Thursday, December 11, 2008
Friday, November 28, 2008
Ways to welcome winter
As Canadians, we tend to think of winter as something
we need to endure, rather than something we can actually
enjoy. In this, we tend to differ from other northerly cultures, like Scandinavia,
where both rural and urban citizens are more likely to celebrate the cold winter season as part of
the natural heritage. They’re a hardy lot. Us, we prefer to shiver our way from one warm place
to another… and preferably quickly.
But instead of cursing the cold this winter, try finding some ways to celebrate winter – whether
you’re inside or out:
1. Try a new outdoor winter sport. Take a
snowboard lesson if you haven’t tried this
great sport yet. If you haven’t been snowshoeing
since childhood, you’ll be surprised to find
new light-weight, comfortable and almost elegant
snowshoes out there on the market. It’s a
completely different sport than the one you
may remember. Try something new.
2. Rediscover your childhood. Nothing beats a
hill, a toboggan and a group of family or
friends. Age doesn’t matter either – so long as
the tobogganers are fit enough for the tough
part: slogging back up the hill with toboggan
in tow. This sport is just as much fun as you
remember. And the hot chocolate at the end of
the day tastes just as good as ever.
3. Go for walks in the sunshine. There’s less
sun in the winter months – much less in some
areas of the country. So if you get a sunny winter
day, bundle up and head out to enjoy the
winter. Be sure to dress for the weather… and
don’t forget your sunglasses.
4. Be a winter animal detective. Look for animal
tracks in the snow and try to figure out
what kind of animal made them and what they
were doing.
5. Find a starry window. On a clear winter
night, wrap yourself in a warm blanket, turn
the lights off, and curl up to look at the stars.
Find the Big and Little Dippers, and then try to
identify all the constellations you can. If you’re
very lucky, you may even spot the Northern
Lights.
6. Have a skating party. If you don’t have a little
ice pad of your own, you may be able to
rent a school or public rink. Cook a big pot of
chili and have lots of mugs and spoons so
everyone can refuel quickly.
7. Host a games night. Put a fire in the fireplace,
set out some snacks and dig out all
your old board games. Risk, Monopoly, or
Scrabble … it’s a great way to spend a winter
evening with friends.
8. Make ice lanterns! Fill a bucket with water,
and then float a smaller container (like a topless
juice can) in the centre. You can use tape
to hold the juice can down, or set a heavy
object like a stone tile on top. Set outside in
freezing weather, or use your chest freezer. To
unmold, pour some lukewarm water into the
juice can to loosen it, and then set the bucket
into a bath of lukewarm water to release your
ice lantern. Set a votive candle in your ice
lantern by your front door. Lots of time or lots
of buckets? Make a row leading to the house!
9. Catch up on reading! Get out a stack of
books, find a warm chair and catch up on
those novels you’ve been meaning to read. It’s
a perfect way to spend a quiet winter afternoon
or evening.
10. Perfect your homemade hot chocolate.
This recipe couldn’t be simpler: chop up 6 oz.
of your favourite semisweet chocolate, and
put into a heat-proof pitcher along with a few
cinnamon sticks. Heat 4 cups of milk to almost
scalding, then pour into pitcher and stir until
chocolate is melted.
Whatever you do, take pictures, so you can remember your winter fun!
we need to endure, rather than something we can actually
enjoy. In this, we tend to differ from other northerly cultures, like Scandinavia,
where both rural and urban citizens are more likely to celebrate the cold winter season as part of
the natural heritage. They’re a hardy lot. Us, we prefer to shiver our way from one warm place
to another… and preferably quickly.
But instead of cursing the cold this winter, try finding some ways to celebrate winter – whether
you’re inside or out:
1. Try a new outdoor winter sport. Take a
snowboard lesson if you haven’t tried this
great sport yet. If you haven’t been snowshoeing
since childhood, you’ll be surprised to find
new light-weight, comfortable and almost elegant
snowshoes out there on the market. It’s a
completely different sport than the one you
may remember. Try something new.
2. Rediscover your childhood. Nothing beats a
hill, a toboggan and a group of family or
friends. Age doesn’t matter either – so long as
the tobogganers are fit enough for the tough
part: slogging back up the hill with toboggan
in tow. This sport is just as much fun as you
remember. And the hot chocolate at the end of
the day tastes just as good as ever.
3. Go for walks in the sunshine. There’s less
sun in the winter months – much less in some
areas of the country. So if you get a sunny winter
day, bundle up and head out to enjoy the
winter. Be sure to dress for the weather… and
don’t forget your sunglasses.
4. Be a winter animal detective. Look for animal
tracks in the snow and try to figure out
what kind of animal made them and what they
were doing.
5. Find a starry window. On a clear winter
night, wrap yourself in a warm blanket, turn
the lights off, and curl up to look at the stars.
Find the Big and Little Dippers, and then try to
identify all the constellations you can. If you’re
very lucky, you may even spot the Northern
Lights.
6. Have a skating party. If you don’t have a little
ice pad of your own, you may be able to
rent a school or public rink. Cook a big pot of
chili and have lots of mugs and spoons so
everyone can refuel quickly.
7. Host a games night. Put a fire in the fireplace,
set out some snacks and dig out all
your old board games. Risk, Monopoly, or
Scrabble … it’s a great way to spend a winter
evening with friends.
8. Make ice lanterns! Fill a bucket with water,
and then float a smaller container (like a topless
juice can) in the centre. You can use tape
to hold the juice can down, or set a heavy
object like a stone tile on top. Set outside in
freezing weather, or use your chest freezer. To
unmold, pour some lukewarm water into the
juice can to loosen it, and then set the bucket
into a bath of lukewarm water to release your
ice lantern. Set a votive candle in your ice
lantern by your front door. Lots of time or lots
of buckets? Make a row leading to the house!
9. Catch up on reading! Get out a stack of
books, find a warm chair and catch up on
those novels you’ve been meaning to read. It’s
a perfect way to spend a quiet winter afternoon
or evening.
10. Perfect your homemade hot chocolate.
This recipe couldn’t be simpler: chop up 6 oz.
of your favourite semisweet chocolate, and
put into a heat-proof pitcher along with a few
cinnamon sticks. Heat 4 cups of milk to almost
scalding, then pour into pitcher and stir until
chocolate is melted.
Whatever you do, take pictures, so you can remember your winter fun!
Courtesy Mortgage Intelligence
HO Address: 2900-3300 Bloor Street West, 9th Floor Centre Tower Etobicoke ON M8X 2X9
Wednesday, November 5, 2008
Take Control of Your Home The equity you’ve built up in your home can be a powerful financial planning tool. Through mortgage refinancing, you can access that equity to pay for home improvements, consolidate debt,purchase a vacation property or invest in your future.
The term ‘refinance’ means to pay in full and discharge a pre-existing mortgage with the proceeds of a new mortgage. When a borrower secures a new mortgage that is larger than the pre-existing mortgage, it is called an ‘equity take-out’.
In some instances, rising levels of consumer debt – often financed by high-interest credit cards – and relatively low mortgage rates prompt homeowners to look more closely at how their homes can help them increase liquidity and improve their overall financial situation.
In other cases, homeowners leverage mortgage refinancing for renovations that, in turn, boost the values of their homes.
If you are considering mortgage refinancing, you will need to first thoroughly review your existing financial situation and mortgage commitments with your financial advisors. Potential short-term gains, such as lower monthly payments, should align with your long-term planning goals. As with so many financial planning exercises, one size does not fit all.
Why Refinance?
There are many reasons to use your home equity to secure additional credit at competitive interest rates.
• Debt consolidation – since mortgage rates are generally lower than other forms of borrowing, you can use the equity in your home to pay in full high interest/high payment debts such as credit cards.
• Home renovations - the equity in your home can be used to finance home improvements, which can potentially increase your home’s value.
• Second property - by leveraging your home equity, you could purchase an investment property or vacation property.
• Investments - the equity in your home can be reinvested in other investments, such as mutual funds or stocks. In fact depending on your investments and your circumstances, a portion of the interest you pay on your mortgage may be tax deductible.
• Education - you can refinance your home to fund education costs for your children, or for yourself, as an alternative to liquidating other investments or RRSPs.
• Retirement planning – your home equity can also be used to make RRSP contributions. In many cases, the compounding benefits of long-term investments and tax deferrals could outweigh the penalty costs of a discharging an existing mortgage.
Calculating the Benefits
Depending on your situation, you might consider one of the following approaches when refinancing your home:
• breaking your existing mortgage and applying for a new one,
• increasing your existing mortgage with your existing lender,
• taking a second mortgage,
• applying for a home equity secured line of credit.
Speak with a Mortgage Intelligence independent consultant to assess the potential benefits and compare your current debt payment schedule against one that takes advantage of a refinanced mortgage. E-mail Larry Broadley today. larryb@hay.net
Before making any decisions about your mortgage, it is a good idea to complete a review of your current financial situation. Below are some key items to document as you get started.
The term ‘refinance’ means to pay in full and discharge a pre-existing mortgage with the proceeds of a new mortgage. When a borrower secures a new mortgage that is larger than the pre-existing mortgage, it is called an ‘equity take-out’.
In some instances, rising levels of consumer debt – often financed by high-interest credit cards – and relatively low mortgage rates prompt homeowners to look more closely at how their homes can help them increase liquidity and improve their overall financial situation.
In other cases, homeowners leverage mortgage refinancing for renovations that, in turn, boost the values of their homes.
If you are considering mortgage refinancing, you will need to first thoroughly review your existing financial situation and mortgage commitments with your financial advisors. Potential short-term gains, such as lower monthly payments, should align with your long-term planning goals. As with so many financial planning exercises, one size does not fit all.
Why Refinance?
There are many reasons to use your home equity to secure additional credit at competitive interest rates.
• Debt consolidation – since mortgage rates are generally lower than other forms of borrowing, you can use the equity in your home to pay in full high interest/high payment debts such as credit cards.
• Home renovations - the equity in your home can be used to finance home improvements, which can potentially increase your home’s value.
• Second property - by leveraging your home equity, you could purchase an investment property or vacation property.
• Investments - the equity in your home can be reinvested in other investments, such as mutual funds or stocks. In fact depending on your investments and your circumstances, a portion of the interest you pay on your mortgage may be tax deductible.
• Education - you can refinance your home to fund education costs for your children, or for yourself, as an alternative to liquidating other investments or RRSPs.
• Retirement planning – your home equity can also be used to make RRSP contributions. In many cases, the compounding benefits of long-term investments and tax deferrals could outweigh the penalty costs of a discharging an existing mortgage.
Calculating the Benefits
Depending on your situation, you might consider one of the following approaches when refinancing your home:
• breaking your existing mortgage and applying for a new one,
• increasing your existing mortgage with your existing lender,
• taking a second mortgage,
• applying for a home equity secured line of credit.
Speak with a Mortgage Intelligence independent consultant to assess the potential benefits and compare your current debt payment schedule against one that takes advantage of a refinanced mortgage. E-mail Larry Broadley today. larryb@hay.net
Before making any decisions about your mortgage, it is a good idea to complete a review of your current financial situation. Below are some key items to document as you get started.
Your Home’s MarketValue: $
What do you estimate is the current market value of your home?
Your CurrentMortgage: $
What was the principal balance of your mortgage at start of term?
What will the principal balance of your mortgage balance be at end of your term?
What is the original start date of your mortgage term?
When does your mortgage mature/renew?
What is the amortization period of your mortgage?
Who is your current lender?
What interest rate are you paying now?
What is your payment frequency (monthly, weekly, bi-weekly)?
How much are your regular payments?
PrepaymentPenalties for Your Existing Mortgage: $
You will likely be required to pay a prepayment penalty if your mortgage is discharged mid-term. Lender prepayment policies should be detailed in your mortgage documentation.
Total monthlypayments on existing obligations $
Includes automobile loans, student loans, credit cards, alimony, etc.
Gross annual income $
our family’s total income from all regular sources.
Total monthlypayments on existing obligations $
Includes automobile loans, student loans, credit cards, alimony, etc.
Gross annual income $
our family’s total income from all regular sources.
This is YourMortgage Profile
Once you have defined your mortgage profile, work with Larry Broadley a mortgage professional to review all of your options. larryb@hay.net
FSCO Lic.10428
Central Office: 2900-3300 Bloor St. W., Centre Tower - 9th Floor, Etobicoke, ONM8X 2X3 ® Registered trademark of Mortgage Intelligence Inc. © Copyright 2008, Mortgage Intelligence Inc., all rights reserved.
Central Office: 2900-3300 Bloor St. W., Centre Tower - 9th Floor, Etobicoke, ONM8X 2X3 ® Registered trademark of Mortgage Intelligence Inc. © Copyright 2008, Mortgage Intelligence Inc., all rights reserved.
Thursday, June 26, 2008
Changes, Changes, Changes in Grand Bend
Sanders bites the dust as crews begin tearing down this famous Grand Bend Landmark on the Beach.Monetta Menards before that Sanders comes down to make way for 6 new condos to be built this Fall.
Other changes in Town have the former Finnegans being replaced by Archies Sugar Shack. The former Grapevine/Coconut Bay is now Grandpa Jimmy's Scottish Bakery.
The Greek is now Paddington's Pub and we're anxiously awaiting the opening of The Pirates Eatery on River Road down by the Harbour where Capt Nemos was. Purdy's Landing beside that has three new artist studios who have just opened including a revamped River Road Gallery.
Wednesday, May 21, 2008
READY TO REINVENT YOUR SPACE?
The lure of a stunning gourmet kitchen or sparkling
spa-style bathroom may have you chomping at the
bit to begin a home renovation but if you heed the
advice of experienced renovators, pre-planning and
advanced preparation are the secrets to renovation
success. Here’s a helpful checklist to get your renovation
started on the right track.
Prepare a realistic budget
Determine how much you are prepared to spend
on your renovation. Obtain a few quotes from
professional renovators to see if your budget is
realistic. As you refine your plans, your budget can
be fine-tuned. Remember to boost your budget by
at least 10 % for unexpected costs.
Decide what you want to do
For most people, this is the fun part – flipping
through magazines and watching home decorating
shows to get inspired. But it is also one of the most
critical phases in any home renovation. Create a
folder with photos and examples of what you hope
to achieve and include a list of issues you want
your renovation to resolve.
Arrange for financing
Get financing in place early to plan your renovation
with confidence. Leveraging the equity in your
home is often the best option. As a secured loan,
you can usually obtain an attractive interest rate
and with flexible repayments, this option can be
easy on your cash flow. Other alternatives include
refinancing your existing mortgage or arranging
for a second mortgage on your home. To obtain
the best possible terms, be sure to work with an
independent mortgage professional who can shop
the market for you.
Select the right team
You’ll want to entrust your project to people known
for their quality of work. Depending on what your
renovation involves, you may need a designer
to come up with an overall design and plan.
Your contractor, who does the construction or
subcontracts it to other trades people, will work with
you or your designer to implement your plan.
Ask for recommendations from friends and family,
interview prospective candidates and always
check references.
Stick with your plan
With a sound plan, reasonable budget, financing
in place and a team that you trust, your renovation
can get off on the right track. To keep it there,
minimize changes and make yourself available for
decisions so that your renovations can proceed on
schedule. Remember to keep your eye on the prize
– it won’t be long before the dust settles and you
can enjoy your amazing new space.
According to the Canada Mortgage and Housing
Corporation (CMHC), Canadians spend substantial
sums on renovations – they project more than
$50 billion will be spent on home improvement
projects in 2008. To make sure you get the most for
your renovation dollars, follow the lead of experienced
renovators and plan ahead for success.
spa-style bathroom may have you chomping at the
bit to begin a home renovation but if you heed the
advice of experienced renovators, pre-planning and
advanced preparation are the secrets to renovation
success. Here’s a helpful checklist to get your renovation
started on the right track.
Prepare a realistic budget
Determine how much you are prepared to spend
on your renovation. Obtain a few quotes from
professional renovators to see if your budget is
realistic. As you refine your plans, your budget can
be fine-tuned. Remember to boost your budget by
at least 10 % for unexpected costs.
Decide what you want to do
For most people, this is the fun part – flipping
through magazines and watching home decorating
shows to get inspired. But it is also one of the most
critical phases in any home renovation. Create a
folder with photos and examples of what you hope
to achieve and include a list of issues you want
your renovation to resolve.
Arrange for financing
Get financing in place early to plan your renovation
with confidence. Leveraging the equity in your
home is often the best option. As a secured loan,
you can usually obtain an attractive interest rate
and with flexible repayments, this option can be
easy on your cash flow. Other alternatives include
refinancing your existing mortgage or arranging
for a second mortgage on your home. To obtain
the best possible terms, be sure to work with an
independent mortgage professional who can shop
the market for you.
Select the right team
You’ll want to entrust your project to people known
for their quality of work. Depending on what your
renovation involves, you may need a designer
to come up with an overall design and plan.
Your contractor, who does the construction or
subcontracts it to other trades people, will work with
you or your designer to implement your plan.
Ask for recommendations from friends and family,
interview prospective candidates and always
check references.
Stick with your plan
With a sound plan, reasonable budget, financing
in place and a team that you trust, your renovation
can get off on the right track. To keep it there,
minimize changes and make yourself available for
decisions so that your renovations can proceed on
schedule. Remember to keep your eye on the prize
– it won’t be long before the dust settles and you
can enjoy your amazing new space.
According to the Canada Mortgage and Housing
Corporation (CMHC), Canadians spend substantial
sums on renovations – they project more than
$50 billion will be spent on home improvement
projects in 2008. To make sure you get the most for
your renovation dollars, follow the lead of experienced
renovators and plan ahead for success.
Larry Broadley Mortgage Broker
Central Office: 3250 Bloor Street West, East Tower, Suite 1400, Toronto, ON M8X 2X9 ® Registered trademark of Mortgage Intelligence Inc. © 2007, Mortgage Intelligence Inc., all rights reserved.
Wednesday, April 30, 2008
Is a Recreation Property Right For You
Whether it’s called a cottage, a chalet or a
country house, the lure of a recreation property far
from the hustle of the city is too much for many of
us to resist.
As Baby Boomers get ready to retire, they’re
driving up interest in these properties – especially
with the attractive financing options available for
second homes. If a recreation property is on your
radar, here are some important questions to ask
yourself before you make the leap:
How would a recreation property impact
my lifestyle?
Consider how a recreation property would fit into
the lifestyle you envision for you and your family –
both the benefits and the drawbacks. In addition to
the fun and leisure aspects of a recreation property,
you’ll also need to factor in the time and cost
involved in year-round property upkeep.
Can I afford the purchase price and/or
a mortgage?
You want to ensure you can afford not only the
purchase price or mortgage, but also the ongoing
– and often unexpected – expenses that are an
inevitable part of home ownership. Work with a
mortgage broker ( Larry Broadley )to fully assess your recreation
property ownership options. Many brokers and
lenders offer specialized services and mortgage
products specifically for second homes.
How far am I prepared to travel?
Peace and quiet often come with a price: distance.
Be realistic about the time you are willing to commit
to travel to and from your recreation property. You
may even want to take ‘test drives’ on busy weekends
to determine travel times during peak season.
Who should I call?
As you would with a primary property, call a
professional real estate agent ( also Larry Broadley )who knows the
region where you would like to buy, and work
with your mortgage broker to secure financing to
determine what you can afford before you begin.
For more information contact :
Larry Broadley Mortgage Broker Mortgage Intelligence and Real Estate Broker RE/MAX Bluewater Realty
1 877 338 5899
Central Office: 3300 Bloor Street West, Centre Tower, 9th floor, Suite 2900, Toronto, ON M8X 2X3 ® Registered trademark of Mortgage Intelligence Inc. © Copyright 2008, Mortgage Intelligence Inc., all rights reserved.
RE/MAX Each office is independently owned and operated
Monday, April 14, 2008
Relax. Your cottage by the lakeisn’t just a dream
As you breathe in that deep breath of fresh air you know you’ve found that idyllic spot where you’ve always dreamed of spending your golden years. It’s the perfect cedar-shingled cottage right on the lake, where you can relax and enjoy the company of family and friends. Like a growing number of Canadians in their peak income years, a vacation property has always been part of your retirement plan and now that you’ve found it, only one step remains; financing it.
In the past, financing for a recreational property
has been more challenging than for a principal
residence, as traditional lending institutions have
found second homes to be a less than desirable
investment. With today’s booming recreational
property market, however, Canadians longing for a
summer, winter or all-season retreat are finding they
have other options.
A growing number of Canadians are factoring a
vacation property into their retirement planning.
While recreational property mortgages are still
relatively new to the market, they can provide
Canadians with an easy and affordable way to
make that cottage, chalet or retreat a reality.
A recreational property mortgage can help qualified
homebuyers make that beach sunset or ski chalet
possible with as little as 5 per cent down. Whether
a homebuyer is purchasing a waterfront home,
resort-style condominium or timeshare property, this
type of product can provide a mortgage on an
owner-occupied second property located in a known
vacation area. To make qualification even easier,
this product can also function as a blanket mortgage
utilizing a principal residence as additional collateral.
Vacation properties are more than just a financial
investment for most Canadians. They quite often
become the spot where families come together.
By visiting a Mortgage Intelligence agent,
Canadians can get the financing they need to realize
their vacation.
Central Office: 3300 Bloor Street West, Centre Tower, 9th floor, Suite 2900, Toronto, ON M8X 2X3 ® Registered trademark of Mortgage Intelligence Inc. © Copyright 2007, Mortgage Intelligence Inc., all rights reserved.
Larry Broadley
Mortgage Consultant
519 238 5899 of TF 1 877 338 5899
larry.broadley@migroup.ca
larrybroadley.com
larrybroadley.com
Wednesday, April 2, 2008
Have you heard about 40 year mortgages and their effect on fueling the Housing and Cottage Market? The following article by Ellen Roseman in the April 2nd Toronto Star tells moreThere's a revolution going on in Canada's housing market, one that is propping up prices and extending the boom.
More buyers are choosing mortgages with longer payback periods.
By stretching payments over 30 to 40 years (instead of the usual 25), they can enter the market sooner or buy a better property.
Mortgages with longer amortizations have caught on like a house on fire (pardon the pun).
"About 60 per cent of first-time buyers are opting for a 40-year mortgage," says Craig Alexander, deputy chief economist at TD Bank.
His explanation: Houses are now less affordable because prices have grown faster than household incomes.
"Prices have gone up 10 per cent a year between 2002 and 2007, while historically they have gone up only 4 to 5 per cent a year.
"If these longer amortization mortgages hadn't been around, the housing market would have cooled down a lot sooner."
There's a "huge adoption" of 40-year mortgages in Toronto, Calgary and Vancouver, where people stretch for affordability, says Catherine Adams, vice-president of home equity financing at Royal Bank of Canada. "I think it's given the housing market a boost and allowed prices to go up further than they would have otherwise."
The Canadian Association of Accredited Mortgage Professionals did a survey last fall that showed the product's appeal.
Mortgages with longer amortizations grew to 37 per cent of new home loans – and 9 per cent of outstanding mortgages.
"That's phenomenal, considering they have been around for only the last two to three years," says association president Jim Murphy.
Competition in mortgage insurance has accelerated new product development by lenders.
Canada Mortgage and Housing Corp., a federal government agency, used to have the market to itself.
Now it has three private-sector rivals from the United States (Genworth Financial, PMI Group Inc., AIG United Guaranty).
Another big U.S. firm (Mortgage Guaranty Insurance Corp.) has applied for a licence, Murphy says.
Is there too much innovation in lending? And is Canada headed down the same road as the United States?
That's the contention of Garth Turner, a Liberal MP and former business editor, who argues that lenders in Canada are flirting with a market collapse.
In his book, Greater Fool: The Troubled Future of Real Estate (Key Porter, $21.95) and his blog, http://www.greaterfool.ca/, he says the net effect of 40-year mortgages is no different from U.S. subprime mortgages.
"Both make buying easier and cheaper. Both lower the bar for loan qualifications. Both augment mortgage debt. Both sustain an overvalued market. Both lead to asset inflation.
"Will they both end badly?"
While 40-year mortgages may have extended Canada's real estate boom, most economists don't foresee an imminent U.S.-style bust.
"There's no evidence that house prices are set to decline in Canada," says Ted Tsiakopoulos, a CMHC market analyst in Toronto.
"Incomes are growing and we feel that's the most important factor that will support price growth."
The forces behind Canada's last housing crash in 1989 – high inflation, high interest rates and speculative buying – don't exist now.
In particular, says Alexander of TD Bank, you don't see house prices decline without significantly higher interest rates.
He predicts Canada's economy will slow until late 2009 and the Bank of Canada will cut rates by 1 to 1.5 percentage points.
"Falling interest rates are not consistent with the housing market running into major problems."
So, prepay your mortgage now if you can. Then, you'll have some equity to fall back on when interest rates go up again in about two years.
Ellen Roseman's column runs Wednesday, Saturday and Sunday in the Toronto Star. You can reach her at eroseman@thestar.ca by email.
More buyers are choosing mortgages with longer payback periods.
By stretching payments over 30 to 40 years (instead of the usual 25), they can enter the market sooner or buy a better property.
Mortgages with longer amortizations have caught on like a house on fire (pardon the pun).
"About 60 per cent of first-time buyers are opting for a 40-year mortgage," says Craig Alexander, deputy chief economist at TD Bank.
His explanation: Houses are now less affordable because prices have grown faster than household incomes.
"Prices have gone up 10 per cent a year between 2002 and 2007, while historically they have gone up only 4 to 5 per cent a year.
"If these longer amortization mortgages hadn't been around, the housing market would have cooled down a lot sooner."
There's a "huge adoption" of 40-year mortgages in Toronto, Calgary and Vancouver, where people stretch for affordability, says Catherine Adams, vice-president of home equity financing at Royal Bank of Canada. "I think it's given the housing market a boost and allowed prices to go up further than they would have otherwise."
The Canadian Association of Accredited Mortgage Professionals did a survey last fall that showed the product's appeal.
Mortgages with longer amortizations grew to 37 per cent of new home loans – and 9 per cent of outstanding mortgages.
"That's phenomenal, considering they have been around for only the last two to three years," says association president Jim Murphy.
Competition in mortgage insurance has accelerated new product development by lenders.
Canada Mortgage and Housing Corp., a federal government agency, used to have the market to itself.
Now it has three private-sector rivals from the United States (Genworth Financial, PMI Group Inc., AIG United Guaranty).
Another big U.S. firm (Mortgage Guaranty Insurance Corp.) has applied for a licence, Murphy says.
Is there too much innovation in lending? And is Canada headed down the same road as the United States?
That's the contention of Garth Turner, a Liberal MP and former business editor, who argues that lenders in Canada are flirting with a market collapse.
In his book, Greater Fool: The Troubled Future of Real Estate (Key Porter, $21.95) and his blog, http://www.greaterfool.ca/, he says the net effect of 40-year mortgages is no different from U.S. subprime mortgages.
"Both make buying easier and cheaper. Both lower the bar for loan qualifications. Both augment mortgage debt. Both sustain an overvalued market. Both lead to asset inflation.
"Will they both end badly?"
While 40-year mortgages may have extended Canada's real estate boom, most economists don't foresee an imminent U.S.-style bust.
"There's no evidence that house prices are set to decline in Canada," says Ted Tsiakopoulos, a CMHC market analyst in Toronto.
"Incomes are growing and we feel that's the most important factor that will support price growth."
The forces behind Canada's last housing crash in 1989 – high inflation, high interest rates and speculative buying – don't exist now.
In particular, says Alexander of TD Bank, you don't see house prices decline without significantly higher interest rates.
He predicts Canada's economy will slow until late 2009 and the Bank of Canada will cut rates by 1 to 1.5 percentage points.
"Falling interest rates are not consistent with the housing market running into major problems."
So, prepay your mortgage now if you can. Then, you'll have some equity to fall back on when interest rates go up again in about two years.
Ellen Roseman's column runs Wednesday, Saturday and Sunday in the Toronto Star. You can reach her at eroseman@thestar.ca by email.
For information on Mortgages and or Buying a property call Larry at 877 338 5899 or by e-mail larry.broadley@migroup.ca
Tuesday, March 25, 2008
Spring is Sprung (hopefully) and thoughts turn to a new home or cottage.
The big question ? How do I pre-qualify for a mortgage ?
Information required to be pre-qualified for a mortgage:
Ask your employer to prepare a letter on company letterhead outlining your name, base salary or hourly rate, normal hours worked per week, position and length of service. A recent pay stub and a copy of your T4 from last year may also be required.
If commission sales, three years personal tax returns together with the Notice of Assessments from Canada Customs & Revenue Agency.
If self-employed, three years personal tax returns together with the Notice of Assessments from Canada Customs & Revenue Agency, three years business financial statements, and three years business tax returns (if applicable).
Note: New products have been launched to the marketplace where, with good credit, you can qualify for a mortgage based on your stated income*. This type of mortgage was designed for the self-employed, including contractors, freelancers, consultants, commission sales professionals, or small business owners. Talk to us about mortgage approvals specifically for the self-employed.
Social Insurance Numbers. (Optional).
At least 3 years history of residence and employment.
Know your banking information (name of financial institutions, address, and type of accounts, account numbers).
Know your assets (what you own) and their value. i.e. cash amounts, stocks, bonds, RRSPs, car.
Know your liabilities (what you owe). i.e. car loan, credit card balances, child or spousal support payments.
Please let us know about any past credit problems you may have had.
Write down a list of questions you would like to have answered.
A pre-qualification is usually good from 90-120 days depending on the lender and product. Once pre-qualified your fixed rate would also be locked in for a specified time frame. If interest rates go up the rate on your pre-qualification would apply as long as your mortgage closed within the specified time frame. If rates go down you would also benefit from the lower rates again within the specified time frame on your pre-approval.*
To get pre-qualified visit www.larrybroadley.com/MIpage.htm
F or a Home Buyers Guide go to www.larrybroadley.com/hbg.htm
Before you make what is likely to be the biggest financial decision of your life, call us at 877-338 5899 or email larry.broadley@migroup.ca
To maximize the benefits to you, you will want to consider enlisting the services of a Mortgage Intelligence consultant. We negotiate with major financial institutions, chartered banks, trust and insurance companies, Canada Mortgage and Housing Corporation, Genworth and others to bring our clients the most competitive mortgage rates and terms. Mortgage Intelligence will usually earn a commission or fee from the lender* for all the work, advertising and promotion done on their behalf. Our professional services are provided, in most cases, at no cost to you. We are constantly updated on rate changes and new products being introduced in the market. As our client, you can choose from the widest range of options, obtain the most competitive rate and best product suited to your specific needs. An extensive network of financial institutions has enabled many of our clients to obtain savings of up to 1.40% below posted lender rates.
For more information or a free consultation - Please contact Larry Broadley at 877 338 5899 or by e-mail larry.broadley@migroup.ca
For more information or a free consultation - Please contact Larry Broadley at 877 338 5899 or by e-mail larry.broadley@migroup.ca
* Subject to certain guidelines
For Real Estate Buying and Selling along Ontario's West Coast ............Ipperwash to Goderich try http://www.grandbend4sale.com/
Tuesday, March 18, 2008
With today's lower rates and market uncertainty this is one of the most often asked questionsFixed or variable-rate mortgage?
“Wow!” you say to your spouse as you hit the brakes on the car. “Did you see the mortgage rate those guys are advertising?” Your worries are over, you’re thinking. Just lock in a rate like that for the next ten years, and you’ve got it made.
Not so fast. That rate may not be the one for you. Typically, the lowest available rate – and the one that makes the rate sign look great from the street – will be for a variable or adjustable-rate mortgage. That rate has the potential to be like a roller coaster. The posted variable or adjustable rate is the rate you’re getting today. Unless you have an economic Ouija board, you won’t be able to predict what kind of ups and downs are ahead of you.
Let’s take a closer look. A lender will offer different rates for different types of mortgages. The rates are determined based on financial risk – to the institution and to you. When a customer is willing to take on the risk, he/she is rewarded with a lower rate. If the lender is taking on the risk (that is, the customer is promised a particular rate… regardless of what happens in the future), the rate is higher. The longer the term, the higher the risk for the financial institution.
So how do you decide? Fixed-rate mortgages, because they require a low risk tolerance, are usually better suited to first-time buyers or those who haven’t owned a home for a very long period. Ask yourself these questions: Do you like or need to know exactly what your payment is going to be over a longer period of time? Do you want to avoid the need to consistently watch rates? Do you have less than 25% down? If you answered “yes” to all, or most of these questions, a more conservative fixed-rate mortgage could be the better choice for you.
A variable or adjustable-rate mortgage is best suited to people who have a flexible budget and can tolerate higher risk. Ask yourself these questions: Do you watch market conditions? Can you handle any sudden rate increases that could increase your payment? Do you have 25% or more equity in your home? If you answered “yes” to all, or most of these questions, a variable or adjustable-rate mortgage might best suit your needs.
Some lenders offer a special promotional rate for the first few months of a variable-rate mortgage, which you should discuss with your mortgage broker. Also discuss what your rate will be based on – prime minus 0.5% or 0.6% or on Bankers’ Acceptances (BAs) plus 1%. The latter being a new kind of adjustable-rate mortgage that has recently been introduced to the marketplace. Most variable or adjustable mortgages allow you to exercise an option to “lock in” a fixed rate at any time for the remaining portion of your mortgage term or for a longer term.
If the uncertainty of a floating rate is going to give you sleepless nights, you’re in good company. Many Canadians prefer the certainty of a fixed-rate mortgage. They know exactly how much they will pay over the term of their mortgage, and they can plan accordingly… with no financial surprises. But if rates do drop… and drop… and drop… you are committed to the “promise” that you have made. Your best option - have a professional help you decide which option best meets your needs.
“Wow!” you say to your spouse as you hit the brakes on the car. “Did you see the mortgage rate those guys are advertising?” Your worries are over, you’re thinking. Just lock in a rate like that for the next ten years, and you’ve got it made.
Not so fast. That rate may not be the one for you. Typically, the lowest available rate – and the one that makes the rate sign look great from the street – will be for a variable or adjustable-rate mortgage. That rate has the potential to be like a roller coaster. The posted variable or adjustable rate is the rate you’re getting today. Unless you have an economic Ouija board, you won’t be able to predict what kind of ups and downs are ahead of you.
Let’s take a closer look. A lender will offer different rates for different types of mortgages. The rates are determined based on financial risk – to the institution and to you. When a customer is willing to take on the risk, he/she is rewarded with a lower rate. If the lender is taking on the risk (that is, the customer is promised a particular rate… regardless of what happens in the future), the rate is higher. The longer the term, the higher the risk for the financial institution.
So how do you decide? Fixed-rate mortgages, because they require a low risk tolerance, are usually better suited to first-time buyers or those who haven’t owned a home for a very long period. Ask yourself these questions: Do you like or need to know exactly what your payment is going to be over a longer period of time? Do you want to avoid the need to consistently watch rates? Do you have less than 25% down? If you answered “yes” to all, or most of these questions, a more conservative fixed-rate mortgage could be the better choice for you.
A variable or adjustable-rate mortgage is best suited to people who have a flexible budget and can tolerate higher risk. Ask yourself these questions: Do you watch market conditions? Can you handle any sudden rate increases that could increase your payment? Do you have 25% or more equity in your home? If you answered “yes” to all, or most of these questions, a variable or adjustable-rate mortgage might best suit your needs.
Some lenders offer a special promotional rate for the first few months of a variable-rate mortgage, which you should discuss with your mortgage broker. Also discuss what your rate will be based on – prime minus 0.5% or 0.6% or on Bankers’ Acceptances (BAs) plus 1%. The latter being a new kind of adjustable-rate mortgage that has recently been introduced to the marketplace. Most variable or adjustable mortgages allow you to exercise an option to “lock in” a fixed rate at any time for the remaining portion of your mortgage term or for a longer term.
If the uncertainty of a floating rate is going to give you sleepless nights, you’re in good company. Many Canadians prefer the certainty of a fixed-rate mortgage. They know exactly how much they will pay over the term of their mortgage, and they can plan accordingly… with no financial surprises. But if rates do drop… and drop… and drop… you are committed to the “promise” that you have made. Your best option - have a professional help you decide which option best meets your needs.
For Mortgage info or Real Estate Info click on
Sunday, March 2, 2008
Times are changing, now in addition to all your buying and selling needs along Ontario's west Coast ( Lake Huron ) I have now added Mortgage Brokerage to my resume and teamed with Mortgage Intelligence to provide Mortgage and Loan services to clients, making what I offer FULL service in buying a home as well as ongoing re-financing opportunities. I can be reached either at 519 238 - 5700 (RE/MAX) or 519 238 - 5899 ( Mortgage Intelligence ) or Toll Free at 877 338 - 5899.
If your thinking about Summer Rentals in Grand Bend, Port Franks Ipperwash or Bayfield you better hurry, things are booking fast . For Rental info go to www.grandbend4sale.com/RentalPage.htm . At my rental, only the 1st 2 weeks of July are available, however wekend packages ( or weekly ) are available for April, May and June. Go to www.grandbend4sale.com/44walker.htm .
Tuesday, January 22, 2008
Grand Bend Winter Carnival 2008
‘Benguin Goes Wild West’
Well Week 1 is over and a GREAT success here's next weekends events and activities
Friday February 8
Riverbend- Kountry Karaoke Contest with Jude 9pm-close
Bikini Bobs-Western wine tasting- 4 -10 p.m. Country Band- 9- 1 am
Gables-The 88s 10-2 am
Gables- Bring Your Own Meat- BBQ-register early-519-238-2371
Grand Bend Legion Meat Draw 5-7 pm
Oakwood-Entertainment: Murray Andrews-The Clubhouse
Saturday February 9
Rotary Club Parade- 1 pm downtown
Bikini Bobs-Texas holdem’
Gables-Search for Talent Contest with Fat Kat Karaoke Bobbie
Grand Bend Legion- Steak BBQ - Tickets available at Legion. 519-238-2120
Pinedale Motel-Craft Sale 9am to 4 pm All vendors are welcome
United Church Lunch-after the parade-Downtown
Oakwood-8pm Yuk Yuk’s Comedy Show Cost: $20 per person includes tax Call 519-238-2324
Dinner & Show only $50 including tax & gratuity. The Huron Room
Oakwood-9:00pm Entertainment: Murray Andrews The Clubhouse
Oakwood-10 pm Miss Winter Carnival Pageant Prizes for 1st, 2nd & 3rd The Huron Room. Call Diana at 519-238-2324 for details
Sunday February 10
Waiters Race Colonial parking lot-2-5 pm
Grand Bend Firemen's Breakfast-8 am- 11am (Behind Bank of Montreal)
Grand Bend Legion--Veteran's Memorial Mixed Dart Tournament-Register 11 am
Oakwood- 12-2pm Children’s Talent Show FREE - Register at Guest Services before February 3
Sing, dance, play – bring your original ideas to win prizes! Prizes for 1st, 2nd, & 3rd at The Clubhouse
~Bikini Bobs -- 238--2235 ~Gables -- 238--2371 ~Riverbend 238--6919 ~Oakwood--238--2324
~Chamber of Commerce 519--238--2001
‘Benguin Goes Wild West’
Well Week 1 is over and a GREAT success here's next weekends events and activities
Friday February 8
Riverbend- Kountry Karaoke Contest with Jude 9pm-close
Bikini Bobs-Western wine tasting- 4 -10 p.m. Country Band- 9- 1 am
Gables-The 88s 10-2 am
Gables- Bring Your Own Meat- BBQ-register early-519-238-2371
Grand Bend Legion Meat Draw 5-7 pm
Oakwood-Entertainment: Murray Andrews-The Clubhouse
Saturday February 9
Rotary Club Parade- 1 pm downtown
Bikini Bobs-Texas holdem’
Gables-Search for Talent Contest with Fat Kat Karaoke Bobbie
Grand Bend Legion- Steak BBQ - Tickets available at Legion. 519-238-2120
Pinedale Motel-Craft Sale 9am to 4 pm All vendors are welcome
United Church Lunch-after the parade-Downtown
Oakwood-8pm Yuk Yuk’s Comedy Show Cost: $20 per person includes tax Call 519-238-2324
Dinner & Show only $50 including tax & gratuity. The Huron Room
Oakwood-9:00pm Entertainment: Murray Andrews The Clubhouse
Oakwood-10 pm Miss Winter Carnival Pageant Prizes for 1st, 2nd & 3rd The Huron Room. Call Diana at 519-238-2324 for details
Sunday February 10
Waiters Race Colonial parking lot-2-5 pm
Grand Bend Firemen's Breakfast-8 am- 11am (Behind Bank of Montreal)
Grand Bend Legion--Veteran's Memorial Mixed Dart Tournament-Register 11 am
Oakwood- 12-2pm Children’s Talent Show FREE - Register at Guest Services before February 3
Sing, dance, play – bring your original ideas to win prizes! Prizes for 1st, 2nd, & 3rd at The Clubhouse
~Bikini Bobs -- 238--2235 ~Gables -- 238--2371 ~Riverbend 238--6919 ~Oakwood--238--2324
~Chamber of Commerce 519--238--2001
Thursday, January 3, 2008
Welcome to 2008
WINTER IN GRAND BEND
Winter Carnival
Feb 1 - Feb 10
Grand Bend Winter Carnival 2008
‘Benguin Goes Wild West’ ...
List of Events and Activities
Friday February 1 Oakwood- 9pm Traci Kennedy – Nashville Recording ArtistGables-10 pm 2 am- RumblefishSobeys drive-in for the kids-FREE-Grand Bend school Grand Bend Legion Meat Draw 5-7 pmBikini Bobs-Western wine tasting 4- 10 pm
Saturday February 2 Gables-Co-ed snowpitch tournament- Feb 2-3/Feb 9-10- Lions Park behind Legion Contact Jane or John Musser-238-6690First ever Winter Carnival fireworks at skateboard park beside Legion. 6 pm- 8 pm Hot chocolate and hot dogsRiverbend- 12th Annual Olympics 1 pm -8 pm Karaoke with Jude 9 pm- close Call to register 519-238-6919Bikini Bobs-Hot Country band 10 p.m - 2 am.Oakwood- Snowgolf- 10 am 1 pm Cost: $15 per person includes golf (club &ball), chili with bun Call 519-238-2324For the kids- Mad Science at the Grand Bend community gym plus crafts, sports and a movie. FREE. Call 519-238-1155Oakwood- 9 pm Traci Kennedy – Nashville Recording Artist The ClubhouseGables- Karaoke with Fat Kat Karaoke Bobbie 2 pm - 6 pm PrizesGrand Bend Legion and Winter Carnival present- Brad Karel and the Thrillbillies- and Stephanie McClennan- dance to new country at the Grand Bend Legion-Tickets call 238-2001. Sponsored in whole by Ontario Lottery and Gaming.Sunday February 3Oakwood 12-2pm Tobogganing, S'mores & Hot Chocolate FREE – children to be supervised by parents or guardians Hill at Hole #8- The ClubhouseOakwood- 4 pm Superbowl Party Door prizes and special drink prices!Gables- Wild West ride-Challenges on the Mechanical Bull- Chance to try it out. Cheers the cowboys on 1- 5 p.m.Sponsored by 104.9 the Beach radioBikini Bobs-Superbowl Party- Crazy cow contest 6 pm Youth Darts-Grand Bend Legion-Call 519-243-2452 for detailsFriday February 8Bikini Bobs-Western wine tasting- 4 -10 p.m. Country Band- 9- 1 amGables-The 88s 10-2 amGables- Bring Your Own Meat- BBQ-register early-519-238-2371 Grand Bend Legion Meat Draw 5-7 pm Oakwood-Entertainment: Murray Andrews-The ClubhouseSaturday February 9Riverbend- Kountry Karaoke Contest with Jude 9pm-closeRotary Club Parade- 1 pm downtownBikini Bobs-Texas holdem’Gables-Search for Talent Contest with Fat Kat Karaoke Bobbie Grand Bend Legion- Steak BBQ - Tickets available at Legion. 519-238-2120Pinedale Motel-Craft Sale 9am to 4 pm All vendors are welcomeUnited Church Lunch-after the parade-Downtown Oakwood-8pm Yuk Yuk’s Comedy Show Cost: $20 per person includes tax Call 519-238-2324Dinner & Show only $50 including tax & gratuity. The Huron Room Oakwood-9:00pm Entertainment: Murray Andrews The Clubhouse Oakwood-10 pm Miss Winter Carnival Pageant Prizes for 1st, 2nd & 3rd The Huron Room. Call Diana at 519-238-2324 for detailsSunday February 10Waiters Race Colonial parking lot-2-5 pmGrand Bend Firemen's Breakfast-8 am- 11am (Behind Bank of Montreal) Grand Bend Legion--Veteran's Memorial Mixed Dart Tournament- Register 11 am Oakwood- 12-2pm Children’s Talent Show FREE - Register at Guest Services before February 3Sing, dance, play – bring your original ideas to win prizes! Prizes for 1st, 2nd, & 3rd at The Clubhouse~Bikini Bobs- 238-2235 ~Gables- 238-2371 ~Riverbend 238-6919 ~Oakwood-238-2324~Chamber of Commerce 519-238-2001
NOW IS THE TIME TO THINK ABOUT RENTING THAT SUMMER COTTAGE www.grandbend4sale.com/44walker.htm
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