Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

- Securing a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.

- Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate. - Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.

- Switching from an adjustable-rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.

- Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan, or helps you build equity more quickly. When used carefully, it can also be a valuable tool for bringing debt under control. Before you refinance, take a careful look at your financial situation and ask yourself: How long do I plan to continue living in the house? How much money will I save by refinancing?

Keep in mind that refinancing will come with a cost, ensure you are fully aware of the amount of those fees. It takes years to recoup that cost with the savings generated by a lower interest rate or a shorter term. So, if you are not planning to stay in the home for more than a few years, the cost of refinancing may negate any of the potential savings.

It also pays to remember that a savvy homeowner is always looking for ways to reduce debt, build equity, save money, and eliminate their mortgage payment. Taking cash out of your equity when you refinance does not help to achieve any of those goals.

The Viani Real Estate Group is excited to announce that for 2020 our group has been recognized as the 5th top producing team at RE/MAX Real Estate (Central), the largest and #1 RE/MAX office in the world.

Formed in June 2020, in just six months our group has been recognized among some of the highest producing REALTORS® and teams in the city of Calgary and surrounding areas, we are pleased to say that the majority of our clients are repeat and referral.

We want to thank our families and friends for your continued support along with all of our current and past clients for putting the trust in us to handle what is likely one of your largest financial transactions, we appreciate each and every one of you.

“The highest compliment we can receive is the referral of your friends and family”

We have found great success in coming together as a group and are able to assist you in a wide variety of real estate areas, residential, commercial, investment and business brokerage.

We look forward to helping you or your referrals, we work full time as REALTORS® and truly enjoy what we do.

THANK YOU!

Viani Real Estate Group

|        Joe Viani        |       Stan Kushner        |        Alison Lang        |        Rob Campbell        |

Making Your Offer

“We just took possession today and found a serious defect that the Sellers didn’t disclose. What can we do?” An unfortunate fact of life is sometimes we run into Sellers that feel they can hide defects before listing the property for sale. How they somehow feel the defects won’t eventually be discovered by the Buyers is beyond comprehension.

The best way to deal with existing and/or anticipated potential problems is during the drafting of the Purchase Contract.

First, ensure that you have a Buyer Brokerage Agreement signed by your REALTOR® and you. That Agreement makes the Buyer a “Client” of that REALTOR®. Along with that relationship are legal obligations placed upon the REALTOR® that are fiduciary in nature. What that means is your REALTOR® must act in your best interests and place your interests ahead of his/hers. That also makes your REALTOR® your consultant and more than just a salesperson in that a higher duty of care is placed upon your REALTOR® than there would be if you were simply a "customer".

Secondly, when drafting your Offer to Purchase, your REALTOR® will ensure there is a Property Inspection Condition inserted into the contract to protect you. A house inspection performed by a licensed, qualified and experienced property inspector can and does point out most issues relative to the mechanical, structural and services of the building. By “most issues” I mean there may be hidden defects such as inadequate insulation in the walls that can only be discovered if the drywall were removed. The inspector will also ensure appliances, electronic garage door openers, and so on are operating properly and will note any issues there as well.

Thirdly, the Seller is required by law to disclose any “Material Latent Defects” which are hidden defects that cannot be discovered by a typical inspection of the property. Material latent defects could be such things as large cracks in a foundation wall that leaks water into the home only during heavy rains. These may be covered by a finished wall and impossible to detect. Another could be that the sewer backs up every few years because of tree roots and so on. There is some disagreement among lawyers and among REALTORS® whether remediated grow ops are a material latent defect or not. Until the provincial and/or federal governments introduce legislation with minimum remediation standards, I strongly feel remediated grow ops are a material latent defect because of the potential dangers they impose. Conversely, if a defect can or should be found by a reasonable inspection of a property then these types of defects do not need to be disclosed by Sellers.

If the Seller deliberately withholds information with respect to material latent defects, the Buyers recourse would be the courts but be sure to set aside plenty of time and money for legal fees, meetings with your lawyer, discoveries and court appearances. 

Contact us today to ensure in your next purchase you are protected, new or resale there are provisions that essential to ensuring your next transaction is hassle-free.

Viani Real Estate Group

January sales were the highest they have been for the month since 2014, as housing market momentum from the end of 2020 carried over into the start of 2021.

Sales activity improved across all product types and across all price ranges.

“Discount lending rates are exceptionally low, which is likely attracting all types of buyers back into the market,” said CREB^® chief economist Ann-Marie Lurie.

“New listings in the market were also slightly higher than what was available over the past two months, which is providing more options to purchasers.”

January’s new listings were 2,246 relative to the 1,208 sales in the market, causing inventories to edge up over December levels. These types of movements are typical for January, but 2021 is starting the year with 4,035 units in inventory. This is far lower than the past six years.

Benchmark prices remained at levels relatively consistent with prices recorded at the end of 2020, but they reflect a year-over-year gain just below two per cent.

Average and median prices recorded higher year-over-year gains, likely due to larger gains in sales in the higher end of the market. Those segments do not have the same inventory constraints as  lower-priced product.

HOUSING MARKET FACTS

Detached

January sales activity improved across most prices ranges. However, limited inventories for homes priced below $500,000 ensured conditions in those segments remained firmly in sellers’ market territory. This likely prevented stronger sales improvements in this portion of the market.

However, with better supply options at the upper end of the market, sales activity improved.

The citywide months of supply was just over two months, a significant drop from last January where levels were nearly five months. The tighter conditions in this segment supported further gains in prices, which currently sit nearly three per cent above last year’s levels.

Year-over-year price gains range significantly throughout the districts of the city. The largest gains occurred in the North and South East districts. Prices remained relatively unchanged over the previous year in the City Centre and West districts

Semi-Detached

January sales activity rose over last year’s levels due to gains across most districts. The West end district continues to see slower activity than the previous year.

New listings improved from December levels. This is causing some monthly gains in inventories, but inventory remains well below levels seen last year and the months of supply remained below three months.

Price activity did vary depending on location. Year over year, prices remain over one per cent higher than last year’s levels thanks to strong gains in the North and South East districts. However, persistently high levels of inventory compared to sales contributed to the significant price decline occurring in the West district.

Row

Thanks to gains across nearly every district, sales activity improved compared to the previous year. Unlike the detached and semi-detached sectors, row new listings trended up relative to last month and levels recorded last year.

The rise did result in some monthly gains in inventory levels and caused the months of supply to rise to nearly five months. This is not entirely unusual activity for January. The months of supply remains well below last year’s levels at nearly seven months.

Citywide row pricing remained relatively stable compared to last year and last month. However, there was significant variation depending on location. Year-over-year price gains exceeded four per cent in the City Centre, West and East districts.  Meanwhile, prices eased by over three per cent in the North and South East districts.

Apartment Condominium

For the third month in a row, apartment condominium sales rose above levels recorded in the previous year. January levels are the best we have seen since 2014. While new listings have eased compared to last year, they recorded a significant jump over December levels, keeping inventories elevated relative to sales activity.

While prices remain well below previous highs, there were some districts that recorded year-over-year gains. The strongest gains occurred in the North East, East and South districts. However, prices continue to fall in the City Centre, West and South East districts.

REGIONAL MARKET FACTS

Airdrie

Sales activity stayed strong in January. With 103 sales, this was the best January since 2007. New listings improved compared to last month, resulting in some monthly gains in inventory levels. However, the months of supply has remained relatively tight

With conditions continuing to favour the seller, benchmark prices trended up relative to last month. At $349,100, benchmark prices are over five per cent higher than levels recorded last January. The strongest year-over-year price gains occurred in the detached and semi-detached sectors.

Cochrane

Cochrane sales improved from last January’s levels, but we also saw a notable rise in new listings. This caused the sales-to-new-listings ratio to ease to 63 per cent.

This is a significant improvement over last month, which saw sales levels exceed the level of new listings in the market. Overall, conditions remain relatively tight, with the months of supply staying below three months.

Benchmark prices recorded year-over-year gains across all property types. Overall, benchmark prices remained over four per cent higher than last January’s levels.

Okotoks

After several months of relatively weak new listings, January saw some pickup in new listings relative to the last quarter of 2020.

Sales remained relatively consistent with last year’s levels, causing the months of supply to trend up to three months. This is higher than the extremely tight levels seen at the end of 2020, but it is still significantly lower than the six-plus months recorded in January of last year.

Benchmark prices remained stable compared to last month, but they are over three per cent higher than last January. The gains were driven by the detached sector, as prices continue to ease in the semi-detached, row and apartment sectors.

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