Design 2020/21 | Page 79

ASK A MORTGAGE EXPERT :
WHAT 3 MORTGAGE TRENDS ARE LIKELY TO CONTINUE TO
BE SEEN 2021 ?
TRACEY BROCK MORTGAGE BROKER
This kitchen is the heart of this open concept condo . Previously , the kitchen had been closed off from the living area , making the space feel small and cramped . By removing the walls into the hallway and living area , the condo was given a more open and spacious feel . Removing the walls also allowed for the addition of a large island , providing additional storage , work surface and space to gather ! Simple white shaker style cabinetry keeps the space timeless while a statement making tile backsplash provides contrast and visual interest . To help define the space , the kitchen was given a drop ceiling . This requires the use of half steel studs and self tappers and can be a recipe for disaster for a less experienced contractor . The final look was well worth the extra effort invested !
New flooring throughout the condo helped to update the look of the space . For areas that experience moisture and wear , like the kitchen , bathroom and entrance , a gray tile was used . To add warmth to the color palette of whites and grays throughout the condo , a beautiful blonde hardwood flooring was selected for the remaining spaces . Installing the large format tiles and hardwood planks all running in the same direction across the condo also helps to draw the eye through the condo and make it appear larger . Lighting is another key to helping a small space feel larger . By opening up the walls to the kitchen , natural light from the balcony doors can now move throughout the space during the day . With the installation of pot lights in the kitchen with track lighting in the living space , the condo now offers a variety of lighting options for various tasks , ensuring a well lit space any time of the day and allowing the homeowners to adjust the lighting to meet their requirements . - Riverdale Construction & Renovations , www . riverdaleconstructionottawa . com
BEFORE
AS COVID HAS DEMONSTRATED to many employers and their employees , working from home is a viable and reasonable way to conduct business . Homeowners are using the equity in their home to either renovate , purchase larger homes in suburban areas or purchase second homes to allow them to rent their existing downtown condo .
This new trend has already seen many individuals leaving the big suburban cities and moving to suburbs . With the need to commute minimized and the reduction of extra commuting costs , living in larger homes with bigger yards has become a definite desire .
Homes are being purchased or being renovated to provide an office space for at least one but sometimes two of the adults living and working at home .
WITH HOUSE PRICES CONSTANTLY ON THE RISE , lack of inventory in the housing market and loss of jobs due to the current pandemic , multi-family homes are on the rise . Parents are purchasing larger homes that allow for separate basement apartments for their children or elderly parents . Many investors are converting single family homes into legalized Duplexes to allow them to rent out both units .
With immigration still a top priority with the Federal Government , the absolute need for Green Space for environmental reasons , and the slow down on new build projects with Covid , this trend will continue to move forward for the foreseeable future .
RATES CONTINUE TO BE A HOT TOPIC in the mortgage industry and will likely continue to remain low into 2021 . For many homeowners who took out a mortgage in 2018 , they will see a considerable interest rate savings by breaking their mortgage for lower rates . For example , my client had a 3 year rate of 3.79 % in 2018 . Now their new rate is 1.79 % giving them annual interest savings of approximately $ 9,400.00 . They have reduced their bi-weekly payments by $ 200.00 and after one year , the principal balance owing is lower by $ 4,200.00 . Yes , they paid a penalty of $ 4,000.00 but their annual interest savings more than covers that and they have this new rate for another 3 years .
It ’ s not only for realizing a better rate , homeowners are saving thousands on unnecessary interest by consolidating credit cards , where interest compounds on a daily basis and moving that debt into their home .
Lower rates are also an incentive to homeowners who have been putting off renovations . – Tracey Brock , Dominion Lending Centres Mortgage Plus , www . traceybrock . ca , 10304 Independently O / O