Although anyone can choose to break their mortgage pre-maturity, a lot of homeowners aren’t aware of the penalties that you incur by doing so. It is easy to become so focused on the rate that the terms of the mortgage, which include the expensive penalties, are overlooked.

There are a number of reasons why a homeowner may break a mortgage before the term matures.

Unless you obtained a portable mortgage, moving within the next five years will require you to break your mortgage -- and not all mortgages are portable. Quite simply, ‘porting' your mortgage means moving it with you when you sell your home and move to a new one. This is more to avoid the penalty fees of than to obtain better rates.

In the last few years there has also been a significant increase in home values and homeowners have been taking out equity from their homes for other investments. Taking out that equity in your home requires refinancing, which breaks your current mortgage contract.

Paying off debt is another reason people break their mortgage, to consolidate other debts into the mortgage to pay a lower interest rate than a credit card or line of credit and have less payments per month.

A change in your relationship or family, such as a marriage, divorce, or a new baby can cause the need to break a mortgage early to be able to sell a property — or if one partner wants to buy out the other partner’s portion of the home, which requires refinancing. Major events such as illness, losing a job, or a death can also be reasons why a person has to sell a home and end their mortgage before term.

Finding lower interest rates than when you originally got your mortgage can make it tempting to break the current terms, but ensure you work with your mortgage broker to see if it’s worthwhile with whatever penalties you may have to pay.

If you have the ability to repay the mortgage in full, prior to the term completion date, keep in mind that usually only an open mortgage agreement will allow for an early repayment without penalty fees. You’ll need to weigh the cost of the remaining interest against any penalties that you could be charge for paying the mortgage in full ahead of time.

Some of these reasons are avoidable, while other are not. Because mortgages are complicated, it is always important to have a mortgage expert that you can trust and learn all the ins and outs of your mortgage before you sign, or renew.

If you have any questions, or are looking for a highly recommended mortgage expert, please feel free to call or email me anytime.

-Darin

Other useful links:

Mortgage Penalty Comparison

5 Top Questions to Ask Your Mortgage Lender

Sourced from blog article posted by Christos Gitersos

Original post by Kelly Hudson Dominion Lending Centres - Accredited Mortgage Professional

There are many tips and tricks for preparing your home to look its best for showings and open houses. Here are a few that can really up the ‘wow’ factor for potential buyers.

1. Use your spaces wisely - If you have a spare room or a ‘storage’ area that is usually neglected, try to tidy and transform it into something such as a reading nook, an office, or something that shows potential buyers a great idea for that space.

2. Careful Lighting - Try to have warm and inviting light everywhere possible. Ensure that the currently installed lightbulbs are a bright enough watt to light up a space, and lamps can remedy the dark corners of a room. It’s good to vary your lighting sources as well, by having overhead lighting, accent lighting, and lamps or pendant lighting that an be used for reading, under-cabinets, etc.

3. Freshen Up - Having fresh flowers or plants around the house not only looks great, but it can prevent any musty odours from lingering and even brighten up some spaces. You could also change them seasonally to add colour and appeal, such as holly branches in the winter.

4. No Ongoing Projects - If you have any ongoing projects around the house, like repairs or half-finished updates, make sure they are complete before you start showings. Buyers may asked for a reduced price if they feel that there is a lot of work for them to do after purchasing the home.

5. Clean and Polished - Having professional cleaners come through the house prior to the start of showing your home is always a great idea, but it can be a DIY task as well. Wash all the windows, repaint any worn areas (indoors and out), plant inviting blooms in the garden, power wash the sidewalk and walkway, and generally try to keep the house spick and span. 

If you have children, get all their toys tidied away prior to any showings or open houses.

6. Welcome Buyers In - Whether you have a giant porch or a small doorstep, it’s good to have it tidy with a welcome mat and anything from attractive porch furniture to a potted plant beside the door. Keeping the porch light on in the evening will illuminate the area in case potential buyers want to drive by and check it out prior to a showing or open house.

On the inside, having rooms accessorized with inexpensive touches like a decorative basket and candles in the bathroom, or a bowl of fruit in the kitchen, can also make a great impression.

7. Declutter - Find a good balance between a clean and ‘lived-in’ look and try to keep spaces ‘gender-neutral’ to appeal to all manner of buyers. Even spaces like closets and drawers may be looked in, so keep a tidy space and even go as far as leaving closet doors open to invite potential buyers to take a look. Having some empty space in each closet can also give them a more spacious feel.

8. Clever Use of Paint - A room can be made to look bigger than it actually is by painting it the same colour as an adjacent room. It’s also important to use inviting, neutral colours to make the space feel open and more relaxing. Anything from a warm tan to a soft blue-green. Try to avoid going overboard with any extreme ‘personal style’ in the decor, as it may not be what buyers are looking for in their own future home.

9. Rearrange - Having furniture ‘floating’ away from walls, and moving couches and seats into conversational groupings can make the room seem larger and more open, moreso than leaving everything against a wall.

Ensuring that your house looks clean and inviting will draw in more potential buyers and likely increase the amount that people will be willing to pay you for it.

Until next time,

Darin

I am excited to announce a venture we have been planning for years now!

MorganCreeksHomes.ca is a niche site dedicated to the area of Morgan Creek in Surrey BC. This site is designed to help home owners and buyers in that neighbourhood have the best information and online experience when it comes to buying or selling a home in Morgan Creek.

We would love to know what you think of the new site, and any feedback that you may have as well.

We hope you enjoy MorganCreekHomes.ca as much as we do!

Until next time, 

Darin

2017 TAX ASSESSMENT REVIEW  

IT’S THAT TIME OF YEAR AGAIN... 

Last week you should have received your 2017 tax assessment letter from BC Assessment in the mail. Do you have questions about your most recent tax assessment? 

A lot happened in 2016 in the real estate market and it is likely your tax assessment looks quite different than what it did this time last year. Many times a tax assessment can come in too high, or too low. 

SO WHY DOES ALL THIS MATTER? 

Your tax assessment is the value of your home, calculated by the province’s assessors each July, and then that value is used as a basis for determining the amounts you pay to the city yearly in property tax. The tax payment then goes towards city services which includes paying for schools, fire departments, policing, etc. 

If you feel your tax assessment does not reflect the true value of your home, it can be disputed. Benefits of a lower assessed value of your home include lower property tax for you. Benefits of a higher assessed value can help you achieve a higher sale price if you plan to make a move this year. 

If you are curious about your homes true value or feel your tax assessment is not a true reflection of your properties value and are considering disputing it, we are here to help. In the month of January, we will be offering complimentary market analyses for our clients, as well as their friends and families who are looking to dispute their homes assessed value, or are just curious as to what their home may be worth in today’s market. We will supply you with the information you need to successfully dispute you tax assessment. 

To learn more or to request a complimentary review, email clientcare@germyn.cawith your request. 

Here are a few key items from 2017 that helped shape our market...

SIGNIFICANT EVENTS IN REAL ESTATE IN 2017

• Effects of foreign buyers tax still being felt on detached properties from 2016
• Announcement of mortgage rule changes/ stress test in October 2017
• City of Vancouver initiates vacancy tax to take effect early 2018
• NDP introduced as government
• Effects of stress test on mortgages with less than 20% down are in full effect from 2016
• 2 rate hikes by the Bank of Canada in 2017
• Vancouver legalizes and regulates Airbnb and other short term rentals
• BC Government launches downpayment matching program for first time buyers

MEDIAN YEAR OVER YEAR GAINS FROM JULY 2016 TO JULY 2017

(Source: Home Price Index July 2017- July represents month that tax assessments are taken each year)

Did you hold off purchasing a home for whatever reason?

• Saving some more money for a down payment?
• Waiting for a raise at work?
• Exiting a rental agreement?

The average detached home in the Fraser Valley (Abbotsford all the way to North Delta) in the last calendar month, year over year, went up over 14.2% from December 2016 to December 2017.

Check out the infographic below.

The biggest question potential purchasers want to ask themselves is, "Is waiting really the best option?"

If you are saving for a down payment, can you save more in a year than the property's price is raising? Likely not...

The numbers are staggering and intimidating, yet the best thing you can do is know what is possible in your current situation. Have you talked to a bank or mortgage professional about financing? Have you spoke with your Realtor regarding a purchase? If not, now may be a good time to get pointed in the right direction.

Until next time,

Darin