Canadians Buying US Properties

Refinancing Options

Up and Coming Trends

Comparison of Resale Prices from July 2010 & July 2011

Exclusive Offer from Mortgage Intelligence

As a Mortgage Intelligence Mortgage Advisor I am proud to be able to offer to my clients the opportunity for Home and Auto Insurance. You may call or one will automatically be scheduled when you are approved for your mortgage through me. The quote is free and you are under no obligation.  

October Newsletter

Economic conditions will help Canada's real estate sector stay healthy: CMHC

Canada's national housing agency says it expects home sales and construction activity will cool but remain healthy in the second half of the year, due to favourable economic conditions that push up demand for homes.

Canada Mortgage and Housing Corp. said Monday that lower unemployment, a steady level of immigration, and low interest rates are working together to prop up Canada's real estate industry.

"I think the Canadian housing market is healthy at the moment despite the uncertainty we observed in the financial market," Mathieu Laberge, deputy Chief Economist at CMHC said in an interview.

He was referring to the stock market ups and downs earlier this month as investors worried about the European debt crisis and feared the U.S. could slip back into recession.

"Employment is expected to grow at a moderate pace in the next few years," he said.

"We expect interest rates to remain flat for the remainder of the year and increase in 2012, and new immigration is an addition to demand in the housing market."

Laberge said the CMHC predicts the market sales volumes will hold at a stable level next year.

Canada Mortgage and Housing Corp. said low unemployment, immigration and low interest rates led to fewer claims in the first half of the year under its mortgage insurance programs, which protect lenders from defaults by borrowers.

The agency said it expects fixed mortgage rates to stay relatively flat for most of the year, with the five-year posted rate at between 4.1 per cent and 5.6 per cent, then increase slightly in 2012.

CMHC said variable rate mortgages would remain near historically low levels, although some banks recently increased their variable rates to reflect the higher cost of raising money.

Prices of homes shown on the Multiple Listing Service are expected to grow only slightly going forward because the supply and demand for resale homes will likely stay in balanced territory, CMHC said.

A least one analyst agreed that the real estate market should stay fairly healthy for the rest of 2011, but said it's already cooling slowly and home prices may decline in the longer term.

"What you're probably looking at is a period where prices are relatively flat, maybe a little bit lower in the next few years," said Adrienne Warren, an economist at Scotiabank who specializes in the real estate industry.

"Affordability from a price perspective has deteriorated and that's going to have to, over time, come back to more normal levels but it doesn't imply that that has to happen quickly as a type of correction that occurs quickly."

She said interest rates are low and attractive right now and encourage first time home buyers to enter the market, which drives up prices. Once those rates begin to rise — likely in the second half of 2012 — the current price of homes will become unaffordable for many, putting downward pressure on future prices.

In its report Monday, CMHC said changes to mortgage rules introduced by the federal government earlier this year played a part in reducing mortgage interest payments and allowed Canadians to build equity in their homes faster.

Canadians are finding it easier to pay off their mortgages, with arrears levels improving and the volume of mortgage insurance claims lower than expected.

In March, the federal government put through new rules that reduced the maximum amortization period to 30 years and cut the maximum amount Canadians can borrow to 85 per cent of the home's value.

After the changes, refinancing activity fell by nearly 40 per cent, which means fewer Canadians took on more debt. Federal Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have repeatedly warned of the dangers of the ballooning debt level of Canadian consumers.

CMHC also reported its net income for the quarter was $383 million, up $61 million from $322 million in the same quarter last year. Revenues were down slightly at $3.3 billion, versus $3.4 billion.

The agency's predictions for the rest of the year echo a revised forecast by the Canadian Real Estate Association released earlier this month. CREA said it expected higher national home resales this year, reversing upward its previous forecast of a one per cent dip.

National average prices will be in the range of $347,700 to $374,300, growing to between $349,500 to $385,000 in 2012, CREA predicted.

CMHC said sales of existing homes should range between 429,500 and 480,000 units in 2011 and between 410,000 and 511,900 units in 2012.

Earlier this month, the CMHC said that national housing starts rose to 205,100 units on a seasonally adjusted basis in July, 11.6 per cent higher than the 188,900 reported in the same month last year and 4.3 per cent more than the 196,600 recorded in June.

Home building activity has been increasing through the first seven months of 2011, but starts are still down 4.6 per cent from a year ago.

Fixed, Variable, or Both?

Indeed, noted CIBC economist Benjamin Tal says: "We know the five-year (fixed) rate is attractive, but we also know that the prime rate is not rising any time soon.
In the end, most people’s fixed/variable decision boils down to how much they want to pay (or need to pay) a lender for borrowing cost certainty.
Variable rates are roughly prime - 0.70% and a good 4-year fixed (arguably the best fixed term at the moment) is 3.09%. At the outset, that variable rate would save you $37/month per $100,000 of mortgage.
Your financial breathing room will largely determine if this upfront savings is enough to gamble that rates stay low after 18 months or so. If you don’t want to bet all your chips you can always consider a hybrid (i.e., a mortgage split into fixed-rate and variable-rate portions).
Professor Moshe Milevsky, Canada’s best known mortgage researcher, recently told FP: "I still don't get why more Canadians don't split their mortgage."
Milevsky is a noted proponent of hybrid mortgages, for two reasons: 1) people have no clue where rates will go; and, 2) rate diversification offers the same benefits as investment diversification.
If you’re interested in a hybrid, the most competitive nationally-available hybrids in Canada are currently available through  Mortgage Intelligence.

September Newsletter

New Rate Sheet for August 24 2011

Average Resale Price for Local Markets for June 2010 & 2011

Smart Spending Strategies

Average Resale Price for Local Markets

New Rate Sheet for July 22 2011

New low 5 Year Fixed

Our best 5 year fixed is 3.64% but wait....we can do even better than that, but unfortunately those are unpublished specials that I can not advertise. So you must call to find out what they are.

Licensing of Home Inspectors

Licensing of Home Inspectors

Effective September 1, 2011 all Home Inspectors in Alberta will be required to have a license. CAHPI Alberta has been lobbying the Alberta Government for several years to implement regulations for Home Inspectors in Alberta and are pleased that it has become a reality. The current regulations have established a minimum level of education and experience. Registered Home Inspectors (RHI) and Associates with CAHPI - Alberta surpass the Government required levels.   To find a home inspector in your area visit: http://cahpi-alberta.com/FindAnInspector.aspx

Borrowedd Downpayment

Flex Down – Borrowed Funds

Target Client:

Despite having good credit, you have not been able to save up the required down payment. Clients can borrow the required down payment from a LOC, credit card or other source. Payments on borrowed funds must be included in TDS.

Advantages:

• Gives clients up to 95% financing
• Down payment will not be amortized with the mortgage, potentially saving money in interest charges
• Both fixed and adjustable rates are available

4 Payment Frequencies (Monthly, Semi-Monthly, Bi-weekly, Weekly)

Full Prepayment Privileges 

 

This is just one of the products I offer to better meet client needs, today!

Buying a cottage and keeping the peace

As summer approaches thoughts start turning to lapping waves, crackling campfires and tranquil forests. It’s the time of year when cottage, cabin or beach house fever starts to take hold.   

But the sunny dream of owning a vacation home may be dampened by the reality of property prices in many of Canada’s popular vacation destinations, plus the usual homeownership expenses such as a mortgage, utilities, and taxes.  Sharing these costs, along with joint ownership, can be ways for families or friends to buy a place that still feels like their own. 

However, before making the leap into co-ownership of a vacation property, buyers must be sure that they really understand the ins-and-outs of sharing a vacation property.  

“Before deciding to split the purchase with relatives or friends, having the right mix of personalities is key to a long-lasting arrangement,”  “You and the other owners will have to decide jointly on everything, from when maintenance or urgent repairs need to get done, to shopping for common supplies.”  

 Considering the following questions as a group before moving forward: 

Does owning a vacation property fit your lifestyle?

In addition to the fun and leisure aspects of a vacation home it is important to factor in the time and cost involved in year-round upkeep. How will the property be used? If your dream is to own a ready-to-live-in relaxing hideaway while your co-owners dream of a northern DIY project, you may not see eye-to-eye when it comes to how you will be spending your weekends. 

It’s important to think carefully about how much time you and your co-owners plan to spend at the vacation property. Will you be vacationing as a group, or do you want to trade off on weekends? Will one use the property more than the other? Will it be a 50/50 split? 

Have you thought about what’s involved before you put it up for rent?

Did You Know?

Did you know…

75% of buyers feel it is very important to pay off their mortgage as soon as possible. 39% have their payment set higher than the minimum required, and 20% have made a lump sum payment since obtaining their mortgage. (2011 CMHC Mortgage Consumer Survey)

Purchase Plus Improvements

Summer is here and customers are looking to upgrade. Why not consider a purchase plus improvements program. This program is great especially for those who found the home of their dreams in a great neighbourhood but it needs work.

 Improvements available up to 10% of the purchase price

- C  Contractor quotes must be submitted with application

Cosmetic upgrades (flooring, paint, kitchen, bathroom, basement development etc.)

Also receive  Home Service Warranty and My Mortgage online

New Rates & Promotions

1.  5.5%* Promotional Cashback Program until September 2^nd, 201. Use the equity in your home to lower your monthly payment plus get cash back.

2. New low rate, 5 year fixed at 3.69%. But wait, with increasing competion and the introduction of a new lender I can do better than that. But unfortunately, the lender does not allow me to advertise it. So you must call me in order for me to tell you the best possible rate available.

Millrates for 2011 for various Cities and Towns

The following are is a list of updated millrates for various towns and cities.
Sylvan Lake-Residential 7.784 Commercial 13.298
Ponoka-Residential 8.3587 Commercial 13.298
Rocky Mountain House Residential 9.855 Commercial 11.1356
Lacombe Residential 9.1909 Commercial 12.4624
Bentley Residential 11.27794 Commercial 16.25294
Eckville Residential 10.75 Commercial 16.806
Rimbey Residential 9.1784 Commercial 12.0772
Red Deer 8.2209 Commercial 16.0387
Many of these rates are including both the additinal taxes collected for school and senior housing but it is always a good idea to check in with the municipal office for any changes.

Bigger Effort by Canadians to Pay Off Mortgage Sooner

The Spring 2011 CAAMP/Maritz survey has found that mortgage holders - especially those who have purchased their homes recently are making considerable efforts to accelerate repayment of their mortgages.

Increased monthly payments:

·  22% of mortgageholders have increased their monthly payments during the past year,

·  16% had increased their payments in prior years (but not in the past year)

·  62% reported they had never increased their payments. 

Made a lump sum contribution:

·  18% have made a lump sum contribution to their mortgage in the past year

·  17% did so in prior years (but not in the past year).  

·  65% who reported that they had never increased their payments.

These payments are in addition to amortization that would occur via scheduled payments.

*Of the respondents, 40% (800 repondents) were homeowners with mortgages. The remainder were renters, homeowners without mortgages or individuals who lived with their families.  

Source: CAAMP.ca

Great New Low Rate

Mortgage Intelligence has another new lender who loves to help my clients save money on interest.
They are offering 3.51% for a limited time for my clients who are either purchasing or refinancing. This rate does not apply for those who are looking for a preapproval.

Protecting Clients Assets-CHIP Home Income Plan

This is the time of year when your senior clients pay their income and property taxes.
With restricted cash flow, many seniors resort to drawing down on investments in order to meet their tax obligations.
I offer my clients a sound, tax-efficient alternative … CHIP Home Income Plan.
CHIP Home Income Plan proceeds are not added to income for tax purposes.
Best of all, CHIP will allow you  to pay taxes and increase your cash flow without sacrificing your investment assets.
In certain situations, where unregistered investments generate income, CHIP Home Income Plan interest expense may be applied to gain tax deductions, further reducing your clients’ taxes.
And there are more great benefits:

• no interest or principal payments due until your clients choose to move or sell
• no income, credit or medical qualification required
• Rates starting at 4.75% and 50 bps rate discount when interest payments are made annually

 Seniors are the fastest-growing segment of the population.  Like no other generation, they have been living longer, spending more, and saving less.  I can help you meet your needs by providing you with a long-term borrowing solution that will meet your needs.

Mortgage Rate Outlook

On April 12th, the Bank of Canada

announced that it was leaving the

Target for the Overnight Rate

unchanged at 1.0 per cent. The last

increase in the overnight rate

occurred on September 8, 2010 when

the Bank of Canada raised it by 25

basis points. The Bank of Canada is

expected to resume raising the

overnight rate in the fourth quarter of

2011. Mortgage rates, particularly

short term mortgage rates and

variable mortgage rates, are expected

to remain at historically low levels.

According to CMHC’s base case

scenario, posted mortgage rates will

remain relatively flat in 2011 before

increasing moderately in 2012. For

2011, the one-year posted mortgage

rate is assumed to be in the 3.1 to 3.5

per cent range, while three and

five-year posted mortgage rates are

forecast to be in the 4.1 to 5.6 per

cent range. For 2012, the one-year

posted mortgage

rate is assumed to

be in the 3.4 to 4.3 per cent range,

while three and five-year posted

mortgage rates are forecast to be in

the 4.2 to 6.3 per cent range.

Rates could, however, increase at a

faster pace if the economy ends up

recovering more quickly than

presently anticipated. Conversely, rate

increases could be more muted if the

economic recovery is more modest in

nature.

Source: CMHC

Rate sheet for June 3 2011-Check out the new low 5 year fixed

Rate Sheet for May 24 2011-Check out my new low 5 year fixed!

Mortgages Designed for the Self Employed

It’s a favourite daydream of working Canadians: to go intoSource: Mortgage Intelligence

business for yourself! For some Canadians who are self-employed,

their situation is the consequence of corporate

downsizing. For others, it is a carefully planned decision to

leverage their knowledge and experience for themselves

and improve their own bottom line.

Typically a very innovative and energetic bunch, the selfemployed

now comprise approximately 16% of Canada’s

total workforce. We like to imagine that these are the lucky

folks who are living their entrepreneurial dreams.

Talk to self-employed Canadians about getting a mortgage

and many will tell you that the dream can have downsides.

These individuals – who may actually be more financially

successful than ever – often do not fit traditional mortgage

lending criteria. It can make mortgage shopping a frustrating

and, for some, a humiliating experience.

Without an established stream of pay stubs from an employer,

lenders have none of the traditional assurances that

you can meet your mortgage obligations. You may be expected

to undergo a long and complicated process to prove

your ability to service your debt. Lenders want to verify your

employment and your income – not a simple task for someone

who is self-employed. Lenders are also looking ahead;

they will want some evidence that payments can be made

for the life of the mortgage – not just over the next year.

Most frustrating of all, small business owners are usually

expected to provide detailed financial statements for their

business for the past two years. What picture do those

statements paint for the lenders? An astute business owner

with a good accountant will work hard to minimize taxable

income for the business: a smart financial management

strategy. When lenders plug those figures into their lending

formulas – they may conclude that you are a high-risk

borrower.

The problem is not with the self-employed as a category;

it is with lenders’ traditional criteria and their inability to

reflect the different income environment of a self-employed

homebuyer.

Thankfully, the lending landscape has adapted to this

market need. Certain lenders have designed mortgage

products precisely for this very attractive market segment.

Naturally, the lender will still need to assess risk, but the

criteria are tailor-made for the self-employed and

essentially take a common sense approach to the definition

of income. You could qualify for your mortgage based

solely on what you state your income to be, and after

confirmation that your lending ratios, credit and tax liabilities

are in good order. It can be that quick and easy!

As more lenders enter this market niche, you’ll find that not

all products are equal. As a group, the self-employed often

delegate to other professional service providers and this is

a situation where you may want to seek advice from a

mortgage professional so you get the best mortgage for

your needs.

For the self-employed – who build their own success on

understanding the needs of their customers – the new

mortgages designed for them are good business. And

they’re also welcome news to the growing number of

Canadians who are building their own success in their

own way.

STABILITY IN THE CANADIAN MORTGAGE MARKET

May 2011 Significant Statistics-Report Completed by the Canadian Association of Accredited Mortgage Professionals  (CAAMP)
There is currently $855 billion in mortgages on principal residences and $215 billion in Home Equity Lines of Credit (HELOC)
 Individuals with HELOCs only have an average 65 per cent equity in their homes
 HELOC prevalence is highest among middle age homeowners
 Equity takeouts amount to $26 billion annually, with most funds used for renovations ($9.4 billion), followed by investments ($5.0 billion)
 The average down payment for a home purchased in the last 12 months was 30%, up from 26% for homes purchased two years ago
 Among all borrowers, 63 per cent have fixed rate mortgages, 30 per cent have variable rate mortgages and 6 per cent have a combination of both
 Less than a quarter (22 per cent) of all borrowers have amortization periods longer than 25 years
 34 per cent of those who most recently renewed or renegotiated their mortgages did so before their term expired. The average time to pay off a mortgage is 7.4 years less than the original amortization
 200,000 homeowners paid off their mortgages in the last 12 months
 The average mortgage interest rate discount is 1.44 per cent for those who chose a five year fixed rate mortgage in the last twelve months with the average mortgage rate being 4.04%
 Of those who renewed their mortgages in the last twelve months, 65 per cent are paying lower rates than previously
 66 per cent of all mortgage borrowers can tolerate a monthly mortgage increase of $300 or more
 Among borrowers who took out a new mortgage in the last 12 months, 27% obtained it from a mortgage broker. Overall mortgage broker share stands at 23%
 Canadian appetite for home buying has returned to pre-recession levels, following a slide over the past three surveys. Almost 60 per cent respondents thought that now was a good time to buy
 Optimism is returning to the market with almost half (46 per cent) of those questioned saying that they expect prices to rise

For Sale

Commercial Building for Sale in Rimbey. Asking $225000. For video presentation visit www.rimbeyrealestate.ca.
Business is negotiable but not necessary. Rental income from apartments and Purolator. Additional large storage area as well in basement. Showroom measures just over 3000 sq ft.

New Low Rate

Our best 5 year fixed rate is now only 3.99%.

My best variable is still available at 2.25%.

Possible Costs When Selling or Buying a Home

Home inspection -- A house inspection or property inspection can cost in the $350-500 range for most single-family homes. Home inspections are recommended to identify if there are any other potentially costly expenses – issues not visible to the naked eye – that may impact the costs and upkeep of the home.

Property survey  A land surveyor carrries this out. They measure the property and hopefully obtains a stamp of compliance from the municipality in which the home is located.   With a RPR or Survey, the buyer will precisely know the boundaries. Sellers if one is not in place will in most cases pay for this. It is a requirement when selling a home and if one is not in place then some sellers will provide and pay for title insurance.

Water testing -- for properties not on a municipal water system, most - if not all - financing institutions require the water source to be tested to ensure it meets standards for human consumption.  If I am representing a buyer and helping them purchase an acreage I  will pay for the water testing. The water test is often a "condition" on the Offer to Purchase.

Status certificate fee -- When making an offer to purchase a condominium, it’s a good idea to ensure an offer is conditional upon obtaining and having time to review an Status certificate. This fee (not applicable in Quebec) applies when buying a condominium or strata unit and could cost up to $100.

Land transfer tax- Alberta has no land transfer tax.

Legal Fees --  Legal costs will depend on the complexity of the transaction and the lawyer’s experience.

Prepaid property tax or utility bills- Buyers should be prepared to reimburse the seller for prepaid property taxes and utility bills if say they were taking possession mid year or month depending on the circumstances.

Average Price Per Province for the Month of March 2010 & 2011

Mar 2010 to March 2011 Average Prices for Various Cities

Mortgage Intelligence in the News

The Toronto Star

Thursday, April 28, 2011

Variable-rate mortgages can save a lot

Long-term savings entice, but consider your risk-tolerance

Leanna Mamatis and her husband Rick knew exactly what they were after when they sold their home in North York and bought a new one in Markham. 

They wanted more space, but not too much, and a swimming pool in the back yard. 

Mamatis also knew what she was looking for on the mortgage. Even though interest rates are poised to increase, the couple decided to go with a variable-rate mortgage for a three-year term. 

"It's lower than the fixed rate," Mamatis said. "I'm not a financial expert, but it seems to me that interest rates are not going to go up too fast too soon. I just wanted to make the payments as minimal as possible in terms of the interest." 

With other pressing expenses, such as tuition and fees and lessons in music, karate, hockey and baseball for their four teenagers, making extra mortgage payments is not a priority right now, Mamatis added. "But if we can put a chunk of money down on the principal, then we will."

Research shows that homeowners who take a variable-rate mortgage can save much more over the life of a mortgage than those who stick with a fixed rate.

But even those experts caution that variable mortgages, which go up and down with the prime rate, aren't necessarily right for everyone. What looks best on paper may not be what fits your life.

If you opt for a fixed rate, you know that your payments will not change over the mortgage term. You'll pay a higher interest rate in exchange for that peace of mind.

A quick glance at RateSupermarket.ca shows the great divide between fixed and variable.

For a $200,000 mortgage at a five-year fixed rate of 5.69 per cent, you'll have a monthly payment of $1,243. Over the 25-year life of the mortgage, you'll pay a total of $372,898, of which $172,898 is interest.

On a variable rate of 2.85 per cent, your payments on a similar mortgage are just $931 per month. You'll pay total interest of $79,350 over the life of the mortgage.

Of course, that assumes your variable rate stays the same, and that's an assumption you just can't make.

That's why homebuyers must give a lot of thought to their tolerance of risk and the state of their personal finances when they decide on a rate and a term. Ask yourself: if you choose a variable rate and rates go up, will you be able to afford the higher monthly payments?

In 2001, Moshe Milevsky, a finance professor at York University, released a detailed statistical study showing that variable-rate mortgages saved borrowers money 88.6 per cent of the time over fixed rates.

An update in 2008 also came down on the side of variable rates.

"That study has to be taken with caution. It is a probability argument," Milevsky said.

"It's a lot like buying stocks and bonds. While overwhelming research shows that stocks outperform bonds most of the time, there will be prolonged periods of time when bonds do better.

"That's why we always tell people with investments, if you can't take the chance of losing money and you don't have the risk appetite, don't put all your money in stocks."

The Bank of Canada, which kept interest rates at historic low levels to support the economy through the recession, is expected to begin raising rates later this year.

Mortgage broker Jeff Mayer of Mortgage Intelligence has clients with variable mortgages asking if they should lock in before rates rise.

"I tell them you have to look at the trends and the past history.  The rates will go up in time, but the Bank of Canada usually only changes rates by 25 basis points (one-quarter of a percentage point) at a time," he said.

The difference between a variable and fixed rate right now is one percentage point or, in some cases, even more.

Broker Paula Roberts urges clients to think about the term of the mortgage.

"Most people automatically go to the five-year term. Sometimes they don't even realize they have other options," said Roberts, a broker with Mortgage Intelligence.

"People need to think about their plans for the next three to five years. If you know you're going to be moving or having kids, you can take a shorter term. If you want the certainty of the fixed rate, you can choose a longer one."

She also suggests that borrowers with a variable rate set their monthly payments at a higher amount, closer to the fixed rate. The excess will go directly to the mortgage principal and if your rates go up and you lock in, there won't be any payment shock.

"Start with your own financial goals and work backwards from there," said Colette Delaney, senior vice-president at CIBC Mortgages, Lending and Insurance.

"Interest rates can change, but so can things in your life, particularly for younger people. You may be changing jobs and moving away or starting a family in the next couple of years," Delaney said.

For instance, you probably have other financial goals, such as saving for retirement or your children's education.

"Just because you take out a mortgage doesn't mean you forget about all your other goals or saving a little bit each month. If rates move up, are you still going to be able to put money away in that RESP or take a holiday?

"It's not just about looking at the interest rates today and choosing the lowest one; it's about looking at the years to come and having a mortgage that will allow you to adapt."

Newest Testimonial

Dawna Providenti is a very accomodating agent. Her pleasing personality knowledge and business expertise is impressive. She is very considerate realtor and aware of all circumstances pertaining to making a sale. Her consistency and follow up was much appreciated.
Winston & Arlene Edwards

Bert Bruinsma, RHI Home Inspector Homealyze

What does your inspection cover?

It is designed to produce a report that includes a visual assessment of the house as a system including the foundation, structure, exterior, heating system, ventilation, plumbing, electrical system, interior, insulation, roof and other components that are found in homes.

How long have you been practicing in the home inspection profession and how many inspections have you completed?

I have been inspecting homes for many years. I purchased my Home-Alyze franchise in 2001 and chose Home-Alyze because they have been inspecting homes since 1978, and have an excellent reporting system. I personally have inspected more than 3000 homes in the past 10 years. 

How long will the inspection take?

An inspection typically takes about 3 hours, but it could be longer depending on the age, size and features of the house.

Will I be able to attend the inspection?

You can and should plan to be present for the inspection and feel free to ask any questions that may come to mind along the way. We enjoy our work and love to share what we know.

Also, be sure to allow time for your inspector go through the inspection report with you at the conclusion of the inspection. This provides another opportunity for you to ask questions and to clarify any concerns, adding significant value to the inspection process for you.

Do you maintain membership in a professional home inspector association? If not is your industry going to become a licensed industry where home inspectors must maintain it with education requirements?

I have the following professional credentials, all of which require annual proof of continuing education:

• Registered Home inspector (RHI) with the Canadian Association of Home and Properly Inspections. (CAHPI)
• Certified Inspector with the American society of Home Inspectors (ASHI)
• National accreditation through National Certification Authority. (NCA)

In Alberta, there is currently no licensing for home inspectors. So anyone can become a home inspector. It is therefore important to ask about credentials when you are hiring a home inspector. Also, your realtor may be able to help you with the names of home inspectors they have worked with in the past.

What kinds of qualifications should someone be looking for in a home inspector

Your home inspector should have several years of construction and/or technical experience. At Home-Alyze, we view a home as a system with many components in it that need to work together. We attend regular technical meetings and/or courses through Association Membership.

Why Get A Home Inspection?

A home is one of the most important investments we all make, and home inspections help us to maintain and protect that investment while at the same time ensuring that the home environment is safe and secure.

Should a Home Inspection be performed on a newly constructed house?

Inspection of a new home (while the new home warranty is still available) can sometimes help to identify things that still need to be completed that the homeowner might miss. It is more important to use a professional Home Inspector just before your “primary” warranty period expires so you can notify both the Warranty Company and the Builder of apparent deficiencies that may still be covered by the warranty.

What are some common things found wrong with a property?

Every house is unique, but the following are often found during the inspection process:

• Leaks (roof, flashings, basements, plumbing).
• Unprofessional electrical work
• Cracked heat exchangers
• Deficiencies around ceramic tile that lead to mould and rot behind the walls.

How can such things be prevented?

As part of the inspection process, we provide our customers with a schedule for when maintenance and repairs need to be done.  Doing these things before problems occur and on a regular basis where necessary will help to prevent unexpected costs as well as promote efficiency and safety. Also as part of our service to our clients, and since we have a file on their house, they’re free to call us with questions anytime as long as they own the house. Without re-inspecting the home, we will answer questions for them, even if they are developing the basement or adding an addition.

Any words of advice for sellers so that a property inspection goes smoothly?

Consider a ‘pre-listing’ inspection’ of your home. It has many benefits and can often give you better leverage on the price of your home. It will give you a good idea of what the purchaser may find, avoiding surprises and allowing you to make any necessary repairs before listing your home. Sellers are provided with signs to let potential buyers know that their home has been pre-inspected.

When a buyer chooses to have a home inspection, the seller can make the process smoother by ensuring that:

• There is no clutter, boxes, clothing, etc. on the floor impeding access to areas that need to be inspected.
• There is access to all areas of the home and garage.
• Any hazards such as loose wiring, wet floors, etc. are eliminated or if that is not possible, that the inspector is aware of the hazard prior to the inspection
• The inspector is aware if you have pets that are free in the house and not allowed outside.
• There is clear access to the attic access panels. If the attic panel is in a closet, remove any stored items that may impede access.
• All electrical panels are unobstructed and easily accessible.
• All utilities are turned on (water, gas, electrical) if the property is vacant, so that those systems can be properly inspected.
• The inspector is aware of any special considerations or concerns that require extra care during the inspection process.

Any words of advice for a buyer so that a property inspection goes smoothly?

The more you know – The easier and better the process will be for you:

• Gather as much information as possible about the process of buying a home and about the home you are considering.
• Attend seminars and ask questions if this is the purchase of your first home.
• Make the sale conditional, subject to a Home Inspection.
• Hire an experienced and qualified home inspection expert.
• Plan to attend the inspection if at all possible, and be sure to have plenty of time to review the inspection report and to ask questions after it has been completed.