Tino Sequeira, Sales Representative
Direct Line: 647-207-8466 Visit: www.tinosellshomes.com
The following are the most frequently asked questions by first time home buyers. If you have additional questions or need to discuss your individual situation, please send me your questions in the “Contact” section of my website (www.tinosellshomes.com) or call me at (647) 207-8466 and I will respond to you promptly:
Q Can you please explain to me the Home Exchange and Listing Program (HELP)Ó and How Do Buyers Benefit?
A First of all, after making a decision to buy a home, the next step is to locate the home that meets your requirements, i.e. price budget, type of home (detached, semi detached, townhome, condo apartment, etc.), location, number of bedrooms and washrooms, proximity to schools, shopping, transit, etc. To reduce the home buying stress, I have developed the HELPÓ program which benefits both the buyers and sellers of homes.
Benefit to Buyers:
a)A match is found sooner than later for the property based on the buyer’s criteria.
b)The stress of looking for properties is reduced.
c)Buyers can receive upto 25% refund of the Land Transfer Tax that is paid at the time of closing.
Benefit to Sellers:
a)A buyer is found sooner than later for the seller’s property.
b)The stress of having the house on the market for a long time is reduced.
c)Sellers receive a rebate on the real estate fees (commission) at the time of closing.
Q Why is it said that landlords get richer and renters don’t?
A It is because landlords have taken the trouble of wisely investing in real estate and using their investment to generate income.
Q By renting, I do not have to do maintenance around the home and therefore have freedom of time. Is this not better than owning a home?
A By owning your home, you may or may not have to do the maintenance yourself, but, the main advantage is you have financial freedom when you own your own home (see explanation below). When you have financial freedom, you can engage people to do the maintenance in your home.
Q What do you mean by saying that by owning my own home I have financial freedom?
A I will respond with examples.
If you are paying a rent of $1200 per month today, you are loosing approx. $307 per month over a five year spread. [Based on an example of a $170,000 worth 2 bedroom, condo apt. with 5% down payment, monthly mortgage of $989 (@5.25% rate) gives you a mortgage balance of $147,930 after five years, thus arriving at a saving/equity of $307 per month]. At the end of ten years you have equity of $42,576 on the home you own. If you pay rent for ten years, you have zero equity.
Similarly last year, when the rate was approx. 4.45% you would have earned equity of approx. $338 per month in five years if you had bought a condo then.
Q How can I own a 3 bedroom detached home, if I am currently paying a rent of $1200?
A First of all, based on your income and that of your spouse, you may qualify for a 3 bedroom home sooner than later. In the event, this is not the case, you can always start small and once you build up your equity, you can always move to a bigger home. By continuing to pay rent, you are limiting yourself from taking the first baby step towards owning your own detached home.
Q Can I recover my mortgage payment by buying a home with a finished basement apartment and a separate entrance?
A You have to weigh all your options and make a decision on what is beneficial to you personally and your family. A free and frank discussion with your real estate agent will provide the answers you are seeking.
Q Is it true that mortgage rates are fluctuating? If so, when would it be a good time to buy?
A Recent news bulletins indicate that mortgage rates are falling. For how long this trend will continue has not been determined. However, if you are buying a property (condo/townhome/detached/semi-detached) to be your primary residence, any time is a good time, since from the day you move to your own home, you are starting to build equity which will always have a positive result.
Q I have recently immigrated to
A If you have completed your logistic formalities, i.e. obtained your SIN card, transferred funds from your previous location, etc., and have a sufficient down payment and meet the financial company’s qualifications for a mortgage, you could get a mortgage. Discuss with your real estate agent and a mortgage specialist for specialized advice.
Q I am thinking of buying a home, but have a few more months on my lease. What should I do?
A You have several options depending on your specific situation. Call your real estate agent or call me and I will sit down with you and review your personal situation. The short answer is there is a way to assist you to move to your home and also meet your lease obligations.
Q Does having my own home help me to get a job faster or get approved for credit quicker?
A Not always. However, when completing various applications, sometimes there are questions asking whether you rent or own your home.
Q Can I run a business from my own home?
A In most cases, depending on the local regulations, the answer is "Yes". But, you need to determine that from the local municipality. However, very often, having your own home is conducive to having a home based business and your clients are not inconvenienced as they would be in a rental apartment. Further, you have ample space either in the basement or the garage to carry on a home based business.
Q I have never owned a condo or a home in
A Yes. I can certainly do that. In fact, I have prepared a Home Buying Guide. Once you authorize me to find a home for you, I provide you with an in-depth plan which provides all the details and procedures involved, including using your RRSP’s, lawyers, home inspection, etc.
Q I would like to buy a condo, but do not know whether I qualify to get a mortgage. Who can help me?
A I could help you. Please contact me for a personal discussion and I will give you the immediate information. I would also recommend that you contact a mortgage specialist to get you pre-approved.
Q What happens if I buy a condo or a home and a year later, I may loose my job, or for some reason I cannot afford to pay the mortgage?
A First of all, nobody can predict the future. Secondly, when dealing with a professional mortgage specialist, he/she will ensure that you are given the right advice with regard to the value of the home you can afford and the mortgage that you can pay. However, if due to circumstances beyond your control you are placed in a certain predicament; you are advised to consult your real estate agent and your mortgage specialist immediately, who collectively will try to find a solution. In an extreme case, it is possible that you could sell your condo/home and due to the equity that has built up, you may not incur a loss. Every situation is different and you need to consult the right people, when you have a problem. Remember, there is a solution to every problem. You have to find the right person to speak to.
