Is this a good time to refinance your mortgage?- The Toronto Star

The Toronto Star's Robb Engen writes:

 

---

The Bank of Montreal made headlines last week, announcing a special 5-year fixed rate of 2.99 per cent.  Other banks  followed with their own special offers, as the competition for mortgages heats-up across the country.

This might be a good time to consider refinancing your mortgage.  Here’s why: 

When interest rates are low, many people refinance in order to save thousands of dollars over the life of their mortgage.  However, it’s important to determine what the pre-payment charge will be before refinancing your mortgage.

A pre-payment charge is the amount you will need to pay for breaking the terms initially negotiated on your mortgage.  This can be a large amount, meaning you won’t actually be saving money in the long run.

It doesn’t always make sense to break your mortgage, but a good rule of thumb is if interest rates are at least 0.5 per cent lower than your current mortgage rate, it’s worth looking at refinancing.

Consider a scenario where you locked-in at a discounted 5-year fixed mortgage rate of 3.99 percent in January, 2010.  The balance on your mortgage is $250,000.

Even though variable rates are lower, you’re still concerned about rising interest rates in the future.  Your bank is now offering a 5-year fixed rate of 3.49 per cent.  

In order to break your current mortgage after two years of payments, and with three years remaining on your term, you will be charged an interest rate differential (IRD) penalty of $3,750*.

The penalty sounds pretty stiff, and that’s what scares people and prevents them from taking action.  By refinancing with the new interest rate of 3.49 per cent for the remaining 36 months, you will save $128 per month in mortgage payments, and save more than $6,775 in interest.

As consumers, we spend a lot of time shopping around for the best grocery prices, or looking for the cheapest gas station, yet we can’t be bothered to review our mortgage at least once a year for the opportunity to save thousands of dollars.
Before refinancing, consider how long you plan to stay in your home, how you plan to use any extra cash flow, and how refinancing can support your overall financial goals.

* contact your lender directly for an exact penalty quote

Toronto house prices dip slightly in December- The Toronto Star

An article by The Toronto Star's Susan Pigg:

---

House sales — and doom-defying price increases — are slowing, easing concerns that the lowest interest rates in history could cause the Canadian housing market to overheat.

Buyers are becoming “increasingly cautious,” but house sales are expected to continue making a “significant contribution to Canadian economic activity” this year, says the Canadian Real Estate Association.
A total of 456,749 houses changed hands via Canada’s MLS system in 2011, up 2.2 per cent from 2010, CREA reported in its monthly assessment of the market released Monday.
While Toronto house prices were actually down in December over November when adjusted for seasonal fluctuations — they dipped about 2.4 per cent putting the average house at $466,540 — prices were up overall some four per cent from Dec. 0f 2010.
The average Canadian house price was $358,480 when adjusted for seasonal fluctuations, up less than one per cent from a year ago.

2012

 

Merry Christmas! ¡Feliz Navidad!

Toronto house prices hit new record- The Toronto Star

The Toronto Star's Susan Pigg  reports on Toronto's house prices:

---

The Toronto housing market slipped back into sellers’ territory in November, helping propel prices even higher to a record average of $481,305.
That’s a 2.1 per cent increase from October and, when adjusted for seasonal fluctuations, almost 10 per cent more than the average GTA home was worth a year ago, according to figures released Thursday by the Canadian Real Estate Association.
In fact, November sales across Canada were 7 per cent above the 10-year average for the month, resulting in the fourth highest level of sales on record for what’s typically the slow season, CREA noted.

A sold sign sits on the corner of Toronto's Manning Ave. and Ulster St.

Tara Walton/Toronto Star

While no one is uttering the dreaded B-word — bubble — as did Britain’s venerable magazine The Economist when it recently warned Canada’s housing market may be 25 per cent overvalued, the warning is clearly of concern among the country’s housing experts.
“With interest rates expected to remain low for longer, the housing sector will no doubt be closely watched for signs of excess,” say CREA’s chief economist Gregory Klump.
“That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability in Canada.”
A record November of sales in Halifax-Dartmouth, up a seasonally adjusted 34.7 per cent, helped offset a 10.5 per cent decline in sales in Toronto where 7,773 homes changed homes.
New listings across the GTA were down 4.4 in November while prices climbed by 9.7 per cent.
Despite economic turmoil in the rest of the world, Canadians continue to see real estate as a sure thing: A total of 432,048 homes have traded hands across Canada between January and the end of November, up 2.1 per cent from the same period last year, CREA says.

Ten tips for getting a fair price on a home - The Globe and Mail

An article from The Globe and Mail on September 7, 2011, by Amy Fontinelle:

---

Whether it's a buyer's market or a seller's market, all homebuyers have one thing in common: they don't want to get ripped off. But how do you know if you're getting a fair deal on the home you're prepared to place an offer on? Read on to find out how to evaluate the price of any home so you can make a sound investment decision.

Realtor standing with family in front of new house Getty Images/OJO Images

Research recently sold, comparable properties
A comparable property is one that is similar in size, condition, neighbourhood and amenities. One 1,200-square-foot, recently remodeled, one-story home with an attached garage should be listed at roughly the same price as a similar 1,200-square-foot home in the same neighbourhood. That said, you can also gain valuable information by looking at how the property you're interested in compares in price to different properties. Is it considerably less expensive than larger or nicer properties? Is it more expensive than smaller or less attractive properties? Your real estate agent is the best source of accurate, up-to-date information on comparable properties (also known as “comps”).

Check out comparable properties that are currently on the market
In this case, you can actually visit other homes and get a true sense of how their size, condition and amenities compare to the property you're considering buying. Then you can compare prices and see what seems fair. Reasonable sellers know that they must price their properties similarly to market comparables if they want to be competitive.
 
Look at comparables that were on the market recently but didn't sell
If the house you're considering buying is priced similarly to homes that were taken off the market because they didn't sell, the property you're considering may be overpriced. Also, if there are a lot of similar properties on the market, prices should be lower, especially if those properties are vacant. Check out the unsold inventory index for information about current supply and demand in the housing market. This index attempts to measure how long it will take for all the homes currently on the market to be sold given the rate at which homes are currently selling. (For further reading, see Selling Your Home In A Down Market.)
 
Consider market conditions and appreciation rates in the area
Have prices been going up recently or going down? In a seller's market, properties will probably be somewhat overpriced, and in a buyer's market, properties are apt to be underpriced. It all depends on where the market currently sits on the real estate boom-and-bust curve. Even in a seller's market, properties may not be overpriced if the market is on the upswing and not near its peak. Conversely, properties can be overpriced even in a buyer's market if prices have only recently begun to decline. Of course, it can be difficult to see the peaks and valleys until they're history. Also consider the impact of mortgage interest rates and the job market on the economy. (Knowing your mortgage choices is important. For more information, read Shopping For A Mortgage.)
 
Are you buying a for-sale-by-owner property?
A for-sale-by-owner (FSBO) property should be discounted to reflect the fact that there is no 6 per cent (on average) seller's agent commission, something that many sellers don't take into consideration when setting their prices. Another potential problem with FSBOs is that the seller may not have had an agent's guidance in setting a reasonable price in the first place, or may have been so unhappy with an agent's suggestion as to decide to go it alone. In any of these situations, the property may be overpriced.
 
What Is the expected appreciation for the area?
The future prospects for your chosen neighbourhood can have an impact on price. If positive development is planned, such as a major mall being built, the extension of light rail to the neighbourhood, or a large new company moving to the area, the prospects of future home appreciation look good. Even small developments like plans to add more roads or build a new school can be a good sign. On the other hand, if grocery stores and gas stations are closing down, the home price should be lower to reflect that, and you should probably reconsider moving to the area. The development of new housing can go either way - it can mean that the area is hot and is likely to be in high demand in the future, increasing your home's value, or it can result in a surplus of housing, which will lower the value of all the homes in the area.

Remembrance Day - November 11, 2011

Thank you to all of those who have served and who continue to serve in our Armed Forces. To those who give up time with their families, who give up their lives to defend our nation and who give us their all, we salute you.

 

Remembrance Day

Remembrance Day is a very important day for Canadians. November 11 is a day of national commemoration where we honour the over 100,00 fallen Canadian soldiers who gave their lives to their military service.

Throughout the country, services are performed to remember the dedication and sacrifice these soldiers made for not only their own countrymen, but for those whose countries they helped liberate. We honour them with ceremonies

The Poppy

After Lieutenant Colonel John McCrae, MD (1872-1918) of the Canadian Army's poem In Flanders Fields was published in 1915 the poppy became a popular symbol for soldiers who died in battle.

There exists a record from that time of how thickly Poppies grew over the graves of soldiers in the area of Flanders, France. This early connection between the Poppy and battlefield deaths described how fields that were barren before the battles exploded with the blood-red flowers after the fighting ended. 

Just prior to the First World War, few Poppies grew in Flanders. During the tremendous bombardments of that war, the chalk soils became rich in lime from rubble, allowing “popaver rhoes” to thrive. When the war ended, the lime was quickly absorbed and the Poppy began to disappear again. 

Remembrance Day Services in Brampton and Toronto

November 11, 2011- Remembrance Day service in Brampton

November 11, 2011- Remembrance Day service in Toronto

In Flanders Field, written by Lieutenant John McCrae

  

Brampton Readers Choice Awards

It's that time of year again, the Brampton Guardian has put out its Readers Choice Awards survey.

If you were pleased with the work Guerrero Law did for you or is currently doing, please consider voting for us. The survey closes on Friday, November 4, 2011.

If you live in Brampton, the print version can be found in your Brampton Guardian newspaper, alternatively, you can access the survey online here or click on the Brampton Guardian icon below. The lawyer's section is #79. If you complete the entire survey, you are automatically entered into the draw for a $500 shopping spree at the Bed & Bath Warehouse.

The Beauty of Our Province/La Belleza de Nuestra Provincia

Ontario in all its splendour.

Your home’s sale price is private information by Mark Weisleder

An article from the Toronto Star, October 14, 2011, by Mark Weislader.  

---

Condos under construction between the Rogers Centre and the Air Canada Centre in downtown Toronto. (Apr. 8, 2009)

Steve Russell/Steve Russell

A few years ago, the federal Privacy Commissioner ruled a home’s sale price is personal information and cannot be advertised or disclosed without the permission of the buyer and the seller.

This is what privacy legislation is all about — protecting your personal information. The lesson is that if you do not want to see your home’s sale price advertised after closing, then don’t agree to it.
In another case decided in 2006, an insurance company arranged for photographs to be taken of an apartment unit, without the tenant’s permission. The purpose was to get examples of the state of repairs of the interior of the apartments to assist in figuring out the building’s value. However, the pictures included some of the apartment’s contents.
The Privacy Commissioner’s office found that while the purpose might have been to show the condition of the unit, it also revealed information about the tenant, including their standard of living, whether they could afford expensive media equipment, whether they loved music or art or cooking. This was found to be personal information and thus permission should have been requested.
What this means is that before a buyer or agent takes photographs of anything inside a seller’s home, even during an open house or home inspection, they should ask for permission.
In another case decided in 2008, a consumer asked their bank for a copy of the appraisal report the bank had done on their home. An appraisal contains information about other comparable property sales in your area that help the appraiser calculate the value of your property. The bank refused, claiming this was confidential commercial information and not personal information.
The Privacy Commissioner’s office decided that, while the consumer was entitled to the appraisal value of their own home, they were not entitled to the name or contact information of the appraiser, or anything related to comparable property sales, as this was the personal information of third parties.
The issue of privacy arises in the ongoing lawsuit between the Competition Bureau and the Toronto Real Estate Board, something I’ve written about in the past few months.
The Competition Commissioner wants Canadians to be able to go online and access the selling price of any home in Canada. The potential abuses are huge, starting with thieves who want to learn about potential victims and their lifestyle. Since buyers and sellers didn’t provide this permission, in my opinion, it violates privacy legislation.
It seems to me the Privacy Commissioner should be involved in these proceedings and I encourage all Canadians to complain to the Privacy Commissioner’s office in Ottawa and to federal Industry Minister Christian Paradis. To register a complaint to the Privacy Commissioner’s office, you can download a form from their website, www.priv.gc.ca, sign it and then send it in. You can email Paradis’ office at minister.industry@icigc.ca.

Feliz Día de la Independencia a Chile

También queremos felicitar nuestros compadres de Chile por su Día de la Independencia del 18 de septiembre.

Feliz Día de la Independencia a Costa Rica, El Salvador, Guatemala, Honduras, y Nicaragua

Aunque un poco retrasado, nunca es tarde para felicitar nuestros compadres de Costa Rica, El Salvador, Guatemala, Honduras, y Nicaragua por su Día de la Independencia del 15 de septiembre.

Nuevo annuncio de Guerrero Law

Utilizamos este anuncio en la material promocional del festival Toni Reyes este verano. 
Fue inspirado por la historia del logotipo. Checan pronto para leer sobre nuestro logotipo.

Photos from the Miss Chiquitita Pageant

Guerrero Law was pleased to donate to the wonderful Miss Chiquitita Pageant for girls ages 4-10 years old hosted by the Barrie Latin Community Centre on Saturday, September 17, 2011 at the Kozlov Centre in Barrie. All the girls did a wonderful job walking the cat walk in their casual wear, dazzling us with their singing and dancing skills and showing us their beautiful formal wear. It takes a lot of courage to get up in front of a crowd, let alone at such a young age!

Here are a few pictures taken by us from the day's events.

 

Artículo sobre Antonio Guerrero en la revista La Guía en Toronto

Antonio Guerrero de Guerrero Law se encuentra otra vez en una de las revistas de Toronto. Esta vez es La Guía que tiene una edición especial sobre México este mes para celebrar la Independencia de México y es ahí donde encontrarán la entrevista con Antonio.

Haz click en cada foto para hacerlo más grande.