Here are the new rules:

1. Mortgage amortization periods will be reduced from 35 years to 30 years.
2. The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90% to 85% of the value of their homes.
3. The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.

Its obvious, BOC wants to curb borrowing habits while maintaining historically low interest rates. If this is not done then whatever recovery Canada made over the past 2 years will be washed out if people continue to be irresponsible.

Sellers will continue to seek the service of REALTOR’s with full service to get maximum benefit from their biggest financial decision. 90 per cent of resale housing transactions in the country happens with the help of REALTOR’s. Down south in the US, such a law already exists and still the trend there is towards full service. This proves that most people believe in the established process, believe in the skill and expertise required to buy and sell real estate. Its just not a matter of a “mere posting on the mls” that gets a property sold. As well, its the rigorous training and the ongoing education that keeps a Realtor inline with the latest trends and practices.

REALTOR’s [members of organized real estate] have an obligation to act in accordance with the REALTOR® Code. This Code outlines the accepted standard of conduct for all real estate practitioners who are members of a real estate Board or a Provincial Association.Thereby protecting the rights of Buyers and Sellers.

Click on the video below and find out what is involved when you hire a REALTOR® to protect your lifetime investments.

Critical Role of a Real Estate Agent

Here is a very clear and straight forward article by Former TD Bank chief economist Don Drummond titled “5 big trends that will affect your finances“. He points at the high debt ratio, lack of pension planning, expensive education, compressed earning life and the cooling housing market as serious issues that need to be watched and addressed.

I will quote his last point which has lot of substance: “Current economic and market conditions may continue to turn Canadians away from saving. After all, how appealing is it to save and invest when rates of return are likely to be modest? But Canadians are going to have to get used to this. The savings must be done. Now is the time to start.”

The 2010 RE/MAX Recreational Property Report, highlighting sales, prices, trends and developments in close to 50 markets from coast-to-coast, found that 79 per cent of recreational areas reported an upswing in the number of properties sold during the first three months of the year. Starting prices for recreational product were also on the move, with 43 per cent posting a nominal increase. Inventory levels, with the exception of the coveted entry-level price point, were healthy and balanced market conditions prevailed in most areas.

While sales have been strong out of the gate, the number of waterfront cottages, condominiums, and back lot properties sold in the first quarter still fall short of pre-recession levels. However, with peak season fast approaching, stimuli such as softer values, greater selection, and relatively low interest rates may prove difficult for recreational property buyers to resist.

Similar conditions existed in residential housing markets across the country last spring, setting the stage for heated second, third, and fourth quarters of 2009. Affordability was top of mind then, as it is now, with many prospective purchasers cautiously venturing into the market.

Stronger than expected economic recovery, combined with additional incentives such as rising interest rates, stricter lending criteria, and a new sales tax, have served to kick-start activity in recreational property markets from coast-to-coast. Entry-level product is experiencing the greatest demand this year, as value-driven purchasers look to stretch their dollar as far as it will go. This is especially true in Western Canada, where values have softened considerably year-over-year, but are now starting to firm up.

The rebound in stock portfolios and greater stability in personal finances has added fuel to the fire. Baby boomers and Generation X – aged 35 to 55 years – are working in tandem as a result, snapping up modest properties located on prime waterfront. Despite the upward pressure on starting prices, the RE/MAX Report found that one in every four recreational property markets still offers winterized, waterfront product priced below $250,000.

The most affordable starting prices were found in: Newfoundland Coast, NL ($105,000), Shediac Bay ($230,000), and South Shore/North Shore, NS ($230,000 to $240,000) in Atlantic Canada; The Laurentians ($175,000) in Quebec; Prince Edward County ($200,000 – $250,000), Elliot Lake ($215,000), Parry Sound ($219,900), East Kawarthas ($225,000), and Bancroft ($235,000) in Ontario; and South Central Cariboo ($180,000), Lake Winnipeg ($250,000), Canmore ($270,000) and Ucluelet ($499,000 for oceanfront) in Western Canada.

Opportunities exist for savvy purchasers across the country at virtually every price point. Recreational property buyers in the mid-to-top end have a definite edge in the market, with greater purchasing power than in years past. Those in the lower end will find that there are more waterfront options available than ever before.
Highlights:

• Of the markets that experienced an increase in starting prices, half were value-priced, with winterized waterfront product available under $350,000. The remainder was typically comprised of prime, sought-after markets favoured among purchasers such as the Georgian Bay and Lake Simcoe areas and the Muskoka Region.

• The most expensive recreational property markets included: Sylvan Lake, AB ($1.2 million); Vernon, BC in the North Okanagan ($1.15 million); Tofino, BC ($875,000); Cultus Lake/Harrison Lake, BC in the Fraser Valley ($800,000); Whistler, BC ($799,000) and Salt Spring Island, BC ($750,000).

• Americans have virtually fallen off the map in Canadian recreational properties. Only Shediac Bay, where recreational property values are a fraction of those in the US, continues to draw eager purchasers from the eastern seaboard of the United States.

• Bargain-priced properties in the Southern United States are still having an impact on Canadian recreational property markets, drawing some purchasers south of the border to areas such as California, Arizona, Nevada and Florida.

• Pent-up demand will continue to prop up recreational property sales in markets from coast to coast this season, as buyers who sat on the sidelines in 2008 and 2009, finally enter the market, spurred on by better prices, good affordability, and economic recovery.

?The results of the survey are proof positive that our sales associates are the best in the business,? says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. ?We?ve built a solid reputation based on consistent results. RE/MAX associates sell one in every three homes in Canada and carry more professional designations than any other realtor in Canada. We?re specialists in all niches from residential, recreational, and commercial properties to luxury homes. Our focus has always been service excellence, which includes a serious emphasis on professional development and education. The status quo may work for some, but after almost 40 years in the business, we?re not content to rest on our laurels. ?

Reader?s Digest looked at 28 different product categories — ranging from cereal to residential real estate – and allowed consumers to select the brands that they trusted the most. RE/MAX joins leading brands such as RBC Royal Bank, TD Canada Trust, Air Canada, and Blackberry.

?Our commitment to the communities in which we live and work also runs deep,? says Polzler. ?I think that?s something that has always set RE/MAX apart. We?ve been involved in charitable giving long before the terms ?corporate philanthropy? and ?cause marketing? were common. RE/MAX realtors participate in countless vital programs and causes each year that help the most vulnerable members of our society and strengthen the foundation of neigbhourhoods from coast to coast. Their enthusiasm, spirit and dedication to others never fails to inspire.?

Charitable giving is woven into the fabric of the RE/MAX organization. The company and its sales force has demonstrated a strong desire to give back, exceptionally active in both corporate and local charities. Close to $40 million has been raised in support of Children?s Miracle Network since 1992 – which funds research and development, outreach programs and upgrades to equipment and facilities at children?s hospitals and foundations across the country. The Canadian Breast Cancer Foundation is also a cause close to the hearts of RE/MAX associates—one that RE/MAX continues to support through its popular Sold on a Cure Program and the annual Yard Sale for the Cure.

RE/MAX is Canada?s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries. Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience, and production, while providing real estate services in residential, commercial, referral, and asset management.

1. Buyers must qualify for a fixed 5 year rate, they can opt for a variable rate. Currently mortgage qualifications are on a fixed 3 year term.
2. Refinancing limit of 90%. This is excellent as it will force home owners to retain[at least] some equity in their homes.
3. Purchase of a property other than for personal use will need a 20% down payment. Not the current minimum of 5%.

On the whole these new laws are good for the long haul. Home buyers must be aware of the fact that eventually the interest rates will go up.

Having said that, now is a great time to sell your property and get max value out of it. Don’t hesitate to call me for any of your buying, selling or investment needs. I can be reached at 416-830 7200.

Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada. In fact, an in-depth analysis by RE/MAX of 63 districts within the Toronto Real Estate Board found that detached housing values in 27 per cent of districts remained slightly off 2008 levels, while 57 per cent reported price appreciation of less than five per cent in 2009. Sixteen per cent of districts recorded an increase in average price in excess of five per cent. No double?digit gains were noted.

“There is simply no evidence of a housing bubble,” says Michael Polzler, Executive Vice President, RE/MAX Ontario?Atlantic Canada. “While sales were up considerably over one year ago—and supply was tight in many of the city’s hot pocket areas—the expected surge in average price did not occur. Buyers remained cautious in their pursuit of homeownership—with most unwilling to overpay for the privilege.”

While one quarter of all TREB districts saw prices in the detached housing category soften in 2009, just over half declined by less than two per cent. Those that saw prices fall by more than two per cent were primarily upper-end neighbourhoods—the vast majority located in the central core—which were slower to rebound once the market regained momentum. By yearend, however, sales in all of these areas posted double?digit growth—a fact that clearly indicates a greater number of transactions at the lower end of the price spectrum. Inventory may have also played a role as sellers held off listing their luxury properties until market conditions improved.

Leading the GTA in terms of price appreciation was South Pickering (E12) where the average has risen 9.4 per cent to $358,493; Malvern, Hillside, Rouge (E11) takes second place with a 7.3 per cent upswing to $368,095; North Pickering (E13) was ranked third with values climbing 7.2 per cent to $396,973; fourth spot goes to Port Credit (W12) in Mississauga where values have climbed seven per cent to $614,144; and rounding out the top five ?? the lone downtown Toronto district ??was Riverdale, Leslieville (E01) where prices escalated 6.7 per cent to $522,017. Ballantrae, Cedar Valley (N13) ranked sixth with a reported 6.4 per cent increase to $662,268. In seventh place is Richmond Hill – North End (N05) with a 6.3 per cent increase in average price to $574,642. The Applewood, Rathwood neigbhourhoods (W14) in Mississauga ranked eighth in terms of price appreciation, rising 6.1 per cent to $505,994, while Markham (N10) claimed ninth spot with a 5.3 per cent escalation in detached housing values, bringing the average to $510,268. Bathurst Manor, Armour Heights (C06) in the city’s north end secured tenth place with a 5.1 per cent upswing in average price to $597,025.

The East clearly dominated the top five and affordability factored in heavily, with single detached homes in both Pickering districts and Malvern, Hillside, Rouge, priced under $400,000. Young families – most buying their first home – were attracted to communities like Riverdale and up-and-coming Leslieville, while move?up buyers looked to Port Credit, which has steadily increased in popularity in recent years.

“First-time buyers were a driving force throughout much of the year, but their role was most noticeable in early 2009,” says Polzler. “Almost one in every two homes sold was priced under $400,000 in the first quarter of the year. An entirely different picture emerged in the final quarter when just one-third of homes moved under the $400,000 price point.” As the move-up segment swelled, so too did demand for more upscale properties across the board. Yet, despite the upswing, average price registered only a small percentage increase. In the central core, for example, where the average price ranges from $572,529 in Don Mills to as high as $1,717,190 in Rosedale, overall values rose one per cent to $919,838, compared to 2008. Unit sales in C?district jumped 31 per cent to close to 4,000 units.

The number of homes sold in the city’s north end saw the greatest percentage increase at 32 per cent to 8,843 units. Average price in North district, which ranges from $398,864 in Newmarket to $700,499 in King City, rose two per cent overall to $555,616. Housing sales climbed in the west, where values range from $298,136 in Brampton to $790,060 in the Kingsway, by close to 19 per cent to 12,453 units. West district’s average price rose a nominal 1.5 per cent to $467,227. The increase in sales was more moderate in the East End (including Scarborough and Pickering, Ajax), where values range from $325,393 in Bendale, Woburn to $691,128 in the Beach. The number of detached homes sold increased 15 per cent year over year to 6,690. Average price in East Toronto rose 2.6 per cent overall to $400,813.

“After a dismal start, the stats confirm that 2009 returned to the healthy, upward trajectory that we have followed for much of the last decade,” says Polzler. “We see detached homes continuing on that course in 2010, with moderate gains expected. The detached housing category continues to be a solid gauge of the market’s overall performance, accounting for approximately half of the activity in GTA.”

RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently?owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.

federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).

• The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
• HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing

• Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
• The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

More Detail

Additional detail on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222.