Open House - The Real Estate & Mortgage Show
Real Estate and Mortgage Answers
Every Saturday morning at 11 AM, Paul Rushforth and mortgage broker Frank Napolitano join CFRA's Steve Gregory on Open House.
They provide expert answers to real estate and mortgage questions from people just like you. You'll find plenty of information on how the market is doing and why, and they also have plenty of fun along the way!
Whether you're new to real estate or have plenty of experience already, you'll find the latest updates you need to prepare for your next home purchase or sale.
You can play the episodes by following the link below, or click here to get a list of transcripts.
Here are some highlights from past episodes. If you'd like to listen to the episode, visit the podcasts page.
April 14, 2018: Types of Buyers and Current Rates
Lisa came in despite the impending weather to chat with Frank and Steve about real estate.
In a recent study, approximately 33% of Canadians said they wanted to buy within the next 2 years. This includes millennials and buyers between 18-24.
Lisa explains that the trend of first-time buyers jumping right to a larger, $400,00+ home is on the decline. Millennials in particular are more interested in buying a smaller, more affordable condo or townhouse that is low maintenance.
There are so many different buyer groups, which is why Lisa recommends getting a real estate agent to sell your home, especially in such hot markets. Your home sale will be more successful if it’s marketed to the right people.
Rates Went Up
The bond market rates went up at the end of this week, which meant that rates did as well. 5 year fixed rates went from the 3.14 - 3.19% range to 3.29 - 3.34% range.
However, these are still good numbers, and rates on high-ratio mortgages are extremely favourable right now.
Before agreeing to any rate proposed by your bank or a lender, Frank recommends talking to a mortgage broker. They’ll be the first to tell you if it’s fair. A mortgage broker can also get you a firm pre-approval, which is essential to buying a home in today’s market.
What Else Do I Need to Know?
April 7, 2018: 3 Things You Need for a Mortgage Approval, and Broker Fees
Lisa joined Frank and Steve today to discuss the importance of pre-approved mortgages and Ottawa’s market.
What You Need for a Real Pre-Approval
There are 3 things you need for a real pre-approval: an income statement, a downpayment, and a credit check. Frank cautions that all these 60-second online mortgage approval gimmicks are just that: gimmicks. They offer no guarantee that you’ll actually get that amount of money, and you could end up wasting a lot of time shopping for homes you can’t afford.
Frank Talks: Broker Fees
Frank spoke about broker fees after hearing from a few people who had questions about the fees they were being charged.
You should not pay a broker fee if you’re applying for standard financing. This is extremely important. Frank explains that mortgage brokers are paid by the lenders, not you. If you’re applying for standard financing, and your broker introduces a fee, you shouldn’t sign on.
If you have questions about broker fees, give Frank at Mortgage Brokers Ottawa a call.
March 31, 2018: Get a Hard Pre-Approval, and Interviewing Agents
Steve, Frank and Paul spent the last day of March taking calls from across the city, and talking about entering the market.
Get a Hard Pre-Approval
One of the problems right now is that banks are giving people a soft pre-approval, based off minimal information. This is causing a lot of buyers to have a false sense of what they can afford, making the buying process longer and harder.
If you’re buying a house, make sure you get a hard pre-approval before you start looking. That means submitting the necessary paperwork, and getting confirmation. If you have questions about what you need to submit, talk to a mortgage broker.
Interview Agents About Your Home Sale
As Paul says, you’re hiring an agent to market your house, not sell it. So don’t be afraid to interview as many agents as necessary, and always ask them this question: what are you going to do to get my home exposure? A professional, experienced agent will have a marketing plan tailored for your home.
What Else Should I Know About Today’s Market?
March 24, 2018: Posted Rates and Bringing a Home Inspector to a Showing
Frank called into the show to chat with Steve and Paul about the reality of posted rates, and how important it is to have a home inspector lined up in this market
You May Not Qualify for the Posted Rate
Mortgage brokers will have posted rates on their websites for the various mortgages they offer. But Frank cautions listeners that just because there’s a posted rate doesn’t mean you automatically qualify for that particular number. The rate you receive is dependant on several factors.
That’s why you should always talk to a mortgage broker and get a hard pre-approval before starting to look at houses.
Have a Home Inspector at the Ready
In a competitive market, many buyers are tempted to waive the home inspection. Paul strongly recommends that you do not, and instead have a home inspector ready to actually come with you to the showings. It’s important to know as much as possible about the property you’re buying before you put in an offer.
March 17, 2018: Accumulate Rentals, Purchase+Improvements, and Paul on CTV
Steve, Paul and Frank took some time this St. Patrick’s Day to answer homeowner questions about the market.
Accumulate 'Doors' for Extra Income
Rentals are in high demand right now. Paul recommends to several callers that if you have a home you can hold onto and rent, you should absolutely do it. “You should accumulate as many doors as possible,” Paul says, provided that you are financially able to keep and maintain an investment property.
What do you do if you are moving in with someone, you have a total of 6 kids, but can’t find a home with enough bedrooms to suit your needs? One caller had just this problem, and asked the experts for help.
There are some 4 and 5 bedroom homes on the market, but Frank says there is also a purchase+improvement plan that you can talk to a mortgage broker about. In other words, you get approved for a home purchase and a certain amount of money to put into improvements, such as creating a finished basement that could serve as a bedroom.
If you want to do this, Frank warns that the improvements must add the value you agreed upon in your contract to the property. For more information, talk to a mortgage broker.
Paul Talks Listings on CTV
Paul was recently interviewed as an expert on the current state of Ottawa’s listing inventory on CTV. If you want to learn more, watch the clip!
Open House Transcripts
We post any available transcripts here: