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Aug

2010

Why Modular?

Why Modular?

Manufacturers of modular housing have made exceptional progress in the development of sophisticated housing solutions for the residential market. Images of simple, uninspiring, rectangular boxes are a thing of the past as today’s manufacturers are well equipped to supply highly attractive homes that feature leading edge designs and building technologies. When you consider other cost savings, such as fast delivery and rapid construction, the benefits of modular construction become obvious

Factory-built means Superior Quality - Save Time, Save Money with Modular Construction

Concurrently scheduled site preparation and factory manufacturing significantly reduces total construction time to occupancy.
Overall project time savings results in construction cost savings
Design-build capability means predictable, manageable costs from the planning stage to completion of the project.

Controlled Construction Environment •
Buildings are manufactured in a dry, enclosed factory
Efficient, assembly-line construction by skilled trades
Inspections are done at the factory during manufacturing
Systematic, in-plant monitoring & supervision with strict quality control ensures a superior quality product

Factory vs Site Construction •
On-site skilled trade shortages, remote location accessibility and seasonal climate changes are not a factor
Minimizes site construction noise & disruption for existing operations and neighbours
Eliminates the risk of theft and vandalism often experienced during site construction
Greatly reduces the volume of construction waste and the cost to dispose of it

Superior Quality Product
Built to meet or exceed the same rigorous local, regional & international codes & standards as traditional site-built construction
Modules are constructed to withstand the rigors of transport and handling, often more than once, resulting in greater strength and durability
Separate layers of the assembled modules results in double the normal soundproofing standards
Superior finishing, advanced technology and precision engineering
Award-winning designs incorporating health-related features & environmentally friendly construction techniques

When Purchasing a New Home, consider the following advantages.

Modern design. A new home has an up-to-date design that takes into account the latest trends, materials and features.
Personalized choices. You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
Up-to-date with the latest codes/standards. The latest building codes, electrical and energy-efficiency standards will be applied.
Maintenance costs. Lower maintenance costs because everything is new and many items are covered by a warranty. You should still set aside money every year for future maintenance costs.
Builder warranty. This is a warranty that may be provided by the builder of the home. Be sure to check all the conditions of the warranty. A homebuilder’s warranty can be important if a major system such as plumbing or heating breaks down.
New Home Warranty programs. Generally new home warranty programs are provided by provincial and territorial governments, but there are private new home warranty programs. These warranty programs are not available in Nunavut and the Northwest Territories. Check with your real estate agent or lawyer/notary to find out what the new home warranty program in your province or territory covers.
Neighbourhood amenities such as schools, shopping malls and other services may not be complete for years.
Taxes such as the Goods and Services Tax (GST) (or, in certain provinces, the Harmonized Sales Tax (HST)) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at, http://www.cra-arc.gc.ca.
Extra costs. You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what's included in the price of your home.

We appreciate your comments and questions, please visit our Blog to post a note: http://factoryhousing.blogspot.com/

Aug

2010

Do You Understand Mortgages

Choosing the right mortgage

Not sure which mortgage is right for you?

The basic features to consider when selecting a mortgage include:

Conventional or high-ratio

A conventional mortgage is a loan for no more than 80% of the appraised value or purchase price of the property, whichever is less. The remaining amount required for a purchase (20%) comes from your resources and is referred to as the down payment. If you have to borrow more than 80% of the money you need, you'll be applying for what is called a high-ratio mortgage.

Here's how a high-ratio mortgage works:

Any purchase where the down payment is less than 20% is considered a high-ratio mortgage, and the mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada (Genworth). The insurer will charge a fee for this insurance. The amount of the fee will depend on the amount you are borrowing and the percentage of your own down payment. Typical fees range from 1.00% to 3.50% of the principal amount of your mortgage. This amount can be paid up front or added to the principal portion of your mortgage. Consult a mortgage specialist for details.

Fixed rate or variable rate

When you take out a fixed-rate mortgage, your interest rate will not change throughout the entire term of your mortgage. As a result, you'll always know exactly how much your payments will be and how much of your mortgage will be paid off at the end of your term.

With a variable-rate mortgage, your rate will be set in relation to Prime at the beginning of each month. In other words, it may vary from month to month. Historically, variable-rate mortgages have tended to cost less than fixed-rate mortgages when interest rates are fairly stable.

When rates change, your payment amount remains the same. However, the amount that is applied toward interest and principal will change. If interest rates drop, more of your mortgage payment is applied to the principal balance owing. This can help you pay off your mortgage faster.

Short term or long term

The term is the length of the current mortgage agreement. A mortgage typically has a term of six months to 10 years. Usually, the shorter the term, the lower the interest rate.

A short-term mortgage is usually for two years or less. A long-term mortgage is generally for three years or more. Short-term mortgages are appropriate for buyers who believe interest rates will drop at renewal time. Long-term mortgages are suitable when current rates are reasonable and borrowers want the security of budgeting for the future. The key to choosing between short and long terms is to feel comfortable with your mortgage payments. After a term expires, the balance of the principal owing on the mortgage can be repaid, or a new mortgage agreement can be established at the then-current interest rates.

Open or Closed

Open mortgages can be paid off at any time without penalty and are usually negotiated for very short terms.² They are suited to homeowners who are planning to sell in the near future or those who want the flexibility to make large, lump-sum payments before maturity.

Closed mortgages are commitments for specific terms. If you want to pay off the mortgage balance, you will need to wait until the maturity date or pay a penalty.

Jul

2010

Where do I start?

The First Time Home Buyer - Are you Ready to be a Homeowner?

A helpful look for prospective first time home buyers with regards to whether they are ready to be a homeowner. As a first time home buyer you must take a serious look at your motivations for owning a home before commiting to buying one. What are the financial commitments, what are the costs and much more.

You first look at your current situation, i.e. your income, employment, debt and savings. Then evaluate your future plans with regards to lifestyle, a growing family, wedding costs and college education.

Ask yourself the following questions:

Do you have a steady, reliable source of income and a steady employment history?
Do you have a good credit history and understand how to manage your credit?
Is your total debt manageable? Can you pay all your bills on time and still afford to take on the costs associated with homeownership?
Can you save money for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative?
Do you have adequate savings to weather an unexpected loss of income or an emergency?

Who do you call in the homebuying process: real estate agents, mortgage brokers, lawyers, home inspectors are just a few. These are just a few of the topics we will be covering over the next few weeks to help you understand the Homebuying Process.

Jul

2010

Purpose of the Blog

Buying a home is one of the biggest emotional and financial decisions you'll ever make. You need to prepare yourself so you make informed decisions.

The purpose of this blog is to provide you with important information about the process of buying a new home. Whether this is your first home or if you are a veteran, following a process will minimize the challenges.

Perhaps you have already started the process? We would love to hear from you. Maybe others can learn from your experience.

During the next few weeks we will publish a series of articles about what you should know about the homebuying process.