New Qualification Rules for Mortgages

We met with mobile mortgage specialists from RBC this week to discuss how the recentconventional-versus-high-ratio-mortgage rule changes are affecting home buyers. Its not overly complex but the changes do have a significant impact on both buyers and the potentially the real estate market.

Lets run through a possible purchase scenario 

  • Buyer Client is a first time home buyer
  • They saved 5% for the down payment
  • $100,000 combined income
  • $800 a month for Loans, Car Payment, VISA Balance etc.

Subject Property they would like to purchase

  • Purchase Price $475,000
  • Property Taxes $5,000 / year
  • Heating and or other Expenses $1,200


2017 Qualification Rates for a 5 year fixed term – 3.19% 

  • Purchase Price $475,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,221

** Total Debt Service Ratio =42%  equals mortgage APPROVAL  ** 

2018 Qualification Rates for a 5 year fixed term – 5.14% 

  • Purchase Price $475,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,712

** Total Debt Service Ratio =48%  equals mortgage DECLINED  ** 

ADJUSTED QUALIFICATION *** 2018 Qualification Rates for a 5 year fixed term – 5.14% 

  • Purchase Price $400,000
  • Purchase 5% Down Payment
  • 25 Year Amortization
  • Estimated Monthly Payment $2,299

** Total Debt Service Ratio =43%  equals mortgage APPROVAL  **

Now more than ever it is so important to align yourself with and partner with industry professionals to help navigate you through all of your real estate options and the process of searching for and purchasing your new home. You may qualify for more than you think., You may have to adjust your search criteria, either way knowledge is truly a power full tool and a tremendous advantage in this current market place

Would like to thank Marlene Jobb, Ethan Jobb & Alexandra Jobb for presenting and  assembling the above numbers and scenarios. 

  • Marlene Jobb @ (905) 432-4310
  • Ethan Jobb @ (289) 927-3720
  • Alexandra Jobb @ (905) 995-2126

Thank you


SCOTT ROY, Sales Representative

RE/MAX JAZZ Inc. Brokerage, 21 Drew Street, Oshawa ON

(905) 728-1600 Office or (905) 435-7355 Direct –


Why Ask for 2 Deposits on a Home Purchase

Although the headline may indicate the following article would favour sellers, there is also some good information that buyers should be aware of as well. This following article was taken from Mark Weisleder’s column in the Toronto Star dated Friday November 8th 2013:

In general, the courts have indicated that buyers must act honestly, reasonably and in good faith. Unfortunately this will have to be proven in court, which means lawyers, legal fees and the potential for the deposit to be withheld for up to two years.

Sellers are not entitled to a copy of the inspection report unless the parties agreed to it. In my opinion, sellers should always include a contract clause that says if the buyer wants to negotiate a reduction, or cancel the deal because of problems in the inspection report, then the buyer must give the seller a copy of the report. This will give the seller the opportunity to check the problems for themselves and be able to explain it to any future buyer.

If the buyer does not conduct the home inspection at all, or perhaps brings in an unqualified person to conduct the inspection, then I believe that these might be examples of not acting reasonably and in good faith. It would then be difficult for a buyer to try and cancel the agreement and argue that they acted in good faith. That’s why it is so important that buyers always use qualified home inspectors.

In a seller’s market, many buyers decide not to include a home inspection condition so they can provide a “clean offer” to the seller. This usually happens when there is a bidding war.

But there are other ways to protect buyers in these circumstances. For example, you can arrange for a home inspection before you bring your offer. Most sellers will be agreeable to this. You are only asking for trouble if you don’t conduct a home inspection before you decide to buy.

In addition, if a buyer is not in a bidding war, consider two deposits, a small one when the deal is accepted, and a larger once you are satisfied with all of your conditions. That way, if you are not satisfied, there is not much of a deposit that will be worth fighting over.

It is very important for buyers to understand all your legal rights and obligations relating to conditions before you bring any offer to buy a home.

Mark Weisleder is a lawyer, author and speaker to the real estate industry – More real estate stories by Mark Weisleder

The general real estate market is slightly different in Durham Region however with many people from Toronto moving to the  smaller suburban cities such as Ajax, Whitby, Oshawa & Bowmanville, buyers and eventually sellers will be having the same or similar expectations when purchasing a home or listing their homes for sale.

For all of your real estate needs in Durham Region please feel free to contact me directly 

21 Drew St. Oshawa, ON 
(905) 728-1600 Office 
(905) 435-7355 direct 

Great Tips that will Help You Win in Real Estate Bidding Situations

March 3rd 093

Occasionally within certain markets you will uncover a hot property, A niche neighbourhood or homes that are simply in demand and subsequently a competitive situation is upon you – Competitive bids are becoming more of a normal occurrence as opposed to the Exception – and the weakest bids won’t survive!



Here are Some Good Tips and Points to Keep in Mind if you Find Yourself in a Competitive Situation: 

Don’t wait for An Open House. It’s always a good idea to see as many houses as possible on weekends––whether or not they’re invited. “With the Internet, information moves so quickly. Sellers could do a private showing Wednesday which is days before a scheduled open house. If you Like the Home and it has been presented well and looks good online, go see it. Employ the services of a good realtor who will make appointments and see as many houses possible with you.

Pick an Agent and Brokerage who’s local and well-known. That’s because 80 percent of business is done by just 20 percent of brokers. The more respected they are within the community, the better shot they have at wooing listing agents. Quite often a client will win because the listing agent knows your realtor. In a competitive situation, working with a known brokerage and with a well known agent, will make the listing agent feel better about your offer and boost your chances, especially if there are two offers and they are very close.

Get in the Listing Agent’s good Graces. Why? Because the listing agent is the only person who meets all the parties involved in a sale. The seller ultimately decides and signs a contract, the listing agent has a giant say in who gets the property in a competitive situation. If your agent can establish good rapport and make a good impression with the listing agent, your offer is in much better shape. Acting like a jerk ,or being overly aggressive to the agent tells the sellers to work with another offer. If the Listing Agent feels your agent is working hard to secure the transaction for both parties then the decision is much easier for the seller.

Know your neighbors – and what their homes are worth. Getting to know the neighborhood you’re hoping to call home one day goes far beyond scoping out local schools and seeing who prowls the streets at night. When you are ready to present or draw up on offer , you should know what is going on within the local neighborhood market. Do your research in advance – Know what has recently sold, what was in a competitive situation and what was not. Research and Knowledge are very powerful in these situations and your agent should be giving / providing you that information so you can make a well informed decision. Doing research after you move in can be a very expensive endeavour.

Hire an inspector within two days of submitting your offer. “Having a good home inspector on your side is very valuable. Don’t choose one that likes to scare everyone. Select the one that will provide you with valuable information and can guide you through the process and help you be more aware of  such how does this operate! Order the inspection before you write the offer. It doesn’t necessarily have to be two days but your offer should show the seller that you are prepared to move quickly.  Most sellers want to know what to address, what is happening and when they can start to move forward. Despite how this sounds information on both sides will help the process move forward quickly.

Sweeten your bid. More often than not, most home buyers simply can’t afford to drop $180,000 in cash on a new home. But when it comes to sweetening your bid, increasing your initial deposit or even be flexible on closing dates if you can. Sometimes even a a week two can help save the seller a great deal of aggravation when they move. One of the more obvious signs to a seller that you are serious is the initial deposit. Increase your initial deposit to show just how serious you are. If you only offer $1,000 you won’t be taken as seriously. Offer up to 3% if you can.

If you are looking for an Realtor that will provide you research knowledge and information about current real estate markets with durham Region please feel free to give me a call. I would be happy to sit down with you and get a better understanding of what you are looking for and what you would like to do. Then I can provide the appropriate research and information that will enable you to make a well informed decision.remaxnumber1



(905) 728-1600 Office 

(905) 435-7355 Direct  

Future Growth for Port Perry

Scugog Preparing for Port Perry’s Growth!

Old Mill Pot Perry

The Port Perry Star has reported that according to the Mayor, Chuck Mercier, the Scugog area, including the Historic town of Port Perry is set to grow by about

6,000 residents. Which means roughly 1,500 single family residents if you use the formula of an average of 4 people per home. The article also mentions that the growth may not be focused entirely on single family residential as a NEW Hotel and NEW condo development is proposed to be constructed on Scugog Island. There is also a state of the art Bio Gas Plant that is to be added in the town of Blackstock (which is just east of Port Perry).

The article has quoted the mayor who states “We need growth, we need a balance and it’s well underway.

This means there will be more of a tax base in the area and that will ultimately lead to the TAX burden being lifted from the current pool of tax payers in the area. Many residents have been asking for years for expansion to alleviate the ever increasing property taxes.

The article also stated that the by the end of 2013 Scugog Township should be close to being debt free!!

Port Perry and area remain a tourist destination and a very desirable place to live and raise a family.  Over the years there has been a large transformation of the 273demographics with more younger families moving o the area and seniors wanting to stay. The local Port Perry Hospital provides a sense of security for residents knowing there is adequate medical care close by and with Lakeridge health network available in Oshawa Whitby and Bowmanville quality healthcare is close by. Other great draws and and fantastic amenities include:

  • Newly Revitalized Waterfront
  • Lakeside Walking Trails
  • New Public Library
  • New Walmart and other Shopping choices
  • Many New Restaurants

Port Perry and surrounding communities provide a great opportunity for families looking to make a move from some of the busier urban destinations around the GTA. The

Canterbury Commons

future appears to be prosperous and very optimistic when you include all of the growth in and around Port Perry and the soon to be completed 407 which bring portions of the GTA within 30 – 40 mins of Port Perry.

Couple of Nice Homes in Port Perry

My wife and made the choice several years ago to make Port Perry our home, we each spent 27 years livng in and working  in Downtown Toronto and now enjoy all that Port Perry, the area and Region have to offer . We are both self employed and have enjoyed our involvement with our community, local business and our children’s school, something that we felt we were missing during our time in Toronto.

For additional real estate Information please contact:


 RE/MAX Jazz

(905) 728-1600 Office 

(905) 435-7355 direct