MORTGAGE SOLUTIONS

Depending on your respective housing market, sometimes all a home needs to sell quickly - and at a good price - is a bit of a facelift.  Unfortunately, most of us don't have unlimited resources to play with, which is why it's important to approach any renovation strategically. Not only is it important to know your budget, but it's also important to think about the maximum price your home could likely sell for on the open market - and make sure renovations don't cost more than what you're realistically likely to bring in. If first-time buyers are most likely to buy your one-bedroom condo, for example, you don't want to include top-of-the-line upgrades that they're unwilling - and unable - to pay for.

That being said, spending wisely in the following areas will likely give you the most bang for your buck, according to the Appraisal Institute of Canada:

1. Painting and interior decor

Most prospective buyers can't help but fall in love with a well-staged home. Investing the time to add a coat of paint to the walls and either buy or rent some fashionable furniture will go a long way in getting a 'sold' sign on your front yard.

2. The kitchen

While a kitchen renovation can often be the most pricey, you're virtually guaranteed a return on your investment. New buyers love new appliances, fancy countertops and plenty of storage space.

3. The bathroom

They don't call it the 'throne room' for nothin'. A bright, clean bathroom – with nice fixtures and tiling – will make prospective buyers feel at home.

As many in the industry expected, the Bank of Canada increased its overnight rate by a quarter of a percentage point this morning, bringing it to a rate of 1%. Here is a summary of the reasoning behind the announcement:

- The Bank revealed that the global economic recovery is uneven - some emerging market economies are proceeding full steam ahead, while some advanced economies are experiencing rather weak growth. The Bank of Canada will likely keep its eye on this when it comes time for its next rate announcement on October 19.

- When it comes to the Canadian economy, a slightly softer-than-expected second quarter has caused the bank to revise its recovery predictions. The recovery is now expected to be more gradual than previously predicted, although it still believes consumption growth and business investment will continue to be strong. Low credit - particularly fixed rates, which have seen a dip due to global bond yields - will keep these areas running on target.

- It appears that this may be the last rate increase for at least a little while. According to the Bank: "Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook." 

If you have a variable rate mortgage and are wondering whether it's time to lock in, please feel free to give us a call.

Tomorrow, the Bank of Canada is scheduled to announce whether or not it will change the prime lending rate - and experts can't seem to agree on which way the Bank will go!

While some believe recent GDP numbers and talks of housing bubbles will force the Bank to stand pat, others believe - for inflationary reasons - the Bank has to increase it, likely by 0.25%. Which way will the Bank go? Tune in tomorrow to find out...

If you ever had a sticker collection, you know the true and utter joy that comes from an aromatic scratch n' sniff. Now imagine you could coat your walls in them. Well, now you can!

U.S.-based Flavor Paper - which has offices in New Orleans and Brooklyn, New York features a delicious brand of hand screened fruit wallpaper that offers visual and olfactory satisfaction for your walls. Launched in 2007, the Fruit Cocktail Collection comes in three flavours: B-A-N-A-N-A-S!, Cherry Forever and Tutti Frutti. A percentage of the proceeds go to the Human Rights Campaign.

As of yet, the wallpaper isn't available in Canada, but it is available in a variety of cities in the U.S. as well as online at www.2modern.com.

There is no better way to rid your home of unwanted items than a garage sale. And there’s no better time to place those household goods on display than the sunny summer months.

If you’ve been thinking about doing just that, here are a few tips to keep in mind:

1. Get the word out. An ad in the paper and cardboard street sign are no longer the most effective means of garage sale advertising. Instead, go where the bargain hunters hang out – namely craigslist, kijiji, and Facebook marketplace. Don’t completely neglect the social media realm, however – a large portion of your garage sale clientele likely still aren’t familiar with the wonders of social media

2. Know your price – but be willing to negotiate. Make sure all your merchandise is labelled clearly with the appropriate price. Remember that the entire reason people shop at garage sales is because they want a bargain – so be prepared to haggle. For those items that may have a bit of a higher value, try posting them on eBay instead.

3. Stage! During peak garage sale season, there will likely be a few other competing sales on the same weekend as yours. To ensure you’re getting the most traffic, stage your merchandise. Put your highest valued items in the most prominent location – and make sure everything is neatly organized.

If you've been wanting to tackle a DIY home renovation project but are concerned you don't have the skillset or know-how to get the job done, why not enroll in a class?

Since the virtual collapse of the stock market back at the end of 2008, more and more individuals are looking elsewhere to store their nest egg, and ending up opting for a Mortgage Investment Corporation, or a MIC.

A MIC is similar to a mutual fund in the sense that investors pool their money to buy a variety of different assets. But instead of pooling it to buy stocks, they're buying real estate.  The funds are handled by a management company that, for a fee, chooses the real estate investments and pays out investor earnings.

The upside of a MIC is that it's a relatively safe investment vehicle to store your RRSP or other registered savings fund. While it won't get your rich overnight, it will offer you a steady return. And because it's tied to real estate – often in different markets across a province – the likelihood of property values tanking across the board is minimal.

That being said, real estate investments still go into arrears – and management companies still make poor investment choices. If you're thinking about investing in a MIC, make sure you research the management company before anything else, paying particular attention to the company's track record. Try to find a MIC that's been in existence for at least a few years and has a positive reputation.

It's also important to look beyond fancy ads or Powerpoint presentations. A slick appearance doesn't compensate for a lack of ethics. If possible, try to talk to current investors and see what their experience has been. Remember, also, that a guaranteed rate of return doesn't mean anything if the fund doesn't make any money in a given year – or if the management company is forced to pay you out of other investors' pockets.

Above anything else, remember that any type of investment vehicle carries its own form of risk. So protect yourself with the most information possible before jumping in – and don't forget to diversify!

With all the recent media hype about rising interest rates, you'll be forgiven if you thought the days of record-low rates were far behind us. The truth is, while the Bank of Canada did increase the Prime rate by 0.25% in June - thus resulting in slightly higher variable rate mortgages - fixed rates are still incredibly low.

Right now, eligible mortgage candidates can still get a five-year fixed rate mortgage for 3.99%. The low rates are largely due to the uncertainty surrounding the global economy. Basically, when the stock market fluctuates frequently, investors pull their money and instead invest in bonds - believing they're the safer option. The more people that invest in bonds, the higher the demand. While this increases the price of the bond, it lowers the rate of interest that investors earn on it, thus lowering the yield (or annual rate of return). This lowers the cost to banks which, in turn, pass the savings onto mortgage customers through lower fixed rates.

Long story short, negative economic news - such as the threat of a 'double dip recession', and oil spill off the Gulf Coast - often come with a silver lining by means of lower fixed rate mortgages.