NEIGHBOURHOOD MORTGAGE

O C T O B E R 2 0 1 3

strategy

Mortgage brokers offer choice

TOP REASONS FOR USING A BROKER1. Choice – access to multiple financial institutions

2. Knowledge – brokers stay up-to-date on available products and services

3. Flexibility – mortgage products are even available for the self-employed or those whohave credit blemishes

1140 Stellar Drive Newmarket, Ontario L3Y 7B7

FROM YOUR ACCREDITED TEAM OF MORTGAGE PROFESSIONALS - NEIGHBOURHOOD DOMINION LENDING CENTRES

FROM YOUR ACCREDITED TEAM OF MORTGAGE PROFESSIONALS - NEIGHBOURHOOD DOMINION LENDING CENTRES

905.715.7086 | Visit Us On The Web: www.ndlc.ca

The next time you’re looking for a mortgage for that newhouse or you’re up for renewal on your existing mortgage,think about using a mortgage broker – their services are freeand they offer you an abundance of choices the banks simplycan’t compete with.

Mortgage brokers have access to a vast array of lenders including the big banks, over 35 financial institutions, trustcompanies, credit unions and even private funds – which enables these professionals to negotiate the best possiblemortgage products and rates on your behalf. In comparison,if you approach your bank with a mortgage request, they canonly offer you a narrow choice – namely, their own products.

Mortgage brokers do their homework on available mortgageproducts and keep themselves abreast of any new products,or changes to existing products, to ensure they find the bestmortgage to fit your specific needs.

Unlike the banks, mortgage brokers can also cater to self-employed borrowers as well as those who have sufferedcredit blemishes due to life experiences such as divorce orillness. Brokers will listen to your story, whereas the bankshave a very narrow view of what fits into their financing box– and this is unnegotiable.

If you’re thinking of buying a home, Neighbourhood Dominion Lending Centres mortgage professionals can findthe best mortgage rate and term for your unique situation.

Using Home Equity to Your Advantage

As we read reports, listen to the radio/TV and we start to wonder if the financial crisis has bottomed out. We have heard rumbles that the American government is going to stop purchasing bonds which will have aneffect on you, as it will make money more expensive to borrow.

The rules have changed drastically over the last 4 years and have made it more difficult for the average Canadian to leverage the equity in their homes to reduce their debt, purchase a 2nd home or cottage.

Now we should take a look at this one more time.

Canadians purchase homes for avariety of reasons. Some want thestability of owning their ownhome, while others also look athome ownership as an investmentvehicle. No matter what the rea-son, the truth is that home own-ership has proven itself to be agood stable investment over time,and one which many Canadiansare profiting from.

While many people have chosento purchase their first home dur-ing these times of lower interestrates, there has also been a largemovement to refinance home

loans and pull out equity for homeimprovements, investments, col-lege expenses, and even high in-terest debt consolidation.Canadians have been borrowingagainst their home’s equity inrecord numbers, taking out bil-lions of dollars in cash each year.

In years past, many saw theirhomes as a shelter of safety, yettoday, they are more than ever be-fore willing to borrow against theequity owned in their homes tofurther their investment portfo-lios, get out of debt, send theirchildren to university, make im-

provements to their home, oreven boost their RRSP contribu-tions. Where home equity wasonce sat upon, today it is some-thing to be tapped out and usedto one’s advantage.

While tapping the equity in yourhome can be a good idea, youshould do so with caution and un-derstand any of the possible con-sequences. The best thing you cando is consult a licensed mortgageprofessional and financial plannerto discuss opportunities to makeyour home’s equity work for you.

* Mortgage originally $250,000** Based on a mortgage with 12 months remaining on term*** 21 years remaining on amortizationRates subject to change | O.A.C. | E. & O. Call Us To Get Started Today!

905.715.7086

Is it time to refinance our debts?

Current Situation On Renewal Potential Situationof Mortgage

Mortgage at Mortgage at Mortgage at5.5% interest rate 3.59% interest rate** 3.59% interest rate***

(21 year) (25 year)

Balance Payment Balance Payment Balance Payment Payment

Mortgage* $234,668 $1526 $234,668 $1334 $306,446 $174925 $157548

Car Loan $30,000 $524 $30,000 $524 - $0 $0

Credit Cards $18,000 $540 $18,000 $540 - $0 $0

Line of Credit $20,000 $600 $20,000 $600 - $0 $0

Penalty to break $3,788 $0 $0 $0 - $0 $0 mortgage

Total $306,446 $3190 $302,668 $2998 $174925 $157548

That’s a MONTHLY SAVINGS of $124875 $142252

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www.ndlc.ca

Have you ever said “what a beautifulhome with a great piece of property,too bad the kitchen is outdated?

Well you are in luck. There is a program that not only opens thedoor for you to get into the home,with the dream kitchen, or spa likeensuite, but it also saves you any inconvenience, or hassles of arranging a second loan after theclosing. This program is availablewith Genworth or CMHC “PurchasePlus Improvements” mortgage. Nowyou can purchase a home, renovateit the way you like and pay for it allin one mortgage payment at firstmortgage rates.

All of this can be done by puttingdown as little as 5% of the “as improved” value. For example, if youpurchased a home for $375,000 andwanted to do $25,000 worth of renovations, Genworth/CMHC will insure a mortgage based on 95% ofthe “as improved” value. In otherwords, with a down payment of$20,000 (5%) Genworth/CMHC will insure a mortgage of $380,000.

The key for this working is that thecost of the renovations has to be reflected in the “as improved” valueof the house.

In this example, Genworth/CMHCwould have to agree that the housewould have a value of at least$400,000 after the $25,000 worth ofproposed renovations was done. Theinsured loan will be based on thelower of the purchase price plus theactual cost of improvements or the“as improved” market value.

How Does It Work?

When you’ve decided to make anoffer on a house, make the offer conditional for a longer than normalconditional period because you willhave to arrange a qualified contractor to put together a description and a cost estimate for

the proposed repairs or renovations.Forward the “Contractor’s Estimate”along with the “Agreement of Purchase and “Sale” for submissionto the lender for Genworth/CMHC’sapproval.

The following information needs tobe prepared by the contractor to besubmitted along with your application to the lender.

Renovations(i.e. Kitchen or Bathroom renovation)

1. Description of the work

2. Types of materials being installedwith applicable quantities (i.e. 250sq. ft. ceramic flooring)

3. TOTAL COST of all work (includeapplicable taxes)

Important Reminders

1. Make the offer conditional for alonger than normal conditionalperiod, 10 business days

2. Get estimates immediately afteraccepted offer

3. Full application cannot be submitted until estimates are in

4. All work has to be completed andreceipts submitted together to release funds

5. A walk-through appraisal mayberequired at the borrower’s expense

For additional information on thePurchase Plus Improvements Programor if you have any questions, pleasedon’t hesitate to contact us!

Purchase Plus Improvements!

DID YOU KNOW...Neighbourhood DominionLending Centres has a greatline of Visa cards that you canapply for directly through ourwebsite or by calling/emailingus today. The Dominion Lending Centres Student Visais the perfect back-to-school accessory. It features a competitive interest rate andno annual fee, as well as aunique cell phone insurancefeature to protect studentsfrom having to pay for a newphone if theirs is lost or stolen.

Give us a call today to see if wehave the right card for you!

In today’s market it is as criticalas ever to make sure your financial plan is still workingfor you! A Neighbourhood Dominion Lending Centresmortgage professional canquickly evaluate your situationover the phone and can ensureyou have the best mortgageproduct available. Call todayfor a free check-up!

When was thelast time yourmortgage hada check-up?

Fall Tips Winter TipsClean leaves from eavestrough and roofs, and test downspouts to ensure proper drainage from the roof.

Ensure that the ground around your home slopes away from the foundation wall, so that water does not drain into your basement.

Winterize landscaping, for example, store outdoor furniture, preparegardens and, if necessary, protect young trees or bushes for winter.

Drain and store outdoor hoses. Close valve to outdoor hose connection and drain the hose bib (exterior faucet), unless your house has frost proof hose bibs.

Cover outside of air conditioning units.

Check chimneys for obstructions such as nests.

Ensure all doors to the outside shut tightly, and check other doors for ease of use. Renew door weatherstripping if required.

Ensure windows and skylights close tightly.

Replace window screens with storm windows.

Check and clean or replace furnace air filters each month during theheating season and have furnaces or heating system serviced by a qualified service company every two years for a gas furnace, and every year for an oil furnace.

Examine the forced air furnace fan belt for wear, looseness or noise;clean fan blades of any dirt buildup (after disconnecting the electricityto the motor first).

Remove the grilles on forced air systems and vacuum inside the ducts.

Monitor your home for excessive moisture levels - for example, condensation on your windows, which can cause significant damageover time and pose serious health problems - and take corrective action. Refer to About Your House factsheet Measuring Humidity inYour Home.

Examine attic for frost accumulation. Check roof for ice dams or icicles.If there is excessive frost or staining on the underside of the roof, or icedams on the roof surface, consult CMHC About Your House factsheetAttic Venting, Attic Moisture and Ice Dams for advice.

Examine windows and doors for ice accumulation or cold air leaks, iffound, make a note to repair or replace in the spring.

Check electrical cords, plugs and outlets for all indoor and outdoor seasonal lights to ensure fire safety; if worn or plus or cords feel warmto the touch, replace immediately.

Test plumbing shut-off valves to ensure they are working and to prevent them from seizing.

If you have a plumbing fixture that is not used frequently, such as alaundry tub or spare bathroom sink, tub or shower stall, run somewater briefly to keep water in the trap. Check the basement floor drain to ensure the trap contains water. Refill water if necessary.

Vacuum fire and smoke detectors, as dust or spider webs can prevent them from functioning.

Vacuum radiator grilles on back of refrigerators and freezers, and empty and clean drip trays. Vacuum bathroom fan grille.

Clean humidifier two or three times during the winter season.

Inspecting your home on a regular basis and following good maintenance practices are the best ways to protect your investment in your home. A regular schedule of seasonal maintenance can put a

stop to the most common and costly problems, before they occur.

Fall is the time to get your home ready for the coming winter, which can be the most grueling season for your home.

During winter months, it is important to follow routine maintenance procedures, by checking your home carefully forany problems arising and taking correction action as soon as possible.

Neighbourhood Dominion Lending Centres can help you maintain your home during the fall and winter months. Byfollowing the information noted here, you will learn about protecting your investment and how to keep your home asafe and healthy place to live.

FALL/WINTER HOME MAINTENANCE TIPS

are the backbone of ourbusiness!

If you've been happy with the service you’ve received from our office, why not recommend us to a friend? Once we complete the work for your friend, you and your friend will receive a gift certificate for a

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1140 Stellar Drive Newmarket, Ontario L3Y 7B7 905.715.7086 | Visit Us On The Web: www.ndlc.ca