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The Financing Condition - Do You Need It?

As most of you know the 2020-2021 market has been something of a rollercoaster, especially for buyers. With almost every home selling with multiple offers and over asking, the financing condition has become a large topic of conversation between my clients and I. My sellers ask why it is necessary if the buyers are stating they are already pre-approved and qualified and my buyers are getting frustrated when losing to a lower offer because the other offer did not have a financing condition written in. Today, I am going to talk about the importance of the financing condition if you are taking out a mortgage on a home and why I still strongly encourage it, even in this market.


First off, lets start by talking about what the financing condition is. The financing condition is there to protect the buyer in the occasion that the lender (bank, credit union etc.) or the mortgage insurer (we will go in more detail about this later) does not approve the buyer for the amount necessary for them to purchase the property. Without this condition, if the lender does not approve the mortgage, the buyer still technically bought the property under contract and is at risk of losing their deposit and even more, the potential of being sued by the seller for breaking contract. Usually deposits range from $10,000.00 to $20,000.00 here in Manitoba but in a market like we are in, some buyers will increase that amount to make their offer stronger, thus resulting in a big hit to the pocket book if financing doesn`t end up working out.


Now most buyers are probably thinking, “Well that all sounds a little scary, but I`m pre-approved so why wouldn`t the lender approve me?” There are many reasons why even after getting your pre-approval that financing can still fall through and it is very important that you understand all of these risks before writing an offer without the financing condition in it. 


Buying a Home in Winnipeg ManitobaAppraisals: Banks and other lenders rely on the “appraised value” of a home to deem if it is worth the amount you are asking them to lend you. They will often times send in their own appraiser to the property after the offer has been accepted to determine its value as they want to make sure if you default on payments, they will recoup their investment. In a market where buyers are offering 80K over the asking price, there is always a chance that the appraised value and the amount offered do not match and, in that case, it would be the buyer’s responsibility to make up the difference in value IN CASH. Unfortunately if there is no financing condition and the buyer does not have the cash to make up that difference the buyer will not be able to come up with the cash necessary to close resulting in a loss of their deposit and once again the chance of being sued by the seller for breaking contract.


Changes in financial buying power: Buying a home can be long process for some and life still continues to go on while you are in that process. Unexpected bills, job loss and large purchases are just some of the reasons why your buying power may have changed between being pre-approved and getting an accepted offer. Just because the bank told you 6 months ago that you were pre-approved for a certain amount does not mean that after purchasing a brand-new vehicle that they will still lend you that same amount of money. I always recommend getting a new pre-approval every 3 months to ensure you are still qualified for the necessary amount to purchase the property we are offering on.


Interest Rates: Most lenders will lock you in at a certain interest rate for 90 days once you go through the process of being pre-approved but like I had just mentioned, sometimes the process can take longer. If interest rates have changed between when you were first pre-approved and when you receive an accepted offer you may no longer be qualified for the amount necessary to purchase the property you offered on, ESPECIALLY if you are writing at the top of your budget.


New “Stress Test” guidelines: Have you ever heard of a stress test? This is a “test” in where a lender will have to qualify you at a higher interest rate than you are currently being offered so that if interest rates rise in the future you will still be able to afford your monthly payments. During busy markets, like the one we just experienced, the government may impose an increase to the amount they are testing you at to limit the buying power of buyers so that the sale prices of homes can equalize or level out a little to keep the market more consistent.


Mortgage Default Insurers: This is a big one. Mortgage default insurance is required by the Government of Canada when a home buyer is putting less than the 20% down payment typically needed to qualify for a conventional mortgage. If you are putting down less than 20% not only does the lender need to approve your mortgage but the mortgage default insurer does as well. Mortgage default insurance insures the lender NOT the buyer in case of default. There are 3 mortgage default insurers in Canada; CMHC (Canadian Mortgage and Housing Corporation), Sagen (formerly Genworth Canada) and Canada Guaranty. Each one of these insurers have different qualifications on which properties and which buyers they are willing to insure and which they wont and for the most part we are completely blind to what those qualifications are. In my experience, this is where financing falls through the most often and unfortunately the hardest to predict. I have seen them deny financing based on outdated electrical, shared well systems, location, asbestos and a multitude of other factors that we cannot control.  The financing condition really comes into play here.


Competing Offers in Winnipeg

Due to the market we are experiencing I am unfortunately seeing more and more buyers writing offers without the financing condition even though they are taking out a mortgage. As I have now explained, this can be a huge risk to the buyer but also to the sellers who may need to put their home back on the market if the buyer ends up not being able to close. If you are selling your home and there is an offer without a financing condition make sure your agent is asking the right questions; are the buyers taking out a mortgage or paying cash, if they are taking out a mortgage, do they have a back up plan if they are not approved? How much are they putting down?  Have they been pre-approved? These questions can help you assess the risk involved in accepting that offer.  Also, you will want to make sure they have put down a big enough deposit to cover any costs that may arise from the deal not closing due to the default of the buyer, this is especially important when you’ve received multiple offers as you may be declining offers of more qualified buyers that have financing conditions.


Now buyers, there are ways we can still write a strong offer even with a financing condition. Making sure you have an up to date pre-approval is a must. We can include your pre-approval letter in the offer so that the sellers are able to see you have done the work and are qualified to purchase their home. We can also make the deadline for financing as short as possible by staying in close contact with your mortgage specialist/broker prior to writing an offer. Here in Manitoba we typically see financing deadlines within 2-3 business days of the offer being accepted, although I have had some superstar brokers get it done in less than 24 hours! We can also write in detail (and should) a summary of how much you are planning on putting down vs how much you will be taking out as a mortgage. The more information the seller has the more confident they will be moving forward with your offer.


After everything I just touched on, unfortunately it might still come down to removing your financing condition to get you the house of your dreams. If that is the case, you now know all of the risks involved in doing so and you can be prepared to make an educated decision on how much risk you are willing to take. I always recommend having a back up plan in the event financing doesn’t go your way but sometimes you need to just take the risk in life!



Best real estate agent in River Heights Winnipeg#AgentAshton


Ashton Augert

Phone: (204) 781-1767
Email: Ashton@JenniferQueen.com

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How to Win in a Multiple Offer Scenario

Advice on how to get an accepted offer in a CRAZY seller’s market.


If you have been following the real estate market in Winnipeg you know it is a seller’s market. There is a lack of inventory and an oversupply of buyers, likely a response to extremely low interest rates. If you have recently sold your home or plan to do so soon, congratulations things are looking great for you. On the opposite side of the spectrum, if you are a buyer trying to get into the market, I have some tips on what you can do to maximum your chances of getting an accepted offer without sacrificing everything!



Working with an agent you trust

This is always #1 in my books. I feel like finding the right agent is almost the same as find your soulmate – I did say almost! Working with an agent you trust and believe in will make the already stressful process of buying that much less stressful. Your agent will be able to give you up to date information about the market and/or specific listings, they will manage their time and yours efficiently, walk you through the process of buying (if you are new to real estate), give you tons of information about homes you are interested in. An agent has the knowledge and experience to tell you the positives and negative aspects of the house, things that might need maintenance soon, what comparable homes in the neighbourhood have sold for, etc. In this crazy market it really is in your best interest to find the right agent for you! So... take the time to link up with an agent, do some research, ask questions, and finally get to shopping!


Pre-approval is Key

Getting pre-approved from a reputable bank or mortgage broker is one of the smartest things you can do to increase your chances of getting an accepted offer on a home you love. If you were to make an offer on a property and you are not pre-approved for, the homeowner may assume you were not a serious buyer and might overlook your offer entirely. If you want to be competitive in a seller’s market a pre-approval is a must. Once you have received your pre-approval, your mortgage broker should provide a letter indicating the details of your pre-approval which can be included with the offer to show proof that you have done your due diligence. As Realtor, we advise getting a pre-approval before your start your search. So... if you are looking to buy a house soon and do not have a pre-approval GET ONE!


Home inspections in Winnipeg ManitobaWrite Your Best Offer First.

In a seller’s market a buyer should be doing any and everything they can to increase their chances of getting an accepted offer. In some cases, as a buyer, you might be competing against 40+ other offers so writing your best offer is extremely important because usually you do not get a second chance to alter the offer once the selling agent has started presenting. A couple of things you should consider before you write an offer.  Is a home inspection a must? Most agent would strongly encourage their clients to complete a pre-inspection. It is extremely valuable to be well informed of the condition of the house you are interested in. I would never tell someone to not do a home inspection. I learn something at every home inspection I attend, and think they are fantastic. In a seller’s market it is more challenging to get an accepted offer if you include a post-purchase inspection as a condition. So that is where the PRE inspection comes in. This is when a home inspector will inspect the home you are trying to purchase before you submit the offer. Yes, that means spending the money on a home inspection before the offer is accepted but again it is all about writing the best offer you can. Pre-inspections may cost between $200 to $300 up front, but for the piece of mind, and for the sake of a strong offer, I would say it is worth it. The second point is an easy one – do not ask for the extras. If the house, you are wanting has a freezer and an extra fridge and it is not included in the listing – don’t ask for it. The third point is if you can write a cash offer DO IT. An unconditional offer is very appealing to a seller and greatly increases your chances of getting an accepted offer.  However, this is something we would need to discuss further prior to writing as many of us can not afford to do pay all cash for a house. 


Deposit Amount

A deposit is to be included along with the offer. It forms part of the purchase price. The amount suggested will vary based on the property and situation in which you are offering. However, the amount you provide shows how serious you are as a buyer because this money ultimately protects the seller if the buyer decides to walk away from the deal after conditions have been satisfied. So…the larger the sum provided as a down payment the more enticing your offer will be to the seller.

 

Buying a house in this seller’s market is tough, but I encourage you to hang in there. Try some or all of these tips to help you stand out from the competition and put you that much closer to an accepted offer! Happy House Hunting!


Top realtor in Winnipeg Amy McDermid

#AgentAmy


Amy McDermid

Phone: (204) 470-5356
Email: Amy@JenniferQueen.com

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Buying and Selling in a Pandemic World

2020 has been an absolutely strange year.  At the beginning of the year (in Winnipeg) at least there were rumblings of the Coronavirus in Asia and I don’t think we were prepared for what the next few months would bring.  With early spring/summer seeing the first cases in Canada and Manitoba there were predictions for the Winnipeg real estate market of a complete decline in sales and home values.  From this REALTOR®’s perspective that couldn’t have been further from the actual scenario.  With homes consistently selling for over list price in multiple offer bidding wars throughout the city it became clear early on that this year would not be the same as many previous.


Winnipeg Realtors Helping in Bidding WarsAs an observation on the market I believe a large proportion of the reason for these bidding wars has been a higher number of people who are currently in a smaller property, whether that be renting an apartment, or just living in a smaller home have realized that they wanted something with some more space to allow for working from home, home schooling and general isolation due to our situation with the coronavirus. This has brought out a massive demand for similar property options around Winnipeg, while the amount of homes actually going up for sale has decreased approximately 30% on average compared to 2019.  This has limited the amount of options available to the people looking to purchase and has created our heated bidding and offer system, and also increasing home prices significantly versus the same time last year.


That being said we have also seen issues with appraisal values due to the overpayment of properties, we have seen plenty of banks who offered pre-approvals not give financing to the same clients after an offer was presented on homes.  It seems like even though there is demand for homes there are still barriers to entry into the market during this pandemic. 


Some things to note during this pandemic are that the real estate industry is listed as an essential service and as such we are still operating, but not as usual.  Some of the new systems in place during this pandemic include new guidelines and rules for how to view a property, who can view a property and also when you can view a property.  Below are some guidelines for potential purchasers or sellers that have changed due to the Coronavirus:


1. PREAPPROVAL

  • If you want to tour a property, ensure you have a valid, recent (withing the last 1-2 months) pre-approval in place.  Agents are required to pre-qualify buyers before showing them a property and it is in your best interest to know what you can afford especially with all of the bidding wars happening on properties

2. WHO can view a home?

  • The Winnipeg Realtors rules for viewing homes have changed and only 2 people (not including the realtor) are allowed in a home at a viewing.  Also, only the people who are going to be on title for the home should be viewing the property.

3. When can you view a property?

  • With the new COVID-19 rules we as realtors are not allowed to overlap any showings with other groups.  This means that now you are required to book a viewing (in 30 min intervals) and to go through the property as quickly as possible.  The goal is to limit the amount of touching and overlap between people in any given property.

4. Additional requirements

  • Some additional requirements for viewing properties include a requirement to fill out a COVID-19 declaration form.  This for is required for EACH viewing of any home. If you view 5 homes you need to complete 5 disclosures.  These ensure that you are healthy, have not had an opportunity to trace infect yourself or anyone else if you have been exposed to the coronavirus.


The big things to take away from this new system is to get yourself pre-approved prior to any requests with a realtor, ensure that if you are sick you are not viewing properties, and to not unnecessarily tour properties during the pandemic.


If you have any real estate related questions about the new rules, or want to know any other information on the current market feel free to contact us. 


Top Realtor in Winnipeg Logan Queen#AgentLogan


Logan Queen

Tel: (204) 226-1261
Email: Logan@JenniferQueen.com

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Home Buyer’s Remorse and How to Avoid It

The 2020 spring market is about to ramp up and the Jennifer Queen Team (JQT) wants to help protect you and your investments. We pride ourselves on helping people find their dream home, whether it be your first home, or you’re downsizing or upgrading. Whatever situation you’re in, we don’t want you to fall victim to the dreaded home buyer’s remorse. So this month Agent Amy has come up with 8 ways to help avoid home buyer’s remorse.


Let’s start at the beginning… What is Buyer’s Remorse?


Buyer’s remorse is the sense of regret after having made a purchase. We usually see regret more frequently after making a significant purchase, such as a home or vehicle.  Sometimes we find buyers experience remorse because they have purchased something they can’t really afford, including finding themselves in a significant amount of debt to cover the cost of an item. However you can be responsibly managed with a modest mortgage that properly suits your budget. Keep in mind that buying a house is an exciting decision and is nothing to be afraid of if you are well informed and have the proper support where needed.


Understanding the Buying Process

The first step in avoiding buyer’s remorse is understanding the home buying process. The more information you know before committing to a purchase, the less chance of you finding out something you don’t agree with after closing. Knowing what to look for, questions that should be asked and common technical oversights can be addressed with experience. This is where the JQT comes in….

  • FIND A GOOD REALTOR. If you are reading this blog (which you are) then look no further. You have found the best real estate team in Manitoba (that’s our opinion anyways). We go above and beyond for our clients. We have put together a detailed home buyer’s guide to help inform buyers of the process. Want one? Just ask. We’d be happy to provide you one. We have hard copies as well as digital copies.
  • Once you have found a Realtor, ask to set up a meeting. It doesn’t have to be formal just an afternoon coffee will do. At the JQT we truly enjoy our jobs and we would love nothing more than for you to join us for a cup of coffee, where we can talk about something we are passionate about, real estate, and we’re sure you’ll learn a thing or two! It’s a win win!


Examining the Financials

Financials for Home BuyersThe second step is another important one. It is imperative that you obtain a trusted mortgage broker. This can be a bit daunting because just like Realtors, there are lots of mortgage brokers out there. The JQT has compiled a short list of mortgage brokers we have worked with in the past and would recommend to all our new clients. These mortgage brokers are trusted, reliable people who will work hard for you and will do their very best to help you turn the key on a house you love. If you’ve found a mortgage broker you trust, we have no problem working with them as well. Finding the right mortgage broker brings confidence and comfort during a crucial time of the home buying process. Arranging a pre-approval prior to starting your home search will alleviate stress and anxiety during the process.


Patience and support

If you’re anything like me, maintaining patience is a struggle. Once I commit to do something, I want it done now!! As mentioned previously, buying real estate is an exciting time, it’s important that you are able to keep your composure and stay patient. Personally, I found support to maintain my patients in my husband. We are very opposite in this respect. If you can relate with my lack of patients, you might consider bringing someone else along. Whether it be a parent, trusted friend, boyfriend/girlfriend etc. Someone that is willing to see properties (preferably all of them) and have an unbiased opinion, might be a great option for you. If you need someone like this but don’t have anyone in the city, as your Realtor we can play that role, just say the word! Remember that buying a house is a major decision even though there are times the process may seem rushed, take your time and ensure that you are ready and comfortable with the decision, and keep in mind sometimes this can take a while. The JQT is here to wait with you.


Home Buying Tips to Avoid Buyers RemorseThe List - Want vs. Need

A great way to start your home buying search is to come up with a wants and needs list. This one is pretty self-explanatory, but shouldn’t be taken lightly. Write out a list of things you can’t live without -NEEDS- and things you would like to have but could live without -WANTS. If the patience step gives you anxiety you may want to bring your list with you to showings or reference it on a regular bias. As you view houses, you may become inspired to add to your list, be sure to reflect back on your Needs vs. Wants. This will help prioritize the important items to consider in the house.


Home Inspection

A home inspection is a great resource in helping minimize buyer’s remorse. It allows you to gain loads of knowledge about your future home before you have completely committed to it. Including a home inspection as a condition within your offer will help you get a thorough view of the property, but also allows you to terminate the contract if you need to. I usually tell my clients a home inspection is a great way to become acquainted and well informed about the property and also helps you make a “to do list” that every homeowner has. Whether deficiencies need to be address ASAP or it is something you need to budget for in the future, home inspection can help prioritize the “to-do’s”. If you are finding yourself in competition with another buyer and feel that writing in a home inspection hinders your chances of getting the property, I would suggest you request to conduct a home inspection prior to writing an offer. Yes, it cost money and the owner my not accept your offer, but I feel a home inspection is worth the risk.


Need a great home inspector? We have a short list of great home inspectors we use regularly. Just ask us for our Recommend Service Supplier List. We’d be happy to share.


Stick to Your Budget

Once you have taken the time to meet and commit to a mortgage broker. Make sure you take some time and go over your expenses and decide what an appropriate budget is for you, and stick to it! Just because the bank says they will give you a mortgage for $400,000, doesn’t mean that’s what you’re comfortable spending. Sit down and thoroughly go through your expenses and come up with a mortgage payment you are comfortable with (considering other bills…) and stick to it.


ASK QUESTIONS!

I truly believe there is no such thing as a stupid question and if you know me at all, you will know that I follow this mantra as well. I ask a lot of questions. If I don’t know something I ask. And that’s what you need to do as well, no judgement here. If you don’t know something about the buying process, ASK! If you don’t know something about the house, ASK! Don’t feel embarrassed that you don’t know something – real estate is what I do for a living, take advantage of experience and expert advice. I am a modest person and recognise I don’t know everything, however I have access to my team, colleagues and other experts in the industry and I will find out. Be reassured that knowledge will give you confidence to buy, the JQT is here to help you through this process every step of the way. 


The spring market is going to be heating up very soon (excuse the pun) and we are trying to make sure clients are ready and educated. Our job is to assist you. The last thing we want is for you to regret the major purchase we just helped you through. So take your time, go step by step and enjoy the process. While the process of buying a home can be stressful, it’s a very exciting time and we want you to remember it as such.


Happy Hunting!


Realtor In Winnipeg

#AgentAmy


Amy McDermid

Sales Associate

Phone: (204) 470-5356
Email: Amy@JenniferQueen.com

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Client Appreciation Party

They’re here! They’re here! All of your photos with Santa, Anna, and Elsa from the Queen Team Client Appreciation event are ready for download courtesy of Brian at Empire Photography!  



Realtors in Winnipeg ManitobaThanks again to all our clients for coming out to Landmark Cinemas, Grant Park to make this a memorable day! It was so wonderful to see all of you, enjoy some treats, watch a couple good movies, and catch up. We were completely overwhelmed by the positive response and it has left us wanting to do this again, perhaps more than once a year!  Thank you as well to everyone that brought a non-perishable food item for Winnipeg Harvest.  Your donations led to a truck full of food for some very grateful families.  Thank you again to you all.  We truly do believe that we have the best clients, and you all proved that yesterday! We love you! We’ll see you all again next year!


Realtors in Winnipeg Manitoba


Agent Ashton Augert in Winnipeg ManitobaRealtor Client Appreciation PartyRealtor Amy McDermid Top Real Estate Team


Top Real Estate Agent in Winnipeg#AgentJen


Jennifer Queen

Phone: (204) 797-7945
Email: Jennifer@JenniferQueen.com

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Everything You Need to Know About the New First Time Home Buyer’s Incentive

The new First Time Home Buyer’s Incentive (FTHBI) came into effect in September 2019. The program is aimed at making it easier for young people/eligible Canadians to buy their first home by lowering the monthly mortgage payments. The federal government agreed to a $1.25 billion CMHC First-Time Homebuyer Incentive over three years. It will provide 5% of the cost of an existing home up to a maximum of $500,000 and 10% of the price of a new home. While it sounds like the federal government is providing an interest-free loan, know that they also secure shared equity in your home as it goes through gains and losses. This means the amount paid back to the government will fluctuate based on how much your home increases or decreases in value.

There are a few notable conditions to watch out for;

  • Applicants must have a down payment of at least 5% and no more than 20%. (CMHC insurance must apply)
  • Household income must be less than $120,000
  • The mortgage cannot be more than four times the homebuyers' household income.

Buying Your First Home in WinnipegFor example, if you buy a $400,000 home with a minimum down payment of 5% ($20,000) you would be eligible to receive $40,000 for a newly constructed home through CMHC. As a result, instead of taking out a $380,000 mortgage, you will borrow $340,000. On a mortgage at 3.5% the monthly savings over the 25-year amortization period is more than $200.

  • Applicants must not have owned a house in the last four years – exceptions will be made for those in a "breakdown of marriage or common-law partnership."
  • The loan must also be paid back under two circumstances:
    • if you sell your home;
    • or at the end of 25 years

The current mortgage stress tests for both insured and conventional mortgages remain intact, however, as CREA states in their federal budget bulletin, “The government will continue to monitor the effects of its mortgage finance policies and adjust them if economic conditions warrant.”


In addition to the FTHBI the Liberal government also increased the amount first time buyers are allow to withdraw from their RRSP for a down payment. A $10,000 increase in the federal Home Buyers' Plan to allow a maximum withdrawal of $35,000 from one's RRSPs to put towards a down payment on a home. This allowable withdrawal for first-time buyers has also been extended to apply to Canadians after experiencing a marital breakdown in marriage or common-law partnership. The same repayment schedule applies with home buyers required to pay back their RRSPs over 15 years. 

First Time Home Buyers Incentive

Frequently asked questions about the new incentive:

What properties are eligible?

The new incentive is to help first-time homebuyers/eligible Canadians purchase their first home. Eligible properties include: new construction, re-sale home and mobile/manufactured homes. The residential properties can include up to 4 units. The types of properties include: single family, semi-detached (i.e. side by side), duplex, triplex, fourplex, town houses, and condominium units. The property must be located in Canada and must be suitable and available for full-time, year-round occupancy.

Can I buy a house using the program and rent it out?

No. The incentive is to help first-time homebuyers/eligible Canadians purchase their first home with the intent to live the property. Investment properties are not eligible for the incentive.

What are the terms of repayment?

The homebuyer will be required to pay back the Incentive amount after 25 years or when the property is sold, whichever comes first. The homebuyer can also repay in full at any time, without a penalty. Refinancing of the first mortgage will not trigger repayment.

How is repayment calculated?

  • If a buyer receives a 5%, the homebuyer will repay 5% of the home’s value at repayment.
  • If a buyer receives a 10%, the homebuyer will repay 10% of the home’s value at repayment.

Repayment is based on the property’s fair market value at the point in time where repayment is required.

Are there other costs involved with the First-Time Homebuyer Incentive?

There may be some additional cost associated with the Incentive:

  • Legal fees: Your lawyer is closing two mortgages so you may be charged higher fees.
  • Appraisal fees: You may need to have an appraisal done to value determine the fair market value of your home when thinking about repaying the incentive.
  • Other fees: Additional fees may be incurred throughout the life cycle of the incentive, like switching your first mortgage to a new lender or refinancing your first mortgage.

What are the mortgage details?

  • The maximum threshold for debt service ratios are GDS 39% and TDS 44%. This is only applied on the first mortgage and is subject to requirements by lenders and mortgage loan insurers.
  • Total borrowing is limited to 4 times the qualifying income. The combined mortgage and Incentive amount cannot exceed four times the total qualifying income.  The amount for the mortgage loan insurance premium is excluded from this calculation. 
  • The Incentive is a second mortgage on the title of the property. There are no regular principal payments. It isn’t interest bearing and has a maximum term of 25 years.  
  • The Government of Canada will share in the upside and downside of the property value upon repayment. 

 Is Mortgage Loan Insurance required?

  • The mortgage must be eligible for mortgage loan insurance through either CMHC, Genworth, or Canada Guaranty. The first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium.
  • The premium is based on the loan-to-value ratio of the first mortgage only. That is, the first mortgage amount divided by the purchase price. The Incentive amount is included with the total down payment.
  • Mortgage loan insurance premiums may vary depending on the mortgage loan insurer and may be subject to provincial taxes. 

Can I switch my first mortgage to a different financial institution?

Yes, your first mortgage may be switched to a different financial institution without having to repay the incentive. The terms of the first mortgage may not be altered in this case.

If I decide to purchase a new property, can I port (moving the mortgage to a new property) the Incentive along with my first mortgage?

A Port is considered to be a sale which will trigger repayment of the Incentive.



Do you have a question regarding the new home buyer’s incentive? Feel free to contact me, I’d be glad to answer any of your real estate questions.




Top Realtor Amy McDermid REMAX

#AgentAmy


Amy McDermid

Sales Associate

Phone: (204) 470-5356
Email: Amy@JenniferQueen.com

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Eight Years and Eight Lessons in Real Estate

Pictured: My first sale - a condominium for a lovely couple along St. Anne's Road shortly after getting my license. They had tried to sell privately and gave up.



June 2019 marks my eighth year in real estate.  I ALWAYS wanted to be surrounded by real estate.  I remember going to a multitude of open houses just so I could take it all in.  What actually propelled me to finally taking action was a television show on HGTV about a female realtor in Canada that built a successful real estate business, then team, and ultimately brokerage for herself.  I thought, if she can do it, why can’t I? 



ASIDE: Don’t worry Stan, I have no intention of starting a brokerage after observing what you do day-in and day-out for the last eight years. No thank you! Let me sell things!



I am still learning something new every day, even after 550 deals and counting (if my calculations are correct).  I was recently reading Ben Franklin’s Autobiography and found his 13 Virtues still very relevant for today. He was really onto something.  To that end, I have picked eight virtues that I feel are still relevant to what I have learned in my eight years in Real Estate:



  1. Silence.  Speak not but what may benefit others or yourself. Avoid trifling conversation. We must listen openly and honestly to our clients. We all have our own biases and backgrounds, however we are not truly serving our clients best interests if we try to insert our own beliefs and opinions into their decision making process.  Yes, we are there to provide guidance and an education on the home buying and selling process, but not to influence it with our own opinions or biases.
  2. Order: Let all your things have their places. Let each part of your business have its time.  Sometimes it is okay if you respond to your emails at the end of the day.  Focus on the client you are with, they are the priority.  Learn how to prioritize your business to save your sanity (I am still learning this one). I could go on.
  3. Resolution: Resolve to perform what you ought. Perform without fail what you resolve.  Nike’s “Just Do It” campaign resounded with so many because it was simple, and was a message that we all needed.  Do what you should do.  Set your goals, go out and take the steps you need to achieve them.  Whether that be in a new marketing campaign, new listing, or hitting new sales goals. We are often our biggest obstacles, and getting over ourselves and getting to brass tacks is the only way to achieve true success.
  4. Frugality: Make no expense but to do good to others or yourself: i.e., Waste nothing. There are always new shiny objects: flashy marketing ploys, tools for realtors, etc. Some are useful, but the majority do not stand the test of time.  Look at your core competency, constantly work to streamline and improve it, and grow from there. 
  5. Industry: Lose no time. Be always employed in something useful. Cut off all unnecessary actions. Keep it simple.  Similar to point 4 above, work on those core competencies and just get really good at them. Hone in on them.  Revamp, streamline, improve. Learn to be the BEST at what you do. If you aren’t getting better, you are getting worse.
  6. Sincerity: Use no hurtful deceit. Think innocently and justly; and if you speak, speak accordingly. Judge Judy is my guilty pleasure, and one of my favourite lines from her show is “If you tell the truth, you don’t need to have a good memory”.  She is right.  Honesty is always the best policy, especially when it comes to what will be most people’s largest purchase in their lifetime. Sincerity equals longevity in this business.
  7. Tranquility: Be not disturbed at trifles, or at accidents common or unavoidable.  Stealing a line from my lessons blog of last year: there are two ways to build the tallest building in town. I know, this sounds weird, but there are two ways to look at business: 1. You can tear down all of the businesses around you to become the tallest building, or; 2: You can just build the tallest building.  This can be a tough industry as my colleagues or friends within the business are often my competition, and an industry set up such as this can lead to dissension amongst peers and sometimes downright dirty tactics to obtain clients.  But karma exists. Always choose to build the taller building.
  8. Humility.  Which to me means keep your pride in check.  Be humble.  I think to say it most succinctly, “stay hungry, stay humble”. 


So what do the next eight years look like?  I have no clue.  As I write this we sit as a team of four agents and one full-time administrator. We are currently sitting just shy of 80 deals halfway through 2019.  I like the size of this team.  We are small enough that we are all close and know what is going on in one another’s business, but big enough that we can take time off and know that our clients are well taken care of.  We are also the perfect number for two golf foursomes. But growth never came from comfort zones! Stay tuned!


Jennifer Queen Top Winnipeg Realtor#AgentJen


Jennifer Queen

Phone: (204) 797-7945
Email: Jennifer@JenniferQueen.com

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The Dreaded Bidding War and How to Prepare for It


If you’ve been following Winnipeg’s real estate market at all these past few months, you’ve noticed a high percentage of homes are selling over the asking price. You may be wondering, how are there so many buyers that are willing to pay more than what the owners have asked for!? The simple answer: The law of supply and demand.

What is the law of supply and demand? It is a simple economic theory where when demand exceeds supply, prices will rise, and vice versa. How this applies to the real estate market is when there is a surplus of buyers who are looking in a specific neighborhood and there is shortage of homes for sale in that specific neighborhood, the prices of homes will rise due to demand. Resulting in, yes, you’ve guessed right, every buyer’s worst nightmare: the bidding war.



If you are thinking of buying a home in the near future there are some things you can do to prepare yourself in the event that you may encounter a multiple offer scenario.



 

Mortgaeg pre-approvalFirst Off, Get Pre-Approved. 

Being confident in how much you can afford when competing gives you a huge advantage. This will allow you to feel comfortable with the number you put down on that offer… even if it may be $40,000.00 over asking! Secondly, the time necessary for the lender to approve your mortgage will be cut down drastically, allowing you to put a much shorter time to fulfill your financing condition, making your offer a lot stronger. It is not uncommon to see offers written with 24 hour financing conditions or even no financing condition at all! If you want to compete with those offers, having a dialogue with your lender as well as the pre-approval will give you the tools necessary to do so.


(It is very important that if you decided to write an unconditional offer you ask your mortgage specialist/broker and your realtor all the risks involved in doing so).  A pre-approval means the lender has already done approximately 70% of the work, but still has a few key pieces that they require to get the final approval.


Know Your Market.

This is where you need to listen to your realtor. Find someone who is familiar with the areas you are looking in. See how many homes in that area have gone over list and by how much. This will give you somewhat of an idea to what you may experience when it comes time to put in an offer. Although every situation is different, being educated in what trends are happening in your neighborhood will help you prepare and will hopefully reduce some of the stress involved with these multiple offer scenarios. An educated buyer is the best kind of buyer!


Know the Market Value of the Home.

Comparative Market Analysis Winnipeg

Market value is defined as “the price an educated buyer is willing to pay for a specific property”. In a “hot market” properties may be listed lower than market value to attract more buyers.  Your agent should be doing a ‘Comparative Market Analysis’ on the property to determine market value so you can make an educated offer. This is not to say properties don’t go above market value, there are many factors that go into what something is worth to someone. It may be that it is next door to their best friend or maybe they just NEED it. It is hard to know what a specific property will sell for, you need to determine not only market value, but what the home is worth to YOU.


Have a Plan.

Bidding wars are stressful, no doubt about it. Talk with your agent about all likely scenarios and what you would be willing to negotiate on. Knowing your numbers before they present offers helps to keep emotions out of it. Keep in mind, in Manitoba your agent does not know what the other offers are and what situations may be associated with them. For all we know, the offer you are competing against could be the owner’s sister. Plans change, but having the discussions beforehand will help ease your emotions at that time.


Write a Letter to the Seller.

Some may say this is a little tacky, but from experience, these have been known to sway sellers in different directions. Read more about the power of a personal letter in #AgentLogan’s previous blog. Let them know what you love about their home, who you are and what you value. Connecting with the home owner may just help get you in the front running to negotiations, its worth a try!


Home Inspections in WinnipegDo a Pre-Inspection of the Property.

The less conditions on an offer, the stronger it is when competing. Putting a condition subject to a home inspection can result in your offer going to the bottom of the pile. This is not to say we shouldn’t do one! Usually, there is enough time before the offers date that you can schedule a pre-inspection of the property, allowing you to write an offer without the home inspection condition but still being confident in the purchase you are making. The only downside to this is if you still don’t get the property you’ve paid for the home inspection!


Be Patient.

The last piece of advice I will give you is be patient. It is not uncommon to write 4-6 offers before finally getting the house you’ve always wanted. This a marathon, not a sprint. I have experienced MANY multiple offer scenarios in my career as a real estate agent, they are all different and they are all unpredictable. Having the tools necessary in advance and the right guidance is key to navigating these crazy things called bidding wars.


Good luck!


Ashton's Advice on Bidding Wars#AgentAshton


Ashton Augert

Phone: (204) 781-1767
Email: Ashton@JenniferQueen.com

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