When you buy a home, you are in fact purchasing the title to the land. You are acquiring the right to use and occupy the space. You will gain the title to the property when the current homeowner signs the deed over to you. Following which, the title is registered with the provincial land titles office.

But what is a real estate title? Ownership of a piece of real estate is demonstrated by a title which is a legal document that specifies who is the owner of this particular property. When a house is sold, title of the property is transferred to the new owner with the help of a real estate lawyer or notary.  Before you finalize the purchase of the home, your real estate lawyer will do a title search of the public records. This search will show all the transactions that have had an impact on the title of the property such as sale, inheritance, etc. However, this search will not uncover hidden issues or defects with the title such as forged documents, liens, outstanding taxes, etc.

This is where title insurance comes in. A buyer can protect his investment by purchasing title insurance against unknown defects with the title. A title may be restricted by claims or rights of others. Unfortunately, these issues are not always discovered prior to closing. A title insurance will protect you agains such unforeseen situations.

Title insurance is not required in all provinces. You should speak to your lawyer to establish whether you should buy title insurance or if there are other options available to you. Policies for title insurance can be in favor of the buyer, the lender or both. In some cases, the lender may demand that title insurance be purchased as a condition to the mortgage loan.

A title insurance will cover such things as unknown title defects which would prevent you from enjoying clear ownership of the home. They also offer protection from losses such as existing liens against title, encroachment issues, title fraud, errors in surveys or public records, etc.

Title insurance coverage for a residential home lasts for as long as you own the property. It is a one time fee for the premium and the policy can be transferred to an heir or a spouse in the event of a divorce. It can also help to ensure that closing is not postponed due to issues in the title. And if issues where to come up later one, the title insurance would covers your legal fees and expenses associated with defending your title. Even though it is not mandated in all provinces, your title insurance premium is a small price to pay for peace of mind.

There are many reasons to consider an older or historical home. One of them is the credits that are available in many cities. Whether in the form of renovation grants or tax credits these incentives are only available for older homes. They may not amount to a very large sum but it is more than you would get with a new home, which is nothing.

When buying an older home, be sure to do your homework. You should have the home inspected for any structural issues. You might also want to have a contractor come in and give you an estimate on the work to be done. And be sure to budget for unexpected surprises such as asbestos, lead paint and mold. The more you prepare yourself at the beginning, the less surprises you will have once you are in the house.

In the case of an historical home, there are additional steps you must take over and above the ones mentioned earlier. Before you start work on an old home, contact your local historic preservation office. They will provide you with standards for rehabilitating historic buildings. Be sure to hire a contractor with experience working on older homes. You want your project to be a restoration but merely a renovation.

You should always add about 20% to the estimate you receive from your contractor. With older homes, you never know what you will find once you start opening walls. Hidden problems can surface at any time and it pays to be prepared for the un-budgeted expenses.

Do not be afraid to get quotes for custom work. You may be surprised with the results. More often than not, the cost of custom work is about the same or cheaper than if you were to buy something off the shelves at a major box store.

With historical homes, your focus should be on preservation. Rather than ripping down distinctive elements – which you probably cannot do under the standards for rehabilitation – focus on restoring them to their former glory. This does not mean that you should only use period specific materials. Just make sure that what you select will complement your property’s character.

A common mistake made with older or historical homes has to do with paint. To prevent your home from feeling like a museum, be flexible with your color palette and do not strictly use colors that would have been appropriate when the house was first built. Your aim should be to enhance the architectural beauty of your home but you should still feel comfortable living there.

As with any major project, preparation is key. Remember to do your homework and to allow for unexpected surprises. They will happen. You simply must use extra care with an older home to ensure that your are prepared for a slightly more demanding renovation. But the benefits will far outweigh the challenges!

Fixed Rate Mortgages

This is by far the most popular type of mortgage whereas your interest rate is fixed for a certain period of time. A standard fixed rate mortgage term is five years. In this case, the interest rate is based on the bond market and it will vary based on economic, political, and business conditions. But remember, that once you lock in your interest rate, it will not chance over the life of the term regardless if the posted interest rate goes up or down.

Variable Rate Mortgages

With variable rate mortgages you will still need to be pre-approved for a three or five year fixed rate mortgage. This step allows the lender to determine whether you would be able to carry your mortgage should the interest rate go up. Historically, variable rate mortgages have had significantly lower interest rate that fixed mortgages however, the interest rate may fluctuate based on the market conditions and the interest rate posted by the central bank. Yes, you will save money and enjoy lower mortgage payments but if you are unable to handle the uncertainty of what your next month’s mortgage payment will be, this type of mortgage is not for you.

You should take the time to ask yourself how comfortable you are with uncertainty. Are you a risk taker or do you prefer to play it safe? In the long run, variable rate mortgages will cost less in interest but will you be able to sleep at night knowing that your mortgage payment may be significantly higher six months or a year from now? These are important questions to ask yourself.

Another key element to consider when shopping for a mortgage is whether or not you will be able to make additional payments, either as a lump sum on the yearly anniversary or as monthly top up payments. Not all mortgages are created equal and some will offer more flexibility than others. By making additional payments whenever you can you are effectively paying down your mortgage faster and reducing the total borrowing cost.

Another aspect to evaluate is the possibility of getting out of your mortgage early. Variable rate mortgages have a tendency of being a little more lenient on this subject and may allow you to break your mortgage with a smaller penalty.

Selecting the right mortgage is an important step when buying a home. You want to make sure that you are comfortable with your loan and that it fits your financial needs, your personality and your lifestyle. Take the time to do some research, speak to a mortgage broker and gather as much information as possible before signing on the dotted line. It is after all the largest loan you will ever take!

It goes without saying that we always believe our condo to be the best one in our building. What with the renovations to the kitchen and the bathroom and the various upgrades you have done throughout the unit, you may feel that your condominium is worth much more than any one similar one. This is a very common misconception homeowners have. Your property is only worth what the market will bear. In other words, if no one is willing to give your asking price, then your unit is not worth that price.

Hot real estate markets can be a double edged sword. One the one hand, prices are high and numerous properties are changing hands. However, such a hot market can also be very volatile. Demand and therefore prices can shifts at a moments’ notice and this could leave you high and dry.

The best tactic when trying to sell your condo is to first do your homework. Enlist the help of a real estate agent and look at what comparable units have sold for in the last month or so. Pay close attention to location and amenities as these could significantly affect the price of a property. Once you have a good idea of what your condo is worth, list it one or two percent below this value. This may sound counter productive but you have to remember that everyone loves a deal. Pricing your condo slightly below market value will generate lots of interest and the more people see your unit, the better your chances of selling fast and for a good price.

It is very important to try to distance yourself from your home. You should look at it as an investment or a piece of real estate not as a place where you and your family have spent happy years. You should also attempt to showcase your property very neutrally. What I mean by that is that you should remove all your personal mementos and photographs and apply a fresh coat of paint in light neutral colors. You want potential buyers to imagine themselves living there.

Remember to trust the advice of your real estate agent. He or she can look at your condo objectively and they will help you stage and then price your unit for fast action. It is in their best interest to generate lots of interest for a fast sale. You should also keep in mind that listing that are more than 30 days old are considered stale and agents and buyers alike have a tendency to discard them. So the tactic of pricing your condo high with the intention of lowering the price later can backfire. You are much better off pricing your property aggressively and who knows, you might even end up with multiple offers.

When you consider that more than 80 percent of all the units built in these new condo projects are one bedroom units, it is no surprise that the majority of the buyers are well off singles in the 20 to 40 age group. So where are the families? They have been moving out of the downtown core. With a drop of 6 percent in the 14 and under age group, young families are heading out to the suburbs. However, not all of them want to move out. Given the choice, many families would rather stay in the city but condominiums are either too small or the few multiple bedroom units available are too expensive for the average family. Experts are worried that unless the situation changes soon, we may be headed the route of Manhattan where only the young and wealthy can afford to live in the city core.

Some Toronto city councilors are lobbying to increase the number of family sized units from the current 10 percent. They are also pushing for inclusionary zoning which would give the city the power to force builders to build more affordable units. A decade ago, the average price of a downtown Toronto condo was $226,000 but today, it is more than $385,000. However, a three bedroom condominium in the city core is on average over $600,000. Well out of the reach of the average family of four.

Builders are not happy at being pushed to build larger units. They argue that families would rather buy a house outside of the city for the same money that a three bedroom unit would cost. But city councilors would rather give families the option of staying downtown to raise their family. This would help prevent inner city schools from closing down and would encourage economic diversity. With inclusionary zoning, the city would be able to require that 10 or 20 percent of all units built be deemed “affordable”.  The city has requested that inclusionary zoning be included in the province’s affordable housing strategy which is soon to be released.

Inclusionary zoning would not be all bad news for builders. In exchange for including affordable housing in their projects, they would be allowed to build more densely as well as higher. Other advantages would be faster approval process, municipal or provincial grants, etc.

Inclusionary zoning would help keep people of more modest means in the city. With housing prices rising much faster than salaries, this is a middle-class program that young families are eager to see implemented. Along with more choice in terms of numbers of bedrooms and condo sizes, more affordable units will allow for a slowdown of the economic diversity drain that has been happening in the city.

What does this mean for the real estate market? Well, if you are a buyer looking for your next home, this new harmonized sales tax will affect you only marginally. Services that were exempt of the provincial such as home inspection, lawyer’s fee, movers, etc will now be subject to the full 13% tax. On the bright side, the actual purchase price of a resale home will not be taxable.

For a seller however, the cost of selling his home just went up significantly. The new tax will be felt the most on real estate fees which previously were only taxed the GST and will now have the full HST applied to them. The current average real estate fee is 5% of the sale price of the home. There are a few extra thousands of dollars in tax on this item alone.  The lawyer’s fees will also be subject to the 13% tax as will a Condominium Status Certificate.

Many professionals of the real estate industry believe that the HST will have a negative impact on the real estate market. Not only will it increase closing costs but it will also increase the cost of buying a new home in Ontario. The provincial government in an effort to alleviate the pressure this new tax will have on the new homes market segment has established a 6% tax credit on new properties sold at less than $400,000. But when you consider that in the Greater Toronto Area most new homes and condos are priced well above the $500,000 mark, this tax credit does not seem like much of an incentive.

The new HST could negatively impact the real estate market as a whole but the segment most likely to be bear the brunt of this new tax is the first-time home buyers. The additional costs may very well price a number of them right out of the market. On a property priced at $350,000, the additional cost for the buyer will be almost $2,000. It is estimate that the HST will add more than $300 million in new taxes on real estate transactions alone in 2010.

Critics believe that the HST will not only affect the real estate market but also the home renovation market. Any renovation project such as a new kitchen, bathroom, backyard fence, etc will now be taxed 13% instead of 5%. Many planned renovations could be put on hold as home owners may fear the additional costs in this uncertain economy.

What will be the true impact of the harmonized sales tax be on the Ontario real estate market? No one can say for sure. Many people may wake up on July 1st to a very nasty surprise. The cost of trading real estate will have become a lot more expensive overnight.

1- Kitchens

Have you ever noticed how guests tend to congregate into the kitchen whenever there is a party? That is because the kitchen is the heart and soul of most homes. Particularly for families. Because of their great value, kitchen renovations can reap a return of 44% higher than the average popular renovation project. Heavy oak cabinets are being replaced by more modern looking maple, either left natural or stained. Stainless steel appliances remain the most popular choice. In terms of countertops, granite is still the preferred material although marble and laminate are not far behind. To give your kitchen a polished a modern look, keep an eye on the latest trends and incorporate them in smaller elements such as door knobs, or lighting options.

2- Paint

Paint is unfortunately often overlooked when renovating a house. However, it is one of the easiest renovation projects and can significantly increase the value of your property. In fact, a simple paint job in neutral colors can give a 30% return on your investment. Paint can also help you showcase interesting architectural elements of your home or brighten up smaller room. Just be sure to keep the palette neutral to appeal to the largest number of potential buyers.

3- Bathrooms

Many of us dream of a small relaxing haven in our home. With the levels of stress ever present in our lives, it is no surprise that many turn to their bathroom for rest and relaxation. Bathroom renovations offer the best bang for your buck with an average 56% return on your investment. So go ahead and indulge yourself with a soaker tub, rain shower head and maybe some ambiance lighting as well.

4- Floors

There is nothing worse for a potential buyer than walking into a home and seeing scratched up wooden floors or old and dingy carpets. With a return on invest of at least 22%, now is the time to tackle these floors. So get rid of the old carpets and refinish your hardwood floors to their original glory. You can also opt for engineered hardwood or laminate floors if there is no hardwood floor in your home. Buyers prefer darker stains as they give the property a more elegant look.

5- Landscaping

First impressions are very important to a potential buyer. So you want to make sure that your property has the greatest curb appeal possible. If you live in a townhome with limited front lawn, choose beautiful planters to flank your front door. In the case of a regular home, add a punch of color with flowers and make sure that the front and back yards are kept tidy at all time.

With the wide spread of the internet, homes can now be easily be found online. One of the most important strengths of the MLS was the exposure it offered properties but nowadays, prospective buyers can search the internet for properties at little or no cost. This shift in shopping patterns has caused the board of directors of both the NAR and CREA to hold numerous meetings to discuss how the MLS can be improved and prevent from becoming extinct. We should not forget that the MLS still remains the most efficient tool for matching sellers with buyers. Trading real estate on your own can also be very challenging as there are numerous legalities as well as negotiations that surround a real estate transaction. However, it is true that with the incredible amount of real estate information available online, buyers and sellers alike are much more educated than they were twenty years ago.

It appears that the CREA and NAR both agree that the MLS should be deregulated and opened up to other parties. Currently, the MLS is region specific whereas an agent from the Greater Toronto Area can only access listings for this particular region. This may change in the future as pressure is being applied to create more competition, and a more a la carte approach to real estate trading. Smaller fees may have to be accepted by members of the MLS if they want to stay in business. But to say that the MLS is obsolete is not true.

One of the main sticking point with the MLS system is that extra fees are being billed to sellers by its members and often, these said services are not directly related to the MLS listing. When this came to light, there was a public outcry. How could the CREA and NAR demand more than is needed to place a listing on the MLS system? With so much pressure from the public, the CREA has no choice to to make changes. One of the options that is being discussed it to offer consumers more choice whereas the real estate agent would list all the services that are proposed and the cost for each and the client would then choose what they feel is appropriate for their needs. But as with any organizations, changes take time and we may have to wait a few years before the proposed modifications take place.

Under the new mortgage qualification rules, to qualify for a mortgage buyers will need to prove that they can afford a standard five year fixed rate mortgage. With these measures, the government aims to prepare borrowers for the inevitable interest rate increases. Interest rate are currently at an all time low but are expected to begin rising later on this year. With stricter qualifying rules, the government hopes that it will discourage buyers from borrowing amounts that they will not be able to afford later on.

This means that the Toronto real estate market, particularly the condo market, should see a decrease in competition as a number of first time buyers drop out of the race. If a buyer barely qualified under the old rules, this buyer will no longer be able to afford the same level of mortgage under the new ones.

Experts are saying that these changes will not affect smart investors. Only those who let their emotions get the best of them, or have unrealistic expectations, will suffer. The number of bidding wars taking place in the Toronto real estate market should slow down as potential buyers no longer qualify for the same levels of mortgages. It should also reduce the number of offers without a financing condition as potential buyers may want to keep an out in the event that the amount of mortgage they require is declined.

First time buyers will have to take a good hard look at their finances and figure out how much they can realistically afford to pay on a monthly basis. Traditionally, mortgage brokers would use the three year fixed mortgage rate to determine whether a potential buyer could afford to make the payments on the mortgage amount. Under the new rules, the lenders will have to use a five year rate test, which represents about one percentage point more than the three year fixed rate.

First time buyers are not the only ones affected by these new mortgage rules. Investors will also feel the heat. In an effort to reduce the amount of prospecting going on the Greater Toronto Area, the required down payment under the new rules has been raised to 20 per cent, up from the current 5 per cent.  So investors wishing to purchase a rental property will need to come up with quite a bit more money to seal the deal.

These new rules may also have another long term positive effect on the real estate market. With stricter lending practices, we should be able to avoid a real estate bubble. Prices of homes and condos should level off or increase at a more realistic rate. With a little less competition and with buyers qualifying for less money, emotional purchases should decline as well.

I think first off I should say that I love my job and I am fortunate enough to not wake up in the morning and dread jumping out of bed going to a workplace that I hate. The last five years as a real estate agent have been great. They’ve had their ups and downs, but I’ve learned a lot, experienced many different things, and wouldn’t change a minute of it. These experiences have made me who I am today, have made me a strong and caring agent, and have made me realize how much I love the city that I live and sell in. Toronto is an amazing place to call home and to start blogging about!