BARBARA GRUMME’S BLOG!

Essential Kitchen Chic -

Thinking about remodeling your kitchen any time soon? Pendant lights are a great way to update the look of your kitchen, whether you are planning a major remodel or something on a much smaller scale. Go from drab to chic and show off your personal style at the same time! Pendant lights come in a variety of styles and are great if you’re trying to achieve a contemporary or modern look. Pendant lights can be suspended from the ceiling over a countertop, bar or table, providing both general and task lighting. A nice pendant light can even provide romantic mood lighting if you opt for a style with a dimmer function. Here are some great ways to utilize pendant lights in your kitchen space.

• The Kitchen Table: Updating the lighting over your kitchen table is such a quick fix. It’s important to consider the size of your kitchen table before choosing a pendant light. You want your light to look proportionate next to the table; in fact it’s probably a good idea to center it over your kitchen table.

As far as finishes for your modern pendant light, you can easily class things up by choosing a pendant light with chrome, aluminum or brushed nickel finish. A smooth, metallic and glass fixture is quintessential modern style; just make sure that you choose a light without any ornate detailing. Modern style is typically very minimalistic. If you are looking to make more of a statement at your kitchen table, consider something bolder. Contemporary designer George Kovacs has a beautiful line of chrome-finished pendant fixtures that are flashier and edgier than your average kitchen lighting. The beautiful LK172 Pendant Lamp from modern Danish design house Le Klint is another ultra-modern option for you to consider. Stark white, LK172’s shade features folded pleats that conjure up thoughts of a nice whipped cream sundae topping. Prominently featured everywhere from chic eateries, decor magazines and television shows, LK172 is modern elegance defined.

• The Breakfast Bar or Kitchen Island: Pendant light fixtures are perfect if you have a long, flat surface that requires good task lighting. A pendant light strip from Zaneen Lighting or Estiluz would work well if you wanted to use a single fixture over your breakfast bar or kitchen island. A string of two, three or four pendant lights (depending on how long your space is) would also be suitable, allowing you more design creativity. By choosing a different color shade for each light, you’d add a splash of color and personality to your kitchen. LBL Lighting, Lite Source and George Kovacs make some beautiful colorful glass pendants. Centered perfectly over your island, a pendant light can really accentuate the natural beauty of a granite or stone countertop.

• Eco Friendly Pendant Lights: If you are attempting to make your new kitchen more eco-friendly, pendant lights are a great way to do this! Energy-efficient Energy Star technology is being incorporated into more pendant light fixtures, which combined with cooler-burning LED lights can make for a much “greener” kitchen! Progress Lighting and ET2 are two lighting manufacturers that specialize in classy-looking LED kitchen pendants. It’s also important to keep in mind what materials your pendant lights are made out of. Paper Cloud makes a beautiful line of hand-printed linen/paper pendants that are perfect for any kitchen. While the definition of what makes something “modern decor” might be a little grey, there’s no question that a “green” kitchen is a modern kitchen.

chis-news-vol-14 -  click here for interesting and important information on painting your home

1.       Pre-qualifiers and Pre-approvals  Pre-qualifiers are an opinion as to the maximum purchase price that a client can afford.  This information can be communicated within the same day so that you can start shopping for a home with your client.  A pre-approval provides not only the guidance of a maximum purchase price but also a guaranteed rate for a specific periods of time – up to 120 days.  Pre-approvals take 24-48 hours as a rule.  With the approval of the client, I can email this information to you so you know exactly where they stand.

2.       Variable Rates  Current variable rates now have a premium, a month and a half ago the best rate was prime - .75%, it is now prime + .75% and most banks are offering prime + 1%.  Prime is currently at 4% so a rate of 4.75% or 5% is still a better choice than long term rates (3-5 year fixed) which are in the mid to high 5% range.  Bank of Canada is expected to reduce the overnight rate by 25-50 bps by the end of the year and if the lenders follow suit variable rates may be at 4.50-4.75% (prime being 3.50-3.75%).  Variable rates can always be converted without penalty to a fixed rate.  Another great option with built in flexibility.

3.       Fixed Rates  Short term rates of 1-2 years are also favourable at this time for the client that prefers a fixed rate.  This is one of the strategies that I have my clients in over the last few weeks.  We may take these to term or move to another mortgage option if rates shift in favour of the client.

4.       40 year amortizations  40 year amortizations still exist for properties that are 80% loan to value of their appraised value (conventional).  This includes owner occupied and investment (rental) properties of up to 4 units.

5.       Investment Properties  Investment properties can be financed up to 95% loan to value for a 1-2 unit property.  For a 3-4 unit property the maximum is 90% LTV.  A perfect choice for clients who want to avoid the stock market for investing. 

6.       Condition on Financing  Condition on Financing, as a rule 3-5 business days.  The more complex the deal, the more days are required.  Call me for guidance.

7.       Commercial Mortgages  Please call me on any commercial deal you may have, each commercial deal is looked at on a case by case basis and is heavily underwritten based on cash flow.

8.      Self-Employed Clients  Client that are business for self for a minimum of 2 years can qualify for a purchase of up to 95% loan to value even if they show a low income on their Notice of Assessments.  Good credit and a 2 year history of being in business are the only requirements to qualify for best rates.

9.       Mortgage Brokers now regulated  Mortgage Brokers are now regulated by FSCO as of July 1, 2008.  There are hefty fines for those who portray themselves as a Mortgage Broker and are not licensed, not to mention that this could kill a deal.  Know who you Broker is and make sure they are licensed, leave nothing to chance. 

The one question we seem to be hearing over and over again is, “How’s the Market?”

It’s a great question, given that market conditions play an important role in property prices, competition and average selling times.

The market can typically fluctuate within three types of market conditions:

1.        A Seller’s Market,

2.        A Buyer’s Market, and

3.        A Normal or Balanced Market

One Way to Determine Market Conditions

A good indicator of market conditions is to interpret the number of months of listing inventory on the market:

·          4 to 6 months of inventory equals a Seller’s Market

·          6 to 8 months of inventory equals a Normal Market

·          8 to 10 months or more equals a Buyer’s Market

So How is This Arrived At?

Take the total number of listings on the market and divide that by the average number of sales per month. This gives the number of months of listing inventory. 

Breakdown by City to 3^rd Quarter

The following breakdown is based on MLS listings and sales activity for the first three quarters of 2008 by city.

The government has tightened up lending rules with the elimination of 0 Downpayment and a 40 year amortization on home purchases.

 As of October 15, 2008, the government no longer allows insured mortgages with nothing down

Now, as it used to be, a CMHC Insured Mortgage requires a minimum down payment of 5%–a back to the future policy change.

Yet 0 Down purchases are still possible

with the CMHC Flex-Down Plan

This offers buyers the opportunity to buy a home sooner by using a wider range of sources for their down payment. So if a buyer does not have the minimum 5% down from their own resources, they can, if they qualify, buy with the following non-traditional sources.

–Cash Back Incentive. Some lenders offer 5% cash back on mortgages, which can be used as one’s downpayment. A credit score of 600 or better is needed. Of course, the buyer would need to have closing costs set aside.

–Gift Letter. A gift letter from a parent, brother or sister continues to be acceptable. The gift letter must state that the money is not repayable.

–Borrowed Funds. This method can still be used, provided the Borrower’s total debt including mortgage does not exceed 40% of income.

Advantages of CMHC Flex Down

·          Helps Provide Earlier Access to Homeownership, with as little as 5% down.

·          Permitting an optional range of sources for one’s down payment, gives more people the option to buy a home and start building equity.

·          Access to CMHC insured financing gives buyers the advantage of competitive interest rates which continue to remain low.

·          The Flex-Down Plan is available coast-to-coast with no set maximum loan amount.

0 Down Through Secondary Lenders

Some secondary lenders will lend up to 85% of the purchase price and self insure the mortgage. They then can allow the buyer to arrange a second mortgage for the remaining 15%, provided the buyer qualifies. The CMHC Flex-Down Plan is by far the cheaper and better route to faster homeownership.

Our Centum Omni Mortgage Specialists can provide more details and a confidential review to a potential homebuyer.   

More than 1,100 Greater Area realtors gathered to hear some of Canada’s top real estate industry experts talk about the future iof the housing market at the Toronto Real Estate Board’s 88th Annual Meeting on October 72th.

Much of the discussion was focused in current market conditions, with panelists attributing a recent dip in the Toronto area resale housing market to waning consumer confidence. “People are mislead by the media,” said Living Realty’s Stephen Wong. “We don’t have a problem; it’s being self-inflicted.”Panelists also agreed that while a return to robust conditions may not be seen until 2010, the market continues to be balanced and supported by the  economic fundamentals of strong employment and immigration, and historically low interest rates.In addition, Royal Lepage’s Phil Soper noted “Were going through a time of general economic malaise but it is not going to prolonged and in the housing market we’re not going to see a reset because it wasn’t off in the first place’” he said.