Mortgage Basics 101
Have you recently stepped into the exciting world of homeownership? Congratulations! But wait, are you feeling a bit overwhelmed by the various mortgage options available in Canada? Don’t worry, you’re not alone! The real estate market can be quite different from province to province, and there are many factors to consider. That’s why we’re here to help you navigate the mortgage landscape and explore the different options available. Whether you’re looking for variable rates or fixed terms, there’s a diverse array of Canadian mortgage options to suit your needs and help you achieve your homeownership dreams. Let’s dive in!
Fixed-Rate Mortgages
Many Canadians prefer fixed-rate mortgages when buying a home because they offer stability and predictability. When you choose a fixed-rate mortgage, your interest rate stays the same throughout the loan term, which is typically one to ten years. This consistency can give you peace of mind because your monthly mortgage payments won’t change, making budgeting easier and more manageable.
Keep in mind that fixed-rate mortgages usually have slightly higher initial interest rates than variable-rate mortgages. However, if you’re looking for financial security and stability, a fixed-rate mortgage could be the perfect option for you.
Variable-Rate Mortgages
On the other hand, variable-rate mortgages offer flexibility and could potentially save you money in the long run. With a variable-rate mortgage, your interest rate will change depending on the prime lending rate set by the Bank of Canada. This means that your monthly payments may vary, but it also means that you could benefit from lower interest rates during periods of economic downturns.
Variable-rate mortgages usually have lower initial interest rates than fixed-rate mortgages, which could be a great option for those of you who are comfortable with a bit of financial uncertainty. If you’re looking to take advantage of potential interest rate decreases, a variable-rate mortgage could be the way to go.
Open vs. Closed Mortgages
Another important distinction to consider when exploring mortgage options in Canada is open versus closed mortgages. Open mortgages allow you to pay off your mortgage partially or fully without any penalty at any time during the term. They provide more flexibility, but usually come with higher interest rates.
Conversely, closed mortgages offer lower interest rates but have some restrictions. For instance, you may have to pay a penalty if you pay off the mortgage before the end of the term. Ultimately, the choice between an open or closed mortgage depends on your financial situation and how much flexibility you require.
Conventional vs. High-Ratio Mortgages
Additionally, Canadian home buyers must decide between conventional and high-ratio mortgages. With a conventional mortgage, you’ll need to put down at least 20% of the purchase price as a down payment. But with a high-ratio mortgage, you can make a smaller down payment, which is great news if you haven’t saved up a lot of money. The only catch is that you’ll need to get mortgage loan insurance through either the Canada Mortgage and Housing Corporation or a private insurer. Keep in mind that while high-ratio mortgages make homeownership more accessible, they do come with additional costs in the form of insurance premiums.
Canadian homebuyers are fortunate to have a variety of mortgage options tailored to their individual needs and preferences. Whether you want stability, flexibility, or affordability, there’s a mortgage solution out there that can help you achieve your dream of homeownership. To make the best decision for your financial situation and long-term goals, it’s important to understand the differences between fixed-rate and variable-rate mortgages, open and closed mortgages, and conventional and high-ratio mortgages. Don’t worry though, it’s not as complicated as it sounds! Just remember to chat with a mortgage professional who can help you explore all the available options—including financing programs provided by the Government of Canada—and find the best mortgage solution for you. With the right support and knowledge, your house hunting journey can be a happy and successful one!
Understanding Home Valuations
The value of your home is a critical factor of homeownership, from potential resale to financial planning. Understanding how home valuations work is essential for homeowners planning to sell a home, prospective buyers, and anyone involved in real estate transactions. In this comprehensive guide, we’ll delve into the various methods used to determine a property’s value and provide insights into factors that can influence these valuations.
Market Comparisons
One of the most common methods used to assess home value is through a comparative market analysis (CMA). Experienced REALTORS® analyze recent sales of similar properties in the same neighbourhood to estimate how much your home is worth. Factors such as size, condition, and specific features are considered during this process. Understanding how your home stacks up against others in the market is crucial for a realistic valuation because it offers a solid insight into what buyers are willing to pay.
Cost Approach
The cost approach involves evaluating the cost of rebuilding your home from scratch minus any depreciation. This method is often used for newer properties and is based on factors such as construction costs, land value, and depreciation due to wear and tear. While it may be less accurate for older homes, it can provide a solid foundation for understanding the minimum value of your property.
Income Approach
Primarily used for income-generating or investment properties, the income approach assesses a property’s potential income. This valuation method is commonly applied to rental properties and commercial real estate. Investors and property owners can use this approach to estimate the property’s value based on what a buyer can expect to make with the property in their portfolio.
Local Influences
Understanding the local real estate market is crucial when determining a home’s value. Factors such as economic trends, job markets, school quality, and community development can significantly impact how much a property is worth. Stay informed about changes in your neighbourhood, as they can affect the perceived value of your home.
Home Improvements
Investing in home improvements can enhance your property’s value. However, not all renovations yield the same return on investment. Understanding which home renovations add the most value, such as kitchen upgrades or bathroom remodels, can help you decide where to focus your efforts.
Timing and Market Conditions
The real estate market fluctuates, and timing is crucial in determining your home’s value. Economic conditions, interest rates, and supply and demand contribute to market fluctuations. Knowing these factors can help you time your property sale or purchase to maximize your returns.
Understanding home valuations is a vital aspect of responsible homeownership. You can make informed decisions about your real estate by familiarizing yourself with the methods used to assess property values and considering the various factors that influence them. Whether you’re looking to sell, buy, or stay informed about your property’s worth, this knowledge empowers you to confidently navigate the complex world of real estate.
6 Saskatoon Festivals to Keep You Busy for the Rest of the Summer
Summer is always a season of spending time with friends and family, soaking up the sun, and taking a break from the stresses of the school year. As we move into August, though, the initial excitement from the start of the season starts to wear off. We’ve settled into the routine of it all and boredom has taken hold to a point where many of us can’t wait for school to start again just so we have something to do!
Don’t let monotony get the best of you this summer. Here are 6 incredible festivals happening right here in Saskatoon to keep you and your family entertained right up until Labour Day:
The 2023 Saskatoon EX
August 8 – 13, 2023
Arguably the event of the season, the Saskatoon EX is the largest summer festival in Saskatchewan. Taking place at Prairieland Park, there is something for everyone to enjoy, including tasty treats, thrilling rides and games, and an awesome setlist of performers. Some of the highlights this year include the classic Demolition Derby on August 13th and concerts from the Arkells on August 8th, Marianas Trench on August 9th, and Dallas Smith on August 13th. Plus, many fan favourites return—including the Pig Races, Superdogs show, magicians, hypnotists, and more!
Click here for more details about the 2023 Saskatoon EX
Shakespeare on the Saskatchewan
Closes August 20th, 2023
A favourite of theatre-lovers, Shakespeare on the Saskatchewan puts on annual summer performances of Shakespeare’s works and tributes to them right on the waterfront of the North Saskatchewan River. This year’s productions include The Most Excellent and Lamentable Tragedy of Romeo + Juliet and As You Like It. The weeks are counting down on these incredible shows, so don’t miss your chance to take them in before they are gone!
Click here for more details about the 2023 Shakespeare on the Saskatchewan
Rock the River
August 18 – 20, 2023
Rock the River is one of Saskatoon’s most underrated summer festivals, taking place right outside the iconic Bessborough. It offers 3 days of awesome outdoor performances from Canadian classic rock bands. This year’s performances include Tom Cochrane on August 18th, the Crash Test Dummies on August 19th, and A Flock of Seagulls on August 20th—plus so many more!
Click here for more details about the 2023 Rock the River
The Fringe
August 3 – 12, 2023
The Saskatoon Fringe is a 10-day festival celebrating the vibrant arts community with incredible busking performances, artisan alley, carnival games, theatre activities for kids, and more. This year, you can find the festival in W.E. Graham Park and on 11th Street E, with performances taking place at The Refinery, Broadway Theatre, and Cosmopolitan Senior’s Centre. Fringe is always one of our favourite summer events in Saskatoon, and we continue to be blown away each year by all the amazing talent found right in our city.
Click here for more details about the 2023 Saskatoon Fringe Festival
Ukrainian Day in the Park
August 26th, 2023
Saskatoon is home to a large Ukrainian population and has been hosting its Ukrainian Day in the Park for over 18 years! Head out to Kiwanis Memorial Park on August 26th for a full lineup of stage performances, tasty food, activities for kids, and more. One of my personal favourites are the Ukrainian dancers—seriously…how do they jump so high?!
Click here for more details about the 2023 Ukrainian Day in the Park
Nutrien Fireworks Festival
September 1 – 2, 2023
The Nutrien Fireworks Festival is easily the best way to bid farewell to the summer before the school year starts again. Each year it brings together close to 65,000 people to celebrate in River Landing and Rotary Park with entertainers, vendors, activities, and, of course, fireworks! Their carefully curated fireworks displays synchronized to music are breathtaking and will stick with you for months to come.
Click here for more details about the 2023 Nutrien Fireworks Festival
Saskatoon is renowned for its community and culture, so why not use that to your advantage in staving off summer boredom? Discover all the fun and celebration to be found at one of these incredible summer festivals and make the most of these last few weeks!
Your Guide to Buying a Fixer-Upper
If you’ve ever been sucked into an HGTV binge watching rabbit hole, there’s a good chance you’ve toyed with the idea of buying a home that needs a little TLC. Surely if the perfectly manicured lady in the stilettos and a sundress can rehaul a graffiti-laden hovel into a cozy family home, surely you can too. However, before jumping into buying a fixer-upper, it’s important to weigh the benefits and drawbacks you can expect.
The Benefits of Buying a Fixer-Upper
Buying a fixer-upper home may seem like a daunting task, but it can also be a great investment for many reasons. Not only can it be more affordable than buying a move-in ready home, but it also allows you to customize and personalize your home to your liking. Not to mention, you’ll get the satisfaction of transforming a one run-down property into your dream home!
Lower Price Point
One of the most significant benefits of buying a fixer-upper home is the potential for a lower price. Move-in ready homes usually don’t need many repairs or updates, if any, and their market valuation will take that into consideration. Homes in need of obvious repairs or renovations will also have prices to reflect that, as well. This can help you to save a significant amount of money in the process of buying a house, making homeownership that much more attainable. You may even have the ability to negotiate an even lower price based on necessary repairs, especially when backed up with a report from a home inspector!
Customization & Personalization
When buying an existing home, customization and personalization become more limited than buying a new construction home. However, if you are buying a home already in need of significant renovations and repairs, you get to enjoy a lovely middle-ground between the two property types.
With a fixer-upper, you have the freedom to choose finishes, fixtures, and layouts along the transformation journey, without having to compromise on someone else’s design choices. This can result in a home that perfectly fits your style and needs without having to break new ground.
The Drawbacks of Buying a Fixer-Upper
Despite the attractive advantages, it is important to note that buying a fixer-upper home is not without its downsides. Most obviously, the required repairs and renovations can be time-consuming and costly. And if you are buying a home to live in, you’ll have to decide whether you want to wait and move or live in a construction zone for an extended period, which can be very stressful. You also need to consider the extent of work that is needed and whether you have the skills and resources necessary to tackle them.
If you are up for the challenge and willing to put in the work, buying a fixer-upper home can end up being more than worth it. Not only could you potentially save money in the long run, but you can also create a home uniquely tailored to your preferences and lifestyle. Plus, you may even yield a healthy return on your investment when it comes time to sell. Remember: people make a living out of just flipping houses—there must be something to it!
7 Tips for Saving Energy At Home
With the cost of living continuing to climb with inflation, many of us are looking for new ways to save on our expenses. Sure, you can cut back on the daily Starbucks visits and finally cancel that one subscription you aren’t even using. However, neither will cut down on the one bill everyone dreads each month—power.
Electricity has undoubtedly made our lives much easier but has also made them much more expensive. However, there are many ways we can save energy at home to lower that power bill and keep some extra cash in our pockets.
1. Optimize Heating & Cooling
The weather in Saskatchewan is known for the extremes—our summers are scorching, and our winters are freezing. This means we’ve all become very familiar with our homes’ heating and cooling systems. While it’s nice to step into an arctic-level A/C chill in the summer or a roasting warmth in the winter, this can also quickly become one of the most significant contributors to your monthly energy bill.
To save energy at home, set your thermostat at an efficient temperature between 21 and 25 degrees Celsius. If you can, program your thermostat to automatically adjust based on your schedule, turning it off while you are away and turning it back on just before you get home. And use natural ventilation when you can, instead of relying on air conditioning. Open windows and use the ceiling fan to cool your space rather than the whole house. Or even consider soaking in a cool summer evening breeze in your backyard oasis!
2. Prevent Temperature Loss
Did you ever accidentally leave the door open when you were younger, only to get the classic lecture from your dad about “Not heating the whole neighbourhood!”? Well, now that you’re paying the power bill, I’m sure you don’t want to be either. Bring in a home inspector to ensure your home is properly insulated from top to bottom to prevent temperature loss. Also, take time to seal any gaps and cracks around windows, doors, and vents to minimize drafts and maintain a consistent indoor temperature.
3. Save Energy on Lighting
Lighting can be another big energy consumer at home, but thankfully it can be relatively easy to fix. Use more energy-efficient light bulbs, like LED or CFL bulbs, which use far less energy than traditional incandescents. As a bonus, they tend to last longer, too!
Remember to turn off lights when not in use, and make the most of your natural light by opening curtains and blinds when possible.
4. Energy-Efficient Appliances
While replacing whole appliances can seem like an expensive way to save energy at home, the return on investment is often relatively quick. When looking for new appliances, look for those with high energy efficiency ratings and an ENERGY STAR label. Appliances consume a ton of energy, but these ones are proven to use far less to save you money in the long run.
5. Unplug Electronics When Not in Use
Many electronics continue to use power even when they are turned off. Save more energy at home by unplugging chargers, TVs, computers, and other devices when they aren’t being used. You can even simplify this process by using power strips with switches to disconnect multiple devices simultaneously.
6. Make Laundry More Energy Efficient
Use less energy at home by making your laundry more efficient. Wash clothes in cold water whenever possible and only use as much water as you need for the size of the load. Only run the washing machine—and the dishwasher, for that matter—with a full load to maximize energy efficiency.
7. Plant More Trees
Not only are trees a great way to boost your home’s curb appeal, but they are also an excellent tool for using less energy! By planting trees strategically around your home, you can provide more shade during the hot summer months and shelter from cool winter winds. This reduces your need for excessive cooling and heating throughout the year, saving you energy and money.
Though these may seem like small changes toward saving energy at home, they can add to significant savings over time. Not only does this benefit your finances, but it also has excellent environmental benefits. Plus, it can even snag more value for your home when it comes time to sell!