Mortgage Insurance: What are your options?

.[caption id="attachment_2043" align="alignright" width="300" caption="Credit to Feathered Tar photostream on flickr"][/caption]Buying a new home is an exciting experience because it represents your hopes and plans for the future. For most Canadians, it also means having a mortgage and making regular mortgage payments. Often the financial institution you have your mortgage with will offer you mortgage insurance. Is it the right thing to do? Does it offer the protection you need?

What is mortgage insurance?

Mortgage insurance pays off the amount left owing on your mortgage if you pass away. Here are some facts you should know before deciding on how best to ensure that your mortgage is paid off in the event of your death:-        The amount covered by mortgage insurance decreases as the amount owing on your mortgage decreases. However, premiums DO NOT decrease, they remain the same.-        The insurance proceeds are paid directly to the financial institution.-        You may not be able to take your insurance with you if you move your mortgage to a new mortgage company. This means having to provide current medical and health evidence to become insured.-        You may not be able to insure both you and your spouse if the mortgage is registered in only one person’s name.

What is the alternative?

Having your own individual life insurance policy offers you the protection of covering your family’s financial needs including your mortgage in the event of your death. You also have the flexibility of naming a beneficiary of your choice. Your family may decide to use the benefit to pay down a low interest mortgage and invest the rest. Or they may need the finds to cover other expenses. The choice is theirs.Also, it’s important to remember that since you have an independent life insurance policy from your mortgage, you can transfer your mortgage from one lender to another without affecting your coverage. You can also choose between temporary insurance and permanent insurance which can be a part of your long term financial plan. You are able to insure both spouse for whatever amount you’d like so that you can cover other debt or financial needs as well.The choice is yours but having a discussion with someone that is well versed in both options is important.

To discuss your best options for Mortgage Insurance, please call me anytime.

Land Titles Transfer Tax:  A financial 'kick in the 'nads'

. [caption id="attachment_1890" align="alignright" width="300" caption="Credit to Robert Galloway photostream on Flickr"][/caption] A few weeks ago, I wrote about Winnipeg Land Titles office, and the reason why there is usually a 3 to 4 week delay between the date-of-possession for a home, and the date-of-receiving money for the sale.  A couple of days ago, I sat down with a nice couple who were writing an offer on a house, and the conversation turned to the 'Closing Costs' of the purchase.  The conversation went something like this:

Mr. Buyer: So aside from the lawyers fees (which we had already discussed), what other costs will I need to budget for? Bo: Well, there will be home insurance.  Good news is that you won't have to pay any property taxes, because we're doing this in January.  But of course you have to budget for the Land Titles Transfer Tax. Mr Buyer:  A tax?  Just for changing the title of the house?  How much is THAT going to cost?

I did a quick mental calculation, and gave him the cost, and then watched as his face went thru the classical 5 stages of grief, from Denial ("This Can't Be Right), to Anger ((F*#@ing Govm't), Bargaining (Isn't there a way around this), Depression (Oh, Man.....that's alot of dough) to finally  Acceptance (Well,  It IS a nice house and there is NO WAY around it, short of leaving our province).  So just how much is the government raking in with this tax?

Land Titles Transfer Tax calculation:

While Manitoba is not the only province to impose this tax, it is by far the most aggressive and onerous.  Thru a set of formulas, we arrive at a figure of $1720 for a $200,000-house or condo.  With Winnipeg's average house price hovering around the $230,000 mark, we can see that our Provincial Government is collecting approx. $2000 in taxes, EVERY TIME the title of a house is transferred.  But wait, you say....  didn't Bo just tell us that it costs $1720 for a $200K home? Yes, but I haven't told you the worst part:  ABOVE the $200K price, this tax adds an additional 2% on EVERY DOLLAR. So, a $300,000 home will cost you $3720   (calculated by adding the $1720 base, plus 2% on the additional $100,000 price = $3720) While the Land Titles Transfer Tax is especially difficult for young, first-time home buyers, even people 'with money' find an added tax of 4 grand or more to be a financial 'hit'.  For that reason, Winnipeg REALTORS® have been lobbying to change this regressive tax.  Let's bring it more in line with other western provinces.  Ideally, inline with Alberta, where a $200K home costs $75 in Land Titles Transfer Tax and a $300K home costs $95.  But heck, let's not even look at those numbers, lets instead compare to my wife's home province of Saska-Bush ....  where it costs just $1200 to transfer the title of a $400,000 home.   Manitoba's fee for transferring the Title of a $400,000 home:  $5,720 For a look at more comparisons and for a more in-depth article on the Land Titles Transfer Tax, go to the Winnipeg REALTORS® website at http://2muchltt.com There is even a link to contact your local MLA...remember, next year's election is only about 10 months away.

Let's do something about this Land Titles Transfer Tax.

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Hi everyone:

It's an often-reported fact that Winnipeg's population is aging, and as such Condominiums are becoming quite popular. In fact, there are numerous advantages to owning a condo.

[caption id=”attachment_1197” align=”alignright” width=”240” caption=”Photo by Jonathan Grundy on Flickr http://www.flickr.com/photos/32709437@N02”][/caption]

A separate segment of condominiums are the 55-plus Condos. These are units with bylaws which state that the owner/occupant of the unit must be at least 55 years of age. (Some 55-plus condos have dropped this age requirement down to 50 yrs, in an effort to attract more buyers). By the way, only ONE of the owners of a suite needs to be of the specified age. For example, if the wife is 55, and her husband is 42, they qualify….. and I must add, “Good for Her!!!!”

For the right person, there are a number of advantages to these 'age-specific' condominiums. Here are a few:

1) Security: Many of these 55-plus condos are built with security in mind, sometimes with security cameras but almost always with good secure locks on well-lit entry ways.

2) Handicap accessible: Many buildings feature wider-than-normal hallways, doors and bathrooms, to allow access via wheelchair or walker.

3) “Community Spirit”: Quite often, the residents organize weekly pot-luck dinners, shopping trips, card-games and other outings.

4) “Birds of a Feather”: Since everyone in the building is 55-plus, and most often retired, residents tend to have a lot in common, and friendships are made easily…. if you WANT to do so.

5) Conveniences: Local grocery stores often arrange weekly bus-trip to their shops. Some condos arrange for a local nurse to attend monthly, or bi-monthly for a general visit.

6) Amenities: 55-plus buildings often feature amenities not found in regular condos. Things such as a library, a meeting room, a lounge with kitchen, a fitness room and more.

Home-owners who are thinking of selling their houses for a variety of reasons (want to travel, no more yardwork, security issues), but don't feel they are ready for a retirement community, might well consider checking out a 55-plus Condominium. There are a growing number of such communities in Winnipeg. For a sample list of addresses which feature “age-restricted' condos, click on '55-plus condominiums”.

In addition, there is a brand new building, which (at the time of this post) has a couple of suites for sale. To see one of these listings complete with interior photos, click here.

If you're thinking of selling your current home, and wish to discuss your options, please call me anytime. Bo Kauffmann at Remax Performance Realty 204-333-2202.

Hi everyone:

As we do every month, Winnipeg REALTORS® have issued their monthly real estate market update on MLS® statistics regarding the sales and listings of houses and condominiums in Winnipeg for September 2010.

[caption id="attachment_1191" align="alignright" width="240" caption="Photo by ryemang's photostream on Flickr"][/caption]

As always, these statistics cover the sales and listings for the entire south-east area of Manitoba, including Winnipeg, Steinbach, and all towns and rural areas in this vircinity. For a look at my own real estate market update of Winnipeg-only, see this Real Estate Market Update Video.

For the month of August, 2010, Winnipeg REALTORS® report that sales were down 12% when compared to August 2009, and dollar-volume was off 5%. Overall, however, dollar volume for the year was up 11% to this point, when compared to 2009. As well, the numbers of listings entered onto MLS®, at 14,843 so far, was up 15% when compared to the same time in 2009.

As usual, the most active segments of the market were homes in the $150,000 to $199,999 range, and the $200,000 to $249,999 range, which had 22% and 21% of the market, respectively. This is to be expected, as these usually represent the price ranges for 'first time buyers', who are after all the driving force behind the Winnipeg Real Estate Market.

Days on Market, which measured the time it take to sell a home, for residential detached homes was at 30 days, which is equal to August 2009, and 2 days slower than July this year. Of note is the fact that homes in the $150,000 to $200,000 range sold in only 20 days. Condominiums are still an excellent alternative for the first time buyer.

As for condominiums, the most active price ranges were in the $150,000 to $199,999 range, followed by the $100,000 to $149,999 range at 33% and 27% respectively. Average days on market for condos was 34 days, which is 3 days slower than July, but 6 days faster than August 2009.

For a complete look at the press release, click on Press Release 09-09-10 August 2010 MLS Statistics

If you're thinking of buying or selling a house or a condo in Winnipeg, call Bo Kauffmann of Remax Performance Realty for a realistic market evaluation. Call 204-333-2202 today.

Hi everyone:

I just came across an excellent resource for mortgage rate, interest rate, insurance rate and credit card rate information. Check out the blog at ratesupermarket.ca

This site features input by some very impressive contributors. While NO ONE can predict interest rates with 100% accuracy, being able to draw on the experience of some of the countries top mortgage experts gives ratesupermarket a nice advantage in this effort.

The site blog includes categories such as Mortgage Tips, Housing Market, Real Estate and dozens of others.

This month's Mortgage Rate Outlook predicts that fixed rates are expected to remain the same, 'with downward bias', and variable rates are also expected to remain the same.

This continues to be an excellent time to purchase a house or condo in Winnipeg. Inventory levels are up slightly, and due to summer vacations, buyer activity is down a little, meaning that your chances of finding and actually getting a house are increased.

If you're looking to purchase a home (house or condo) in Winnipeg, please call me anytime. Bo 204-333-2202

Hi everyone:

This has happened to me a couple of times this spring: a 'new' client (new to ME) calls me and we meet in my office and discuss the house (or condo) buying process. I will usually ask; "Have you looked at homes recently?" On a couple of occasions, the reply has been; "Yes, but our last agent didn't explain anything to us. He just sent us the listings and when we wanted to write an offer, we lost the house by $30,000"

Those buyers were not upset at loosing the house..... they WERE upset at getting 'blown out of the water' with no guidance or assistance from their real estate agent.

And so the reason for the headline of this post: "FINDING a house or condo is EASY". It really is. Here is what you do: Pick up the phone or send an e-mail to any one of the 1400+ REALTORS® in Winnipeg. Most will be only to happy to set you up on an automated search thru the new Keystone MATRIX® search system (an excellent system, by the way... check out this video)

After setting up the search, you'll be receiving listings by the dozens, maybe even by the hundreds. Then, when you find a house you like, you can call or e-mail that REALTOR® and go see the house and then even write an offer on it. This is where the problem occurs. Are you truly prepared for the bidding process? Have you been pre-approved by the RIGHT lender? Are your funds still tied up in RRSP's and will it take a couple of weeks to free them up? What's the house of your choice really worth? Can you trust the agent (whom you've never met until the day of the offer)? How much are your "Closing Costs"......

These questions just scratch the surface of what is required to actually GET the house or condo of your choice. So, FINDING it is easy....... GETTING it requires a little prep-work. That's why I start out with a meeting in our office, where we can make certain that you are prepared and ready.

If you're serious about buying a house or condo, call me anytime. Let's get started...

Bo   333-2202

Hi everyone:This has happened to me on a couple of occasions:  I meet with a new buyer for the first time, and we start to go over the buying process.  In this meeting, I explain what the market is doing, how best to write an offer, and generally discuss and describe the entire buying process.On more than one occasion, the buyer exclaimed:"We never knew THAT!".....  or, better yet: "Our LAST agent never explained THAT."In speaking to them further, I learn that they had been receiving listings from another agent, gone out to look at a few houses, tried to put in an offer and were promptly 'blown out of the water' by other, better prepared buyers.  So here is my point : FINDING a house or condo is the easy part.  The listings are out there, on MLS®, in magazines and newspapers and on the internet.  But FINDING is only a small part of what I do....  the key is in the PREPARATION.  To be blunt: We're not buying a pair of pants, a book or a loaf of bread.  We ARE about to invest hundreds of thousands of dollars into the real estate market, and we're doing it at a time when there is heavy competition for the same house we want to buy.  Being PREPARED is key to winning these multiple-bid situation.I have created a "Home-Buying Brochure" which helps my house and condo buyers understand the process.  A PDF version of this brochure is attached here for your information.  I do hope you find it helpful.  If you have any real estate related questions or comments, please call me anytime.  And of course, if you're looking to buy a house or condo, I'd love to help you FIND and GET the home of your choice.Click here to download your Free Guide:                          Bo's Home-Buying Guide

Hi everyone: This has happened to me on a couple of occasions:  I meet with a new buyer for the first time, and we start to go over the buying process.  In this meeting, I explain what the market is doing, how best to write an offer, and generally discuss and describe the entire buying process. On more than one occasion, the buyer exclaimed:"We never knew THAT!".....  or, better yet: "Our LAST agent never explained THAT." In speaking to them further, I learn that they had been receiving listings from another agent, gone out to look at a few houses, tried to put in an offer and were promptly 'blown out of the water' by other, better prepared buyers.  So here is my point : FINDING a house or condo is the easy part.  The listings are out there, on MLS®, in magazines and newspapers and on the internet.  But FINDING is only a small part of what I do....  the key is in the PREPARATION.  To be blunt: We're not buying a pair of pants, a book or a loaf of bread.  We ARE about to invest hundreds of thousands of dollars into the real estate market, and we're doing it at a time when there is heavy competition for the same house we want to buy.  Being PREPARED is key to winning these multiple-bid situation. I have created a "Home-Buying Brochure" which helps my house and condo buyers understand the process.  A PDF version of this brochure is attached here for your information.  I do hope you find it helpful.  If you have any real estate related questions or comments, please call me anytime.  And of course, if you're looking to buy a house or condo, I'd love to help you FIND and GET the home of your choice. Click here to download your Free Guide:                          Bo's Home-Buying Guide

Hi everyone:

My client was very happy to be able to purchase this excellent home at 1140 McMillan Ave last night.

If you're thinking of buying a house or condo in Winnipeg, call me at 333-2202. FINDING a home is easy....being prepared to compete and GET the house of your choice is key...... call me to get prepared.

Hi everyone:

As a real estate agent, I receive many requests to "Send Me Some Listings". Many of my competitors are putting out ads that say "Call me for the latest listings", and it seems that the average house and condo buyer believes that this is all an agent does. In my humble opinion, FINDING the listings is just a small part: I think that PREPARING an EDUCATING the buyer to compete in today's market is far more important. This is also a reason why several buyers have recently come to me after working with other agents and seemingly getting nowhere.

Here is my list of 7 Reasons Why a house or condo buyer in Winnipeg should be working with their own agent!

1) Save Time

As their agent, I can show ANY listing to my buyer. Whether it's Re/Max®, Century 21®, Royal LePage® or any of the 180-plus brokerages in Winnipeg.

2) Save Money

Often, I may be able to save my buyer money when it comes time to make the offer. I may have valuable information regarding the listing of their choice, which can help the buyer make an informed decision.

3) Convenience

Every call a Listing Agent and wait for hours for a call-back? And then make the appointment according to the agent's schedule? By working with me, my buyers enjoy direct access, quick callback and convenient showing scheduling.

4) I Represent My Buyer

Did you realize that the Listing Agent works for the Home-Seller. Doesn't it make sense to have your own REALTOR® working for you?

5) Get Results

There are ways to win these "Bidding Wars", and yes, even ways to avoid them in the first place. Let me show you how.

6) Get the "Straight Goods"

You may not always like the answers, but you're gonna get 'em.

7) My service is Free

That's right. No gimmicks. In every case, the Home-Seller has already set aside the amount for a Buyer's Agent.

So if you're thinking of buying a house or a condo, please call me anytime. I'll make certain that you're prepared for the market, and represent you every step of the way.

Hi everyone:

In this crazy time of bidding wars (especially on entry-level houses) a first time buyer might consider purchasing a condominium for their first home. In fact there are many great reasons to buy a condominium, not just for a first time buyer. To see a list of reasons, read 7 Reaons

With 700-sq-ft bungalows selling in the south end of the city for over $200,000, there are a number of condominiums available for prices perfect for the first time buyer. To find out a little more, read Condos between 120K and 180K

As an example, an 800 sq ft apartment style condominium, with upgraded kitchen, bath, flooring, new appliances and much more, sell for approximately $160,000. And 1100 sq-ft townhouse condos, with c/air and insuite laundry can be purchased for approximately $165,000 to $170,000.

As an added bonus, although condominiums sometimes do receive multiple offers, these situations are far more rare, making condominiums an excellent choice for the first time buyer who need to put financing conditions into their offers.

Hello everyone:

These days, with 'bidding wars' all too common in the 'entry-level' price range of $150,000 to $250,000, condos are an excellent alternative for first time buyers. When 700-sq ft homes are selling for $220,000 (without garages), there are 1100-sq-ft condos with insuite laundry, central air, full appliances and more.... selling for $165,000.

Currently in the south end of the city, there are 46 condos for sale in the $120,000 to $180,000 dollar range, many of which are NOT subject to the 'multiple offers' that individual homes are receiving. If you're thinking of buying your first home, take a look at some of these condos. To receive a list of available units, e-mail me at boknowshomes@gmail.com

Hi Everyone:

I've been invited to speak to a Heritage Group, comprised of retiree's who are interested in learning more about condominiums. In preparation for this presentation, I've examined some of the main reasons why condominiums in Winnipeg are popular, and some of the advantages that come with the condo life-style. So here we go:

1) A cost-effective alternative to houses

I've just listed and sold a 700 sq ft bi-level home which received 11 offers and sold for well over $200,000. No garage, no appliances included, nothing fancy...a good solid house with a few upgrades. By comparison, there are 1100 ft condos, with central air and central furnace, insuite laundry and all appliances that will sell for approx. $165,000. For First Time Buyers, who are sick of the bidding wars, this is an excellent alternative.

2) Lifestyle

Do you like to travel? Or perhaps you're both working full time and looking after the house and yard is a chore you simply don't have time for? Condos offer a simple 'lock-up-and-go' lifestyle. In many cases, your neighbours won't even know you're gone,....unless you tell them.

3) No Yardwork

Getting tired of shoveling all winter, and mowing all summer? Is house and yard maintenance weighing you down, or simply getting away from you? With Condos, you don't have to lift a finger. Walks are shoveled, grass is cut, garbage is picked up and halls and common grounds are cleaned and maintained. Just enjoy...

4) Security

Condos (especially Highrise Units) offer secure entrances, with security cameras and often even patrolling security companies. As a former police officer I can tell you that break-ins to high-rise condos are rare. While they DO occur, when compared to break-ins to houses, they are statistically insignificant. Piece of mind living in a secure condo.

5) Community

Many condo owners find that in a condo, their neighbours are enjoying a similar lifestyle, and so they have more in common with these folks. Many condos also offer "common-rooms" where people can get together and talk, or fitness rooms, pools etc etc. This is especially true for the 55+ buildings where all your neighbours are in a similar age group as yourself.

6) Lower Operating Costs

In most condos, especially in the highrise and townhouse variety, the building insurance is already included in the condo fee. As is the water-bill. And sometimes the heat and hydro as well. Building maintenance is included, so you dont have to worry about replacing a furnace, or the shingles or the windows. And if heat is NOT included, heating a 1000 sq ft apartment style suite is far less expensive than the average 1000 ft bungalow, often even as low as half the cost. (Thats because the units above, below and beside you help insulate you from the elements)

7) Benefits of Home Ownership

With some limitations, condo owners enjoy many of the same benefits as house owners. They can Live in the condo, Rent it out, Improve it, Give it away, Borrow Money against it and basically treat it the same as a house. The limitations (by-laws) are a two-way street: What some people see as limitations, others see as insurance against having a neighbour do something which would negatively affect YOUR property value. (Ex: Try selling your house after your neighbour has turned his driveway into a junk yard or used-car lot)

As a current owner of a condo, and past president of condo boards, I am able to talk about this subject with some level of knowledge and authority. So if you're thinking of a condo, in any style or price-range, please do not hesitate to call or e-mail me anytime.

Bo 333-2202

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I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Are you looking for a house or condo in Winnipeg, and considering purchasing a "Private Sale? Here is a recent example of what happened, and a very good reason why buyers should be working with a REALTOR® when shopping for a new home

Home Buyers in Winnipeg have a new tool at their disposal: REALTORS® use the Keystone-Matrix system which is a huge help for home buyers. There are several neat features in this system.... Here is a look at one of those features.

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it's most often already sold or accepting offers. Open Houses can be very hectic, and you end up 'rubbing elbows' with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can't I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It's no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video. .

I update this Blog on a regular basis, adding new listings, market updates, news and interesting (well, at least I think they're interesting) pieces of information. You can make sure that you receive the posts by two ways: Subscribe to the RSS (check the toolbar along the bottom of the screen) or fill in this form and you'll get the latest blog posts via e-mail, once a week.

Hello Everyone:

Winnipeg REALTORS® have just released their official MLS® sales statistics for the sales during the month of February 2010. Sales and dollar-volumes are up, kept in check only by the lack of 'inventory' on the market.

For dollar volume, for example, this February saw the highest sales-amount for ANY February on record. The $150 million dollars sold surpasses the previous February Record, set in 2008, by a whopping 9%.

Furthermore, 44% of homes sold for "Above List Price", while coincidentally another 44% sold for less than list. (Call me anytime for a one-on-one personal explanation to this statistic). While the number of homes sold in February (712) is lower than past years, this is attributed to the fact that there are not as many listings available. Adding a personal observation, I know several clients who are just in the process of 'fixing' their homes and getting them ready, and I feel that this 'lack of inventory' is coming to an end fairly soon.

The average days on market is down to 29 day, for both houses and condos.

Speaking of Condos, 3/4 of condos sold were in the 150K to 200K range.

For a look at the press release, go here: Press Release for February 2010 MLS sales

Hello Everyone:

We just sold 479 Woodydell Ave in Meadowood area of St. Vital. We had listed it last week, with showings starting on Saturday, Feb. 6th, and offers on Tuesday, Feb. 9th. During those 4 days, the home was shown by 40 REALTORS® to their clients. In the end, the owners received 11 offers.