Unimor Capital Corporation

Tag: House

The 10 Best Organizational Tips
Getting your home organized can be very overwhelming. We don’t all have the time, patience, or dexterity to fold our shirts origami style or put our books in rainbow order and we can’t all live in a stoic concrete box like Kim Kardashian. Don’t get me wrong, I love a good pantry organizing TikTok as much as the next mom, but when it comes to organizing my home, I need a happy medium.

If you’re not ready to go full Marie Kondo minimalist, fear not, I’m with you. I like order and organization, but you know what else? I like my stuff. In this post, I’m sharing the tips and products that have helped me make our home more organized and, most importantly, more functional.
1. When in doubt, label it.
  If I had a dollar for every time I got asked, “Where is the [ITEM]?” or “Is this the right [ITEM]?” A label maker can help everyone find what they need, especially if you’ve removed items from their original packaging after watching one too many TikToks.
1. Tackle the “junk drawer.”
  We’ve all got one. That drawer in the kitchen or office that just seems to be a magnet for anything and everything. But taking the time to organize it with some small bins or containers will make it much easier to navigate going forward.
1. Invest in the right storage options.
  Walking into one of those organizational stores, I’ll always run the risk of blacking out and buying everything. Do I need to decant all of our cereal? No. But choosing the right options to store valuables like fine china, holiday decor or keepsakes is worth it. Measure your shelves and spaces before you go so you have an idea what will fit.
1. Choose “functional” over “pretty.”
  If you spend hours, days or weeks making your home look pretty but then you can’t find anything, you’ve defeated the purpose. I’ll go back to the rainbow books option — it looks amazing, but I can’t always remember the color of that cookbook I need.
1. Utilize dead spaces.
  There are probably lots of dead spaces in your home just begging to be used. Hang a shelf above a bathroom door for linens or tuck a rolling shelf between the refrigerator and the wall. Every bit of space can be utilized, you just have to get a little creative.
1. Create zones.
  With so many of us working from home now, the areas of our home may be blurring together. That’s why it’s important to create work, dining, and hangout zones. Designate a zone for dropping bags and shoes and one for all of your home’s cleaning supplies.
1. Think “up.”
  Get things off surfaces like countertops and the floor as much as you can. Hanging baskets, shelves and over-the-door organizers can help you lift the clutter away and to whomever created those sticky strips that don’t damage walls, I raise my glass to you.
1. Keep the important things together.
  Essential items like keys, bills and other notices should always be easy for everyone to find. Choose a place you all pass by daily to keep the mail, hang a calendar for managing schedules and add a board for reminders and notes.
1. Make your wardrobe visible.
  If you can’t see it, you probably won’t wear it. Spending the time to organize your closet will save you time and money down the road. Group like items together and think of a system that works for your lifestyle — if you pretty much always wear pants and a sweater during the week, put those items near each other. I also like to do a seasonal cleanout. Once a season has ended, if you haven’t worn something, it’s time for it to be donated or sold. One way to gauge what you’re actually wearing is to wrap an elastic around each hanger in your closet. Once you wear something, remove the elastic. Any elastics left at the end of the season will be easy to spot.
1. Hide those cords.
  Exposed electric cords are like nails on a chalkboard for me. If I see one, I can’t stop staring at it. Cord hooks and management boxes can help you hide the clutter and be sure to use power strips with surge protectors when you can for added safety.
~ Kim Holderness
February 1, 2022
Fixed Rate vs Variable Rate Mortgages: Which Should You Choose?

One of the biggest decisions you’ll face when getting a mortgage is whether to choose a fixed or variable rate mortgage. At the moment, it’s hard to go wrong with either one. After all, mortgage rates in Canada are at historic lows. But the type of mortgage rate you choose is something you should spend some time considering, as the best choice depends as much on your individual circumstances as it does on any economist’s interest rate outlook.

What is a Variable Rate Mortgage?
A variable-rate mortgage is a mortgage linked to the Bank of Canada Prime Lending Rate and fluctuates during the mortgage term. You can obtain an open or closed variable rate mortgage, but the most common term is a 5-year variable closed.

For example, at the time of this writing, the Bank of Canada Prime rate is 2.45%. If a variable mortgage were priced at Prime -.90%, your interest rate would be 1.55%. If Prime were to increase by 0.25% to 2.70%, then your mortgage interest rate would rise accordingly to 1.80%. Even though variable mortgage rates fluctuate during the term, the monthly payment remains the same.

What is a Fixed Mortgage Rate?
A fixed mortgage rate stays fixed for the length of the mortgage term. It’s available in terms ranging from 6 months to 10 years, although the most popular term is a 5-year fixed rate. Unlike variable rates, which move with the Prime Lending Rate, fixed mortgage rates follow Canadian bond yields.

Fixed rates are usually higher than variable rates, with the higher rate trade-off being cost certainty. Fixed-rate borrowers are willing to pay a premium to lock in their rate for a specific time period. Banks price fixed rates higher than variable rates because they present more risk to the mortgage lender due to the rate commitment made to the borrower.

A History of Fixed vs. Variable Mortgage Rates
If you look back at the past 20 years or so, variable mortgage rates have been consistently lower than fixed rates with only a couple of exceptions. This might make it seem like choosing a variable rate would be a no-brainer, but it’s not so clear-cut. At the moment, both types of mortgage rates are at historic lows, and the gap between them is very narrow. So, there are fewer savings to be had by going with a variable rate mortgage, while the risk of rising interest rates remains.

Reasons to Choose a Fixed Mortgage Rate
Here are three reasons why you might want to choose a fixed-rate mortgage:

1. You expect interest rates to rise.
While no one knows when the prime rate will rise and fall or by how much, the economy can provide signals that rates may be headed upwards or downwards. If you anticipate that mortgage rates may be on the way up and you can secure an attractive fixed-rate, all things being equal, it might be your best choice.

2. You have limited budget flexibility.
Perhaps you’re buying your first home, or your affordability has been stretched with the mortgage you’re taking on. If you lack the flexibility in your budget to handle a sudden increase in your mortgage payment, your best option is to choose the certainty of a fixed-rate mortgage.

3. You are a risk-averse by nature.
Regardless of your financial position, if you are risk-averse by nature and having a variable interest rate will cause you sleepless nights, it’s not worth the hassle. Go with the fixed-rate mortgage.

Reasons to Choose a Variable Mortgage Rate
Sometimes a fixed rate is the way to go. But here are four reasons why a variable mortgage might be the right choice:

1. You expect interest rates to fall or remain flat.
A variable-rate mortgage could be the best choice in a period of a stable or falling prime rate, even if it’s only slightly lower than the going fixed rate because the terms of a variable mortgage are generally more flexible than those of a fixed mortgage. (see #4)

2. You have plenty of budget flexibility.
The numbers don’t lie. Over the long term, you’ll be ahead of the game by choosing a variable rate. But there’s some risk involved. If your cash flow situation is good and you can withstand the potential of a sudden increase in your mortgage interest costs, a variable rate could be worth the risk.

3. You are risk-tolerant by nature.
If you are a person who can handle a fair amount of risk, then you probably have the fortitude to handle the potential ups and downs of a variable mortgage, all things being equal.

4. You Plan to Sell Your House
One of the biggest drawbacks of a fixed-term mortgage is the potential for astronomical penalties, should you decide or be forced to move in the middle of your mortgage term.

Fixed-mortgages can be subject to something called an Interest Rate Differential charge or IRD. Variable mortgages are usually only subject to a more predictable 3-month interest penalty if the borrower breaks the mortgage early. So, if you think that you might move before the end of your mortgage term, the variable rate is probably a safer bet. You could opt for an open mortgage to avoid the penalty, but the interest rates will be far higher.

How to Reduce Variable Rate Mortgage Risk
If you opt for a variable rate, you are assuming some risk if interest rates rise suddenly in the middle of your term. Yes, there is the option of converting to a fixed rate, but that forces you to try and time the market, and that’s not likely to end in your favour.

You can reduce the risk of a variable mortgage by increasing your monthly mortgage payment amount to match what you would be paying with a higher fixed rate. For example, let’s say you have a choice between a variable rate mortgage at 1.75% with a monthly payment of $1600 and a fixed-rate mortgage at 2.25% with a monthly payment of $1685.00.

You could opt for the lower interest rate but increase your monthly payment to match the fixed-rate payment of $1685.00. This will increase the amount of money going towards your principal, increasing your interest savings, and providing you with a buffer should interest rates rise.

The Bottom Line on Fixed vs. Variable Mortgage Rates
There is no shortage of prognosticators ready to tell you that a fixed or variable rate is the best choice. They always seem to know what’s going to happen in the future. However, the truth is that no one knows exactly where interest rates are headed. There are far too many unknown variables that can alter the course of the economy. For example, how many rate forecasters saw COVID-19 coming at the outset of 2020.

The bottom line is that choosing a fixed or variable rate has as much to do with your individual circumstances, such as your long-term plans, budget flexibility, and your personal risk tolerance level as it does with the cold hard numbers.

January 17, 2022
COVID-19: Should You Buy a Home Now, or Wait?

Housing markets across the country are changing swiftly—but with interest rates at historic lows, this might be a good time to buy. Here are all the factors to consider.

It almost goes without saying that COVID-19 has had a far-reaching impact on the Canadian economy and healthcare system in the first half of 2020. As expected, the spring housing market was much cooler than 2019, with the Canadian Real Estate Association (CREA) confirming that May 2020 recorded the lowest volume of sales in May since 1996. Despite the significant drop in sales volume due to the pandemic, though, national home prices remained relatively stable.

After a quiet April, market activity began to pick up in local housing markets across the country in May: more buyers resumed their home searches, and more sellers began to list their homes. With more home buyers and sellers hopping off the sidelines, housing competition is starting to heat up in many regions. In Toronto and Vancouver—Canada’s largest markets—demand and supply were evenly matched in May, whereas in Southern Ontario markets like Ottawa and Hamilton-Burlington, buyers faced ever fiercer competition for available homes than last year.

Given how swiftly conditions have changed and continue to evolve in housing markets across the country, prospective home buyers may be wondering: Is now a good time to jump into the market? Perhaps. With interest rates at historic lows, if you are able to buy and hold a home for the medium to long term, this might be a good time to buy. Here are all the factors you should consider as you make your decision.

Account for your finances and your lifestyle needs.

For many Canadians, finances are just one part of the story, and the decision to buy a home often goes beyond the dollars and cents. To put it simply, people need to make changes in their lives and move—regardless of whether there is a pandemic or not. If you have done the math and are confident about your financial ability to carry a new home, this is a great opportunity to take advantage of low interest rates.

Consider why you want to buy in the first place.

Perhaps you’ve had a relationship or family change; a divorce or a baby on the way are common reasons people choose to move. Alternatively, do you want to be closer to family, in a good school district, or have better transit access? If you started planning a move before the pandemic, consider whether and how COVID-19 has altered these priorities.

Once you’ve determined why you need to move, consider how your lifestyle needs may evolve. After all, you will be living in the home you purchase for at least a few years, so you need to think about whether the home you buy is a fit for your needs both today and tomorrow. If you can find what you want, in the location you desire, and are comfortable living there for at least five years, take the leap.

Get local with market data.

When you’ve made the decision to move forward with a home search, you’ll likely turn your attention to how the housing market is performing. After all, buying a home is a major personal commitment, and also one of the biggest financial investments most people will make. With everything going on, in addition to sales updates from national and local real estate boards, a number of Canada’s most established financial institutions, economists and housing corporations have attempted to predict the size and duration of the impact of COVID-19 on the housing sector.

While high-level data from real estate boards and financial institutions can provide valuable perspective on how the housing market is performing at the macro-level, real estate is hyper-regional, and in many respects, local. The type of property, the neighbourhood you’re interested in, and your budget will all play a role in the level of competition you’re likely to face and ultimately the price you can expect to pay.

Working with a real estate agent you trust is one way to cut through the noise and understand how far your dollar will go in real estate based on your situation and your needs. A good real estate agent acts as a trusted expert who can provide you with the facts, data and insights that are most relevant to your purchase decision, so you can make an informed choice that you are comfortable with now and in the future.

Remember that real estate is a long-term decision.

Finally, remember that real estate is a long-term investment. If you are looking to make short term, speculative investments, this is a particularly risky time to do that in real estate. Further, churning real estate has real costs that eat into any sale price, which include but aren’t limited to land transfer taxes, realtor professional fees and moving costs.

Once you’ve carefully weighed your personal needs against your financial appetite and obligations and have also considered the context of the real estate market in your area, take the plunge if you’re confident that everything lines up. If you can buy and hold for the long term, there are some great pockets of opportunity out there.

July 15, 2020
10 Spring Cleaning Tips
As the days get brighter, you’ll see dust and dirt that went unnoticed during winter. Luckily the long spring evenings are perfect for an extra bit of cleaning, and our top 10 spring cleaning tips will help get you going.
1. Declutter First
Every six months or so, you should take some time to declutter your home. Before your spring clean is an ideal time for this job. Gather any old, unwanted or broken items such as clothes, bed linen, books, toys, ornaments, and even furniture. Sort everything into piles for recycling, charity and storage. You’ll feel great after this therapeutic exercise, and your home will already be looking tidier.
1. Prepare Your Kit
Before you get down and dirty, make sure you have all the cleaning supplies you will need on hand. Essentials include rubber gloves, cloths, sponges, brushes, bleach, all-purpose cleaner, furniture and glass polish, garbage bags and paper towels.
1. Work from the Top Down
Always clean from the ceiling to the floor; first tidying, then dusting along the ceiling, light fixtures, pictures, etc…, finally vacuuming and mopping the floor when everything else in the room is done. This just makes sense because the earlier jobs will of course dirty the floor. You may also find it makes your work seem that bit easier and more productive if you finish either the downstairs or the upstairs completely before starting the other.
1. Leave Windows for a Cloudy Day
Wait for a cloudy day to wash your windows, as direct sunlight can dry windows too quickly leaving streaks behind.
1. Don’t Forget the Fridge
The best time to take on the task of cleaning your fridge and freezer is right before you do your grocery shopping, when the contents are at their lowest. Take everything out and dispose of any items that have passed their use-by date, and almost-empty items that you will never use. Look out for opened jars and bottles which state on the label that they should be used within a certain number of days after opening. Wipe down the interior of the fridge with a damp cloth and disinfectant. The same can be done for food cupboards if you think it’s needed.
1. Cleaning Curtains & Blinds
Curtains and blinds are usually neglected in routine cleaning sessions but can collect a surprising amount of dust and dirt. Some curtains can be machine washed or dry cleaned; always check the care label and follow the instructions provided. Most vacuum cleaners come with a small nozzle with a short brush built-in that is ideal for vacuuming curtains and fabric blinds. Remember to vacuum both sides to remove as much of the dust as possible. Steam cleaners are ideal for giving curtains and fabric blinds the most thorough clean. Wooden, metal or plastic blinds only need to be wiped down with a dry cloth, or with a suitable cleaner.
1. The Best Oven Cleaning Method
The oven is the heart of the kitchen, but months of roasting and baking can make it grimy and smelly. Begin by removing all racks and placing them in a mixture of hot water and either oven cleaning solution or dishwashing liquid. Allow them to soak while you clean the inside of the oven with oven cleaner. Always follow the manufacturer’s instructions when using oven cleaner, as it contains powerful chemicals. Scrub the racks clean, rinse and dry. Make sure to clean off all cleaning chemicals from the oven walls and racks before using your oven again.
1. Mattress Cleaning & Care
Remove all bedding and use a vacuum cleaner to remove dust and hair that has accumulated over time. Spot clean any stains with a stain remover and damp cloth. Sprinkle a light layer of baking soda over the mattress and let it sit for at least a couple of hours. The soda will absorb any moisture and leave your mattress smelling fresh. Remove the baking soda with a thorough vacuuming. Every three months, flip your mattress and switch it from head to foot and vice-versa to help it wear evenly and prolong its lifespan.
1. Freshen up Your Rugs
For a beautifully fresh smelling home, it is important to think of things like rugs which can really hold onto odours if not cleaned once or twice a year. Hang your rugs out on a washing line and use the handle of a sweeping brush to beat them. This will remove the bulk of the debris, dirt and dust that gets embedded in the fabric. Take the rugs back inside for a good vacuuming to remove any fine dust, before applying a carpet shampoo to get them like new again.
1. Delegate!
There are some jobs where you can put your feet up and let someone else do the work, safe in the knowledge that you’re doing the right thing. Examples include window washing and chimney cleaning. Spring is the ideal time for both, and sometimes specialist equipment, experience and skill is needed to reach those upstairs windows or the chimney pot.
April 2, 2018
How to Make Smart Home Renovations

For a good ROI on your house consider this advice from the Canadian Appraisal Institute on how to make smart home renovations. It’s been said before: We are the generation of renovation. Ask any friend and I bet my lunch that almost all of them have either done or will be doing a renovation.

There are two main reasons for renovating. The first is to improve your current home, based on your own personal needs (not wants, needs). This is the primary reason to justify expensive projects, such as adding a second-story addition, finishing the basement, or extending the kitchen. It’s a renovation that will require a lot of work, money, and inconvenience, but will allow you and your family to enjoy the home more fully in the up-coming years.

The second reason people use to justify a renovation is that they are adding value to their home. This is a problem. Evidence shows that it’s a lot easier to justify spending money if you think you’re getting a rebate and convincing yourself that your $15,000 bathroom remodel will add $20,000 in value to your home is the psychological version of a rebate. The big problem with this is that people will then use these mental gymnastics to justify financing a renovation—and take on debt today, in order to increase your home’s value tomorrow is not financially savvy.

For those savvy enough to understand that a home renovation isn’t an investment, here’s a few tips on how to plan a smart renovation. According to the Appraisal Institute of Canada (AIC) homeowners should follow these 4 general tips when renovating:

#1. Choose improvements with long life expectancy

These are the less-than-sexy remodel jobs, such as new roofing (every 15 to 25 years for asphalt tile), a new furnace (every 10 to 15 years), or a new A/C unit (every 10 to 15 years). These improvements can offer savings in the year of renovation and in the years to come. For instance, replacing all the windows in your home could cost $10,000 or more, but the AIC estimates that this renovation will provide a return on investment (ROI) between 50% and 75%. Since outdated or improperly working windows and doors are major contributors to a home’s energy loss—up to 20% by some estimates—repairing or replacing these features will provide immediate savings and will add value to your home.

#2. Invest in modern updates, particularly in high traffic areas

The kitchen and bathrooms are key areas that hold their value if the finishes are contemporary and neutral. However, an entire renovation isn’t always required. For instance, wooden kitchen cabinets can be easily updated by resurfacing the doors and changing the hardware. You can also modernize and update the look of your kitchen by changing the countertop and replacing lighting and plumbing fixtures.

However, if your kitchen or bathroom layout just doesn’t work or your cabinets are beyond the point of resurfacing, it may be time to consider a full renovation. According to the AIC, you can expect a 75% to 100% ROI on a major kitchen remodel or extension.

But I need to point out that even the most well-thought out and contemporary remodel today will look dated in 15 years, so don’t bank on a dollar-for-dollar return on your remodel budget if you don’t plan on selling for a few decades. Still, if you’re renovating with your own family in mind, you can develop a smart plan by asking for features that are easy to update when it comes time to sell. A good designer and contractor can easily help in this situation.

#3. Don’t overlook (or underestimate) the more inexpensive remodel jobs

The return on investment for a fresh coat of paint is up to 165%—the best ROI of any home improvement. Other smaller remodel updates that don’t break the bank include replacing the front door, updating the home’s lighting fixtures, and adding (or rejuvenating) landscaping.

Inexpensive remodel jobs aren’t isolated to a few fixtures, either. Removing carpet and installing hardwood goes a long way to increasing your home’s appeal to potential buyers and according to the AIC, the ROI on floor upgrades ranges from 50% to 75%. That means if you spend $5,000 redoing your floors, you can expect to recoup anywhere from $2,500 to $3,800 of your costs.

#4. Consider energy efficiency

According to a variety of appraisal sources, energy efficient renovations are considered to have one of the highest paybacks, relative to cost.

Percentage recovered upon resale:

Kitchen upgrade: 75% – 100%
Bathroom upgrade: 75% – 100%
Interior painting: 50% – 100%
Roof replacement: 50% – 80%
Replace furnace/heating system: 50% – 80%
Expansions (addition of rooms): 50% – 75%
Doors and windows: 50% – 75%
Deck: 50% – 75%
Installation of hardwood floor: 50% – 75%
Construction of a garage: 50% – 75%
Fireplace (wood or gas): 50% – 75%
Central air conditioning: 50% – 75%
Finished basement: 50% – 75%
Wood fence: 25% – 50%
Cement driveway: 25% – 50%
Landscaping: 25% – 50%
Pool: 10% – 40%
Skylights: 0% – 25%

August 1, 2017
Rent or Buy, Which is Right for You?

Rent or Buy? It’s a question many people struggle with, and, it’s important to know if you truly want to own a home before you’re firmly entrenched in the home buying process. To help you decide better, here are some things to consider…

PROS

A Sound Investment
If you choose a home that you can afford, the payoff can be great. When you make a mortgage payment each month, you build equity in a place of your own (unlike a rent payment). Equity is the difference between the value of the home and your outstanding mortgage. The longer you stay in your home (and the more payments you make), the more equity you’ll have, and, unlike most things you buy, a home will almost certainly increase in value over time, which builds even more equity.

A First Step
As you build up equity in your current home and comfort level in being a home owner, it may be easier to move up to another home in the future.

Satisfaction & Security
As a homeowner, you can decorate and renovate your home any way you like. You don’t have that luxury as a renter. Owning a home also gives you a new sense of pride in your surroundings. Your family may also feel strong ties to your community.

CONS

Higher Costs
When budgeting, you’ll have to factor in more than your monthly mortgage payments. You should consider things like maintenance and repair expenses.

Tying Up Cash
You home will probably increase in value as time goes by, but don’t count on getting a big return quickly. If you need to sell your home during the first few years of homeownership, you could lose money given the various costs involved, such as realtor fees and possible penalties for breaking your mortgage before your term is up.

No Guarantees
There’s no guarantee your house will increase in value, especially during the first few years. Although, historically, over the longer term, homes will have proven to increase in value.

November 1, 2016
What Does ‘Pre-Approval’ Mean?

Getting pre-approved by a lender makes it easier for buyers to find the home they want within their price range. However, it does not guarantee you’ll get the mortgage. It is simply a certificate saying that through a quick calculation of your finances, the lender has determined what you can afford.

During the pre-approval, the lender will also fix the interest rate, which is usually good for between 60 and 90 days. If a better rate promotion occurs during the buyer’s fixed period, the buyer is usually eligible for that as well. It is likely the pre-approval will lead to a mortgage, but there have been situations when this has not been the case. The best way for buyers to ensure success is to understand what the lenders look for and to be prepared. Another way is for buyers to work with their mortgage broker, who can flag any potential challenges.

A lender will determine a buyer’s debt load by calculating the Gross Debt Service (GDS) Ratio and Total Debt Service (TDS) Ratio. The GDS Ratio is the proposed housing costs, including mortgage payments, taxes, heating costs and 50% of condo fees, if applicable, and shouldn’t be more than 32% of the buyer’s gross monthly income. TDS calculations take into account all the buyer’s other debt obligations and shouldn’t be higher than 40%.

Once a buyer has made a conditional offer on a home, the lender will gather all the documentation required to approve the mortgage, including a credit report. Other items a lender will need are a letter from an employer confirming the buyer’s salary, information about other sources of income, bank accounts, loans and other debts, proof of financial assets, sources of the down payment and deposit, and proof that the buyer has the funds for closing costs.

Problems can crop up during the mortgage approval process. For example, the buyer’s credit score may be too low, the buyer might not have the right source for the deposit funds or the closing costs may not have been deposited in an account. The buyer’s GDS and TDS ratios might also be too high.

October 1, 2014