a mortgage application
• You are asked to leave signature lines or other important areas of your mortgage application blank
• The seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
• The seller or developer rebates you money on closing, and you don’t disclose this to your lending institution

“Straw Buyer” Scheme

Because of the recession, more people are desperate and eager to find a way to hang onto their homes. A couple was recently arrested in Canada after duping 100 families looking for help to avoid foreclosure in the US.

Another term for mortgage fraud is the -straw‖ or -dummy‖ homebuyer scheme. For instance, a renter does not have a good credit rating or is self-employed and cannot get a mortgage, or doesn’t have a sufficient down payment, so he or she cannot purchase a home. He/she or an associate approaches someone else with solid credit. This person is offered a sum of money (can be as much as $10,000) to go through the motions of buying a property on the other person’s behalf – acting as a straw buyer. The person with good credit lends their name and credit rating to the person who cannot be approved for a mortgage for his or her purchase of a home.

Other types of criminal activity often dovetail with mortgage fraud or title fraud. For example, people who run -grow ops‖ or meth labs may use these forms of fraud to -purchase‖ their properties.

The Fallout for Lenders

Fortunately (for you, at least), mortgage fraud typically hurts the lender the most. Canadian precedents have been set in which banks are held responsible for mortgage fraud.

The BC Court of Appeals recently ruled that -the lender – not the rightful property owner – is the one out of luck in a fraudulent mortgage scheme‖ and that lenders -must ensure their mortgages are valid by taking steps to ensure that the registered owner obtained title to the property legally.

The same conclusion was made by the Ontario Courts a couple of years ago. Banks, as you can imagine, aren’t too thrilled about this trend. Royal Bank of Canada recently sued a former bank employee over an alleged mortgage fraud scheme.

Title Fraud

Sadly, the only red flag for title fraud occurs when your mortgage mysteriously goes into default and the lender begins foreclosure proceedings. Even worse, as the homeowner, you are the one hurt by title fraud, rather than the lender, as is the case with mortgage fraud.

Unlike with mortgage fraud, during title fraud, you haven’t been approached or offered anything – this is a form of identity theft. Here’s what happens with title fraud: A criminal – using false identification to pose as you – registers forged documents transferring your property to his/her name, then registers a forced discharge of your existing mortgage and gets a new mortgage against your property. Then the fraudster makes off with the new home loan money without making mortgage payments. The bank thinks you are the one defaulting – and your economic downfall begins.

Following are ways you can protect yourself from title fraud:

• Always view the property you are purchasing in person
• Check listings in the community where the property is located – compare features, size and location to establish if the asking price seems reasonable
• Make sure your representative is a licensed real estate agent
• Beware of a real estate agent or mortgage broker who has a financial interest in the transaction
• Ask for a copy of the land title or go to a registry office and request a historical title search
• In the offer to purchase, include the option to have the property appraised by a designated or accredited appraiser
• Insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house or meth lab
• Ask to see receipts for recent renovations
• When you make a deposit, ensure your money is protected by being held -in trust‖
• Consider the purchase of title insurance

It’s important to remember that if something doesn’t seem right, it usually isn’t – always follow your instincts when it comes to red flags during the home buying and mortgage processes.

Article provided by: Souchita Rattanarasy of Dominion Lending Centres Optimum (780) 932-2225

When it’s Showtime!

You have inspected your house and taken care of problems. Now you are ready for showings. You will need a plan of action that assigns duties to each family member so the place can quickly be whipped into shape.

• Open all drapes, blinds, etc. and turn on lights to make the house bright.
• Air out the house to get rid of cooking, pet odours, and so on.
• Have fresh flowers in view.
• Pick up clutter and empty garbage.
• Make sure everything is spotless.
• Set your thermostat at a comfortable level.
• Remove pets from the house or put them outside.
• If you have an agent, leave when the house is being shown. If you are selling it yourself, you need to strike a balance between being helpful and crowding the buyer.
• In poor weather, provide a place for boots, overshoes and umbrellas.
• Display photos of the house in summer to show landscaping if selling in the winter months.
• Leave out heating and hydro bills.
• For those on a septic system and/or well, leave out inspection and maintenance information.

Article by: CMHC

This is Part 3 of a 3 Part Series

Now, Let’s Go Indoors

A prospective buyer will usually enter through your front door; so, that is where you should begin your interior inspection. You want your buyer to see a neat, clean, well-lit interior. Get clutter out of sight; ensure that carpets are clean and floors are scrubbed and polished; and that walls and trim show fresh paint (preferably neutral or light colours).

Take a sniff. Are there any unpleasant odours in your home? If there are, track them down and eliminate them. Ensure all your lights work and are free of cobwebs. You want your home to look spacious, bright and fresh.

If you have considerable family memorabilia, consider thinning it out. Your objective is to help potential buyers feel as if they could live in your home. That mental leap becomes more difficult for them if your house resembles a shrine to your family.

Professional realtors and decorators say the most important areas of your home to upgrade and modernize are the kitchen and bathrooms. Buyers also want to see new or recently installed floor coverings throughout.

General Interior

• Check stairs for loose boards, ripped carpeting, and missing or loose handrails and guards.
• Most problems with interior walls are cosmetic and can be repaired with spackling compound and paint.
• Ensure doors open and shut properly. Minor sticking is normal but excessive binding indicates possible structural problems.
• Open and close all windows to ensure they work properly. Fogging between the panes of a sealed window indicates the seal is broken and the unit needs to be replaced.
• Keep furniture to a minimum so rooms do not appear smaller than they are. Ensure that traffic can flow in or through rooms unimpeded. If they contain bookshelves or cabinets overflowing with books, magazines and knick-knacks, remove some of these items.
• Ensure closets look spacious, organized and uncluttered. Create space by getting rid of old clothes and junk.
• Remove or lock away valuables such as jewellery, coins, currency, cameras and compact disks.

Kitchen and Bathrooms

• People splash water around in the kitchen and bathrooms so check around sinks, tubs and toilets for rotting countertops and floors. Problems could be due to poor caulking or plumbing leaks. Fogged windows, moulds and sweating toilet tanks indicate high humidity levels, which you can remedy with exhaust fans.
• In the kitchen, clean all appliances, including your oven. Clean or replace your greasy stove hood filter. Clean your cabinets inside and out, as well as your countertops and backsplashes. Repair dripping faucets.
• Remove anything stored on top of your fridge and remove artwork and magnets.
• Remove any items stored on countertops.
• Remove items stored under the sink.
• In bathrooms, scrub sinks, tubs and toilets, taking care to remove any rust stains. Remove mildew from showers and bathtubs. Fix dripping faucets or trickling toilets, and vacuum your fan grill.
• Clean mirrors, light switch plates and cupboard handles.
• Consider installing new 6-litre toilets if you currently have water-guzzlers.
• If you have ceramic tile in either your kitchen or bathroom, ensure grouting is intact and clean.

Basement

The condition of the foundation and main structural members in the basement are critical to the fitness of any house. The purpose of your inspection is to make sure these are sound and durable.

• Look for cracks, water seepage, efflorescence (white powder-like substance), crumbling mortar or concrete, and rotting wood. If any of these problems are present, you need to do further research to learn about causes and possible solutions.
• If your basement is damp or musty, consider using a dehumidifier.
• Like all other areas of your home, your basement should be organized and clutter-free.
• Change the filters in the furnace and have it cleaned-this is the number one item purchasers want done after a home inspection.
• If you have a pet with a litterbox, ensure the litterbox is clean.

Garage

• Get rid of the broken tools, old car parts, discarded bicycles, empty paint cans and the hundreds of other useless items that accumulate in garages. Again, you want a clutter-free zone.
• Use cleaning solutions to remove oil stains from the floor.

Article by: CMHC

Tomorrow is Part 3 of a 3 Part Series

When getting your home ready to sell, you need to look at your house in a new way. Think of your house as a product about to go on the market where it is probably competing with brand new housing. It needs to show well-which means clutter-free and well kept.

Today’s homebuyers lead busy lives and may not be interested in taking on major repairs or improvements upon moving in. You need to make your house a 10.

Fix It First

If you need to make improvements to your home, do the work before it goes on the market. Potential buyers are not interested in hearing about your good intentions to look after defects before a transfer of ownership takes place. Even if fix-up work is underway, buyers may not be able to visualize what your home will look like when the work is finished. They will just remember it being in a state of disrepair.

Check Your House’s Curb Appeal

How does your house look from the street? That is where prospective buyers will be when they first see your home; and, that is where they will form that all-important first impression. Stand at the curb in front of your house and note what you see.

 Remove any clutter in your yard.

 Repair cracked or uneven driveway or walkway surfaces.

 If your lawn has bald spots, apply some top dressing and re-seed. Prune trees and shrubs of dead wood. Weed and mulch flower beds, if you have them. If it is the right time of year, consider buying some flower-filled planters to enhance the eye appeal of your property. Make sure your lawn is mowed regularly. Ensure composter area is tidy.

 Are your windows and walls clean?

 Does your front door need paint?

 Ensure your eaves and downspouts are clear of debris and in good repair.

 Are your backyard deck and walkways clean? If not, use a power washer and do any necessary painting, staining, or sealing.

 If you have a swimming pool, are the deck and pool clean (when in season)?

 Do all outside lights work? Replace any burned out bulbs, and clean fixtures of dirt and cobwebs.

 Is there a shed? Does it look presentable?

 Do windows and exterior doors need recaulking? Even at 6-7 years of age, the caulking may be dried out and in need of replacement.

 Do you have decorative wooden poles on the porch? Is the wood at the bottom in good condition? Overall, does it need a new coat of paint?

 If you have a gate, is it well oiled?

When you have completed the curb appeal inspection, carefully check the rest of your home’s exterior.

Tomorrow is Part 2 of a 3 Part Series

 Article written by: CMHC

New Home, Previously Owned or Build Your Own?

When thinking about the kind of home you want, the first thing you should consider is whether you want a previously owned home (often called a resale) or a new home. Here are some characteristics that may help you decide:

New Home

• Modern design. A new home has an up-to-date design that takes into account the latest trends, materials and features.
• Personalized choices. You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
• Up-to-date with the latest codes/standards. The latest building codes, electrical and energy-efficiency standards will be applied.
• Maintenance costs. Lower maintenance costs because everything is new and many items are covered by a warranty. You should still set aside money every year for future maintenance costs.
• Builder warranty. This is a warranty that may be provided by the builder of the home. Be sure to check all the conditions of the warranty. A homebuilder’s warranty can be important if a major system such as plumbing or heating breaks down.
• New Home Warranty programs. Generally new home warranty programs are provided by provincial and territorial governments, but there are private new home warranty programs. These warranty programs are not available in Nunavut and the Northwest Territories. Check with your real estate agent or lawyer/notary to find out what the new home warranty program in your province or territory covers.
• Neighbourhood amenities such as schools, shopping malls and other services may not be complete for years.
• Taxes such as the Goods and Services Tax (GST) (or, in certain provinces, the Harmonized Sales Tax (HST)) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at www.cra-arc.gc.ca
• Extra costs. You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what’s included in the price of your home.

Resale Home

• You can see what you are buying. Easy access to services. Probably established in a neighbourhood with schools, shopping malls and other services.
• Landscaping is usually done and fencing installed. Previously owned homes may have extras like fireplaces or finished basements or swimming pools.
• No GST/HST. You don’t have to pay the GST/HST unless the house has been renovated substantially, and then the taxes are applied as if it were a new house.
• Possible redecorating and renovations. You may need to redecorate, renovate or do major repairs such as replacing the furnace, roof, windows or doors.

Building Your Own Home

Some people prefer the challenge and flexibility of building their own home. On one hand, you make all the decisions about size, design, location, quality of material, level of energy-efficiency and so on. However, you should expect to invest lots of time and energy.

Article written by: Canada Mortgage and Housing Corporation

Source: TD Insurance

A guide to deterring robbers.

Statistics Canada reports that of 230,000 break-ins across the country in 2007, about 60% (almost 140,000) were residential. While the installation of alarm systems and motion detectors have contributed to a steady reduction in home break-ins in recent years, alone they may not deter a determined thief. They should be combined with other measures that help keep burglars from finding your home an attractive target.

 Make your home less vulnerable by following these tips.

 Outside the home

You want your home to appear impenetrable. If it looks difficult to break into, chances are a burglar will move on to another target.

• Keep shrubs and bushes well trimmed and away from your doorways. This helps eliminate possible hiding places for intruders.
• Make sure that yard work tools are not left out. They can be used by an intruder to break into your home.
• Consider installing lights or motion detectors around the exterior of your house.
• Never hide extra keys outdoors, especially in obvious places such as door ledges, mailboxes or under the mat.
• Home alarm systems or dogs that bark at strangers are great deterrents for burglars, as are signs like “beware of the dog” and home alarm stickers placed on your doors and windows.
• Do not put a sign with your family name on the outside of your house. A thief could look up your number in the phone book and call to see if anybody’s home.
• If you go out, never leave a note on your door indicating when you will be back.

 Doors and windows

These are the main entry points of your home. Make sure they are secure and difficult to get through.

• Always lock your doors and windows. A surprising number of robberies occur through unlocked doors or windows. An open window seen from the street can seem like an invitation to enter your home. And don’t forget to lock your garage door.
• Exterior doors should be of a strong, solid material and equipped with high-quality locks.
• Secondary locks on doors and windows act as an added deterrent.
• Always change the locks when you move to a new home or if you lose your keys.
• Install security bars on your basement windows.
• Sliding doors should be secured with a stick or metal bar. The stationary door pane should also be secured; otherwise it can be easily lifted off the track. Use an auxiliary lock or door pins hooked into the frame.

 Protecting valuable items

If a burglar can spot valuable items from the street, it’s like an invitation to come in.

• Never leave valuables in places where they can be seen through a door or window. Consider placing items like expensive jewellery or stock certificates in a safety deposit box. Or invest in a fireproof safe for your home.
• Engrave your drivers’ license number on your valuables. And keep an inventory stored in a safe place.

 When you’re away from home

Your goal when you are away on vacation should be to make it look like someone is still living in your home.

• Use timers on your lights, stereos and televisions. The lights and noise will give the impression that someone is home. Setting lights to go on and off at irregular intervals makes it look like someone is moving through the rooms of the house, as they would be if you were home.
• Cancel your newspaper and ask a neighbour or friend to pick up your mail.
• Hire someone to cut your grass or shovel the snow. Ask a neighbour to leave a bag of their garbage out at your house on pick-up day.
• Leave a car in the driveway. If you take your car on vacation, ask a neighbour to park in your driveway.
• Turn down the ringer on your telephone. Do not change your phone message to say you are away.
• Turn off your computer and disconnect it from the Internet. Make it difficult to access any personal information you may have on your hard drive.
• Make sure you let your neighbours know if you’re planning to be away, even if it’s just for the weekend. That way, they can keep an eye out for any unusual activity around your home.
• Before leaving, do a complete check of your home to verify that everything is secure.

 Always be aware and prepared

Know what to watch and listen for, and be smart when talking to strangers.

• Make sure trusted neighbours and friends have a way to reach you, in case they notice something strange happening around your home.
• Report suspicious activities in your neighbourhood such as unknown persons hanging around, slow moving vehicles circling the block, unusual noises or unfamiliar parked cars.
• Do not allow strangers into your home. If someone knocks on your door and says they are hurt or need help, keep your door locked and call the police for them.
• When replying to calls from strangers, such as people who say they are telemarketers or conducting a survey, never mention when you are planning to be away. Likewise, do not discuss travel plans in public places where you don’t know who may be listening.

In light of the current market and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late, keep in mind that now – more than ever – it’s important to be careful what you do between the time your mortgage is approved and when it funds. A few mortgage lenders and insurers have been doing something lately that they have not done in a long time, and that is pull new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

1.  Don’t buy a new car or trade-up to a more expensive lease.

2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, give me a call and I can let you know if this may jeopardize your approval.

3. Don’t change industries, decide to become self-employed or accept a contract position even if  it is within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.

4. Don’t transfer large sums of money around between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.

5. Don’t forget to pay your bills, even ones that you are disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent    account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!

6. Don’t open new credit cards. Again, just wait until after your funding date.

7. Don’t accept a cash gift without properly documenting with me – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give me a call before you deposit it.

8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding. Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure!

Article Provided by:

Narish Maharaj

Dominion Lending Centres Optimum
(780) 238 – 7038
Apply online :
www.dlconline.com