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Winterize your home and prevent future repair costs

October 31, 2022 By Stan Savov

With the changing of the seasons, it can be a good time to take stock of your home and ensure you are ready for the colder weather.

Winterizing your home will help you feel more comfortable, save on bills and prevent future repair costs, there are some simple things you can do to prepare for the coming season.

Tending to minor problems yourself, or booking a professional now, will save you time and aggravation later when poor weather makes it harder to tackle home maintenance jobs.

- - Service Your Heat Source: Before Winter starts, be sure to have a professional check and clean your heat sources. You should have your chimney cleaned out if using wood heat or make sure to update your oil heater’s filters and service gas furnaces regularly.
  - Check Your Pipes: Checking pipe joints for leaks that could cause rot and damage will save you trouble in the future. Repair any cracks you find, especially those around electrical outlets and alarm system lines. You can also consider foam pipe insulation, which is fairly easy to install and could help prevent energy loss and potential water damage from frozen pipes.
  - Mind the Gaps: Search exterior window frames, doors, and siding for cracks and gaps where water could get in. Doors and windows commonly have gaps that let cold in and heat out. Some will be easy to fill or fix yourself but could save you money and damage down the line!
  - Insulation is Key! On a snowy day go outside and look at your roof; you should see snow on the roof. If you can see your roof that means the attic is not insulated well and heat is escaping and melting the snow. If this is the case, you will want to have it repaired and packed to ensure you are not losing excess heat during the winter months.
  - Create a Storm Kit: A storm kit is a handy source of essential items in the event of losing power. Consider what you and your family might need, such as a flashlight with new batteries, candles, matches, a portable radio, water and snacks. Keep your kit somewhere easy to access!

Don’t Be House Poor – Manage Your House Expenses

October 31, 2022 By Stan Savov

How to Efficiently Manage Home Expenses

Having the biggest and best home on the block sounds great – but not if it is at the expense of your life and monthly finances!

Be smart about your budget and avoid buying a home at the very top of your pre-approval value, which might lead to cash flow issues and being “house poor” down the line.

When it comes to your home, it is more than just your purchase price and mortgage cost. While you might be able to afford to buy a $800,000 home, can you also afford the maintenance, property taxes, utilities and more?

When it comes to your home expenses and overall monthly budget, the goal is that the costs to maintain your home do not exceed 35% of your total monthly income.

Monthly Budget

To help you keep track of your finances, consider breaking up your monthly budget into the following categories:

- - Housing – mortgage payments, property taxes, utilities, etc.
  - Transit – car payments or transit passes, gas, maintenance, etc.
  - Debt – payments to credit cards, lines of credit, etc.
  - Savings – your long-term savings for retirement, etc.
  - Life – food, vacations, fun, medical, childcare, etc.

From there, you would want to look at how much you spend on each category. The below is a good rule of thumb:

- - Housing – 35% of your monthly income
  - Transit – 15% of your monthly income.
  - Debt – 15% of your monthly income
  - Savings – 10% of your monthly income
  - Life – 25% of your monthly income

By spending too much on housing, you are forced to sacrifice in other areas of spending such as your life or savings,
but it is better to be life RICH than house POOR.

If you’re not sure what you should budget for your new home, or have questions about making your home costs more affordable (such as changing your mortgage payments), please don’t hesitate to reach out to me today!

Dreaming of Your Very Own Vacation Home

October 27, 2022 By Stan Savov

If you are dreaming of your very own vacation home, there are ways to make it happen! Let me walk you through your options.

When it comes to taking on a vacation property, you will need to have a minimum down payment of 5% of the purchase price. If you are purchasing a non-winterized vacation home, or will not have year-round access, then you will be required to put down 10%.

You must also have sufficient credit score to qualify if not putting 20% down. In addition to the down payment, you will also need to pass the stress-test and prove that you can financially carry the mortgage of your existing live-in home and your new vacation home. For more information on spending your winters in Florida click here below.

>>Mortgage and consulting services for snowbirds and Canadian investors.

Refinancing

When purchasing a vacation home or property, most lenders will allow you to borrow money against the equity you have in your current home and use it as a down payment for a second home. This is called mortgage refinancing. Mortgage refinancing means getting a re-evaluation on your home and then redoing your mortgage based on the current value. This will allow you to tap into the equity your home has built over the years, and pull out the extra funds for a down payment on your secondary property. Keep in mind, when using some of your current equity, it will increase the principal amount and the interest payments on your mortgage as the mortgage is now refinanced at a higher amount.

Home Equity Line of Credit

Another option to unlock your home equity is through a line of credit or a HELOC (Home Equity Line of Credit). This option allows you to borrow money using the equity in your property, with the property as collateral. A HELOC serves as a revolving line of credit to allow the borrower to access funds, as needed, letting you utilize as much (or as little) equity as required. In Canada, you are able to borrow up to 65% of your home’s value using this method. Keep in mind, your HELOC balance AND current outstanding mortgage cannot exceed 80% of your home’s value when added together.

If you are ready to purchase a vacation property, I would love to help review your financial situation! I would be happy to take a look at your current mortgage, equity and review your options to help you find the best fit. The keys to success are right around the corner with a little bit of expert advice.

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Tips for Selling in Today’s Real Estate Market

October 22, 2022 By Stan Savov

The housing market continues to favor sellers as we move into the summer months. If you’re thinking of selling, this is a great time to do so! Not only will your home likely be listed on the market for a shorter period of time, but most sellers are currently receiving multiple offers on their sale. This is due to the increasingly high demand for housing with limited homes currently available on the market.

However, even in a seller’s market, there are some things you can do to help improve your chances of selling your home and getting the best offer! Here are some tips for selling your home in a seller’s market:

List Your Home on a Friday

Depending on the location, Friday is typically the best day of the week to put your home up for sale. Most individuals have weekends free or can take Friday’s off early should they be interested in a home for sale! Be sure to include multiple photos of the home in your listing, or even a virtual tour video if possible, to get your listing off on the right foot.

Offer Limiting Showings

Another good strategy for maximizing your offers in a seller’s market is to limit your showings. Restricting the hours and days that you show your home will allow you to have multiple buyers touring at the same time, which tends to create quiet competition as the buyers know other individuals are interested.

Lower the Sale Price

While not always necessary, lowering the sale price can make your home even more attractive to potential buyers. If you get multiple buyers interested, it will leave some wiggle room for buyers to bid over the asking price.

Make the Most of a Bidding War

If you do end up with a bidding war on your home, you will want to make the most of it. Firstly, always inform buyers of the competition and encourage stronger offers. Secondly, respond to one offer with a counteroffer and set the others aside until you get a response. Thirdly, accept the best offer.

However! Keep in mind that the highest offer might not always be the best one. Some things to keep an eye out for that are conducive of a ‘strong’ offer include: a cash offer, a large down payment, few to no conditions and a flexible moving date.

If you’re looking to sell this year, make sure you utilize a top realtor who can help you navigate the current market settings so that you get the most out of your home! And don’t forget to reach out to your mortgage professional for all the information around moving and how that affects your mortgage.

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