How to purchase a home in 8 steps. A RE/MAX infographic

November 23, 2013 · Filed Under First Time Buyers, Real Estate Articles · Comments Off 

How to Buy a Home Infographic

Will the subprime mortgage effect St. John’s real estate?

January 28, 2008 · Filed Under Mortgages, Real Estate Articles · 1 Comment 

Last week both the United States and Canada dropped their interest rates, 0.75% and 0.25% respectively. With the recent subprime mortgage fiasco in the U.S, people have been asking was the rate reduction due to this? Will Canada follow the same fate? And most importantly….what exactly is a subprime mortgage?

Here is my interpretation of the subprime mortgage:

The Bank of Canada has it’s prime rate. Banks and lenders then offer a mortgage at competing rates to potential pre-approved home buyers.

A subprime mortgage refers to a mortgage offered to a borrower that is higher risk than the normal home buyer. They do not receive a lower interest rate. It’s actually the complete opposite. Potential home buyers who have poor credit scores make them candidates for a subprime mortgage and they typically pay much higher mortgage rates.

The problem was that the lenders offered an introductory rate which was comparable and at times lower than the prime mortgage rate to attract clients. You can begin to see the bigger picture forming.

The introductory rates were only temporary and after a year or two they expired and the interest rate on a subprime mortgage increases. This resulted in many, now home owners, who once had a low introductory mortgage rate paying interest rates in the double digits.

Remember, they were high risk from the start with “special” introductory offers. When the rates jumped to double digits, the subprime meltdown began.

Strategies for Buying Real Estate in St. John’s

December 29, 2007 · Filed Under First Time Buyers, St. John's Real Estate · Comments Off 

Learn as much about market values as you can. Compare properties, not only the price but the condition of the property. Visit open houses. Arrange private viewings. Ask your Realtor to prepare a market evaluation of the property (this will tell you recently sold prices and active listing prices of similar properties). Email me and I will send you daily active listings as they are listed on the market.

Most offers are subject to two major conditions. 1) Home Inspection and 2) Financing

The Home Inspection is an option that you, as the buyer, can drop, but for the cost of the inspection versus the cost of the house I would not recommend this. I’ve seen time and time again a Home Inspection saving my clients thousands of dollars in unseen defects.
As for the financing, this option is a must. No financing = no mortgage = no house. Read my post from yesterday Arrange Your Mortgage – Get Pre Approved. The way the Real Estate market in St. John’s, Mount Pearl and surrounding areas are booming now, having your pre-approval in place is key.

Armed with this knowledge you will feel comfortable in writing an offer when the right house appears.

Confidence in Newfoundland sets off home buying binge

December 19, 2007 · Filed Under First Time Buyers, Market Trends, St. John's Real Estate · 1 Comment 

The Globe and Mail printed an article on December 17, describing the recent boom in the Newfoundland Real Estate market. Dubbed “The Danny Williams Effect” after the recent Hebron offshore oil project, homes in St. John’s and surrounding areas (including Mount Pearl, Paradise, CBS, and Torbay) surged 68% from October to November. While it hasn’t been classified as a sellers market yet, the activity noticed from reduced inventory, multiple offers on homes and at times over asking prices in recent weeks, are clearly pointing in this direction. Inventory is down with pre-existing homes which leads buyers to the decision of building. The new construction market, which once had a 3 – 4 month start-to-finish time frame are booming and are quoting 6 – 8 months for a move in date.

For buyers, this means paying close attention to the market. (Email me and I will send you daily listings as they appear on the market) and make sure you get to a bank or financial institution of your choice and get pre-approved. Having both these tasks completed and working with an experienced Realtor will certainly help you in the 2008 real estate market.

Read Lori McLeod’s article in the Globe and Mail here

Let Fraser and Stephen Winters help you with buying or selling your home in 2008.

Call us today – 709-682-9245 or 709-682-9045