The Right Time of Year to Sell

Many people who wish to sell their home have to face the question of when is the right time of the year to do so. The truth is that there is no clear answer to this question because the answer depends on too many factors and all of them are of a subjective nature. People who are looking to buy a home do so based on many factors. Are they being relocated due to a job transfer? Have they been waiting for their home to sell? The only clear trend is that during spring and summer the number of homes sold is higher.

There are, however, other factors to consider. Do you want to sell in a busy market or a slow market? A busy market means there will be a lot more competition. If you feel that your home may not position well to stand heavy competition then it would be better to wait till the market slows down a bit. If, on the other hand, you position your home so that it is competitive in the market then time of year is less of a consideration.
Learn how your property value is calculated

While seasonal trends are important it is not the most important thing. The most compelling factor in selling a home are your own needs. There has to be a reason why you are selling your home and there is probably a deadline by which you have to have done so. Focus on those rather than on the time of the year. Also pay attention to current market conditions. You may not be able to wait for early spring for the market to get busy, so do not damage your position by waiting for months.

Is your home ready? See these selling tips

Apart from current market conditions you should also understand where the market is going. This involves a bit of research to figure out future trends from past ones. Though you cannot accurately predict the future of the market you can get a reasonably close picture. Give me a call and I can help you make a well-informed decision. If the market is beginning to slow down and turn into a buyer’s market then obviously you are better off the sooner you sell your home. Waiting in a slowing market will only lower the market value of your home. If your home is in an area of rising property values, price your home to reflect the direction of the market. Again, I can give you advice and guidance.

Also, if you’re considering to sell your home, but don’t think you can buy another one until your present home is sold, there can be a solution. Sometimes a bridge loan can be the answer to buying another home while you’re selling the present one.
Here’s a Quick Guide to Bridge Loans.

There are many factors to consider when selling your home. The time of year is less important than making sure your home is priced correctly and marketed properly. Remember that you only need one buyer!

What is IRD?

What is IRD and how can I reduce this??

 

What Does Interest Rate Differential – IRD Mean?
A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on the current market exchange rate futures contracts.

 

 

Investopedia explains Interest Rate Differential – IRD
The IRD is a key component of the carry trade. For example, say an investor borrows US$1,000 and converts the funds into British pounds, allowing the investor to purchase a British bond. If the purchased bond yields 7% while the equivalent U.S. bond yields 3%, then the IRD equals 4% (7-3%). The IRD is the amount the investor can expect to profit using a carry trade. This profit is ensured only if the exchange rate between dollars and pounds remains constant.

 

WHAT DOES THIS MEAN FOR ME AND MY MORTGAGE?

This usually means the difference between the interest rate on your mortgage contract compared to the rate at which the lending institution can re-lend the money.

For example:

 

-If your mortgage has a balance of $125,000 at 9.25%,

you have 2 years left to go and the current 2 year mortgage rate is 6.25%.

 

-Then the lending institution will probably charge you -

$125,000 X 24 months X 3% (9.25 – 6.25) = $7,266.21

 

However, just to further confuse the issue, the penalty above has not been present valued. This is when a lender charges a lower penalty because you are paying all of the ‘extra’ interest (in the example 3%) now, not over the remaining term. Some lenders present value, other lenders do not.

Save Thousands off of your – IRD Discharge – IRD Penalty – IRD Settlement

Save Thousands off of your – IRD Discharge – IRD Penalty - IRD Settlement Ird discharge Fee Reduction, save on your IRD

 

What the banks don’t want you to know…..

Hidden Money!

 

• The majority of the B lenders that I have come across do not permit this option and perhaps it’s a time for a change, might I suggest TD CanadaTrust

 

 

• - Most major lending institutions allow a yearly pre-payment allowance on fixed/closed term mortgages. BMO allows up to 8% of the mortgage to be repaid, RBC allows 10% to be repaid and TD CanadaTrust allows 15% per year to be paid down.
• - Verify from your lender that this is on the ORIGINAL MORTGAGE AMOUNT. If you don’t and you have been aggressively paying down your mortgage using some of my other tips you will be burning those extra payments in seconds. For example;

 

Original mortgage amount               = $125,000 Current mortgage after two years    = $ 115,000 15% pay down on current balance   = $  17,250 15% pay down on original balance = $  18,750

 

 

                                            

Sample IRD Penalty Reduction and I mean sample/example/for discussion only/subject to change so please no fan mail

 

Original mortgage amount = $125,000Current mortgage amount = $115,0005 year fixed term 5.94%    - 3 ½ years remain-   IRD Before TDDave               $4, 687   IRD After    TDDave             $3,450

 

 

It is free, quick and painless. You must have access to the capital to pay down the amount, even using a LOC for the few days will cost you a fraction of the money you will save.

 

For other tips and tricks check out my website!

HSBC Offering 5 year Closed at 3.99%

HSBC has through select brokers offered a segment shattering 3.99% on a five year fixed product that has (as expected) a limited time offer. This is quite a drastic rate and most lenders and brokers including INVIS’s own ‘best rate’ site have left this off the charts as it is not offered to every broker. Has anybody been into the branch to get this rate? Last limited time offer that HSBC put on the 5 year term it was not avalible to the branch.

Having clients go outside for your best rates seams like a poor business model to me, I feel very lucky that TD allow us to offer the most competitive rates in the marketplace without all the strings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With current market conditions, I have been seeing a steady flow of clients that have to pay IRD penalties after they locked into rates only a year or so ago… take a VIRM rate; even if it is a closed VIRM you can fix your mortgage at current discounted rates at any time.

Get a Total Cost Analysis of your current mortgage and see if changing refinancing is a smart option send me an email at david.hudson@td.com

Total Cost Analysis

Total Cost Analysis Report *Sample*

“This Weeks Report” – Budget changes will make home ownership and renovations more attractive

Patrick Weeks of RE/MAX Select Properties recently sent out a fantastic article about the great opportunities in the current market. Patrick Weeks is a top producing medallion club member and the recognized expert in Vancouver’s character homes. Mr. Weeks also has the distinction of setting price records in multiple areas of Greater Vancouver. Patrick Weeks can be reached at his website at www.patrickweeks.ca or by email at Patrick@partickweeks.ca

 

 

“federal government is proposing changes in its 2009 budget that will make home ownership more attractive financially for first-time home buyers, and encourage those who already own a home to make renovations over the next 12 months.

“Clearly this budget has some very special incentives for homeowners,” says Jamie Golombek, managing director of tax and estate planning with CIBC Private Wealth Management in Toronto, “whether existing homeowners who want to renovate, or non-home owners who are considering entering the home market for the very first time.”

These incentives include an increase of $5,000 in the home buyers’ plan (HBP) limit, a $5,000 non-refundable tax credit for first-time home buyers toward the closing costs of an eligible home, and a 15% tax credit on up to $9,000 eligible home renovations made by the end of January next year.

In making these changes, particularly the tax-credit incentive for existing homeowners to make renovations, Ottawa is attempting to provide immediate stimulus to a stumbling economy by encouraging Canadians to open their wallets to buy or upgrade a home.

“The government is trying to get people spending to boost the economy,” Golombek says, “encouraging individuals to spend their money now.”

The Home Renovation Tax Credit (HRTC) will provide a 15% income tax credit on eligible home renovation expenditures for work performed, or goods bought, after Jan. 27, 2009, but before Feb. 1, 2010. The credit can be claimed for the 2009 tax year on eligible renovation expenditures more than $1,000 but not more than $10,000. Eligible renovations include expenditures such as renovating a bathroom or kitchen, installing new carpet or replacing a furnace. Ineligible expenditures would include the purchase of new furniture, carpet cleaning or regular maintenance of a functioning appliance.

A married or common-law couple can claim a credit of up to the maximum allowable amount of $9,000 between them. Eligible dwellings for the HRTC can be any home used for personal purposes, although it doesn’t have to be the primary residence. Renovations can be done on more than one home, but the total amount a couple can claim remains $9,000. If two or more Canadians who are not married or common-law jointly own a home, they each can claim up to $9,000 on eligible renovations expenditures.

For Canadians looking to buy a new home, the government proposes increasing the HBP withdrawal limit to $25,000 from $20,000. The existing rules governing the HBP remain the same. The program allows an individual to withdraw money from his or her RRSP without having to include that money in taxable income, for the purpose of buying a first home. The money then has to be repaid over a 15-year period starting the year after the year of withdrawal. If the funds are not repaid, they must be included in income.

The government is also proposing the First-Time Home Buyers’ Tax Credit to help first-time home buyers with “closing” costs associated with buying a home, including legal fees, disbursements and land-transfer taxes. The $5,000 non-refundable income tax credit amount will apply to a qualifying home bought after Jan. 27, 2009. The credit will provide up to $750 in tax relief starting in 2009.”

 

As of yesterday March 4th 2009 the Vancouver Sun reported that home sales for the Greater Vancouver Area were up 94% over January. With rates at unprecidented levels and the strong Federal support – now is the time!

 

 

TD HELOC Rates Fall – TD Prime at 2.5%

Effective March 4, 2009, TD Prime rate has changed as follows:

Term	Rate		Change
6 month convertible	5.20		N/A
1-year open	7.45		N/A
1-year closed	5.00		N/A
2-year closed	5.75		N/A
3-year closed	5.75		N/A
4-year closed	5.69		N/A
5-year closed	5.79		N/A
6-year closed	6.40		N/A
7-year closed	7.00		N/A
10-year closed	7.35		N/A
1-year closed Special	4.00		N/A
4-year closed Special	4.39		N/A
5- year closed Special	4.49		N/A
Variable Interest Rate Mortgages	TD Mortgage Prime	Variance	Rate
Closed VIRM: Rate is TD Mortgage Prime + 0.80%	3.00	+0.80	3.80
Open VIRM: Rate is TD Mortgage Prime + 1.00%	3.00	+1.00	4.00
Home Equity Line of Credit	TD Prime	Variance	Rate
Float: Rate is TD Prime + 1.50%	2.50	+1.50	4.00