30 Aug

What are your Labour Day plans?

General

Posted by: Angela Lavender

Mark the holiday with a backyard gathering, stock up on essentials and prepare for a new season

 August 28, 2018
Houzz Contributor. I cover decorating ideas, Houzz tours & the monthly home maintenance…More
Labor Day (Sept. 3) marks the unofficial end of summer. Give the season a proper sendoff with a backyard barbecue and one last scoop of ice cream. Then check off some fall tasks on your to-do list. Seven ideas for savoring one more long, summery weekend are ahead.
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23 Aug

How to Choose a Remodeling Contractor

General

Posted by: Angela Lavender

It takes a little leg work to find the best person for the job.
https://www.hgtv.com/design/decorating/clean-and-organize/how-to-choose-a-remodeling-contractor

Man Carrying Ladder

By: Alicia Garceau

When choosing a contractor to head up your remodel, these simple steps can mean the difference between complete confidence and sleepless nights.

Ask for Referrals
Word of mouth-hands down, is the best way to find a qualified professional to tackle the job. Ask relatives, friends and neighbors whom they’ve had good experiences with. And ask what made it a positive experience, how the contractor handled problems and whether he or she would use the same contractor again.
Look at Credentials
With recommendations in hand, do some preliminary research, whether it’s with a phone call or a visit to the contractor’s website. Find out whether he or she holds all the required licenses from state and local municipalities, along with designations from any professional associations such as the National Kitchen & Bath Association, the National Association of the Remodeling Industry and the National Association of Homebuilders. Look for contractors who have invested in course work and passed rigorous tests to earn particular certifications. Be aware, however, that not all certifications are created equal. Do some homework and find out the requirements.
Interview Candidates
Narrow down the list of contenders and set up meetings. Try to keep it to three contractors, because things can get confusing beyond that. How a contractor answers questions is extremely important, but communication goes both ways. Candidates should ask plenty of questions, too.
Check References
Ask to see some of the contractors’ projects. If you approve of them, request references and call contractors’ former customers to check up on them. Ask how the contractors did at executing the projects. Were they on time and on budget? Were the customers pleased with the outcome? Was there anything that could have been done differently?
Remember that when you’re hiring a remodeler, you are buying a service and not a product. Quality of service will determine the quality of the finished project. Here are some things you’ll want to explore and questions you’ll want to ask when interviewing a remodeler.
Business Experience and Management
Does the remodeler:
1: Maintain a permanent mailing address, e-mail address, personal phone number, fax number, cell phone and voicemail?
2: Carry insurance that protects you from liability? Ask for a copy of the remodeler’s insurance certificates to be sure. Also, ask the remodeler how much the project will add to the home’s value and attain additional insurance from your provider.
3: Have an established presence in the community? How long has the company been in business under this name? Does the remodeler maintain solid relationships with contractors such as plumbers and electricians and work with them as a team?
4: Possess a trustworthy reputation among customers and peers? Is there a track record of success?
5: Have any professional designations, such as Certified Graduate Remodeler (CGR), Certified Bath Designer (CBD), etc.? How long has the remodeler been a member or any trade organizations?
Get It in Writing
After selecting a contractor, take a look at the documents he or she has prepared. Do they look professional? Scrutinize the contract. Does it seem fair and balanced? And make sure the legal agreement includes the following:

  • a bid price and payment schedule
  • specifics about the scope of work
  • the site plan
  • a sequential schedule of primary construction tasks
  • a change-order clause
  • a written procedural list for close-out
  • an express limited warranty
  • a clause about dispute resolution
  • a waiver of lien, which would prevent subcontractors and suppliers from putting a lien on a house should their invoices go unpaid by the contractor
If everything checks out, you can sign on the dotted line with confidence.

21 Aug

4 KEY THINGS YOU NEED TO KNOW ABOUT A SECOND MORTGAGE

Mortgage Tips

Posted by: Angela Lavender

1 AUG 2018

Many homeowners are vaguely aware of the fact that you can take out a second loan on your home. You hear your friends mention it or perhaps a family member close to you has gone through the process—but do you truly know what it means to take out a second mortgage? We have taken all the questions we get asked about second mortgages and compiled it into four key points.

A SECOND MORTGAGE IS BASED ON THE EQUITY IN YOUR HOME
The total loan amount that the second mortgage lender will offer you will depend on the equity that has been built up in your home. Second mortgages allow you to access up to 95% of the equity you have in your property. For instance:

House Value $850,000
95% LTV (maximum mortgage amount) $807,500.00
First Mortgage $550,000.00
Amount Available Through Second $257,500.00

INTEREST RATES WILL VARY AND BE HIGHER THAN YOUR FIRST MORTGAGE
This is because when a lender agrees to a second mortgage, they are taking a higher risk as he gets second priority in case of default. With that being said, we have options and solutions such as working with private lenders that can help you obtain a reduced rate and the right product for your mortgage situation. Typically, you can expect an interest rate of 6.95%-19.95% with lender and broker fees included.

YOUR PAYMENT CAN BE AS LOW AS INTEREST ONLY PAYMENTS
One of the advantages of selecting to use a second mortgage is the fact that the payments are attractive. You can pay interest only payments or you can also select to pay the interest plus the principle loan amount. You can work with your mortgage broker to discuss options and what would work best with your situation.

THERE ARE ADDITIONAL FEES TO CONSIDER
Since we want to have you understand ALL the fees associated, it is important to know that setting up a second mortgage will require you to pay: *note dollar amounts are approximations

An appraisal fee to assess the value of your home: $300
Legal fees to set it up: $2,000
Lenders & Broker fees: 1-5%

Second mortgages are a great option for many and may be a better solution than a refinance or a Home Equity Loan (HELOC). If you are interested in learning more or want to find out if a second mortgage is right for you, talk to your Dominion Lending Centres mortgage broker. We can guarantee they can guide you the process from start to finish!

Geoff Lee

GEOFF LEE

Dominion Lending Centres – Accredited Mortgage Professional
Geoff is part of DLC GLM Mortgage Group based in Vancouver, BC.

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