Moving into a new home should be an exciting time. Without proper planning and organization, the whole experience can quickly turn into an overwhelming ordeal.

To help ease the anxieties of moving day, here’s a handy to-do list to keep you organized and on-track:

Plan ahead

This may seem obvious, but many people find themselves rushing to hire movers and pack their belongings in the final frantic days leading up to

their big move. To avoid the stress this can cause, and to ensure moving day flows smoothly, be sure to start packing at least one month in advance. Focus on one room or closet at a time, and use this as an opportunity to purge items you no longer need. Moving into a new place means starting fresh. Donate, rehome or recycle those belongings that won’t serve a purpose in your new home. Remember, the first and last days of the month are popular moving days. Don’t put off booking your professional movers in advance.

Optimize your packing process

For safe travels and storage, pack your belongings in durable moving boxes, ideally new or ones that have little wear-and-tear. There’s also the option to rent reusable moving crates that can be returned once your move is complete. You can even hire professional packers to do it for you! To avoid sensitive items getting wet or damaged, use plastic, sealable bags and bins to protect clothing, books and important documents. Be sure to bubble wrap glassware and fragile items to keep them from shattering in transit.

Label and organize your boxes

Label each moving box with the room it belongs in (ie. kitchen, bathroom, bedroom #1). Take it a step further by numbering each box and creating a tracking document to specify which boxes should go in each room. This not only makes it easier for your movers to know where to place your items, but it also helps you to keep track of all your boxes.

Make those small repairs before moving in

If time allows, paint the walls, deep clean the appliances, and complete any minor repairs before moving into your new place. Unsurprisingly, it is a lot better to have a fully-functioning home before you start to unpack and assemble furniture. If this is not an option for you there are a couple of other things you could do. Consider placing all your items in the garage or basement at first, or simply in the centre of a room. This will allow you a few days to clean thoroughly and complete any small jobs necessary before settling into your new space.

Update your services and accounts

It can take time for some utilities to get up and running. Set a reminder to take your name off your current utility bills and set up accounts for services at your new place in advance of moving in. Remember to also change the mailing address on your subscriptions, delivery services. Most importantly, don’t forget to make changes for government and banking documents.

Make a plan for your first night

Moving day can be a long and tiring process, so you’ll want to plan ahead for that first night. You may not have the time or energy to set up your bedroom right away. Perhaps you are having a new mattress delivered in the coming week. Book a hotel or arrange to stay with family or friends until you are ready to sleep comfortably in your new home.

Have you ever wondered how much your property’s value has changed since you purchased it?

Home appraisals can play a big role. Following is a breakdown of the appraisal process – what it means, when it happens, and other important factors you need to know.

What is a home appraisal?

An appraisal is a process to determine how much money a property is worth. It sounds simple in theory, but a lot goes into determining the appraised value of a piece of real estate. Valid appraisals must be conducted by a licensed appraiser. This is a third-party professional who is unbiased towards the sale. Typically, the appraisal is ordered by your bank or mortgage lender.

The first step of any appraisal process is making an appointment for an inspection. The appraiser will look at several factors including the property, current real estate market, and location of the home.

The property itself

Your appraiser will want to look inside and outside your home to determine what amenities are available and the condition of the property. They’ll note the number of bedrooms, bathrooms, and living areas. They will look at what kind of appliances are in the home, as well as the finishes and materials used to build the home. They’ll also consider the exterior of the home. For this they will note the size and condition of front and back yards, the number of parking spaces, and the health of the windows, siding, and roofing.

The current real estate market

The value of properties fluctuates over time, so overall market conditions also play a role in real estate appraisal. Your appraiser will look at the value of similar properties nearby to get a better idea of trends more specific to your local market.

Your home’s location

The value of a home isn’t just about the structure itself. It is also influenced by what’s around the home and how the property fits with the surrounding structures. For example, nearby parks, schools, retailers, and other amenities can affect property value.

When do I need an appraisal?

You can hire an appraiser to look at your property any time if you’re curious about its value. However, there are two main reasons someone would want their home to be appraised.

1. When buying or selling a home
   Purchasing a home is one of the top reasons appraisals happen. The value of your home will affect your property tax and mortgage. Banks and mortgage lenders often require appraisals as part of their due diligence. They are taking a risk by lending you money so they want to verify the value of a home before approving a mortgage. If you purchase a home for a price much higher than what the home appraisal comes in at, lenders are unlikely to finance it or may require you to make a larger down payment. Typically they will only lend on the appraised value of the home, not on the purchase price. While it’s often the bank or lender that orders an appraisal, the cost may fall on the buyers. Typically, the cost of a home appraisal in Canada is between $300 and $600. The price of an appraisal depends on how large the property is, where it’s located and whether it’s considered a luxury home. Luxury homes are typically very large homes with high-quality finishes.If your appraiser has to spend more time travelling to your home or assessing its value on location, that can add to the cost.

Pro tip: Larger banks and brokers sometimes cover appraisal costs, so don’t be afraid to ask about this possibility!

If you’re looking to sell your home, it’s best to speak with your REALTOR®. She/he can provide you with insights into the current market conditions that may affect the value of your home.

2. When refinancing your mortgage
   Refinancing your mortgage can be beneficial if you would like to secure a better interest rate. Some refinances require a home appraisal to determine if the current balance of your mortgage is more than the property’s value. Your bank or lender may call for an appraisal in order to ensure its worth is enough to secure your new loan. Not all refinances require an appraisal, so make sure to talk to your bank or lender to see if it’s necessary.

What’s the difference between appraised value and market value?

Market value is typically determined through a comparative market analysis (CMA). It is the estimated value of a home. It is based on an analysis of comparable recent sales in your market and what buyers are willing to pay for the property. A home appraisal is based strictly on the physical features of your home or property. CMAs usually happen at the beginning of the selling process and are conducted by your REALTOR®. As well as looking at current listings and sales, your REALTOR will look at many of the other details as the appraiser. An appraisal usually happens as part of the closing process and is conducted by a licensed appraiser.

Remember, these values are not always the property listing price. The appraised value is based on the objective assessment of a licensed professional. The market value is what buyers are willing to pay and sellers are willing to sell for. If you are selling, your REALTOR® can provide you with a CMA to help you determine a listing price. They also have access to the MLS Home Price Index (HPI). This is the most advanced and accurate tool available to gauge a neighbourhood’s home price levels and trends. It is exclusive to REALTORS®.

The information discussed in this article should not be taken as financial or legal advice. This article is for informational purposes only.

Affordability has been a major concern for many potential homebuyers this year thanks to rising interest rates, high inflation and housing supply issues. Fortunately there are several savings accounts, incentives and rebate programs available. These will help you save for a down payment and other housing costs by building a homeownership strategy.

This is a guide to help you prepare for the biggest financial transaction(s) of your life.

Three savings accounts available for Canadians to help with down payment and other homeownership costs include:

● Registered retirement savings plan (RRSP), Home Buyers’ Plan (HBP)
● Tax-free savings account (TFSA)
● First home savings account (FHSA)

Established more than 30 years ago, the Home Buyers’ Plan enables first-time homebuyers to access funds accumulated in their RRSPs. These funds can be used to help finance the purchase of your first home tax-free. The borrowed funds must be repaid.

The Tax Free Savings Account was first introduced in 2009. This registered investment account represents a flexible, all-purpose savings tool. It allows account holders to contribute and withdraw from a tax-sheltered account easily and without penalty. Tax-free withdrawals can be made at any time for any purpose. There are no withdrawal limits, and there’s no payback requirement. The account holder can use savings as needed and replenish as desired (within the annual contribution amount). Contributions are not tax deductible.

The First Home Savings Account is brand new for 2023. It combines the benefits of both an RRSP and TFSA. It is tax-deductible, and withdrawals are non-taxable. Since the savings are meant specifically for buying a first home, any amount withdrawn for another purpose will be taxed. The FHSA must be closed within a year from when the first withdrawal is made. If the funds aren’t used for a first home purchase within 15 years of opening an account, it must be closed. At this time the funds must then be transferred to an RRSP/registered retirement income fund or withdrawn as taxable income.

Start early, start now

Early saving and investing for the future is key for you when looking to become a homeowner. It is equally as important as making sure you have a full team of experts on your side. In addition to a Realtor, you should have a mortgage broker/agent, financial advisor/planner and real estate lawyer or notary. Your Realtor may also want to be in contact with these other professionals to help during the process. This will allow everyone to save time, and will also streamline the entire real estate process. It will lead to an easier, more seamless transaction.

Plans you set up today will help down the road.

Don’t rely on your parents to learn about the homebuying and mortgage processes. They may be a good sounding board, but everything has changed. Even if they bought within the past five to 10 years, the qualifying rate and required documentation are different. It’s important to have conversations about financing essentials, including credit, qualification and down payment. This information at the onset can save you a lot of future stress. Since an FHSA can be opened as early as age 18, it’s a great way for Canadians to start planning for homeownership early.

Getting clear on financial goals

It is also important for you to speak to someone about financing long before moving forward with a purchase. In this way you can be more confident about how to achieve your financial goals.

Homeownership really needs to be a top priority if it’s going to happen. Some sacrifices may be necessary. In some cases drastic changes, such as a career change, may be in order. Just don’t decide to change your job or career within two years of trying to qualify for a mortgage. You have to have two years of employment history on your income to qualify. It demonstrates stability and reliability to your lender.

Four recommended financial strategies include:

1. Clearly track all expenses. This raises awareness, which enables you to compare your actions with your goals.
2. Avoid unnecessary bank fees. Research banks that don’t charge fees.
3. Automate savings. Start small and ramp up. Every little bit helps.
4. Automate investments. If you have the time horizon (at least two years) and the risk tolerance, this works well. The more you can take willpower out of the equation, the better.

The goal of homeownership has become much longer for many Canadians. Meet with the right professionals early. It can make a world of difference if you do this as soon as you have started saving for your first home. Set yourself up for success!

The word “qualified” gets tossed around a lot when people talk about financing. What exactly does it mean to be qualified in a financial sense? How do lenders make that
determination?

The primary calculations that lenders use are Gross Debt Service Ratio (GDS) and Total Debt Service Ratio (TDS).

These are calculations that determine what percentage of your annual income you will be devoting to paying (or “servicing”) your debts. This includes the debt you’re applying for. These are useful and surprisingly simple budgeting tools that you can use for yourself. They will help keep your financial obligations at a reasonable level.

The calculations look like this:

GDSR = Annual mortgage payments + property taxes + heat / gross family income

TDSR = Annual mortgage payments + property taxes + heat + other debt payments /
gross family income

Most lenders will allow these ratios to go up to 39% GDS and 44% TDS. If you have recorded credit trouble on your credit report (for example, if your score is below 680), they may look for lower percentages, ie 5% GDS and 42% TDS.

In order to determine these numbers the lender needs more information. This is where the credit check comes in. The score is only one component. What also matters are the other payments you are obligated to make each month. A person can have income that results in a reasonable GDS. If there is also a line of credit, car loan, and large credit card balance this could push the TDS way out of line.

Another factor that lenders look at on a credit report is your repayment history.

Most credit sources are “revolving,” meaning the balance can increase or decrease with use.

On the credit report these appear with an R next to them and a number from 1-9 indicating the repayment history. 1 is the best rating, while 9 refers to a debt that’s gone to a collection agency.

Unless your account has been sent to collection, things like cell phone or cable bills will not show up on your credit report and so will not be included in the debt servicing calculation.

It is possible to go into a lot more detail about how credit scores are generated and what all the information on the report means. This is not intended to go into more detail. It is to show how important it is for you and your broker to have a look at your credit even at the pre-approval stage. The information is essential to the process of qualifying you for a purchase since it’s used to calculate your debt servicing ratios.

You will find more information about credit scoring on the Government of Canada’s Office of Consumer Affairs website.

Janice can help put you in touch with a reliable, experienced mortgage broker or you can contact your current financial institution or advisor.