How to Avoid Overspending During the Holidays: Top Tips to Save Money

General Mark Goode 19 Nov

The holiday season is a time of joy, giving, and celebration. But let’s face it—it’s also a time when many of us stretch our budgets a bit too far. Between gift shopping, holiday parties, and festive decorations, it’s easy to overspend. The good news? With a little planning and smart strategies, you can enjoy the season without breaking the bank. Here are some practical tips to help you save money and keep your finances in check during the holidays.

1. Set a Holiday Budget and Stick to It

The first step to controlling holiday spending is creating a realistic budget. Decide how much you can afford to spend on gifts, decorations, food, and other holiday-related expenses. Write it down and break it into categories. For example:

  • Gifts: $300
  • Decorations: $50
  • Food and Drinks: $100
  • Holiday Activities: $75

Once you have a budget, stick to it. Track your spending as you go so you don’t accidentally go overboard.

2. Make a List and Check It Twice

Before you hit the stores or shop online, create a detailed gift list for everyone you plan to buy for. Assign a spending limit for each person. This will help you stay focused and avoid impulse purchases. Remember, it’s the thought that counts—meaningful gifts don’t have to be expensive.

3. Embrace DIY Gifts and Decorations

Get creative and save money by making your own gifts and decorations. Homemade cookies, candles, or personalized photo albums can be just as thoughtful (if not more) than store-bought items. As for decorations, DIY wreaths, ornaments, or centerpieces can add a personal and festive touch to your home without the hefty price tag.

4. Take Advantage of Sales and Discounts

Holiday sales like Black Friday, Cyber Monday, and end-of-season clearances are great opportunities to save money. Start shopping early and keep an eye out for deals on the items you need. Don’t forget to use coupons or promo codes when shopping online!

5. Use Cash or Debit Instead of Credit

To avoid holiday debt, try sticking to cash or debit for your purchases. When you use a credit card, it’s easy to lose track of how much you’re spending. By using cash or debit, you’ll be more aware of your spending limits and less likely to overspend.

6. Host Potluck Gatherings

If you’re planning a holiday party, consider making it a potluck. Ask guests to bring a dish or dessert to share. This not only lightens your workload but also saves you money on food and drinks. Everyone gets to enjoy a variety of dishes without one person bearing the full cost.

7. Set Expectations with Family and Friends

The pressure to buy extravagant gifts can be overwhelming, but it’s okay to be honest with your loved ones about your budget. Suggest alternatives, like Secret Santa gift exchanges, homemade gifts, or spending time together doing something meaningful instead of focusing solely on material gifts.

8. Avoid Last-Minute Shopping

Procrastination often leads to rushed decisions and overspending. Start your holiday shopping early so you have time to compare prices and make thoughtful purchases. Plus, shopping early means avoiding the stress of packed stores and long lines!

9. Get Creative with Wrapping

Gift wrap can be surprisingly expensive, and it often ends up in the trash. Save money by using reusable gift bags, brown paper (decorated with stamps or ribbons), or newspaper for wrapping. It’s budget-friendly and eco-conscious!

10. Focus on Experiences, Not Things

The holidays aren’t just about giving gifts—they’re about creating memories. Plan low-cost or free activities like watching Christmas movies, driving around to see holiday lights, or baking cookies together. These moments can often mean more than any store-bought present.

11. Track Your Spending

Keep a running tally of your holiday expenses so you know exactly how much you’ve spent. Use a budgeting app or a simple spreadsheet to stay organized. Being aware of your spending can help you adjust as needed and avoid overspending.

12. Don’t Forget to Save for Next Year

If holiday expenses caught you off guard this year, start planning ahead for next year. Consider setting up a holiday savings fund and contributing to it throughout the year. Even a small monthly contribution can make a big difference when the holidays roll around again.

Final Thoughts

The holidays should be about joy, connection, and gratitude—not financial stress. By planning ahead, sticking to a budget, and focusing on what truly matters, you can enjoy the season without overspending. Remember, it’s not about how much you spend, but the thought and love behind your actions that make the holidays special.

Happy holidays, and happy saving from our team at Mortgage Man DLC🎄🎁✨

Bank turn you down for a mortgage? Let us assist you with Alternative Lending options!

General Mark Goode 1 May

Alternative LendingWhat is Alternative Lending?

You may be wondering what Alternative Lending is and how it benefit you. When traditional lenders (such as banks or credit unions) deny mortgage financing, it can be easy to feel discouraged. However, it is important to remember that there is always an alternative and our Mortgage Man team can help!

If you’re seeking a mortgage, but your application doesn’t fit into the box of the big traditional institutions, you’ll find yourself in what’s commonly referred to in the industry as the “Alternative-A” or “B” lending space. These lenders come in three classifications:

  • Alt A lenders consist of banks, trust companies and monoline lenders. These are large institutional lenders that are regulated both provincially and federally, but have products that may speak to consumers who require broader qualifying criteria to obtain a mortgage.
  • MICs (Mortgage Investment Companies) are much like Alt A lender but are organized in accordance with the Income Tax Act with an incorporated lending company consisting of a group of individual shareholder investors that pool money together to lend out on mortgages. These lenders follow individual qualifying lending criteria but tend to operate with an even broader qualifying regime.
  • Private Lenders are typically individual investors who lend their own personal funds but can sometimes also be a company formed specifically to lend money for mortgages that carry a higher risk of default relative to a borrower’s situation.  These types of lenders are generally unregulated and tend to cater to those with a higher risk profile.

All classifications noted above price to risk when it comes to a mortgage. The more broad the guidelines are for a particular mortgage contract, the more risk the lender assumes. This in turn will yield a higher cost to the borrower typically in the form of a higher interest rate.

Before considering an alternative mortgage, here are some questions you should ask yourself:

  1. What issue is keeping me from qualifying for a traditional “A” mortgage today?
  2. How long will it take me to correct this issue and qualify for a traditional lender mortgage?
  3. How much do I have to improve my credit situation or score?
  4. How much do I currently have available as a down payment?
  5. Am I willing to wait until I can qualify for a regular mortgage, or do I want/need to get into a certain home today?
  6. Is this mortgage sustainable? Can I afford the larger interest rate?
  7. Can I exit this lender down the road in the event the lender does not renew or I cannot afford this alternative option much longer?

If you are someone who is ready to go ahead with an alternative mortgage due to a weaker credit score, or you don’t want to wait until you’re able to qualify with a traditional lender, these are some additional questions to ask when reviewing an alternative mortgage product:

  1. How high is the interest rate? What are the fees involved and are these fees paid from the proceeds, added to the balance or paid out of pocket
  2. What is the penalty for missed mortgage payments? How are they calculated? What is the cost to get out of the mortgage altogether?
  3. Is there a prepayment privilege? For example, are you able to avoid penalties if you give the lender a higher mortgage payment once a month?
  4. What is the cost of each monthly mortgage payment?
  5. What happens at the end of the term. Is a renewal an option and what are the costs to renew if applicable
  6. What is the fine print?

When it comes to the alternative lending space, things can get complex. Contact our expert team at Mortgage Man DLC today if you’re considering an alternative lender and we can help you source out various mortgage products, as well as review the rates and terms to ensure it is the best fit for you. We find mortgage solutions tailored to YOU! Contact us today 705.326.8523 or fill out our convenient online application here.

Source: OurHouse DLC Marketing Team

5 Expert Tips to Tackle Financial Stress Head-On: Your Guide to Financial Well-Being

General Mark Goode 15 Apr

 

With the continued rise of inflation, interest rates and the overall cost of living, the uncertainty can be unnerving for many individuals. But don’t fret! We have some tips and suggestions to help you manage your financial stress and help you to power through these latest economic changes:

Prioritize What You Can Control: It can be easy to feel like you have no control over your financial situation, especially with the economy in flux. However, dwelling on things you cannot fix will only cause more stress. Instead, we recommend focusing on what you CAN control within your situation. For instance, take a looking at your phone bill and services to see if you can reduce the cost (even temporarily), reviewing your grocery bill and looking for places to switch to cheaper brands or alternatives, perhaps buying in bulk. You’ll not only save money, but you will feel like you have more control and help reduce stress.

Pay Essential Bills: If you are struggling to pay your monthly bills, prioritizing them can help you gain some control. Knowing which bills are most important to pay first can help reduce anxiety as you’re not scrambling to decide what to do. In some cases, prioritizing your bills can also help you uncover unnecessary spending and you may find something that can be eliminated entirely (even temporarily).

Automate Payments and Savings: If you’re struggling to keep up with your bills and payments, or are finding that you keep saying you’ll save money, but aren’t, considering automation for your finances can be a step in the right direction. Ensuring that your bills are paid on time will help reduce stress and protect you from wasting money on penalties for missed payments. Alternatively, you can also set up automatic money transfers on the days you are paid to move funds into a separate, savings account before you even see it. Thereby, reducing the likelihood that you’ll skip on adding to your savings that month or use that money elsewhere.

Find Ways to Earn More Money: When cashflow is a problem and you are feeling the strain of trying to afford your current lifestyle, looking for ways to earn additional money can be a lifesaver! Consider part-time work for the weekends, consulting in your area of expertise or picking up extra hours at your current place of work. Now is also a great time to discuss with your manager if you are due for a raise.

Talk to Your Mortgage Professional: For most people, their mortgage is their largest monthly bill. If you are feeling the financial crunch, now is a great time to talk to our expert team at Mortgage Man DLC about potentially changing your payment schedule or even looking for a different mortgage product with better rates (ideally if you are at the end of your term to avoid any mortgage penalties). Do not hesitate to be honest about your situation and ask us what your options are.

Regardless of where you find yourself financially, there are often many solutions to help reduce and resolve your stress and ensure that you have healthy monthly cashflow. At Mortgage Man DLC, we are here to take the stress out of the process for you and have your best interests in mind, contact us today 705.326.8523 or fill out our online mortgage application today.

 

Source: Our House – DLC Marketing Team

Guarding Against Deception: Fraud Prevention Month Initiatives Unveiled

General Mark Goode 15 Mar

Did you know? March is Fraud Awareness Month. Protecting yourself and your mortgage from fraud is crucial to safeguard your financial well-being. Understanding some of the more common mortgage fraud scams and how to protect yourself can make all the difference!

The most common type of mortgage fraud involves a criminal obtaining a property, and then increasing its value through a series of sales and resales involving the fraudster and someone working in cooperation with them. A mortgage is then secured for the property based on the inflated price.

Below are some red flags to be aware of as potential lead-ins to fraud:

  • If someone offers you money to use your name and credit information to obtain a mortgage
  • If you are encouraged to include false information on a mortgage application
  • If you are asked to leave signature lines or other important areas of your mortgage application blank
  • If the seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
  • If the seller or developer rebates money on closing, and you don’t disclose this to your lending institution

Another fraud scheme to be aware of is title fraud. Title fraud is essentially a form of identity theft and is typically discovered when your mortgage mysteriously goes into default and the lender begins foreclosure proceedings.

With title fraud an individual, who is using false identification to pose as you, will register forged documents transferring your property to his/her name. From there, they register a forged discharge of your existing mortgage and get a new mortgage against your property. Then the fraudster makes off with the new home loan money without making mortgage payments. The bank thinks you are the one defaulting – and your economic downfall begins.

But don’t panic! There are lots of ways you can protect yourself from title fraud:

  • Always view the property you are purchasing in person
  • Check listings in the community where the property is located – compare features, size, and location to establish if the asking price seems reasonable
  • Make sure your representative is a licensed real estate agent
  • Beware of realtors or mortgage professionals with a financial interest in the transaction
  • Ask for a copy of the land title or go to a registry office and request a historical title search
  • In the offer to purchase, include the option to have the property appraised by a designated or accredited appraiser
  • Insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house or meth lab
  • Ask to see receipts for recent renovations
  • When you make a deposit, ensure your money is protected by being held “in trust”
  • Consider the purchase of title insurance. While title can be purchased after taking possession or years later, the best time to purchase a title insurance policy is NOW before an issue like fraud is discovered.

Remember, being proactive and vigilant is key to protecting yourself and your mortgage from fraud. If you suspect fraudulent activity, act promptly to mitigate potential damage and report it to the appropriate authorities such as the Canadian Anti-Fraud Centre.

Estate Planning: Are You Covered?

General Mark Goode 15 Feb

 

Looking at where you are now, and where you want to end up, do you personal goals include a review of your finances and estate? If it doesn’t, it certainly should be at the top of your list! Proper estate planning can ensure that you have a stress-free year knowing you are covered!

Is your will up-to-date?

The purpose of a will is to outline your assets and determine how they will be distributed, as well as who will be in charge of managing affairs. Some key components to include in this document are:

  • Up-to-date list of your significant assets; note the location if outside your province or outside Canada.
  • Who will inherit your assets? And which?
  • Outline of where you want assets to pass outside your estate to avoid probate fees (e.g., an insurance policy, an RRSP)? Do this via beneficiary designation.
    • If they are minors, do you have a trust or other provisions in place?
  • Is the list of beneficiaries in your will up to date? Have there been recent births, deaths or marriages in your family?
  • Have you included alternates in case your named beneficiaries predecease you?
  • Do you want to give to charities or other organizations?
  • If you have children, have you indicated a guardian and spoken to them?
    • Did you include an alternate in case the guardian you chose is unable to commit?
    • Have you reviewed your choice of guardian as your child grows older?
  • Your executor who will carry out your wishes after you die. You can name one executor or two or more co-executors. Be sure to name one or more alternates as well.

Have you assigned a power of attorney?

Another important (and often overlooked!) aspect of estate planning involves naming a power of attorney. This individual is someone you trust to make decisions for you should you become unable to do so due to injury or illness, whether temporary or otherwise. Power of attorney documents are created for you by a wills and estates lawyer (or notary in Quebec) as part of your estate plan. Be sure to get duplicate copies made for your POA(s) and to keep in your file. Ask friends and family for recommendations on a preferred estate lawyer.

Do you have mortgage protection insurance?

Through Manulife Mortgage Protection Plan (MPP), you have the opportunity to add a portable insurance policy to your mortgage that helps protect your loved ones and your home should something unexpected happen to you. Unlike bank insurance, MPP is a portable life and disability product that you can take with you, from lender to lender and property to property. This gives you the utmost future flexibility and is unlike bank insurance products which tie you down exclusively to them.  To ensure you get the best rate at renewal, you must have invested in an insurance product like MPP that will give you the freedom to move! At Mortgage Man DLC it is always offered as an option with your mortgage package.

Mortgage life insurance will protect your family’s future by paying out your mortgage should the mortgage holder pass away. Manulife will also make your mortgage payments while your claim is being adjudicated, so there is no added stress for a loved one at an already difficult time. Mortgage disability insurance will take care of your mortgage payments plus property taxes if you become disabled. Disabilities from sickness and accidents are relatively common and will affect 1 in 3 borrowers throughout their mortgage amortization.  Manulife provides budget-friendly payment options, the ability to top-up your coverage and so much more.

These are all important aspects to consider to ensure your estate and family will be provided for should something happen. While never a fun topic, it is an critical one and the better prepared you are, the better off your loved ones will be.

Contact our team today at Mortgage Man DLC, mark@markgoode.ca or 705.326.8523, for more information on our MPP package.

Understanding Amortization: Exploring Your Options for Loan Repayment

General Mark Goode 5 Feb

Your mortgage amortization period is the number of years it will take you to pay off your mortgage. Depending on your choice of amortization period, it will affect how quickly you become mortgage-free as well as how much interest you pay over the lifetime of your mortgage (a longer lifetime equals more interest, whereas a shorter lifetime equals less interest but also bigger payments).

Amortization Benchmarks
Let’s start by looking at the mortgage industry benchmark amortization period. This is typically a 25-year period and is the standard that is used by the majority of lenders when it comes to discussing mortgage products. It is also typically the basis for standard mortgage calculators. While this is the standard, it is not the only option when it comes to your mortgage amortization. Mortgage amortizations can be as short as 5 years and as long as 35 years!

Benefits of a Shorter Amortization
Opting for a shorter amortization period will result in paying less interest overall during the life of your mortgage. Choosing this amortization schedule means you will also become mortgage-free faster and have access to your home equity sooner! However, if you choose to pay off your mortgage over a shorter time frame, you will have higher payments per month. If your income is irregular, you are at the maximum end of your monthly budget or this is your first home, you may not benefit from a shorter amortization and having more cash flow tied up in your monthly mortgage payments.

Benefits of a Longer Amortization
When it comes to choosing a longer amortization period, there are still advantages. The first is that you have smaller monthly mortgage payments, which can make home ownership less daunting for first-time buyers as well as free up additional monthly cash flow for other bills or endeavors. A longer amortization also has its advantages when it comes to buying a home as choosing a longer amortization period can often get you into your dream home sooner, due to utilizing standard mortgage payments versus accelerated. In some cases, with your payments happening over a larger period, you may also qualify for a slightly higher value mortgage than a shorter amortization depending on your situation.

Let’s Chat!
Our team of mortgage professionals are happy to help with the decision for the amortization that best suits your unique requirements and ensures you have adequate cash flow. However, it is important to mention that you are not stuck with the amortization schedule you choose at the time you get your mortgage. You can shorten or lengthen your amortization, as well as consider making extra payments on your mortgage (if you set up pre-payment options), at a later date.

Ideally, you are re-evaluating your mortgage at renewal time (every 3, 5, or 10 years depending on your mortgage product). During renewal is a great time to review your amortization and payment schedules or make changes if they are no longer working for you.

If you have any questions or are looking to get started on purchasing a home, don’t hesitate to reach out to us at Mortgage Man DLC today 705.326.8523, mark@markgoode.ca

Unlocking Financial Opportunities: The Remarkable Benefits of Mortgage Renewal You May Not Know About

General Mark Goode 15 Jan

 

Is your mortgage coming up for renewal? This is the best opportunity to reassess the terms of your existing mortgage and make adjustments based on current marketing conditions and your financial situation. We have included some details on how to make your mortgage renewal work for you in 2024.

Time to Get a Better Rate

When you receive notice that your mortgage is coming up for renewal, it is the best time to shop around for a more favourable interest rate. Renewal time, is the easiest time to shop around or switch lenders for a preferable interest rate as it doesn’t break your mortgage. With interest rates expected to come down as we continue to move through 2024, it is an excellent time to reach our to our Mortgage Man DLC team to shop the market which could help save you money!

Change Your Mortgage Product

Are you happy with your existing mortgage product? If you answered no, now is the perfect time to find a product that best suits your current financial situation and future goals. Perhaps you are finding that your variable-rate or adjustable-rate mortgages are fluctuating too much and you want to lock in, or, maybe you want to switch to a variable as interest rates begin to level out. At this time, you can also take advantage of a different payment or amortization schedule to help pay off your mortgage quicker or better align your mortgage with your cash flow.

Renew with Existing Lender or Find a New Lender?

Many borrowers simply renew their mortgage with their current lender, but this is an excellent time to contact our Mortgage Man DLC team to explore offers from other lenders that better suit your needs. There are many benefits to using a mortgage professional.

Do You Need to Consolidate Debt or Start a Home Renovation?

Renewal time is also a great time to look at your existing debit and determine whether or not you want to consolidate it into your mortgage. You may have high interest credit card debit following this holiday season, a vehicle loan, education etc. Regardless of the type of debit, consolidating into your mortgage allows for one easy payment instead of juggling multiple loans and varying high interest rates. In most cases, your mortgage interest rate is less than you would be charged with credit card companies.

If you have been considering a home renovation, renewal time is the best opportunity for you to utilize some of your home equity to build that dream kitchen, finish the basement, update that dated bathroom or utilize it to purchase a vacation property!

Get expert advice from our licensed mortgage agents today, we’d be happy to discuss your situation and review changes that would be beneficial for you to reach your goals; from shopping for new rates or utilizing that home equity, we’ve got a mortgage solution tailored to you! Contact Mortgage Man DLC today to book an appointment 705.326.8523.

Rate Hikes Definitely Off The Table

General Mark Goode 5 Sep

The Canadian economy weakened surprisingly more in the second quarter than the market and the Bank of Canada expected. Real GDP edged downward by a 0.2% annual rate in Q2. The consensus was looking for a 1.2% rise. The modest decline followed a downwardly revised 2.6% growth pace in Q1. (Originally, Q1 growth was posted at 3.1%.) According to the latest monthly data, growth dipped by 0.2% in June, and the advance estimate for economic growth in July was essentially unchanged. This implies that the third quarter got off to a weak start.

The Bank of Canada forecasted growth of 1.5% in Q2 and Q3 in its latest Monetary Policy Report released in July. The central bank is now justified in pausing interest rate hikes when it meets again on September 6th. Today’s report is consistent with the recent rise in unemployment. It suggests that excess demand is diminishing, even when accounting for such special dampening factors as the expansive wildfires and the BC port strike.

Some details of Q2 Growth

Housing investment fell 2.1% in Q2, the fifth consecutive quarterly decline, led by a sharp drop in new construction and renovations. No surprise, given the higher borrowing costs and lower demand for mortgage funds, as the BoC raised the overnight rate to 4.75% in Q2. Despite higher mortgage rates, home resale activity rose in Q2, posting the first increase since the last quarter of 2021.

Significantly, the growth in consumer spending slowed appreciably in Q2 and was revised downward in Q1.

So what is the Bottom Line?

The weakness in today’s data release may be a harbinger of the peak in interest rates. Inflation is still an issue, but the 5% policy rate should be high enough to return inflation to its 2% target in the next year or so. As annual mortgage renewals peak in 2026, the increase in monthly payments will further slow economic activity and break the back of inflation.

The Bank of Canada will be slow to ease monetary policy, cutting rates only gradually–likely beginning in the middle of next year. In the meantime, the central bank will continue to assert its determination to do whatever it takes to achieve sustained disinflationary forces.

Today’s release of the US jobs report for August supports the view that the Canadian overnight rate has peaked at 5%. (The Canadian jobs report is due next Friday). Though the headline number of job gains in the US came in at a higher-than-expected 187,000, the unemployment rate rose to 3.8% as labour force participation picked up, growth in hourly wages was modest, and job gains in June and July were revised downward.

In Canada, 5-year bond yields have fallen to 3.83%, well below their recent peak shown in the chart below.

 

 

 

 

 

 

 

Source: Dr. Sherry Cooper – Chief Economist, Dominion Lending Centres.

Using the CHIP Reverse Mortgage to Supplement your RRIF

General Mark Goode 1 Aug

As you near retirement age, the years of diligently contributing to RRSPs are about to pay off. Understanding Registered Retirement Income Funds (RRIFs) becomes crucial, especially if you have registered retirement savings or pension plans.

What exactly is a RRIF?

Unlike a Registered Retirement Savings Plan (RRSP), which serves as a retirement savings account where you contribute money, a RRIF allows you to take out a certain amount each year once you reach a certain age.

Now, let’s explore how a RRIF works.

When you turn 71, the money you’ve saved and invested in your RRSP accounts must be moved into a RRIF, an annuity, or withdrawn as a lump sum. If your spouse is younger, you can delay this until their 71st birthday.

So, what’s the advantage to convert to a RRIF?

A RRIF acts as a tax-deferred retirement income fund, which means any interest or earnings generated within the account won’t be taxed until you withdraw them. However, when you take money out of your RRIF, it becomes taxable income. Each year, you must withdraw a minimum amount from the RRIF.

If you need funds before reaching 71, you can convert your RRSP into a RRIF and start withdrawing money immediately. However, there are some important tax considerations to be aware of:

  1. Taxes on Withdrawals: The amounts you withdraw will be taxed, but the tax will be based on the minimum required withdrawal and any additional amount you take out.
  2. Minimum Withdrawal: Once your RRSP is converted into a RRIF, you must withdraw a minimum amount each year, determined by the government and based on age. For instance, at 64 years old, you must withdraw 4% of your total investments; at 71, it increases to 5.28%, and at 85, it goes up to 8.51%.
  3. Withholding Tax: A withholding tax will apply if you withdraw more than the minimum required amount. The withholding tax rates are 10% for amounts up to $5,000, 20% for between $5,000 and $15,000, and 30% for payments over $15,000.

What if I don’t have enough in my RRIF to generate sufficient retirement income or if I outlive my RRIF?: The CHIP Reverse Mortgage is an Excellent Option

The CHIP Reverse Mortgage allows you to access tax-free cash from the equity you’ve accumulated in your home. Using this money as retirement income allows you to preserve your investments for an extended period while enjoying an improved cash flow. Also, there are no monthly mortgage payments with the CHIP Reverse Mortgage, helping you increase your monthly cash flow even more.

At Mortgage Man DLC, we offer a CHIP Reverse Mortgage by HomeEquity Bank. Contact our licensed mortgage agents to assist you with obtaining a CHIP Reverse Mortgage today.

 

Source: Our House Dominion Lending Centres https://dominionlending.ca/sponsored/using-the-chip-reverse-mortgage-to-supplement-your-rrif

 

Get Top Market Value for Your Property

General Mark Goode 11 Jul

Appraisal Tips for Success

Before banks or lending institutions can consider loaning money for a property, they need to know the current market value of that property.

The job of an appraiser is to check the general condition of your home and determine a comparable market value based on other homes in your area. This is required for any buy or sell situation.

To help make the appraisal as smooth as possible and ensure you are getting top market value, check out the tips below:

  1. Clean Up: The appraiser is basing the value of your property on how good it looks. A good rule of thumb is to treat the appraisal like an open house! Stage it as you would a home for sale, clean and declutter every room, vacuum, and scrub – even consider adding a fresh coat of paint – to ensure your home is as presentable and appealing as possible. Where applicable remove personal stigma items such as alcohol or drug paraphernalia, any controversial pictures or flags, etc.
  2. Curb Appeal: First impressions can have a huge impact when it comes to an appraisal. Spending some time ensuring the outside of your property from your driveway entrance to front step is clean and welcoming can make a world of difference. Cut grass, water plants, maybe add flowers or hanging baskets to make things feel inviting and stage the yard with some lawn furniture to make it look like its own space.
  3. Visibility: The appraiser must be able to see every room of the home, no exceptions. YES, every single room including outbuildings, garage, closets, basement… Refusal to allow an appraiser to see any room can cause issues and potentially kill your deal. If there are any issues with any spaces of your home, be sure to take care of them in advance to allow the appraiser full access.
    NOTE: If there are tenants in your home, ensure you give them appropriate amount of notice for access.
  4. Upgrades and Features: Ensuring the appraiser is aware of any upgrades and features can go a long way. Make a list and include everything from plumbing and electrical to new floors, new appliances, etc. This way they have a reference as to what has been updated and how recent or professional that work was done. Knowing the age of the roof and HVAC items like water tank is important. Also, ensure the breaker box is MIN 100amps as most lenders cannot finance a home with amps under 100; older homes from the 1930 area are generally only 60amps. The same goes for knob and tube versus breaker set-ups. Upgrading is important and will add value.
  5. Be Prudent About Upgrades: While the bathroom and kitchen are popular areas, they are not necessarily the be-all-end-all for getting a higher home value. These renovations can be quite costly so it is a good idea to be prudent about how you spend your money and instead, focus on easy changes such as new paint, new light fixtures or plumbing and updated flooring to avoid breaking the bank while still having your home look fresh. Removing clutter, adding a new coat of paint and doing a deep clean will help make these spaces shine.
  6. Know Your Neighbourhood: You already know where you live better than the appraiser. Taking a look at similar homes in your neighbourhood and noting what they sold for will give you a ballpark. If your appraisal comes in low, you will be prepared to discuss with the appraiser the examples from your area and why you believe you property is worth more. In addition, keep in mind that appraisal values are based on recent sales data; if there have been zero sales in the area recently and time allows it, hold off on getting an appraisal done until some sales have been evident to ensure you’re getting the most value.
  7. Be Polite: The appraiser is there to get in and get out so let them have the run of the house while they are there. Do not follow them around and avoid asking them too many questions or making too many comments and simply be prepared should they have questions. Once they have completed the review of your home, that is a good time to bring up any comments you might have. Remember, the actual onsite inspection usually is only 15 minutes through the house but typically, the bulk of work for appraisals is at the desk, reviewing sales and other forms of research to create the appraisal report.
  8. Know The Costs: Every appraiser charges differently. If the lender allows for ordering appraisals direct, then I can shop around and fetch you the best price.

Don’t forget to contact our team at Mortgage Man DLC if you have any questions about your existing home or mortgage, or if you are looking to sell and relocate in the future!
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