Tag Archives: Real Estate

This Weekend’s Open Houses!

Your Local Real Estate Team will be busy tomorrow hosting 5 open houses at 5 beautiful properties. Get the details below:


This bright brick bungalow will take your breath away!  Check it out on Saturday April 28th, 2018 from 12:30 pm to 2:00 pm at 48 McGuire Crescent in Tillsonburg.



View the immaculate living space filled with natural light and stunning hardwood floors at 36 Fernwood Drive in Tillsonburg on Saturday April 28th, 2018 from 12:00 pm to 1:30 pm.


Take a look at the investment potential on Saturday April 28th, 2018 from 12:00 pm to 1:30 pm. The large lot dressed with cedar trees at 76 Vienna Road in Tillsonburg offers quick high way access and plenty of privacy.


View this bright and beautiful open concept home in the quaint village of Norwich at 99 Lossing Drive on Saturday April 28th, 2018 from 2:30 pm to 4:00 pm.



Get one of the first looks this brand new listing on Saturday April 28th, 2018 from 2:30 pm to 4:00 pm. 147 Concession Street West in Tillsonburg offers approximately 4656 square feet of finished living space on a mature treed lot!


Contact Your Local Real Estate Team for more details at 519-409-7653!



Buyers Should Brace for an Unprecedented Real Estate Frenzy in Long Point

Buyers can expect mad competition for cottages to continue.During the course of marketing this cottage for sale the seller received multiple offers to choose from. Bidding wars are the new normal in today’s ultra competitive real estate market.

LONG POINT –  Buyers can expect the mad competition for cottages to continue with many selling for over-asking prices amid multiple offers.

In a seller’s market, the way to achieve the best price is to have the most exposure in the shortest amount of time. Erie’s Edge Real Estate Ltd. has the local knowledge and experience to position properties that will create a favourable response from today’s buyers. The result is often competing offers also known as “bidding wars.”

With the average price of a detached house hitting $1.3 million last month in Toronto, a significant uptick in buyers from the GTA looking to invest in property elsewhere are driving prices way up.

Additionally, millennials priced out of urban areas are opting for the cottage as recently featured in The Globe and Mail.    

Generating and presenting multiple offers is a complex process. A seller in receipt of competing offers has several possible options to consider. They are:

• Accept one and reject the others;

• Sign one back and reject the others;

• Reject all offers, sending them back to the buyers for improvement;

• Sign one back and hold on the other offer(s) pending a response from the buyer getting the sign back;

• Hold on to one or more offers while sending the other offer(s) back to the buyers for improvement: or

• Hold on to a couple copies of each offer, and send the other copies back to the buyers for improvement if they so desire.

Each of the above options has positive and negative consequences for the seller. If you’re thinking of selling and want our assistance in obtaining the most amount of money and navigating the complexities of the current real estate market we can be contacted at 519.586.7922 or www.LongPointBeach.com.


Your Easiest Move Ever

Moving is a BIG chore and it can become overwhelming!  To help our clients stay organized we’ve invested in a technology to provide you with your own online and personal moving concierge to handle all of the stressful and time consuming details of moving.

Welcome to your moving conciergeWhat is an online personal moving concierge? It is the easiest way to complete all of your move related tasks. It brings together everything that you need for your move in one simple dashboard so that you can stay organized and save time. We were so impressed with everything that it can do and how simple it is to use, we know you are going to love it!

Through your personal dashboard, you will be able to completely manage your move. Let’s assume you need to transfer your electricity provider before your move date.smart phone - moving made simple  In your dashboard, you’ll simply click “Move Your Utilities,” and select “Electricity.” Two clicks are all it takes, and your transaction will be completed securely and directly with your provider, so you never have to worry about sharing private information. And that’s just the tip of the iceberg!

How about notifying businesses of your new address? The average household has to notify 15 to 20 different businesses of their move. That’s painful. Through your dashboard you can change your addresses with hundreds of business and even order your new government I.D. cards.

From finding local moving companies, or finding local charities to pick up unwanted stuff, to taking steps to prepare your new home for your arrival your online personal moving concierge with Erie’s Edge Real Estate will make moving simple.

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How Much Will I Owe in Capital Gains Tax if I Sell My Cottage?

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When you and your family decide that it is time to pack up the bug spray, sunscreen and bathing suits and list your family cottage you may have a lot of questions.  Like, who gets to keep the water wings? Where did your favourite blue bathing suit go? And, who wants to help use up the last of the fire wood and marshmallows?

There’s also a good chance that you’re going to have a few questions for your local REALTOR®.

Such as “What will I owe in capital gains tax if I sell my cottage?”
With the sale of any property, you are required to report it to the CRA and pay the applicable capital gains tax. This includes the sale of your beloved family cottage. The CRA does offer an exemption on this appreciation tax to principal residences, which could possibly apply to your cottage. Let me explain.
If you enjoy your cottage as your vacation home and it IS NOT  your principal residence then you would be required to pay the applicable capital gains tax at time of sale. How much exactly? The amount that you will owe depends on the appreciated value from the time you purchased the cottage 
For example,  if you purchased the cottage for $200,000 ten years ago and now plan to sell the cottage for $500,000 due to appreciation and improvements you’ve made over the years you would owe capital gains tax on $300,000 (the difference between sell price and purchase price).
On the other hand, if your cottage IS your primary residence then you may be exempt from paying any capital gains tax.
Although the sale of a principal residence still needs to be reported to the CRA it is exempt from being taxed on capital gains.
In some scenarios, your cottage may start off as your vacation home but become your primary residence after some time.  If this is the case, the tax owed on capital gains is based on the appreciation before it became your principal residence. 
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For example, you purchased the cottage for $200,000 ten years ago but moved in to the cottage as your primary residence after five years of ownership. At that point the cottage had appreciated in value to $250,000.  In the five years since you’d been living there, you completed improvements increasing its value further and intend to sell it now, another five years later, for $500,000.
In this scenario you would only owe capital gains tax on $50,000 (the value of the property at the time it became your principal residence less the original purchase price). You would be exempt from paying the capital gains tax on the additional $250,000 in appreciated value over the five years that the cottage was your principal residence.
Contrary to popular belief, capital gains are not taxed at your marginal tax rate. Only half (50%) of the capital gain on any given sale is taxed all at your marginal tax rate (which varies by province). On a capital gain of our example of $50,000 for instance, only half of that, or $25,000, would be taxable. For a Canadian in a 33% tax bracket for example, a $25,000 taxable capital gain would result in $8,250 taxes owing. The remaining $41,750 is the investors’ to keep.
If you’re thinking of selling your cottage we can help make sure you are asking the right questions and getting the answers that you need. You can reach out to us at 519.586.7922.

Get to Know the Home Buyers’ Plan


Just over a year ago, I made the huge step of purchasing my first home. (Don’t be so impressed, I was almost 30, it was time).

I’m a millennial so, I obviously browsed the internet for all the do’s and don’ts, tips and tricks of buying a home. With the weighing reminder from all the internet “experts” about “the hidden costs of home-ownership” and “the first year is the toughest”, it is no wonder that spending much of my readily available savings on a down payment conjured feelings of pure panic.

I could surely write you a hefty list of advice for purchasing your first home. Tips like, make sure you can get INTERNET at that cute home tucked into the forest of trees in the middle of nowhere (Yes, that happened).  However, I will stick to one important tip that helped to relieve some of the stress that came along with making the largest purchase of my life.

If you are considering buying or building your first home, find out if you qualify for the The Home Buyers’ Plan! If you’re like me, I had heard of the plan (HBP) but really had no idea how it could help me or how to use it.

What is the Home Buyers’ Plan?

The Home Buyers’ plan is an exception to the rules of withdrawing from RRSP’s to use toward the purchase of your home for first time buyers. Under the plan, you are eligible to withdrawal up to $25,000, tax free, from your RRSP.  Which means you don’t need to claim the amount of the withdrawal as income for that year and pay the tax as you would in a typical scenario. I look at it as if I simply loaned myself interest-free money from my RRSP.

Copy of “Homeownership isn’t a “special” interest. It’s a common interest.- (1)

In my situation, when I had found my little piece of (internet-less) paradise, my mortgage agent provided me with the form to complete and submit to my RRSP provider in order to withdrawal the funds under the plan. But, the form is available on canada.ca and is simple to complete.

Good news, no repayment instalment is due until the second year AFTER the date of the withdrawal. Which helps to take some of the load off in that struggling first year of home ownership.  With annual instalments, I have 15 years to repay the borrowed amount back to my RRSP.

So, If you’re in the market for you first home (YAY for you!) have a chat with your RRSP provider and take a look at the requirements and restrictions for the Home Buyers’ Plan. If you have any questions about buying YOUR first home, reach out to us at ray@eriesedge.com or 519-586-7922.

View These Homes Tomorrow!


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Your Local Real Estate Team will be busy tomorrow hosting 4 open houses at 4 beautiful properties. Get the details below:

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Step inside a charming Tillsonburg classic at 52 Washington Grand Avenue. Open house on Saturday, October 21 from 12:30 – 2pm.


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View a well kept property in a great Tillsonburg neighbourhood at 9 Greeneagle Drive.  Open house on Saturday, October 21 from 12:30 – 2pm.


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Take a tour of this Hayhoe built home at 42 McGuire Crescent in Tillsonburg. Open house on Saturday, October 21 from 2:30 – 4pm.


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Visit this country located home in Brownsville at 292325 Culloden Line.  Open house on Saturday, October 21 from 2:30 – 4pm.


Contact Your Local Real Estate Team for more details at 519-409-7653!



Why the New Mortgage “Stress Test” Will Stress Homebuyers Out

Why the New Mortgage “Stress Test” Will Stress Homebuyers Out
Huge changes to mortgage rules were announced earlier this week.
Yet another “stress test” will be applied to mortgages.  Currently, homebuyers who have carefully saved a downpayment of 20% or more aren’t required to purchase mortgage default insurance. Only mortgage consumers with down payments less than 20% require default insurance which costs anywhere from 2.80% to 4.00% of their mortgage amount.
However, new rules on mortgage lending take effect next year and result in a major decrease in affordability for responsible homebuyers.  Uninsured mortgages now require the minimum qualifying rate to be the greater of the five-year benchmark rate published by the Bank of Canada (presently 4.89%) or 2% (200 basis points) above the mortgage holder’s contracted mortgage rate.
So, what does this mean?  Let’s take a look at the numbers.
Bank of Canada Five-Year Benchmark Rate
The Bank of Canada’s current five-year benchmark is 4.89% which in this example is greater than the buyer’s mortgage rate plus 200 basis points.
A family with an annual income of $50,000, a 20% downpayment at a five-year fixed rate of 2.84% amortized over 25 years can currently purchase a home for $370,547.
Under new rules buyers will have to qualify at the five-year benchmark rate of 4.89% meaning that they will only be able to afford $301,095  A difference of $69,452.
2% Above Contracted Rate
 In a case where the mortgage rate, plus the 2% stress test is greater than the The Bank of Canada’s current five-year benchmark rate, here’s how the numbers add up.
A family with an annual income of $50,000, a 20% downpayment at a five-year fixed rate of 2.84% amortized over 25 years can currently purchase a home for $360,942.
Under new rules buyers will have to qualify at the five-year benchmark rate of 4.89% meaning that they will only be able to afford $295,350.  That’s a difference of $65,592.
If you’re in the market to buy a new home and would like to talk about these new mortgage rules and the current real estate market, we can be contacted at 519.586.7922 or stop by our office at 1019 Bay Street, Port Rowan.  All of our contact information is also available on our website at www.EriesEdge.com

Ray Ferris awarded FRI Designation

REALTORS® owe it to their clients to invest in professional development.” (1)

We are proud to announce that our Broker of Record and Owner of Erie’s Edge Real Estate has joined an elite group of real estate professionals who have earned the prestigious Fellowship of the Real Estate Institute (FRI) designation.

Ray Ferris recently achieved this advanced designation which is acknowledged by the real estate community as a demonstration of expertise and integrity.

Successful completion of several courses, comprehensive assignments and exams identifies professionals in the industry who put great value on continuing their education to better serve their clients and lead their teams.

Ray remarks that “The complexity of the modern real estate market combined with expanded legal obligations means REALTORS® owe it to their clients to invest in professional development.” 

With his clients in mind, Ray said that “REALTORS® are involved in transactions that have a high degree of emotional and financial risk and reward associated with them. This increases the need and expectation of a highly educated professional.”

Earning this designation, which focuses on high business standards, legal practices and ethical standards was not a requirement for Ray, but a choice. “As a Broker of Record, I feel it’s my obligation and responsibility to our firm’s salespeople, brokers, and of course our clients, to acquire and maintain practical skills and knowledge to navigate the intricacies of a constantly changing real estate market.” 

In a constantly changing and complex real estate market, continuing education is necessary for REALTORS®. “The extensive educational requirements to become an FRI signify a standard of excellence and accomplishment,” says Ferris.

Congratulations Ray!

Understanding Pre-Approvals… Blunt, for your own good!

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When you’re buying a house and have less than 20% down payment, your mortgage approval has 2 steps:

  1. The lender’s approval
  2. The Insurer’s approval. (CMHC, Genworth or Canada Guaranty)

Lender Approval

The broker and lender can do a PRE-APPROVAL, where they check your credit, crunch numbers and give an opinion of your chance of getting approved. They may ask for income confirmation upfront during this stage, you should provide it and have them review it.

A PRE-QUALIFICATION is when no credit check is done, the broker or lender is just looking at whether the income that you state you make, can support the amount of mortgage you would like. This is a BASIC review of your application, mostly of your income and other debt to see if you can afford a mortgage payment. It’s good for people who may be purchasing in the future. I do not recommend this if you are actively looking and planning to buy soon.

Insurer’s Approval

The Insurer (CMHC, Genworth, Canada Guaranty) does NOT do pre-approvals – this is because they are approving you AND the house you’ve bought. They can’t approve the house, unless you have an accepted offer. They reserve the right to “like the house”, and basically want to make sure you haven’t bought a shack that’s about to fall over. Make sense?

So, you may have a Pre-Approval but until you have bought the house, and the Insurer has reviewed the offer and the house, you DO NOT have an approval.

Once the insurer has reviewed your accepted offer and the house, they will issue a CONDITIONAL APPROVAL.

All approvals, every single one, is CONDITIONAL. 

This means: They will actually GIVE you the money once you meet the all the conditions outlined in the mortgage commitment (the approval on paper).

Conditions are ALWAYS:
  1. Proving that your income is what you said it was.
  2. Proving where your down payment came from.
  3. There may be other conditions such as selling your current home, paying off other debt etc.
  4. Whatever the conditions are: Know them and meet them in a timely fashion. Why? Because actually GETTING the money to pay for the house you just bought, depends on you doing this.

A few words about paperwork… once you’re approved, the lender has agreed to give you a whole wack of money $$$$$.

So… they have the right to ask you for paperwork, things like: employment letters, recent pay stubs, T4’s, tax returns, separation agreements, the list goes on and on. It’s nothing personal, it’s just the reality of getting a mortgage today. Family, friends, co-workers, neighbours, your dry cleaner and your cable guy will tell you that they didn’t have to do this when they got a mortgage. Tell them that’s because

the magical unicorn mortgage days are over. Just like the yellow pages, times have changed.

Here’s why:

  1. Our government says so and they regulate mortgages.
  2. That saying about a few bad apples spoil it for everyone applies to mortgages as well. If there is a rule, it’s a rule for a reason! You can vent to your broker, that’s ok! But in the end, working together to get things done is what’s going to get your money funded on your closing date. As I always say, hustle now and we can complain together later.

The Home Buying process can be stressful, not going to lie. The more educated and prepared you are, the better! Work with an experienced broker who will be blunt and protect you.

And most of all, keep a sense of humour! Life is too short, make boring stuff fun!

 – Carr

Thank you to our Guest Blogger

What You Don’t Know About Buying a Home

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Our REALTORS® have seen it all. Well, they’ve seen a whole lot when it comes to buying and selling real estate. Here are a few insider tips they’ve picked up along the way that you’ve probably never heard before.

1. Ask your REALTOR® how your offer will be presented.  Wouldn’t you want your REALTOR® to present your offer to the sellers personally rather than just emailing it to the seller’s REALTOR®?

2. Always assume that you are being recorded when viewing houses.  While not legal without your knowledge and consent, we know of situations where sellers have used listening devices to try to get the inside scoop on a buyer’s negotiating strategy.

3. Leave your SmartPhones at the door!  Without the seller’s permission, you’re not allowed to take photos in the home owner’s house.  Don’t risk breaking privacy laws.

Once you’ve found your dream home, don’t ’show your hand' on Social Media.4. Once you’ve found your dream home, don’t ’show your hand on Social Media.  Sellers and their REALTORS® might see your post and you may end up paying more as a result of what you said on Facebook.

5. Google the address of any house you’re interested in.  The history of your future home and neighbourhood are a simple search function away.  Try this … google cigar smoking ghost in Richmond Hill!

6. Are you receiving Customer of Client Service from your REALTOR®?  There’s a big difference and if you don’t know the answer to this question your REALTOR® may be obligated to tell the seller how much you’re prepared to pay.

7. The day that you become owner of your new home make sure that everything is in working order.  Crank the furnace and air conditioner, ignite any gas fireplaces, do a load of laundry if the washer & dryer were included.  If you discover something isn’t in proper working condition, the seller is responsible for repairing it.  However, if you discovers that something isn’t working beyond the closing day it’s probably your responsibility.

If you’re looking to buy in Norfolk or Oxford Counties, we’d love to be considered. Get in touch to see if one of us is the right REALTOR® for you.