Slow Debt Growth the Easy Way

Great artice in BorrowBetter :

With so much focus on the attempts of Finance Minister Flaherty and Bank of Canada governor Mark Carney to manipulate lending policies and rates, the easiest way to slow the growth of personal homeowner debt has been ignored. Higher equity requirements (either as a downpayment on a purchase, or equity in a refinance) would immediately reduce a homeowner’s liability exposure and carrying costs, and correspondingly reduce banks’ loan loss exposure.

The concept is not without risk, of course, in that it could dramatically cool the real estate market – borrowers would qualify for less expensive homes, might put off purchases until they can save the higher downpayment, or have to delay renovations or construction because they don’t have room to refinance their property. A blanket increase (from a minimum 5% downpayment to 10%) may therefore be too extreme, but a tiered one based on home price or lender qualification would work far better than the current efforts around rate or policy manipulations

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Midtown Moving up in Prestige and Amenities

Great artice in www.TheStar.com

Peter Freed admits it wasn’t easy assembling the 20 properties required for the development of 155 Redpath, a new condo near Yonge and Eglinton that marks the King West developer’s first foray into midtown Toronto.

“It was a long, interesting process dealing with 20 different property owners and vendors, and we had lots of fun along the way,” Freed said with a hint of sarcasm during a recent roundtable discussion on the project, prompting chuckles from his development partners Todd Cowan and Jordan Dermer, principals of CD Capital.

The 36-storey tower with 470 units will be built on the southeast corner of Redpath and Roehampton Aves. Condos range from 396-square-foot studios to 800-square-foot two-bedroom suites. Prices start in the mid $200,000s and the project goes on sale this spring.

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Buyers-Are you Waiting for the Market to Correct?

Great artice by George Christopoulos from the Mortgage Centre:

There are a group of future buyers out there
that are sitting on the sidelines waiting for the rumoured price correction in
the Toronto real estate market to occur before they will put pen to paper and
buy their dream home. Are they making the right decision? Maybe, but maybe
not.

One thing that is probably fairly certain is
that a dramatic increase in mortgage interest rates would cause a decrease in
home prices. Why? Because buyers DO NOT buy a home for $650,000 (although they
think they do), they buy a home for $2,875 a month for their mortgage, taxes,
utilities and insurance, which is what they really pay to live there.

So let’s do the math. A $650,000 purchase price
with 20% down and a 5 year fixed rate mortgage at 2.99% with a 30 year
amortization will cost about $2,184 per month principal and interest.

If mortgage rates go up to 4.5% and this causes
a reduction in prices by 10%, your $650,000 home will now be $585,000 and with a
20% down payment and a 5 year fixed rate mortgage at 4.5% and a 30 year
amortization, the monthly payment will be about $2,359 per month.

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Avoid These 8 Common Tax Filing Mistakes

Great artice in www.TheStar.com

This tax year marks the 50th since Canada underwent a major tax reform in 1962. Despite all the technological wizardry since then, your responsibility has not changed: It’s up to you to file a return on time every year.

But that’s tough to do when there are two moving targets: Changing tax law and your changing life events. Canadians love their tax refunds, but hate rounding up the paperwork to do the return. That’s where common tax filing errors really begin.

 I have answered thousands of tax questions on open line shows and online forums and here are the common filing mistakes I’d like to share.

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Who Gets the Family Home When a Marriage Breaks Down?

Great artice in www.TheStar.com

Without a marriage contract, most assets accumulated by a couple will be divided 50-50 on separation. But in order to minimize the impact of divorce on a family, in many cases one spouse stays in the house with the children while the other spouse leaves.

Here are some questions about this issue from readers:

How is the matrimonial home valued vs. a family business?

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca