Blog : Homeownership

You’re pre-approved for a mortgage, you’ve been shopping with location in mind, but unfortunately the perfect property isn’t jumping out at you. There is no doubt about it, finding the perfect property (within your price range) is a difficult task, especially for first time home buyers. So, before you go and let buyer’s fatigue set in, maybe you should consider adding the cost of renovations into your purchase.

Let me introduce you to the purchase plus improvements program! When purchasing a home, buyers can add the cost of home upgrades into their mortgage. The program is designed to allow for 10% of the purchase price to a maximum of $40K to be added to the mortgage for renovations and updates. A great option if you can’t find something move in ready, and aren’t afraid to do a little work!

Sounds simple enough, but in all honestly, it’s quite the process, there are some pretty strict rules to follow. Firstly, you must provide quotes to the lender ahead of time for the work that you would like to have completed. It is good to note that the renovations will have to increase the value of the property accordingly. Secondly, the lender doesn’t give you the money to do the renovations, you have to come up with that yourself. Once the work has been completed, (verified by an appraiser) the lender will reimburse you via your lawyer’s trust account.

Obviously this program isn’t for everyone, buying a home is a stressful endeavor to begin with, the added stress of having to undertake renovations right away might not be a good idea. But then again, if you have the financial wherewithal to handle the cost of renovations and like the idea of making it yours from the start, then this might be just the option you have been looking for!

If you would like to know more about the purchase plus improvements program, and how this program might work for you, please contact me anytime at 416.945.9123 or by email at mat@fugeremortgage.ca!

All of us are looking for ways to make our living spaces more efficient whilst keeping the style intact; and certainly the bathroom space is no exception. The question becomes, “How do I do this without spending a small fortune on renovations and upgrades?” The answer is simple…You get creative!

The following are four stylish bathroom hacks that will help you declutter and organize, all for the cost of a few cups of coffee (or tea, if that’s your thing!)

Creative Shelving Units

The first (and most obvious) solution for getting your bathroom clutter organized is by way of conveniently placed, ideally designed, and most definitely inexpensive shelving units. This may sound daunting, especially if you, like me, lack meaningful shelves in any and all of your bathroom spaces. But never fear! There are easy and effective ways to make this happen!

Wicker baskets (and the like)

This image is from diyready.com and can be found here

Baskets (of various sizes) can be hung from any wall in your bathroom via a drywall anchor (or two) and a simple screw (or two). This technique will not only showcases a classic, rustic homestead piece (the basket); it will also give you ample room to store whatever it is that you need to store.

Obviously, if you don’t have baskets, other items can be utilized here. The key is the shape. If it’s deep enough to hold that which you need it to hold, and “the look” is there, than go for it!

The Hanging Shelf

Nothing beats the satisfaction of framing your own shelf. Now, before you get scared and run…relax. This job includes only a few tiny pieces of lumber, a small length of rope, a small can of wood stain, and a hanger (with another drywall anchor/screw combo). This piece can be easily hung over a toilet or on an empty wall. Plus, not only does it provide shelf options, you can beam with pride when you tell your guests that you fashioned it yourself, out of a tree that you found in the forest, and cut down, yourself…right? Too far?

Custom Towel Rack Solutions

Related to the shelving units, we find ideas related to hanging towels. Simply, you’d be mistaken if you stopped at the classic rack; because there’s a world of options out there for you to try out.

The Ladder Rack

An old wooden ladder, properly restored, can act as a great hanging rack for towels, face cloths and clothing items fresh out of the washer.

This image is from charmbraceletdiva.blogspot.ca and can be found here

“His” and “Hers”

His and her towel racks are not only interesting design wise; they’re functional. No longer will your spouse have rights to your towel because he or she didn’t know that it was yours. Those days are over.

Wine Rack/Towel Rack

This image is from hubpages.com and can be found here

Yes! The wine rack has uses for things other than wine. namely…towels! In all seriousness though, these racks can be very inexpensive and can hold several towels at a time; all the while looking classy, interesting and unique to boot! What’s not to like?

Vanity Organization

Most bathrooms that I’ve seen (and experienced) contain drawers that are simply overflowing with stuff. Avoid this travesty at all costs by dividing (and therefore conquering) the drawer’s contents. Kitchen utensil holders work fabulously here. These pieces are simple, functional, and nobody has to see them but you, so the questions surrounding kitchen organizational tools in your bathroom will be minimal.

Continue with your vanity realignment by adding some simple hanging shelves into the inside the cabinet door. A simple magazine rack can work well here, and can be attached via a couple small screws (just make sure you don’t go so far as to pierce the outer side of the door).

The Mason Jar (For all your hipster storage needs)

This image is from thediyplaybook.com and can be found here

Mason jars are useful for lots of things: storing jams, holding pickled items and also dispensing soap…That’s right! Also (and perhaps a little more seriously), these jars can be formed into wonderful mini storage units. They look great, too!

There are obviously lots more ideas out there, but hopefully these few have gotten your creative juices flowing, and have ignited your imagination. There’s lots you can do; so what are you waiting for?

The Canadian government just released its housing strategy plan, called “What We Heard, Shaping Canada’s National Housing Strategy”. It has been included below in all its 66 page glory, but first here are some of the highlights.

Helping those in greatest need. It is clear that Canadians are united in wanting better housing outcomes – not just for themselves, but for individuals and families with the most severe housing needs, including low-income Canadians, the homeless and victims fleeing violence.

Helping Indigenous peoples achieve better housing outcomes for themselves. Indigenous peoples told us that a separate, but parallel strategy is needed to address the unique housing challenges facing Métis, Inuit and First Nations peoples living on and off reserve, in cities and remote areas, and in the North and bring housing need levels on par with non-Indigenous peoples.

Eliminating homelessness. A fundamental goal of a National Housing Strategy should be to eliminate homelessness in Canada, and short of that, make it rare, brief and non-recurring. The needs of homeless Canadians, who fall at the extreme end of the housing spectrum, ought to be prioritized.

Making housing more affordable. Canadians said housing they can afford and that meets their needs was the most important housing outcome. The lack of affordable, suitable and adequate housing is especially a concern for low-income households and other vulnerable Canadians across the country. 

Adopting a housing systems perspective. Canadians told us they expect a National Housing Strategy to better coordinate the various housing initiatives already in motion across the country and to tackle housing needs across the entire continuum.

Housing policies and programs should centre on people and place. All recognized the need for housing solutions to be people-focused so that individuals and families have access to jobs, schools and supports in order to participate in their communities and help lift them out of poverty. Canadians also want housing located in safe neighbourhoods with day-care facilities, community services, public transportation, recreational and other amenities nearby.

Setting clear outcomes and targets. You told us that a national strategy must set clear outcomes and measurable targets in order to report back to Canadians on progress in achieving better housing.

Delivering long-term and predictable funding. We heard loud and clear from housing providers and developers that long-term and stable funding is necessary to plan and deliver more affordable housing. Similarly, access to innovative financing and affordable lands will also help alleviate affordable housing gaps.

Realizing the right to housing. Canadians said a national housing strategy should examine whether our laws, policies and practices are sufficient to prevent homelessness, forced evictions, and discrimination in having adequate housing.

Improving data collection, analysis and research. Canadians and housing experts stressed that more and better housing data is needed to understand housing conditions and the housing needs of Canadians, and in order to develop informed, cost-effective, policies, programs and initiatives.

Taking a collaborative approach to housing. Canadians told us that a National Housing Strategy should take an integrated approach, building on the capacity of all orders of government and other partners. Clear collaboration and flexible solutions are necessary to achieve a national vision of housing.

What We Heard by Mortgage Resources on Scribd

In an article I recently published called “Is Now a Good Time to Buy?” we identified that interest rates are at all time Canadian lows and as it’s never been cheaper to borrow money, now is a good time to buy property. In no way was it being said that “because interest rates are low, you should rush out and buy property”. Obviously there is a balance and you should take the decision to buy a property seriously. The point of the article was that while the media would have us believe that the sky is falling and the housing market is crashing around us, it’s not all doom and gloom, there are some silver linings (like low interest rates).

But the problem with low interest rates is that they can actually perpetuate the housing crash conversation. These low interest rates won’t last forever, inevitably rates will go up. And when they do go up, the question is “are today’s low rates setting people up for failure down the road when rates increase”? Well, let’s have a look and discuss the 5 year fixed rate mortgage.

Firstly, when qualifying for a mortgage using the 5 year fixed rate, you are able to debt service (qualify) using the contract rate (low rate, currently around 2.39%). This is instead of having to use the benchmark rate (currently 4.74%) like you would on a variable rate mortgage or any term less than 5 years. As such, the low rate on the 5 year fixed allows you to qualify for a much higher mortgage amount compared to qualifying at the higher benchmark rate. The argument is that by qualifying using the lower rate, you are taking on more debt than you can actually handle.

Secondly, when your 5 year term is up, even after paying on the mortgage for 5 years, if interest rates go up, there is a chance your mortgage payment will go up as well. The media calls this “payment shock” and it’s a real thing. On a modest mortgage amount, with rates as low as they are today, any increase of rate at renewal could mean hundreds of dollars a month extra on your new payment schedule.

Qualifying for a higher mortgage amount based on a low interest contract rate, combined with a higher rate upon renewal, plus a third variable like a job loss, reduced income because of a maternity leave, or significant health/life issue is what leads speculators to make the claim that low interest rates are contributing to the eventual housing market collapse. It’s a reach, but that’s the argument that’s made.

So, if you find yourself concerned about these things, here is some quick advice on how to avoid payment shock and how to take advantage of today’s low interest rates.

Just because you qualify for a certain mortgage amount (because of low interest rates or not), doesn’t mean you have to spend that much. If you are worried about a potential market correction, instead of qualifying using the lower mortgage amount, consider setting your personal limit at the benchmark rate instead. That way you are already building in a “stress-test” and are ahead of the game.

Also, just because your minimum payment is based on today’s low interest rate, doesn’t mean you can’t pay more aggressively. Let’s say your payment is set using a 2.39% rate, using your pre-payment privileges, consider increasing your payment to the benchmark rate of 4.74%. This will do two things, it will pay down a lot more of the principal amount in the first 5 years of your mortgage, plus if interest rates do increase upon renewal, you will have already conditioned yourself to be paying a higher payment, and you won’t be shocked by the increase!

If you are thinking about buying a property in the next couple of years, please contact me anytime at 416.945.9123 or by email at mat@fugeremortgage.ca, I would love to help you arrange mortgage financing.