What Is Title Insurance & How You Can Use It To Protect Your Home

Ray Leclair is an experienced real estate lawyer & Vice President, TitlePLUS
For a great many of us, purchasing a home is the largest investment we will make in our lifetimes. Despite the enormous price tag and the fact that most of us will be paying off our mortgage for decades to come, on a more personal level, the act of purchasing a home probably stirs up a number of emotions in great many of us. We've all heard about how emotions can cloud our judgment, leaving room for oversight. Oversight in turn, can lead to a number of dangerous outcomes, principally fraud.

Home-buyers should be aware of three main types of fraud; Title fraud, Mortgage fraud and Value fraud.

Title fraud occurs when a fraudster changes the ownership or title of a property into his/her or another name in order to sell or refinance the property.

Mortgage fraud occurs when the fraudster leaves title or ownership in the owner's name but mortgages it without the owner's knowledge, sometimes by fraudulently discharging the existing mortgage.

Value fraud occurs when a homebuyer is led to believe the property is worth considerably more than it really is through fraudulent concealment or intentional misrepresentation, such as giving the buyer a forged appraisal or fraudulent "comparables."

No matter where you're buying a home in Canada these days, chances are you're part of an active real estate market – one in which homes have had many owners over the past few years. The more often your home has changed hands, the more difficult it can be to trace a problem with title back to a specific owner. That's why more and more home-buyers are opting to protect their most important investment through title insurance.

Title insurance is a form of insurance that provides compensation for losses suffered from title issues even if they are not discovered until years after the sale is completed. Title insurance protects home buyers against unpredictable or undetectable problems related to your home's title.

Risks covered by title insurance include unpredictable or undetectable issues such as forgery, fraud, missing heirs, unregistered rights-of-way and other issues that can affect rights of ownership. While real estate lawyers protect home-buyers with thorough record searches and inquiries during the home ownership transaction, they will also often arrange for title insurance to try to offset issues that could not easily be discovered and certain future problems.

If a problem arises with title that only becomes known after closing, title insurance can often compensate the home-buyer for the problem.

"Home-buyers put a great deal of time and energy into finding their dream home, so it's good to protect it with appropriate insurance – not just for fire and theft, but for title-related issues," says Ray Leclair, an experienced real estate lawyer and vice-president, TitlePLUS ® . "Title insurance provides a security blanket for the homeowner once the deal is closed."

Identity theft and fraud have increasingly become a new worry with respect to title. A criminal with the homeowner's information can transfer title or take a mortgage out on the property in the homeowner's name. The criminal takes off with the money and the homeowner is left without title or with a mortgage improperly registered against the property. Title insurance will assist in recovering title or removing the fraudulent mortgage.

Title insurance is a one-time purchase, usually made at the time the home is bought, although also available later for those who already own their homes. For a $500,000 home, it costs about $250 to $300. You pay that money only once for as long as you or your heirs own the home. There are no deductibles and no additional annual fees.

Also, purchasing title insurance can sometimes save on closing costs as a real estate lawyer can often reduce the number of searches and investigations, thereby saving the clients out-of-pocket costs on their overall legal bill.

Title insurance is also often bought when homeowners are refinancing. A useful resource for people looking to learn more about title insurance, the role of a lawyer and refinancing is the TitlePLUS Real Simple Real Estate Guide, which is available for free. The guide provides important information on the role of a real estate lawyer as well as specifics about refinancing a mortgage. The guide also offers useful calculators, a glossary of terms and a locate-a-lawyer tool.

The Offer: There’s More to It Than Just The Price

Fixating on price in real estate may cost you the deal:

Sellers who decide that a specific dollar figure will buy their home and won’t budge from that bottom line may sell themselves short.

Buyers who drop out of a transaction for a property they love because the seller’s counter-offer shocks them may be quitting before they have really started negotiating.

When a buyer makes an offer to purchase a house, condominium unit or commercial property, the purchase price is a prime consideration, but it represents only part of the total value offered to the seller.

Problems may arise for both sides of the transaction when this fact is forgotten.

Value Elements in an Offer The value expressed in a buyer’s offer to purchase, or in a seller’s offer to sell, involves 5 key elements — a financial package:

Purchase Price, the stated amount of dollars offered by the buyer, represents a significant contributor to value, but there are other important factors which can reduce the amount the seller receives or which can compromise the transaction. It’s not the purchase price, but the net proceeds of the sale that sellers — and savvy buyers — should concentrate on.

Closing Date, or the day ownership changes hands and the seller receives the money, can represent cost or value to both parties. Savvy buyers usually attempt to meet the seller’s preferred moving date, especially when the seller has committed to purchasing another property or needs the proceeds of the sale on a specific date. For instance, a closing before that date may be expensive because the seller would have to move out and store everything until they could move into their new home. That double move and the inconvenience represent out-of-pocket costs and time lost that make the actual purchase price lower than stated. A closing date later than the seller’s preferred date may leave the seller owning two homes – and paying off two mortgages – at once. The seller may incur extra costs in arranging bridge financing to meet legal obligations to close on their new home before they receive proceeds from the sale of their current home. Choice of closing date may represent costs or value to the buyer as well. Balancing this reality for both parties is key in negotiation.

Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become “second-hand”and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that’s where negotiations can get heated.

Terms and Conditions are clauses in the offer which cover “what if” risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property’s suitability. Conditions to arrange financing or a home inspection are among the “ifs” that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer’s related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties.

A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value.

Would you recognize the difference if you were the seller?

That’s where the expertise of the real estate professionals involved becomes valuable…

Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts. Yes, price matters, but there’s a lot more involved in creating an offer that demands to be accepted.

That’s why an experienced real estate professional is a valuable contributor to success. Professionals can calculate, or at least estimate, the seller’s net proceeds after costs related to the offer and deduction of commission. This information helps the seller accurately evaluate an offer to purchase.

Understanding cost and benefit for all elements of an offer helps a buyer intent on ownership to create the best financial package possible. Tip: Re-read this article when you are ready to make an offer, counter an offer or accept one.

This will ensure value is visible to you on all levels before you decide to walk away or sign on the dotted.

Toronto, Ontario Condominium Occupancy Fees

Whenever you purchase a new condo, there is a period of time between when you take occupancy of your unit and when you take ownership of your unit. This is known as the ‘occupancy period’ or ‘interim occupancy’. During this period you will be requested by the developer to pay occupancy fees or ‘phantom rent’ as it is also known.

The Condominium Act requires condo developments to be constructed to a substantial level prior to registration of the condominium plan. Title to a unit cannot be transferred until the condominium is registered.

Thus, with newly built condominium apartments, there are two “closings”. The “interim closing”, occurs at the time of occupancy and the “final closing”, occurs at the time of final registration.

The process works something like this; the developer undertakes to build a condo development by submitting a site plan with the Municipality. When the Municipality registers this site plan it becomes a “Registered Site Plan”, setting out exactly what the developer is promising to deliver.

The developer then sells the suites as “pre-construction”; based on floor plans, brochures etc. Once the developer sells enough units, say 60% or more, they start the construction while continuing to sell the units.

When construction is completed, the municipality verifies the building to be in accordance with the registered site plan and issues the “Occupancy Certificate”. The developer start to contact all the buyers notifying them of their occupancy date, at this stage your unit is ready and liveable; you take possession of it, but not ownership. This is the first or “Interim Closing”.

Since the buyer’s down payment is deposited into the lawyer’s trust account, the developer does NOT receive any money until the building registers (final closing), a process that normally takes 4-6 months.

Until such time you must pay the developer “occupancy fees” for the right to live in the unit. The amount of the occupancy fees is roughly equivalent to the interest on the amount outstanding on the purchase price. For example, a $300,000 condo with 25% down means you must pay monthly occupancy fees roughly equal to interest payments on $225,000.

When the municipality completes its process and registers the building, the second or “final closing” take place. This is where the purchasers receive title to their property and their mortgage payments starts, and this is when the developer gets his money.

During the occupancy period the buyers undertake a portion of the developer’s mortgage, also called “Phantom Mortgage”, which is equal to their proportionate share of the overall condo.

The occupancy period is normally 4-6 months, but the higher up you are in the building, the shorter the occupancy period will be. So if you buy a unit on the ground floor, you can expect a long occupancy period. If you buy the penthouse, you will likely have a very short occupancy period.

There is no way to say absolutely how long the occupancy period will be. In most cases the length of the occupancy period depends on the experience level of the developer. Experienced developers who are familiar with process and have diligent lawyers working behind the scenes for them know how to build and how to register a building as quickly as possible.

It is in the developer’s best interest to register the building as quickly as possible and to have the occupancy period as short as possible. This is because they don’t get their money from the banks until the building is registered and all the unit owners have their mortgages commence.

The “Occupancy Fee” is made up of three components and is roughly equivalent to the:

interest calculated on a monthly basis on the unpaid balance of the purchase price
the monthly maintenance fee contributed for the unit; and
a factor for property tax
In total it will be about the same amount as if you took a mortgage. But you cannot get a mortgage because there is no “Title” to the property, thus banks cannot issue a mortgage.

Occupancy fees will be paid to the developer when you purchase a new condo, it does not apply for re-sale condos.

The purchaser can avoid paying the interest portion of the occupancy fee should he/she elect to pay the full balance of the purchase price owing on the date of occupancy. However, in order to do this, the purchaser or his lawyer must request this during the 10-days rescission (or cooling off) period.

In all the cases it is left to the developer to include or exclude any of the above components in the occupancy fee, as long as this is made clear in writing and disclosed in the developer’s disclosure documents.

Canada Tax-Deductible Moving Expenses

Have you recently moved to a new location? Do you know that you can deduct certain moving expenses on your next tax return, including transportation, packing and storage costs.

Many people never realize these tax benefits because they don't know what can be deducted. If you are preparing to move, it's best to be informed beforehand so you know which receipts to keep. You may find it worthwhile during a move to pay for various services that are tax-deductible rather than doing them yourself. A typical move involves a number of costs including hiring a company to transport personal effects and furniture, hotel stays and meals (if the move involves driving a long distance to a new home), and service fees to disconnect and reconnect utilities. In addition, renters who leave on short notice may have to pay the cost of breaking a lease.

Homeowners will incur closing costs and commissions on the sale of their home as well as legal and other fees on the purchase of their new home. This article provides information regarding tax deductible moving expenses.

To claim moving expenses on your taxes, your move has to meet the following conditions:

You moved to your new home or new apartment to start a job or a business, or to attend full-time post-secondary courses at a university, college or other educational institution
Your new place of residence is at least 40 km closer to your workplace or school than your previous home.
You moved from one place in Canada to another place in Canada.
Two groups are eligible to deduct a portion of their moving expenses: students moving away from home to attend school and people moving to a new area for a job or relocation by their employer. There has been a challenge to the rules regarding eligibility for the self-employed as you'll read later in this article.

Students

Students must fulfill two main qualifications: the distance between your home and school must be at least 40 km (by the shortest public route) and you must be a full-time student. A full-time student is defined as someone who regularly attends a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not) and is taking at least 60% of the usual course load during each semester.

As a student, you can only deduct eligible moving expenses from award income (scholarships, fellowships, bursaries, prizes, and research grants) that you report on your return. Your moving expenses must be greater than your award in order to deduct any moving expenses. As Revenue Canada's website reads, "If your moving expenses are more than the award income you report for the year, you can deduct the unused portion of those expenses from the award."

Although many students will not earn award income and will therefore not be able to deduct moving expenses, tuition fees themselves are a tax deduction. If a student has a part-time job, tuition can reduce taxes paid on those earnings. Students who meet the qualifications and have received award income can deduct the costs of travel, shipping and transportation of belongings, as well as items listed below under 'Expenses you can deduct'.

Employees

If you are moving for work (e.g. a company relocation or new job), are employed and establish a home at least 40 km closer to a new job than your old home, then you qualify to deduct moving expenses. Similarly, if you are self-employed, and you establish a home at least 40 km closer to your new operational business than your old home, you also qualify to deduct moving expenses.

According to Revenue Canada, you must establish your new home as the place where you and members of your household ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home.

Employed and Working from Home: an Exception to the Rule

Until recently, employees who work from home and move have faced some restrictions regarding moving expenses. In the court decision Gary Adamson v. the Queen, Mr. Adamson had incurred moving expenses as an employee who was required to provide his own office in his home.

Expenses you can Deduct:

transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers;
traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence (you can choose to claim vehicle and meal expenses using the simplified method);
costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household (you can choose to claim meal expenses using the simplified method); and
the cost of canceling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

When your old residence is sold as a result of your move, eligible moving expenses also include:

legal or notaries fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence, and
the cost of selling your old residence, including advertising, notarial or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

Expenses that are not Deductible:

expenses for work done to make your home more saleable;
any loss from the sale of your home;
expenses for house-hunting trips before you move;
the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products;
expenses for job hunting in another city (such as traveling expenses);
expenses to clean or repair a rented residence to meet the landlord's standards;
expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets;
mail-forwarding costs (such as with Canada Post);
costs of transformers or adaptors for household appliances; and
costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved.

Remember to keep receipts and documents supporting your claims, you do not have to include these documents in you tax claim but Canada Revenue Agency may want to see them at a later date.

Keep in mind that this article is for information only. The tax laws are frequently modified. We recommend that you visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim or consult a professional accountant to maximize your tax return.

How Will the New Mortgage Rules Affect the Canadian Market?
Finance Minister Jim Flaherty recently unveiled new mortgage rules aimed at stopping housing speculators and ensuring homebuyers can adequately handle their debts when interest rates inevitably rise. Mr. Flaherty stressed that Canada's real estate market is healthy, and that the new rules, which take effect April 19th, would stop “negative trends” from development.

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," commented Minister Flaherty.

"The underlying message is that Canadians should be prudent in the obligations they take on because we can all expect that mortgage interest rates will rise over time," Flaherty added.

Here is a quick look at the changes which apply to government-backed insured mortgages:

1. Borrowers must now qualify based on a five-year fixed rate even if they choose a mortgage with a lower interest rate and shorter term. The government’s rationale for this change is that it will help borrowers prepare for higher rates, although it may squeeze the purchasing power of home buyers. It remains unclear whether borrowers must qualify at the five-year posted rate or the five-year discounted rate.

2. The maximum amount Canadians can withdraw in refinancing their mortgages will be reduced to 90% of the value of their homes, instead of 95%. This change will help ensure home ownership is a more effective way to save. The impact of this change is expected to be minimal as relatively few homeowners withdraw equity from their homes to this extent.

3. A minimum down payment of 20% will be needed for government-backed mortgage insurance on non-owner-occupied properties “purchased for speculation,” which realistically means rental properties. While this measure is intended to hamper the speculative buying of properties by reducing the leverage of buyers, it will also impact those buying real estate for general investment purposes.

How will these changes affect the Canadian real estate market?

For most consumers, the changes are unlikely to make it harder to get a mortgage but it could reduce the size of the mortgage an individual consumer can negotiate with a lender. And they might have to look at buying slightly less expensive properties.

People buying real estate for investment purposes including those looking for rental properties may find it harder to get into the market as they have to shell out more money form their own savings.

Undoubtedly there will be a rush of mortgage applications to beat the April 19th deadline. However it is expected some lenders will start to implement these guidelines before April 19th.

Some volatility is expected in the housing market in the short term as home buyers rush to beat the April 19th date. After that, the activity will likely fade because so many buyers moved up their purchases. This could end up softening the sharp year-over-year price increases that have been characteristic in many cities recently.

The economic implications of this rule change are unlikely to be severe, and we expect the housing market to slow its ascent without crashing down.

Toronto -Ontario - A Great Start to 2010 for Ontario Housing Market

Toronto, March 3, 2010 - Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77% increase over February 2009. The average price for these transactions was up 19% year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

“Increases in existing home sales and average price were noted across the Greater Toronto Area (GTA) in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said Toronto Real Estate Board (TREB) President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

New listings also increased in February, climbing 24% compared to the same month last year.

“Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.”

Ottawa, March 5, 2010 - Members of the Ottawa

Market Watch – March 2010

Canadian Housing Market Continues Its Healthy Upward Trend

The Canadian housing market continues its healthy upward trend across the country, with significant increase in both number of sales and sale value. This trend is expected to continue through to early Spring as we approach the upcoming changes to mortgage qualification rules.

Buyers in Ontario and British Columbia are aware of two key changes that could impact their purchasing ability. The new mortgage rules coming in April, plus the Harmonized Sales Tax in July.

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Larry Westergard, president of the REALTORS® Association of Edmonton.

Cabbagetown Open House this Saturday & Sunday 2-4pm, Chttp://tinyurl.com/yck5vyd

Electric Car Charging Stations Gain Speed

California-based KB Homes is offering high-voltage vehicle charging stations as an incentive for buying in its newest developments in the Los Angeles area.

The number and popularity of electric cars is increasing with Nissan, GM and Ford either already offering models or about to. Electric car sales have been particularly successful in this region of California.

These cars all have batteries requiring charging. Homes that are equipped with a charging station that does the job quickly could eventually make the home more valuable, KB says.

Everything you need to know about HST and Tax Credits coming our way July 1, 2010

Harmonized Sales Tax (HST) and Comprehensive Tax Package

www.rev.gov.on.ca

Ontario's proposed Harmonized Sales Tax (HST) and comprehensive tax package would be the most important tax reform in a generation. Many Ontarians would also receive a personal income tax cut in January

L Tower + Sony Centre Construction Update

Here's a birds eye view taken from BCE Place yesterday afternoon of the new L Tower under-construction. Work has started on the south west corner of the Sony Centre, where this 57 storey condo is slated to rise.

Developed by Castlepoint, Fernbrook and Cityzen, it is designed by Daniel Libeskind in tandem with P&S. Libeskind is, of course, famous locally for his design of the recent addition to the ROM.

This is one project that should be extremely unique and, as skyscraper geeks, we are super excited to see it rise.

Choose mortgage words carefully

When it comes to your mortgage contract, watch your language.

Most consumers only look at their mortgage contract --one of the most important documents they will ever sign -- just before they are about to close on a house, says Toronto real-estate lawyer Steve Brett.

"It's very rare they come to me [first]. In residential transactions, they usually strike the deal first," he says. "The mortgage commitment comes shortly prior to closing. I'll talk to people over the phone and they'll say, 'These are the terms of the deal--is that the way it should be?' "

For about $200, Mr. Brett says a consumer could run a pre-approved mortgage by him before buying a house. "But in 35 years, I've never had that happen. I sometimes might get asked [to look at a mortgage contract] on refinancing."

Even the most basic mortgage contract terms, such as what constitutes the "prime rate" on a variable-rate mortgage, can create confusion.

"There can be different meanings to things like the prime rate or the base rate," Mr. Brett says. "They could have prime rate of 2%, but the base rate for residential mortgages might be prime plus one [percentage point], so their prime rate becomes 3%. Clients could get into difficulty thinking they are getting a heavily advertised prime rate but they are not."

He had a customer come in recently with an offer of financing from a mortgage broker that said he was getting the "prime rate" from a specific company. "I pointed out that [their version] of prime rate might not be the same as the banks'. He might have to pay a higher rate. His prime could be bank prime plus half a percentage point."

A bigger issue for consumers might be what their contract says about locking a variable-rate mortgage into a fixed rate during the term of the contract, usually five years. If they take advantage of the ability to lock in the rate, who gets to decide what that rate will be?

"It can be pretty open-ended. The banks' posted rates, for example, are not the real rate," Mr. Brett says. "You've got the right to lock in, but you are going to want to negotiate that rate and all the bank is obliged to do is give you the posted rate."

Mr. Brett says a preferable position would be to have a contract that says you have the right to negotiate at certain discounts to the posted rate if you lock in. "You always have the right to go elsewhere," he says, adding that can mean financial penalties.

Gary Siegle, a Calgary-based regional manager with Invis Inc., a mortgage broker, advises consumers to forget what is said to them verbally and try to understand what the terms in their contract actually mean.

"If it says you get the prime rate, you need to know how they will be establishing [that rate]. Is it on the company website? Is it based on the Bank of Canada rate?" Mr. Siegle says. "Consumers hear these words all over the place and they need to establish what they mean. You need to make sure your contract has a measurable rate."

He says most variable-rate mortgages are pretty standard: The consumer gets the prime rate plus or minus a certain number of basis points. There is little room for argument.

The debate begins, he says, when consumers want to lock in their mortgage and start stumbling over the terms in the contract. Defining the rate, however, is usually the biggest issue. "Often, that part is not clear," Mr. Siegle says.

So, make sure it is before you sign.

Vast majority of Canadians view buying a home as a good investment

Home purchase intentions full steam ahead: RBC poll

TORONTO, March 8, 2010 — Homebuying momentum in Canada continues to gain steam with the portion of Canadians who are very likely to purchase a home in the next two years rising to 10 per cent from seven per cent two years ago, according to the 17th Annual RBC Homeownership Study. Younger Canadians, aged 18 to 24, will lead the charge this year, with those very likely to buy almost doubling to 15 per cent from eight per cent in 2009.

The RBC study conducted by Ipsos Reid found that 91 per cent of Canadian homeowners believe a home is a good investment, the highest level in 12 years, and one-quarter (26 per cent) expect their home to be their primary source of income when they retire.

"With the Canadian housing market showing continued vigour, it's not surprising that Canadians feel more confident in the long-term value of owning a home," said Robert Hogue, senior economist, RBC. "Exceptionally low mortgage rates and improved affordability have been key reasons for the resurgence in the housing market this past year."

Most Canadians who intend to buy a new home in the next two years are planning to take a fixed rate mortgage (44 per cent). However, combination mortgages had the highest increase in popularity this year, with 40 per cent intending to take both a variable and fixed rate component, up from 32 per cent last year.

For Canadians planning to take a fixed rate or combination mortgage, seven-in-10 intend to take a term of five years or longer. Sixteen per cent said they intend to take a variable rate mortgage, down from 20 per cent in 2009.

"Canadians seem to be opting for more caution this year and may be factoring in potential rate increases down the road," said Marcia Moffat, RBC's head of home equity financing. "Choosing a combination mortgage can take some of the guesswork out of making a decision between whether it is better to lock in to a longer-term or stay in a variable rate."

In the wake of the recent housing rebound, most Canadians (six-in-10) also believe housing prices will rise in 2010, up significantly from 25 per cent in 2009. Similarly, a majority (64 per cent) believe mortgage rates will be higher over the next year, also up from 33 per cent a year ago.

"The expectation of higher mortgage rates on the horizon could be motivating buying intentions this year. But it's important that homeowners - especially first time buyers - get solid advice about what they can afford, not only today, but down the road," added Moffat.

In addition to seeking customized advice from a financial advisor, Moffat provides the following tips:

For homebuyers:

1. Lock in your rate when you apply for your mortgage.
Depending on your situation, there are rate guarantees that allow you to lock in your mortgage rate for up to 120 days.

2. "Stress test" your mortgage for rate increases.
If you are concerned about affordability down the road, knowing what your payments would be with a one - three per cent rate increase will give you greater peace of mind that your new home is affordable both today and in a few years time, when rates might be higher.

3. For first time homebuyers, leave some wiggle room.
With a pre-approved mortgage you will know what you can afford today. But before making a decision to find a home at the top of your pre-approval amount, also consider your current lifestyle preferences and how future changes in your circumstances could impact your payment comfort zone.

For homeowners renewing their mortgage:

1. Take advantage of early renewal options.
Some mortgages allow you to renew up to 120 days before the end of your term. This means you can lock in your new mortgage rate early.

2. Consider a combination (hybrid) mortgage to manage your interest costs.
If you are unsure of where rates are headed, consider splitting your mortgage into part fixed and part variable. You will have rate protection on the fixed rate mortgage portion, while you benefit from today's low interest rates on the variable rate mortgage portion.

“Vision without action is a daydream. Action without vision is a nightmare.” -Japanese Proverb

"Courage is being scared to death - but saddling up anyway." - John Wayne

Toronto Real Estate Feb 2010 Chart

March Events

* March 9th - Commonwealth Day
* March 12th-21st - March Break
* March 14th - Daylight Savings Time begins
* March 17th - St. Patrick's Day
* March 20th - First day of Spring!
* March 28th - Palm Sunday
* March 30th - Passover

* March is: Red Cross Month; Help Fight Liver Disease Month; National Nutrition Month; National Epilepsy Month; Learning Disabilities Awareness Month

Things To Do On March Break In Toronto

During March Break, many of Toronto's major attractions have extended hours and/or special programming. Kids can explore and create at many of the city's museums, galleries and historical sites. Below is a list of family outings.

Royal Ontario Museum (ROM)
The ROM has full and half-day camps for children ages five to 14. Kids learn about sorcery, go on archeological digs and examine live specimens. Also, check out the new bat cave open on February 27. The ROM has extended hours until 8:30 p.m. from March 13 to March 20. Admission is also half-priced to the museum after 4:30 p.m. On Sunday, March 21 the ROM is open until 6:30 p.m. Also, the first 50 children admitted into the museum during the break will receive a free bat t-shirt.

Ontario Science Centre
The Science Centre is all about sports this March Break. Greg Tarlin and Kristi Heath perform comedic routines and stunts to show that science is much more than just a demonstration of sport. There's also IMAX films to check out and the popular KidSpark. The hours are extended during the March Break week from 10 a.m. to 6 p.m.

CN Tower
The CN Tower offers meet and greets with SpongeBob SquarePants and Dora, a chance for kids to make their own jewellery with beads that change colour and Battle Strikers Top Tournaments. Kids and families can also see Toronto from a different point of view aboard the glass-fronted and -floored elevators. The tower is open daily from 9 a.m. to 10 p.m. and the attractions inside are open from 11 a.m. and 7 p.m.

Toronto Zoo
Families can keep warm inside any of the tropical pavilions. The newest edition to the zoo is baby gorilla Nassir. With a hot chocolate in hand, guests can also hear Keeper Talks along the trails. A new highlight is the Tundra Trek Exhibit with polar bears, Arctic wolves, reindeer and more. The extended hours for March 13 to March 21 are 9 a.m. to 6 p.m.
Art Gallery of Ontario (AGO)
The King Tut Returns exhibit has people talking, with 130 pieces from King Tut's tomb. On until April, it's a time-ticketed event. Children under five are always free at the gallery and Wednesday evenings are free for everyone from 6 p.m. to 8:30 p.m. (King Tut exhibit excluded).

Bata Shoe Museum
Kids are invited to take part in footwear-themed arts and crafts. They can decorate small clogs or make a shoe fridge magnet. Also, there's a treasure hunt in the galleries and a chance to be part of a collective collage. The drop-in activities are between 11 a.m. and 4 p.m. (March 15 to March 19). The special pricing is $8 each for both children and the adults accompanying them.

Historic Fort York
Kids are encouraged to dress up, make crafts, participate in a sword drill, listen to storytelling and more during the break. This annual event happens March 15 to March 19, 10 a.m. to 3 p.m. daily. There's no registration and admission is regular price.

Casa Loma
Toronto's castle turns into a fairytale during March Break. Robin Hood: Welcome to Sherwood Forest consists of several events. The comedy troupe, Men in Tights, perform in the library, master ventriloquist Tim Holland performs in the billiard room, costumes of princes and princesses adorn the second floor hallway and characters like Maid Marion and Friar Tuck roam around the castle. Casa Loma is open daily from 9:30 a.m. to 5 p.m. and admission for the special event is anywhere from $11.50 to $19.

Hockey Hall of Fame
This hockey-lover's favourite attraction offers a chance to take shots on real-time goalies, call play-by-plays on some of the greatest goals, see hockey flicks and get up close and personal with the Stanley Cup. Between March 13 and March 21 the Hockey Hall of Fame has extended hours, 9:30 a.m. to 6 p.m. from Monday to Saturday and 10 a.m. to 6 p.m. on Sunday. Click on Kids Free for a coupon valid until April 30, 2010.

Toronto Botanical Gardens
The gardens offer a place for kids to get their hands dirty. Some of the camps allow kids to cook food, examine carnivorous plants, learn about how animals protect themselves, play music, paint and more. The camps are March 15 to March 19 from 9 a.m. to 4 p.m. and are geared towards those six to 10 years old.

Aluminum Wiring

Houses with aluminum wiring are generally safe and do not cause concern even on the insurance level.

Most of the Insurance companies identified that your homes electrical panel is your main concern.
If your home still has an older fuse type panel, it could be a major insurance, and safety risk. Fuse panels can be upgraded to breaker panels quite easily, and at a lower cost than rewiring an entire home.
The main areas of concern with aluminum wiring are your homes connectors and receptacles. When aluminum wiring was first being installed, the same receptacles and connectors were used as for copper wire, but this does not work.

The connections can become loose and overheat, possibly causing a fire. According to the mostly certified Licenced electricians that receptacles can be retied with copper tails, which is roughly a 1-2 day task to refit an entire home.

This increases your homes safety and brings it up to today's code standards.

Knob & Tube Wiring

Knob & Tube wiring is a type of wiring which was in common use until the 1940's. More than 1.5 million homes across Cana
da were built with knob and tube wiring. It was an early form of electrical wiring that was used up to 1945. So, many homes still have it but is now considered too risky and dangerous to be insurable, and for your own safety, and home resale value it should be replaced with copper wiring.

Knob & tube wiring is comprised of insulated wires clamped on two-piece porcelain knobs; positive and negative are carried separately. Hollow porcelain tubes carry the wires, through beams and other combustible materials. Modern electrical codes do not permit this type of wiring. It can present a hazard if tampered with, particularly at unenclosed, soldered-and-taped junctions. The unsheathed insulation is subject to deterioration, particularly where it is exposed, that is, not enclosed in a wall or ceiling. Worn insulation, of course, presents a shock hazard

The ESA's (Electrical Safety Authority) recommendation to insurance companies on knob and tube wiring is that they ask for inspections to make sure the wiring is safe. It does not recommend denying someone insurance simply because they have some knob and tube wiring, although individual insurance firms can refuse coverage for homes with knob and tube wiring as they see fit

Yorkville. The land of Canada's rich and famous.

The land where people do not like change.

Well, looks like some change is coming to the glamorous and historic street of Hazelton Avenue, much to the dismay of the lobby group "SAVE YORKVILLE!". Check out Hazelton 36 [map].

I don’t know much about the current plans for this building, but am excited for it!

Intensification! A 5 minute walk to two subway lines. A 2 minute walk from a grocery store. A 5 minute walk from another grocery store. An 8 minute walk from, yet another, grocery store. Nearby gyms, art galleries, bars, restaurants. ...etc...etc...etc.. This is a fantastic place for a new condominium and intensification.

As for the nay-sayers who live on Hazelton (errr... the owners of all the rental houses in the area)? Too bad.

Unfortunately, I hear that the building has been brought down in height and number of units? Time will tell. Lets hope Ken Zuckerman reads BuzzBuzzHome, and will contact me with some further details.

Coming May 2010! Cant wait to see more details!

Experienced REALTORS can provide knowledge and expertise on new home purchases.

More on Toronto Real Estate on March 3 2010

Toronto housing market expected to cool in 2010
March 3 2010


GTA homes market to cool...

The Toronto-area real estate market will continue to do well in 2010 before retrenching significantly next year, a CMHC forecast says.

Sales of new and existing homes in the Toronto area should fall significantly next year, as the market continues to slow, according to a forecast released today.

The Canada Mortgage and Housing Corporation said existing home sales will drop to 83,000 units, falling by 9.3 per cent over 2010.

The new homes market will be even harder hit, falling by 38.5 per cent over 2010 figures according to the federal housing agency in their first outlook for 2011.

New mortgage rule changes, higher interest rates and the introduction of the harmonized sales tax in Ontario will all have an impact on sales, say analysts.

Still, 2010 is expected to be an extremely healthy year with sales surpassing last year. New home sales and existing home sales are expected to be 29 per cent and 2.5 per cent higher respectively over 2009.

The CMHC also expects sale prices to be up significantly this year by 8.5 per cent over last year. However, price appreciation and sales are expected to decline as the market slows moving forward.

Bank of Canada - Rate Watch - March 2 2010

Rate Watch

The Bank of Canada announced today that it is leaving its key interest rate unchanged, and repeated its commitment to hold the rate steady until the second quarter of 2010, conditional upon inflation.

In its statement the Bank judges that the factors affecting its inflation outlook are “roughly balanced” at this time. “On the upside, the main risks are stronger-than-projected global and domestic demand. On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar.”

The Bank also noted that “the economy grew at an annual rate of 5 per cent in the fourth quarter of 2009, spurred by vigorous domestic spending and further recovery in exports.”

Pricing for loans that are typically linked to a lender’s prime rate (such as variable-rate mortgages, variable-rate credit cards) is expected to remain unchanged in the wake of today’s announcement. Pricing for fixed-rate mortgages is not directly affected by the Bank’s key rate.