| Laura Burt |
| Professional Mortgage Planner |
September Mortgage News
On Tuesday, the Bank of Canada announced another .25% rise in the prime interest rate, now making it 3%. Many analysts feel that this increase may be a little premature as the housing market is struggling and the economic recovery slower than initially thought. We have, however, seen the mortgage rates swiftly decrease back to where they were in 2009, as it became obvious to lenders that their over 1% increase earlier this year, dramatically slowed the sales market.
New housing starts and sales have seen a decline over the last few months. We are also seeing house prices drop as the inventory continues to rise. Hopefully with summer over and kids back to school, we will see the ever common fall pickup in sales.
Current Rates:
5 year fixed rate: 3.60% Down from 3.89%
3 year fixed rate: 3.45% Down from 3.50%
3 year closed variable rate: Prime -.70% Unchanged
Home Planning Tips:
I recently attended a broker meeting where we met with a housing appraiser. During the meeting, we learned the many things that an appraiser looks for when evaluating the price of your home. Although there are many things that will increase the value of your home, you can sometimes spend money that does not add much value at all.
One of the largest out of pocket expenses would be your landscaping. Having a nice yard will increase the value slightly over a yard that is bare, however, if you add expensive items such as stone patios, water features, sheds, etc. you will not see a dramatic increase to the value over a home with basic sod and fencing. Although they do not add a substantial financial value, these features will add value in the appeal to a purchaser, perhaps resulting in a quicker sale.
The most popular items in homes today that do add value in price "and" in sales appeal are; Granite, Air Conditioning and Hardwood Flooring.
These are just a few pointers when deciding how much money to spend on your home. If you plan on staying in your home for a long period of time, these items will be worth their costs as it is what you will enjoy living with. If you spend money adding features that will not be of great value and plan to sell in a few years, you may not recoup your out of pocket expenses.
Contact Information |
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Calgary: |
403.681.9099 |
Toll Free: |
1.877.875.1946 |
Fax: |
403.457.1548 |
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