Buyer Tips

Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.

Making Extra payments

Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.

Reducing the CMHC fees on your purchase

When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.

Advantages of Bigger Down Payments

As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.

Short Term Rates vs. Long Term Rates

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates.The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.

Understanding CMHC

In most cases, the hardest part of purchasing a home, especially for first time home buyers, is saving enough money for the down payment. If you are finding it difficult to save a down payment of 20% it’s unlikely that you would ever be able to purchase a home. That’s where CMHC mortgage loan insurance plays a key role.
Canada Mortgage and Housing Corporation (CHMC) is Canada’s national housing agency. In 1946 it was established as a government-owned corporation to address Canada’s post-war housing shortage. CMHC works to enhance Canada’s housing finance options, assist Canadians who cannot afford housing in the private market, improve building standards and housing construction, and provide policymakers with the information and analysis they need to sustain a vibrant housing market in Canada.

Mortgage loan insurance is required by law if your mortgage is more than 80% of the purchase price of your home. The lender makes all of the arrangements. Mortgage loan insurance protects the lender if you default on your mortgage. The mortgage loan insurance—CMHC and a private insurer offer it—pays back the lender. With the risk of losing their money removed, lenders have the confidence to make mortgage loans of up to 95% of the purchase price of your home.

The premium for mortgage loan insurance may be paid in cash when the loan is advanced, or the borrower may choose to add the premium to the mortgage loan principal amount and pay it off over the life of the mortgage. Most borrowers pay the premium off over the life of the mortgage. The amount of the CMHC Mortgage Insurance premium ranges between 0.50% and 7% depending upon how much of the purchase price/home value is financed with a mortgage loan. Premiums in Ontario and Quebec are subject to provincial sale tax which cannot be added to the mortgage amount.

CMHC offers mortgage loan insurance products on various property types including duplexes, condominiums, owner-occupied properties, manufactured or mobile homes, properties requiring renovations and much more. A CMHC insured mortgage provides you with down payment flexibilities – you can own your home with as little as 5% down payment. For those home buyers who have saved up a down payment, traditional mortgage loan insurance products require home buyers to provide the minimum down payment from their own resources, however gift down payments from immediate relatives are also acceptable. Additional sources of down payment are also available through CMHC’s Flex Down product. With Flex Down, homebuyers with a proven track record in managing their debt can provide the 5% down payment from a variety of sources, including borrowed funds or lender incentives, provided the funds are at arm’s length from and not tied to the purchase or sale of the property.

CMHC also offers mortgage insurance that helps homebuyers obtain a secured homeowner line of credit of up to 90% of the value of their principal residence, either at the time of purchase or if you want to refinance. The line of credit lets you draw funds up to your insured credit limit as often as you wish without the need to reapply and allows you the flexibility to pay as little as the monthly interest charges for a limited period of time. Full repayment is required within 25 years from the date the loan is insured.

Both new and resale homes are eligible for mortgage loan insurance, as long as the home is in Canada and it’s your principal residence. In addition, your total housing costs (including mortgage payments, property taxes, heating, annual site lease, and 50% of condominium fees if applicable) should not be more than 32% of your gross household income, and your total debt load (including your housing costs and other debts such as personal loans, car loans, and credit cards) should not exceed 40% of your gross household income. Other criteria may also apply and are subject to change. Please contact your mortgage agent to confirm availability and qualifying criteria.

CMHC Mortgage Insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

What's in a Loft

The verdict on ‘Loft Living’ in the city being the hottest thing out there, has been out for quite sometime. But in my interaction with several of our clients interested in this style of residence, not many of them understand that there are two types of lofts. There are both Soft and Hard Lofts and I have decided to write this article to make it a little clearer to understand the differences between the two types.The Hard Loft – Hard lofts are what one would usually imagine when thinking about lofts. These spaces are usually located in old buildings that began their lives as warehouses, factories, refineries and other industrial uses. Hard lofts feature lots of exposed brickwork with concrete floors and huge windows. Typically there are no room dividers as the entire loft is simply one big open space. Sometimes there is an upper level or mezzanine that overlooks the lower floor. Other aspects that are usually found in lofts include exposed pipes & duct work. Rarely will you be able to find a Hard loft with any private outdoor spaces or balconies.
Soft Loft – The Soft loft is a relatively new concept that features some of the distinctive assets of lofts in combination with more modern apartment style building practices. Soft lofts typically have defined rooms, hardwood flooring and less brick. in many soft lofts brick is utilized as a decorative feature and not the basic building material.

Finding a loft in Toronto has become quite the simple task, with pockets of the city being transformed from once factory and warehouse districts. However the overwhelming popularity of ‘Loft Living’ has ensured that the demand for units have made prices soar even more so than the high rise condo market in some areas. With lofts ranging in price anywhere from the high $200,000’s to over $1 million and higher there is assuredly a fantastic and beautiful loft out there that suits your lifestyle and your wallet.

FOODS TO STASH vs: FOODS TO TRASH!

 You get home from work, you go to the fridge , and there’s nothing but sad carrots and furry blue yogurt in your fridge. You run to the grocery store and are faced with line ups even longer than your day. That’s it! You grab a few frozen boxed dinners and run  out again.It doesn’t have to be this way. If you know what healthy items to stash in the fridge and pantry, you’ll never have to chow down on salty cardboard crusts for dinner again.

 Here are some nutrition tips on what to buy the next time you swing through the crowded grocery store. Follow these tips for plumping up the pantry and filling the fridge with healthy items and you can whip up tasty, nutritious meals when your time is full and your tummy’s anything but.

 Stash 1: Go for flavorful, low-fat dairy.
Non-fat sour cream and light cream cheese on hand. They are not only good for dips or sandwiches, but also great replacement for fat in many recipes, you will still maintain the creamy texture.

Milk is a great base for breakfast, desserts and soups. Do your body a favor by favoring 1 percent and skim over their fattier cousins, or better yet try using plain soy milk. But read the labels, make sure the sugar content is not over 12 grams.

 What to trash: Low-fat dairy that’s replaced the fat with fillers. Fillers can amp up the sugar and carbohydrate load. As always, read labels and dairy products such as sour cream should not have more then 5 ingredients listed.

Quick health tip: Freeze a few ice cube trays of milk/soy milk, then next time you’re in a breakfast rush, blend a smoothie of fresh or canned fruit, milk cubes, flax and some peanut butter.YUMMO!!!! Delicious

 Stash 2: Produce baby!
Nothing beats stocking up on seasonal goodies like peaches in season or corn fresh from the farmer’s market(yum), but there are other ways to ensure you’re getting the powerful nutrition produce offers.

- Buy plenty of 100-percent fruit and vegetables juices, frozen or canned.
-Keep dried fruits like raisins, cherries, plums and apples on hand.                                   
-Stock up on frozen or canned fruits and vegetables, or buy fresh and freeze your own.

What to trash: Canned fruit drowned in thick Syrup, juice drinks, and, if you’re sensitive to it, dried fruit processed with sulfur. yuck!

Quick health tip: At your next BBQ try grilling pineapple or peaches with the steak, or sprinkle raisins over your salad. Or try chopping a little fresh or frozen spinach into your next pasta sauce for a fiber and flavor boost.

Stash 3: Go beans!
Beans are a nutrition power-house, packed with fiber, rich in protein, low in fat, and they’re so flexible. They can star in everything from breakfast burritos and lunch-time salads, to tonight’s chili or your next party dip.

 Look for black, pinto, kidney, lentil and garbanzo beans either dried or canned (keep an eye on sodium levels if buying canned, then rinse the beans  in water well before use). Then sprinkle your favorites liberally into soups and stews, over whole-wheat cous cous or into risotto.

What to trash:Refried beans go great inside a burrito, but they can be loaded with fat and major calories. Look for low-fat versions or, better yet, stick with their unfried choices.

Quick health tip: Hummus, made from chick peas, is loaded with protein and makes a great veggie dip. It also adds fiber and a nutty richness when used as a spread on sandwiches.

 Stash 4:  good food, quick and easy

For whipping up a quick meal you’ll always want to keep on hand these old reliables:

 -Eggs.
-Whole-grain goodies: bread, tortillas, pasta, cereal, oatmeal and rice.
-Reduced-fat spreads and cheeses.
-Lean protein: meat, tofu, beans and nuts.
-Low-sodium soups and broths.

What to trash: Wishful thinking. Just because a food says it’s low in cholesterol or has reduced fat doesn’t mean it’s good for you, if anything it may be worse. You won’t know until you read the label. Watch for elevated levels of sodium and sugar making up for the items taken out.

Quick health tip: A healthier diet for hens means that some eggs are now rich and loaded with omega-3 fatty acids and vitamin E.  Look for these new eggs at your grocery store.

These are just a few tips on what foods to stash in your fridge and pantry — and a few items to trash. This will really help if your always eating on the run, becuase you will always be stashed with the right kind of foods!

Bon Appetite!

30 DAYS TO FAT LOSS!!!

Here is a ”to do” and “not to do list.” If you follow these simple guidelines, you’ll lose fat within 30 days and be on your way to an amazing change!

Foolproof Formula “To-Do” List:
Set one 30-day goal to kick-start your progress. For example, “I will lose 5 pounds this month.” One goal — that’s all I want you to focus on.If you set the bar too high and if you don’t reach it, you may set yourself up for disappointment.

Do cardiovascular exercise four to five days per week for 30 -45 minutes. Nothing fancy — just something you enjoy or can at least tolerate every other day.

 Weight train 3 -4 days per week for 30-45 minutes. This will help boost the metabolism, increase strength and make muscles tighter. You can do it the same day as your cardio if you wish.

Focus on a type of physical activity that you find enjoyable, most people stop exercising because they get really  bored. Try going outside, go to a spinning class, step class, this will alleviate the boredom factor for those who hate to exercise!

 Foolproof Formula “Not-To-Do” List:

Going home right after work before going to the gym. Take your gym clothes with you and go straight to the gym after work. The chances of you taking an early exit off the highway in the direction towards home are very high!

Making the usual excuses such as “I’ll start tomorrow,” “I don’t feel like working out today,” and “I just can’t get into it yet.” Stop already with the excuses get your bum to that gym!

Postponing physicals and other important doctor appointments. This is the time to get a check-up.

Grabbing fast food at lunchtime when you can easily pack a healthy lunch, eat at your desk and then go for a brisk walk with co-workers.

These simple pointers insn’t brain surgery and there’s no magic workout or magic bullet that will improve your fitness level and reduce fat.

Until the magic pill is developed, the guidelines I’ve provided are the best we have. So, commit to yourself to a good nutrition plan and follow my realistic guidelines. I’m not suggesting it’s easy, but this is the perfect time to start taking control of your life, your health and your self-esteem.

Spring is here and Summer is around the corner!!!!