Posted on: 07-09-04 14:44:43
Quote:
Orginally posted by Pramod Chopra
I fully agree with Amit. Inflating house price in collusion with the seller is illegal and can have bad consequences for all parties concerned and no real professional would indulge in that.
Also, We can not blame all professionals in the same field if we have had a bad experience with one person in the same field.
Here in Canada, all the realtors and mortgage brokers and other professionals work under the law and are bound by the 'ethics code' of their own industry and are liable to be sued or lose their license for any wrong doing.
BTW, the lawyers expense for any real estate deal are to be paid directly to the lawyer and not to a realtor or mortgage broker and one should confirm from the lawyer about their service charges and the services they are going to provide for any real estate deal.
Of course, every credit enquiry has some affect on your credit rating (both negative and positive) but if you ask for your 'free credit report' from the Equifax, then it does not affect your credit at all but you do not get your 'credit score' with free report as you have to pay for getting a full report with score.
Dear sir,
How can i get free credit report from http://www.equifax.ca." rel="nofollow">LINK On every page they mensioned CAD charges for credit report.
Please let me know the step by step on http://www.equifax.ca" rel="nofollow">LINK for free credite report.
Thanks
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Kap
I personally think that saving 25% downpayment will take time and meanwhile one winds up paying the mortgage of the landlord. Worse by the time you have the downpayment, prices will more than likely go up... So its like losing both ways... Perhaps the mortgage rate may also go up... Besides, the difference between rent and mortgage is not that much IF one gets a competitive mortgage rate...
Quote:
Orginally posted by zen guy
Bottom line....save a good enough down payment....25% before doing anything. Yes...you can get a home for little down but it takes years to build equity. IF the market tanks...u are caughtholding a big debt. don't listen to a lot of real estate sales people who jsut want to make a sale....talk t a professional about your situation. With home owner ship y ou have lawyers fees, land transfer tax, lawyers expenses, insurance, ongoing maintanence...etc....
Here are some interesting links...
http://toreal.blogs.com/to/2004/04/no_down_payment.html
http://www.zero-downpayment.ca/MarketWatch/CurrentMarketTrends.html
Quote:
Orginally posted by Kap
Quote:
Orginally posted by Pramod Chopra
I fully agree with Amit. Inflating house price in collusion with the seller is illegal and can have bad consequences for all parties concerned and no real professional would indulge in that.
Also, We can not blame all professionals in the same field if we have had a bad experience with one person in the same field.
Here in Canada, all the realtors and mortgage brokers and other professionals work under the law and are bound by the 'ethics code' of their own industry and are liable to be sued or lose their license for any wrong doing.
BTW, the lawyers expense for any real estate deal are to be paid directly to the lawyer and not to a realtor or mortgage broker and one should confirm from the lawyer about their service charges and the services they are going to provide for any real estate deal.
Of course, every credit enquiry has some affect on your credit rating (both negative and positive) but if you ask for your 'free credit report' from the Equifax, then it does not affect your credit at all but you do not get your 'credit score' with free report as you have to pay for getting a full report with score.
Dear sir,
How can i get free credit report from http://www.equifax.ca." rel="nofollow">LINK On every page they mensioned CAD charges for credit report.
Please let me know the step by step on http://www.equifax.ca" rel="nofollow">LINK for free credite report.
Thanks
Hi Kap,
Please visit the website http://www.equifax.ca." rel="nofollow">LINK On the main page, if you hover the mouse on the third tab 'consumer information centre' you will see sub menus on the right. Click on your credit report. On that page you would see a number of options to order for the credit report and the 3rd one clearly says (free by mail). This is a downloadable PDF form which you have to print, complete and fax it to their Montreal fax number along with a photo copy of your driving license and one bill (could be your bell bill, utility bill or any other bill with you name and address on the same) and they will mail you detailed credit report by mail absolutely free. Mind you this credit report would not have your 'credit score' but would also not affect your credit rating. The report is self explanatory.
If you still can not find it then try this link http://www.equifax.com/EFX_Canada/consumer_information_centre/ownreport_e.html
I hope it would help.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Orginally posted by seth
I personally think that saving 25% downpayment will take time and meanwhile one winds up paying the mortgage of the landlord. Worse by the time you have the downpayment, prices will more than likely go up... So its like losing both ways... Perhaps the mortgage rate may also go up... Besides, the difference between rent and mortgage is not that much IF one gets a competitive mortgage rate...
Quote:
Hi Seth,
You are right. It is really difficult for a new immigrant or for that matter for most of us to save 25% down payment for buying the house. And for that reason there are low down payment or zero down payment options. The difference between both is if you put upto 5% down payment, you qualify for the best discounted rates (subject to OAC) but with zero down payment even if you have best of the score, you would get the posted rates. However, there could be some other schemes in which you can qualify for the best rates (subject to certain conditions) and you should contact a qualified professional for the same.
If you need any advice, you can email me and I would love to guide you.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
some good discussion here. i agree that collusion with sellers by real estate agents is illegal HOWEVER the fact of the matter is that most real estate agents end up working on behalf of the seller even if they represent the purchaser. After all it is always the sellers that pays commissions, correct? How often have we heard that r.e. agents get the purchaser to raise their stakes a little higher? It happens a lot. And qwuite often the conversation would go soemthing like this: Wel it is only $20,000 more than your budget which really only works out to about an exta $120 onyour mortgage or about $4-5 per day. But this is your dream house , right?"
Happens all the time and people think tha ther e is no diff bet renting and owning interms of cost. Really???? there are ongoing maintenance and tax costs that you do not have in rent. That's where the diff is.
I am not saying home ownership is bad...far from it....it is a good investment and those that have timed it right have made money. But you have to be astutue yourself....the r.e. agent is not going to help you there. They will tell you that they work with you for life etc...but the more you buy and sell....guess who benefits? And you just incur costs that by an large cannot be recovered.
Own by all means....but save as much as you can for a down pay. I agree with Cheryl that if you have 10% down and a good stable job and can pay the legal costs and have 6 months worth of mortgage payments saved...go for it. But plan on staying a while. If you try to time the market...you may not luck out.
Example...if you buy a home for 350K with less than 5% down today and tke out a 25 year amortized mortgaged....you will likely pay close to 700K over the life of the mortgage and it will take close to 20+ years even with accelerated payments.....check it out. That is a lot of money. Do you really the think the prices would double? and be able to cover all of the maintenance coss and proeprty taxes you laid out over the years?
Think about the low interest rate trap and do your own research. Few if any r.e. agents will help you.
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zen
Hi All,
I partly agree with our respected fellow members who are in the profession of Real Estate. All agents may not be same. There are some real good brokers. But most of them are just interested in their own commission.
I would say, that would go for every profession. For eg. Life Insurance, Term Life is the best policy for a cust, not so good for agent, as commission is less. Universal Life gives good commission to agents and hence, most of them always allure you to go for it. Same for car sales persons, and YES bankers as well. (how can I forget, me being a banker).
But there are few honest professionals, who believe in long term relationships rather than few quick bucks. One must find such professionals in each field. And to be able to do that, don't rush into buying a home/Life Insurance/Car etc. Conduct a detailed search, do your shopping, you'll get best of all.
I also agree with zen guy that the appreciation may not be as much as cost and down payt. In my opinion, saving under RRSP for down payt is the best option, coz you can use that investment as down payt without triggering incidence of tax, and pay back over a period of 15 years. (only for first time home buyer).
Owning can not be same or cheaper as compared to renting. For eg, if one buys town house or condo worth $175,000 with a down payt of only 10%, assuming 5% fixed rate mortgage, will have monthly mortgage of approx $900 + property tax $125 (approx) + $500 for either condo maintainance or hydro + water bills etc + $150 (sinking fund for any unexpected repairs) = $1675. As against this, if one was to rent a 2 bdrm condo, in a luxurious bldg, in the same locality, you would get it for approx $1350. It's a simple math. Presently mkt is certainly over heated. I do not thik it will crash, but it will stabilse, and one can find good deal at decent price. By then if you have saved enough for down payt, you also end up paying less for CHMC insurance. (wch eventually adds up on your mortgage and you pay int on that as well !!!!!!!! what a rip off).
As all respected fellow members have suggested, consider your situation, be ready for a hufe committment before buying.
All the best
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