What Is A Certificate of Location Exactly?

Whether you are selling or buying a property, you will get acquainted with the certificate of location. It is an essential document. It is not too complicated although it is a little technical. Let us shed some light on this issue.

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The certificate of location is the work of an accomplished land surveyor. It basically contains numbers, such as the dimensions of the land and buildings, the number of floors of the property and its structure. But it mostly contains the general plan of the property: location of the land and pool, cadastral data, limitations, encroachments, servitudes (utility corridor), and the geographical position of all the elements present, from the shed to the hedge, including the vehicle access. Continuer la lecture

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Lack of Space?

This is a chronic problem for a number of homeowners: lack of space. If your budget doesn’t allow any expansion or room extension under normal conditions, what is there to do? Here are a few great ideas.

A well-structured attic, no matter how small, is an interesting option. It’s the perfect space to set up a home office. The space under the roof offers a quiet place. The natural light from outside is easy on the eyes. The staircase serves as a psychological border between work and family life. The feeling of working in complete isolation is similar to that of working in the basement or backyard shed.

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A living room in the attic has multiple advantages. You’ll enjoy tranquility; if you install skylights, you will have more sunlight than in the basement; if the beamed ceilings and traditional dormer windows have been preserved, you’ll achieve an invigorating design; not to mention a beautiful birds-eye view of the exterior landscape, especially during the fall and winter. Again, here, the staircase isolates you from the rest of the world. Continuer la lecture

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Decorating a Teenager’s Bedroom

Teenagers might say they know how to decorate their bedroom, but most of the time, they’re unsure. Other times, they just don’t know. And watch out if you even dare suggest something! Parents say they know how their teenagers want to decorate their bedroom, but usually, it’s according to their own taste. So, how should you go about it?

The heart of adolescence, when teenagers seek to forge their own identity, happens roughly between 10 and 16 years old. For some, it’s sooner. For others, it’s later.[1]

We were all born with our own personality. And what a delight to create an environment that reflects our character! That is one of the joys of decorating. This is especially true when decorating a bedroom because it is a more personal room. Continuer la lecture

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Fixed vs. variable-rate mortgages: Which is right for you?

Buying a home is likely the biggest purchase you’ll ever make.

But before you can pack up and move in, you’ll need to secure a mortgage. This is often a long-term commitment. The average Canadian expects to pay off their mortgage by age 59, so it’s important to do your research and choose the option that’s best suited to you.

Basically, when it comes to the mortgage interest rate you’ll pay, you have two ways to go, fixed or variable. Which is better? Well, that depends on your risk tolerance.

To help you think through your options, we’ve outlined the differences between fixed rate and variable rate mortgages:

Fixed-rate mortgages are predictable.

With a fixed-rate mortgage, the mortgage rate and payment you make each month (or whichever frequency you choose to pay) will stay constant for the term of your mortgage.

This means you’ll know exactly how much principal (the initial amount borrowed) and interest (the amount paid on the amount you borrowed) you’ll be paying on each scheduled mortgage payment throughout the term you select.

The downside? You won’t be able to tap into a lower interest rate — ensuring more of your payments go towards the principal and less to interest — if interest rates drop during the term of your mortgage.

What a fixed-rate mortgage offers:

  • Your “set it and forget it” choice
  • Doesn’t change if the bank’s prime lending rate goes up or down
  • Eases budgeting anxiety and increases predictability

The drawbacks:

  • You may pay a premium for the stability
  • You may miss out on potential interest rate drops

Tip: Interest rates vary widely depending on the term you choose. For example, the interest rate on a 10-year fixed-rate mortgage could be almost twice as much as the interest rate on a typical 3-year fixed rate mortgage.

Variable-rate mortgages will fluctuate.

With a variable-rate mortgage, the mortgage rate will change with the bank’s prime lending rate. In this case, your scheduled payments will remain the same, but the amount paid towards your principal will vary.

Cautious buyers often choose a fixed mortgage because it means they can budget for the length of their mortgage term without any surprises. Variable rates are more unpredictable, but could work to your advantage if you can handle a bit of risk and uncertainty.

What a variable-rate mortgage offers:

  • Your “let’s see what happens” choice
  • Costs will be less if interest rates drop
  • Offers the possibility to lock in a better rate down the road

The drawbacks:

  • Works against you if interest rates rise
  • May increase your financial uncertainty

Tip: If you’re the type of person that always buys the extended warranty, then a variable rate mortgage is probably not for you.

How to choose what’s right for you

How do you feel about risk? A fixed-rate mortgage means the lender takes the risk; a variable-rate mortgage means you do. While the interest rate may be higher on a fixed-rate mortgage, it will stay constant during your term so you can budget accordingly.

How do you feel about the current market? The difference between fixed and variable rates has narrowed considerably in the last few years, making fixed-rate mortgages more appealing. Interest rates have been at historical lows, and while opinions vary, few believe interest rates won’t rise over time — the question is more likely when.

Tip: It’s really difficult to successfully time interest rates. Going variable to save money in the short run — hoping to lock in a fixed rate “at the right time” — is really tough to do.

And what if interest rates rise? No matter which route you take, it’s crucial that you evaluate the impact of an increasing interest rate on your mortgage costs — a stress test, if you will. For example, if interest rates go up by two per cent, would you still be able to afford your monthly payment? It’s important to plan for the unexpected — you can start by building an emergency fund.

Not everyone prepares for a rise in interest rates. In fact, the main reason home-buyers offer for not considering a rise in interest rates is that they simply didn’t think of it (45 per cent) or didn’t realize it was something they should be doing (27 per cent). You can do better by preparing for multiple scenarios.

The next step

BMO mortgage specialists are here to work with you to help you make the right decision based on your needs and your lifestyle.

Looking for more information? Take our mortgage calculators for a spin, or view our latest rates and special offers.

 

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Renewing your mortgage?

Renewing your mortgage is an important step, and you should never underestimate the financial impact. Angela Iermieri, a financial planner with Desjardins Group, has a few ideas.

What’s right for you right now?

« Our financial, personal or professional situation often changes, » she says. « If your salary went up, you’re thinking about selling your home in the near future or you want to remodel your kitchen, this new information will have a significant impact on the type of mortgage that will be right for you. »

You also need to consider other factors, like current interest rates and how well you tolerate fluctuations.

Your personal finance advisor will take this information into account when recommending a personalized solution for you. Continuer la lecture

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Articles conseils sur le financement d'une maison, la décoration et les rénovations