Open House- The Real Estate & Mortgage Show: May 19, 2018
Saving money with the new variable rate mortgages rates, what to expect when paying condo fees, and more on this week’s edition of Open House: The Real Estate & Mortgage Show.
With the aggressive variable rate discounts now available, mortgage holders are reviewing if it may be worth it to break their current mortgage in order to save on interest in the long term. These offers are often available for new customers only which means that borrowers would need to incur the costs of switching their mortgage to a new lender which also means paying the penalty which, with a variable rate mortgage, is 3 months interest costs. Working with a Mortgage Broker can help analyze the costs and interest rate savings to see if this decision may be right for you. One way to help pay down your mortgage when choosing a variable rate is to set your payment as the fixed payment rate which applies the additional funds directly to your principal.
When it comes to Ottawa home sales, most areas are still moving quickly especially when it comes to town homes. Pricing your home accordingly is always important. Using a reliable Real Estate Agent and real estate lawyer is very important when buying a condo to help buyers look at the financial health of the building. Buyers can expect to pay more in condo fees when looking at older buildings given that maintenance will be needed on the property sooner. You can expect to pay $0.50- $0.60 per square foot for a brand new downtown high rise condo. On new condos, often condo boards can only forecast expenses and therefore may need to increase condo fees in a shorter time frame than buyer may expect. When it comes to your mortgage application, 50% of the condo fees are included in the liability section for qualifying purposes.
The LRT and associated corridor is having an impact on the landscape of Ottawa in terms of new construction developments and projects. The LTR corridor will present a great opportunity for investment properties as millenials look for low-maintenance properties close to transit. The buying habits of millenials are very different from the previous generations. They are less interested in having to maintain outdoor spaces and would rather invest in experiences leading many to look at condo properties.