Obtaining A Mortgage After Bankruptcy Isn’t As Problematic As You Think

Bankruptcy is on the rise in Calgary, with 8.5% more bankruptcies filed during the first quarter of 2019 compared to the same period of 2018. The Edmonton Journal reports that locals are finding it difficult to make ends meet and, as a result, are losing their personal possessions, including their cars and homes. But even if you do lose your home following your bankruptcy filing, it doesn’t mean that you can’t take out a mortgage and become a Calgary homeowner again in the future.

Get discharged 

In order to qualify for a mortgage so that you can purchase a home in Calgary, your bankruptcy will need to be discharged. This means that you will have met the terms of the discharge which typically include paying back some of what you owe. The Canadian government stipulates that if you have $200 surplus income per month, then 50% must be paid to your creditors. A bankruptcy of this type will typically last 21 months before the discharge is issued. By following the rules of your bankruptcy, you’ll show that you are responsible with your cash and want to pay back what you owe. At this point, avoid debt management companies as they have a high failure rate and can draw out your bankruptcy longer, thus preventing you from getting back on the property ladder.

Rebuild your credit 

Once you’ve been discharged for two years, you are eligible for a mortgage on your dream Calgary home. To ensure that it is a success, you’ll need to boost your credit. The longer you spend building your credit up, the better it will be when the time comes to apply for a home loan. Credit cards are a great way to improve your credit, but you must ensure that you are sensible with your lending and pay back the full amount every month, otherwise, you risk damaging your credit further. Ideally, two years’ worth of credit is required to get a competitive rate on your mortgage, but there’s no need to worry if you don’t quite make the mark.

Start saving 

As a general rule, you’ll need at least a 5% down payment on any property in Calgary that you wish to buy. Some mortgage companies will also consider you if you have a larger down payment but haven’t yet been discharged for two years or can’t show two years of credit. Either way, you’ll need to save hard if you want to put your bankruptcy behind you for good. One way to do this is to open a bank account which doesn’t have any fees and has a decent interest rate. Setting up a standing order so that a sizeable sum of cash regularly goes into the account is recommended, too.

Shopping for your new Calgary home 

When the time comes to shop for a new home, you need to carefully consider which type of property you require. Always ensure that you will be able to comfortably pay the mortgage repayments, household running costs, and additional expenses on the property that you’re thinking of buying. This may mean you opt for a property smaller than what you previously owned. A realtor which has a variety of properties on its books can offer a surge of advice and will happily discuss your requirements and show you multiple properties to help you find your perfect home. 

Many people think that when they’ve been declared bankrupt they can’t become a homeowner again. Thankfully, this belief is incorrect and it’s possible to obtain a mortgage and get the keys to a Calgary property within just a few years of bankruptcy occurring.

Who Pays The Real Estate Commission & Fees?

Follow the money and you get your answer. Lots of Realtors tell you the Seller pays the fees. Which is kind of true. But where do the sellers get the money to pay the fees and commissions? From the Buyer!

That's correct the Buyer pays 100% of all fees and commissions to the home seller as part of the total purchase price of the home.

Once the seller's lawyer has the money, the lawyer divides it up between the seller, the lawyer and the real estate brokerages.

In Calgary, it's very common to see listing agents charge home sellers 7% on the first $100,000 and 3% on the balance of the sale price. Then the listing agent offers 50% of that to a Buyers agent that brings a buyer into the deal.

Here's an example on a $650,000 sale of a home. $23,500 plus GST would come off the top. Leaving the home seller with $626,500.

The Real Estate Commission and Fees would be split between the Buyer's Realtor and the Seller's Realtor - $11,750ea.

The sellers Realtor would deduct all the marketing expenses and broker fees from their $11,750 and pay tax on whatever is left.

The buyers Realtor has no marketing expenses but has broker fees and taxes to pay on their $11,750.

Do You Need a Realtor To Buy or Sell A Home in Calgary? I say no, not really. All the information you need is on the internet.

What's not on the internet for you is My Real Estate & Business Experience!

Everything about everything is now on the internet. What cannot be put on the internet is the hands-on actual experience a person gets through years of doing. Doing and Learning. Learning and Doing it Better and Better.

The value I bring is My Experience. Whenever I have a gut feeling something is not quite right, I'm rarely wrong and save my clients from an unpleasant situations.

Calgary Realtors® must use the Residential Measurement Standard (RMS) when measuring residential properties. This measurement standard helps consumers easily and accurately compare different types of residential properties. This guide will help consumers understand the RMS, and how Alberta real estate professionals use it. Your real estate professional has a responsibility to ensure you understand the RMS and its implications and is required to discuss it with you. This discussion will help you make informed decisions about the size and suitability of properties.

Some Key Definitions

Grade: Grade is the level of the ground around the exterior of a residence. The grade can be horizontal, sloped, or a combination of both. In Alberta, most residential properties contain above-grade and below-grade areas.

Levels: Levels are areas of the residence that are in the same horizontal plane. A level must meet the minimum ceiling height requirement [2.13 metres (7 feet)] to be included in the RMS calculation.

Above Grade Levels: Above grade levels are the levels of a residence that are entirely above grade. The RMS area of a residence is the sum of its above-grade floor levels.

Below Grade Levels: Below grade levels are the floor levels of a residence that are partly or fully below grade. If any portion of the level is below grade, the entire level is below grade. Below-grade spaces include lower levels and basements. Below-grade levels are not included in the RMS area. Examples of residential styles with lower levels include raised bungalows, bi-levels, split levels, and properties with walkout or walk-up basements.

The RMS contains nine principles that real estate professionals must follow when measuring the size of a residential property:

1. Real estate professionals must use the RMS.

When a seller wants to communicate the size of their residence to potential buyers, or a buyer wants to measure a residence they’re considering, their real estate professional must communicate the RMS area. Real estate professionals are allowed to hire someone to calculate the RMS area of a property, such as property measurement companies or real estate appraisers. The real estate professional must ensure the person is able to competently measure the property using the RMS. If it is not possible to measure a residence, for example, the residence is not yet built or access isn’t possible because of a difficult tenant or a difficult foreclosure, your real estate professional may deviate from measuring the property using the RMS as long as:

• The measurements represented do not imply they are in accordance with the RMS

• They include an explanation as to why the property could not be measured using the RMS

• They must apply the RMS to blueprints

• They must disclose the measurement methodology they used (i.e. area size calculated by applying the RMS to the builder’s blueprints)

2. Identify if the measurement system is metric or imperial, and apply it consistently. Measurements must be calculated to within 2% of the RMS size.

Real estate professionals must indicate what measurement system they used to take property measurements (metric or imperial), and they must take all measurements for a particular property using the same system. The real estate professional must talk to about which measurement system is appropriate. In a lot of cases, a key factor in deciding which measurement system to use is which measurement system the real estate professional’s listing service or property database uses.
While the RMS provides a 2% tolerance, real estate professionals must attempt to measure the property accurately.

see the guide below for the complete RMS Guide

Unleashing Smart Home Energy Savings Without Compromising Comfort

We all love our comfortable sanctuaries. But what if there was a way to enjoy that snug ambiance while saving on your energy bill? Tinkering with the thermostat can help, but we're diving deeper. Discover an array of techniques that not only contribute to a greener environment but keep your pockets happy without compromising on comfort.

Discover Hidden Energy Guzzlers

• Battle the Drafts: Drafts sneak in, making your heating and cooling systems work overtime. Use a lit incense stick and watch its smoke. If it wavers near doors and windows, it's drafty there. Once located, use weather stripping or door sweeps to seal them. Not only will this tip reduce your bill, but it’ll elevate your home's cozy factor.
• Inspect the Attic: Think of insulation as your home's protective blanket. A spotty blanket won’t keep you warm, neither will patchy insulation. Regularly inspect for inconsistencies to ensure uniform coverage and an energy-efficient home.
• Embrace Technology: Upgrade to a smart thermostat that learns your schedule and adjusts accordingly. Imagine your home anticipating your arrival and adjusting to your ideal temperature just in time.
• Zone Your Home: Got rooms you rarely use? Close the vents in those spaces to redirect heating or cooling to areas you frequent. This targeted approach can dramatically drop your energy expenses.
• Solar Magic: The sun's a powerful, free energy source. During colder months, open curtains to invite warm sunlight in. In scorching summers, use light-reflecting shades to block heat, making your home naturally comfortable.

See the Transformation

Take the challenge: Implement these strategies and monitor your bills for the next couple of months. You'll be amazed at how these simple shifts can revolutionize your energy savings without trading off comfort. Because, after all, there's no place like a smart, efficient home!

Enhance Your Home's First Impression: Quick Curb Appeal Boosters

The first impression your property casts to potential buyers, known as curb appeal, holds immense power. A captivating exterior can magnetize buyers, making them eager to see what's inside, while a lackluster facade might have them speeding past. So, what can you do to ensure your home invites and captivates?

Clean and Refresh the Entrance

The gateway to your home, the main entryway, speaks volumes. Start by giving your front door a thorough wash. If it's aged or faded, consider a fresh coat of paint in a contemporary hue. Don't forget to sweep or power wash the front steps and walkway. This simple act can transform the overall ambiance of your home, making it more welcoming.

Shine Those Windows

Gleaming windows can instantly elevate the facade of your home. Clean your front windows to let in more light and brighten the home's exterior. Today, there are user-friendly washing products that connect directly to your garden hose, eliminating the need for ladders or strenuous scrubbing. Your local home improvement store can suggest effective options.

Tidy Up the Greenery

Lush, well-maintained greenery can be a home's crown jewel. Trim your hedges, shrubs, and bushes to give them a neat appearance. A pro tip for even trimming: Use a wide board or a cardboard piece as a guide. And of course, don’t forget to mow the lawn, removing any unwanted weeds or debris.

Assess and Adjust

Stand across the street and assess your home objectively. Are there any eyesores or potential distractions, like exposed garbage bins? If so, find them a new spot. Small changes can have a monumental impact on the overall appeal of your property.

Optimize Parking During Viewings

A seemingly minor but effective tip: Whenever there's a scheduled viewing, clear your driveway of vehicles. An empty driveway not only allows potential buyers to envision themselves residing there but also provides them with an easily accessible parking spot.

Remember, curb appeal is akin to a book cover. Make sure yours entices viewers to discover the story within.

Mastering the Home Hunt in the Midst of Chaos

Between work pressures, the challenges of home-schooling, and daily tasks like groceries and laundry, life's pace can feel dizzying. Amidst this whirlwind, how can you even think about finding your dream home? Fear not! With strategic steps, you can streamline the process and find your haven without missing a beat in your hectic schedule.

Streamlined Home-Buying for the Super Busy:

Here's a tailored approach for those who are time-pressed:

• Clarify Your Vision: Start with a crystal-clear vision of your desired home. Instead of a generic "house", think in terms of specifics like "a detached two-story with a spacious backyard" or "a condo with a sunset view". Factor in essential criteria such as the number of bedrooms, bathrooms, and any special amenities you desire.
• Zone in on Your Ideal Locations: Instead of being open to any area, concentrate on specific neighborhoods that align with your lifestyle and daily commute. This precision saves you from unnecessary detours to listings that aren’t geographically desirable.
• Financial Readiness: A pre-approved mortgage can be a game-changer. Not only does it give you a clear budget, but it also strengthens your bargaining power and accelerates the purchase process.
• Efficient Home Viewing: Prioritize home viewings amidst your busy week. Utilize online resources like photographs and virtual tours to pre-screen properties. Allocate dedicated slots in your schedule, perhaps a weekend morning or weekday evenings, ensuring you remain focused during these tours.
• Be Comprehensive in Your Exploration: Make the most of each viewing. Carry a notebook to jot down impressions, ask in-depth questions, and explore the home and its surroundings thoroughly. Aim to gather enough insights to avoid the need for multiple visits.

The secret weapon in your home-hunting quest, especially when time is of the essence? A seasoned real estate agent. Their market insights, property shortlists, and negotiation skills can slice through potential hurdles, making your search efficient and effective.

Ready to embark on the journey to your next dream abode? Let's chat and make your vision a reality.

Boosting Your Home's First Impression: Elevate Your Curb Appeal

It's often said that first impressions last, and this is especially true when it comes to real estate. As prospective buyers approach your home, their initial view—the curb appeal—sets the tone for the entire visit. A captivating exterior can captivate them, but a lacklustre one might overshadow even the most impressive interiors.

Here are six cost-effective ways to enhance your home's curb appeal and create an inviting first impression:

1. Refresh Your Driveway: Sealcoating your driveway not only protects it from the elements but also gives it a rejuvenated, almost-new appearance. It's an affordable alternative to repaving, instantly boosting the overall look of your home.
2. Crystal Clear Windows: Clean, gleaming windows can dramatically elevate your home's appearance. Modern window-cleaning solutions, available at many home improvement stores, can attach to your hose and make the task more manageable.
3. Landscape Touch-Up: Think of it as grooming for your yard. Regularly trimming hedges, and shrubs, and maintaining flower beds can drastically change how your home is perceived. Add some blooming plants for a dash of colour and vitality.
4. Revitalize Your Front Door: Your front door is more than just an entrance—it's a focal point. A vibrant coat of paint can breathe new life into it, ensuring it captures attention for all the right reasons.
5. Upgrade Your Garage Door: Given its size and visibility, your garage door plays a pivotal role in your home's curb appeal. A fresh coat of paint or even some minor upgrades can significantly improve its look, positively influencing the entire home's facade.
6. Declutter the Exterior: View your home from a passerby's perspective. Remove any items that detract from its charm, such as visible garbage bins or unused garden tools. A tidy exterior suggests a well-maintained home.

In the competitive world of home sales, it's vital to put your best foot forward, starting right from the curb. With these tips in hand, you can ensure that potential buyers are drawn into the beauty of your home, rather than deterred by its exterior. Let your home tell a compelling story, starting from the very first glance.

First Time Real Estate Investors Start Here!

If you are thinking about investing in Real Estate for the first time I encourage you to think about the monthly income from the property first.

You need a monthly rent cheque to pay the mortgage, property taxes and property insurance as the basics.

If you take one step back from a monthly rent cheque, you need somebody to give you the rent cheque in exchange for the use of the property.

So perhaps before you run out looking at properties you should give some thought to tenants. Who are they? Where do they live now? What kind of jobs do they have? Where do they work? Are they new to Calgary, new to Canada, first-time renters, or long-time renters? How do you find them? How do you avoid bad tenants? How do you pick the best tenants? How do you treat your tenants after they move in?

For Rent ads and signs attract people who need to rent a place to live. The quality of ads and signs has a direct effect on the quality of tenant applications. You are never obligated to rent to anyone who applies. It’s your choice and the simple answer to anyone you do not want to rent to is “We’ve Decided to Rent to Someone Else”.

When you take the time to learn how to attract great tenants you will get great tenants. If you are a lazy landlord willing to take the next person who comes along with a good story to tell and a cheque in hand you will get burnt 9 times out of 10. Bad tenants can spot a lousy lazy landlord very easily.

Let’s get back to the Monthly Income a property will generate. Today, Nov 23, 2016, in Calgary on Rentfaster.ca there are 7,629 total rental listings that include apartments, basement suites, condos, duplexes, houses, lofts, main floors, townhouses and shared accommodations.

There are houses for rent in Calgary right now starting at approximately $1,200 a month on Rentfaster.ca. Today in Calgary there are 354 MLS-listed homes from $300,000 to $400,000 that would rent from $1,200 to $1,800.

If you take the low-end rent of $1,200 and deduct $300 for taxes and insurance you would be left with $900 to make a mortgage payment in a break-even scenario. Using my Canadian Qualifier Mortgage Calculator, I enter $900 as a payment amount, 2.5% as the interest rate and 25 years as the term and when I press the Loan Amount button it tells me that $900 a month will carry a $200,908 mortgage loan.

So, on a home that costs $300,000, you would need to put down $100,000 and rent it for $1,200 a month to break even on the monthly cash flow. You would however be making close to $500 a month from the paydown of the mortgage. The change in value of the property goes up and down over time and only matters when you sell or refinance to take some profits out. Even at this break-even scenario, you would get a 6% return on your $100,000 investment. When rents go up and property values increase the return gets even better.

When was the best time to invest in Calgary Real Estate? Anytime before today. When is the second-best time to invest in Calgary Real Estate? Today!

Feel free to contact Jerry Charlton at 403 831 0842 for more information.

Discover Your Dream Home Faster with Our  MLS® System

Unlock Early Access to Calgary's Latest Property Listings

Are you tired of discovering your dream home online, only to find out it's already been snapped up by another buyer? By the time many homes appear on public websites, they've already been viewed and shortlisted by realtors and their in-the-know clients. With our MLS® System, you get early access, ensuring you're ahead of the crowd.

The Power of Priority Access

Every home listing starts its journey in the MLS® System before making its way to public sites like www.JerryCharlton.com. This crucial head start can be the difference between securing your dream home and missing out. In real estate, timing is everything, and with our system, you're always at the front of the line.

Customize Your Home Search Experience

Whether you're particular about location, size, price range, or all of the above, our MLS® System tailors your search to match your unique criteria. You'll receive instant notifications about fresh listings that fit your desires – often before the 'For Sale sign even graces the front yard!

The Secret Behind Fast-Selling Homes

Ever wondered why some homes never even appear on public sites or are labelled 'sold' as soon as they do? The finest homes, priced just right, get sold in a flash. They're often discovered and secured by those privileged with early access, like our MLS® System users.

Gain the Advantage with Our Exclusive Auto-Search

Stay ahead of the curve. When you're ready to embark on your home search journey, our Auto Search feature ensures you're the first to know about the latest listings. And the best part? You can set up multiple search criteria, toggle them on or off at will, and always remain in control. Plus, there's no obligation to buy; it's a risk-free, hassle-free experience that puts you in the driver's seat.

Enjoy seamless browsing on all devices, from mobile phones to tablets. Elevate your home search experience and never miss out on your dream home again.

Boosting Winter Curb Appeal: Tips for Calgary Home Sellers

While Calgary's snowy winter might seem like a challenge when selling your home, with a little effort and creativity, you can make your property stand out in a winter wonderland. Presenting a home that's both inviting and well-maintained during the colder months can leave a lasting impression on potential buyers. Here are some steps to elevate your home's winter curb appeal in Calgary.

1. Keep Walkways Clear

Safety first! Ensuring all paths, driveways, and sidewalks are clear of snow and ice is essential. Regular shoveling, paired with the application of eco-friendly de-icing agents, can prevent slippery surfaces and demonstrate attention to home maintenance.

2. Illuminate Your Home

With shorter days during the winter months, lighting becomes even more crucial. Illuminate walkways with pathway lights, and ensure exterior lights are bright and functional. Consider adding tasteful seasonal string lights to give your home a warm, festive glow.

3. Seasonal Decor

While you might want to avoid overly religious decorations, embracing the winter spirit with wreaths, winter planters, or even elegant snowflake decorations can add charm to your home's exterior.

4. Maintain the Landscape

Even when your garden is buried in snow, maintaining a neat yard is essential. Trim any overhanging branches, ensure fences are in good repair, and remove any leftover fall debris. Remember, buyers might be imagining your yard in all seasons.

5. Showcase Winter Features

If your home boasts features beneficial during the winter months, like a heated garage or energy-efficient windows, make sure to highlight these to prospective buyers. It showcases the home's year-round appeal.

6. Add a Splash of Color

The winter palette can sometimes feel monochromatic. Brighten up your entrance with colorful winter-hardy flowers like pansies in pots or planters. A vibrant front door can also be a captivating focal point against a snowy backdrop.

7. Regular Home Maintenance

Winter can be hard on a home's exterior. Regularly check for signs of wear and tear, ensuring gutters are clear and the roof is free from potential ice dams. A well-maintained home exterior indicates a cared-for property, increasing its appeal to buyers.

8. Create a Cozy Atmosphere

While not strictly curb appeal, ensuring your home feels warm and inviting as potential buyers enter can leave a positive, lasting impression. Keep the thermostat at a comfortable temperature, and consider the inviting aroma of fresh-baked cookies or a pot of apple cider on the stove.

In conclusion, while winter might seem like a challenging time to sell in Calgary, with a little effort, you can make your home stand out and appeal to potential buyers. Embrace the season, highlight your home's winter-ready features, and create an inviting atmosphere both outside and in.