If every transaction and home was squeaky clean, then we really wouldn’t need lawyers, home inspectors, Realtors and other professionals to assist and protect us through the process. There are hundreds of things that can be problems in a house or with the deal itself. Below are a few red flags that should pique your attention when buying a house.

PLEASE NOTE: These items are only red flags. They are not necessarily problems in themselves, but should trigger a little more research.

Current Owner Assumed Their Mortgage – Assumable mortgages have been an easy way for unscrupulous people to purchase homes without using a bank.

Low Down Assumable Offered – The terms of the mortgage may be horrible, or the house may be over priced.

Stained Basement Items – Water stains on any item in the basement should be questioned.

Newly Finished Basement – This is a common way to hide past problems.

Odd Smell – Could be mould, mildew or caused by water or a past drug operation.

Exterior Cracking – Any unsealed opening on the exterior can cause water entry.

Slope Toward the House – The yard should move water away and not toward the house. Continue reading »

Selling your home?  Your first move is to review your mortgage options!

If you plan on selling your home and buying a new one, your first move should be to look into your mortgage options.  You need to consider your current mortgage of course, and the mortgage that you’ll need on your new house.  If you are downsizing then there is no additional financing needed.  But if you are “trading up” and planning on having a bigger mortgage, you need to examine your options, which include:

Bringing your mortgage with you
Most mortgages today are portable, which means you can take your current interest rate and mortgage contract to your new home, subject of course to certain conditions like the amount of your mortgage. If you need a bigger mortgage, you can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need Continue reading »

The rise in consumer confidence and historically low interest rates are firing up the real estate market which could arguably be the best time for a someone to buy their first home.

One of the toughest obstacles faced by most first time homebuyers is the dreaded down payment and until just recently, there were only two options:

1. A select few lenders offering 100% financing with extremely strict qualifying guidelines. This option generally lead into a conversation as to why the client didn’t meet the lending requirements and brought them back to square one; being option two.
2. Come up with the traditional 5% down which can be extremely daunting with your average home sale in Calgary being $400,000 and a required down payment of $20,000.

This is why our good friends at National Bank of Canada came up with a product that they call the “Cashback/Flexdown”, which enables a client to purchase property with a down payment from 0-5% down. They are looking for applicants with a solid work history who are simply lacking the ability to come up with the full down payment.  Highlights of this option are:

1. Interest rates are very reasonable and decrease by the amount a client has to put down, which this is great for someone who has been saving but needs a boost.
2. This option is not as beacon score (credit) driven as other traditional alternatives.

With the growing concern that the Canadian Government might tighten up in the mortgage lending requirements, this might just be the stepping stone your client needs to fulfill their homeownership dreams.

Please feel free to contact Josh Higgelke at josh@square1mortgage.ca for more information.

This blog article is powered by CIR Realty, adding value to you and your business by bringing you innovation and experience. To find out more about us, visit www.cirrealty.ca.