#1- Avoid Upgrades Without Universal Appeal Although they are a “must-have” for some, saunas, hot tubs, and swimming pools are often referred to as value-neutral renovations.  While they may not decrease your home’s value, they may make some prospective buyers think twice. An unwanted sauna, tub or pool can be seen as a waste of space.

#2- Keep Features of Value Some features have universal appeal. A fireplace, for example, adds warmth, both figuratively and literally, to any room, and provides an inviting focal point. With the trend for staying in continuing, a fireplace also provides an ideal gathering place for family or when entertaining. Eliminating it or covering it up can remove a key selling feature of your home.

#3- Maintain Curb Appeal Regular maintenance of your lawn and garden are good habits even if you’re not selling your home. When you and your neighbours make this routine, it can benefit selling prices on your entire street. The same rule applies to your home. Ensuring it is in good repair and gets a fresh coat of paint when required goes a long way to create a positive first impression.

By the way if you are considering a home renovation, keep in mind that I have exclusive access to a private mortgage fund which specializes in short term renovation/ construction loans. Contact me any time to chat Christopher Molder Toronto Mortgage Broker 416.461.0204ext2

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TTC Bus In 1923

If you commute in our city (or any major city in the world) how can you resist picking up a Metro and browsing through the day’s top headlines? This morning I picked one up and found out 10 things about the TTC. I was amazed to learn that each subway car filled during rushhour is the equivalent to replacing 910 cars in rushhour traffic. That is amazing! A service that many of us take for granted. Here is the top 10 list:

1- One six-car subway train replaces the equivalent of 910 vehicles in morning rush hour, while one bus replaces the equivalent of about 45 vehicles.

2 -The TTC’s fleet consists of 700 subway cars, 248 streetcars and 1730 buses.

3- In 1921, the first motorized buses began operating, and in 1954, the first subway line — from Union to Eglinton Station —opened.

4- By the end of 2009 (that’s just three months away), hybrid buses will make up 40 per cent of the TTC fleet, and by 2012, all buses will be equipped with bike racks.

5- If you don’t have the exact fare when boarding a bus or streetcar and have to pay the fare with a large bill, ask the driver for a refund voucher, which you can bring to the TTC head office for a refund.

6- The door chime on the subway is the first three notes from the Sesame Street theme song.

7- At the Bay subway station, there is actually another unused subway platform on a lower level, often used by film crews. It’s been used in films including Extreme Measures starring Gene Hackman and Hugh Grant, Don’t Say a Word starring Michael Douglas and many others.

8- Wheel-Trans, the TTC’s fully accessible door-to-door specialized system, makes about 5,000 trips each weekday.

9- With 1.5 million passengers each day, the TTC has one of the highest per capita ridership rates in North America.

10- The last year that fare revenues met TTC operating expenses was 1970.
source: Toronto Transit Commission

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Click here to view the article by Ellen Roseman in The Toronto Star

Click here to view the embedded video.

Here are the Top 10 reasons to use a mortgage broker in Toronto:

#1- Get Independent Advice On Your Financial Options. As an independent mortgage broker in Toronto, I am no tied to any one lender or range of products. My goal is to help you successfully finance your home or property. I’ll start by getting to know you and your homeownership goals. I’ll make a recommendation, drawing from available mortgage products that match your needs, and together we will decide on what’s right for you.

#2- No Cost To You. There is no charge for my service on a typical residential mortgage transaction. So how do I get compensated? Like many other professional services, as a mortgage broker I am paid a finder’s fee when I introduce a creditworthy, dependable customer to a financial institution. These fees are quite standard and nearly industry – wide so that the focus remains on you, the customer. There is no personal gain for me if you choose one lender over another.

#3- Save Time With One-Stop Shopping. It could take weeks for you to organize all the appointments necessary to get to know the products and options differentiating the competing lenders in the market – and I know you’d rather spend your time house hunting! I work directly with dozens of lenders, and can quickly narrow down a list of those that suit you best. Together we can review the shortlist to make mortgage shopping fast, easy and convenient.

#4- Get Expert Advice. When it comes to mortgages, rates and the housing market I’ll speak to you in your language. I can explain to you the various mortgage terms and conditions so you can confidently choose which mortgage suit you best. As a mortgage broker I have successfully completed all 14 educational requirements of the ministry of finance.

#5- A Long Lasting Professional Relationship. The successful completion of your mortgage transaction does not mean the end of my commitment to you. Just like you use a professional like a dentist, doctor, financial adviser for your on going personal well being, I am part of your team to ensure that you continuously get the mortgage support and advice you need.

#6- More Choice Mean More Competitive Rates. I have access to a network of major lenders in Canada, so the options I can present to you are extensive. In addition to the Big 5 banks you are already familiar with, I also know what’s being offered by Credit Unions, trust companies, and other non-traditional sources.

#7- Ensure That You’re Getting The Best Rates and Terms. Even if you’ve already been pre-approved for a mortgage by your bank or another financial institution, doesn’t mean that you have to stop shopping! With so many lenders in the market let me explore what other options are available for you which may suit your needs.

#8- Get Access To Special Deals and Add-Ons. Financial institutions are always competing for your business, which is why they often offer incentive to attract creditworthy customers. These can include retail points programs, discounts on appliances, shopping club and more.

#9- Things Move Quickly. In mortgages, a lot of attention needs to paid to details. Every ‘t’ needs to crossed and ‘i’ dotted. My eyes have reviewed 100s of mortgage documents and I know where the pitfalls lie and what to look out for. I will make sure that your mortgage transaction takes place on time and to your satisfaction.

#10- We Negotiate On Your Behalf. People often get intimidated or bullied by their bank and don’t feel comfortable negotiating with them. As a mortgage broker I negotiate mortgages each and every day on behalf of my clients. You can count on my market knowledge to secure competitive rates and terms that benefit you.

The following is a link to a great video blog on the Globe & Mail website by Financial editor Rob Carrick. In it he interviews author of the Canadian Mortgage Trends blog and fellow mortgage planner, Rob McLister.

Rob’s comments & position in the interview are very insightful.

I think variable is still the way to go. Here is why (DISCLAIMER: This is my opinion only. I am not offering financial advice. Everybody has different circumstances and mortgages are not one size fits all):

1. You will keep your mortgage payments low. The difference between the average variable rate in today market P+.50 (2.75%) and today’s average fixed rate mortgage (4.49%) is 1.74%. That translates into a difference of $231/month on a $250,000 mortgage amortized over 25 years.

2. If you are willing to pay the monthly payment of a fixed rate mortgage you can opt for the variable and take advantage of your ability to increase your monthly payment by 20%. All the extra money will go toward reducing the principal which will take months if not years off your mortgage and save you interest.

3. The Bank Of Canada has made a promise to Canadians that they will keep the prime rate level until the end of the second quarter of 2010. (Source)There is very little risk that your payments will increase over the next 12 months. With the economic outlook it appears that we may be a very long way away from inflation and recovery so the prime rate may stay low even longer. Lets just assume that you take variable for exactly one year and lock into a fixed 5 year at 5% for the remaining 5 years. The effective interest rate (average) still works out to be 4.53%.

4. Fixed rate mortgages are over priced. As I’ve explained in previous posts mortgage lenders determine their fixed rate prices by keeping a spread on current bond yields. When it comes to fixed rate mortgages you have “one bullet” to shoot. If you take a fixed today… thats it you forfeit the opportunity to do so in the future when rates are lower. By taking a variable you can stay in the game and lock-in in the future when rates are lower. This Toronto Star Article highlights the fact that fixed rate mortgages are over priced and that there is downwards pressure. 

If you would like to discuss your particular situation or can’t make up your mind call our Toronto Mortgage office at 416.461.0204×2 and speak with Christopher Molder.

Pressure on fixed 5 year: Down.

Financial Post – Markets. Lenders typically like to keep a spread of 1.70% to 1.80% between their fixed five year rates and the current 5 year bond yield. If the bond yield increases then the spread will shrink putting upward pressure on mortgage interest rates. The reverse is also true. If bond yields decrease then the spread widens and there is downwards pressure on fixed rate mortgages.