By: Sonja Rasula HGTV

Are you considering making a spare space in your home into an apartment? Whether the kids have all moved out,

or you've thought about renting a space in your home to help with the mortgage, creating a second suite, and

becoming a landlord, can have many advantages.

While the most obvious benefits are the financial ones (income can subsidize the cost of ownership, property

value increases and tax deductions become available), becoming a landlord may give some a sense of pride and

responsibility, help derive a greater sense of safety and perhaps even provide a social, community atmosphere.

If you're thinking about renting space in your home, there are many things to think about, and lots of work to be

done. Read on to find legal and safety considerations, plus tips on finding great tenants.

Legal & Safety Considerations

How to Prepare

Before you place an ad in the paper, start installing a stove or get a set of keys made, you need to find out what

exactly makes a secondary suite legal. Make sure you check with your local municipality for the zoning bylaws-

don't wait until you've put time and energy into building a second suite to find out if you're even allowed to have

one! If you've purchased a home with an existing second suite, you need to make sure it stands up to fire code

requirements and planning standards. The Landlord's Self-Help Centre in Toronto suggests two extra steps to

further reduce liability once you've legalized your second suite:

1. Make your insurance provider aware of the second suite and enhance your insurance coverage accordingly.

2. Ensure your mortgage holder is informed about your second suite.

Once the Apartment is Ready

There is only one thing you need to think about now, the legal responsibilities of being a landlord. Before you start

to look for renters, you need to make sure you understand all your legal responsibilities as an acting landlord.

Some of the things you'll need to know include:

· How to comply with Fair Housing Laws, and not discriminate against anyone.

· How and when to make necessary maintenance repairs.

· Once rented, when and why you are allowed to enter the suite.

· Rent increase laws and how to inform tenants of an increase.

· How to serve an eviction notice.

· What a lease/renter's agreement should look like and include.

In order to educate yourself on the legal responsibilities, you should contact your municipal government for help,

as well, check your yellow phone book for any landlord or housing agencies listed under Social Services.

Tips on Choosing Tenants

First, be on the ball and be organized. It's your job to be prepared for both telephone calls and visitors. The best

thing to do is to create a list of basic information (monthly rent, size, advantages such as location or new

appliances), so you don't forget anything when talking to interested people over the phone. As well you should

have an application form ready to fax or handout.

The law is definitely on your side when it comes to choosing tenants. There are many great services available to

make sure you have sufficient information to make a decision. Credit checks are a great way to see an applicant's

history and confirm his or her actual identity.

Doing a credit check is not something to be overlooked because of the fees involved. The tenants you choose 

might appear to be wonderful people, but when it comes down to it, you need to know more about them before you

let them into your home. You have the right to ask for and contact references and past landlords. You can even ask

for their banking information, in order to obtain their history. While you can ask for income information, it is only

legal to do so if you also ask for rental history, credit information and get approval for a credit check (making a

decision based on income alone would be discrimination).

Don't just "go for the green" when choosing tenants. It's up to you to find trustworthy, reliable renters, but it's just as

important to choose renters you get along with. Once you have applicants that have passed the tests mentioned

above, there are helpful ways to decide between tenants:

· Set up a short interview, which will enable you to see what they are like, and allow for open communication

between both parties.

· Make sure to ask questions about their lifestyle habits. For instance, if they play an instrument, find out if they are

willing to restrict playing it to certain hours.

· Is their personality compatible with yours, and other family members that live in your household?

· Do they have pets? If you have pets, are they allergic?

The biggest differences between a mortgage broker and a bank lender is the range of choice

By Tracy Hanes | Moneyville

When Chris Vale and his wife Keli Hines bought a home in Oshawa, they arranged a mortgage through an in-

house firm their real estate agent’s company had.

“We were told, ‘Here’s the rate and here’s what you pay,’ ” Vale recalls of the transaction, which took place several

years ago.

Then Vale met mortgage broker Marshall Spencer and got to learn what a broker could offer. When their mortgage

came up for renewal three years ago, he and Hines used Marshall, who found a mortgage for them at two per cent

lower than the posted bank rate.

Vale owns an Ajax web-design company.

“Marshall explained a lot of things to us, such as out clauses and penalties. It really set the path for finding the

mortgage that was going to work for us,” says Vale. “When we had questions, we could pick up the phone and get

answers from the same person every time. Having that personal one-on-one relationship was important.”

Albert Collu, president of Independent Mortgage Brokers Association (IMBA) of Ontario and president and CEO of

Argentum Mortgage and Finance Corp., says one of the biggest differences between a mortgage broker and a

bank lender is the range of choice.

“Imagine going to the grocery store and down the cereal aisle all you see is one brand of cereal. When you walk

into a bank, the bank is predominantly focused on moving its own products and a lending officer or branch

employee can only offer one brand,” says Collu. “With a broker, it’s like you are going down the cereal aisle and a

huge variety of different brands.”

Brokers deal with as many as 30 or 40 different lenders, including banks, credit unions, large institutions that only

offer mortgages, and small, private lenders, says Collu. “That provides flexibility as different lenders have different

appetites for certain loans. We are able to be more nimble than the bank.”

While some Canadians like to use mortgage brokers, there are advantages to dealing with your bank directly,

according to the Canadian Bankers Association.

Many customers value the relationship that they have with their bank and often have other personal banking

products and services there (such as chequing accounts, credit cards, and investments), as well as a mortgage,

so this provides ease in managing all accounts and personal financial needs within one institution, says the CBA.

Banks also have a variety of resources such as mortgage specialists, booklets, calculators and comprehensive

websites and many have staff who will meet the customer at home, according to the CBA. Consumers can also

negotiate lower rates than the posted rate at banks and can choose from various payment options and mortgage

solutions.

Collu says mortgage brokers are specialists who have in-depth knowledge about mortgages, while most bank

employees may have limited or very general knowledge. Collu says IMBA advises consumers to call a broker for a

consultation, before renewing a mortgage. There’s no charge and no obligation, he adds

“Most consumers don’t know what a mortgage broker does,” says Collu. “Thirty years ago, people would say,

under their breath, that they had to go to a mortgage broker. It was almost an embarrassing thing to admit.”

The field has evolved since then, says Collu. Brokers must complete required courses, write exams, and be

mentored and trained at an established brokerage.

Above all, they are required to be licensed with the Financial Services Commission of Ontario which can provide

consumers with a list of licensed brokers and lists those that are not. It also handles consumer complaints. If your

mortgage is for $300,000 or less, the mortgage brokerage cannot accept, or require you to make, an advance

payment or deposit, for any expenses or services that will be offered by the brokerage or one of its employees.

There is usually no fee to use a mortgage broker.

“If only I had dime for every time someone has said, ‘Well, mortgage brokers charge fees,” says Collu. “Generally,

that’s not true, and we are not conduits to loan sharks.

“How does a broker get paid? It works the same as an insurance agent: We are paid a commission by the

institution we arrange a mortgage with.”

Collu says about eight out of every 10 people renew their mortgage with their bank, and, of those, about 70 per

cent sign back at the posted rate, while a broker could get them a rate at 1 per cent to 1.5 per cent less, or even

lower, and secure terms that suit their needs.

While anyone can use a mortgage broker, Collu says many clients are “credit-challenged people, looking for

prime rates,” those requiring complex financing, people building a house or the self-employed, many of whom can

find it difficult to qualify for a mortgage through a bank.

“I can save people time and time is the new currency,” says Spencer, who operates Prime Rates mortgage

brokerage in Whitby. He started his career working in a bank. “A mortgage broker can shop the whole mortgage

market so you don’t have to.”

Spencer says brokers “don’t have to push a particular product or cross-sell.

“I am not going to try to convince you to open a new savings account or buy mutual funds.”

A broker’s commission is not based on what the interest rate of the mortgage is, so they will try to get clients the

lowest rate possible, he adds.

To determine the best mortgage for clients, mortgage brokers will typically ask them questions about where they

want to be in five years, if they are planning to change jobs, whether their family will grow or if they need income

from a rental unit in their house.

“A lot of people only see the interest rate and are distracted by that. When arranging a mortgage, don’t stop your

questions there. Ask what privileges you have, if you can increase payments by an extra 10 per cent or 20 per cent

or can make lump payments without penalty,” says Spencer.

Vale and Hines are pleased with their decision to use a brokerage, not a bank.

“For as long as we need a mortgage, we’ll be going the broker route,” says Vale.

Mortgage Broker facts

  •  The mortgage broker industry is governed by the Financial Services Commission of Ontario. It licenses

mortgage brokers, agents, brokerages and administrators and its website has a wealth of information for

consumers, including a list of licensed brokers, information about law governing mortgage brokers and how to file

a complaint. There are also brochures on mortgage-related topics that can be downloaded.

  •  The Independent Mortgage Brokers Association of Ontario (IMBA) provides education and professional

development for mortgage brokers and provides consumer information about brokers’ code of conduct, FAQs

about the industry and a listing of licensed brokers in the province.

By Amber Dowling HGTV

For the past ten years, Scott McGillivray, a 30-year-old real estate entrepreneur, has made a living by

transforming houses into income properties. The 30-year-old currently manages 18 properties with over 100

tenants, and now he's coming to HGTV to help a "house poor" generation create legal income suites and help

offset their rising mortgage payments.

Whether it's a 100-year-old Victorian home, a multi-apartment property or a fully renovated unit in a hip urban area,

this entrepreneur can do it all. Check out 10 tips we learned from McGillivray by watching the first episode of

HGTV'sIncome Property:

1. Make sure it's worth it
   As McGillivray says, the cost of renovations has to be able to pay itself back within two years rent. Scout out local markets, get a professional opinion, and be sure to watchIncome Property. Because, hey, who doesn't want to make a couple of bucks on something they need anyway?
   
   
2. Tag team, if you can
   To use a cliché, two heads are better than one, and home-owning is no exception. Getting to your desired final product is a journey, and having a teammate to share frustrations, anxieties and most importantly, costs with is invaluable.
   
   
3. The best way to learn is to go through the experience
   As one homeowner in the show puts it, "you can read as many books as you want, but you have to experience it." Every home is unique, and every home will reveal its own problems and potential solutions.
   
   
4. Whatever you budget, add 25 per cent
   When renovating your space, despite what a professionally quoted budget says, add 25 per cent, just in case. If you don't go over, nothing lost. But if you do, at least you were expecting it.
   
   
5. Houses are like onions
   The more layers you peel back, especially while demolishing, the more problems you're going to find. Count on hidden gems like mould, live wires and any other hidden costs, just in case.
   
   
6. Consider all the options
   If you have a three-story plus basement house, why just rent out only the basement? As we learn in the first episode, doubling the space not only allows you to live mortgage-free by increasing the rent, it also increases the value of the home. But it also may not be the option for you, especially if you plan on expanding a family or you want access to your backyard.
   
   
7. Make sure the space is livable
   If the kitchen has zero counter space and the bedroom can only fit a bed, not only is it going to be hard to find someone to rent out your unit, but think of the types of people who might be wanting to rent out your unit.
   
   
8. Don't skimp on the drywall, especially on the ceiling
   Not only do you want a fire barrier between you and your new housemates, you might be thankful for a little bit of sound-proofing in the long run.
   
   
9. Start on the outside
   A separate entrance is key when renting out a basement, especially if you don't want to mingle too much with your new lessees. And you might want to make sure there are no potential lawsuits hanging around — such as slippery stairs or rotting wood.
   
   
10. Don't turn your house into a home... right away
    If a long-term investment is what you seek, turning your space into a home right off the bat isn't going to help pay those accumulating bills. Your No. 1 priority should be making your home into an income source, or at least a manageable entity.

By Marissa Ponikowski  - HGTV

When it comes to condos, staying on the cutting edge of style and decor is key. The general perception of what’s

hot and what’s not can change daily, so choosing trendy yet timeless decorating styles and furniture pieces is the

true challenge for the condo dweller. Always keep resale value in mind when you paint or make upgrades.

Chances are, you won’t live in this condo forever and when you do sell, you want the place to be attractive to a wide

demographic–rather than simply to those who share the same tastes you do.

What’s Hot: 

Clutter-Free Living
The choice to live in a condo generally means one must commit to living clutter-free. Although most condos have a

storage locker and at least one closet, the space for storage is quite limited compared to that of other types of

homes. That’s why it’s so important to adopt a Zen-like approach to clutter and possessions. If you don’t need it,

sell it, give it to charity or throw it out. If you don’t know where you’ll put it, don’t buy it. Life is much easier without

too much stuff, and condos are much more attractive when they aren’t packed with useless possessions.

Flowing Decor
When decorating a condo, choose a theme and stick with it. Condos and condo townhouses are generally open-

concept and fairly small, and introducing too many colour schemes will overpower the space. When painting,

choose a colour that you can repeat–for example, paint your bedroom the same colour as your washroom to give

the impression of an ensuite and then chose a lighter or darker version of the shade for the living area and

kitchen.

Dramatic Wood Finishes
It’s tempting to go with deep, dark paint colours when seeking to add drama to your condo decor, but particularly in

a small space, this is not a great idea. Instead, stain the floors a dark oak or cherrywood finish. Cupboards can be

outfitted with dramatic finish as well and furniture in rich distressed black stain is another attractive way to add

depth to your decorating.

Streamlined Storage
Maximize closet space by building shelves and installing closet organizers. Make every square foot count–even

under the bed! Buy thin plastic storage boxes which slide easily into small spaces and use them to store

seasonal clothing, wrapping paper, gift bags and more. Invest in drawer organizers and cupboard shelves, too.

What’s Not:

Garish Paint Colours
Lime green may be your favourite colour–and very in to boot–but that doesn’t mean lime is a wise paint colour

choice. If you love it, don’t shy away completely, but don’t make it the main focus of your space, either, as rich

colours tend to dominate. Instead, choose boldly-coloured accessories such as blankets, throws, candles and

vases. If you simply must paint in a dramatic shade, choose a single wall to adorn with shocking colour. 

Fading Floors
Even if you didn’t upgrade your floors, it’s important to keep them in great condition. Laminate floors should not be

washed with water, because it can leak through cracks and cause bubbling. Instead, sweep well and spot clean

with a damp cloth. If you have hardwood, keep it in mint condition by cleaning and waxing regularly. If you plan to

sell, a floor sand and refinish may be a good investment.

Too Much Bulk
You may not plan to live in a condo forever, and thus would rather invest in furniture that will make the transition

from condo to house with ease – but big, bulky, house-size furniture just doesn’t compute in a small condo.

Choose your stuff wisely, and don’t break the bank on condo furniture. There are bargains to be had, especially on

small, streamlined stuff.

Proper credentials and background in building key

BY SHELL BUSEY, THE PROVINCE

Buying residential or commercial real estate is a serious venture with some potentially significant risks. Selecting

the right property inspector can greatly reduce the associated risks, and the following information will help you

understand the process.

What qualifications should an inspector have?

Check the inspector's credentials. A "certified inspector" with the designation CPI or CHI signifies that he or she is

certified under a government act and recognized by the courts and other professional bodies. There are two

bodies that regulate home inspectors in B.C.: the Canadian Association of Home & Property Inspectors (B.C.) and

the Applied Sciences Technologists & Technicians of B.C.

A background in the building industry, as well as in the inspection field, is an asset. If you have not built or repaired

it, how can you inspect it?

A qualified inspector is required to have a good working knowledge of:

- building envelopes

- structural components

- plumbing systems

- heating systems

- electrical systems

- roofing

- ventilation

- hazardous materials, i.e., asbestosrelated items such as Zonolite insulation

The inspector needs to understand how all the components listed above function and how they work together as a

system. The ability to communicate this information to the client is also important.

An experienced, perceptive inspector should notice design defects and signs of structural or component

deficiencies (including unprofessional workmanship). Followup information from the inspector should include the

"how to or who to" make the necessary corrections.

Accepting a referral for an inspector through your realtor is not something I recommend. Make certain the

inspector is working in your interest. Realtor/ inspector relationships are a cause for concern within our industry.

As of March 31, 2009, all inspectors in B.C. need to be licensed under the Consumer Protection B.C.

How much should a house inspection cost?

It can cost thousands of dollars to sell an average Vancouver house, yet people are sometimes surprised at a

$500 to $600 fee to inspect the same property.

The inspection of an average 2,500-square-foot house by a qualified inspector should cost around $400 to $600.

The inspection should include a detailed written report complete with pictures in electronic form and a

walkthrough with the client. There should also be time for followup discussion. Allow five to six hours for a

thorough inspection.

Bottom line: The purchase of your home is one of the biggest financial commitments you will ever make. Do your

homework, ask the right questions and do not base your selection of a property inspector on price alone.

By Tim Parker | Investopedia

Did you get a brochure in the mail or an email that offered a great way to chop off six to eight years from your home

loan?

The way to do this, according to the brochure, is to no longer pay one monthly mortgage payment but instead, pay

every two weeks. The conventional logic is that increasingly the frequency of the payments doesn't allow interest to

build up and over the course of a 30- or 15-year mortgage that can equal years eliminated from your loan.

Before you sign up for these biweekly payments, let's see if the accepted logic is actually true and if you're really

saving money.

Better Credit?
According to Bankrate, some people believe that making biweeklypayments improves their credit, but this is no

more than a myth according to experts. Using a biweekly payment schedule set up by your mortgage lender puts

you on an automatic withdrawal plan that assures that your payments are made on time. If you're the type of

person who misses payments from time to time because you forgot to write the check, an automatic payment

schedule will improve your credit because of the on time payments, but you can get the same advantage with an

automatic monthly payment too.

Reduces Interest?
Sadly, this is another myth not to believe. Depending on the particulars of your loan, there is a good chance that

the company receiving your mortgage payment isn't the company that holds the loan. Although you're paying twice

per month, the servicer receiving your payment isn't making biweekly payments to the company who owns your

loan. They're likely holding it in an account until the end of the month.

But does this mean that the interest that is building up isn't reduced? Remember that each calendar year has 52

weeks and if each month has four weeks that would only be 48 weeks. This means that biweekly payments won't

consist of two payments each month but instead, 26 half payments which equals the equivalent of 13 monthly

payments in a year. If the math is a little tough to follow, it works like this: Biweekly payments are equal to 13

monthly payments in a year where making traditional monthly payments are equal to 12 payments each year. By

paying an extra month, you're paying extra principal which shaves six to eight years off the life of the loan over

time.

But do you have to make bimonthly payments to do that? You could divide the amount of one month's payment by

12 and add that amount to your monthly mortgage payment. If you're paying $1,500 per month, divide 1,500 by 12

and make your monthly payment $1625. Talk to your mortgage company first to make sure there isn't something

more you have to do to make sure it is applied to the principal amount of your loan.

Don't Make it a Contract
There are two problems with answering the call from your lender for biweekly payments. First, the reason they

want to sign you up for this plan is because there will be a fee and that's more revenue for the bank. They are

charging you to give them a two week loan, according to Bankrate. Second, most consumers already have enough

contractual payment obligations in their life. Especially for those without a lot of financial reserves, it is better to

keep some flexibility in your budgeting rather than committing to the biweekly payments. You can always make

extra payments when you get three paychecks in a month, receive a tax refund or come in to unexpected money.

The Bottom Line
Don't fall for the advertisement to make biweekly payments through a bank or mortgage servicer sponsored plan.

In this case, the benefits do not outweigh the gains.

By Brian Hutchinson

VANCOUVER — There’s a deep, gaping hole in downtown Vancouver and it’s getting bigger. After nearly four

years’ hiatus, work crews have resumed digging. The on-again, off-again 63-storey building on busy West

Georgia Street is on, again. Almost 300 condominiums, starting at $1-million each. A luxury hotel. Amenities

galore. Another indication of the froth that has returned to this city’s real estate scene.

Number crunchers report that housing prices are down slightly in Vancouver this year; in Toronto, the country’s

second most expensive real estate market, prices continue to rise. But economic conditions and logic don’t apply

in all corners of this city.

It still beckons wealthy and foreign investors, people besotted by glass condominium towers. People with cash to

burn on a “safe haven” second home with sweeping ocean and mountain views.

Across Vancouver, stunning new condominium developments are being planned. And selling out, within hours.

It’s reminiscent of the previous decade, when developers set about transforming a town notorious for leaky

condos into a forest of gleaming, premium-priced skyboxes. Buyers seemed prepared to oblige.

Before the economic crash in 2008 (and his death a year later) famed local architect Arthur Erickson put his mark

on the West Georgia Street tower. The building would be defined by its “hyperbolic parabloids,” elements intended

to make the building seem to turn 45 degrees in the sky.

Parabloids weren’t the only hyperbolic flourish. A 7,400-square-foot penthouse suite was offered for sale, asking

price $28-million. Other units, less regal but still grand, were pre-sold at $2,300 per square foot, a Canadian

record. The Ritz-Carlton agreed to put its name on the 24-storey hotel.

Then the markets tumbled and the Ritz waltzed away. Work stopped. Down payments were returned. Joo Kim

Tiah, the project’s Malaysian-born developer, was forced to make adjustments. He added density and efficiencies,

more condominiums and hotel rooms. The City of Vancouver approved his revisions in 2009, but the market had

moved on. The excavation pit was cleared of equipment and that’s how it sat, empty and forlorn.

Last Friday, the workers returned. Should everything go as planned, Vancouver’s turning tower will be completed

in four years. “I want to make sure I get it right this time,” says Mr. Tiah, who is just 32 years old.

It’s still a gamble, of course; building $500-million condominium towers is not for the risk-averse, even here, even

now. Reports that the apartments on West Georgia Street will be priced at $1,500 per square foot “raised a few

eyebrows, for sure,” says Jeff Hancock, senior manager of MPC Intelligence, a local firm that collects real estate

data and performs analyses for banks and other clients. “There’s always room for high-end product, but the

demand is concentrated in certain areas and among certain buyers, such as the Asian-Chinese buying

demographic. The Chinese are very savvy investors, very value oriented with long-term vision. They want

convenient locations that are near transit.”

In Vancouver, such opportunities are rare; when a new project is announced in any downtown location, or beside

one of the city’s elevated transit stations, investors line up to buy. In March, a 415-unit condominium project on the

three-year-old Canada Line sold out within a few hours. Later the same month, all 428 condominiums to be built

inside a new residential-commercial project downtown were pre-sold, again in a matter of hours. The

development will be headquarters for communications Telus, and is expected to cost $750-million to complete.

Site demolition and preparation began in February.

Telus Garden is big and bold, but it’s not a huge stretch for developer Ian Gillespie, president of Vancouver-based

Westbank Development Corp. Among other projects, Mr. Gillespie and his firm are responsible for the ambitious

Woodward’s complex that has changed the face of Vancouver’s notorious Downtown Eastside, and two Shangri-

La hotel and condo towers, one here, the other in Toronto. Impressive feats, especially since several projects

were completed after the economic downturn.

Now comes another audacious project, a 600-unit, 49-storey condo tower with separate retail buildings and a

daycare, designed by a Dane, Bjarke Ingels, one of the most celebrated architects of the day. The buildings are to

be set betwixt traffic viaducts leading to Vancouver’s Granville Bridge, which spans False Creek and connects the

city’s crowded downtown core to its verdant west side.

It’s not an obvious location, but there aren’t many options left. “All the low-hanging fruit has been picked,” notes Mr.

Gillespie. The project footprint “is restricted to a small triangle, tiny even by Vancouver standards,” says Mr. Ingels,

who came up with an interesting solution: The main tower broadens as it rises. “As the tower ascends, it clears

the noise, exhaust and visual invasion of the bridge,” Mr. Ingels explains in Westbank’s rezoning application, filed

with the city in January. “Our design reclaims the lost area as the tower clears the zone of influence of the bridge,

gradually cantilevering out over our own site.”

The project has generated excitement, thanks in large part to Mr. Ingels’ involvement and his aggressive design.

There are skeptics who say it may never be realized. It will, vows Mr. Gillespie.

“People are really tired of the s— that’s being built in this city,” he says. “People want to see something good.” And

he’s betting they’ll shell out for good over bad.

By Carla Wintersgill | Moneyville

I spotted a gray hair in the mirror the other day. It’s not a coincidence its appearance corresponded with my first

morning in our new home.

Last week, my boyfriend, Jesse, and I moved into a tiny two-bedroom, two-bathroom house in East York. Since

buying our first home in late January, we’ve endured a bidding war, a termite scare, a tax surprise, endless

paperwork and spent nearly every dollar we have to grab our own slice ofToronto real estate.

It’s a miracle all my hair isn’t grey.

It’s with 20/20 hindsight I can now see the things we should have done differently to make the process easier on

ourselves.

The first would be to spend more time researching the process.

Buying a home means bouncing between three professionals — realtor, banker and lawyer — whose efforts

you’re responsible for coordinating. It helps if you understand what’s going on. Often we didn’t, instead counting

on the person we were dealing with to prompt us on the next step.

They say that ignorance is bliss, but, in our case, ignorance usually led to a series of frantic phone calls about

something we should have taken care of sooner.

“Do your homework,” Mary Stergiadis of the Canadian Mortgage and Housing Corporation says.

She recommends attending a first-time homebuyers seminar, where potential purchasers are able to meet with

realtors, mortgage lenders and real estate lawyers to get a better feel for what really goes into buying a house. It’s

also a chance to become familiar with the real estate jargon that is a part of the transaction.

“Sometimes mortgage professionals forget that we’re dealing with first-time buyers,” she says.

Before even thinking about dipping your toe in the market, it’s important to understand all the costs of buying a

home and maintaining the property in the future, Stergiadis says.

Websites of organizations such as the CMHC and the Canadian Real Estate Association are filled with factsheets,

videos and toolkits for buyers to adequately prepare themselves for the process of buying a home.

The most embarrassing oversight Jesse and I made during the sale was not realizing there are both a municipal 

land transfer tax (in Toronto only) and a provincial land transfer tax. That’s a $3,400 miscalculation. And, because

Jesse’s name is a on a family property, we don’t qualify for the first-time homebuyers land transfer tax refund.

We also didn’t realize all the land transfer tax would be due to our lawyer before closing. We ended up borrowing

$600 from Jesse’s mother to make our closing costs because a cheque we deposited into our account hadn’t

cleared in time to be included in the money order.

If you think you have enough money saved up for a house, save another $10,000.

Everywhere we turned, there was another service that needed to be paid for: electrician, locksmith, home

inspector, furnace technician, looming property tax, etc. Not to mention the buckets and buckets of paint and

supplies we bought to spruce the place up.

As our bank accounts were dwindling, we could have done more to find potential savings, Stergiadis says. I did

qualify as a first-time homebuyer and could have taken advantage of the Home Buyers’ Plan, which would have

allowed me to withdraw up to $25,000 tax-free from my Registered Retirement Savings Plan.

I don’t have that much in savings, but I could have done what Stergiadis and her husband did when purchasing

their first home. They deposited their down payment in an RRSP, collected a sizeable tax return to help manage

closing costs and buy new appliances, and withdrew the cash when it was time to buy the house. The only catch

to the Home Buyers’ Plan is that the RRSP must be paid back within 15 years.

Very smart. Too bad we didn’t think of that.

Lastly, if we could do it all again, we would try to relax a little bit more. The whole home-buying process was a

series of snafus. But no matter how many mistakes we made, eventually the sale worked itself out. I couldn’t be

prouder of our little house.

I may have grey hairs now, but the tradeoff was worth it.

National home prices show signs of easing

BY JOHN MORRISSY, FINANCIAL POST

OTTAWA — Homes prices edged down 0.2 per cent in February from the month before but were still 6.1 per cent

higher than a year ago, according to a well-watched housing index.

The month-over-month decline was the third such retreat in the past four months for the Teranet-National Bank

National Composite House Price Index, released Wednesday, which measures price changes for repeat sales of

single-family homes.

In January, prices rose 0.1 per cent.

Teranet's report showed prices falling from the previous month in six of the 11 metropolitan markets surveyed.

In Canada's two hottest real-estate markets, prices in Vancouver fell 0.3 per cent, the fifth consecutive decline,

while prices in Toronto rose by just 0.1 per cent. On a yearly basis, however, Toronto prices were 10 per cent

higher.

Nationally, prices were 6.1 per cent higher than a year ago. In January, prices were 6.5 per cent higher.

The data is likely to show up on the radar of Bank of Canada governor Mark Carney, who has repeatedly warned

that Canadians are piling on too much debt as they buy homes whose prices keep rising.

At a House of Commons finance committee meeting Tuesday, Carney warned that house prices in relation to

income levels are now running 35 per cent above historical norms.

Last week, the Canadian Real Estate Association reported that seasonally adjusted sales in March rose 1.6 per

cent from year-earlier levels, although the national average home price declined 0.5 per cent to to $369,677.

"It is a fact that according to CREA (the Canadian Real Estate Association) data for March, five of the 11 markets

covered were rather favourable to sellers (Toronto, Hamilton, Winnipeg, Halifax and Quebec City). Overall, the

Canadian market is nevertheless balanced," said National Bank senior economist Marc Pinsonneault.

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Metropolitan area % change m/m / % change y/y

Calgary / -0.6 % / +1.3 %

Edmonton / -1.0 % / +1.1 %

Halifax / +0.4 % / +2.3 %

Hamilton / -0.8 % / +7.5 %

Montreal / +0.2 % / +4.4 %

Ottawa / -0.4 % / +4.6 %

Quebec / +1.6 % / +5.6 %

Toronto / 0.1 % / +10.0 %

Vancouver / -0.3 % / +6.2 %

Victoria / -1.1 % / -1.7 %

Winnipeg / +0.2 % / +8.2 %

National Composite / -0.2 % / +6.1 %

Source: Teranet-National Bank National Composite House Price Index