Someone ought to explain the facts of life to the nation’s bankers.

They’re handing out mortgages to people without any apparent understanding that today’s home-buying couple is tomorrow’s family of three or four. A lot happens to one’s ability to afford mortgage payments when kids come along, but you’d never know it by the way lenders qualify borrowers.

More Related to this Story It’s designed to show how well you’ll be able to handle the basic monthly costs of home ownership, plus real life expenses such as cars, daycare and long-term home maintenance. Prospective home buyers should try it, and so should existing homeowners who want to see how well they’re handling their finances.

The Real Life Ratio is an expansion of a simple affordability measure I introduced last year called the Total Debt Service and Savings Ratio, or TDSS. The idea of creating something more comprehensive came to me after a Globe and Mail series on daycare was published last fall. We heard from many people about how hard it was to manage the cost of a mortgage in today’s expensive housing market, on top of daycare and other costs.

Use the Real Life Ratio and you’ll know what you’re getting into before you buy a house. You may decide you need to save a bigger down payment, buy a smaller house, live in a cheaper location or not buy at all.

Here are a few important things to know about the ratio:

1. Household take-home pay is used here: Other ratios use gross income, which is less relevant for practical financial planning.

2. This is not a budget: Only fixed costs are included here; food, clothing and other costs aren’t discretionary, but you decide how much to spend.

3. Costs for home maintenance and improvement are included: You won’t face these costs every year, but on a long-term basis they might average about 1 per cent of your home’s value annually; maybe less for brand new homes and more for older ones.

4. There’s a slot to include condo fees: Be sure to add any monthly utility costs that are not included in your condo fees.

5. Your local real estate market plays a big role: A liveable Real Life Ratio may be harder to achieve in big cities with roaring real estate markets.

Guidelines on how to interpret the ratio are provided. For optimum results, make a list of your monthly spending on food, transportation, entertainment and everything else not included in the ratio. Then, see whether your lifestyle is affordable. If your Real Life Ratio is 80, could you get by on 20 per cent of your take-home pay?

Keep in mind that your ratio will change – for the worse if you have kids in daycare and have a couple of cars, and for the better once your kids are out of daycare and you move into your prime earning years.

To ensure the Real Life Ratio reflects real life, I consulted four financial planners. Thanks to Rona Birenbaum, Barbara Garbens, Kurt Rosentreter and Renée Verret for some useful suggestions based in part on spending patterns of their own clients.

courtesy of Rob Carrick globe and mail email me for a copy of the spreadsheet calculator dbattaglia@dominionlending.ca

RRSPs are seen as mostly benefiting people saving for retirement. But they can also be put to good use by adults in their prime working years. Whereas retirees are limited to deferring taxes, younger people can use RRSPs to reduce taxes, or to facilitate buying a house or attending an institution of higher learning.

Reducing your tax now

RRSPs can lower taxes for adults in the workforce if they are planning on taking a break from work for personal reasons, such as to start a business, have a baby, travel or write a book. While in the work force, contributions are made and tax refunds claimed. When the RRSP annuitant leaves work, withdrawals are made from the RRSP at lower tax brackets—thus turning the RRSP into an income-smoothing tool for the purposes of tax reduction. This feature is also handy for the self-employed or other people with variable income.

A young couple may also save on taxes by setting up a spousal RRSP for the lower income spouse. Once in place, the higher income person can make contributions up to their contribution limit and claim the tax refund. After three years, the rules allow the lower income spouse to make withdrawals from the spousal RRSP at their tax rate—thus effectively splitting income and reducing household taxes.

Just be sure to start withdrawals at least three calendar years after contributions are made. In other words, the three-year period doesn’t start ticking away until after the end of the calendar year in which the last contribution was made. So try to make contributions by the end of the tax year, December 31.

When withdrawing money from RRSPs, tax is withheld at source—and the tax rate rises with the size of the withdrawal. Rather than take a large lump sum from one plan, it should be broken up and removed in smaller chunks over time from more than one plan (if possible). This way, the RRSP holder may be able to get more of their RRSP funds right away, rather than having to wait until the next tax-filing period to submit a rebate claim.

Buying a house

Under the Home Buyers’ Plan, a couple buying their first house are permitted to withdraw $25,000 each from their RRSPs for a downpayment, then are asked to pay it back into the plan over the next 15 years. The tax refund gives couples another $12,500 to $20,000 to put down on a home purchase, making it easier to get the house of their dreams, lower mortgage payments, or avoid paying CMHC mortgage insurance fees.

If there isn’t much money in RRSPs to begin with, many couples with contribution room find ways to scrape up the money (for example, a zero- or low-rate loan from a relative). They then pass it through the RRSP to qualify for the tax refund and make a bigger downpayment. Just remember, the contributions have to be in the RRSP for at least 90 days.

Going back to school

Under the Lifelong Learning Plan, people can similarly borrow from an RRSP to fund studies at a qualified educational institution for themselves or their spouse. However, as the plan comes with some restrictions, as well as a repayment schedule, some may find it easier to just withdraw the funds directly from their RRSP.

Conclusion

RRSP aren’t just for retirement. They can be used for other purposes prior to retirement. Indeed, these more immediate benefits may ultimately prove to be more valuable than the tax deferral obtained from saving for retirement should pressures on fiscally strapped governments result in higher tax rates and reduced retirement benefits in the years ahead.

globe and mail – Canadian business mortgage broker www.darick.ca Barrie, Ontario

The provincial land transfer tax can add an additional 1 to 2 per cent on the cost of a home purchase if you live outside of Toronto. If you buy in Toronto, the amount is almost double. The Toronto Real Estate Board has been lobbying for five years to remove this tax, claiming that it penalizes buyers in Toronto, who already face record high prices. It also reduces the number of potential sales in Toronto, and thus reduces overall economic activity. It is interesting that no other city in Ontario has introduced this tax, even though they have the power to do so. The problem is that the city needs the money that the tax brings.

First time buyers do get a break as they pay no Toronto land transfer tax when their home costs $400,000 or less. But for everyone else buying a $400,000 home in Toronto, the tax is $3,725, and rises to $15,425 if the purchase price is one million dollars, very common now in Toronto. This is in addition to the $16,475 Ontario land transfer tax that has to be paid. So the total land transfer tax in Toronto today for a 1 million dollar home is $32,000.

As the race for mayor heats up it may become an issue. Karen Stintz says she wants to reform the tax so that it is applied at a higher amount to make the tax fairer. Mayor Rob Ford would like to reduce the total tax by at least 5 per cent. David Socknacki would like to tie it in to the rate of inflation. John Tory has not yet stated his position.

Here are some ways the candidates could change things for the better: • Reduce the tax by 10 per cent;

• Raise the credit for first time home buyers, to $5,725, which would make no Toronto land transfer tax payable for a home up to a price of $500,000;

• Change the policy so that anyone buying their first home in Toronto gets the rebate, even if they owned a home elsewhere in Ontario.

• Change the policy so everyone pays no tax on the first $400,000 in Toronto, regardless whether you owned a home before;

Here are some other things to consider when it comes to the land transfer tax

First time buyer rebates

If you buy your first home outside Toronto, you pay one tax only and are entitled to a $2,000 rebate. As stated above, the second rebate in Toronto is up to $3,725. So, if you have the means and the choice, I recommend buyers buy their first home in Toronto, take the extra rebate, and then buy their next home elsewhere if they so choose. When you buy your first home outside Toronto, you will then have to pay the double tax without any rebate if you later move to Toronto.

Spouse rules

If your spouse has owned a home while married to you, you are not entitled to the first time buyer rebate, even if you never owned a home yourself. However, if your spouse sold the home before marrying you, then you are still entitled to a rebate. So, for example, if you and your spouse jointly buy a home, you would be able to claim 50 per cent of the tax rebate, which is up to $1,000 in Ontario and $1,812.50 in Toronto.

Here it gets interesting. If you take title differently, with your spouse owning 1 per cent and you owning 99 per cent of the home, then you can get 99 per cent of the rebate, which means $1,980 on the Ontario tax and $3,692.75 towards the Toronto tax.

Family transfers

If you transfer property to your spouse, for natural love and affection, no land transfer tax is payable. If a parent transfers a property to a child for no money, there is no land transfer tax payable as long as the property has no mortgages registered against it. If the property is worth $500,000 and there is a mortgage on title with $200,000 outstanding, land transfer tax will have to be paid on the sum of $200,000.

Understand the land transfer tax rules and save money.

Click here to read the article:

http://www.thestar.com/business/personal_finance/2014/02/28/ontario_land_transfer_tax_an_election_issue.html

home financing, best mortgage rates, mortgage broker barrie, first time home buyer, self employed, debt consolidation, commercial and private mortgages call Darick Battaglia www.darick.ca 705 797 8811

The federal agency that backstops Canada’s housing market will make an announcement Friday that could affect the mortgage market and home buyers.

The Canada Mortgage and Housing Corporation is tight-lipped about what, exactly, it is planning to unveil Friday. But CMHC did confirm to CBC News that an announcement is in the pipeline. A spokeswoman for the agency declined to offer any specifics, however.

MAP: House prices across Canada The news will come out at 11 a.m. ET on Friday but exactly what’s coming is anyone’s guess.

The Globe and Mail speculated Thursday that the announcement could be related to the premiums homeowners must pay to get CMHC insurance. ‘Hiking premiums would be a strong move.’— RateSupermarket.ca president Kelvin Mangaroo

Under current rules, any prospective homeowner who makes a down payment of less than 20 per cent of the purchase price has to pay for CMHC insurance for their mortgage. That premium varies from anywhere between 0.5 per cent and 2.75 per cent of the price, depending on the size of the down payment.

According to the latest data available, the average Canadian home costs $388,553. A would-be buyer of that home with only five per cent down would need to pay the maximum CMHC premium — an extra $10,685 in that example.

“Imagine somebody looking to buy a house, all of a sudden having to pay a one per cent increase to 3.75 per cent?” Kelvin Mangaroo, the president of RateSupermarket.ca told CBC News Thursday.

“I could see them wanting to do something around the fringes of the market … but hiking premiums would be a strong move,” Mangaroo said.

Homeowners pay the premium, but the beneficiary of that insurance isn’t the homeowner. Rather, it protects the lender if the homeowner defaults on the loan. Ottawa caps mortgages at 25 years

Those premiums haven’t been raised since the 1990s — a time when the typical Canadian home cost less than half what it does today — and were lowered in 2005

Because it’s backed by the federal government, CMHC controls the lion’s share of the market in Canada. But it also competes with private insurers such as Genworth Financial and Canada Guarantee. Both those companies tend to match whatever CMHC charges, because they lack the size or scale to effectively compete on price.

Any move to increase premiums would be good for CMHC and its competitors’ bottom lines, something investors seemed to pick up on Thursday: Genworth shares were up more than three per cent on the TSX Thursday, despite the company having no other news.

Insurers should theoretically be charging more to guard against default, not only because they’re being asked to cover more valuable homes, and more homes overall, but also because the rules have also been repeatedly tightened in recent years as to how much they have to keep on hand to cover losses.

On the consumer side, the federal government has acted numerous times to rein in the mortgage market in recent years by tinkering with CMHC’s rules, lowering the maximum amortization period from 40 years at one time down to 25 today.

Ottawa has also increased the minimum amount that a homeowner has on hand before being legally allowed to buy a house. Today the CMHC’s minimum down payment is five per cent, but it was briefly zero not that long ago.

Mangaroo says it’s possible that Friday’s news will be something like increasing the minimum down payment requirement again — maybe up to 10 per cent — but he thinks it will be something much less drastic.

Others agree. “I don’t see any changes to mortgage rules,” Ben Rabidoux, president of market research firm North Cove Advisors Inc. told CBC News. “You could also see some move to ‘level the playing field’ with the private mortgage insurers by forcing a risk weighting on CMHC-insured mortgages or something like that.”

As the nation’s lead advocate for quality nutrition in schools, they provide:

nutrition grants that allow programs to obtain food, equipment and staff required to meet the needs of their school community; child nutrition education resources and tools to help raise awareness and educate communities about proper nutrition; research to support the vital link between child nutrition and learning; and a strong voice for child nutrition that advocates for national meal program in Canada and quality nutrition in schools.

We know that through feeding hungry children, we also nurture strong minds and provide students with the best chance of success possible.

When a child is hungry, it’s hard to learn. A healthy breakfast provides children with the necessary fuel to get off to a bright start each morning, and nutritious meals and snacks throughout the day keeps them energized so they can stay alert and engaged in class. Studies show that well-nourished students have improved memory, problem-solving skills and creative abilities – overall, they perform better in school. Yet, in Canada we have some startling facts:

One in ten children in Canada live below the poverty line and this is only one of the many reasons children go to school hungry each day; 31% of elementary school and 62% of secondary school students do not eat a healthy breakfast daily; Childhood obesity rates, Type 2 diabetes and other health-related issues continue to rise; and still Canada remains one of the few developed countries without a national nutrition program for children.

With a challenging economy and rising food costs, child nutrition programs across the country face the daunting challenge of meeting the needs of their school community on already tight budgets.

In 2010/11 Breakfast for Learning was only able to grant 28% of the funds requested for breakfast, lunch and snack programs, meaning thousands of children went to school without a healthy meal or snack. Help Dominion Lending Centres on our quest to fill the gap and provide Breakfast for Learning all the necessary funds to run their much needed programs.

Breakfast for Learning is a strong, national voice for child nutrition programs in Canada. Together with our nationwide organization of employees, Members and Partners, child nutrition professionals, partners and supporters, and our network of over 30,000 volunteers across the country, we help provide nutritious foods in caring, community-centred programs. For more information, please visit www.breakfastforlearning.ca

In 2012 Darick Battaglia helped raise over $14,000 at a local charity event. www.darick.ca Mortgage broker in Barrie

Buying her first house and getting her first mortgage was an overwhelming experience for Roslyn Judd.

She had signed a deal to buy a new house, she had put down her deposit, and she was pre-approved for a mortgage. Now she had to sign a final deal with her bank to lend her hundreds of thousands of dollars.

“I had never applied for a mortgage before and I found that [to be]the most intimidating part of the home-buying process, so I was procrastinating,” she says. “I think it was the enormity of the money that you are asking somebody to lend you.”

Then a friend in the building where she works suggested she check out her company’s website,

So she did, and her mortgage broker was able to get her a deal with a seasoned lender whose rate was much better than what her bank had offered.

“It was the best because it was so personal,” she says. “It was like someone was holding your hand all the way through the process.”

Rona Birenbaum, a certified financial planner with Caring for Clients in Toronto, recommends all her clients seek the help of a mortgage broker when it comes time to buy a house, or refinance or renew a mortgage.

“It’s the most efficient way to get the best-priced and best-structured mortgage,” she says. “Bottom line.”

“So rather than shopping at multiple financial institutions and negotiating with each financial institution and arm wrestling them to give you the best deal, it’s one phone call and they do the rest for you.”

a mortgage broker can help you with all aspects of a mortgage, from figuring out how much you can truly afford, to determining the best mortgage product for you, to finding ways to save you money and pay off your mortgage faster.

In addition, you should expect your mortgage broker to review your mortgage a few times a year to see how you can pay it off faster, whether it’s still the right product for you, and if it’s still competitive. “It’s very rare that you’re going to get that service from a bank,” he says.

For people who are inexperienced with negotiating, who aren’t sure what the best mortgage product is for them or have a less-than-stellar credit rating, they can save time, money and hassle by using a mortgage broker, says Ms. Birenbaum.

“For the average person who would maybe not feel comfortable negotiating, who might feel as though they are not in the position to ask for a better rate, they definitely will [save]” she says. “A half per cent over a 20-year mortgage, is tens of thousands of dollars. It could be potentially huge money.”

But those interested in using a mortgage broker need to do some research, says Ms. Birenbaum.

The brokers she recommends are people with whom she has developed a professional relationship, and she knows they will do a good job because they’ve worked with her clients.

“There’s a wide range of experience, qualifications and quality in this particular industry,” she says. “So reputation and experience are extremely important.”

People ask their financial adviser to recommend a mortgage broker, or they can turn to others who recommend their broker.

Mortgage brokers are regulated provincially so you can check with your provincial regulator on the website for the Canadian Association of Accredited Mortgage Professionals. The organization also has an online directory that can help your search for a broker.

“Like every industry there are rookies, so be careful when researching your broker, get a good idea about their experience before proceeding,” he suggests.

Many brokers now do the bulk of their work online, and that’s not an issue as long as there’s enough communication with the client either via e-mail or over the phone – and their online application process is secure.

“To be honest, the majority of our clients don’t leave their living room, and I don’t blame them,” he says.

If a broker asks for a retainer of any sort or any payment made out to them personally, that should be a warning sign, Ms. Birenbaum says.

Mortgage brokers are paid their fee by the lender, not by the person who is using the mortgage broker’s service, says Mr. Johnson. “There’s no cost for the client.” Be aware though, whether you’re doing a new mortgage, a refinancing or renewal, to ask whether there are any legal or appraisal fees, he says. Legal fees for a new mortgage can be about $1,000, but sometimes a lender may cover both legal and appraisal fees; you just have to ask.

Right now, one of the big questions for those looking for a mortgage is whether to go for a fixed or variable mortgage, While historically variable mortgages have had better rates than fixed mortgages, that’s not necessarily the case right now.

“Any time the fixed and variable rates are very close I do recommend going fixed and they are close right now,” he says. Up until recently about 90 per cent of the mortgages he arranged were variable, but now more are fixed.

www.darick.ca  Mortgage broker in Barrie

Gold Medal Mortgage Rate Update:

1 year rate 2.89%

3 year rate 2.74%

5 year rate 2.99%

Variable 2.35%

100% financing 4.85% – no down payment required

OAC Self Employed, Divorce equity takeout to 95%, New to Canada, First Time Home Buyer, Debt Consolidation, Private 2nd mortgages, Line of Credits, Construction Mortgages, Commercial Mortgages and Leasing is Our specialty.

Canada’s most expensive streets Front Page Feb 14, 2014 REM magazine ici picBay Street in Toronto has the most expensive office rates in the country,

followed by Burrard Street in Vancouver and 2nd Street SW in Calgary, says a report by Jones Lang LaSalle (JLL).

“Location is everything,” says Brett Miller, president of JLL. “As the Canadian market continues to strengthen, we are seeing that companies are increasingly willing to pay higher rental rates in order to be in prestigious locations.”

The most expensive streets fall into financial, retail or government hubs that are highly prominent and competition to get space is growing, the company says.

The most expensive streets for office space in Canada (asking rents) The most expensive streets for office space in Canada (asking rents):

1. Bay Street, Toronto, $73.54 p.s.f. Bay Street topped the list for the third year running in the annual survey. The street spans through both the heart of Toronto’s financial district and Yorkville, a high-end shopping district.

:2. Burrard Street, Vancouver, $65.91 p.s.f. Burrard Street has moved up since 2012, when it took third place. With increased office asking prices of nearly $4 p.s.f., the street is a centre point of downtown.

3. 2nd Street SW, Calgary, $59.72 p.s.f. This street made the list for the first time this year, succeeding last year’s 8th Avenue SW. Located in Calgary’s financial district, it is home to some of Calgary’s tallest buildings.

4. Albert Street, Ottawa, $53.40 p.s.f. Albert Street held its fourth-place position from 2012, after dropping from second in 2011. The street is central to many government towers and facilities.

5. 101st Street NW, Edmonton, $57.25 p.s.f. 101st Street NW kept its position of fifth place. With retail and office space available, the area is appealing to a variety of tenants.

6. René-Lévesque W, Montreal, $57.04 p.s.f. René-Lévesque W. has maintained its position from 2012. Acting as a thoroughfare, the street is lined with numerous high-rise office towers.

7. Upper Water Street, Halifax, $35.83 p.s.f. Upper Water Street has maintained seventh place from 2012, after moving up from 9th place in 2011. Located on Halifax’s waterfront, it is home to large office complexes.

8. Portage Avenue, Winnipeg, $36.36 p.s.f. Portage Avenue has kept its position in eighth place since 2012. It acts as a thoroughfare, connecting east and west ends of Winnipeg.

9. Laurier Boulevard, Québec City, $31.00 p.s.f. Laurier Boulevard took the ninth place position. Known for its retail, the street also acts as a main artery in the city.

For home financing, Commercial mortgages, debt consolidation, leasing and low mortgage rates call Darick.ca best mortgage broker

Looking to Buy or Sell your Home? These websites are a must.

www.realtor.ca

Typical commission paid is 2.5% of the selling price to the listing agent and 2.5% to the buyer’s agent. It is not uncommon for these commissions to be negotiated to something much less especially in a hot real estate market where properties sell quickly.

It is a great idea to have three competing agents present their listing packages to you before you make a decision to sell your home. Each one should provide a free home market evaluation as well as detail added services they will provide that may separate them from the completion such as free home staging, open house schedule, a budget for advertising, extra paid staff to offer assistance or just simply a no frills low commission strategy.

“Anyone who has even a passing interest in the real estate market has seen or heard the term MLS®. But few consumers know exactly what MLS® is, or understand the important role it plays in the real estate industry. The MLS® system, also known as the Multiple Listing Service® is a complex information-sharing and cooperative marketing network created by REALTORS® found at Realor.ca, several decades ago to help the public buy and sell homes. While it is computer based today, it began as an exchange of paper listing information and photographs.

The Multiple Listing Service® or MLS® is a member based service, paid for by the REALTOR® members of the local real estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate, and is much more than a database of property information. It is the local real estate Board that actually administers and operates the local MLS® system. The Canadian Real Estate Association owns the trademark, and licences its use to Boards and Associations across Canada.

The MLS® service makes the real estate industry unique by encouraging a high degree of cooperation among salespeople. For example, if you’re shopping for a car and you visit a local dealer, the salesperson’s goal is to sell you a car from that car lot. They won’t provide you with information on cars available at other competing dealerships. In the real estate industry, the opposite is true. The MLS® service allows for cooperation between all REALTORS® no matter which company they work for.

If you are selling a property, listing with a REALTOR® who uses the MLS® service means your property gets maximum marketing exposure to all other members of the local Board. You’ll have REALTORS® everywhere trying to find a buyer for your property. It is the MLS® computer system that will provide other members of the real estate Board with detailed information about your property.

If you are buying a property, the MLS® system is a valuable research tool for your REALTOR®. They’ll input the criteria you want and generate a list of all properties that meet your needs. These homes might be listed by other REALTORS® from five or ten other companies – to your REALTOR®, it doesn’t matter. Their goal is to help you find the property you want. The MLS® system supplements the in-depth knowledge the REALTOR® has of the neighbourhood and current market conditions to help you make a wise buying decision.

The MLS® system provides REALTORS® with access to much more detailed information than you’ll find on a web site. MLS® information will include room-by-room measurements and specifics on the property condition, renovations, property zoning and rental rates. Through the system, REALTORS® can also access the sales history of a home in order to see how many times it has changed hands and at what prices.”

Caution: This site may not include all properties offered for sale in the City and neighbourhood you may be interested in and may not be the only place a consumer is searching for properties for sale. Here are a few other sites for consideration.

www.propertyguys.com

They offer seller packages that start at $99 upwards to including services that will list your property on the MLS realtor website.

In their own words;

“We’re not your parents’ real estate company We’re not agents or brokers. We’re something different – something much better.” Better because we can save you thousands of dollars. Better because we come to your home to show you how our program works. Better because we can take all your listing photos right when you sign up so it can go live lickety-split – if that is what you would like. Because YOU are in the driver’s seat of the sale of your home all the way to the finish line – after we share our recipe for success with you, of course! Better because – it works! With over 50,000 users already through our program and offices all across Canada, you can trust that we’ve become really good at what we do.

Our program helps sellers get their property SOLD and costs much less than using a traditional agent. Instead of commission, we charge an affordable flat fee (that’s not affected by your selling price) for a customizable marketing plan that suits your needs. You’ll get a bold round lawn sign, a detailed listing, online management tools, and lots more. And when your property sells, we collect absolutely nothing. Not a penny. Your marketing plan will include the zesty and enticing combination of local, enthusiastic and informative PropertyGuys.com professionals plus unbeatable technology and tools that has been proven to work time and time again.

Wikipedia …PropertyGuys.com Inc. is a Canadian private sale real estate, or FSBO, marketing company based in Moncton, New Brunswick. With 123 franchise locations across Canada and more than 10,000 active listings on its site, it is the largest private home sale network in North America.[1][2][3] The firm acts as the marketing arm for people who want to handle the heavy lifting themselves, such as showing the home, fielding calls from potential buyers, negotiating price and other details

PropertyGuys.com does not collect a commission on homes sold using their services.[4] The company is negotiating agreements to enter the U.S. market

PropertyGuys.com is a member of the Canadian Franchise Association.[5] PropertyGuys.com CEO, Ken LeBlanc, sits on the Canadian Franchise Association’s Board of Directors as one of two Atlantic Region Representatives

www.comfree.com

like Propertyguys.com, comfree.com offers private sale services along with the ability to list your home on the MLS system. The services are very similar to propertyguys.com

www.zoocasa.com

If you are they type that does not like to negotiate commissions than this site may be for you as it handles the referral process and offers discounts on commission built in.

Zoocasa, an upstart real estate company owned by Rogers Communications, has launched a revamped website that aims to compete with Realtor.ca, Canada’s dominant listings site, by presenting property listings in a more user-friendly format and connecting clients with realtors from major agencies.

The website draws on the same MLS database (so far, only for Toronto) used by sites like Realtor.ca, which is run by the Canadian Real Estate Association. What distinguishes Zoocasa, says company president Carolyn Beatty, is the way it presents that data.

The site tries to make data easy to find and use by integrating information about the neighbourhood — demographics, average income, housing prices and availability — with each listing, using catchy, colourful graphics.

“We did some research on what really matters to consumers — things like size of visuals, the ability to look at a Street View of each of the listings, the way that the data is presented on the page so it’s a lot easier for people to digest it and understand it,” Beatty said. “It’s a variety of different things that we believe all, ultimately, add up to an experience that is fundamentally designed with the consumer in mind.” Consumer experience is focus of site

Zoocasa has branded itself as a consumer-oriented site that, because it doesn’t have its own agents, can focus all its energies on making the house hunting or selling experience as painless as possible for the people doing the buying and selling.

“We don’t have any sort of constraints vis-à-vis a site that’s operated by a trade association; we are strictly focused on the consumer,” said Lawrence Dale, Zoocasa’s group head of real estate business.

An example shows the neighbourhood information that appears with a property listing on Zoocasa.com. It lists everything from average income in the area to which ethnic groups live there. (Zoocasa.com)

Earlier this year, Zoocasa obtained brokerage licences in six provinces (Alberta, B.C., Ontario and the Maritimes, and it intends to get licensed in all regions eventually) and became a member of the major real estate boards so that it could access MLS listings across the country. Prior to that, it had existed — since 2008 — primarily as a search site that had arrangements with specific brokers and agents who got additional exposure by posting their clients’ properties on the site.

The company says the site had more than six million unique visitors last year.

Along with opening up the whole range of MLS listings, the new Zoocasa site will also recommend specific real estate agents in the areas where consumers are looking. The agents are vetted by Zoocasa and come from a range of established agencies, including big national names like Re/Max and Century 21 and smaller, local independents like Harvey Kalles. “We’re looking for a top agent — to us, what that means is they’re experienced, they’re service-focused, they have local knowledge in the areas that they’re purporting to have expertise [in] and they’re productive,” Dale said.Those who use the services of a recommended agent can rate and review that agent on the site.

Referral fees for Zoocasa, rebates for users

Agents can’t buy their way onto the recommended list, Dale said, and the company only makes money once an agent makes a sale.

The agents pay a referral fee to Zoocasa that is equivalent to the industry standard of roughly 35 per cent of the commission they make, which in Toronto is about 2.5 per cent of the selling price, Dale said.

Zoocasa passes some of that on to consumers by giving a rebate to those who use an agent recommended on the site. The rebate is equivalent to about 15 per cent of the commission — although some of the rebate will come in the form of gift cards for businesses such as Home Depot, Canadian Tire or Best Buy.

A house that sold for $400,000 would generate a $1,500 rebate, about $200 of which would come in the form of gift cards, Dale said.

Other sites, such as CommissionPitch, BidComHomes and iBidBroker, are already employing similar models of connecting customers and agents and putting the client at the centre of the house hunting and selling process by offering rebates, competitive commissions and having agents bid for their business.

More pressure to provide detailed real estate data

These type of sites are getting more attention as the underlying business model of how real estate is sold and what kind of housing data is available to the public is coming under greater scrutiny — largely thanks to a case launched by the Competition Bureau two years ago.

The federal agency argued before the Competition Tribunal that the Toronto Real Estate Board should allow its members to provide more detailed housing information — such as demographic data and historical pricing information — to their clients and has appealed a ruling by the tribunal, which had dismissed the case earlier this year.

Dale said if the Competition Bureau is successful in its appeal and more information does become available, Zoocasa will happily post it on its site.

Zoocasa was last in the news about two years ago when it launched Zoopraisal, a feature that allows you to estimate the market value of a given property. The service, which is run by Centract, came under some criticism from the Appraisal Institute of Canada, which argued that property owners should have to consent to their home appraisals being circulated online.

But Dale said the company stands by the feature and considers it just another way of helping people navigate their way through a real estate transaction.www.kijiji.ca and www.ebay.com

These sites offer free basic no frills catalogue listing of your home along with other items you may have for sale. Sometimes real estate agents will also list your home for sale on these sites along with mls services as an add on.

forums such as http://forums.redflagdeals.com/archive/index.php/t-1201507.html offer real reviews by actual users of these services. It may be a good idea to read these before you make a decision to make sure it is right for you.

What Would I do?

Today I would use the services of a real estate professional and engage A broker or agent with a reputable firm. This would be with Someone who I have screened, been referred to, and have listened to their listing presentation. I would marry this with the use of the above mentioned private sale companies. If I happened to find a property for sale that was not on the MLS I would ask my agent to contact the home owner to try and negotiate the purchase for me in exchange of the home owner paying my realtor a fee.

In addition I would get approved for a new mortgage using the services of a mortgage broker. A mortgage broker will offer unbiased advice, the lowest mortgage rates in the industry and professional free service. It’s free because they are paid as subcontractor by the lender/bank that you accept the mortgage from. Darick Battaglia is a licensed mortgage broker and also includes licensing and education as a Real estate broker and Canadian real estate appraiser. In addition Darick has been involved in commercial and residential infill projects and has helped build one of Canada’s newest banks known as Canadian First Bank by sitting on the inaugural board of directors. Darick’s 30 year history in the industry will help ensure that you receive professional advice like no other.

•For 2014, CMHC is reducing its annual issuance of portfolio insurance from $11 billion to $9 billion.

•The Minister of Finance has reduced the amount of new guarantees that CMHC is authorized to provide under its 2014 securitization programs to $80 billion for market National Housing Act Mortgage Backed Securities and to $40 billion for Canada Mortgage Bonds.

• A new legislative framework for covered bonds is now in effect. This framework has created a fully private source of funding using only uninsured mortgages as collateral. It has been recognized internationally for its high standards. Since July 2013, Canadian lenders have successfully issued more than $14 billion in covered bonds in three different currencies.