Buyer Information
What are the important factors to consider when purchasing a house?
What are the important factors to consider when purchasing a house? – Key Information The purchase of a property is much more than just a
27 March 2024
Real estate brokers in Outremont
Property evaluation in Outremont
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How to choose your home inspector? - Key Information
In the purchase agreement, there may be an inspection clause, conditioning the purchase on such an evaluation. Therefore, the buyer must have the property inspected by a home inspector before finalizing the purchase. This professional’s mission is to describe and evaluate the physical condition of the building, thus revealing any concerning elements or major issues not mentioned in the seller’s disclosure form, and providing this information in a written report. Pre-purchase inspection thus protects the buyer before completing the real estate transaction. As part of the buying process, the collaborating broker accompanying the buyer should recommend a comprehensive pre-purchase inspection by a professional. The choice of the home inspector is of great importance in the real estate purchase. Here are some steps to follow when selecting a home inspector after submitting an offer on a property.L’inspection est un élément incontournable du processus d’achat ou de vente immobilier. Effectuée par un professionnel qualifié, elle représente un examen minutieux de la propriété, de ses systèmes et de ses composants. Cette étape cruciale permet aux acheteurs de prendre des décisions éclairées en évaluant l’état général de la propriété, en identifiant d’éventuels problèmes ou défauts cachés, et en estimant les coûts potentiels de réparation ou de rénovation.Dans la promesse d’achat, il peut y avoir une clause d’inspection, conditionnant l’achat à une telle évaluation. L’acheteur doit donc faire inspecter la propriété par un inspecteur en bâtiment avant de finaliser l’achat. Ce professionnel a pour mission de décrire et d’évaluer l’état physique de l’immeuble, révélant ainsi d’éventuels éléments inquiétants ou des problématiques majeures non mentionnées dans le formulaire de déclarations du vendeur, fournissant ces informations dans un rapport écrit. L’inspection préachat protège ainsi l’acheteur avant de conclure la transaction immobilière.Dans le cadre du processus d’achat, le courtier collaborateur accompagnant l’acheteur doit recommander une inspection préachat complète par un professionnel. Le choix de l’inspecteur en bâtiment revêt une grande importance lors de l’achat immobilier. Voici quelques étapes à suivre pour sélectionner un inspecteur en bâtiment après avoir soumis une offre sur une propriété.Inspection is an essential component of the real estate buying or selling process. Conducted by a qualified professional, it represents a thorough examination of the property, its systems, and its components. This critical step enables buyers to make informed decisions by assessing the overall condition of the property, identifying potential hidden issues or defects, and estimating potential repair or renovation costs.In the purchase agreement, there may be an inspection clause, conditioning the purchase on such an evaluation. Therefore, the buyer must have the property inspected by a home inspector before finalizing the purchase. This professional’s mission is to describe and evaluate the physical condition of the building, thus revealing any concerning elements or major issues not mentioned in the seller’s disclosure form, and providing this information in a written report. Pre-purchase inspection thus protects the buyer before completing the real estate transaction.As part of the buying process, the collaborating broker accompanying the buyer should recommend a comprehensive pre-purchase inspection by a professional. The choice of the home inspector is of great importance in the real estate purchase. Here are some steps to follow when selecting a home inspector after submitting an offer on a property.
Inspection is an essential component of the real estate buying or selling process. Conducted by a qualified professional, it represents a thorough examination of the property, its systems, and its components. This critical step enables buyers to make informed decisions by assessing the overall condition of the property, identifying potential hidden issues or defects, and estimating potential repair or renovation costs.
In the purchase agreement, there may be an inspection clause, conditioning the purchase on such an evaluation. Therefore, the buyer must have the property inspected by a home inspector before finalizing the purchase. This professional’s mission is to describe and evaluate the physical condition of the building, thus revealing any concerning elements or major issues not mentioned in the seller’s disclosure form, and providing this information in a written report. Pre-purchase inspection thus protects the buyer before completing the real estate transaction.
As part of the buying process, the collaborating broker accompanying the buyer should recommend a comprehensive pre-purchase inspection by a professional. The choice of the home inspector is of great importance in the real estate purchase. Here are some steps to follow when selecting a home inspector after submitting an offer on a property.
1. Search for a certified inspector
In Quebec, there is no professional order for pre-purchase inspectors. However, there are home inspector associations that have developed practice guidelines to guide inspectors in their profession. Additionally, an inspector may be a member of a professional order such as the Order of Certified Appraisers of Quebec, the Order of Professional Technologists of Quebec, or the Order of Architects of Quebec. These various orders aim to protect the client and ensure that their members have professional liability insurance.
2. Check professional liability insurance (or errors and omissions insurance)
Professional liability insurance, commonly known as errors and omissions insurance, protects the professional from the costs associated with losses suffered by the client in case of errors or incorrect advice. Ensure that the home inspector is properly insured in case of issues or professional errors during the inspection. Obtain written proof to verify this. This can protect you in case of disputes.
3. Ask for recommendations
To find a suitable home inspector, ask your real estate agent for recommendations. They will be able to provide you with a list of quality inspectors, and you will have the freedom to make your own choice. You can also ask your acquaintances for references. Personal recommendations are often valuable.
4. Read online reviews
Online reviews provide an authentic insight into the past customers’ experiences with a home inspector. This helps you get an idea of the quality of service offered and the inspector’s reliability. Feel free to read Google and Yelp reviews to learn more about the services offered by potential inspectors.
5. Get a fair price
While the cost of the inspection should not be the sole determining factor, it’s important to compare rates from different home inspectors to ensure you find a professional who offers good value for money. It’s worth noting that your real estate broker cannot pay the home inspector’s fees as it could lead to conflicts of interest. You will need to cover this cost. A competent inspector will charge for travel, the inspection itself, and the production of the report. On average, in the Montreal region, inspectors charge $700 for divided and undivided condominiums. This cost increases to $900 for single-family homes. Some inspectors may charge a lower amount but prioritize quantity over the quality of the inspection, so be cautious.
6. Ask the right questions
It is important to be prepared and have a list of questions to ask the inspector. Typical questions would include: What is your training? How many years have you been practicing in this field? Are you a member of a professional association or inspector’s association? On average, how many inspections do you conduct per week? Are you an expert in a specific area/neighborhood of Montreal? Are you specialized in a specific type of property (e.g., condominium, house, multiplex, etc.)? What is the turnaround time between the inspection and the production of the report?
7. Learn about the inspection report
After an inspection, a quality home inspector will provide an inspection report that should be clear and explain the potential consequences for each issue. Before selecting your inspector, ask potential inspectors questions about the elements that will be included in the inspection report to better understand how it will be detailed.
8. Trust your instinct
Choose a home inspector with whom you feel comfortable and in whom you have confidence to conduct a thorough and impartial inspection.
Choose a home inspector with whom you feel comfortable and in whom you have confidence to conduct a thorough and impartial inspection.
As mentioned, the inspection is a crucial step to ensure that you are investing in a property in good condition and free from hidden defects. Once you have taken all these factors into account, you should be able to select a competent home inspector to examine the property you are considering purchasing. Additionally, don’t hesitate to contact your real estate broker, who will provide valuable advice for making an appropriate choice of a home inspector.
Encountered issues during the inspection? Check out our article : Is it possible to withdraw from an offer to purchase following an inspection?
Thomas Audibert, residential and commercial real estate broker, answers this question
Questions about the subject? Contact a real estate broker
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Buyer Information
The Benefits of the Exclusive Brokerage Contract – Purchase (BCP)
The Benefits of the Exclusive Brokerage Contract – Purchase- Key Information When purchasing a divided or undivided co-ownership, or a building with fewer than 5
13 February 2024
Buyer Information
How does an Exclusive Brokerage Contract – Purchase (BCP) work?
How does an Exclusive Brokerage Contract – Purchase (BCP) work?- Key Information When purchasing your property, you are represented by a real estate broker. This
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Differences between a residential building and a commercial building- Key Information
What is a residential building?
It is a space where individuals and families live and reside. Residential real estate pertains to properties used for housing purposes. Single-family homes, apartments, condos, and apartment buildings with four units or fewer are considered residential buildings.
Owners of residential real estate can be individuals, real estate investors, or companies specializing in the residential sector. For the purpose of renting the property, the landlord must fill out the mandatory lease from the Tribunal administratif du logement. In residential real estate, the lease is typically of shorter duration, usually ranging from six to 12 months. When acquiring a used residential real estate property (not considered new), the transaction is exempt from GST (Goods and Services Tax) and QST (Quebec Sales Tax).
What is a commercial building?
It is a space designed to house commercial, industrial, office, or retail activities. Commercial real estate pertains to properties used for commercial or professional purposes. A building is considered commercial when it has five or more residential units. A mixed-use building is also considered commercial. It features a structure where the lower levels are intended for businesses or offices, while the upper floors can be configured as apartments or residential units. Offices, shopping malls, warehouses, hotels, restaurants, and industrial complexes are examples of commercial buildings.
Owners of commercial real estate can be institutional investors, businesses, real estate developers, or individuals. When purchasing a commercial property, GST (Goods and Services Tax) and QST (Quebec Sales Tax) apply to the portion representing the percentage used for commercial purposes. Commercial real estate is often leased to businesses or commercial tenants, which can generate higher income compared to residential real estate.
Commercial leases
Commercial leases typically have longer terms and specific conditions. Some leases can have a duration of five to ten years. Moreover, in the commercial sector, it is not mandatory to use leases from the Tribunal administratif du logement, as is the case in residential real estate.
Different rules apply to commercial leases. For instance, the owner of a commercial property can request a security deposit from the tenant, which is not allowed in residential leases. They can also prohibit subleasing or the termination of the lease by the tenant. At the end of the lease, the tenant must vacate the commercial space, whereas in residential real estate, the lease is automatically renewed. Additionally, in case of a dispute, the owner and the tenant must go to the Superior Court or the Court of Quebec, rather than the Tribunal administratif du logement as is the case in residential real estate.
Different terms are used to refer to what landlords and tenants must pay in a commercial lease:
-Gross lease: This is a lease where everything is included. The tenant only has to pay their rent. Costs related to the property are included in the rent or paid by the landlord. Charges included in a gross lease may encompass utilities (such as water, electricity, and heating), maintenance of common areas, property taxes, basic insurance costs, and similar expenses. However, it’s important to note that how these charges are apportioned between the tenant and the landlord can vary from one gross lease to another.
-Triple Net Lease (Net, Net, Net): In a triple net lease, the tenant is responsible for paying, in addition to their base rent, the expenses related to the property (cleaning, electricity, municipal or school taxes, etc.). In a triple net lease, the tenant assumes the responsibility of paying not only the base rent but also all operating expenses of the property, including property taxes, insurance premiums, and maintenance costs.
Key differences between a residential building and a commercial building
The main distinctions between residential and commercial real estate lie in the use of the properties. Residential buildings are intended for habitation and living, whereas commercial buildings are designed to house businesses and economic activities. They encompass different types of properties. A residential building can be a single-family home, while a commercial building can be a hotel, for example. The type of lease and the lease duration will also be different. A commercial lease will typically have a longer duration than a residential lease and is not bound by the mandatory model provided by the Tribunal administratif du logement. As mentioned earlier, there are many distinctions between residential and commercial leases.
Finally, the financial objectives associated with them will differ. The primary objective of residential real estate is generally to provide a living space for its occupants. While some individuals may invest in residential properties for rental purposes, the priority is often the quality of life for the residents rather than income generation. On the other hand, the primary goal of commercial buildings is to generate income from the economic activities they house. Commercial property owners can generate income in the form of rent and may also benefit from the appreciation of real estate values based on business performance.
Catalina Camacho, residential and commercial real estate broker, answers this question
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Buyer Information
The Plateau-Mont-Royal amends its Zoning By-law (01-277).
The Plateau-Mont-Royal amends its Zoning By-law (01-277) In the midst of a housing crisis, the Plateau-Mont-Royal borough in Montreal has recently announced the adoption of
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Buyer Information
The FHSA or the Tax-Free First Home Savings Account
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The FHSA - Key information
Buying a home is an important investment that can lead to one of your best investments for life. There are many potential buyers, but there are also many who are having trouble getting the down payment they need for such a large real estate purchase, especially with rising property prices.
Since the last election campaign, the Liberal government, under the leadership of Justin Trudeau, had mentioned the possibility of introducing an RDSP. This registered program would be dedicated to first-time buyers under the age of 40 to help them access their first home. However, the idea of the RDSP was abandoned and replaced by the FHSA or tax-free savings account for first-time home buyers. The FHSA would be in place as of April 2023 and has certain features.
The FHSA : what does it consist of?
The Tax-Free First Home Savings Account (FHSA) is designed to help first-time buyers save for their down payment. The main idea is to help young people become homeowners through the housing frenzy. The FHSA combines a variety of TFSA (tax-free savings account) and RRSP (registered retirement savings plan) benefits.
In this form of savings, an individual can contribute up to a maximum of $8,000 per year, for a maximum accumulation of $40,000. These contributions are tax-free and the accumulated income is tax-free, so there is nothing to pay back over the years. Withdrawals from the purchase of a property are then also non-taxable.
Its eligibility criteria
In order to access and benefit from the TFSAPP, certain eligibility criteria must be met:
-You must be a Canadian citizen and resident 18 years of age or older.
-There is no maximum age limit for opening an account.
-You must not have acquired a property when opening an account or four years before opening it. It must therefore be a first real estate purchase.
Its characteristics
The FHSA also has certain features:
-The maximum contribution per year is $8,000.
-Unused contributions can be transferred to the following year.
-The maximum FHSA limit is $40,000.
-Like an RRSP, contributions are fully tax deductible. This increases the ability to save.
-Withdrawals related to the purchase of a property are non-taxable.
-These non-taxable withdrawals will be used to purchase a single property for life.
-If a withdrawal is made and has a purpose other than the purchase of real estate, the amount of the withdrawal will then be taxable.
-The HBP (home buyers’ plan) and FHSA can be combined to purchase your first home.
-The money can be invested in a FHSA for up to 15 years or until the age of 71. If this maximum period is reached, the account must be closed and the total amount of the accumulated money transferred to an RRSP.
–If you want to purchase a property with your spouse, you can combine the accumulated amount of your FHSA with another FHSA account for the down payment.
The FHSA then presents certain constraints, but also significant advantages for a first-time buyer.
What types of investments can you hold in a FHSA?
Other products will be offered over time. Here are the ones currently known:
-Stocks, options and bonds
-Savings deposits
-Exchange Traded Funds (ETFs)
-Cash
What are the steps when buying a property?
-Have a written agreement to buy in Canada
-Be considered a first buyer (of a first property)
-Make the withdrawal of the CELIAPP 30 days after the purchase of the property, thus following the passage to the notary
-Closure of FHSA must occur on December 31 of the following year of the first eligible withdrawal
What happens if you don’t buy a property?
After the maximum period of 15 years, you have two options. You can withdraw the full amount accumulated in your FHSA, but it will be taxed. The second option is to transfer FHSA amounts to your RRSP or RRIF (Registered Retirement Income Fund) without tax impact without affecting your RRSP contribution room.
How do I open a FHSA account?
The FHSA account is available in the various banks across the country. It’s a simple process to open an account. Make an appointment with your bank advisor, in person at the branch, by phone or virtually.
Available in 2023, the Tax-Free First Home Savings Account (FHSA) is designed to help first-time buyers through the housing frenzy to save for their down payment. The FHSA has many advantages, such as improved ability to save, with fully tax-deductible contributions and non-taxable withdrawals on the purchase of your first home. In addition, the maximum FHSA limit is raised to $40,000, for a maximum annual contribution of $8,000. The FHSA has many advantages for the purchase of your first property.
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Selling before buying or buying before selling? - Key Information
Should I sell my property before buying one or buy before selling my current property? Many people ask this question because of uncertainties in the process of selling and purchasing real estate.
Our real estate brokers, experts in Montreal neighbourhoods, believe that selling before buying is the best option. That said, each case is different and we will try to give you a picture of the advantages and disadvantages of the two scenarios in order to help you.
Buying before selling
Fear of the unknown leads some individuals to opt for this sequence when they are looking for a new property. It is more precisely the fear of not finding the property that meets the criteria of purchase after receiving an interesting offer on their real estate that is at the heart of their concerns. That said, buying before the sale can be an attractive option in the case of a cash purchase.
Advantage of buying before selling
• More time: Aside from your personal constraints, you have all the time you need to do your real estate searches.
Disadvantages of buying before selling
• A purchase offer conditional on the sale: In the case where the buyer must sell to recover the proceeds of the sale in order to finance a new purchase of a property, when he finds the desired property, the latter must submit a purchase offer conditional on the sale of his property. Otherwise, there is a significant financial risk or a much higher purchase cost. Until you have an unconditional offer to purchase your property, there will be uncertainty about your purchasing power, including how much you can spend on your down payment.
• Additional costs incurred by a bridge loan: If you need the proceeds from the sale of your property for your purchase, your bank or lender can offer you the option of a bridge loan to acquire the desired property. However, it will cost several thousand dollars to cover the administrative costs, as well as the interest costs associated with granting the loan.
• A less competitive and more stressful offer to purchase: Writing an offer to purchase that includes the condition of sale makes your promise to purchase less attractive to the seller. In addition, once your offer to purchase is accepted, it will include a 72-hour clause. Thus, as long as the terms of your sale are not fulfilled, the 72-hour clause indicates that the seller can find another buyer. In general, the buyer’s deadline for fulfilment of the conditions is 30 to 90 days. This number may vary depending on the agreement between the seller and the buyer. If the seller receives an even more attractive offer from another buyer and the conditions are lifted before yours, the seller will have 72 hours to send you a notice, being the first buyer. You should then lift all your conditions, including the sale of your property and provide proof of the financing of the purchase. In short, the addition of this condition can raise many concerns and lead you to make concessions that you would not normally make.
• The risk of not selling: An additional disadvantage to buying before selling your property is not being able to sell your property once your buying process has begun. For example, you accepted an offer to purchase your property and during the inspection a problem affecting the building was discovered. Whether this problem is real or imagined, major or insignificant, the buyer can cancel his offer which will have catastrophic consequences on your own buying process, not to mention the loss of value of your property.
Selling before buying
This sequence remains the most financially secure option as it involves selling your property and using the proceeds of the sale to acquire a new property.
Advantages of selling before buying
• A reduction in financial risks: In most cases, the sale of a property helps finance the purchase of a new property. Selling your property allows you to recover the value of the property and then have a better knowledge of the actual budget allocated to the future purchase including the amount of your down payment. So it’s a safer option. In addition, the expenses are only related to one property, one mortgage, and you will not have the additional costs of a bridge loan.
• Better negotiating power: When you sell before you buy, you will have fewer constraints since you have no commitment to buy real estate. In this sense, since you will not feel a sense of urgency, you will have less pressure to sell and will therefore be less inclined to accept an offer that does not meet your expectations, which will result in a higher sales price. You’ll have more bargaining power.
• A more competitive offer to purchase: As mentioned, with the sale price of your property, you have a better idea of the amount you will pay on the new property. You will not have to submit an offer conditional on the sale of your property. You can then make offers to purchase with only the basic conditions (inspection, financing and document review).
Disadvantage of selling before buying
• The impossibility of finding the desired property: The main drawback of the pre-purchase sale that worries some homeowners is not being able to find a property that fits their needs once their current home is sold. This could result in a temporary rental while finding the ideal property. That said, with the assistance of an expert real estate broker in your neighbourhoods for the sale of a property and the purchase of a new one, this scenario can be avoided.
Any hesitation?
Selling and/or buying your property is an important event that can generate considerable stress and where constraints and uncertainties can occur. In order to simplify this process, to obtain better purchasing power and especially to reduce financial risks, it is generally recommended to sell your property before buying a new one.
In addition, in our opinion, the key to success is to accept an offer to purchase in which the deadline for signing the act of sale is more than 90 days, while being accompanied by a real estate broker who has a great deal of expertise in the acquisition of real estate.
Still hesitating about the right decision? Contact one of our real estate brokers who will enlighten you on the subject and according to your needs.
Summary
There are many questions about whether it is better to sell your property before buying a new one or whether it is better to buy before selling. According to our team of experts, it is always preferable to sell your property before making a new acquisition of real estate. The benefits are many: you reduce financial risks, you will have more time to make an informed decision about the sale and purchase of a new property. When you make an offer to purchase, you will have fewer conditions, which can then attract more sellers. Selling before purchasing a new property helps alleviate worries about this important event of a lifetime. As for the purchase before the sale, this option is interesting only in the case of a cash purchase. If you have additional questions, do not hesitate to contact a YE/SARRAZIN real estate broker !
Questions about selling before buying or buying before selling? Contact one of our real estate brokers to find out more
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Selling without legal warranty - Key Information
You are looking for a property in Montreal with your real estate broker. When you search online, the detailed sheets of properties have the mention of “sale without legal warranty of quality, at the buyer’s risk and peril. As you are not certain of the meaning of these terms and their implications, you then ask your real estate broker for further information.
Your real estate brokers answer all your questions:
What is a legal warranty in real estate?
In Quebec, the law provides that the sale of real estate must guarantee the quality and the right of ownership. These two guarantees constitute the legal warranty.
The guarantee of quality concerns hidden defects. When we talk about hidden defects, we are talking about a “hidden” defect that will undermine the quality of the building. This defect is known by the seller and has been omitted from the Seller’s Declaration (VIS). In addition, the hidden defect existed at the time the purchase but was unknown to the buyer. The hidden defects are not usually not easily noticeable and can be for example mold in the walls, cracks in the foundations, moisture on the ground, water infiltrations, etc.
The guarantee of the right of ownership (security of title) is related to the vices of title of ownership. This would refer to a situation that would prevent the buyer from exercising his right of ownership. For example, the seller would not have repaid his mortgages in full and would have failed to mention it to the buyer.
What is a sale without legal warranty “at the buyer’s own risk”?
A sale without legal warranty implies that the buyer agrees to acquire the property at his “ own risk and waives’’. This means that in the case of hidden defects, recourse against the seller is limited, hence the importance of pre-purchase inspection. The seller should still indicate the past defects and complications with the property and must act in good faith, in order to be transparent. The buyer must read it, but understands that he or she has no guarantee on the quality of the property.
For a sale without legal warranty to take place, there must be a mention in the Seller’s Declaration or the Offer to Purchase. This must also be indicated in the act of sale.
The phenomenon of sale without legal warranty has been observed in real estate transactions for several years in Quebec. However, this phenomenon has grown since 2019, during the pandemic. Buyers may decide to waive the legal warranty in order to acquire the coveted property more easily. Sellers, on the other hand, sell their property without legal guarantee, thinking that they will let go of their responsibility. But is it really a good idea?
What are the implications of selling without a legal warranty?
Selling without a legal warranty has significant negative impacts, especially on the value of the property. Indeed, according to a report from JLR, a property sold without legal warranty would be sold 8% to 11% less than with.
In addition, in order to make an offer more attractive, a buyer can waive the legal warranty and abandon the pre-purchase inspection. The buyer then has no recourse against the seller and is then responsible for the hidden and apparent defects of the property. Fixing these defects can result in a considerable amount of money, which is never desirable.
The reference to “at your own risk and waives” should be taken seriously.
In what situations does a sale without legal guarantee take place?
Some sellers opt to sell their property without legal guarantee. However, it is in these 3 following situations that the sale without legal warranty is the most common.
– Senior sellers: Senior sellers often decide to sell their property without a legal warranty in order to avoid liability as they approach retirement. They then move towards a smaller home.
-Estates: the heirs of a property may not have a good knowledge of its history. Indeed, the property may be old and they do not know if there have been problems in the past regarding the quality of the building. In order to protect themselves and avoid the risk of potential lawsuits, the heirs will then sell without legal warranty.
-Bank repossessions: when an owner no longer pays his mortgage, a formal notice is sent and a court judgment is issued a few months later. The bank then takes possession of the property and makes a direct sale. The buildings taken over by the banks are always sold without legal warranty, as a bank does not want to be sued for hidden defects.
Growing in popularity, selling without a legal warranty is a risky and high-risk practice. Before selling, ask your real estate broker for an expert opinion on the subject, which will guide you to the most informed decision.
The phenomenon of sale without legal warranty has been observed in real estate transactions for several years in Quebec. However, this phenomenon has grown recently with the pandemic. Sale without legal warranty implies that the buyer agrees to acquire the property at his “own risk and waives’’. This means that in case of hidden defects, no recourse against the seller will be possible, hence the importance of the pre-purchase inspection. In these three situations the sale without legal guarantee is more common: when the seller is an older person, during a succession or a bank resumption. Despite its growing popularity, selling without a legal guarantee is not recommended because it is a dangerous practice that does not provide protection to the buyer.
Questions about selling without legal warranty? Contact one of our real estate brokers
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4242 Boyer - Key Information
A sought after sector
It is in the heart of the Plateau Mont-Royal, on quiet Boyer Street, that this superb two-storey home of over 2000 sq. ft. is located. With spacious living areas on the first floor, this property is the perfect place to spend quality time with loved ones and to entertain in style!
The large kitchen, with a beautiful and convenient island in the center, lets an abundance of natural light into the entire space thanks to its large windows overlooking the lovely backyard. Perfectly adaptable to the tastes of the future owners, the outdoor space is a true haven of peace in the center of a dynamic and lively area.
Details with a unique cachet
On the second floor, the skylight also gives way to a magnificent clarity that illuminates the rooms and provides a welcoming and serene atmosphere to the place. The mix of architectural elements with preserved cachet and the modern design of the place also creates a unique contrast and provides a unique charm to the whole property.
The superb master bedroom has access to a warmly appointed balcony; the perfect place to relax and enjoy the warm rays of the sun during the summer season.
Located only a few steps from the large La Fontaine Park and within walking distance of the neighborhood’s amenities and the best gourmet addresses on Rachel Street and Mount Royal Avenue, 4242 Boyer Street welcomes you!
A truly exceptional property to discover today!
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A truly exceptional property to discover today!
Asking price : $1,949,000
Year of construction : 1900
Description : UNIQUE AND INTEMPORAL. Large living space. 3 bedrooms + ultra-functional office space for teleworking. Remarkable luminosity – abundant windows. High ceilings. Gourmet kitchen with central island. Generous master suite with bathroom and walk-in closet. Impeccable flooring. Trendy ceramics. Brick walls. Sunny and beautifully landscaped yard. Dream location!
Area : 2249 sq. ft.
Read Silo 57’s article on 4242 Boyer Street (only available in french)
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Raise in key interest rate - Key informations
In our current context of pandemic and real estate market overheating, the threat of an increase in the key interest rate has been hovering for several months. Recently, the Bank of Canada raised the rate to 0.50%. This interest rate had not increased since the beginning of the COVID-19 pandemic in 2020.
Many questions and uncertainties remain about the impact of this rate fluctuation on the real estate market. To shed some light on the key interest rate and its influence on the real estate market, we spoke with Mahsa Mirzaie, Director of Mortgage Development at National Bank.
Why does the Bank of Canada increase the key interest rate?
The objective of raising the key interest rate is to curb inflation around the world by reducing borrowing costs and encouraging savings. It is important to understand that at the beginning of the pandemic, the key interest rate was reduced three times to reach 0.25% to stimulate the economy. This rate, reached in March 2020, had never been so low, allowing the economy to recover.
Source : la Banque du Canada
How does the increase in the Key Rate affect mortgage interest rates?
When central banks raise their interest rates, the base rate of chartered banks (such as the National Bank of Canada, the Bank of Montreal, the Royal Bank of Canada) also increases, because it costs them more to finance themselves. The consequence is that several bank products with interest rates increase, such as mortgage interest rates, rates on credit margins, and other products with variable interest.
How does this affect current and future bank customers?
Existing customers
Customers that already have a fixed-rate mortgage, the interest rate will not be affected by this increase until their mortgage is renewed. The rate is set for the duration of the contract. When the contract is renewed, the new rates take effect.
Customers that already have their mortgage with a variable interest rate will have to expect a rise as fast as the following month.
Future customers
Now, for customers who are currently looking for a mortgage, it is recommended to do a pre-approval with rate guarantee as soon as possible. Indeed, despite the fact that there has been a first increase in the key interest rate, according to the forecasts, future increases in interest rates are to be expected. We must then protect ourselves against them.
What is the impact of the increase in the key interest rate on the real estate market?
According to Yanick E. Sarrazin, the team’s chief real estate broker, although the real estate market has been very interesting for several years, it should not be forgotten that the evolution of this market depends on the relationship between supply and demand. A disparity therefore creates an upward or downward impact on property prices.
Higher rates are expected to result in fewer buyers, which could reduce or stagnate future increases in property values. Some may think that this could lower the price of houses in Montreal. Mr. Sarrazin’s opinion differs since the average prices of properties in Montreal have not witnessed a loss in value in the past decades. Indeed, Mahsa Mirzaie, adds that it would be unlikely unless we find exorbitant rates at 5-6% as those before the year 2000.
What would be your advice for today’s buyers?
Historically speaking, real estate remains a good investment in the long term considering that properties increase in value over time.
However, many are wondering whether it is better to acquire a property right now or to wait, given the situation. From an investment point of view, it would be wiser not to wait to purchase a property given that the prices of properties have always seen an increase, strong or weak.
That being said, a mortgage broker understands that each individual’s situation varies. The financial stability of the buyer is a key element, hence the importance of a mortgage broker assessing one’s financial situation. This analysis can then provide an overall picture of the individual’s income, borrowing capacity and repayment capacity.
Once the financial analysis is done, it is also important to target the objective of the purchase, as the strategy to adopt will be different. For example, is the purchase for a primary residence? There will then be no tax impact on the sale unlike a purchase of a rental property, in this case, the strategy of cash damming will be interesting.
Since it can take a long time to acquire the desired property, it is recommended to do a pre-approval with guaranteed rates with the longest period possible. This then ensures no fluctuation of the rate for a fixed period.
Depending on the objectives of your real estate purchase, there are multiple strategies and can be complex, hence the importance of getting in touch with a mortgage broker who will advise you and guide you towards the right direction.
This article was written in partnership with Mahsa Mirzaie, mortgage development manager at National Bank.
- Mahsa Mirzaie, BNC
- mahsa.mirzaie@bnc.ca
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5 tips for the sale of your property - Key informations
The sale of a condo, house or plex is an important step for anyone and requires preparation. Indeed, a property must be well prepared for sale in order to arouse any interest: the first impression counts. After all, buying a property often goes through a lightning bolt or falling in love with different characteristics of the latter.
With the arrival of Valentine’s Day and the current real estate bustle, our team got together and spoke with the Metro Journal to establish 6 practical tips essential to seduce potential buyers. These tips have the specific purpose of achieving the desired effect, namely the sale of the property. To discover these 6 tips, consult the Petit Guide de Séduction immobilière.
In order to further entice potential buyers when visiting your property, we have established 5 additional tips. Here is their overview:
Practical tips for the sale of your property
1. Clean up the property
Cleanliness is an important determinant in the success of selling your property. A clean property is more attractive. Every room should be carefully cleaned. You have to be sure to empty the garbage cans, clean the floors, make the beds and dust the furniture. Closets are not to be neglected either, as potential buyers could be curious and open them during visits.
In a property, the kitchen and bathroom are rooms where extra attention should be paid. These pieces are naturally more ‘combed’ because of their utilitarian character and must then be immaculately clean.
2. Depersonalize spaces
To seduce a buyer is also to make sure that he/she can imagine living in said property. Depersonalization is essential and refers to removing elements that may harm the sense of belonging of the potential buyer. For example, remove family photos or travel souvenir frames from walls. Your clothes or shoes should not be lying around the property either. It is then important to create a neutral environment where the buyer will be comfortable and ‘feel at home’.
3. Focus on home staging
Home staging is a method to improve the ergonomics and aesthetics of a room. This technique includes moving furniture, adding decorative elements to the room or rearranging the entire space to make it more welcoming. Your real estate broker has the knowledge in this area and can help you to carry out an efficient and attractive home staging for the buyer. Don’t hesitate to ask your real estate broker for advice!
4. Offer a haven of serenity
The seduction of a buyer also depends on the calm he can experience during his/her visit. Make sure the windows are properly closed, the radio is turned off and your neighbors are not undergoing major renovations. A calm environment inspires trust and is then much more seller for a buyer.
5. Have your pets looked after
Pets are very cute, but they can sometimes create unfortunate situations. For example, during visits, a potential buyer may be uncomfortable with the presence of an animal or even allergic. Whenever possible, keep your pet with a loved one or bring it with you during visits to avoid unpleasant situations.
With these 5 handy tips for selling your property, the seduction of your buyers is almost guaranteed. It is now the turn of the expertise of your real estate broker to ensure his/her love at first sight!
Our team has established 5 practical tips to seduce potential buyers during the sale of his property: do the big cleaning, depersonalize the spaces, bet on elements of home staging, provide a tranquil environment and if you have pets, if possible, have them kept. For tips inspired by Valentine’s Day, we invite you to read our article published in the Metro Journal!
Contact one of our real estate brokers to assist you in the sale of your property
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