Toronto condo sales cool in July


Greater Toronto Realtors® reported 7,570 sales in July 2012, representing a decline of 1.5 per cent compared to 7,683 sales reported in July 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto. Total sales in the rest of the Greater Toronto Area (GTA) were up compared to the same period last year.

“Very strong annual sales growth in the first half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. New mortgage lending guidelines and the additional upfront cost of the City of Toronto land transfer tax also prompted some households to put their buying decision on hold,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in July 2012 was $476,947 – up by four per cent compared to July 2011. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1 per cent year-over-year.

“The GTA housing market became better-supplied in recent months. Buyers benefitted from more choice in the market place, resulting in less upward pressure on the average home price in July,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The mix of homes sold in July 2012 versus July 2011 also appears to have changed, further influencing the average selling price" concludes Mercer.

See the full Mark Watch report »

Toronto Area Listing Up 14.4%


Greater Toronto Realtors reported 3,679 sales through the first 14 days of July 2012, representing a 5.6 per cent increase compared to the 3,484 sales reported for the same period in 2011. New listings were up by 14.4 per cent over the same time frame.

“Housing demand remained strong in the first half of July. Sales growth occurred in the regions surrounding the City of Toronto. In the City of Toronto, where sales were down, the relatively higher cost of home ownership likely prompted some buyers to purchase elsewhere in the GTA. Higher costs in the City of Toronto include the upfront payment of the additional land transfer tax,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in the first half of July was $473,466 – up by 2.3 per cent compared to last year. On average, homes sold for 98 per cent of the asking price in 25 days – in line with July 2011. Price growth was strongest in the City of Toronto, climbing by 3.5 per cent to $496,645.

“A better supplied market contributed to a slower annual rate of price growth in July relative to the first half of 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As buyers benefit from more choice in the second half of this year, expect price growth to slow to a more sustainable pace.”

Canada Day


Canada Day   Background

On June 20, 1868, a proclamation signed by the Governor General, Lord Monck, called upon all Her Majesty loves subjects throughout Canada to join in the celebration of the anniversary of the formation of the union of the British North America provinces in a federation under the name of   Canada on July 1st.

The July 1 holiday was established by statute in 1879, under the name    Dominion Day.

There is no record of organized ceremonies after this first anniversary,     except for the 50th anniversary of Confederation in 1917, at which time the new Centre Block of the Parliament Buildings, under construction, was dedicated as a memorial to the Fathers of Confederation and to the valour of Canadians fighting in the First World War in Europe.

The next celebration was held in 1927 to mark the Diamond Jubilee of   Confederation. It was highlighted by the laying of the cornerstone by the Governor General of the Confederation Building on Wellington Street and the inauguration of the Carillon in the Peace Tower.

Since 1958, the government has arranged for an annual observance of   Canada's national day with the Secretary of State of Canada in charge of the coordination. The format provided for a Trooping the Colors ceremony on the lawn of Parliament Hill in the afternoon, a sunset ceremony in the evening followed by a mass band concert and fireworks display.

Up until 1975, the focus of the celebrations, under the name "Festival   Canada", was held in the National Capital Region during the whole month of July and involved numerous cultural, artistic and sport activities, as well as municipalities and voluntary organizations. The celebration was cancelled in 1976 but was reactivated in 1977.

A new formula was developed in 1980 whereby the National Committee (the federal government organization charged with planning Canada's Birthday celebrations) stressed and sponsored the development of local       celebrations all across Canada. "Seed money" was distributed to promote popular and amateur activities organized by volunteer groups in hundreds of local communities. The same approach was also followed for the 1981 celebrations with the addition of fireworks displays in 15 major cities across the nation.

On October 27, 1982, July 1st which was known as "Dominion Day" became "Canada Day".


Major Changes To CMHC Rules !!!


Major Changes To CMHC Rules!!!

Finance Minister Jim Flaherty has just announced sweeping changes to Canada Mortgage and Housing Corporation (CMHC)Canada’s national housing agency. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.

The 3 major changes are as follows;

1) A reduction in MAX amortization for CMHC insured mortgages from 30 yrs back down to 25 yrs.  This is will result in Canadian home buyers paying less in mortgage interest payments over the course paying off your home.  The downfall is that fewer people will qualify for a mortgage as the payments will be higher, and more income will be required to qualify for a mortgage.

2) Homes priced over $1 million are no longer eligible for CMHC insurance.

3) MAX refinance has been reduced from 85% (Loan To Value) LTV to 80% LTV.

Read More ... The Globe and Mail

Paramjeet Nagi, Broker


Client Appreciation Loyalty Reward Program

Client Appreciation Loyalty Reward Program

I would like to welcome you to my CLIENT APPRECIATION LOYALTY REWARD PROGRAM, Earn Aeroplan Miles - the sky is the limit! Think of a time when you were lost in a strange part of the city. You didn't know where to turn. In fact, you made a few wrong turns. Then, you called someone you trusted to get directions and they helped you get to your destination safely. How grateful and relieved were you?

One of my three "C"s and perhaps the most important to you is CLIENT APPRECIATION. Acknowledging a kind act, a good deed, a job well done..many times, these things are taken for granted rather than acknowledged with a sincere token of THANKS.

Those of you who know me well, know that I VALUE your business and your REFERRALS. In fact, referrals are the foundation of my business and working with you as my clients demonstrates that you value my Classic Service and Core Values. Whether you refer your family and friends to me or use my services for yourself, both deserve recognition and thanks.


As my client who completes a Buy or Sell transaction with me, you will be rewarded with a minimum of 5,000 Aeroplan Miles and up to 15,000 Aeroplan Miles, depending on the property sale price. No transaction is too small or too big for appropriate recognition because I appreciate and value your business. And, I recognize that good business is built on solid client relationships that withstand the test of time and change.

So, I invite you to be a Significant Partner in my Loyalty Program and remember, when you're thinking of Buying or Selling or you know someone who is, I want to be YOUR REALTOR.

Helping you Find Your Way Home and THANKING You For it….

Paramjeet Nagi, Broker

Re/Max Real Estate Centre Inc.


Bank of Canada maintains overnight rate


Bank of Canada maintains overnight rate


          Bank of Canada announced this morning that they will keep the overnight rate steady at 1%. The overnight rate is what the major banks use to benchmark the Prime rate mortgages, which is currently at 3%. 


The bank did hint, however, that it may resume rate hikes sooner than expected.


For anyone in a variable rate mortgage it means that your interest rate will remain constant for the coming months as the Bank of Canada did not give any indications of increasing the Prime rate. 


Next Meeting: July 17

Prime Rate: 3.00%

To learn more about the dynamics behind this decision, check out the articles below.


Bank of Canada holds rates steady

Globe and Mail - Jeremy Torobin

The Bank of Canada left its main interest rate untouched at 1 per cent Tuesday and again suggested that it will tighten borrowing costs when economic conditions allow such a move, while hinting this is farther off than policy makers were anticipating just six weeks ago. 


Click here to read the full article


Paramjeet Nagi, Broker









Time to Renew your Mortgage




Lowest Rates* in Canada
  Term       Our Rate                  Bank Rate Bank Rate
  3 Yr Fixed         2.84%                       4.55% 4.55%
  5 Yr Fixed         3.15%                       5.65% 5.65%
  Variable         2.90%                       3.35% 3.35%
Updated: May 15, 2012
We have the best rates on
a wide range of products.



Renewal Time?

Is your mortgage coming up for renewal soon? When it comes time to renew, make sure you don't step blindly into another long term contract. Studies have shown that the majority of Canadians simply sign off on the mortgage renewal documents that arrive in the mail and end up staying with their current lender, but this does not always get them the best mortgage rate or the best mortgage product for their needs. Historically the bank posted rate is what you will be offered in a standard renewal. As a CENTUM Mortgage Professional, I can negotiate a better rate for you.

Keep in mind that interest rates are at a historical low, yet rate isn't everything. Having some flexibility in your mortgage at a slightly higher rate could be advantageous in the long run. Studies have shown that many people aren't aware of their mortgage options. Make sure you spend the time to research the right mortgage product, rates, and terms. Here are few common mortgage options for consideration:


This allows you to pay extra onto your mortgage (on top of your regular payments) without paying a penalty. Prepayment options range from the ability to pay 0 - 30% of the original amount borrowed to allow you to become mortgage free faster. Typical prepayments seemed to be in the 20% per year with some banks offering no restrictions on the dates or amount of these payments and some allowing anniversary payments only and one lump sum.


This option allows you to move your mortgage to a new home after you've sold your current one. Depending on the lender and mortgage product, there may be some time restrictions. For example, some lenders allow 90 days to port your mortgage to a new home, however you will have to pay the penalty up front and then get reimbursed. If you don't port within 90 days, the penalty will not be reimbursed as you have broken your mortgage term. Penalties are most often calculated at three month's interest or the Interest Rate Differential, whichever is usually higher.

Mortgage Increase:

If you think you want to plan renovations, purchase a vacation home or help finance your children’s education  then you may want to give some thought to this option. This option allows you to increase the amount of your mortgage. There will be fees for this, such as appraisal ($200 - $400) and legal ($700 -$1000) and you will need to provide income documents and all of the same documents required for a new mortgage application.

Mortgage Transfer:
If your mortgage term is up for renewal and you have no intention of moving from your existing property then this may be an option for you. A mortgage transfer allows you to move your existing mortgage to a new lender. There are minimal costs involved to the consumer as lenders primarily will absorb the cost to process a mortgage transfer. You will still need to provide all of the documents required for a mortgage application and there may be a appraisal cost but there should be little or no legal costs involved of which range from $700-$1000 normally.

Mortgage flexibility isn't for everyone. You'll have to consider what is happening in your life and whether or not any of these options are right for you. This is where I can help research different mortgage products offered by various lenders to ensure that you are getting the best rate and product possible. Having a qualified CENTUM Mortgage Professional working for you doesn’t cost you anything, but the advantages can save you thousands of dollars over the life of your mortgage.

If you would like more information about how I, as a CENTUM Mortgage Professional, can assist you in ensuring that your best interests are looked after, please do not hesitate to get in touch with me.

Paramjeet Nagi
Licence #: M08007836
Phone: (416) 884-1770



Buy First or Sell First?


Buy First or Sell First?
Lowest Rates* in Canada
Term Our Rate Bank Rate
3 Yr Fixed 2.84% 4.55%
5 Yr Fixed 3.15% 5.65%
Variable 2.95% 3.35%

We have the best rates on
a wide range of products.

Buy First or Sell First?
When considering a move to a new home, the typical dilemma for many homeowners is whether to buy or sell first. There is no "right" answer, but there are some benefits to both sides, depending on your circumstances.
Buy First if...
It’s a seller’s market
When the number of buyers outnumbers the market’s inventory, homes can sell within days. If this is the case, chances are your home will sell quickly, making buying first a less risky option. Keep in mind though that your offer will be contingent on your home selling, making your offer less attractive to the seller, especially if there are multiple offers.

The deal is too good to wait
If you find a deal that is just too good to pass up, you may be tempted to buy first. But take care; you will have to carry the cost of 2 homes, until you sell. Also, consider that your selling price at this stage is not yet known, so you are taking a bit of a gamble.

You have found your dream home, at the right price
This of course is an emotional decision, and if you can shoulder the extra debt while you wait to sell, then it may be worth it, especially if you have interests in a specific property.
Sell First because...
You will have the ability to negotiate
Especially if you are not under pressure to sell, giving you the luxury of time to negotiate top dollar for your home.

You will have more buying power
Because your home is already sold you will know exactly how much money you have to work with. 

You will have the power of an unconditional offer
This will provide you with more negotiating leverage to buy your next home.
You have options with whatever you decide to do, but before you make a decision make sure you:
Get your finances in order: Get pre-approved for a mortgage and contact your real estate professional to help you find a new home.

Get your house ready to sell: Paint the walls, clean out the garage and closets, spruce up the yard. Talk with your real estate professional about the listing price and timing.
Good luck and happy house hunting! 
If you would like more information about how I, as a CENTUM Mortgage Professional, can assist you in ensuring that your best interests are looked after, please do not hesitate to get in touch with me.
Paramjeet Nagi
Licence #: M08007836
Phone: (416) 884-1770

*The posted rates on this newsletter represent the best typical discounted rate available from our preferred lenders to borrowers with strong credit of 680 beacon or greater, qualifying income and assets, and no late payments. Rates may vary between geographic regions and the posted rate on this newsletter may not be available in your area. We understand that no two consumer mortgage requirements or credit profiles are identical, so please contact me to discuss your individual requirements. Lender rates change often and are subject to change without notice. 

This e-mail message contains confidential information for the use of the individual or entity named above. 
Any unauthorized use or disclosure is strictly prohibited. 
Independently Owned and Operated. ®/TM trademarks owned by Centum Financial Group Inc. ® 2012 Centum Financial Group Inc.


Real Estate Tax Windfall for Toronto


Real Estate Tax Windfall for Toronto

Toronto’s red hot real-estate market has helped deliver an unexpected boost to the city’s bottom line. The city will officially announce its year-end fiscals on Monday and it’s expected the surplus will be about $290 million, which is roughly double the $140-million surplus expected.

Coun. Denzil Minnan-Wong spoke to CBC News on Saturday and said much of the extra money comes from the land transfer tax, which is generating extra revenue as Toronto's real-estate market continues to surge.

Minnan-Wong cautioned that although he opposed the land transfer tax in the past, it might be too soon for the city to consider removing it.

“We have a quite a substantial debt,” he said. “The last administration spent $700 million for streetcars and didn’t have a way to pay for it. Until we have some way to pay for those large expenditures, it’s hard to make an argument to eliminate the land transfer tax."

The land transfer tax charges purchasers on a sliding scale base on the value of the property. A house priced at $500,000 would result in $5,700 in land transfer taxes.

First-time purchasers are eligible for a rebate of $3,725.

House Hunting Down Payment Requirements


For many people, the hardest part of buying a home is saving enough money for a down payment. The bigger the down payment, the smaller the amount of your mortgage loan. If you've arrived in Canada within the last 36 months, you may qualify for Genworth's or CHMC  New To Canada  product, which allows you to buy with as little as a 5% down payment.

A down payment of 20% or more of the property will qualify you for a conventional mortgage. If it is less than 20% you will pay for mortgage default insurance. Mortgage default insurance enables buyers with low down payments access to the same competitive mortgage interest rates as buyers with larger down payments. It’s insurance which guarantees the mortgage by protecting the lender should you be unable to make your mortgage payments for unforeseen reasons.

Genworth Financial Canada is the largest private sector supplier of mortgage default insurance in Canada. Mortgage default insurance is also available from several other providers in Canada like CHMC. Your lender will both inform you about, and arrange for, mortgage default insurance.