CREA & CMHC are terrific resources for background details
By
Mark Schadenberg
The
mandate of the Canadian Real Estate Association (CREA) is to act as a national
governing body for Realtors, but their role is much larger.
In
our province, we also have the Real Estate Council of Ontario (RECO) and the
Ontario Real Estate Association (OREA), which create educational projects and
licensing requirements for Realtors, but also monitor consumer protection as both
a disciplinary group and watchdog for such issues as false advertising and
fraud.
The
Canadian Mortgage & Housing Corporation (CMHC) is a federal government
agency created to assist Canadian home buyers by managing the insurance
policies on high-ratio mortgages, but also by publishing booklets on hints and
tips for the home-buying consumers. If you’re thinking about buying a house
there is an overwhelming wealth of information to study from qualifying for a
mortgage and knowing the importance of a good credit record, but also a comprehensive
checklist of items to look for when visiting a home with a Realtor.
CMHC
from coast-to-coast is also integral in monitoring housing starts (new
construction) in all facets from single-family homes to 50-storey complexes.
CMHC also tracks vacancy rates for apartments as that market is also hinged on
supply-and-demand principles.
You
can click on my latest ‘commentary’ on CMHC as it also protects the lending
institutions to a large degree.
ROAD
MAP
The
CREA booklet is entitled Home Buyers’ Road Map and is a condensed 12 pages of
great info as it answers questions about financing, including an explanation on
what a GDS is. Gross Debt Service ratio is a calculation which combines your
family’s income and creates a percentage by also factoring in monthly
commitments to a mortgage, property taxes, credit card burden, monthly payments
for car loans and other loans (student loan). If your bank (lending institution)
determines you may spend $2,500 per month as your gross debt number that most
certainly includes your mortgage payments, but also paying down your credit line.
With attractive interest rates currently, your bank may want you to reduce the
ceiling level on your credit line as well.
The
Road Map brochure also discusses the process of signing an offer, conditions
included in an offer such as inspections, an overview of closing costs, and
CMHC fees for high-ratio mortgages when you have less than 20% as a down
payment.
Important
also is the Road Map background on available government resources for programs
such as a home buyers’ tax credit, along with registered home buyer’s savings
plans, and benefits available when you buy a green home or create your home
into an environmentally-friendly residence.
The
differences between freehold and condominiums are explained also.
What
is a variable mortgage? What is a conventional mortgage?
Do
Realtors have to report possibly suspicious transactions?
What
is title insurance? Do you always require a lawyer to close a deal? What is an
adjustment on property taxes? Does a home buyer have to pay commission directly
to their Realtor? Can you cancel an offer which has already been accepted by
the seller?
There
certainly are a lot of questions to be answered, so be sure to contact (me) an
experienced full-time Realtor today. If you’re reading this and you’re not in
Oxford County or London, contact me for a name of a Realtor in your area.
A
lot of this home purchasing information can most certainly be found online, but
if you would like a copy of the CREA Home Buyers’ Road Map, contact me today,
and after discussing your plans and your scenario we will begin the house hunting
process.
Buying
a house is most certainly a process and that’s why – for 18 years now – I have
used the alliteration sell line of: Discussion . . . Direction . . . Determination
. . . Destination
LINKS:
www.crea.ca
www.crea.ca
CMHC
Blog from January:
All posts on this site are presented by:
Mark Schadenberg, Sales
Representative
Senior Real Estate Specialist
(SRES designation)
Royal LePage Triland Realty
Independently Owned & Operated, Brokerage
757 Dundas St, Woodstock
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland
Discussion . . . Direction . . . Determination . . .
Destination
No comments:
Post a Comment