Increasing your payment by a small amount can yield huge savings.

As you know, you're paying interest every day you have a mortgage. So the sooner you reduce the amount you owe, the less interest you pay. One relatively painless way to do this is by increasing your payment by a small amount. Then all you have to do is sit back and let time work it's magic—before you know it, you'll have chipped thousands of dollars off your mortgage! 

Let's say you have a $200,000 mortgage at 4.5% with a 30 year amortization, and you're in year 3. If you increase your monthly payment by $100—roughly the cost of one premium coffee per day—that reduces your amortization by 51 months and saves you $24,622 in interest over the life of the mortgage! Now, I'm not suggesting you give up all of life's pleasures to pay off your mortgage faster. But it's obvious that doing something small can make a BIG difference. 


Information is compliments of:
Mike Havery AMP, Mortgage Planner
http://www.themortgagearchitect.ca/

Demand for Luxury homes on the rise across Canada

Sales of luxury homes have started out at a record-setting pace for 2012, up almost 50 per cent over the first quarter of last year, according to a new ReMax report.
While the luxury market only accounts for about 2 per cent of the total GTA housing market, the unexpectedly strong demand, coupled with a
“severe shortage” of prime properties in higher-end neighbourhoods, is only further fuelling bidding wars and price escalations, it says.
That, in turn, is driving more properties into the “luxury” price range. Even suburban communities such as Vaughan, Markham and Richmond Hill have seen a 54 per cent jump in demand for $1.5 million-plus homes in the first quarter of 2012 over 2011.
But that translates into just 54 luxury homes changing hands in those communities, it’s important to note, up from 35 sales in the first quarter of last year.
The annual report, Upper-End Market Trends 2012, examines prices and trends across Canada, prime neighbourhood by prime neighbourhood.
Luxury sales records were set in 10 of the 16 urban markets the report tracks, although the definition of luxury can vary from $500,000 (in mid-sized markets such as Regina and Halifax) up to $2 million (Greater Vancouver.)
Some 412 homes sold for over $1.5 million from January to the end of March across the GTA, up from 277 during the same time last year, the report says.
While high-end demand in Toronto was hot — especially in neighbourhoods within walking distance of transit — things have cooled in Vancouver where last year a frenzy of foreign buyers not only drove up sales numbers, but skewed average house prices upward right across the country before the buying frenzy eased later in 2011.
Low interest rates, improving consumer confidence and “tremendous confidence in the city’s residential housing market” in the face of stock market and global economic turmoil, are all being cited as factors. But, even then, the sales figures came as a surprise, says Michael Polzler, executive vice president for ReMax Ontario-Atlantic Canada.
“We didn’t expect (luxury sales) to be up nearly this much. This is significant.
“I think there is a lot of momentum out there in the market and people want to buy. If anything, in many cases, there is a shortage of product.”
That shortage is being felt even in the condo sector, Polzler said.
Seven per cent of luxury sales were condos in Toronto’s pricey core, the report notes, most of them in Yorkville.
The highest-priced condo sold in Toronto so far this year went for $5.3 million — a far cry from the record $28 million spent by an international buyer last year for a penthouse, due to be completed this summer, in the new Four Seasons Private Residences and hotel towers.
Regina, where luxury comes in at $500,000 or more, saw the biggest increase in luxury sales this year, up 56 per cent over the first quarter of 2011.
More: New home prices continue to rise
More: Things to watch for when flipping a condo
]]> http://www.moneyville.ca/article/1179107--demand-for-high-priced-homes-up-across-canada http://www.moneyville.ca/article/1179107 Thu, 17 May 2012 11:38:00 -0400

How to Avoid renting to a Problem Tenant!

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A recent Toronto Star story exposed a problem tenant successful in abusing the Ontario landlord and tenant process to avoid paying rent. It can take landlords up to nine months to evict these types of ‘professional’ tenants.
However, it would be wrong to paint all tenants with the same brush. Over 95 per cent of Ontario tenants pay their rent on time and take care of their rental units. For every problem tenant, there are also problem landlords who do not properly maintain their buildings.
Here is how landlords and tenants can avoid problems:
Qualify your tenant in advance
When you advertise for a tenant, make it clear that you will be doing a credit check and checking personal references. This will assist in discouraging potential scammers.
Related: Why month to month may be better than a lease
Ask for a pay stub or banking information. Make sure that the proposed tenant makes regular deposits into their bank account, to prove steady employment.
Call references to make sure they check out
Google the tenant’s name to see if their social media information is the same as that on your rental application
Make sure the address on their driver’s license matches where they say they live now.
Join a service such as tenantverification.com to check a tenant’s credit
Have the tenant pay for utilities, if separately metered. They will have to pass the credit check of the utility company as well.
Treat tenants with respect
Successful investors understand that tenants are your silent partners. They are a source of income and are looking after your investment. When you treat them with respect, and show appreciation, they will also take better care of your building.

Something as simple as agift card can go a long way. When the tenants leave, if they have been a model tenant, why not award them with a certificate of superior tenancy, to show your appreciation. This might help them find another unit, especially if they have other credit problems.
Related: When can you evict a tenant for a family member?
If things go wrong, it is better to make a deal
Sometimes bad things happen. A tenant loses their job and even though they would like to pay the rent, they can’t. Instead of rushing to the landlord and tenant board, which takes time and results in hard feelings, try to work it out.

Perhaps offer to help the tenant move back with relatives and forgive part or all of the back rent owed, in exchange for the tenant leaving early. Let the tenant know that if they agree, you will also not notify the credit bureau about this and ruin their credit rating.

The landlord can then write off the amount owing and find another tenant to take over the unit. Also, when a deal is made, the tenant is likely not to damage the unit when they leave, which is what usually happens when things end badly.
Tenants, also show appreciation to those landlords who do properly look after your buildings. Don’t change the locks without permission, or permit visitors to damage anything on the property.
When landlords and tenants work together, everyone wins.
Mark Weisleder is a Toronto real estate lawyer. Contact Mark at mark@markweisleder.com
]]> http://www.moneyville.ca/article/1179318--how-to-avoid-renting-to-a-tenant-from-hell http://www.moneyville.ca/article/1179318 Fri, 18 May 2012 18:00:00 -0400