Open House- The Real Estate & Mortgage Show: May 5, 2018
Host Steve Gregory is joined by Barb Kramer of Mortgage Brokers Ottawa and Lisa Boutilier of Paul Rushforth Real Estate on this week’s episode discussing the current Ottawa real estate market, the move in fixed mortgage rates, reverse mortgages and more!
Host Steve Gregory is joined by Barb Kramer of Mortgage Brokers Ottawa and Lisa Boutilier of Paul Rushforth Real Estate on this week’s edition discussing the current Ottawa real estate market, the move in fixed mortgage rates, reverse mortgages and more!
There are currently 6500 listings on the market consisting of 5200 which are freehold, the remainder being condos. Multiple offers are around 22% of the home sales mostly found in the $400-500K price range.
Fixed rates made an upward move this week while variable has maintained strong discounted levels. Barb explains that the rise in posted rates with home bank affects penalty calculations and increases the high-ratio qualifying rates with big banks. A quick reminder that low ratio mortgages qualify based on 2% above your mortgage contract rate or the qualifying rate, whichever is higher.
The team talks to Wendy Mason of HomEquity bank about reverse mortgages. Starting at age 55, a home owner can start unlocking some of equity in their home. This can be done as a lump sum payment or in combination with monthly draws. The limit of the amount available for use increases as the age of the borrowers increase. Most often, this can be used in conjunction with a retirement strategy or can be used to take out the equity to assist children in purchasing a home. Borrowers always maintain the ownership to their home. No payments need to be made on borrowed amounts until you sell the some, although you are able to if decided as interest does accrue in this time frame.
The team reminds listeners that if you are pre-approved for a certain amount and are looking at homes right at that limit, you may have to be prepared to pay more for the home. When it comes to the difference between the value and the price, buyers are required to come up with the additional funds.
The team tackles the question of whether to buy first and sell afterwards or vice versa. Depending on the location of your home, some markets are moving more quickly than others. A contingency plan is important if you sell your home and can’t find anything to buy, considering storage and short term rental fees, this can be relatively expensive. If you look to buy before you sell, you may have to qualify to carry both homes.