Fort McMurrays Real Estate Blog

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The Credit Crunch & Your Mortgage

 A friend Gary Tagg sent me this report.

With the election now in the past, the big news headlines are all about the economy. Terms such as "credit crunch" have been coined to try and describe what the international financial sector has been experiencing.

We thought we would spend a few minutes and go over how this credit crunch has affected the mortgage markets.

1. Existing Adjustable Rate Mortgages

If you are fortunate enough to be in a floating interest rate mortgage, you have probably noticed your payments decrease over the past several months. You will also notice in November that your payments will have gone down again.

Prime, which your mortgage rate is floating against has gone from 6.25% all the way down to 4.0%. For many of our clients, that means an interest rate less than 3.5% on your mortgage. These current rates are likely to stay low (or even up to 0.75% lower still) until 2010.

The Bank of Canada released a statement on Tuesday indicating that we are still likely to see a few more rate cuts saying "some further monetary stimulus will likely be required" and has indicated that inflation in 2009 will be close to 0.60%, much lower than the ideal 2.0%.

2. New Adjustable Rate Mortgages (and Home Equity Lines of Credit)

While we used to offer rates as low as Prime LESS 0.90% on Adjustable Rate Mortgages, those rates have slowing edged their way up. In the last 4 weeks, we have seen two trends with this type of mortgage offering:

1. Rates have gone from being LESS than Prime to being MORE than Prime. Today, our lowest Adjustable Rate Mortgage is at Prime PLUS 0.75%.

2. Some lenders have stopped offering floating rate products altogether. For a few days even CIBC stopped offering them, but brought them back (albeit at a much higher rate) a few days later.

3. Fixed Rate Mortgages

We have recently seen rates on Fixed Rate Mortgages go up, but they haven't yet increased beyond levels we have seen in the last year. If you are currently in a Fixed Rate Mortgage, you can rest assured that your payments will not change until your mortgage comes up for renewal.

4. Mortgage Renewals

If your mortgage is coming up for renewal, there are many factors to consider. Please give us a call at 1-877-241-8934 or visit http://www.albertahomemortgages.com  before signing any renewal papers!

 Once you know that you are ready to purchase a home in Fort McMurray, please visit www.McMurraysBestHomes.com or call Patrick Dardis of Royal LePage True North Realty at 780 715-1382

 

0 commentsPatrick (Pat) Dardis • October 28 2008 08:47AM

Home Maintenance Checklist for Fall and Winter

 
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Home Maintenance Checklist for Fall and Winter in Fort McMurray, Alberta.

As the winter season approaches and the air become crisp, it's time to start thinking about preparing your house for the season. The winter season means spending more time indoors, hence roofs need to shed rain and snow, windows and doors need to reject the cold, and the heating system needs to keep rooms comfortable. If any of these components don't hold up, you might be faced with scrambling around in the wet, cold and dark to fix them.

By handling these important yet reasonably easy tasks now, you can avoid considerable grief later.

Outdoor Preparation

  • Check the roof for cracked or missing shingles, bald spots on shingles, missing or damaged flashing, and other conditions that might allow leaks. Replace any roof shingles that are missing or damaged. Seal minor cracks or tears with roofing cement.
  • Check the gutters. If they are clogged with leaves and debris, clean them. Gutters prevent basement and foundation flooding and water damage to siding, windows, and doors.
  • Check the siding for cracks or damage and seal any leaky spots with clear caulking compound.
  • Windows and doors. Make sure they are properly sealed with weather stripping and replace any damaged parts. Weather stripping prevents drafts and winter heat loss.
  • Trim trees and bushes away from the house.
  • Cover air conditioner and barbecue to prevent winter damage.
  • Store lawn and patio furniture in a shed or basement. If space is limited, weather-resistant covers can protect outdoor furnishings.
  • Close your pool before leaves start to fall, and night-time temperatures begin to drop and you risk an algae bloom.
  • Drain and shut off outdoor water faucets and remove and store garden hoses.
  • Store kids toys indoors or in an outdoor shed to prevent rusting and fading.
  • Check and repair exterior lighting before daylight fades.
  • Scrape peeling paint and apply touch up paint to your siding, trim and fences, and apply waterproofing sealer to your deck if necessary.
  • Examine driveways and walkways for cracks. Larger cracks should be sealed to keep out water.

Lawn and Garden

  • Prepare planting beds when the soil is relatively dry. By adding soil and mulch to your beds, you'll be a step ahead for spring planting.
  • Plant spring blooming bulbs and perennials.
  • Protect roses, saplings and small trees by sheltering them with a burlap screen.
  • Pull weeds to reduce the number of seedlings next spring.
  • Mow grass short for the final cut of the year by reducing the cutting height gradually to 3.5 cm (from 7.4 cm) until the grass stops growing.
  • Check ground grading around the house. All surfaces next to the walls  should be sloped to shed water away from the house. This is most important on warm winter days, as melting snow runs quickly across the surface of frozen ground. If the grading is incorrect, water will potentially flow into the house, causing basement leakage. Now is the time to use a shovel to re-slope the grass, or call a paving contractor to correct a negatively sloped walkway or driveway.

Indoor Preparation

  • Bring container plants inside and make sure they are free of pests. Doing so may enable plants to survive the season and bloom again in spring.
  • Caulk around window and door casings to keep out air and water. If your house has wood siding with window frames that stand out from the siding, caulk the top and sides of the frame. Don't caulk under the sill as this space should be left open to allow moisture inside the wall to escape. If your house is brick or stone, with window frames that are set into the finish material, caulk all four edges of each frame where the brick mould meets the masonry.
  • Clean or replace Furnace filters as needed. Check and clean dryer vent, air conditioner, stove hood and room fans. Keep heating and cooling vents clean and free from furniture and draperies.
  • Ensure that all smoke detectors, carbon monoxide detectors and fire extinguishers are in good working order. Replace batteries as needed, or at least twice each year.
  • Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend annual inspections.
  • Have your chimney(s) inspected by a chimney service and, if necessary, cleaned. Cleaning is generally recommended at least once a year for an active fireplace.
  • Store plenty of salt or rock salt, snow shovels, and any other items you will need during the winter.
  • Examine the basement floor and walls for cracks or leaks; seal as needed.

If you plan to reside elsewhere during the winter months, you may want to partially shutdown your home. In addition to the tips above, consider the following:

  • Leave the temperature at its lowest setting, usually between 5 to 7 degrees Celsius or install a low-heat thermostat to maintain the air temperature at approximately 5 degrees Celsius
  • Turn off and drain the water heater; leave a reminder to refill before restarting.
  • Keep the electricity on so lights will continue to function (put lights on timers).
  • Unplug the microwave, clothes dryer, televisions and other appliances not in use.
  • To avoid large repair bills and the hassle associated with breakdowns, take the time now to develop an action plan for the coming months. You'll feel secure in your warm home or while you're away from home.


A Fort McMurray winter can be hard on a house, following the easy steps above will help preserve your investment and prevent any unnecessary chores or repairs that might be difficult to do during winter.

For all your Real Estate needs in Fort McMurray, please visit www.McMurraysBestHomes.com or call Patrick Dardis of Royal LePage True North Realty at 780-715-1382

3 commentsPatrick (Pat) Dardis • October 28 2008 08:37AM

Dealing with Indoor Mould

 
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What is mould?

Mould is microscopic fungi, a group of organisms which also includes mushrooms and yeasts. Fungi is highly adapted to grow and reproduce rapidly, producing spores and mycelia in the process.

You encounter mould every day. Foods spoil because of mould. Leaves decay and pieces of wood lying on the ground rot due to mould. That fuzzy black growth on wet window sills is mould. Paper or fabrics stored in a damp place get a musty smell that is due to the action of mould.

Mould, however, can be useful to people. The drug penicillin is obtained from a specific type of mould. Some foods and beverages are made by the actions of mould. Good mould is selected and grown in a controlled fashion.

Mould is undesirable when it grows where we don't want it to, such as in our homes. Over 270 species of mould have been identified as living in Canadian homes. Mould that grows inside may be different from mould found outside.


What makes mould grow?

Mould needs moisture and nutrients to grow. High moisture levels can be the result of water coming in from outside, through the floor, walls or roof; or from plumbing leaks; or moisture produced by the people living in the house through daily activities like bathing, washing clothes or cooking. Water enters the home when there is a weakness or failure in the structure. Moisture accumulates within a house when there is not enough ventilation to expel that moisture.

Different kinds of mould grow on different materials. Certain kinds of mould like an extremely wet environment. Other kinds of mould may be growing even if no water can be seen. Dampness inside the material can be enough to allow the mould to grow.


What are the health effects of exposure to mould?

In addition to often ruining surfaces and materials upon which it is present, certain strains of mould can also be quite damaging to our health. Indoor mould has been implicated in causing cold symptoms, headaches, difficulty breathing, skin irritation, allergic reactions and aggravated asthma symptoms. Pregnant women, infants, the elderly and those with respiratory problems or weakened immune systems are more susceptible to mould.

How do I know if I have mould?

Mould may be any colour: black, white, red, orange, yellow, blue or violet. Dab a drop of household bleach onto a suspected spot. If the stain loses its colour or disappears, it may be mould. If there is no change, it probably isn't mould. Sometimes mould is hidden and cannot be seen. A musty or earthy smell often indicates the presence of mould. Even when you don't notice a smell, wet spots, dampness or evidence of a water leak are indications of moisture problems and that mould may follow.

White salt marks forming on concrete might indicate that excessive moisture is moving through the foundation. Get your weeping tiles checked by a professional.


How can I prevent mould?

Keep it out. Although mould usually develops due to the conditions outlined above, it can also be brought into the home on furnishings, potted plants, stored clothing and bedding material that we might bring in from outside. It's important that you check that items are mould-free before bringing them into your home.

Keep it clean. Old-fashioned housekeeping is the first line of defence against mould. There are no strict guidelines for how often to give your home a good scrub, but people who are more sensitive to allergens should clean more often, perhaps on a weekly basis, while others might be able to go two weeks between rigorous cleaning.

Keep it dry. You should keep humidity levels low in your home. Give your home as much ventilation as you can comfortably achieve. Opening windows when cooking or when taking a bath or shower helps to reduce the amount of moisture in the air and you should keep on top of any areas that are prone to condensation. Wipe down kitchen work surfaces regularly and clear up any spills or stagnant pools of water. If some materials cannot be completely dried (eg., drywall or insulation), you should replace them.

Keep it uncluttered. Don't store boxes up against concrete walls or floors. This could lead to moisture getting into the boxes and creating a haven for mould while damaging your goods.

How do I deal with mould and moisture?

Keep an eye out for leaks by identifying small pools of water, any discolouration or wet spots. Fridges, freezers, air conditioners and leaky washing machines are all easy targets and either a visible mould patch or a musty smell is usually the giveaway.

There are various products on the market that will help, such as fungicidal products. Wipe down affected areas with a fungicidal product that carries a Health and Safety Executive "approval number". Dry-clean mildewed clothes and shampoo mouldy carpets. Where possible, remove lining paper and wallpaper where you suspect mould growth, treat the plaster and then paint or paper the area again. After treating mould-affected areas, redecorate using a good-quality fungicidal paint.

If you have problems controlling mould or a family member suffers from respiratory or other health problems that appear to be aggravated inside the home, seek a professional by contacting your local Canadian Mortgage and Housing Corporation (CHMC). The CMHC can provide you with a list of individuals who have completed the CMHC Residential Indoor Air Quality Investigator program.
 

1 commentPatrick (Pat) Dardis • October 27 2008 10:17AM

Today's Housing Market Offers Unique Opportunities for Home Buyers

 
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The news is filled with headlines about the state of today's housing market south of the border-"Foreclosure sales are up." "Real estate prices are down." "Borrowers are defaulting on sub-prime loans." It's easy to be confused and uncertain about whether now is a good time to buy a home.

Although the Canadian market is not as robust as it was a year ago, housing prices have been stable for several months, mortgage rates have dropped this year and there is overwhelming choice of homes currently available in all price ranges. All these factors add up to an ideal market place for first time or move up home buyers.

The turbulence we're seeing in the housing market is not all problematic. For some, it has opened up new opportunities. If you have good credit and your finances are solid, you may be able to benefit from today's housing market.

As a first-time home buyer the current market offers you many advantages, such as:


1. Lower interest rates
Today's long-term fixed mortgage rates are relatively low. The Bank of Canada had dropped the key interest rate a couple of times in the last few months. Today's historically low interest rates mean you'll benefit from increased buying power if you're shopping for a home.

2. More negotiating power
In the hot real estate market of a few years ago prospective home buyers often found themselves in a bidding war when making an offer on a home. Today's cooler market means buyers have more bargaining power. More sellers are now willing sell at less than list price or offer other incentives.

3. Wider selection of properties
Today's larger inventory of homes for sale means more properties to choose from. It also means home buyers can afford to be more discriminating and take the time to find a home with all of the features that they are looking for.

4. Sales incentives
Many new home builders are beginning to offer incentives to lure buyers. In some cases, they're offering price discounts or complimentary extras such as granite kitchen countertops or upscale appliances. Some private home sellers are also throwing in a variety of incentives such as paid closing costs or free home inspections.

Historically, the housing market has been cyclical. Every period of sustained price increases has been followed by a period of declining values. It's therefore not surprising that after the boom of the last few years, we're currently experiencing a housing market correction. In most parts of the country, the days of being able to profit from buying and selling a property quickly may be over, at least for a while. But owning a home and building equity in real estate is likely to remain a sound long-term investment.

The fundamentals of the Canadian economy and today's buyers market suggest that now is an excellent time for prospective buyers to explore opportunities to buy a new home. Consult with your agent, do some research, and buy, buy, buy!

2 commentsPatrick (Pat) Dardis • October 22 2008 05:23PM

The Inspiration for the film "The Secret" can from....

The Inspiration for the film - The Secret

The inspiration for the movie came from a simple little book written in 1910. It's called the "Science of Getting Rich" and its author was a man called Wallace D. Wattles.

This is a summary of Wallace's book:

There is a universal energy from which all things are made. This energy fills the entire universe.

When you form a thought in your head, you tap into this energy, and you actually create that which you are thinking about.

Mankind has the ability to create a thought and cause the subject of the thought to be created within this field of Universal Energy.

To activate this ability, we must learn to harness our creative mind. Typically, we function with our competitive mind. But to create things with thought, we need to activate the creative mind.

We can come into harmony with this Universal energy through the act of expressing gratitude. Gratitude unifies our mind with this all encompassing Universal energy.

To manifest something new, simply hold an image of what you seek in your mind. And express gratitude to the Universe for having granted this to you. To achieve wealth, apply this same principle - hold a clear vision of the wealth you hope to attain. Then express gratitude that this wealth is coming to you. You must have unwavering faith and devout gratitude.

All that you include in your mental image will come to you through the physical realm - through the process of natural ways such as trade and commerce.

To claim this wealth, you must be active. You must do all that you can do each day to make this vision a reality. Especially strive to deliver to others something of value greater than what they paid you for.

Those who practice these instructions will get rich. And the riches they receive will be in the exact proportion to the definiteness of their vision, the fixity of their purpose, the steadiness of their faith, and the depth of their gratitude.

0 commentsPatrick (Pat) Dardis • October 21 2008 04:49PM