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Home Series: Interior Design Mistakes to Avoid- Consult with Bruce Coleman, Vancouver Mortgage Broker

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Interior Design Mistakes to Avoid

When it comes to designing how you want your home to look, and you plan to live there awhile, you want to give the home a look which reflects your tastes and the style of the home.

However, if you don’t do it right or make some of the following common interior design mistakes, then it just means that you’re going to have re-do it which means additional time and expense.

So, to help you avoid some of the most common interior mistakes, this guide will hopefully help save you some expense and aggravation.

Choosing Paint and Fabrics in the Right Order

One of the most common mistakes is that people go ahead and choose a colour scheme and paint the walls before they go shopping for fabrics. The colour effect of the fabrics and paint often don’t match as well as you like. When considering the interior design of your home, it’s a lot easier to first choose the fabric colour scheme first and then select the colours to paint the walls because fabrics are limited in their colours and hues while paint is much more selective and adaptable.

Don’t Jump too Quickly on Going with White Walls

Most experts suggest you should avoid plain white walls unless it’s suitable for the type of architecture you have. The reason is that white walls often don’t work is because they give the impression that things which are resting against the walls that they are floating.

If you do go with white it is best to ensure that you have a lot of contrast and colour. Interior design experts recommend that a neutral colour or a colour with a mid tone will unify the pieces in a more cohesive effect.

Ask for Help and Opinions

Before you head out shopping, it can be advantageous to seek out the advice or get some critique from style conscious friends or even to seek out the services of a professional interior designer to assist you. Getting a second opinion can help avoid unnecessary expense and help you avoid any potential flaws in your design scheme.

Always Work Out a Budget Design Conception Beforehand 

Another huge rookie mistake that many people make is not having a clear cut budget in mind when considering the design scheme of their home. The second is not having a focused idea of what you want to achieve. When it comes to buying your sofas, chairs, wall units etc. you might buy it because it looks great in the store, but that does not mean that it will work in that particular room.

The biggest problem here is that many people do not consider the furnishings relative to the shape and size of the scale of the room which means the furnishings could end being too dominate or disappear, so always consider the size and scale of the furnishings relative to the size and scale of the room because otherwise they simply won’t jibe.

Another thing to consider is to avoid impulse buying because that is another major culprit that can completely offset a room’s design scheme.

Add Some Warmth or Character

Don’t be too rigid in your selection of colour and a furnishing so you end up with a space that appears too cold and lacks personalization. Often, all it takes to make a room more inviting is to add a focal point such as a piece of artwork or an antique or heirloom. And if your room contains something that you don’t like – simply get rid of it. The appearance of the décor of a room can be dramatically changed by doing something as simple as altering the location of the artwork such as at different heights.

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What soft landing? Bullish realtors see no slowdown at all for ‘strong’ housing market – Ask Bruce Coleman, Vancouver Mortgage Broker

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What soft landing? Bullish realtors see no slowdown at all for ‘strong’ housing market

Not only does Royal Lepage not expect a correction in Canada’s housing market, they say conditions are right for a rebound not seen since after the recession.

TORONTO — The latest Royal LePage housing survey shows average price of a home in Canada increased between 1.2% and 3.8% in the fourth quarter of 2013.

It says the average cost of a standard two-storey home rose 3.6% year-over-year to $418,282, while detached bungalows went up 3.8% to $380,710.

Royal LePage says the price of a standard condominium rose 1.2% during the quarter to an average of $246,530.

The real estate company says prices are expected to maintain a “healthy momentum“ this year and rise a projected 3.7% over 2013.

CEO Phil Soper says late 2013 saw the housing market transition to “buoyant sales volumes“ and above-average growth.

He says that in the absence of “some calamitous event or material increase in mortgage financing costs,“ he expects positive momentum to characterize 2014.

“We predict continued upward pressure on home prices as we move towards the all-important spring market.“ he said.

“Talk of a ’soft landing’ for Canada’s real estate market in the new year is misguided,“ continued Soper.

“We expect no landing, no slowdown, and no correction in the near-term. Conditions are ripe for as strong a market as we saw in the post-recessionary rebound of the last decade.”

We expect no landing, no slowdown, and no correction in the near-term

Separate data out Thursday was not so optimistic however. Three separate reports released on Thursday showed a cooling trend, with weaker-than-expected readings for November’s new housing price index and building permits, and December’s housing starts.

Building permits fell by a sharper-than-expected 6.7% in November, more than double the 3.0% pullback expected by analysts, while housing starts dropped to 189,672 units in December, shy of economists’ forecasts for 190,000.

“The decline (in building permits) is in line with our expectation that residential construction will soften in the coming year in the face of affordability challenges to a pace more in line with underlying demographics,” CIBC World Markets economist Peter Buchanan said in a research note.

Statistics Canada said Canada’s new housing price index did not change in November, after a 0.1% rise in October, with prices rising in eight metropolitan areas, unchanged in eight and declining in five.

Canada’s housing market avoided the crash experienced in the United States five years ago due in part to more conservative lending standards and a stronger economy. While economists have long predicted an eventual correction in Canada, they are divided over whether prices will drop sharply or simply stagnate in a so-called soft landing scenario.

Prices in the closely watched Toronto-Oshawa region were up 0.1% on the month and a tame 1.4% on the year. Vancouver, to which authorities also pay attention, fell 0.2% on the month and 1.3% on the year. The oil town of Calgary was up 0.4% since October.

With prices stabilizing, economists expect new construction to cool further in 2014. Starts for all of 2013 slowed to 188,200 units, down sharply from 215,000 in 2012 and the lowest full-year tally since 2009, according to Robert Kavcic, senior economist at BMO Capital Markets.

“In fact, outside of that recession year, it was the slowest year for starts in more than a decade. We expect further cooling to about 180,000 units this year, which would reflect balanced overall building activity,” Kavcic said in a research note.

Notably, starts for both houses and multi-units – typically condos – fell in December. Condominium construction fuelled building in Canada’s biggest cities, including Toronto and Vancouver, during the height of the boom, but has since slowed dramatically. Many observers fear a glut of condos coming to market in 2014 and 2015 may drive prices lower, but are divided over whether a correction would spread to the broader residential housing market.

The outsized drop in November building permits was offset slightly by an upward revision to October data to show an 8.0% gain in the month, according to Statistics Canada.

Residential construction intentions sank by 7.6% with both single- and multi-family dwellings declining, while the nonresidential sector dropped by 5.2% as institutional and industrial building plans decreased.

Commercial building intentions, however, were once again robust, with the value of permits hitting a record level over the past 12 months, according to Kavcic.

With files from Canadian Press, Reuters

Home Series: Should You Buy A Fixer-Upper? – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Should You Buy A Fixer-Upper?

A home that has become rundown and poorly maintained can be either a great opportunity or a dreaded money pit if you aren’t careful.

Some people love older homes and you are very likely to snap them up at below market price, and spend time and money on renovations which can greatly enhance the value when you are finished.

This sounds good in principal and can often be very advantageous, but there is the other side of the coin that can bleed you financially dry if you don’t choose wisely

Figure Out the Costs Beforehand

It all boils down to dollars and cents. You need to do the following before you take the plunge when buying a fixer-upper. The offer you should make depends on the comparable real estate value of reasonably well maintained similar homes in that particular neighbourhood minus the costs of renovating the home.

The key is to be somewhat more liberal than conservative when making these estimates and you might add as much as another 5-10% on top to account for additional costs resulting from unexpected problems.

Always Use a Home Inspector

Although you might be fairly knowledgeable about home construction, there can be many issues you might easily overlook which can really hit your bottom line. A qualified licensed home inspector can help you more readily pick out the faults of the home and pinpoint what requires maintenance and expensive major renovations. You can also use the results of the home inspection when it comes to making a more equitable offer.

Which Fixer-Uppers should you Avoid?

Many renovation projects have a good ROI but some do not because the problems encountered are not visible and add little to increasing the overall market value of the home.

You should avoid any fixer-upper which has foundation problems. These are very expensive renovations and do not markedly add to the market value. Other problems which center on old electrical and plumbing problems should also be a red flag because these are also expensive renovations that do not significantly increase the market value. Another type of fixer-upper is one which might require a major addition such as an additional bedroom or family room because they also do not have a spectacular ROI.

Which Fixer-Uppers Pay Best?

The best fixer-uppers are ones that largely need cosmetic improvements, because these types of renovations do have a good to excellent ROI. This could include both minor and some major cosmetic renovations depending on your budget and the condition of the home.

You can include some cosmetic and some minor structural renovations such as including a skylight if you have to replace the roof. The key is not to over-improve the home above and beyond how it fits into the neighbourhood and how it affects the market value of the home.

Both major and minor cosmetic improvements could projects such as a partial or complete kitchen and/or bathroom renovation. Other improvements can include replacing old or tacky fixtures, redoing the floors, adding newer and more energy efficient doors and windows, outdoor siding, a deck.

Homes seem to add more value when they are visually renovated because they have more appeal to buyers.

You can save a lot of money if you are skilled at DIY projects, but remember that you should do the project right.

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The Key Questions to Ask About Your Mortgage

Whether you’re obtaining your mortgage directly through a bank or getting one through a mortgage broker, you will need to ask a lot of questions to get the best deal. It’s better if you are prepared beforehand and should have these questions written out regardless if you’re new to the process or been through it already.

Although you might think the mortgage rate is the most important factor, some of the responses you receive to your other questions may require you to re-think that the cheapest rate may not necessarily be the best deal for you.

You have to think down the road and consider such things as refinancing or what the penalties will be if you break a mortgage as the costs can outweigh the small benefit of a slightly cheaper rate and can end up costing you more than you think you will get with a slightly lower rate.

Key Mortgage Questions to Ask

The following questions should be posed to both a banking rep or to a mortgage broker when looking for the best possible mortgage deal

• Simply make sure you ask whether the rate they are quoting is the best possible rate they are offering given your circumstances. Ask whether they will match the rate if you find a similar one someplace else.
• Ask how long they will hold the rate and what the length of the holding period, and whether the lender will adjust rates should they fall.
• Ask whether the lender will provide you with a discounted rate when the mortgage comes up for renewal
• Ask about the lenders extra repayment options and how often they can be made, and whether there are any penalties involved
• You also want to know whether the lender will allow you to increase your ongoing mortgage payments as you financial situation changes because increasing your payments will help you to pay off your mortgage more rapidly.
• Another big question to be very clear about mortgage penalties if you break your mortgage before the term.
• Make sure you are very clear how the lender calculates mortgage penalties which you can also likely calculate using the lenders online mortgage calculator.
• Ask about what mortgage portability such as the terms or length if you plan to move to another home or property and what penalties might be involved.
• Ask about any restrictions or whether the lender will offer discounted rates when it comes to refinancing the mortgage and whether your mortgage is readvanceable (applies only if you have at least 20% equity). Note that that there are two types which include either manual or automatic.
• Ask whether you can split you mortgage into different parts which are known as “hybrid mortgages” and allows you to lock in a potion of your mortgage at a fixed rate with the other portion at a variable rate.
• Ask whether the lender offers early renewals
• Ask about the flexibility when it comes to the amortization.
• If you plan to sell your home to a sibling or one of your children you might also want to ask whether the lender will allow the mortgage to be assumed.
• Ask about “payment vacations” which allows you to skip a mortgage payment which can be important to someone who is self employed or works seasonal.

These are but a few of the key questions to keep in mind. But as you can see, there is a lot more to keep in mind than just the interest rate when it comes to finding the best terms for your mortgage.

Home Series: Tips on How to Choose New Hardwood Floors – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Tips on How to Choose New Hardwood Floors

Many new homeowners are choosing to move away from the wall-to-wall carpeting motif and are opting instead to spruce up or replace their existing hardwood floors.

There are a variety of reasons for this change in decorating approaches which range from the aesthetic appeal of finely polished hardwood floors to the health sensitivities and hygiene concerns of simply doing away with carpets.

If you happen to live in an older Vancouver home and are thinking of selling then you might want to seriously consider getting rid of that old carpeting or linoleum floor before you put the home on the market.

If you’re lucky and you do find some worn but quality hardwood floor underneath then all you might have to do is to get yourself a good sander and do some varnishing to bring the floors up to snuff. But if you find that that the floor is in poor shape or of poor quality then you might want to replace the floor altogether and get some new hardwood flooring.

Buyers notice what they’re walking on and can appreciate quality hardwood flooring. As a renovation project buying new flooring can actually provide you with a fairly moderate return on your investment.

How to Choose Hardwood Floors

You should first consider the rooms that you are considering for new hardwood floors as it may depend on the amount of foot traffic the floors receive.  This is especially important if you are going to opt for hardwood floors in your basement because it is vital that a vapour barrier be installed to protect the wood from moisture damage.

The type of flooring you select should also take into account the amount of moisture found in the area, and also upon the type and quality of the sub-flooring which you might underneath. These are all questions which you should ask of the sales rep when consider which type of hardwood and how it is constructed.

Types of Hardwood Flooring

You have two main choices when it comes to selecting hardwood flooring. The first is single layer flooring which is just basically solid hardwood. The second choice in flooring is known as engineered or often referred to as multi-layered flooring.

Single layer flooring is how we use to have our floors made and are the most common types of floors found in an older house. This type of flooring is most often affixed to the sub floor by nails or staples.

Single layer flooring should not be used below grade as they will be affected by moisture and can warp, form gaps or cups. Another thing to remember when buying single layer hardwood flooring is that you will want wood which at least ¾ inch thickness and which has been previously sanded. Mostly these types of floor will require a final finishing after they have been installed which can take several additional days.

Engineered or multi-layered hardwood floors are made up from strips of wood which are glued to a backing. The top layer is also called the “wear layer”. The thickness of the wear-layer should have no less than a 5/32 inch thickness.

Multi layer flooring should not be confused with laminate flooring which is only imitation wood because multi layer floors are made from real wood.

The advantage of engineered flooring is they are less likely to expand or constrict when exposed temperature changes or be affected by moisture which makes them ideal for below grade installation such as in basements. They can also be glued as opposed to nailed so they can be applied directly onto concrete or some other form of underlay.

The nice thing about hardwood flooring is that they have a lovely grain and you select from the stains you use or just basic varnish. Additionally there are so many choices you can really add specific character to specific rooms

Fewer Canadians will contribute to their RSPs this year: poll – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Fewer Canadians plan to contribute to their retirement savings plans this year, according to a study released Monday.

Retirement savings jar
(Jupiterimages/Getty Images/Comstock Images)

Three in 10 – 31 per cent – are making plans to sock away some money in their RSPs (including registered and non-registered accounts) in 2014, an 8-per-cent decrease from 39 per cent in both 2012 and 2011, the poll by Bank of Nova Scotia found.

Of respondents with RSPs who have considered increasing their contribution, 74 per cent cite lack of affordability as the top reason for not contributing more often. That’s down from 84 per cent in 2012.

The survey also indicates that more Canadians are taking money out of their RSPs.

Among RSP holders polled, 40 per cent said they have withdrawn funds from their RSP, up 4 per cent from the 36 per cent in 2012.

The top reason for dipping into the funds is to take advantage of the federal Home Buyers’ Plan to buy or build a first home: 16 per cent, compared with 15 per cent in 2012.

That’s followed by the need to cover day-to-day living expenses – 8 per cent, up from 5 per cent in 2012 – and paying down debt (8 per cent versus 6 per cent in 2012).

“RSPs continue to be an important and tax-effective way to maximize retirement savings. If affordability is an issue, a financial advisor can help identify ways to make that all-important contribution, big or small, as well as develop a financial plan to help achieve retirement goals,” said Mike Henry, senior vice president of retail payments, deposits and lending at Scotia.

On a regional basis, the lowest rate of RSP investment for the 2013 tax year in the poll was found in British Columbia, at only 20 per cent.

The highest rate of RSP withdrawals is also in B.C. – 42 per cent.

The bank’s annual investment poll was conducted using Harris/Decima’s online panel. A total of 1,029 completed surveys were collected from a random sample of panel members across the country.

The survey was conducted between Nov. 12 and Nov. 27, 2013.

Five Canadian mortgage market predictions for 2014 – Consult with Bruce Coleman, Vancouver Mortgage Broker

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ROBERT MCLISTER–  Special to The Globe and Mail

Expect more rule tightening in 2014 designed to reduce mortgage risk for lenders, mortgage default insurers and the government.
(Deborah Baic/The Globe and Mail)

1. New mortgage rules

Expect more rule tightening in 2014 designed to reduce mortgage risk for lenders, mortgage default insurers and the government. By definition, those rules will make it slightly harder to get approved for some mortgages and further slow the housing market.

2. Credit unions will steal market share

Since they’re provincially regulated, credit unions have more flexible lending guidelines than federally regulated banks. They’ll use that to their advantage in addition to marketing more heavily, both online and to mortgage brokers. We’ll also see some big mergers this year as credit unions seek out economies of scale.

3. Stronger online players

A new breed of online mortgage broker is sacrificing commissions for volume, and selling cut-rate mortgages. This trend will heat up competition industrywide, delivering greater mortgage discounts to all consumers.

4. Hybrid mortgages will grow more popular

Economists and government officials have been warning us of higher rates for four years. So far they’ve been wrong, and now many consumers aren’t sure what to believe. More Canadians will hedge their rate bets with hybrid mortgages (part fixed and part variable).

5. Consumer IQs will increase

For those in the mortgage industry who prefer an uninformed consumer, your days are numbered. Canadians will spend more time researching rate comparison websites, online mortgage forums, news portals, blogs, calculators and other online mortgage tools. They’ll become increasingly savvy about fine print like penalty calculations, rate blend policies and refinance restrictions. (Find tips for securing the best mortgage in Robert McLister‘s Mortgage Checklist.)

Robert McLister is the editor of CanadianMortgageTrends.com and a mortgage planner at VERICO intelliMortgage, a mortgage brokerage. You can also follow him on Twitter at @CdnMortgageNews.

3 Financial Predictions For 2014 That Will Be Good For Your Wallet – Consult with Bruce Coleman, Vancouver Mortgage Broker

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What will the New Year bring? NerdWallet predicts it may come with a few changes that will boost your bank account.

The personal finance site published a list of upcoming financial trends and policy changes that could shape 2014. We pulled out three predictions that would be good for you and your money:

Credit cards will offer more perks.
“Last year, a number of high-end credit cards began offering partnerships with other products, from free FICO scores on some Barclays cards to Amazon Prime memberships with the American Express Blue Cash credit cards,” according to the site. Next year, more credit cards will likely offer similar perks to distinguish themselves.

Credit scores will become more realistic.
Since TransUnion joined Experian this year in factoring in rental payments in credit scores, NerdWallet expects credit score calculations to move toward rewarding people for living within their means rather than for borrowing money.

Pay-as-you-go car insurance will gain popularity.
To save on car insurance, NerdWallet predicts more drivers will move to use-based insurance plans, which use technology to measure mileage and driving habits. The plans reward drivers with savings and discounts for low speeds and less driving. According to Computerworld, major insurance companies such as Progressive, State Farm, National General, and Esurance currently offer such plans, but they may pose privacy risks.

3 surprising money resolutions everyone should make in 2014- Ask Bruce Coleman, Vancouver Mortgage Broker

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Yes, you should stick to your budget, save more, and fully fund your retirement account. But you already know that.

Jonathan Clements, director of financial education for Citi Personal Wealth Management, suggests moving past the obvious and committing to these three counterintuitive money resolutions in 2014. Your wallet will thank you.

Stop trying to “save money” by shopping the sale rack. It doesn’t count as saving when you buy something you don’t need at a discount. “No matter how much the price is reduced, you’re still spending money,” says Clements.

Open your eyes to how much you waste money. Be honest. You probably pay for groceries that end up going bad, infrequently watched cable channels, unused extended warranties, clothes you rarely wear, and subscriptions to publications you don’t read. Clements suggests using money management tools offered by your bank or a financial service like Mint.com to get a clearer picture of where your money goes.

Don’t look at your investment accounts so often. You probably think you’re being responsible by checking how your money’s doing. Instead, you may just stress yourself out or overact to normal market volatility. “Looking frequently probably won’t help you make smarter financial decisions, but it could prompt you to trade too much and perhaps make panicky decisions,” Clements says.