What is a HELOC?

I’m Nathalie Ng. I am the Money Chick- A mortgage agent who is licensed to give you unbiased advice on your mortgage. 

Nathalie, I hear so much about HELOC’s what are they?



Home Equity Line of Credit is a smart and flexible financing solution for home owners who own an existing property. It is an integrated financing solution where the home owners borrow in a convenient way & unlock the equity they have built up in their home. They can use that capital however they wish.

What are the reasons in general people would get a HELOC?

There are many reasons for getting a HELOC. Whether it’s paying down high interest rate debts, undertaking home renovations, or simply handling day-to-day expenses, many people seem to be feeling the financial squeeze. But few realize there’s something close at hand that can help them manage all of their credit 
needs.

Can you give me a practical example when it is used?

HELOC’s are usually used to pay off:  High Interest Credit Card debts, car & personal loans & unsecured lines of credit. Because the existing credit cards debts are at very high interest rate ranging from 19 to 30%, a HELOC is much more viable since the rate on a HELOC product ranges from (Prime rate +0.5) to (Prime +1). So it can be as low as 3.5 or 4% roughly. This represents significant savings in interest.

Another key benefit of the HELOC is that it allows you to take advantage of interest rates that are lower than most other debt products, namely, unsecured credit lines, some car loans etc…. That could mean savings of hundreds of dollars or more each every year. 

So it seems there are potential savings when using HELOC to pay debts..  Can you give me another example?

Some people use it to do home renovations in their basements. These can cost $20,000 and up. For example- If someone is renovating their kitchen and/or basement, and the cost is let’s say $30,000. Instead of paying cash or using credit cards of 19%, the homeowner you can do a HELOC for lets say 4% and the minimum monthly payment is only $99! That is pretty good.

What if people already have a mortgage. Can they still get a HELOC?

Very often, people refinance their mortgage since their mortgage of 3 years ago, is more expensive than mortgage rates now. So it is in their best interest to refinance now. So I encourage them to take the extra 
equity out and use it for personal use. All this can be accessed through a single, one-time application. 
In the case where they don’t need to refinance, they can just obtain a HELOC as a 2nd mortgage. It is also
good to remember that a HELOC is like an open mortgage- so there are no fees or charges to pay that Line of credit in full. 

Can anyone apply for a HELOC?

Yes, anyone who is a home owner can apply. However, to be eligible, they need to have a Triple AAA client, good credit and a stable job. And those who are approved, they can only borrow up to 65% with a HELOC. New rules effective July 9th, 2012.  One word of caution I would like to add though: Is that a HELOC is not to be used to satisfy shopping indulgences such as mall shopping, or big screen TV. A person who is getting a Line of Credit to buy such household items should think twice about that. 

That is great information, thank you Nathalie. How can we get hold of you?
Thank you, I can be reached at 416-629-1818

David Pylyp on Google+

Landlords refused use of Credit Scores by OHRC

Are the banks using Credit scores and payment history to decide your credit worthiness?  The Beacon score decides the interest rate and the risk the lender is willing to take.

Landlord or Investors not allowed to ask credit details?    UMMM  Sorry.  That is just plain wrong.  http://www.ohrc.on.ca/en/book/export/html/4826

Local Tribunals and Commissions start off being well meaning but seriously have exceeded their mandate.

Is it reasonable for the OHRC to impede the [investors] Landlords lawful right to select a Tenant?

Add your comments..

David Pylyp on Google+

How 2 Access your Equity If you Divorce

How You can Access more equity when divorcing!


Hi, I’m Nathalie Ng. I'm the Money Chick- A mortgage agent who is licensed 2 give unbiased advice on your mortgage. 


Can you help clients who are single, separated, single parents  & divorced?


Yes I do and it is a special niche as I deal with lenders who are in this market segment.





What can clients do when they are divorcing? I know of many women who are looking to buy their own property now.  Can they start all over again & buy another property?


Definitely... With the increasing # of divorces, many of them want 2live separately. However, due to the economic circumstances, some stay together in order to keep the house Others, rent after divorce. Both of which are not good as in the 1st case, they are unhappy living together and the 2nd, it is financially not advisable to rent.


In the traditional way,  when a couple is divorcing, their lawyer is splitting all their assets. There could be times when the couple decides to sell the house and live separately. So what happens then?


What happens is each party ends up with a smaller equity thus, resulting from not being able to buy another property. As you may also know, utilizing a mortgage to Refinance & free up equity can definitely be a great tool when paying out joint matrimonial liabilities, as well as providing a cash settlement. Recent changes in mortgage financing however have now capped accessing home equity to 85% of the property’s value. But I have good news! There are cases where I have been able to assist divorcing couples & their lawyers in negotiating separation agreements. Essentially, the clients are allowed to free up to 95% of the equity in a property specifically for marital splits. That is a huge difference from 85% which is the norm.


So let`s say, for a house valued at $400,000, how much equity they can get?


With traditional lenders, they can only have access to 85%, which = $340,000 in this case. This could be used to pay off one spouse, debts & settlement.  Now compare this vs accessing 95% of the value of the house.


For the same house of $400,000, now they can access $380,000 of equity. This is an extra $40,000. That $40,000 can itself contribute towards a bigger down payment towards a new house. All this is at very good mortgage rates. Divorcees and single parents should really think of owning again rather than renting.


That is the smarter way…Thank you Nathalie. How can we get hold of you?
Nathalie can be reached at 416-629-1818

David Pylyp on Google+

Top 5 Home Inspection Tips

Home Inspection Mistakes that are often overlooked and How to Avoid them.

I'm with Gary Bostock from Pillar to Post HOME Inspections.

What are the 5 most prevelant defects in a home inspection?


This is a classic backfill settlement issue. The soil starts to sink into the home as it gets older. And we also have drainage coming down and going into the window well. Its key that we have to have good grading away from the house if you want a dry basement.

This is a typical foundation crack. You will see several around the house typically. Its not usually a major issue, Using an epoxy injection will solve the issue and most times a lifetime guarantee from the basement contractors.  If you want a dry basement we should be sealing those cracks.

Number 3 is a Black substance or mold, in the attic usually from poor ventilation. Again it can be resolved; open up the vents,

I always thought that the mold in the attic was the lack of ventilation from the bathrooms...

Bathrooms venting into the attic can also give you the same issue with the mold on the sheeting.

Just to show you typical life expectancy of shingles. These ones have exceeded their life expectancy. They haven't failed yet but they will so replacement will be required.

So many people overlook the simple caulking in the bathroom.

The Bathroom Shot. Its an area that commonly gets missed by people. If you want a dry surrounding you have to have good caulking, you have to have a good seals. If not you are going to have additional damages and expenses in the bathroom.

Where can people reach you Gary?

People can reach me at 905 568 8202 or go to our website pillartopost-mississauga.com

David Pylyp on Google+

Are you willing to pay more because of staging?

Photo Credit LastDetail.ca

In Toronto's competitive real estate market agents are recommending staging to get Buyers to pay the highest dollar for a property.  They stage and craft every detail, with a single goal.  Hold offers to create a frenzy. Possibly underprice to garner additional attention. Why?  To engage you emotionally with house.


"See! This is how it could be if you lived here."


So on the average sale of $650,000  in competition you might add on $50 - $75,000.


That is a lot of lipstick and paint that you can buy later.


Rather than mortgaging furniture and pillows that were rented;

• Lets look for a property that has been on the market a little longer.
• Suffers from Divorce or Financial Stress
• Visible deferred Maintenance Issues
• Mom or Dad has been moved out and it needs a facelift.
• Needs a bathroom or Kitchen remodel.
• You will be painting anyways
• You will find neglected and masked repairs.
• You will be making renovations.

Lets put your money to better use.  Buying you, your Dream Home within your budget and where you can have the mortgage paid off sooner.


That's what its really about..  Not conspiring to cost your more.


Ready to get started?  Call me...  David Pylyp on Google+

Why you need to come to my office

Is it better to meet at Horton's or Starbucks for a coffee? 


It is informal; close to your location of choice. An informal, casual and non threatening meeting place.


In this digital day and age, Forms and PDF's we can read are on my iPAD, or on my laptops, Digital Signatures and rocket sticks for instant online access. Will I register you into the Buyers Registration 


System with your Home Selection Criteria?


We will discussing your financial capacity, employment and urgency for being located into the new property. Your credit score, down payment sources and when funds will be available with the offer.


I will need to print for you a sample of available properties for sale that meet your availability and timing. This is then packaged for you into a Buyers Agency folder with; 

• Buyers Agency Acknowledgement
• Buyers Agency Agreement
• Buyers Agreement PLAIN TEXT 
• Buyers Registration
• Cash flow and Expense Sheet 
• Toronto and Ontario Land Transfer Tax and Rebates
• A logical Workflow process

Or we could meet at my Office.


Yes, I keep an office because we still need the PRIVACY.


We need a location where you can look at an offer, read the information, digest the content and context, ponder and consider the negotiation at hand and formulate a decision, WITHOUT ambient noise and over your shoulder Looky Lou's....


Yes even in this day and age with the work from home concept; I still like my office.    Where would you like to meet?


Shopping this summer?  Lets get started...

+David Pylyp

Condo Reform - Extra Cost or Actual Benefit

Toronto's Changing Skyline

The Ontario Government has taken heed to a private members bill to reform the Condominium Act (1998) given that it is somewhat dated and creates a process that does not give owners the right to grieve or challenge decisions made by a Board of Directors.

Condominium Act Review and Public Consultation

 BARBARA HOLMES Heenan Blaikie

The Ontario government recently announced that it would be undertaking a review of the Condominium Act and public consultation with condominium community stakeholders, including owners, residents, developers and property managers. 

A number of issues of concern were identified:

• Consumer protection for condominium buyers
• Condominium finances and reserve fund management
• Condominium board governance
• Accreditation of condominium managers
• Dispute resolution

Since the Condominium Act, 1998 was enacted in 2001, there have only been minor changes to the legislation. In the same time period the number of condominiums being constructed has grown tremendously, with the GTA being the hot-bed of condo development in North America. 

The release of this press announcement seems to indicate that through the efforts of ACMO and CCI, the government is finally proceeding with a serious review of the legislative brief prepared by ACMO and CCI’s legislative committee.  The process of preparing the legislative brief involved representatives from the condominium industry coming together with recommended changes to specific sections of the Condominium Act.  A recent private member’s bill (which has been the focus of a lot of media attention)  proposed some amendments to the Condominium Act. While it was recognized that changes to the current legislation are needed, there were concerns in the condominium community that the private member’s bill was very limited in scope and introduced without consultation and input from all major stakeholders in the condominium industry. With the government’s announcement we expect that the private member’s bill will not be moving forward.
 

The Legislation if enacted will have addition reach for Condominium Owners for dispute resolution and mediation.  Unfortunately this may mean that Condo boards may be forced into lengthy legal proceedings only to hear a grievance that is one sided in favour of the applicant and not in the general interest of all condominium owners as a whole.


There are many provisions within the Condo Act and the Declarations that need clarification and testing on a building by building basis.  These now include interpretation of permitted vehicles, Work Place and Safety Issue as well as Harassment Provisions under Bill 160. The condo building is an employer and has staff on site.


Condo Boards are  not for profit corporations. They have audited Financial Statements and most (larger) buildings have on site experienced Management Companies. All Condo Boards retain legal counsel as a course of running their buildings. As an aside about Reserve Fund Studies and Is there enough money in the fund? Do we need another layer of government to oversee Condo Boards?

License Toronto Landlords

Toronto has not yet joined other municipalities to license Landlords but that may be short lived as the City looks for new sources of Revenue. The average tax appears to be at $825.00 per unit.

Condo Units in a Building are exempt.

Compulsory licensing for small landlords is rapidly spreading throughout Ontario, having come into effect most recently in Waterloo on April 1 and North Bay on May 1. Other Ontario cities which have already implemented a licensing regime are Guelph, London, Mississauga and Oshawa.
The idea appears to be contagious, and many other cities are looking at the concept, including Hamilton and Kitchener.
Waterloo’s licensing regime is typical. Licensed rental properties in homes or townhouses can have no more than four bedrooms, but units in apartment buildings and condominiums are strangely exempt.
Landlords are required to pay application and annual fees of as much as $825 to rent bedrooms in houses and townhomes.
Regulated units are theoretically subject to higher standards for health and safety, and landlords are subject to a criminal records check. The new bylaws set maximum occupancy limits (apparently regulating how many people can sleep in one bedroom), and minimum distances separating one licensed building from a neighbouring one.
Previously required fire inspections have been eliminated, and landlords now have to self-certify compliance with six different bylaws, including, strangely, fence bylaws, as well as building, fire, electrical and health codes.
The ability of Ontario municipalities to implement landlord licensing came into force in 2007 with changes to the province’s Municipal Act, which allowed municipalities to regulate businesses and business transactions.
Many observers — including this one — are concerned that the new regulatory scheme is either a municipal money grab, or a crude attempt to regulate and limit housing for students and large families. Both groups are often classified as low income. In Waterloo, for example, two tenant families with three children each cannot live in houses within 150 metres of each other.
A North Bay city statement about its new bylaw says that the purpose of regulation includes ensuring that rental properties “do not create a nuisance to the surrounding neighbourhoods, and . . . protect the residential density, amenity, character and stability of the residential areas.”
Similar arguments were used to justify restrictive property covenants based on race and religion prior to the 1950s. In a horrendous 1949 decision of the Ontario Court of Appeal, the judges wrote that a restriction on title to land preventing purchase by those of “Jewish, Negro or coloured” race or blood was just to assure that the residents were “of a class who will get along together.”
It seems that in Waterloo, North Bay and elsewhere, today’s students and large families are being treated like yesterday’s minorities.
In fact, the Ontario Human Rights Commission (OHRC) is currently investigating whether rental housing licensing bylaws in North Bay and Waterloo create discriminatory barriers to rental housing.
Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone             416-364-9366       or fax 416-364-3818.
Visit the Toronto Star column archives at http://www.aaron.ca/columns for articles on this and other topics or his main webpage at www.aaron.ca.

Are you interested in acquiring tenants for a unit in Toronto?    Give me a call at             647 218 2414      

+David Pylyp

Toronto Sales Update and Forecast

We are rapidly moving to the half year for Toronto Real Estate, and I'd like to take a broader view of whats happening in our City. In downtown Toronto; the commercial sector, The Bank of Nova Scotia Tower sold for a record $ 1.27 Billion. This is the highest value for a Canadian office building and it was sold to Canadian Investors! 





That single sale is a statement about continued confidance about real estate in Canada and the bouyancy of the Canadian Market. The Value of High Rise office buildings and condominiums has been rizing equally because of the low interest rates and strength in the economy. We are seeing increased incidences of multiple offers across all product ranges. In the Toronto West and Etobicoke Region its not uncommon or rare to see a million dollar home in a multiple offer situation.


Last months sales activity was near 11,000 units, That's actually up 11% over last year, Our year over year increase in prices was an average of 5.6%. Loan Approvals are the lifeblood of real estate, From CMHC information that I have, Half of the loans in process, Are for renovation and improvement. We are repairing our houses to make sure we can live in them longer. 


With Condo Sales and Construction, it seems that there is actually a crane everywhere on Toronto's skyline, But they are also moving themselves a little further into the 905, down to Long Branch, off of Brown's Line, into Port Credit and into Oakville. 


Is there a possibility of a Price Adjustment? I can see that... 


Possibly for 2014, When the numbers of absorption cannot handle the number of units available for occupancy, Investors will be looking for tenants, and squeezed to take lower prices, both for rent and for purchase if they decide to sell the units. Detached houses on the other hand see people moving further, for house affordability, The Toronto Land Transfer Tax also plays a part of that purchase decision. 


There are great Mortgage Packages available this summer to move up buyers. If your mortgage is renewing give us a call, we'll see if we can get a better rate for you...  


The Banks won't phone and say   "Hey, we have a better price on this product!" 


For those people who are buying this summer.. There will be an increase in inventory during the summertime, as fewer shoppers are competing for product. This gives you chance to pick through to see whats available and hopefully get a better selection. Give me a call at 647 218 2414 to get started on your home purchase adventure.

Google Me Toronto

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How are you engaging with your viewers?

Real Estate is about information, the content of that information requires context.   When you have a perspective, then the details can be sifted and sorted into valid or not.   The character of the person advising you has value.  They are neighbourhood specialists. Their experience is vital to your quest.

No one cares about what I did last year; YOU care about what I can do for you right now.


Call Me

Have you seen my signs around Toronto west?

+David Pylyp