Title Insurance is showing up more and more. Some lenders require Title Insurance, and many sellers want to provide Title Insurance in lieu of an RPR and compliance.
 
But what is title insurance, and what does it actually do?
Title insurance is a policy of insurance with a one-time-only buyer's premium of about $250. Homeowners have title insurance coverage for as long as they own the property.
 
The major things that title insurance does are:
 
  • Protect against unknown title registrations
  • Protect against fraud
  • Provide coverage against intervening registrations that might show up in the current 8-12 week Land Titles registration time
  • Provide coverage against enforced permit issues or enforced encroachment issues
 
Title Insurance is a useful supplement, but not a substitute, for an RPR and Compliance.
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You’ve heard of “buyer’s regret”. It refers to purchasing a pricey item, like a fancy sweater or a new car, and then regretting it the next day because you think you paid too much.

Fear of buyer’s regret can actually dissuade people from making a purchase, even when the price is right and they really want the product!

In the real estate world, buyers can sometimes hesitate to make an offer on a home for the same reason. They worry about paying too much, so they take a pass on the property. That’s unfortunate because they may miss out on a great home at a good price!

How do you conquer this fear?

The first step is to get your finances in order. Determine how much your current property will likely sell for on today’s market. Also, talk to a lender or mortgage advisor to find out how much of a mortgage you can get. This will give you a fairly good idea of what you can comfortably afford.

Don’t forget to factor in monthly expenses when determining affordability. If you’re looking to move to a larger home, or one that’s in a highly desirable neighbourhood, your mortgage payments may be higher. Other expenses, like utilities, might increase too.

Remember, a new home is as much a lifestyle investment as it is a traditional financial one. You’re making an investment in your – and your family’s – happiness. That might even make it worth spending a bit more. And, once you’ve reviewed your finances and anticipated your expenses, you may discover you can do just that!

So, take all these factors into account and determine a price range within which you can comfortably shop. That will make it easier to make an offer on that perfect property with confidence, and with no fears of regret.


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It’s begun.  The message is starting to sink in.  The new mortgage rulescould eliminate 15% of Canadians from qualifying for a mortgage after January 1st, 2018.  The mad rush has started as mortgage inquiries are up significantly.


WHO WILL BE AFFECTED?

  • Anyone that has a mortgage renewal in next 12 to 20 months.
  • Anyone thinking of buying in the next 12 months.
  • Anyone that is needs or is thinking of refinancing their mortgage in the next 12 months.
  • Rental property owners.  Yes, you too.
  • Future retirees with lots of home equity (newsflash..the new rules don’t take into consideration how much equity you have in your home.. your net worth is also irrelevant… it’s all about how much income you earn and declare…)

All of these borrowers will be affected.  If you’re not getting the message, anyone with a mortgage should be getting a review done NOW.  Don’t wait until next year.  You may not qualify for a mortgage.


EXPECT HOME SALES TO SPIKE UP TEMPORARILY

We are expecting real estate sales to shoot up, temporarily, at least until January 1st.  So long as you enter into a purchase agreement prior to January 1st, you can qualify under today’s current mortgage rules.   Many potential buyers that have been sitting on the fence will jump into the market now, for fear of not being able to qualify next year.    After that, we should expect a slower real estate market based on fewer buyers being able to qualify.  (Rental properties are looking like a good investment given we have to live somewhere.) 




Those fears of not qualifying are legit as we will qualify for 15% less mortgage under these new rules.   And that’s not taking into account any future interest rate hikes.  Mortgage rates were expected to climb in 2018 based on positive economic numbers for Canada.

However, I’m not convinced the economy can continue to grow with a slower real estate market.  Fewer real estate sales means less home related spending.  Fewer appliances, furniture, landscaping, etc.  Real estate sales play a big part in overall economic spending.  It will be interesting to see where the interest rates go in 2018.


SPEAK WITH A MORTGAGE PROFESSIONAL TODAY.


I am reaching out to my clients to review their options today.  You may not be affected.  But if you are, there’s still time to take action.  Speak with an experienced Mortgage Broker.   The new rules may or may not affect you.  Best to go through a quick question and answer process to make sure.


Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

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