Canadian banks call truce in easy-money mortgage battle

grant robertson — BANKING REPORTER

From Thursday’s Globe and Mail

Published Wednesday, Feb. 08, 2012 7:43PM EST

Canada’s mortgage party has come to an abrupt halt.

The bonanza of dirt-cheap mortgages offered by some of the country’s biggest lenders in recent weeks has been shut down sooner than expected, as banks pull their offers in the face of higher funding costs and concerns over dwindling profit margins.
On Wednesday, Toronto-Dominion Bank (TD-T79.090.260.33%) pulled discount mortgage rates that were supposed to be available until the end of the month. Royal Bank of Canada (RY-T53.930.350.65%) did the same on Tuesday.

RBC and TD were both offering four-year fixed-rate mortgages with a 30-year-amortization at 2.99 per cent, and had announced plans to keep those rates in place until the end of the month.

The offers were in response to Bank of Montreal (BMO-T58.600.480.83%) offering five-year fixed-rate mortgages over 25 years at 2.99 per cent, which observers said is the lowest in recent memory. Though BMO’s move was a two-week offer that was eventually halted, it led RBC and TD to match the rival bank with extended offers to avoid losing market share.

Hints that an economic recovery is taking hold in the United States are putting upward pressure on rates. A slight increase in bond yields this month has forced RBC and TD to pull their mortgage offers weeks ahead of schedule, an indication of just how slim lending margins are for banks in the current environment. Benchmark five-year Government of Canada bond yields have gone up 17 basis points since the start of February.

“The rates coming down were in response to a very aggressive move by a competitor and a need for us to defend our client base, and to defend our business. We didn’t lead it there, but we felt compelled to follow,” David McKay, group head of Canadian banking at RBC, said in an interview Wednesday.

“When that market attacker corrected and raised their rates, it enabled us to say funding costs are going up, we’re not making enough spread at this rate … and we need to raise pricing because the cost of funds is going up.”

In an improving economy, expectations of inflation taking hold gradually push up bond yields and lending rates. Government of Canada five-year bond yields reached a two-month high of 1.416 per cent on Wednesday.

“Rates can go up and down, depending on conditions. The new rates reflect rising bond yields and the subsequent increase in the cost of funds,” TD spokesman Mohammed Nakhooda said.

In response, TD and RBC both increased their four-year, fixed-rate mortgages to 3.39 per cent, an increase of 40 basis points. BMO has also raised its rates to similar levels.

“We have seen some modest backup in Canadian bond yields in recent weeks, amid growing optimism on the global economic outlook – and in particular an improving U.S. outlook,” said Doug Porter, deputy chief economist at BMO. “In turn, this has put some upward pressure on borrowing costs.”

The banks, which will begin reporting quarterly earnings at the end of the month, aren’t saying whether the deep discounts on mortgages led to a boom in new business. However, anecdotal evidence gathered from inside the mortgage community Wednesday suggested a flurry of activity has taken place since mid-January.

The lower rates came at a time when Ottawa is trying to warn consumers against taking on too much debt, worried that household debt levels across the country are rising too quickly. Sources indicated last week that officials in Ottawa were not happy with the price war the banks were waging on mortgages, since it potentially encouraged people to borrow more.

Frank Techar, head of personal and commercial banking in Canada for BMO. said BMO began offering the 2.99-per-cent rate as a way to promote its 25-year mortgages, rather than 30-year amortizations. “We went to 2.99 per cent to draw attention to the benefits of having a mortgage with a maximum amortization of 25 years,” he said.

1. What’s the best rate I can get?

• Your credit score plays a big part in the interest rate for which you will qualify, as the riskier you appear as a borrower, the higher your rate will be. Rate is definitely not the most important aspect of a mortgage, however, as many rock-bottom rates often come from no frills mortgage products. In other words, even if you qualify for the lowest rate, you often have to give up other things such as prepayments and porting privileges when opting for the lowest-rate product.

2. What’s the maximum mortgage amount for which I can qualify?

• To determine the amount for which you will qualify, there are two calculations you’ll need to complete. The first is your Gross Debt Service (GDS) ratio. GDS looks at your proposed new housing costs (mortgage payments, taxes, heating costs and 50% of strata/condo fees, if applicable). Generally speaking, this amount should be no more than 32% of your gross monthly income. For example, if your gross monthly income is $4,000, you should not be spending more than $1,280 in monthly housing expenses. Second, you will need to calculate your Total Debt Service (TDS) ratio. The TDS ratio measures your total debt obligations (including housing costs, loans, car payments and credit card bills). Generally speaking, your TDS ratio should be no more than 40% of your gross monthly income. Keep in mind that these numbers are prescribed maximums and that you should strive for lower ratios for a more affordable lifestyle. Before falling in love with a potential new home, you may want to obtain a pre-approved mortgage. This will help you stay within your price range and spend your time looking at homes you can reasonably afford.

3. How much money do I need for a down payment?

• The minimum down payment required is 5% of the purchase price of the home. And in order to avoid paying mortgage default insurance, you need to have at least a 20% down payment.

4. What happens if I don’t have the full down payment amount?

• There are programs available that enable you to use other forms of down payment, such as from your RRSPs, a cash-back product, or a gift.

5. What will a lender look at when qualifying me for a mortgage?

• Most lenders look at five factors when determining whether you qualify for a mortgage: 1. Income; 2. Debts; 3. Employment History; 4. Credit history; and 5. Value of the Property you wish to purchase. One of the first things a lender will consider is how much of your total income you’ll be spending on housing. This helps the lender decide whether you can comfortably afford a house. A lender will then look at your debts, which generally include monthly house payments as well as payments on all loans, credit cards, child support, etc. A history of steady employment, usually within the same job for several years, helps you qualify. But a short history in your current job shouldn’t prevent you from getting a mortgage, as long as there have been no gaps in income over the past two years. Good credit is also very important in qualifying for a mortgage. The lender will also want to know that the house is worth the price you plan to pay.

6. Should I go with a fixed- or variable-rate mortgage?

• The answer to this question depends on your personal risk tolerance. If, for instance, you’re a first-time homebuyer and/or you have a set budget that you can comfortably spend on your mortgage, it’s smart to lock into a fixed mortgage with predictable payments over a specific period of time. If, however, your financial situation can handle the fluctuations of a variable-rate mortgage, this may save you some money over the long run. Another option is to opt for a variable rate, but make payments based on what you would have paid if you selected a fixed rate. Finally, there are also 50/50 mortgage options that enable you to split your mortgage into both fixed and variable portions.

7. What credit score do I need to qualify?

• Generally speaking, you’re a prime candidate for a mortgage if your credit score is 680 and above. The higher you can get above 700 the better, as you will qualify for the lowest rates. These days almost anyone can obtain a mortgage, but the key for those with lower credit scores is the size of the down payment. If you have a sufficient down payment, you can reduce the risk to the lender providing you with the mortgage. Statistics show that default rates on mortgages decline as the down payment increases.

8. What happens if my credit score isn’t great?

• There are several things you can do to boost your credit fairly quickly. Following are five steps you can use to help attain a speedy credit score boost: 1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so they’re below 70% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on. 2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month. 3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards. The best bet is to pay your balances down or off before your statement periods close. 4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. Use these cards periodically and then pay them off. 5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

9. How much will I have to pay for closing costs?

• As a general rule of thumb, it’s recommended that you put aside at least 1.5% of the purchase price (in addition to the down payment) strictly to cover closing costs. There are several items you should budget for when it comes to closing costs. Property Transfer Tax is charged whenever a property is purchased. The tax will vary from jurisdiction to jurisdiction, but I can help with the calculation. GST/HST is only charged on new homes, and does not affect homes priced at less than $400,000. Even homes that exceed the price threshold are only taxed on the portion that exceeds $400,000. Certain conditions may apply. Please contact you lawyer/notary for more detailed information. Your lawyer/notary will charge you a fee for drawing up the mortgage and conveyance of title. The amount of the fee will depend on the individual that you use. The typical cost is $900. If you’re purchasing a single-family home, you’ll need to give your lender a survey certificate showing where the property sits within the property lines. Some exceptions are made, however, on low loan-to-value deals and acreage properties. A survey will cost approximately $300-$350, but the lender will often accept a copy of an existing survey. Other costs include such things as an appraisal fee (approximately $200), title insurance and a home inspection (approximately $350).

10. How much will my mortgage payments be?

• Monthly mortgage payments vary based on several factors, including: the size of your mortgage; whether you’re paying mortgage default insurance; your mortgage amortization; your interest rate; and your frequency of making mortgage payments. You can view some useful calculators to find out your specific mortgage payments: www.dominionlending.ca/mortgage-calculators

Credit card roulette

will dunning

From Thursday’s Globe and Mail

Published Thursday, Dec. 29, 2011 2:00AM EST

Credit card lending is starting to look a lot like airline travel did a generation ago.

In those times, government regulations set minimum airfares, at levels that would have allowed the airlines to be very profitable. Since they weren’t allowed to compete on price, airlines competed in other ways, including free food and drinks, and service. To a large degree, they “competed away” their potential “excess profits.”

Now that airfares have been deregulated, prices are very competitive, but the perks have been reduced significantly. While consumers miss the freebies, and we often grumble about airline service, we have been made much better off by the advent of price competition.

In the credit card arena, lenders haven’t yet found a way to compete on price, so they follow a similar model of competing through other offerings. These include points, cash-back schemes, and insurance programs. The credit card issuers’ behaviour is analogous to the airlines of earlier times. And, like the airlines, these perks have the effect of “competing away” some of the “excess profits” that might be earned in a market that’s not competitive on pricing.

In fact, lenders have found another avenue for competing away the excess profits. This one, fortunately, was never adopted by the airlines: They’re taking on added risk.

The Canadian Bankers Association reports that, at the end of July, 1.05 per cent of Visa and MasterCard balances were delinquent by 90 days or more. This is more than 2.5 times the arrears rate for mortgages, which was 0.40 per cent at the same date. Indeed, if one were to track the arrears rate of both credit cards and mortgages, one would find that, since 2004, credit card arrears have been triple that of mortgage arrears.

Further illustration of the riskiness of credit card lending is provided by the CBA’s data showing that write-offs at the end of July amounted to 3.91 per cent of total outstanding balances (at an annualized rate).

Some lenders are calling for increased regulation of mortgage lending. Mortgage lending is already quite highly regulated and, in Canada, is a quite safe form of lending, as illustrated by the CBA arrears data. Indeed, the federal government has already made three sets of changes to its financial guarantee of mortgage insurance since 2008. The last series of changes resulted in a significant reduction in refinancings by Canadian households, according to mortgage default insurers, including CMHC and Genworth Financial Canada.

If lenders were writing off their mortgages at the same rates as credit card balances (currently 3.91 per cent a year), it would be nothing short of catastrophic for them and for the Canadian economy.

Strangely, though, credit card issuers aren’t calling for increased regulation of credit card lending – an activity that’s much less regulated and much less competitive than mortgage lending, and is more profitable.

Will Dunning is an economic consultant who specializes in analyzing housing markets.

By Sunny Freeman, The Canadian Press

TORONTO – Canada’s housing sector is edging closer to a sellers’ market as sales and prices jumped again in November, but the number of listings dropped off.

Home resales rose six per cent last month on a year-over-year basis and jumped 0.5 per cent on a seasonally adjusted basis compared to October levels, the Canadian Real Estate Association said Thursday.

November marked the third straight month that national activity on its Multiple Listing Service was up from the one before.

The national average price increased 4.6 per cent year-over-year to $360,396. And while prices continue to rise, CREA noted that November’s increase was the smallest jump since January. Meanwhile, the number of newly listed homes was down 3.4 per cent from October to November.

“The national housing market remains balanced, but is edging closer to seller’s market territory,” the association said in a release.

A sellers’ market occurs when demand outweighs supply and owners can fetch a higher price for their homes in bidding wars between buyers.

The latest signs pointing toward a market that favours sellers stand in stark contrast to predictions earlier this year that demand would drop off, giving buyers a break from rapidly rising prices.

But a continuation of ultra low interest rates — which have sat at one per cent since September 2010 — due to trouble signs outside Canada’s borders has kept demand strong and buyers competing.

New listings slipped lower in more than two-thirds of Canadian housing markets, with Toronto, the Hamilton-Burlington region, and Calgary falling the most. The national sales-to-new listings ratio a measure of market balance, rose to 55.5 per cent in November — its highest reading since the spring.

Sales activity rose in about 60 per cent of all local markets, CREA said. Record November sales in the Halifax-Dartmouth region offset a dip in sales in the white hot Toronto market.

“The Canadian housing market is proving resilient in the face of ongoing global economic and financial uncertainty, to the benefit of Canadian economic growth,” said Gary Morse, CREA’s President.

And while sales so far this year have been stronger than expected, up 2.1 per cent on a year-to-date basis, they have remained in line with the 10-year average.

However, sales in November were so robust, that they broke that pattern to climb seven per cent above the 10 year average to the fourth highest level on record for the month.

But CREA’s chief economist Gregory Klump noted that the upswing heading into year-end is similar to what happened last year.

“By contrast, national average price also picked up toward the end of last year, whereas this year it has held steady after having peaked in the spring,” he added.

For the first time this year, Klump acknowledged that the hot real estate market — driven in part by a persistent low interest rate environment that is expected to last well into next year — could lead to signs of trouble.

“With interest rates expected to remain low for longer, the housing sector will no doubt be closely watched for signs of excess,” said Klump.

“That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability in Canada.”

Heavy borrowing activity signals dark clouds on the horizon for some households as debt reaches record levels — as much as 153 per cent of disposable incomes, according to data released earlier this week.

The most over-leveraged Canadians could find themselves unable to cope when interest rates eventually rise, federal Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have warned.

A total of 432,048 homes have changed hands on CREA’s MLS system so far this year, that’s about 0.7 per cent above the 10-year average.

5 reasons why a fixed-rate mortgage could be your best bet

By Tom McFeat, CBC News

It’s a decision that millions of Canadian homeowners struggle with repeatedly during their time as homeowners: Do they choose the security of a fixed-rate mortgage, or opt for the flexibility (and usually lower cost) of a variable rate and hope that rates don’t spike higher? But right now, conditions in the mortgage market mean homeowners can actually get the best of both worlds, according to market-watchers.

(Source: CMHC)

For years, we’ve seen evidence that people who opted for variable-rate mortgages ended up saving money over the fixed-rate crowd —anywhere from 77 to 90 per cent of the time, depending on the period selected and the assumptions used.

Despite that, 60 per cent of the 5.8 million mortgages out there are fixed-rate mortgages, and the five-year term is especially popular. Another 31 per cent of mortgages are variable- or adjustable-rate. The rest are hybrids that have a bit of both types of mortgages built in.

In the past year, we’ve seen evidence that people have been starting to swing more towards variables (see table). But in the past few months, two things have happened in the Canadian mortgage market that may have the “variable-is-best” crowd changing their minds … or at least re-thinking what used to be an easy decision.

Variable has a catch

First of all, the traditional discount that lenders used to apply to variable rate mortgages is fast becoming a thing of the past.

“In the last couple of months, there’s been a big shift back to fixed rates,” says mortgage broker Robert McLister, who edits the popular mortgage news site CanadianMortgageTrends.com. “The average discount went from prime minus 0.80 per cent to prime minus a quarter,” he told CBC News.

Widespread discounts

• Average posted 5-year fixed-rate mortgage: 5.38%
• Average discounted 5-year fixed-rate mortgage: 3.92%
• Average discount: 1.46 percentage points

Source: CAAMP/Maritz survey, Fall 2011

That puts a typical five-year variable-rate mortgage around 2.75 per cent.

At the same time, McLister says fixed rates have dropped. Mortgage brokers can arrange a five-year fixed-rate mortgage for as little as 3.25 per cent – or about two full percentage points below the posted rates at the big banks. That rate represents a spread of just half a percentage point over the variable-rate mortgage. McLister says the spread between these two is normally 125 basis points or more (1.25 percentage points).

At this point, you may be thinking that people who have variable-rate mortgages still can’t lose, because they can always choose to lock in to a fixed-rate mortgage at any time. Very true. But McLister points out that people who do this typically don’t get the lowest rates.

That’s not too surprising. After all, you can’t change lenders when you switch from a variable to a fixed mortage without paying a penalty, and your lender knows this. “The rates that lenders give to people when locking in are always at least a quarter percentage point above what’s available elsewhere in the market,” he says.

McLister also points out that it’s never immediately clear where or when mortgage rates will bottom out. “Some people may think about getting a variable in hopes of riding down rates if they drop further,” he says. “The thing is, if you’re that good at predicting interest rates, you’d make a lot more money as a bond trader.”

What people are choosing

Source: CAAMP/Maritz survey, Fall 2011

Fixed-rate bargains

Of course, there are other reasons besides interest rates that can sway someone’s decision on mortgage type. If someone needs to break a five-year fixed rate mortgage early, for example, the penalty (based on what’s called the interest rate differential) can be many thousands of dollars. With a variable-rate mortgage, the penalty is never more than three months interest.

By the numbers

• Interest rates in Canada and around the world
• Map: Canadian housing prices

But some people will always opt for fixed-rate mortgages simply for the security of knowing that they won’t be affected by any future upswing in interest rates – at least until their mortgage comes up for renewal.

Here’s another reason to consider fixed-rate mortgages. Some lenders have chosen to stake out some market share by offering exceptional bargains at terms other than five years.

The four-year fixed-rate mortgage – not a mainstay among the big banks – has become a battleground among some other lenders that mortgage brokers use. Brokers can arrange a four-year fixed-rate mortgage for 2.99 per cent at a few non-bank lenders, and the range generally available right now goes from 2.89 per cent to 3.09 per cent.

One big bank lender – Scotiabank – offers a two-year fixed-rate mortgage for 2.49 per cent, which is even less than what lenders charge for a variable-rate mortgage.

As for the future, some mortgage experts see the variable-fixed spread continuing to narrow.

‘Variable mortgage rates will stay at current levels well into 2012’—RateSupermarket.ca

“Variable mortgage rates will stay at current levels well into 2012,” says a panel of five mortgage industry and academic experts surveyed by RateSupermarket.ca in December.

At the same time, the panel members predicted that fixed mortgage rates would stay low or drop further over the next 30 to 45 days, noting that there’s less demand for home loans over the holdays.

Still not sure what to go for? Fixed or variable? Short or long-term?

Either way, the good news is that rates are at historic lows. Rest assured that you can’t go far wrong these days, no matter which direction you go in.

“The cost of choosing the wrong term has probably never been lower,” says McLister.

Transitioning from Renter to Homeowner

 Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. That’s why it’s essential to surround yourself with a team of experts – including both a mortgage and real estate professional – to walk you through the steps to home ownership, answer all of your questions and concerns, help you decide what kind of home you can afford and get you pre-approved for a mortgage. The mortgage professionals at Dominion Lending Centres are available anytime day or evening to help get you started.

 With interest rates still hovering around “emergency” levels – low rates never before seen by your parents and even your grandparents – now is an ideal time for first-time homebuyers to embark upon homeownership.

 Down payment

The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.

 Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

 Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. You must, however, stay with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.

 Last year, a $5,000 increase was made to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

 And if you’re part of a couple making a home purchase together, you can each withdraw up to $25,000 from your RRSPs.

 Educating and coaching

There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you really need, therefore, is education and coaching as opposed to being bombarded with more information.

 Speaking to a mortgage professional at Dominion Lending Centres in order to obtain a pre-approval prior to setting out home shopping can help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. Real examples can go a long way in showing you what it costs to buy a home in your area versus what you’re currently paying in rent. For instance, if a renter is currently paying $800 per month, with that same payment (including taxes) they could afford to buy a $120,000 home. And assuming real estate values increase 2% per year over the next five years, the new homeowner would have accumulated $27,000 in equity in their home. If they continue renting, however, this $27,000 has generated equity in someone else’s home.

Many homeowners these days are willing to get their hands dirty with home improvement projects in the hopes of saving money – especially with the fabulous free courses being run by many home improvement superstores on an ongoing basis.

But although some projects can be tackled by homeowners, the do-it-yourself (DIY) route isn’t always the most economical – or safest, for that matter.

It’s often difficult to determine if a project entails more than you can realistically handle. Most people tend to gauge the complexity of a project by doing research online, as some DIY websites grade a project’s difficulty. But you should also look at the tools that are required for the job. If you come across complex tools you know little about, it may be best to call in an expert.

If you’re unsure about your ability to correctly finish a project, get an expert opinion before proceeding. Sometimes, you may end up spending more money to repair a bungled DIY job than if you had hired someone to do it right from the onset of the project.

Following are some examples of when you may want to consider turning to a pro:

When safety is an issue. Getting involved with your home’s electrical system can be risky. Not only could you be electrocuted, but doing a job incorrectly could also create a safety hazard within your home’s structure. Another often unsafe DIY project includes extending a gas line. If you don’t know how to check for gas leaks, for instance, this DIY project could lead to an explosion or carbon monoxide poisoning. As well, if you’re considering tackling a project that involves heights, make sure you have the know-how to safely complete the job or call in an expert. Even some power tools can be beyond your capabilities and result in serious injury or death. It’s always important to remember that potential money savings aren’t worth risking safety.

When water is involved. Leaks and water damage can lead to more costly and complicated repairs. If left unfixed, they can lead to mould, which affects air quality and, if found during an inspection, can be a deal breaker on a home sale. Water-related projects don’t have to strictly involve your home’s pipes. Putting in a skylight may seem like a DIY job you can handle. Do it incorrectly, however, and you could end up with a leaky roof, water damage and mould.

If the costs of materials or tools are too high. Sometimes the costs of materials and the expense associated with making a mistake are enough to make hiring an expert a no-brainer. For something like crown moulding, for instance, you need an expensive tool and the material itself is costly. A kitchen cabinet can cost a couple hundred dollars and, if you order incorrectly, there may be a restocking fee and special orders may be non-returnable. Being off on measurements for granite countertops can also prove to be a costly error.

If the project is too big. If you’re planning on replacing all the windows in your home or remodelling your kitchen, think twice about how much of the project you want to take on yourself. Often, you can leave the heavy lifting to the experts, and work on the finishing touches, such as painting or tiling backsplashes. But, while installing hardwood or laminate flooring can be a good DIY project, its complexity will largely be determined by its scale. For instance, installing laminate flooring in a small, square bedroom is often manageable for homeowners to do on their own. But doing a larger-scale flooring project – involving a transition between rooms or perhaps around a kitchen island – is where people often get tripped up.

If you decide to call in an expert, make sure you do your research, get multiple quotes, ask friends and family for referrals and check references. Unfortunately, there are many contractors who claim to know what they’re doing and then get in over their heads, which could end up costing you in the end as well.

Remember that when doing renovations, I may be able to help find an economical financing solution for you by accessing your home equity