Willowdale Asset Management Launches as Premier Owner and Manager of Leading Real Estate Businesses

Vaughan, Ontario, Dec. 02, 2024 (GLOBE NEWSWIRE) — Willowdale Asset Management, formerly the corporate division of Empire Communities, today announces its official launch as a diversified real estate asset manager, overseeing seven distinct businesses across the industry. Headquartered in Toronto, Ontario, Willowdale’s legacy dates to its founding in 1993, growing from a single-project homebuilding company into a dynamic, vertically integrated real estate asset manager with nearly $5 billion in assets under management across North America.

Purchasing a new home is an exciting experience, filled with significant milestones and financial considerations. Before embarking on this venture, it’s essential to understand the nuances of deposits, down payments, and closing costs to make informed and confident decisions about your new home. To help, we break down these three terms below to make homebuying easier than ever.

When you purchase a home with Empire, your journey begins with a deposit, specifically the earnest money deposit. This initial deposit is required to secure the contract and is calculated as a percentage of the lot premium, base price of the house, and structural items. If you’re customizing your home from the ground up, additional deposit funds — a percentage of your Design Studio selections — is required after completing the design phase.

Our sales consultants can provide you with an estimated breakdown of the deposit and outline when they’re due. It’s important to note that 100% of the deposit provided at the contract and design stages is credited to you at closing, effectively reducing your down payment for the mortgage.

The mortgage down payment is a significant financial aspect of the homebuying process, representing your commitment to the investment. Typically based on the loan program, the down payment is paid at the time of closing. It can range from as low as 3% to as high as 20%, providing you with instant equity in your new home.

The deposit funds you’ve given to us are factored into the down payment calculation. The more you contribute upfront, the less you need to finance, resulting in lower monthly mortgage payments.

Closing costs are the final piece of the puzzle, involving a lump sum of money paid by the buyer at the scheduled closing date. This sum comprises the down payment plus the closing costs, minus any deposit or design funds given to us, and may also include closing cost incentives we offer.

To estimate your closing costs, plan for approximately 2% to 2.5% of the final purchase price of the home. Empire’s preferred lenders can provide accurate estimates for all mortgage-related costs, ensuring you’re well-prepared for this crucial step.

Example: You’re purchasing an Empire home with a final price of $500,000. Planning to make a 10% ($50,000) down payment, you’ve already paid a $23,000 deposit during the contract and design phases. Closing costs amount to $12,500, with Empire providing a $3,000* seller credit to help cover some of these costs.

In this scenario, your total amount due at closing would be roughly $36,500, calculated as follows: $50,000 (down payment) + $12,500 (closing costs) – $23,000 (deposit/design money) – $3,000 (Empire’s closing cost incentive).

*Amount varies by community.

Next, learn how to prepare for Empire’s new home releases, and discover why new homes are still the smarter long-term choice.

Aspiring homeowners, are you eagerly awaiting our next home release? Well, it might be time to start preparing. With the level of demand there is for our build-to-order homes, we’ve implemented steps to help manage the process of purchasing a home. In this guide, we’ll explain the essential steps to take before a new sales release to help secure that dream home.

Next, discover why new homes are still the smarter long-term choice and everything you need to know before buying a home in the Carolinas.

Wealth creation involves accumulation of assets and increasing net worth over an extended period of time. Among one of the most common methods to achieve this is purchasing a home. Read on to learn how investing in a new Empire home can help you build long-term wealth.

This concept combined with real estate appreciation long-term increases your net worth, and makes managing your finances and planning for the future easier. When owning and paying off your own loan, your value of assets increases over time which becomes evident if you eventually sell your home.

Other investments sometimes require a capital gains tax on any return that you make, depending on your taxable income. The profit you make from selling a home, however, cannot be taxed if the amount is $250,000 or less for a single borrower.

And although the real estate market has been fickle over the past four decades, residential real estate has increased in value over time, making it a good investment decision at any point.

Overall, it makes sense to start investing early so investments have more time to appreciate. This can help shape the financial skills while your children are young, setting them up for success in the future.

Our preferred lenders also provide great expertise, access to special incentives, and financing options that make purchasing a home easier. Learn more about some of the industry’s top mortgage lenders, including Interlinc Mortgage (Houston area) and Movement Mortgage (San Antonio and Austin area), that we’ve teamed up with to help you build your wealth and secure a new home mortgage.

Looking to learn more about the homebuying process? Learn how to find the right neighborhood for you, and read our homebuyers’ guide to finances.

Discover available homes for sale in Houston, Austin, and San Antonio today.

*Disclaimer: This post is solely for informational purposes and is not a substitute for professional advice. We encourage you to always work with a financial expert to discuss your best options and what is right for you.

When it comes to choosing a place to call home, the options can seem endless. You might be drawn to the charm of older homes with their unique character and historical features. However, there’s a strong case for considering a new home over an older, resale one. Let’s explore why new homes are still the premier choice for modern homebuyers looking for a fresh start.

Next, learn how to read a floor plan and discover the ultimate moving guide.

From rate buydowns to design appointments and everything in between, we’ve compiled some of our most helpful homebuyer resources to make your experience of purchasing a new home seamless. Get ready to expand your knowledge and embark on one of the most exciting journeys of your life.

Looking for more resources to make the most of your homebuying experience? Check out our tips to prepare your finances when looking for a new home and learn what it means to buy a new home vs. resale in Charlotte.

On the hunt for a new home in a rural or suburban neighborhood? You may be eligible to receive a USDA loan which makes homeownership more attainable. This type of loan aims to promote rural development and provide affordable financing options for qualified individuals. We sat down with Michael Nassafer, Market Leader of our preferred lender, Movement Mortgage, for his perspective on all things USDA loans. As a USDA loan expert himself, he explains the benefits, eligibility requirements, and unique advantages of this loan option.

What is a USDA loan?

A USDA loan is a government-issued loan program designed to support rural development and provide accessible financing options.

What properties and households qualify for USDA loans?

To qualify for a USDA loan, your property and household must meet the following criteria:

• Location: The property must be in a USDA-approved rural area, as determined by the USDA map based on census data.
• Property type: USDA loans are available for single-family homes, townhomes, and eligible condominiums that are approved by Fannie Mae or Freddie Mac.
• Income limits: Borrowers must fall below the max income limits. USDA loans have income restrictions based on the area’s median income. These limits vary depending on household size and the specific location.
• Debt-to-income ratios: Borrowers must meet certain debt-to-income ratio guidelines to ensure they can manage their monthly mortgage payments.
• Minimum credit score: While there is no strict minimum credit score requirement for USDA loans, a score of at least 640 is generally preferred.

What are the benefits of obtaining a USDA loan compared to other loan options?

Obtaining a USDA loan offers several benefits, including:

• Zero down payment: Unlike conventional or FHA loans that require a down payment, USDA loans offer 100% financing, making homeownership more attainable.
• Competitive interest rates: Lenders can offer favorable interest rates due to the USDA guarantee.
• Low monthly mortgage insurance: USDA loans have low monthly mortgage insurance fees compared to conventional loans, which require private mortgage insurance for low down-payment options.
• Flexible credit guidelines: While a credit score of 640 or higher is preferred, USDA loans have more flexible credit requirements compared to conventional loans.
• Potential to combine: USDA loans can be combined with other financing or assistance programs, such as the Mortgage Credit Certificate (MCC). The MCC can help reduce monthly property tax payments, providing additional financial benefits to borrowers.

Are there any upfront or ongoing fees associated with USDA loans that borrowers should be aware of?

A few considerations:

• Upfront guarantee fee: The USDA charges an upfront guarantee fee, which can be rolled into the loan amount.
• Annual fee: USDA loans also include an annual fee, which is calculated based on the loan’s current balance and is paid as part of the monthly mortgage payment.

What is the process of applying for a USDA loan, and how long does it typically take to get approved?

To apply for a USDA loan, borrowers should follow these steps:

• Find a USDA-approved lender: Work with a lender experienced in USDA loans, such as Movement Mortgage, to guide you through the process.
• Gather necessary documents: Prepare documents such as income verification, bank statements, credit history, and identification.
• Complete the application: Submit the application to the lender, providing accurate and thorough information.
• Wait for approval: The approval process takes approximately 30 days from application to closing, depending on various factors.

Looking to expand your knowledge on all things related to mortgages? Click here to debunk 5 financing myths with Movement Mortgage, and learn all there is to know about rate buydowns.

Wealth creation is the process of accumulating assets and increasing net worth over time. There are many ways to do this, but one of the most popular and reliable methods is by purchasing a home. Read on to learn the benefits of real estate investment, and how your new Empire home can help you build long-term wealth.

Amortization allows borrowers to pay off a debt gradually and systematically, making it easier to manage their finances and plan for the future, assisting with stability and overall wealth creation. In contrast to renting, only the landlord receives a long-term benefit. When owning and paying your own loan, your wealth and value of assets increases over time which becomes evident should you choose to sell your home in the future.

Stuart further explains that at a rate of 5.7% appreciation each year, your $500,000 home would be worth about $780,000 in a decade. Your initial cash-out at purchase of $25,000 leveraged itself into approximately $280,000 of net-worth accumulation, yielding more than a 10x return by simply making your house payments. Purchasing a home enables this to be passively accomplished, which grows your initial investment exponentially and builds wealth long-term.

And while there have been fluctuations in the real estate market over the past four decades, residential real estate has appreciated in value over time — making it a sound investment at any point.

Learn more about some of the industry’s top mortgage professionals, including BankSouth Mortgage, that we’ve teamed up with to help you build your wealth and secure a new home mortgage.

Looking to learn more about the homebuying process with Empire? Check out our resources for new homebuyers and learn about the advantages of using one of our preferred lenders.

*Disclaimer: This post is solely for informational purposes and is not a substitute for professional advice. We encourage you to always work with a financial expert to discuss your best options and what is right for you.

You may have heard the term “rate buydown” on your new home search in the Carolinas, but what does it mean? We asked Flynn Harris of Atlantic Bay Mortgage Group to give us the details on how this financing arrangement works to help you understand its benefits.

What is a Rate Buydown?

A buydown is a way for a borrower to obtain a lower interest rate. When offered by one of our preferred lenders in the Carolinas, Empire will purchase discount points against the buyer’s mortgage loan or pay interest upfront at closing. It allows the buyer to make lower mortgage payments for the first few years of their loan, with payments increasing slightly in the third year.

How it Works

Depending on your overall goals, this is a great way to reduce your monthly mortgage payment without taking on additional risk with other loan options such as Adjustable-Rate Mortgages (ARMS) since buydowns are fixed-rate programs. They can also be used on almost all loan types such as VA, Conventional and FHA, and the prepaid interest required upfront is usually paid for by the seller.

“Mortgage interest rates have trended higher during the last year. A 2-1 buydown is a temporary interest rate buydown for the first 2 years of the loan, lowering the interest rate by 2% for the first year of monthly payments and then by 1% for the second year of monthly payments,” says Harris. “The interest rate then goes back to the original rate for years 3 through 30. Essentially, it allows homeowners to save money by reducing the principal and interest payments collected during the 2-year buydown period.”

Types of Rate Buydowns

While there are a few rate buydown structures to choose from, the most common is a 2-1 buydown. With a 2-1 program, monthly mortgage payments will be at their lowest in the first year and will increase slightly in the following year. The full interest rate will come into effect in the third year of the loan. In most cases, a 2-1 buydown will cost fewer points than other buydown programs, but the savings may also be less. Take a look at our example below illustrating how this rate buydown structure works.

The Benefits

Buydowns reduce your interest rate, making your dream home that much more attainable. In today’s market, they allow you to take advantage of low home prices and low payments, saving you money during the initial loan term and allowing you to qualify more easily for your mortgage.

If and when rates drop, you can refinance into a lower monthly payment for the remainder of the term. With your funds being held in an escrow account, the balance of the escrow fund will be applied to your principal balance. In other words, you won’t lose any of your incentives like a permanent rate buydown.

Is it Right For Me?

When it comes to finances, the best way to determine what’s right for you is to speak with a Mortgage Loan Officer. These industry experts can point you in the direction of the best financing options based on your individual scenarios, goals and needs.

Next, discover our preferred lenders, what you need to know about securing a mortgage, and the top reasons to buy a new home in the Carolinas with Empire.

You may have heard the term “rate buydown” on your new home search in Austin, Houston or San Antonio, but what does it mean? We asked Benito Solis of Interlinc Mortgage to give us the details on how this financing arrangement works to help you understand its benefits.

What is a Rate Buydown?

A buydown is a way for a borrower to obtain a lower interest rate by purchasing discount points against their mortgage loan or paying interest upfront at closing. It allows them to make lower mortgage payments during higher interest rate conditions either for the first few years of their loan or for its full life, depending on which structure is chosen.

How it Works

Depending on your overall goals, this is a great way to reduce your monthly mortgage payment without taking on additional risk with other loan options such as Adjustable-Rate Mortgages (ARMS) since buydowns are fixed-rate programs. They can also be used on almost all loan types such as VA, Conventional and FHA, and the prepaid interest required upfront is usually paid for by the seller.

“One of my favorite features of buydowns is that any upfront interest you paid or anyone paid on your behalf is never lost,” says Solis. “If you choose a 3-2-1 buydown and rates fall in year two, the remaining upfront interest that isn’t used will be deducted from your loan balance.”

Types of Rate Buydowns

While there are a few rate buydown structures to choose from, the most common are 3-2-1, 2-1, and permanent rate buydowns. With a 3-2-1 program, monthly mortgage payments will be at their lowest in the first year and will increase slightly in the following two years. The full interest rate will come into effect in the fourth year of the loan.

A 2-1 buydown is very similar in that it has the same permanent payment structure as a 3-2-1 buydown, but the full interest rate comes into effect in year three. In most cases, a 2-1 buydown will cost fewer points than a 3-2-1 buydown, but the savings will also be less.

While a 3-2-1 and 2-1 buydown will temporarily reduce your mortgage payments, a permanent buydown will lower the interest rate for the entire life of your loan. Take a look at our examples below illustrating how these rate buydown structures work.

The Benefits

Buydowns reduce your interest rate, making your dream home that much more attainable. In today’s market, they allow you to take advantage of low home prices and low payments, saving you money and allowing you to qualify more easily for your mortgage.

If you choose a 3-2-1 or 2-1 buydown structure and rates drop, you can refinance at any time with no pre-payment penalty. Any remaining funds being held in your escrow account will not be lost and will be applied to your principal balance.

Is it Right For Me?

When it comes to finances, the best way to determine what’s right for you is to speak with a Mortgage Loan Officer. These industry experts can point you in the direction of the best financing options based on your individual scenarios, goals and needs.

Next, discover the benefits of working with one of our preferred lenders, the 5 financing myths you should know and what to know about the homebuying process in Texas.