4 May

HEY LANDLORDS! YOU NEED TO READ THIS!

Latest News

Posted by: Crystal Stewart

If you have not yet found yourself skimming the news online, you may not have heard yet about the Provincial Government’s announcement regarding the Ontario Housing and Rental Markets.

The Provincial Liberal Government, laid out for the Province their plan to address issues in key aspects of the Real Estate and Rental Property Markets in the Province. There were 16 steps in total, however for this post, we are going to focus solely on the announced changes that deal directly with Rental Properties and Landlords. These changes may directly impact our clients whom have or plan to acquire rental property. (Keep in mind that these were just announcements and many of them will have to be passed in the legislature before officially becoming law, although passing is highly likely).

1. Standardized Lease Agreements – The new plan stipulates that rental agreements/leases in Ontario for rental properties will be standardized. This helps the government ensure that lease agreements meet legislation requirements pertaining to landlord/tenant relationships and their respective rights.

2. Expansion of Rent Controls – Currently, any privately owned rental properties that are newer than 1991 are not impacted by Ontario’s rent control legislation. Meaning that a landlord has complete control on rent setting.

To gain control of skyrocketing rents (typically being experienced in Toronto and the Golden Horseshoe markets) the Province is expanding the Rent controls to all privately held rental properties regardless of the year they are/were build. The change would mean that rental rate increases would be capped at annual amount stipulated by the Landlord and Tenants Board. Those increases are typically in line with or around the rate of inflation. Even though this increase needs to come through approved legislation, the change will take effect, April 20th.

3. Vacancy Taxes – Although a specific tax is not being created by the Province, they are creating new powers for Toronto and other municipalities to introduce a tax on vacant homes in their respective communities. The tax is designed to encourage owners of vacant properties to make these available to tenants or be forced to pay a tax to the municipality.

4. Creating a rebate program designed help with Development Cost Charges to incentivize the building or more rental housing.

5. Ensuring that Property Tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties. Designed to encourage developers to build more new rental housing.

As we have become accustom to in the industry, change is always inevitable and many of the changes laid out are not a surprise. Some of these have been rumored or discussed for some time. The most substantial of those changes impacting owners of rental properties is likely the changes proposed to the rent control rules, although this truly only impacts those owners who have properties that are newer than 1991.

Should you have any questions about any mortgages on properties that you own, please feel free to contact your local Dominion Lending Centres mortgage professional. We would be more than happy to complete a full review of your property portfolio and discuss what options might exists for either saving money on interest or accessing equity for another investment.

Written by:

Nathan Lawrence

Dominion Lending Centres – Accredited Mortgage Professional
Nathan is part of DLC Lakehead Financial based in Thunder Bay, ON

3 May

THINKING HOME RENOVATIONS OR PAYING OFF DEBT?!

Latest News

Posted by: Crystal Stewart

Looking to access equity in your home to pay off debt or renovate this spring? Let’s talk about refinancing your mortgage. When we refinance we are looking to move debt from bad (unsecured) debt to good debt where it is secured against an appreciating asset. Having high usage of your credit limits is likely eroding your credit score and costing you more over time than is necessary.

The major benefits of a refinance are puting all expenses into one low interest debt, reducing your overall monthly interest cost yet most important for families is the monthly cash flow improvement!!

Many people simply get a bit too deep into multiple lines of credit, new car payments and credit cards. It happens all too quickly where people overestimate what they can comfortably afford. The focus of debt cost unfortunately has shifted where folks are not concerned about the total debt amount or payoff schedule, the determining factor seems to have evolved to whether they can handle the monthly payment; cars, toys, vacations all start to add up.

This is a prime time to reassess your current financial situation. The market is hot right now and equity in your home has most likely increased a large amount! If you owe significant amounts on credit cards, lines of credit or other consumer debts, there may be enough headroom in your equity to allow you to refinance. Another prime reason to consider a refi would be property improvements and renovations, where you may be accessing equity yet the added debt may be directly offset by the increase in your property value and quality of living.

Ultimately, it is best to consult with a mortgage professional first. Let the math and numbers show you whether it makes sense to make the change. Our job is not to sell you a mortgage. We offer solutions or strategies through showing the numbers in a way that may have not occurred to you before! I can be contacted at your favouite method of communication – Text, Call, Email, Facebook, Instagram etc. Contact me for a FREE evaluation of your home value, mortgage and refinancing options!