We've moved to Oakville! Well, actually, we moved to Oakville when our youngest was two (she's now in second year at Waterloo). Our new Royal LePage digs are in the office building just south of Walmart (next to Greyfriars). We're closer to home and we're closer to our neighbourhood clients. And the nice thing is, we can use any of the Royal LePage corporate offices to meet our Mississauga clients - so we've got the best of both worlds.
Our first office meeting was held this morning and we heard from the office mortgage broker (Darryl Finley - TD Canada Trust) that TD has improved its offerings to new immigrants and self-employed. 75% loan to value is now available through TD. What that means is - TD will lend 75% of the value of a home - the buyer must come up with 25% as a down payment. I'm glad TD has made this improvement - but other lenders were already offering 80%. Scotiabank is one such lender. Vince Gironda, Assured Mortgages works with Scotiabank.
We also talked about appraisals. What buyers and sellers need to know is that financing is based on value and not on price. So if a buyer is approved for 80% LTV (loan to value), they will only be able to get a mortgage for 80% of what the home is worth. Most banks use an APV system which automatically determines the value of a home - but sometimes (short closing, sold over list price, CMHC/Genworth insured) an appraisal is necessary. So, if you are approved for 80% LTV and paid $300,000 for a house that appraises at $280,000 - you won't get a $240,000 mortgage, you can only get $224,000. You'll have to finance the balance of the deposit some other way. That's why it's important that your buyer agent does a CMA on a home before you make an offer. And that's why it's important that sellers understand their home's value - AND what it may sell for - and the difference.
We also heard from Virginia Tinti - a local lawyer who has represented a few of our clients. She reminded us how important it is to have a status certificate. In fact, when Pat and I list a condo property, we order the status certificate in advance so that the clause timeframe can be shortened. It helps our sellers - their deal can firm up faster.
We met a home inspector from Pillar and Post (Mark Farrelly). He suggests keeping humidity levels in a house at 60% or lower to avoid mould. Great idea! Open some windows once in a while too!
If you'd like more information on that 80% LTV product that Soctiabank offers - give Vince a call - 416-888-4794. And you can reach Pat and I at our new office - 905-257-3633 or by cell (Heather - 905-466-7992, Pat - 905-334-4935).