For many people this can be a true nightmare but it doesn't have to be. And that's a good thing because a lot of people find themselves in the position of needing to sell and buy all at once.

If you're in this situation then you know that timing and money are two critical issues. What you do or don't do, can affect whether you have a successful sale and purchase of your next home.

Here are some important tips to expediting and effectively navigating the sell and buy process.

Collaboration. The real estate process is about collaboration and teamwork. When you begin the process, experts advise that you use a notebook

to record your timeline of important dates such as when you absolutely must be relocated. For instance, if you're moving to another city for a job, when are you starting? When do you have to have the kids in school, etc? In this notebook, jot down details of conversations with experts and any transactions. Also, use the notebook to write down your questions that you have for your team of experts so that you're certain to get the answers you need.

Meet with your team which likely includes a real estate agen t , l awye r , l ende r , inspector, appraiser, and advise them of your needs and time frame.

First things first–must sell that

There are some people who will drive around to three or four different gas stations, looking for the cheapest price. Others will spend forever trying to pick out a new pair of shoes. But when it comes time to get a new mortgage, Canadians are pretty complacent, and it's costing them a lot of money.

The recent annual report from the Canad i a n A s soc i a t i o n o f Accredited Mortgage Professionals (CAAMP ) s hows t h a t o f homeowners who renewed their mortgages in the last year, 83 per cent stayed with the same lender they had before. But there are more mortgage choices available than ever before, and shopping for

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better rates and terms could make a big difference. A report by Deloitte says the mortgage market share of bank branches is decreasing, a trend that is expected to continue. Mortgage brokers have enjoyed an increase in market share, but Deloitte says that share will remain flat going forward.

Winter 2011

Continued on page 3

Selling And Buying All At Once? Written by: Phoebe Chongchua

Consumers Benefit From Mortgage Industry Trends Written by: Jim Adair

Mortgage Rates

Discounted fixed rates:

Rates provided by Invis Mortgage As of January 11, 2011

Subject to change without notice

Special rates, depending on closing date.

1 year: 2.54%

2 year: 3.20%

3 year: 3.59%

4 year: 3.84%

5 year: 3.84%

Inside this issue:

• Selling And Buying All At Once?

• Consumers Benefit From Mortgage Industry Trends

• Brain Teasers

• Properties for Sale by Exit

Continued on page 2

Your Neighbourhood Real Estate ProfessionalYour Neighbourhood Real Estate ProfessionalYour Neighbourhood Real Estate ProfessionalYour Neighbourhood Real Estate Professional

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Consumers Benefit From Mortgage Industry Trends (Continued from cover)

Page 2

It says the emergence of bank mobile mortgage sales forces is challenging the perception that only mortgage brokers can offer lower rates and better customer service.

The report says that unlike mortgage brokers in the U.S., the "Canadian mortgage broker channel is "strong and stable."

CAAMP reports that mortgage brokers account for 25 per cent of all mortgages, and 40 per cent of new mortgages. But it says consumers remain cautious about switching lenders. Almost half of those obtaining a mortgage last year got only one mortgage quote or none at all. Twenty-four per cent got two quotes and just 18 per cent got three.

Canadians are also cautious about taking on variable-rate mortgages, even though they cost less than fixed-rate mortgages. Sixty-six per cent of Canadians go with the most common mortgage, a five-year fixed-rate loan. Only 29 per cent have variable mortgages and four per cent have a combination.

CAAMP economist Will Dunning says, "We can think of the difference between variable rates and fixed rates as the price of

reached the end of its term. Deloitte says the federal government is thinking of standardizing prepayment penalties. A typical penalty is either three months of interest or the difference between the existing rate and the rate the lender could charge in the current environment, which is called the interest rate differential (IRD).

"If new government regulations remove the IRD penalty as a barrier to s w i t c h i n g , m o r e consumers will likely switch mortgages in periods of declining rates," says Todd Roberts, a consulting partner at Deloitte. "In the absence of stiff payment penalties, lenders will seek to minimize lost customers by b u i l d i n g s t r o n g relationships through active cross-selling and retention strategies for at-risk groups."

But to remain successful, mortgage brokers will have to evolve from "rate shoppers" to "advisors" says Deloitte. "To succeed in today's hypercompetitive marketplace, mortgage brokers will start to offer value-added advice to Canad ian mo r tgage holders similar to the way investment brokers have evolved from transactional to advice-based roles," says the report.

"Over the last decade, an increasing number of v i a b l e op t i ons f o r borrowers have surfaced," says Deloitte senior manager Rob Galaski. "In addition to the traditional options available at bank branches, Canadians seeking a mortgage can now consult the bank's m o b i l e m o r t g a g e specialists, independent mortgage brokers and online sources. In this changing and more c u s t o m e r - f r i e n d l y environment, the mortgage broker channel has emerged as a legitimate competitor that is helping provide greater choice and convenience."

Galaski says there are many groups of people who can benefit from access to specialized lending services provided by mortgage brokers. "In particular, individuals who would have previously been faced with very few options due to their financial circumstances – such as new immigrants, the self-employed and individuals with credit challenges – now have options that were not previously available to them even a few years ago."

One of the reasons consumers are reluctant to change mortgage lenders is because there are penalties for switching if the mortgage hasn't

insurance that mortgage costs won't increase in the next five years." But he says the cost of that "insurance" has been much greater in the last two years than in the previous two years. The report says for those who financed or renewed a mortgage within the last 12 months, average rates were 4.17 per cent for fixed rates and 3.03 per cent for variable or adjustable-rate mortgages.

The fact that most people opted for a fixed rate "suggests that consumers are not giving much weight to relative costs of the two types of mortgages," says Dunning. But he says it probably has "much more to do wi th consumers ' assessments of risks and perhaps even more with in-grained attitudes to risk."

CAAMP's report found that 84 per cent of Canadian mortgage holders could handle monthly increases of $300 or more in their mortgage payment. Overall in Canada, as of August 2010 there was more than $1 trillion in outstanding residential mortgage credit. But the mortgage arrears rate is stable at 0.42 per

Go to www.StaceyDevoe.com - ‘About Stacey’ and click on ‘Monthly Newsletter Trivia’ for the answers.

Brain Teasers

It comes at the end of the alphabet but also at the beginning of time. It is part of a mystery but not the

unknown. Involved in everything and

nothing all at once. What is it?

I run all day but never walk, I often murmur but never talk, I have a bed but never sleep, I have a mouth but never eat,

What am I?

Page 3 WINTER 2011

h o m e . M a n y homeowners need the money from their homes in order to purchase their next one. With that in mind, be proactive. Get a home inspection so that you can find out any potential issues that will slow the sale process. Then repair or adjust your asking price before you list your home for sale.

Get your home on the market as soon as possible. Delaying listing your home will result in a shorter time-frame to get it sold.

When it comes time to sell, if you're not ready to move in to your next home, work with your agent to arrange a long close or a rent-back option. This will help to avoid the hassle of an interim move.

It's not always all about the price. When you're in a situation that has some very particular time constraints, you might find that it's not always all about the price. Prepare for the best poss ib le of fer by screening your potential buyers, make sure they're pre-approved “within five to 10 days of accepting their offer,” writes Lendingtree.com.

Sometimes a slightly lower offer may be the one that offers greater flexibility and just what you need when it comes to the closing schedule.

Get your buyer of your old home and the seller of your new one on the same page. Put in writing the specific window of dates. L e n d i n g t r e e . c o m suggests, “negotiate

you want to make an offer on.

Ultimately, selling and buying a home is a lot to handle but it can be a smooth transition. Be clear about your time frame, new home purchase price, and any other details that are specific to your needs. Then before you move, I recommend reading my column: Go Bananas Over Moving!

Mortgages Matter! Renovating Your Home? For Professional and Personalized Service Contact... Sheena Paon, Mortgage Specialist

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Tapping into the equity of your home is the best way

to fund those much needed or desired home

renovations. Refinancing your mortgage today allows

you to take advantage of current low interests rates

and you can spread the repayment over a longer

period of time. Mortgage interest rates are usually

much lower than using credit card or personal loan

rates. This type of financing can allow you to borrow

up to 90%* of your home’s appraised value. Want To

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financial penalties to encourage both stick to those dates.”

Know your price point. This is really important regardless of whether you're selling a home in order to buy another one. However, when you're in a time crunch, it's even more critical to know and shop for the home that's in your price range. And, of course, just like you're asking for with your buyers–get pre-approved.

Get an inspection and make sure the new home can be insured.

Hav ing a buyers notebook where you can record all of your notes on your home search and jot down questions is an excellent tool to have handy when choosing which home

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Selling And Buying All At Once? (Continued from cover)

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