What is the FTHBI?

Well there’s no other way to word this, so we’ll give it to you straight; the idea of it all is to lower monthly mortgage payments without increasing the down payment. You know how they say the higher the down payment, the lower the monthly payment… not necessarily. You can thank CMHC (Canadian Mortgage & Housing Corporation) for that! The initiative is to assist those that may find it impossible to buy a home due to income and many other reasons.

Let us provide you with a bit of background information on CMHC and what they do;

CMHC is the Canadian Mortgage & Housing Corporation. They provide Mortgage Default Insurance - they’re 1 of 3 Canadian Insurance providers along with Canada Guaranty & Genworth. Mortgage Insurance. Required if your down payment is less than 20% of the purchase price of your home

This insurance protects the lender in case the borrower is unable to make payments due to uncontrolled circumstances.

**If the Purchase price of the home exceeds 1MIL, CMHC Insurance is not required.

Downpayment

Minimum 5% for homes less than $500K

Minimum 10% for homes that are $500K to $1M

ex/ Purchase Price of $400K - DP must be $20K and up (5%)

ex/ Purchase Price of $700K - DP must be $70K and up (10%)

What rates are available?

5% or 10% Shared equity mortgage with the government of Canada

5% for resale homes

5% & 10% for new builds and resale homes

How do I know if I qualify for this program?

* Have you owned property before? NO

* Has your spouse purchased a home since you got married? NO

* Does your Annual income exceed $120K? NO

If you answered No to all 3 of these questions, then you’re a step closer to finding out your eligibility.

The buyer’s intentions have a huge impact on qualifications as well whereas the property must be occupied BY the owner, it cannot be rented out.

Do I ever have to repay this?

Yes, there are 3 options;

1. 25 years from the date of closing

2. If the home is being sold

3. It can be paid in full at any time with no penalties.

Repayment doesn’t include ongoing payments or installments of any kind, nor does it accrue interest. So you can take your time!

So to sum it all up;

1. Learn & Educate yourself on the program - Ask as many questions as you need to and ensure you know where you stand

2. Determine your eligibility

3. Choose the incentive that best suits your situation

4. Repay incentive (not right away, calm down)

Here’s the thing, when you buy a car or anything for that matter, do you want to hear that an X number of things are wrong with it? And that you’ll have to replace this, that, and the other after you’ve already spent sooo much money with the initial purchase? Or would you prefer to buy something that works perfectly fine? Yep… that’s what I thought.

Same thing goes for homes on the market! Good news for Sellers as Buyers nowadays prefers to appreciate a house with upgrades over buying a home and doing it themselves. Inoperable fixtures are a big turn off to buyers so it’s important that a few things are taken care of before you list your home for sale! Understand that everything doesn’t have to be replaced as things can be costly. Here’s a few useful tips that can get you started!

First things first, Energy Efficiency. Some of you may be wondering, why does my home have to be efficient? Simply because, everyone knows that things run smoother when done efficiently, and yes that applies for your home too! Upgrading Light fixtures and replacing incandescent light bulbs to LED bulbs is a good way to start. Sealing or replacing windows can help to better insulation during the cooler months of the year. As well as upgrading the main energy user in your home... your HVAC systems. This can improve a lot as well as save the homeowner some money in the long run. Contact an energy efficiency professional for further advice!

Ever pull into someone else’s driveway and said wow. Here’s the thing, it’s not as hard as you think to give buyers that same wow! Curb appeal means a lot to buyers and the littlest things can go a long way. Like power washing the exterior to brighten things up a bit. Paint or replace the Front and Garage doors and upgrade the doorknobs while you’re at it! Add small plants and pots, do a little gardening or hire a landscaping team if you really want to go all out. Patch or resurface the Driveway. Remove clutter and debris from the front, sides and back of home. Oh, and get rid of that old mailbox!

Now let’s get inside and focus on the Interior. Although carpeted floors call for a cozier feel, the maintenance is a slight headache. You can purchase carpet cleaning kits or even hire a professional to save you the hassle. For Hardwood floors, here’s one main way to revive them; sand, stain, and seal. You can do this up to 10 times until the floors need to be replaced so contact a professional if you’re considering it. And of course, the most obvious upgrade, paint! But before you pick up the brush, ensure all holes and dents in any walls are patched up. A fresh coat throughout the home can make a huge difference; the walls, ceilings, baseboards and door frames. Aim for light/neutral colours as it can entice a roomier feel. Make the buyers feel like they’re already home!

Some people spend a lot of time in here and others not so much. We must make sure we look good, but it’s also best to say the Bathroom looks good as well! Start by upgrading the mirror, ensuring it suits the vanity. Something sweet and simple. Replacing fixtures such as taps and faucets (shower and sink) and updating the toilets to efficient ones. A simple hack like regrouting the tile and replacing the caulk around the showers, tubs, and toilets can give it that squeaky clean feel!

And finally, the heart of the home… the Kitchen. The one room that buyers look forward to seeing. Even minor upgrades can have a great impact on the value of your home. First, try to get rid of outdated appliances. There’s something about Stainless steel appliances as they’re a big hit AND they’re easier to clean. If that’s out of the question due to budget reasons, you can focus on something else like the cabinets. Firstly, there’s Refacing which means buying brand new doors & drawers and secondly, refinishing involves removing the existing doors & drawers, striping the paint, staining and putting them back. Upgrading the countertops is also an option as stone counters are quite popular.

At pyramid group we have worked with an extensive number of Renovators and Contractors in the last 10 years, so we can ensure you that we’re giving you the best of the best.

We know and have just the right contacts and ideas to get your home listed and sold for a price that will more than satisfy you. So, hire the professionals and contact Pyramid Group today to get started on listing your home!

The increase in real estate sales in Toronto this past month exceed the amount of new listings. Due to the impact in the market, it is expected to slightly affect sales in August, which is usually a slower month.

New listings decreased 9% Y-O-Y, sales increased by 24.3% and prices grew by 3.2% Y-O-Y to the average price of $806,755. Lots of competition is in the air due to the market activity. Prices are expected to continue rising in the entry-level and busier markets.

The Detached home market is the only Toronto market that is not affected by positive sales and price growth in the Central District.

Condos in Toronto top the charts in price with an increase of 7.7% Y-O-Y, then Townhomes which have increased by 5.5% and finally, Semi-detached homes grew by 5%.

Due to the Bank of Canada decreasing the qualifying mortgage rate by 0.15%, we’re in for a bit or a show. Typically in August, there are lower reports in real estate sales. But that won’t stop the dedicated buyers out there!

Contact Pyramid Group today, to get a full market analysis also a broken down plan in order to get top dollar when selling your houses or get the best price when buying a house.