Monthly Archives: October 2009

Mortgage Payments: What Can You Afford?

By Evan Sage

The first rule of affordability is that on a monthly basis you should not pay more than 32% of your gross household income on housing costs or P.I.T.H. (principal and interest, taxes, and heating expenses). These costs will also contain half of your monthly condominium fees (if applicable) and the entirety of any applicable leasehold tenure. Lenders will add up and determine the percentage of income your home will cost you, and form a ratio called GDS ratio (or Gross Debt Service ratio).

The second rule of affordability factors in how much your entire monthly debt takes up in your income. This is called your TDS or Total Debt Service ratio, and includes everything from credit payments to car loans and housing costs. This ratio should not take up more than 40% of your monthly income.

These ratios will let any lender know how much you can afford. Your lifestyle and home can be more affordable through keeping your debt ratios below the maximums listed above.

Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog.  Evan’s web site is located at www.evansage.com.

Toronto Neighbourhoods: Grange Park

We find ourselves in the wonderful Toronto neighbourhood, Grange Park. Grange Park is a mixed but predominantly residential neighbourhood.

Grange Park is bounded on the west by Spadina, on the north by College Street, on the east by University Avenue and on the south by Queen Street.

It is within the “Kensington – Chinatown” official City of Toronto district; its name is derived from the Grange Park public park. You can find commercial businesses of Chinatown extended within Grange Park.

Many buildings in Grange Park have been converted to commercial use, this included art galleries within the vicinity of the Art Gallery of Ontario, restaurants and offices.

You will find many homes rented out to students of the Ontario College of Art & Design, located on McCaul Street, and the University of Toronto, located to the north.

In the western section of Grange Park, the businesses of Chinatown extend east from Spadina along Dundas to nearly Beverly, while the streets remain residential.

The homes on the east side of McCaul Street were demolished and the Village by the Grange residential and commercial complex was built. It was built in 1980, and was a rare example in Toronto of a low rise apartment complex; there are mixed commercial uses being built after several decades of high rise apartment building construction in the downtown core.

There is a commercial enclave that has developed around Baldwin Avenue, between Beverley and McCaul Street. It has been named “Baldwin Village”; it is a converted residences housing, restaurants, art stores and curios.

The residences of the north side of Dundas Street have all been converted into art galleries.

There are several landmarks in the Grange Park; this includes the Art Gallery of Ontario, Ontario College of Art & Design, The Grange, and Village by the Grange.

The Art Gallery of Ontario holds a collection of more than 68,000 works, spanning from the 1st century to the present day.

The Grange is a historic Georgian manor; today we see it as part of the Art Gallery of Ontario. It was built in 1817, making it the 12th oldest surviving building in the city.

Grange Park is great neighbourhood in Toronto, and it holds some of the greatest art galleries in Ontario. Anyone living in this neighbourhood should be proud to be surrounded by such history.

Jumping Jack Frost – A Winter Tune-up Treatise

By Carson Dunlop & Associates

One of the great joys of living in Canada is the change of seasons. Autumn’s colors and crispness will soon be making way for winter’s exciting first snowfall. Of course, one of the great burdens of living in Canada is the extreme conditions we ask ourselves and our houses to live through.

That burden can be lighter for both you and your house with regular maintenance. As good cooking and great paint jobs can attest, success lies in the prep work. Now is the time to get moving to ready your house for a cold winter and a wet spring. Here are our suggestions for a simple pre-winter tune-up.

Tools You May Need:

  • Ladder
  • Paintbrush
  • Shovel
  • Vacuum
  • Telephone
  • Sharpened eyeball

Outside

The brunt of the weather abuse is borne by the roof and the exterior skin of the house.
Get a ladder, a pair of binoculars, or a trusted roofer, and check the roof. If you have a sloped roof, look for shingles that are cracked, curled, loose, damaged, or missing. Repair where needed. Pay attention to the junctions between the roof and chimneys, pipes, and walls, for example – the metal flashings often need re-securing or re-caulking. If you have a flat roof, clean off leaves and branches, and cut back overhanging tree limbs. On the roof membrane, look for bulges, worn spots, or split seams. Flashings are important here also.

While you are up there, you should have a look at the chimney, if there is one. Brick chimneys may have missing mortar or loose bricks, and should have a screen to keep animals out. Metal chimneys should be free from rust.

Eavestroughs and Downspouts

While at roof level, be sure to clean and re-secure the eavestroughs. We cannot overstate the importance of having free flowing and leak free gutters and downspouts on the overall health of the house, especially the basement. If your eavestroughs can’t control the rain or melting snow, the ground will get soaked. Soaked ground means much higher risk of a leaky basement. Keep your basement in mind while you are dangling from the edge of the roof!

Follow the downspouts to ground level to double check where they dump the water. Above ground spouts should be well connected at the elbow, and discharge at least six feet away from the nearest wall, or at a point where run-off will be carried away from the house. For any house older than about 40 years, downspouts draining below ground should be considered for disconnecting from the below grade pipe system, and extending to drain above ground. This is an easy and surprisingly effective basement leakage cure in many older houses.

Grading

Speaking of the basement again, take a tour around the house to check how the ground directs traffic. Any and all surfaces next to the walls should be sloped to shed water away. Bad grading is another common and preventable cause of basement leakage. This is exponentially more important on warm winter days – melting snow runs quickly across the surface of still frozen ground. If the grading is bad, it will flow right to the house, and possibly right into the basement. Now is the time to grab the shovel and re-slope the grass, or call a paving contractor or handy person to correct a negatively sloping driveway or walkway.

Windows

During the exterior walkabout, check the windows and doors for any wood in need of paint, and any joints that need re-caulking. Check also the caulking at pipes, vents, and other wall penetrations.

Inside

Inside the house, we are going to need heat. Lots of it.

Furnace

The most important pre-winter activity can be done by anybody no matter what their skill level, for usually low cost, in about 2 minutes: pick-up the phone, and schedule a heating system maintenance call. Even a new unit needs this check. The technician will clean the burners and fan, lubricate the moving parts, change the filter and check the operation of the important safety mechanisms. If the service is to be done later in the heating season, you can start on the right foot by replacing or cleaning the furnace air filter. If you have a humidifier you should clean it out as well.

Once we have heat, let’s do what we can to keep it in the house.

Weather Stripping

If you live in a new house, odds are good your windows and doors are well sealed. Old windows and doors, and even some newer ones, may need sealing to keep heat in and cold out. One approach would be to replace them. Luckily, great improvements can be made with simple weather stripping kits available at any hardware store. Due to the tremendous variation in shapes and sizes, we could write a novel about how to do this, but all you really need to do is to find the pre-packaged material that has a picture of your window or door, or something close to it, and follow the instructions.

Final Notes

The previous suggestions are the most important winter tune-up steps. Other good ideas include cleaning the heating grates, especially on the big cold air returns, cleaning and lubricating exhaust fans, and cleaning out the dryer vent and cover. If you have electric baseboard heaters, vacuum the dust off the interior fins, and make sure drapes and curtains are several inches above their hot surfaces.

Carson & Dunlop Associates is a consulting engineering firm which has been devoted exclusively to building inspections since 1978.  Their website is located www.carsondunlop.com and they can be reached at (416) 964-9415.

Toronto Neighbourhoods: Harbourfront

By Linda Sully

Located on the northern shore of Lake Ontario is the neighbourhood Harbourfront.

Harbourfront extends west from Yonge Street to Bathurst Street along Queen’s Quay.harbourfront

Toronto’s harbour has been used since the founding of Toronto for shipping and industrial purposes. The Town of York was founded to the west of Don River, along the waterfront; when the town was founded, the water’s edge was approximately where we know as “Front Street”.

The area along the waterfront is composed of mixed uses. The federal government lands to the south of Queen’s Quay, which includes a community centre, a Toronto fire department, various boating uses and the Harbourfront Centre.

To the north of Queen’s Qauy you will find all of the industrial lands along the street have been replaced with high rise condominium towers.

To the east, you will find federal government lands; the waterfront is mixed with industrial uses, a hotel, ferry docks, boating uses, a sugar factory and vacant lands.

You will find Toronto Island ferry terminals in Harbourfront; it provides transportation services to the Islands from the foot of Bay Street.

As I mentioned before, Harbourfront Centre is located to the south of Queen’s Quay. Harbourfront Centre houses galleries and performance spaces; it is located at the foot of lower Simcoe Street. All of the studios began in 1974 and still operate today; they provide new craft artists with subsidized work spaces at the beginning of their career.

Harbourfront hosts many arts and cultural events throughout the summer. Some events include craft and artisan fairs, theatre and dance performances and musical concerts.

Some of the most notable events are available free in the form of a series of concerts stages at Harbourfront’s outdoor concert state every weekend through the summer.

You might be wondering what is there to do during the winter; well to answer that, there is a free open air ice rink.

You can have a enjoyable night with your family and friends by taking in the fresh air and enjoying some wholesome fun of the great pastime of skating.

Many people criticize Toronto as not having a dynamic and beautiful waterfront park. This is definitely not the case; Harbourfront has a network of parks, open spaces and trails that allow residents and visitors to access. A few examples are HTO Park, the Martin Goodman Trail and the Waterfront WaveDecks.

Harbourfront is truly one of Canada’s historic neighbourhoods, while integrating the new age.

Linda Sully is a Broker with Royal LePage Johnston & Daniel Division.  Linda is a regular contributor to the Muddy York Real Estate Blog. Linda’s website is located at www.lindasully.com.

Toronto Home Buyer: Mortgage Basics

By Evan Sage

Mortgage Financing – Why is Now a Good Time?
The early bird catches the worm, and prime real estate at a better price! Starting early to secure a mortgage is an essential part of the buying process. Pre-approval puts you ahead of the game when the bargaining begins, and also puts in place any financial boundaries you may have to assist in the search.

Mortgage Financing – Is it Affordable?
Your down payment plus the amount of your mortgage is the total cost you can afford. Simple as that.

Mortgage Financing – Know Your Own Credit Report
Looking over a detailed report of your credit history is something all lenders will ask your permission to do. Information obtained from this credit report greatly determines whether or not money is lent to the borrower. Not only does this report outline any bankruptcies, judgments, loans, balances,  types of accounts, existing credit card limits, and timeliness of payments, but is also identifies any embellishment or falsification indicated on mortgage applications. To protect yourself against any misrepresentation that could occur from incorrect information being reported you would be well advised to obtain a copy of your report to look over prior to applying for any mortgage prequalification. As credit reports are not infallible you have the right to question any mistakes and try to correct them before it has a detrimental effect on the outcome of your mortgage application.

Mortgage Financing – Obtaining Your Credit History Report
Trans Union of Canada and Equifax, both of which will supply you with copy of your own report at no cost, are the two main credit bureaus in Canada.
To obtain your report from Trans Union of Canada
Download the application form from their website at TUC.ca and return completed form by fax (905-527-0401) or mail. The consumer relations department can be reached at 1-800-663-9980.
To obtain your report from Equifax
To receive a faxed application form telephone Equifax at 1-800-465-7166. Once the completed application has been returned to them by fax or mail Equifax will mail you your report within five days.

Mortgage Financing – Calculating A Budget
In addition to the range available for approval, as specified by your mortgage broker or bank, establishing the total amount you wish to spend is also very important. Knowing and feeling comfortable about the financial position you are getting into is necessary as a mortgage is a commitment that will likely last for many years. Determining your comfort threshold will help you evaluate a monthly mortgage payment that is reasonable to you, as the maximum for which you qualify may be too high.

Calculating A Budget – Total Down Payment
Establishing the total you have available to invest is your first step in calculating how much you have for your total down payment. Be sure to also add the estimated amount of equity you have gained if you already own another property as this also counts towards your total available savings for a down payment.

Calculating A Budget – Closing Cost Estimation
Make sure to set aside part of your available funds for costs associated with closing the sale. Costs are outlined in the closing costs workbook section to assist you in creating an estimate. Although you will not be able to gauge the precise total needed, you will be able to arrive at a very close figure bringing you that much closer to staying within budget.

Calculating A Budget – Net Down Payment
Total Down Payment – Closing Cost Estimation = Net Down Payment
Subtracting your closing cost estimation from your total down payment reveals your net down payment.

Calculating A Budget – How Much Can You Comfortably Carry?
Ascertain the ongoing monthly mortgage payment you are comfortable paying with the “Mortgage Affordability Workbook” found at the end of this section. By using the simple step-by-step calculations you will be able to determine the amount of principal mortgage you can expect to be approved for, and feel comfortable with. From there it is just a hop skip and a jump away from establishing your price range.

Calculating A Budget – Determining Your Price Range?
Net Down Payment + Principal Amount of Mortgage = Budgeted Purchase Price
Your net down payment added to your principal amount of mortgage is what your budgeted purchase price will be. Once you have determined this it is time to confirm your budget through pre-qualification.

Mortgage Financing – Pre-Qualification
To obtain a mortgage you must first obtain pre-qualification. Pre-qualification is an approximation of your borrowing power as determined by the lender. As your capacity to borrow determines your ability to buy, it is important to know exactly how this works. In addition to reviewing your mortgage application the lender will likely also request a credit report to examine your income, credit history, and any debts. Thereafter the maximum loan amount for which you could qualify will be set.
To apply there is a generic application form for you to complete, as well as a list of questions you can ask your mortgage broker or lender(s). There is not usually a fee charged for pre-qualification as it is an opportunity for the lender to market their services to you. To best match your individual needs it is wise to shop around so you can choose the most suitable mortgage option available to you.
Mortgage Broker vs. Bank – Who to See When You Need a Mortgage
Both. See what options your bank makes available to you and also see a Mortgage Broker. Mortgage Brokers have connections to various lenders and can help you to obtain a quote from the best positioned to meet your needs. They understand what lenders are looking for and thus can tailor your application to put you in a better bargaining position. Working directly with the lenders, the broker also knows where to find the best bargains.
To further assist you with your hunt for the perfect mortgage look over the following information provided at the end of this section:
•    A list of recommended mortgage brokers
•    A list of websites for various lenders
•    Questions to ask your mortgage broker
•    A checklist of documents your mortgage broker will need
•    A pre-qualification mortgage application

Mortgage Financing – Pre-Approval
Pre-qualification and pre-approval are often mistaken for one another. As the next step after pre-qualification, pre-approval formalizes the estimation of the buyer’s financial position. Pre-approval is the provision of offer from the lender or mortgage broker of the mortgage. Together with the credit application and verification your financial situation is carefully examined by the lender using established principles of underwriting. A checklist of documents likely needed by your Mortgage Broker is included at the end of this article.

Mortgage Financing – How Much Should I Apply for Pre-Approval?
As much as you can. Try to get pre-approval for the highest amount possible. It is important to only spend within your comfort zone but it is important to secure the maximum approval parameters to leave room for flexibility.

Mortgage Financing – Loan Commitment and Final Loan Approval
Acquiring a certificate or letter of commitment from the lender is the final step in the pre-approval process. This is their agreement to place a mortgage with you and their final approval of that loan, confirming your approval as a borrower by the lender according to pre-defined terms under the agreement. It is important to thoroughly examine this document however as caveats on final loan approval can often be found in the fine print. Things to be aware of include lenders wanting to ensure that the home is in accordance with their underwriting standards, lenders reserving the right to have their own appraisers verify the market value of your house, re-check your credit, and/or verify information prior to granting final loan approval. Be sure to carefully read over all approval documentation with your mortgage broker or lender and discuss any implications of purchasing a home without a financing condition. Once this has been completed you will then be in a position to seriously begin your search for a home in confidence.

Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog.  Evan’s web site is located at www.evansage.com.

Waterfront Toronto Wins Two Toronto Urban Design Awards

toronto-waterfrontWaterfront Toronto’s Spadina WaveDeck and Master Plan for Lake Ontario Park received 2009 Toronto Urban Design Awards. Spadina WaveDeck earned an Award of Excellence in the Small Open Space category and the Master Plan for Lake Ontario Park earned an Honourable Mention in the Vision and Masterplan category.

The City of Toronto’s Urban Design Awards recognize and acknowledge the significant contribution that architects, landscape architects, urban designers, artists, design students, and city builders make to the look and livability of Toronto.

Designed by West 8 and duToit Allsopp Hillier, the Spadina WaveDeck opened in September 2008 and was the first wavedeck opened along Toronto’s waterfront. The jury praised the wavedeck calling it “exciting and beautifully executed” and said it extends the “public’s imagination of what Toronto’s waterfront can become in the future.”

The Master Plan for Lake Ontario Park, designed by Field Operations, presents a bold vision for transforming 375 hectares of Toronto’s waterfront into an urban wilderness and recreational park.

Spadina WaveDeck and the Lake Ontario Park Master Plan are the recipients of several other prestigious design awards.

A Common Renovation Mistake: Going Over the Budget

By Sue Toyne

When you decide to renovate your home, you will generally sit down and create a plan. In this plan you will have what you want to renovate, whether it is the kitchen countertop, adding a bathroom or adding a whole room altogether.

No matter what the renovation is, there is always one similarity, which is creating a budget.home reno mess

Your budget will be how you structure your entire renovating project. By this I mean, you will be picking material, tools, etc through the budget you have determined, if you find yourself reaching the breaking point, then you will reconsider.

That would be the ideal situation, however what tends to happen is that people will budget themselves for the renovation, however they do not keep a proper record of their spending until the project is near completion, making it too late.

When you create a budget, it can only serve its purpose if you are able to follow through with it.

If your budget is set at $5,000 for the entire kitchen renovation you have in mind, it is not feasible to spend $4,000 on a new granite countertop, when you still have to buy kitchen cabinets, not to mention the labour costs if you are not doing the work yourself.

You might be thinking that unexpected costs occur, and it cannot be helped if you go over budget. Now look at it from this perspective, why bother spending the time and energy creating a budget if you will not put it into effect.

A budget is designed so that you can ultimately save on how much you are spending; therefore it is common to add in “unexpected” costs into it at the beginning.

There really is no excuse for going over your budget, unless you decide to change the renovation altogether. In that case you should be revising the budget altogether.

When you set a budget, and want to stick with it, you simply need to record every purchase. At the end of each day, take the bills you have for anything related to the renovation and tally it. Place the bills in a folder along with your total amount spent and you can determine on a daily basis how much of your budget you have left.

You should be placing allocations for what to buy in your budget. By this I mean, have how much you will be spending on materials listed, and what you need for labours costs outlined. This way you should have thought of everything you will need for the renovation and will be able to stick to the budget.

Sue Toyne is a Sales Representative with Royal LePage/Johnston & Daniel Division.  Sue’s website is located at www.susantoyne.com.  Sue is regular contributor to the Muddy York Real Estate Blog.

Cabbagetown: A Neighbourhood with History and Charm

By James Metcalfe

Located on the east side of downtown Toronto is the neighbourhood Cabbagetown. Cabbagetown comprises the largest continuous area of preserved Victorian Housing in North America – according to the Cabbagetown Preservation Association.cabbagetown3

The name Cabbagetown comes from the Irish immigrants who have moved into the neighbourhood at the beginning in the late 1840s; it was said that the first Cabbagetown residents were very poor, and in order to put food on the table they grew cabbage in their front yards.

Cabbagetown was revitalized in the 1970s and 1980s by new home buyers, where much of the neighbourhood’s collection of Victorian homes was restored.

Cabbagetown’s current boundaries can be broadly defined as Gerrard Street to the south; Shuter Street to the south; St. James Cemetary to the north; Wellesley Street East to the north; Sherbourne Street to the west; and the Don River to the east.

Cabbagetown is considered to be one of Toronto’s most gentrified neighbourhoods.

In Cabbagetown today you can find many wrought iron fences, stone walkways and beautifully kept gardens throughout. There are traces of a 1960s counter-culture feeling evident in vintage clothing stores, gestalt clinic therapy and an adventure travel agency.

Despite gentrification, Cabbagetown is still home to some of the poorest in Toronto.

During the second week-end in September you can find the annual Cabbagetown Festival, a two day event with arts and crafts fairs in Riverdale Park West. Vendors come from far to this event.

The highlight of the Cabbagetown Festival is the parade on Saturday morning, which generally starts at 10:00 a.m. at Riverdale Park West. The route may vary from year-to-year.Cabbagetown1

The Cabbagetown Festival also includes a “Tour of Homes” where several local homes are opened to a paying public.

In 2004, part of Cabbagetown became a Heritage Conservation District, protected by municipal bylaw. This district was established in two stages; the first is an area centred on Metcalfe, and the later areas to the north and east of the initial area.

The boundaries of the combined district are currently, St. James Cemetery to the north; just east of Parliament Street to the west; Carlton Street to the south; and Wellesley Park, the Necropolis and Riverdale Park to the east.

The residents of Cabbagetown are predominately liberal and it home to many artists, musicians, journalist and writers. Other residents include professors, doctors and social workers, many of which are affiliated with the University of Toronto.

Needless to say, Cabbagetown has had its ups and downs from the beginning however it has settled to a wonderful Toronto neighbourhood that anyone should be proud to live in.

James Metcalfe is a Sales Representative with Royal LePage R.E.S/ Johnston & Daniel Division.  James is a regular contributor to the Muddy York Toronto Real Estate Blog.  Jame’s website is located at www.ourhometoronto.com.