Archive | April, 2013

A Little Off the Top

April 29, 2013

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There’s a fantastic article on CanadianMortgageTrends today (read: A Little Extra) that touches on how much could be saved if as little as $20 was added to a monthly mortgage payment. For fun, here are a couple of examples to show how far a little extra money could go (for all examples, assume a mortgage size of $200,000, a rate of 2.99% and a 25-year amortization).

Example #1:
Prepayment Amount: $25/month
Interest Savings: $3,464.11
Amortization Savings: 11 months

Example #2:
Prepayment Amount: $50/month
Interest Savings: $6,644.71
Amortization Savings: 21 months

Example #3:
Prepayment Amount: $100/month
Interest Savings: $12,289.53
Amortization Savings: 40 months

So even with an extra payment of $25/month over 25 years, you’d save almost $3,500 in interest, and shave almost a full year off your mortgage. If you could squeeze out $100 extra per month on your mortgage, you’d take off almost 3.5 years from your mortgage, and save over $12,000 in interest!!

If you think you can spare a little extra each month, the savings can really start to add up quickly. If you’d like to discuss how you can start chipping away at your mortgage, contact your favourite mortgage broker, and we’d be more than happy to help you put together a plan (for FREE!) to pay off your mortgage faster (and save you a bunch of money!).

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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When is a house a matrimonial home?

April 24, 2013

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If you are married and living together with your spouse in a house that you own, you have just limited your ability to deal with the property at your own whim. A matrimonial home, even if it is just in one spouse’s name, is beneficially owned by both spouses, and the non-titled spouse will have to consent to any offer of sale as well as the legal sale itself, as well as any mortgage on the property.

Cesia

Cesia is a real estate lawyer at Wall-Armstrong and Green, a boutique law firm in Barrie focusing on real estate and estates. When she’s not online, she can usually be found in her garden.

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Mortgage Life Insurance

April 22, 2013

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I came across a fantastic article on mortgage life insurance versus life insurance this week, and thought I’d share it with you. As a mortgage broker, I’m mandated to offer all my clients mortgage life insurance, and this article explains the pros and cons of mortgage life insurance versus life insurance.

Mortgage Life Insurance: Why I Passed

The concept behind mortgage life insurance is a good one.  It protects your family against unexpected illness, accident, or death.

Mortgage life insurance is the one financial product that goes down in value as you continue to pay, yet this is promoted as a benefit.  The marketing material says:  your premiums will not increase for the term of your mortgage, even as you get older.  It’s comforting to know that this important coverage will remain affordable.

But that also means that relatively it costs more over time.  As the mortgage principal decreases the cost stays the same. That’s called a declining benefit…. Read the rest of the article here.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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HST rebates

April 17, 2013

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Here’s a post for near tax time: HST rebates on a new home. If you are buying a brand-new home, you are entitled to a rebate, but only in specific circumstances:

  1.  You must intend to live in it as your primary home. It can’t be a cottage or other seasonal residence.
  2. If you are not going to live there, an immediate family member of yours (or of your spouse’s) must intend to live there. You can rent it to your brother and get the rebate, but you can’t rent it to a friend.

If you meet these requirements, you can save a significant amount in taxes.

Cesia

Cesia is a real estate lawyer at Wall-Armstrong and Green, a boutique law firm in Barrie focusing on real estate and estates. When she’s not online, she can usually be found in her garden.

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New Mortgage Broker Makes Awards Short-List

April 15, 2013

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I don’t normally like to toot my own horn, but figured the readers of Barrie Real Estate Talk would be interested in the following article printed in the April 9th, 2013 edition of the Barrie Advance.

 

New Mortgage Broker Makes Awards Short-List

Thanks to those that nominated me – I’m honoured to represent Barrie and Simcoe County nationally at the upcoming awards ceremony.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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