Real Talk!

New Canadian mortgage rules take effect April 19. Finance Minister Jim Flaherty has announced tighter lending standards for mortgages a move he said was needed to “help prevent negative trends from developing.”

Recently, the Vanier institute announced that in 2009, household debt in Canada rose to record levels, with almost two-thirds of families reporting that they would be in financial trouble if their pay cheques were just one week late. Vanier found that the number of mortgage payments more than 90 days in arrears jumped 50% last year. Many economists argue that this figure has been seriously skewed by the Alberta housing boom.

It’s all about the people, not the houses. The Bank of Canada says, "In the Bank of Canada's view, it is premature to talk about a bubble in Canadian housing markets. Recent house price increases do not appear to be out of line with the underlying supply/demand fundamentals.”

The Canadian Association of Accredited Mortgage Professionals says, “The bottom line from the simulations is that even though mortgage payments will probably rise for most borrowers, the increases in incomes will more than offset the increased mortgage payments."

Scotia Capital tells us, “"We expect housing demand will remain strong through the key spring sales season as buyers attempt to pre-empt the inevitable rise in interest rates, and improving labour markets bolster confidence”

“There are no definitive signs of a housing bubble,” Mr. Flaherty said. “We think we're being proactive in the three steps we're taking today.”
In fact, many lenders have already been practicing the measures that have been outlined by Flaherty and it isn’t that much of a surprise. The three basic changes are as follows:

• Borrowers will need to meet qualifying standards for a five-year fixed rate mortgage (even if they opt for a lower rate and shorter term.) This is in order to prepared buyers for the inevitable interest hikes.

• The maximum Canadians can withdraw in refinancing mortgages will now be 90 per cent of the value of their property (currently 95 per cent).

• A minimum down payment of 20 per cent will be required for government-backed insurance on properties purchased on speculations (the owners do not intend to occupy the home).

We haven’t seen much speculative buying in a while, anyway... and there has been recent news that The Bank of Canada's pledge to keep interest rates at the current level will end by June 30th.

Overall, Canada's real estate market remains healthy and strong and the Canadian Real Estate Association predicts that the average price for a home will rise to $337,550 CAN this year, a 5.4% increase from 2009.

Fabian and I were sad to learn that Phil Harris, 53, from the Discovery Channel's "Deadliest Catch" has passed away after complications from a stroke he suffered in January- while the crew were offloading crab in Alaska.

Captain of the Cornelia Marie for 18 years, Harris' boat (The Cornelia Marie) is one of a few boats that have been rigged with cameras since 2005 treating fans to a taste of the brutal perils of opilio crab fishing on the Bering Sea.

Since the earliest days of the show, Phil Harris has caught our attention. Big, burly, rusty-voiced and down to earth, Harris could be salty, wrangling the sea with a vigilant eye on the safety of his crew which has included his two sons, Josh and Jake. As Captain Phil said recently on a Larry King episode, "There's a lot goes on out there besides crab fishin'"

One season, his boat was plagued with propeller problems and there was an issue in one main engine, not to mention that Captain Phil faced ongoing medical problems- culminating in a serious crisis from a 2008 hurricane that launched him from his bed, breaking bones and causing a serious blood clot. He has to leave his boat. It was awful!

Through the seasons, we've watched Captain Phil Harris with fascination. Balancing business acumen with a straight shooting attitude, fierce passion and working without sleep, with broken ribs in some of the most dangerous conditions. His love of the sea, devotion to family and loyalty to friends and colleagues was obvious. He was always up for a good practical joke, too. In one interview, Phil said "The pranks – they’re all good, it just depends on who you’re doing them to! The one we did with Sig was funny because he’s Norwegian and I was trying to think of something rare. We’ve put toilets in pots, we’ve dressed a mannequin in rain gear and put him in the pots. It just goes on and on – it’s just endless that we do back and forth. That was probably one of the funniest ones though."

One can only imagine how much you need to have a good laugh to break the serious climate of the frigid sea life. Captain Phil confessed to being scared 3 times in his 33 years on the sea, "I’ve been scared on the water about 3 times in my career, and every one is a bit different but equally scary. We were at the Pribilofs and it was blowing in the area of 150-175 knots, maybe 100 foot seas. We came off a comber and there wasn’t any water on the other side and the boat just free fell about 100 feet. The boat weighs around 700 tons, so it just blasted all of us. It just ripped things off the walls inside the boat — the microwave and stereo went flying, dishes all over the place. We blew off one of our rudders too, and all the alarms were going off. We didn’t know if we’d punctured a hole in the boat or what. We were sideways at this point in 100 foot seas, We got it spun around and I knew I’d done something to the boat because it wouldn’t steer properly. It took a few minutes to get all the alarms shut off. Guys were checking the engines in the engine room to find out if there was structural damage. At that point we were going the same direction as the seas and the waves were so big that I was just terrified. A friend called to see how it looked and for 4 hours, I didn’t even turn around to look. I knew if I did, it would probably give me a heart attack. It was just too big."

He's also said, “You’ve got to be a little twisted to do this job and you have to like to live on the edge.”

Uh huh. Still, we've watched each season and always look forward to seeing Phil Harris. We've rooted for him during illness, disaster, weather and quotas. We've watched him in interviews, exhibiting a frank sense of humility, love for his friends and family, and a warm sense of comaraderie. Captain Phil was someone you wished you knew, personally. He was so real.

I would like to share a couple more quotes from the captain...

At the end of a Discovery Channel 2008 online live chat:

"I want to thank every single person that was on here tonight that supports me, takes time out from what they’re doing to even care. I guess that’s one of the best perks of this whole job is having people like you guys to sit down and talk with. Sometimes there’s some really interesting stuff. Especially thanks to the people that sent gifts and cards. It doesn’t get better than that. I’m a fortunate guy to have people do that. It’s a very neat feeling and something that I’ll always hold dear to me, if after this is all said and done, the show goes away and we’re just back doing our thing this is something I can reflect on that was pretty damned cool. I want to thank everybody, that means more to me than anything.

There’s a couple people I would like to thank that have been great and without them, this whole thing wouldn’t have been possible for me, Bonnie Rasmussen and Skip, and my manager Russ, and my partner on the crab boat. Everybody else, I could start naming names but we’d be here all night. Bonnie is exceptionally dear to me, just the sweetest thing in the world. Laura and the people who take care of my T-shirts and Roger from Kicker have been nice to me and helped me through tough times when I was sick. I want to thank them. Especially Bonnie, she’s a sweet lately and she does great work for me."

and in another interview, when asked about what lesson he hoped he'd given his boys, Phil Harris said, "I don’t know if there’s one lesson, but in general, if I died tonight and was gone, I hope they’d have the integrity to do what they say, be honest, and do honest work for an honest wage and not short change themselves or anyone else. To be honest about how they live and work. Don’t sidestep things or try to cut corners. Do an honest hard job, and do it to the best of their ability."

Dec. 21, 1956- Feb. 10, 2010
Bon Voyage Captain Phil
Rest in Peace

Originally broadcast January 8, 2010 on CBC-TV "Grow Up Coverup" with Erica Johnson and Mike Holmes, of Holmes on Homes, who in 2006 was recognized in Canada’s House of Commons for his promotion of skilled trades and for his advocacy for improved building standards.

Mike Holmes lives by a very simple motto: "Make It Right". He believes in that slogan so strongly that he has it tattooed on his right arm.

I've had a crush on Mike Holmes for an awfully long time... way way way before he received that marriage proposal from Ellen DeGeneres.

I've been a fan since I first saw the man that a 2006 Calgary Herald writer described as, "... big and he wears overalls with a sleeveless undershirt, a gold chain, bracelets and an earring. He has tattoos and a spiky brush cut."

Back, also in 2006, Mike Holmes wrote an article for the Toronto Globe and Mail: "Inspections need closer scrutiny" in which he said:

When buying an existing home, it's a good idea to also buy some peace of mind by first having it looked over by an independent professional, to make sure it's as good as it looks. The first person buyers often look for is a certified home inspector, and often your real estate agent will recommend one.

But keep these points in mind: Your real estate agent wants to make a sale. The amount of your real estate agent's commission is also based on the final price. Your home inspection report can be used to renegotiate or lower the final price. It's not impossible to imagine some home inspectors turning a blind eye to certain problems, in order to keep the selling price up and a good relationship with the realtors who give them referrals. You might start to see why it's best to have a separation between these two parties, the realtor and the home inspector. There could be a conflict of interest and you need to have independent, unbiased advice.

and

If you want to know if the house you are thinking about buying is safe and sound, spend time looking for your own certified home inspector, or hire licensed contractors. Not only can they tell you that the house “looks right,” but they can verify with a higher level of certainty that it “is right.” Whether it's electrical, plumbing, HVAC, roofing or even mould evaluation, a licensed contractor is qualified to make sure it meets proper building code and safety guidelines.

A licensed contractor can offer two valuable bits of information: Does the system meet minimum building code standards? If the answer is “no,” what will it cost to bring the home up to safe standards? This is real information you can use for renegotiating the final price — the right price — of the home. Hiring a licensed contractor maximizes your chances of getting a fair and unbiased evaluation, not just a surface inspection.

As a real estate professional, if my clients ask me to recommend an inspector, I give them a handful of choices. I want them to hear the truth. In fact, I try to get my seller's to have one done, so they can get their home up to snuff before listing. I haven't had one do it, yet. Still, I try.

I can only hope that home inspectors don't fudge any information on my account. I am an honest person and I expect honest, professional service.

Back in 2007, Holmes was interviewed on MarketPlace by Wendy Mesley in "How Not to Get Nailed" about unsavory "contractors" and their shoddy, if not criminal and crooked renovations.

I watch all of his shows. I believe in Mike Holmes.

I have often wondered about "home inspections" and "home inspectors". The trend began as a consumer service in the early 1970's. The Canadian Association of Home & Property Inspectors (CAHPI) was formed in 1982 and OAHI (The Ontario chapter) in 1984. Their website www.oahi.com is interesting.

The CMHC (Canada Mortgage and Housing Corp.) website says:

Home inspectors and related industry and consumer groups consider a home inspection to be a worthwhile part of the resale process for the following key reasons:

•It provides the buyer with a list of repairs including time frames and other recommendations.
•It discloses conditions not readily apparent or understood by a non-technical buyer, or that may have been misrepresented.
•It reduces the liability of the realtor and meets the realtor’s need to disclose material facts and act in their client’s best interests.

Mike Holmes has a home inspection service. He is also back with a home inspection television program and if you have:

- Purchased a home in the past 18 months in the Toronto area.

- Used a Home Inspection Service before purchase

- A written Home Inspection Report

- Found issues with their home that were not accounted for in the inspection report.

visit http://makeitright.ca/Mike_Holmes_Online/Home_Inspection_Stories.php

They may want your story!

"NB Career Surf" has published an interview with Mike Holmes. His answer to the question: What do you love most about your job? was "I love being in construction and I have had many rewarding experiences. Helping families improve their homes is one of the most rewarding parts of my job."

Helping families with their homes is a very rewarding part of my job, too.

A MarketPlace Blog, after the recent airing of the piece on home inspectors that featured Mike Holmes, offers this advice:

Since hiring a home inspector is not equivalent to a warranty, and inspector liability is usually limited to the fee you paid or a similar amount, you could be stuck with repair costs above that. The financial stakes could be high if you rely on an inspection that turns out to be incomplete, so here are some questions to help you inspect your home inspector beforehand:

What kind of experience do they have? If the inspector doesn't have much of an answer, that's a big red flag. Experience and the right kind of training is key, since even if someone is an engineer, it doesn't mean they are qualified to inspect a home.

Can they provide references? A large, satisfied client base is always a good sign. Get as many as possible from the inspector and call them all.

Are they independent? A home inspector is there to offer an unbiased assessment, and shouldn't be part of any construction or homebuilder group or offer repair services themselves.

What kind of equipment do they use? A pen and paper are simply not enough. Do they bring binoculars, a ladder, or an infrared camera? A thorough inspection includes hard-to-reach places like the roof and chimney.

Can you follow them around during the inspection? A good inspector will encourage you to take part and will clearly communicate any serious problems, and not bury them in a checklist.