Interest Rate Reductions and Unknown Impacts/Options

With the Bank of Canada (BOC) reducing the prime rate to 3.75% a lot of us are breathing a sigh of relief as we the cost of borrowing trending in the right direction.  However, there are some impacts that some people don’t know and it could impact them and their families.

First, if you signed up for a fixed rate mortgage in the last couple years this rate reduction won’t impact your mortgage rate at all.  Before you rush out to try and renegotiate your mortgage you need to ask about what the penalty is to break your fixed mortgage.  In most cases the penalties are really steep and wouldn’t make much sense.  HOWEVER, now that rates are coming down perhaps you could explore a Home Equity Line of Credit (HELOC).  Why am I talking about a HELOC?  Well most mortgages will allow you to have some sort of prepayment that goes directly to the principle.  These can be monthly, quarterly or annually.  Once you know what you are allowed to do here is one scenario that could help you save money.  If you have access to a HELOC and if the rate is less than your mortgage and if you are allowed to put some money directly on principle you take some money from your HELOC and put it against your mortgage principle.  This may allow you to really impact your overall costs even if you can’t break your mortgage with a higher rate.  Now, I’m not your financial advisor and I don’t know your situation so you MUST talk with your financial advisor before doing anything.  You have to know your numbers and what makes sense for you.

The Interest rate reduction will allow you to pay less on your HELOC so this is also an opportunity to look into debt consolidation specifically any high interest rate credit cards, car loans etc.  Credit cards are normally 21%+  and car loans are usually 7%+.  So, if your HELOC is now at 5.75% that is a lot better than those higher rates.  With everything getting more expensive over the last few years keeping more money in your pocket is always better than in the banks or government.

Again, these are only a couple of options and the best person to speak to is your financial advisor.  If you don’t have one just let me know and I can offer a few suggestions for you.

Selling in Spring? What you need to do now!

With interest rates going down and another one coming in December Buyers will be more active in the spring, which by the way, starts in March not end of April.  Why do I say that? The longer you wait to list your home the more competition there is.  Meaning more sellers will also be listing their homes in Spring and while there will be more buyers there will also be a lot of sellers this coming spring.  So, to maximize the profit you can make on the sale of your home here is what you need to do:

1. Plan to list sooner than everyone else to limit the amount of competition. Yes, I know your property may look better when all the flowers are blooming but if you have any pictures of your back yard or front flower beds we can use them in the listing.  Buyers, looking at those pictures can visualize what it will look like.  You will have a better chance of selling quickly and top dollar when there is less competition.

2. Start decluttering now. I’m not saying giving your old food processor as a Christmas gift however now is the perfect time to go through your things and find what you could donate, rehome or just throw out. The sooner you start this process the easier it will be as you get close to list your home. It also feels really good.

3. Talk to a real estate professional like myself to go over what will make a difference in maximizing your selling price. For example, painting is the cheapest way to add $10k to $20k in value to your home.  If your home is more dated it could be worth it to do some small renovations. Buyers don’t have a lot of extra money outside of their mortgage for renovations so more an more Buyers are looking (and paying for) a move in ready, renovated home.  So, they would rather pay more for a home that is already renovated…and they are doing that. I had a client pay $40k more for a townhome that was fully renovated than the exact same townhome that just needed some flooring and a coat of paint.  Total cost of approximately $10k.  I had the painters and flooring contractors ready to go. However, she paid $30k more than what she needed to in order to save the hassle of the renovation.

4. Now is the time to start looking for where you want to live.  Take the time to take drive and explore the neighbourhoods you are interested in.  Grab a coffee, walk the streets, look at the grocery stores, etc.  Narrowing down the areas you are looking at will also make things easier find the right home for you.

Being ahead of the rush will allow you to have the easiest sale for the most money making your life more enjoyable and allow you to start the next chapter and turn the page.  Selling your home is never a fully stress-free process but working with the right agent and getting a head start definitely makes things easier.

Who is Neil O’Donnell??

I’m your neighbour, I live here and enjoy our little town just like you.

I live over on Lakeside Dr and my wife and I’ve been in this area for over 22 years.  You could have seen me going for a walk in our neighbourhood, having breakfast at Mama’s (Grimsby Sub Shop) or at JJ’s on the Docks or just running errands all over town.  If you’re ever out and about and see me please say hi…just know that as an Irishman I do like to talk 😊

My wife works at our local hospital and has been there for over 25+ years and if you have ever been to West Lincoln Memorial there is a very good chance you’ve already met her.

In the years I’ve been here I was a kids football coach for 9 years while my kids played and I’ve also spent more than enough time at the Peach King watching my kids playing hockey.

Before finally settling here in Grimsby I was born and raised on the edge of the Muskoka’s where my father built custom homes and that is where I got my love of all things Real Estate.  The last custom home I built was in 2017 just outside of Vineland in Jordan Station. Having a background in construction really helps my clients as I can usually spot issues with a home/property before you get to the home inspection state.  Also I have a large group of professional trades people that I have used personally and professionally so if you are doing almost anything around your home I have someone that I could recommend if you need some help.  Please just let me know.

I volunteer with the Local Air Cadets, which is an amazing program, and I highly recommend it to anyone with kids between the ages of 12 and 18, and I belong to the Grimsby Curling club.  Speaking of Cadets, you will see them selling Poppies shortly and I hope you can help them and support our veterans.

When it comes to Real Estate I’ve been in and around it since I was a kid learning at my father’s side.  However, the actual trading in Real Estate as a agent/broker has been over 10 years now.  Everything from your personal family home, investment properties, vacation/cottages, farms, beautiful estate properties and Commercial business/properties.  

While my office is located in Oakville and I live here what that allows me to do is to help clients selling in the GTA and find properties down here in Niagara.  I just recently helped a client sell his Condo on Lakeshore in Oakville and is now looking here in Niagara.  For my clients here having my colleagues in the GTA allows me to market your home locally but also throughout the GTA to over 90,000+ agents and their clients.  Living in Grimsby allows me to be approximately 30-40 minutes to almost everywhere on the Niagara Peninsula which has seen my business grow so that half of my business is on the Niagara side and the other half is the Hamilton/Toronto side.  

I’ve helped my clients sell their properties here and move out East and West connecting them with great trustworthy professionals in Nova Scotia, New Brunswick, BC and Alberta.  I even helped a client sell their parents home in the Windsor area where I partnered with a local agent while I marketed the home here and the GTA to get the most amount of exposure.  

What you may not have noticed is that I don’t have my face plastered on billboards and I won’t cold call and disturb you while your having dinner.  That’s not who I am.

Grimsby is where I call home and as much as I would love to meet everyone, I’m sure I won’t be able to.  However, I would really enjoy meeting as many of you as possible.  So, I hope that if you see me around town that you would please say hi!  If you are thinking about either buying or selling or if you would just like to know what your property is worth, please let me know and I would be happy to have a conversation.  

Thanks again for your time and its been a pleasure to ‘introduce’ myself and I hope you have a great day!  😊