Mark's Blog

A Must see for Business Owners…

Mark Fidgett - www.NotaPennyDown.com — Mon, 23 Nov 2009 23:09:15 -0600

“Your Personal Mortgage Consultant….For Life!”

PS - Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Canada's (Sub-Prime) Mortgage Market - Causing Concern for the Bank of Canada?

Mark Fidgett - www.NotaPennyDown.com — Fri, 20 Nov 2009 17:37:14 -0600

For most of this year the markets have been discounting an economic recovery. That is, they have been in rally mode in anticipation that the worst of the economic crisis is over. While that is likely, all that is left for debate is how meaningful the recovery will be and if it is sustainable. The G20 countries have committed to not let their collective foot off the stimulus gas pedal until they are confident that the economy is on a sustainable trajectory.

As has been expressed before in this space, the distortions being caused in the markets by a weak US dollar are numerous. The floundering US currency has in turn lit a fire under the Canadian dollar. It is up almost 17% for the year and 24% since its lows last March. That has created a conundrum for the Bank of Canada. It was widely expected that the Bank of Canada would have begun raising interest rates by now.

However, some economic data has come in weaker than expected and even more so, the high Canadian dollar has kept the Bank of Canada on the sidelines. The central bank is well aware that if it chooses to raise rates now and thereby further strengthen the loonie, it might end up choking off the budding economic recovery.

There may be yet another concern that might be leaving the Bank of Canada in a quandary. It seems that Canada is gaining a new reputation as perhaps the "new kid on the block" when it comes to the excesses of overheated real estate markets. The real estate revival is being fueled by a wave of mortgage financing that some consider to be sub- prime in quality. In part, this is starting to resemble what we have seen in the US. While it is highly unlikely that we would see anything remotely resembling the experience of the US banks, the story does have some similarities that are disconcerting.

Part of the responsibility for this trend is being put at the feet of the Canadian Mortgage and Housing Corp. (CMHC). This government entity is considered by critics to be the Canadian equivalent of Fannie Mae in that its practices are thought to be provoking a rise in lending that could spell trouble for the Canadian real estate market in the future. This practice was brought about in part by the directive of the federal government to CMHC to effectively "hit the gas" and ensure that mortgage credit was accessible. The theory goes something like this: banks can continue making extended amortization loans to provide prospective homeowners the ability to get into an overheated Canadian housing market because the default risk is being transferred to the CMHC (taxpayers) since it acts as a guarantor for the mortgage market.

According to data from the CMHC, the amount of mortgage credit on the books of the banks has been almost unchanged since 2007 even though they have been issuing an explosive amount of mortgage credit. The reason is that the banks are offloading the mortgages from their balance sheet through the securitization process. Essentially, this allows them to move the risk of default to the broader financial markets.

Recently, the president and CEO of ING Direct Canada stated that he is seeing Canadian habits resemble those of US and European nations during their housing booms. The level of equity in Canadian homes is surprisingly low as more than 50% of all mortgages issued this year are longer than the 25 year range that has been the usual option for borrowers.

Taking this altogether, should rates rise over time, many Canadians might wonder what they have gotten themselves into. The chart above shows that Canadian income growth has not kept pace with the level of mortgage credit and now exceeds Canadian income. This also raises the question about whether or not the federal government can reverse its directives to the CMHC to open the credit spigot given the fact that many households are holding well under 10% equity levels in their homes. If however the Bank of Canada moves too fast in correcting this loose credit situation, the housing market could start to freeze up once again. If it does nothing, we could quickly confirm that the recent housing market surge is in fact the making of a bubble and bubbles are generally known for only doing one thing.

It seems that rather than simply expressing concern about this issue as we have seen thus far, the Bank of Canada might be tempted to follow its words with actions and send a shot across the bow of a surging Canadian housing market.

Mark Fidgett | 604-273-2002

"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Inside Secrets to Investing in Second Mortgages!

Mark Fidgett - www.NotaPennyDown.com — Wed, 18 Nov 2009 20:18:23 -0600

Since writing about investing in second mortgages, I’ve received a tremendous response from readers looking for more information.

Before I get into the what and why’s of 2nd mortgages, I’d like to explain

The ‘Rule of 72′

The ‘Rule of 72′ is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest.

By dividing 72 by the annual rate of return, You can get a rough estimate of how many years it will take for the initial investment to duplicate itself.

For example, the rule of 72 states that $70,000 invested at 14% would take 5.14 years (72/14) = 5.14 to turn into $140,000.

A 14% investment will take 5.14 years to double.

TAX IMPLICATIONS of 2nd mortgage investing.

The income you realize from 2nd mortgage investing is simply added to your other income and then taxed at whatever tax bracket you’re in.

Below are the 2009 Income Tax Brackets

first $35,716 = 20.06%
over $35,716 up to $40,726 = 22.70%
over $40,726 up to $71,433 = 29.70%
over $71,433 up to $81,452 = 32.50%
over $81,452 up to $82,014 = 36.50%
over $82,014 up to $99,588 = 38.29%
over $99,588 up to $126,264 = 40.70%
over $126,264 = 43.70%

Example #1
Based on a 2nd mortgage investment of $70,000 at 14% with NO carrying charges.

Let’s assume your regular 2009 income is $60,000 plus you receive $9,800 2nd mortgage income. Your Total income now becomes $69,800
Based on the above table, you’re still in the 29.7% tax bracket.

Example #2
Based on a 2nd mortgage investment of $70,000 that is borrowed (with carrying charges).

Let’s assume your regular 2009 income is $60,000 plus you receive $9,800 2nd
mortgage income less $1,575.00 carrying cost (because you borrowed the $70,000 at 2.25% = $220.50)
Your Total income now becomes $68,225.00
Based on the above table, you’re still in the 29.7% tax bracket.

Talk to your accountant as you may be able to write off more depending on how you structure the investment.

Why would someone want a second mortgage at 12-14%?

Case Study #1

Mary is an entrepreneur who’s owned her own business for 5 years
Mary needs $70,000 to expand her business and reduce some high interest rate debt.
Mary’s Vancouver residence is worth $700,000
Mary’s bank holds a first mortgage on her property for $350,000
PROBLEM - Mary pays her accountant to reduce her taxable income as LOW as possible
Applies to bank for an additional $70,000
Bank DECLINES based on her taxable income being too LOW.
Mary is referred to Mark for a $70,000 2nd mortgage
Mark reviews Mary’s application and pulls her credit bureau.
Mark requests HIS appraiser to provide realistic value of Mary’s home
Appraisal comes back at $657,000
Mark reviews with investor
Investor likes the deal and agrees to lend Mary the $70,000 2nd mortgage at 14% for 1 year (typical time frame)
Mary agrees to terms and signs Commitment which in turn is forwarded to lawyer
Lawyer requests investor to provide $70,000 to his TRUST account
Lawyer draws up documents and has Mary come in sign and also agree to no additional mortgages
Lawyer registers 2nd mortgage in favour of investor
Mary receives $70,000
Investor receives 12 post dated cheques for $816.68
All costs including legal fees are paid by Mary

House value = $657,000 less the total of the 1st & 2nd mortgage of $420,000
Equals a 64% Loan-to-value i.e. 64% of the value is secured
The equity of $237,000 is considered to be the security

How Secure are 2nd mortgages?

Firstly, a 2nd mortgages is secured by REAL ESTATE.
History has proven that although real estate prices may have fluctuated from time to time, over the long-term real estate property has appreciated in value.

Private mortgages provide a regular income stream, tangible security and a real return to the investor that is superior to bank deposit, GICs and bonds.

The big-chartered banks in Canada have often been criticized for charging exorbitant service charges.
However service charges at best probably only cover the overhead costs incurred by the banks in their operations.
Their favorite money making venture is undoubtedly the mortgage business.

There are many reasons why these investments are so highly sought after, which include the following:

Low Administration Costs: The borrower is required to pay the costs to have the mortgage registered against title to their property. You simply sit back and go about cashing the monthly interest payments.
Cash-Flow: A mortgage generates cash each and every month. Obviously the amount of the monthly payment will depend on the size of the mortgage, the interest rate.
Protected Capital: Perhaps the main reason why Banks love mortgages, and why they fight tooth and nail with each other for this business, is the low risk associated with these investments.

Private mortgages require little baby-sitting or watching of an investment.
Money is paid regularly and the lender is fully covered by the legal documents signed at the time of the mortgage, ensuring that the investment as well as a profit is collected.

In some cases, property owners turn to private mortgages if their credit is a bit low and cannot get financing elsewhere - and then switch to a bank with better rates as one’s financial status improves.

“I’m not going to say that mine are the safest, because that would be unfair, but I will say that the security has a LOT to do with the due diligence and character of the mortgage consultant”

People who have already decided to invest in second mortgages, like retired couple Mary & Fred below, agree that this is the best investment they’re ever made.

“Before being referred to Mark our retirement income was quite low.
Mark helped us transform our only assest, our clear title house, into a revenue generating machine. Now we are enjoying the healthy retirement we had always dreamed of.”
Mary and Fred G.

Call Mark today and get you’re money working for you!

Take care,

Mark Fidgett
"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

pass it on...we need 300,000 to see the pilot for it to go to series

Mark Fidgett - www.NotaPennyDown.com — Sun, 15 Nov 2009 21:27:12 -0600

Don't forget to tune in to the BIO channel at 10pm - My friend Sean Stepenson's show "3 foot Giant" is on!
http://www.youtube.com/watch?v=1_4YpAHxAwA - pass it on...we need 300,000 to see the pilot for it to go to series

Inside Secrets Of How To Get A “Yes” When You Borrow

Mark Fidgett - www.NotaPennyDown.com — Fri, 13 Nov 2009 21:25:15 -0600

Lenders approve loans based on their impression of your ability and INTENT to pay it back.

To figure this out, they look at five things:

creditworthiness
income
job longevity
job stability
and future income prospects.

We'll tell you how to make sure you look good in each of these things, so that you'll get a "YES" when you want to borrow money for your new home.

1. Creditworthiness

Creditworthiness is your history of borrowing and repaying against things like loans, credit cards, rent, and whether you've ever filed for bankruptcy.
Lenders refer to your credit bureau for this info.

Order a copy of your bureua today online at http://www.equifax.com
make sure you order with the "Score Power".

This is to make sure that there are no errors or surprises that you'll have to explain to the Lender. If there are mistakes, which I often see, it can take a few months to resolve. So it's good to have a compelling explanation ready when the Lender sees it! The best way to demonstrate that you are "creditworthy" is to pay your bills in full and on time, particularly for the year or two before you want to get a loan and don't use more than 60% of your available credit.

2. Income

Lenders want to know that you have a history of sufficient and consistent income - so that you'll be able to repay the loan. So, when you submit your paperwork, make sure to include a letter verifying your employment (how long and what your salary is), your last couple of paystubs, and your last 2 years NOA's (notice of assessment).

3. Job Longevity

Lenders are looking for borrowers who have a stable source of income. If you can show that you've been employed at least 2 years in the same company or industry, you should be fine.

4. Job Stability

Again, lenders like stability - they tend to think that your loan payment behavior will reflect your employment behavior. So, don't make lateral moves between companies just for the sake of change. If you make moves, do it for promotion, or to earn more money.

5. Future Income Prospects

Because most loans are paid back in 15 to 30 years, Lenders are interested in people who will have income for that amount of time. Young professionals, or those with high-demand skills, are the most appealing to Lenders because their income will only increase over time. If you can demonstrate that you have a career plan that only gets better over time, you'll be in a strong position to borrow.

So essentially, pay your bills on time, stay with an employer, have a career path that shows potential, and you'll be sure to get a "YES" when you borrow.

Remember, if your contemplating a purchase of any kind that requires financing, WAIT until after you've bought your home. Otherwise, it will reduce or maybe even eliminate your from the market.
Also, stay away from credit applications of ANY kind. The more times you apply for credit, the more times your credit bureau gets pulled and the lower your score will go : (

Now that you have some insider secrets, where is the best place to begin.

The first step is to call me for a FREE consultation at 604-273-2002.
If I don't think I'm the right mortgage consultant to help you, I'll let you know immediately - fair enough.

You not only became our broker, but also our friend. It is not very often that someone in your field will put his clients first, but from the first day you thought only of our needs. You were always very informative, patient and totally understanding. You were always there when we needed sound financial advice regarding our old mortgage and helping us to compare numbers for which was the best one to go with. You detached yourself from your business role and became not only our mortgage consultant but also our friend.
~ M. & B. Montgomery

Mark Fidgett | 604-273-2002

"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

What effect will the HST have on a house buyer’s decision making?

Mark Fidgett - www.NotaPennyDown.com — Tue, 10 Nov 2009 15:01:15 -0600

Question: What effect will the HST have on a house buyer’s decision making?

The HST will mean higher final costs for some new home buyers, namely those purchasing more expensive new homes. The final impact, however, will not be as large as the additional 7% provincial portion of the HST.

The province is providing a $20,000 rebate to offset the impact of the HST. Taking the example of a new home priced at $550,000, the additional HST will be $18,500 (7% of the price less the $20,000 rebate).

This, however, is not the net result. When the HST comes into effect, PST will no longer be charged on all the materials used to build the house. The BC Ministry of Finance estimates that this ‘embedded PST’ amounts to 2% of the final cost of a new home. With the HST in place, builders will realize these savings and be in a position to reduce selling prices accordingly. In this example, the embedded PST amounts to $11,000. Therefore with PST removed, the net tax increase from the implementation of the HST on a new $550,000 home will be an additional $7,500 in tax.

The reason we can be confident the savings will be passed on in your question when you suggest that, given the (tax inclusive) price difference between a new and used home, “buyers will flock to buy used homes.” It is precisely this difference that will act as a powerful incentive for builders to pass on the PST savings so that their homes are as competitively priced as possible.

It should be noted that the home building industry believes the 2% figure is too high and that embedded PST in a new home is actually around 1.6%, meaning somewhat smaller savings and price reductions. The home building and real estate industries are currently working with the provincial government to explore measures to reduce the tax impact of the HST. One proposal is a higher rebate threshold or at least a rebate that recognizes regional price differences. Another option would be to phase out the property transfer tax on new homes.

“Your Personal Mortgage Consultant….For Life!”

PS - Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Imagine if your credit card company did this to you.

Mark Fidgett - www.NotaPennyDown.com — Sun, 08 Nov 2009 20:54:45 -0600

This is a reminder as to how the credit card companies extract interest rates so high it would embarrass a Mafia loan shark.

Since I am the “finance guy”, close friends asked me to look at their credit card statement. My friends had reason to be extremely upset.

My friends typically pay their bills on time, however the payment was mailed and ended up being two days late. the card company (Bank) charged $7.40 in interest for a two-day late payment of a huge amount of interest on an amount due on the statement of less than one hundred dollars. My friends immediately called the bank. The Bank kindly reminded them that if you are late paying the balance on the statement they charged interest on all purchases made since the billing date of the original amount due. For clarity, that means if your payment in full is received by the them two days late, and you had added $1000 in additional purchases before you get your next statement, they charge you interest on the additional $1000 for the entire period plus the original amount due. My friends asked me to review their cardholder agreement and in fact it does allow them to charge interest this way, however consider how much interest they would have been dinged for if they had just put that new wide screen TV on their card.

What makes this particular instance more interesting is that they had checked their account balance on-line the day they wrote the cheque and had included payment for their new purchase up to the date they had wrote the cheque. Not only had the card company charged them interest for the period from the date of the new purchase to the date they had received payment they also charged interest on those paid for purchases for nine additional days to the next billing date as if they had not received the money. I prepared an Excel spreadsheet and calculated the actual interest based on their current account balance. For that nine-day period the interest is not the 18.5% the card company claims it to be on the statement. The actual interest for that period worked out to be 92.4% per annum. My friends faxed a memo to the card company asking why they were charged this interest for the period of time the amount due was already paid. The bank has responded offering to reverse the credit charges as a good will gesture because the account is normally kept current, yet were silent about charging interest on the paid amount.

The point of this email is to remind everyone just how the credit card companies’ policies are usurious and the drastic effect that can have on your wallet. If you were late on a small amount and then charge a significant purchase to your card it would incur a substantial interest charge that is totally inappropriate. We know the governments will not fix this. Maybe it is time for the consumers to protest by boycotting one specific card company for an entire month. We would pay our accounts on time, however we would not use their card to charge anything for that month. That would hurt them where they pay attention. It might even cost the Vice-President of that division his/her huge annual bonus!

What are your thoughts?

Mark Fidgett | 604-273-2002

"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072 W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Can you still buy with ZERO Down in Canada?

Mark Fidgett - www.NotaPennyDown.com — Fri, 06 Nov 2009 17:17:04 -0600

Can you still buy with ZERO Down in Canada?

New Blog Post at

www.notapennydown.com/blog

Take care,

Mark Fidgett
"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
F http://www.facebook.com/people/Mark-Fidgett/1131578457
T http://www.twitter.com/mortgagemark

An independent Mortgage Specialist associated with the Verico Mortgage Network.

You’re Smart, Does That Make Your Banker Dumb?

Mark Fidgett - www.NotaPennyDown.com — Wed, 14 Oct 2009 15:08:58 -0500

New Blog Post at

www.notapennydown.com/blog

Take care,

Mark Fidgett
"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
F http://www.facebook.com/people/Mark-Fidgett/1131578457
T http://www.twitter.com/mortgagemark

An independent Mortgage Specialist associated with the Verico Mortgage Network.

MAKE YOUR MORTGAGE TAX DEDUCTIBLE

Mark Fidgett - www.NotaPennyDown.com — Wed, 14 Oct 2009 15:05:02 -0500

New Blog Post at

www.notapennydown.com/blog

Take care,

Mark Fidgett
"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
F http://www.facebook.com/people/Mark-Fidgett/1131578457
T http://www.twitter.com/mortgagemark

An independent Mortgage Specialist associated with the Verico Mortgage Network.

CMHC Mortgage Insurance - How Much Does It Cost?

Mark Fidgett - www.NotaPennyDown.com — Wed, 14 Oct 2009 15:01:24 -0500

New Blog Post at

www.notapennydown.com/blog

Take care,

Mark Fidgett
"Your Personal Mortgage Consultant....For Life!"

PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
F http://www.facebook.com/people/Mark-Fidgett/1131578457
T http://www.twitter.com/mortgagemark

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Check us out on Twitter

Mark Fidgett - www.NotaPennyDown.com — Thu, 01 Oct 2009 18:27:33 -0500

With mortgage rates dropping,it’s strategy time…

Mark Fidgett - www.NotaPennyDown.com — Sun, 27 Sep 2009 17:59:42 -0500

It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher.

Now, the cost of mortgages is coming down. If you’re buying a home or renewing a mortgage, it’s time to review your options at www.notapennydown.com

Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it’s possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.

Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.

Variable-rate mortgages are all over the map right now, but we have a few at prime with some lenders.

Can variable-rate mortgages fall back to their pre-crisis lows any time soon?

I think NOT and we may even see them dip below prime.

If you’re carrying any high interest debt this is a great time to look at the following strategy

CLICK HERE

PS - Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
F http://www.facebook.com/people/Mark-Fidgett/1131578457
T http://www.twitter.com/mortgagemark

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Still no Italy lottery winner as jackpot soars higher

Mark Fidgett - www.NotaPennyDown.com — Wed, 19 Aug 2009 12:15:21 -0500

Still no Italy lottery winner as jackpot soars higher

August 18, 2009

http://www.worldlottocorporation.com/

A man fills out his SuperEnalotto lottery ticket in a shop in central Rome on August 12, 2009. Italy's lottery prize has risen to a world record-breaking 131.5 million euros (186 million dollars) since no ticket holder claimed the winning numbers. No-one in the country has had the six winning numbers in the SuperEnalotto game since January, which has caused this year's prize to break World records. The lottery has also attracted interest from neighbouring countries and visitors have reportedly come to Italy to place their bets in the hope of choosing the right six numbers.

Photograph by: ANDREAS SOLARO, AFP/Getty Images

ROME — A betting frenzy among Italians is set to continue after the record-breaking state lottery again failed to produce a winner on Tuesday, sending the jackpot up to almost 144 million euros ($203.6 million).

No-one has picked the winning 6-number combination since January and the rising jackpot has tempted unprecedented numbers of Italians to take their place in queues for tickets at bars and tobacconists to try to land the life-changing prize.

The SuperEnalotto jackpot, at 143.9 million euros, is the biggest ever in Europe and has even drawn tourists from neighbouring countries across Italy's borders to try their luck.

A phone-in contest in Germany offered the winners 140 free return airline tickets from Berlin to Milan's Malpensa airport to play the lottery, the popular daily Bild reported.

The jackpot has not been won since Jan. 31, despite draws being held three times a week, every Tuesday, Thursday and Saturday.

However the SuperEnalotto already has one big winner -- the hard-pressed Italian Treasury, which has seen lottery money go some way to compensate for a slump in tax revenues as Italy grapples with its worst post-war recession.

The Treasury will keep about half of more than 2 billion euros of bets laid since the last jackpot in January.

The rest is paid out in winnings and divided between ticket vendors and lottery organiser Sisal SpA.

The SuperEnalotto fever saw monthly bets on the game rise to 441 million euros in July from a more usual 200 million euros as Italians, lured by the massive prize, are clearly happy to spare the minimum of one euro for a lottery ticket.

Betting rose a further 67.8 percent in the first half of August from the same period in July, and has risen 13.2 percent in the last week from the week before, Italian state television RAI reported on Tuesday.

http://www.worldlottocorporation.com

Euro Lottery & Internet Lotto Games - Buy Tickets Online | WLC


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The World Lotto Corporation (WLC) is an official European lottery site and platinum marketing partner of Europe's most respected lottery organisation, the International Lottery in Liechtenstein Foundation (ILLF), which launched the world’s first Internet lottery, PLUS Lotto, in 1995. WLC was established to provide customers with secure access to play lottery games that offer the opportunity to win millions. The larger Jackpot prizes are insured by a Lloyds of London broker to ensure guaranteed Jackpot prize payouts. As a portion of every ticket you purchase goes to support charitable and worthwhile causes worldwide, WLC thanks you for your support. Read more...

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Our July 30th, 2009 SQUAMISH CHIEF Hike with our friends from Morocco

Mark Fidgett - www.NotaPennyDown.com — Tue, 04 Aug 2009 11:50:51 -0500

The Stawamus Chief (often referred to as simply The Chief, or erroneously as the Squamish Chief) is a granite dome located adjacent to the town of Squamish, British Columbia. It towers over 700 m (2,297 ft) above the waters of nearby Howe Sound. It is often claimed to be the "second largest granite monolith in the world."[1] The Sḵwxwú7mesh, indigenous people from this area, consider the Chief to be a place of spiritual significance. The mountain gets its name from their village near its foot, St'a7mes (Stawamus).

“Do You Know What Bob & Terri Did Last Week?”

Mark Fidgett - www.NotaPennyDown.com — Thu, 26 Feb 2009 17:22:52 -0600

You may be shocked and surprised to find out...

Dear Friend,

Just a quick note to let you know how I might help you, or anyone you would introduce to me.

Bob & Terri were introduced to me about 18 months ago by a Realtor friend. They purchased a home and I secured a 5 year mortgage of $250,000 at 5.79% for them.

They now subscribe to my “Rate Watch” email update and when they saw the 5 year rate hit 4.19%, they called right away to lower their rate. This one phone call ended up saving them $12,400 after their pay out penalty.

Interest rates are almost at their lowest levels ever. Right now, a 5 year fixed mortgage is at 4.19%! - and I want you and your friends to be able to take advantage of it.

We may be able to get you a lower interest rate mortgage with a lower monthly payment and either apply the difference to paying off your mortgage sooner...or use the difference as your own personal "economic stimulus" package :)

I've got a special software program that instantly runs the numbers to see how much money the different rates will save you monthly...and what TARGET rate makes sense to consider locking in.

The software is pretty detailed, and it only takes a minute to run several different scenarios. Just give me a call at 604-273-2002 and I'll run a report for you and any of your family or friends.

PS - Timing is important on this - so call me as soon as you can!

Take care,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

Each VERICO broker is an independent owner operator.
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The Secret Revealed - There's NO Secret!

Mark Fidgett - www.NotaPennyDown.com — Thu, 26 Feb 2009 17:20:28 -0600

For some, the verdict's still out on the Secret

The Truth is "There's NO Secret" and never was one.

Let me explain -

Speak about your intentions and desires often. Declare them to the world. Tell your family and friends about what you want to have, do, and be. The more you talk about what you want, the more you'll have what you want.

Why is that??...(NO SECRET)

Because the more you talk about your heart's desires, the higher they'll move into your awareness. You'll begin to see opportunities that were previously invisible. You'll form new connections in your mind and view possibilities of your life from the highest vantage point.

To make this whole process work, you must remember that success lies in its execution. The reason why so many business ventures fail is because they're weak in their execution. They haven't built a disciplione for getting things done.

Take care,

Each VERICO broker is an independent owner operator.
© Copyright NotaPennyDown.com 2008. All Rights Reserved.

They're Working On A One World Government!

Mark Fidgett - www.NotaPennyDown.com — Thu, 26 Feb 2009 17:15:53 -0600

They're Working On A One World Government! http://tinyurl.com/caryy9

Take care,

Each VERICO broker is an independent owner operator.
© Copyright NotaPennyDown.com 2008. All Rights Reserved.

Ready to Buy?

Mark Fidgett - www.NotaPennyDown.com — Fri, 16 May 2008 09:48:55 -0500

Ready to Buy?

Making an Offer to Purchase


	Offer to Purchase: A written contract setting out the terms under which the buyer agrees to buy the home. If the Offer to Purchase is accepted by the seller, it forms a legally binding contract that binds those who have signed it to certain terms and conditions.

Once you have found the home you would like to purchase, you need to present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale. As your home is probably your biggest investment, it would be wise to work with your real estate agent and/or a lawyer/notary in preparing your offer. Remember that the Offer to Purchase or Agreement of Purchase and Sale is a legal document and should be carefully prepared.

Any offer or agreement will typically include:

Your legal name, the name of the vendor and the legal civic address of the property.

The purchase price offered.

The chattels that will be included in the purchase price (e.g.: window coverings, appliances or a satellite dish). Whatever items in or around the home that you think are included in the sale should be specifically stated in your offer.

The amount of deposit.

The closing day (date you take possession of the home) — usually 30 to 60 days from the date of agreement. It can also be 90 days or longer.

Request for a current land survey of the property.

Date when the offer becomes null and void.

Any other conditions that go with the offer, including property inspection and approval of mortgage financing.

The process of making an offer, receiving a counteroffer and then revising it again is not uncommon. The whole process can seem like a roller coaster ride — exciting, but stressful. It's all part of making the deal work best for you and the vendor.

The diagram below outlines the entire process for you in detail.

Steps for the Offer to Purchase

You
Your real estate representative helps you prepare an Offer to Purchase.This offer should include all the details of the sale.	You may want your lawyer to look at the offer BEFORE you show it to the vendor, because it is a legally binding document.	Your real estate representative or lawyer will then present the offer to the vendor, who will accept (1), make a counteroffer (2) or reject (3).
Vendor
Situation 1 The vendor accepts your offer. The deal is concluded.
Situation 2 The vendor may make a counteroffer, asking for a higher price or different terms.	You sign the offer back to the vendor with a higher price than your original offer, but lower than the vendor’s counteroffer.	The vendor accepts this counteroffer. The deal is concluded.
Situation 3 The vendor may make a counteroffer, asking for a higher price or different terms. If a counteroffer is returned to you at a higher price, ensure that you know exactly how much you can afford before you start negotiating.You don’t want to get caught up in the heat of the moment with costs you can’t afford.	You reject the counteroffer and decide not to make a subsequent counteroffer.	The sale doesn’t go through and your deposit is returned.

When you make an Offer to Purchase, your real estate agent or your lawyer/notary will most likely add certain conditions to it, making it a conditional offer. This means that the contract will only become final when the conditions are met. The following three conditions are generally standard in an Offer to Purchase, especially for first-time buyers:

A satisfactory home inspection report

A property appraisal

Lender approval of mortgage financing to finance the purchase

Once these requirements are met, the conditions are removed and the Offer to Purchase becomes final.

Home Inspection

It is always a good idea to have the home you are buying inspected by a knowledgeable and professional home inspector. The inspector will go through the property and perform a comprehensive visual inspection to assess the condition of the house and all of its systems. When you receive the home inspection report, you and your real estate agent will have to discuss how required repairs may affect the sale price that was agreed upon.

New Home Warranty Programs

A home inspector is not used as frequently for new homes if the builder provides a New Home Warranty. Warranty coverage varies from one province to another, but typically covers labour and materials in your new home for at least one year after completion. It is also intended to address structural defects for a minimum of five years, and up to ten years with some extended coverage options. A dollar cap is common. Before you sign a contract for a new home, contact your New Home Warranty Program office for a list of registered builders in your area.

For Condominiums or Strata Units

To buy a resale condominium or strata unit, you will have to get a satisfactory Estoppel Certificate or Certificate Status (does not apply in Quebec). This should be included as a condition in the Offer to Purchase. If condominium living is your housing choice, ask for CMHC’s free publication called Condominium Buyers’ Guide.

Mortgage Approval

A pre-approved mortgage certificate is not a guarantee of being approved for the mortgage loan. Even if you have a pre-approved mortgage certificate, you must still meet your lender during the conditional offer period to get a final mortgage approval. To ensure that the process goes smoothly, make sure you bring:

A copy of the property listing

A copy of the signed Offer to Purchase

Your lender will update/verify your financial information, the property and other information required to complete the mortgage application. Your lender may require an appraisal and/or a survey. Title insurance may also be required. Your lender will also inform you on the various types of mortgages, terms, interest rates, amortization periods and payment schedules available.

Depending on your down payment, you may have a conventional or high-ratio mortgage.


	Conventional mortgage: A mortgage loan up to a maximum of 80% of the lending value of the property. Typically, the lending value is the lesser of the purchase price and market value of the property. Mortgage insurance is usually not required for this type of mortgage.


	High-ratio mortgage: A mortgage loan higher than 80% of the lending value of the property. This type of mortgage may have to be insured — by CMHC, for example — against payment default.

A conventional mortgage is a mortgage loan that does not exceed 80% of the lending value of the property. The lending value is typically the lesser of the property’s purchase price and market value. Your down payment is at least 20% of the purchase price or market value.

If you contribute less than 20% of the home price as a down payment you will typically need a high-ratio mortgage. This type of mortgage usually requires mortgage loan insurance, of which CMHC is a major provider. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing.

Fixed, Variable or Adjustable Interest Rate

Mortgage interest rates are either fixed, variable or adjustable. A fixed rate is a locked-in rate that will not increase for the term of the mortgage. A variable rate fluctuates based on market conditions while the mortgage payment remains unchanged. With an adjustable rate, both the interest rate and the mortgage payment vary based on market conditions.

Closed Mortgage

A closed mortgage may be a good choice if you'd like to have a fixed payment that will allow you to adjust your budget to your new lifestyle. However, closed mortgages are not flexible and there are often penalties or restrictive conditions attached to prepayments or additional lump sum payments. It may not be the best choice if you decide to move before the end of the term or if you want to benefit from a potential decrease of interest rates.

Open Mortgage

This type of mortgage is flexible and can usually be pre-paid by any lump sum or paid off at any time without penalty. An open mortgage can be a good choice if you plan to sell your home in the near future or to pre-pay with large lump sums. Most lenders will allow you to convert to a closed mortgage at any time, although you may have to pay a small fee.

Term

Your lender will also inform you on the term options for the mortgage. This is the length of time that the agreed-upon mortgage contract conditions, including interest rate, will be fixed. It can vary from six months to ten years. Choosing a longer term (e.g.: five years) gives you the chance to plan ahead and protects you from interest rate increases while you adjust to homeownership. Weigh your options carefully and don't be afraid to ask your lender to work out the differences between a one, two, five-year term or longer term.

Amortization

This is the amount of time over which the entire debt will be repaid. Many mortgages are amortized over 25 years, but longer periods are available. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run.

Payment Schedule

A mortgage loan is often repaid in regular payments, either monthly, biweekly or weekly. Payment schedules that are more frequent can save some interest costs by reducing the outstanding principal balance more quickly than with monthly payments. The more payments you make in a year, the lower the overall interest you have to pay on your mortgage.

Keep in mind that mortgages may have important payment features that can save you money and let you be mortgage-free sooner.

Once the Offer is Accepted

Once all the conditions of the offer are fulfilled or dropped, it is time to start thinking ahead and making arrangements:

Give notice to your landlord if you are renting.

Start looking at moving options — hiring a professional or doing it yourself.

Make necessary address changes (utilities, services, post office). See the Moving to Your New Home worksheet for a more complete list of who to contact.

Arrange for property insurance.

An offer will usually include a clause that allows the buyer to revisit the property a couple of times before closing (after all the conditions are fulfilled) so that he/she can:

Measure for window treatments.

Measure for special-sized furnishings.

Bring in a tradesperson for a renovation or remodelling estimate.

Arrange for these visits in advance to make sure your real estate agent is available.

Take care ,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

Each VERICO broker is an independent owner operator.
© Copyright NotaPennyDown.com 2008. All Rights Reserved.

How Can you Find the Right Home?

Mark Fidgett - www.NotaPennyDown.com — Fri, 16 May 2008 09:41:04 -0500

How Can you Find the Right Home?

Start the Search


	Vendor take back mortgage: This is when the vendor rather than a financial institution finances the mortgage. The title of the property is transferred to the buyer who makes mortgage payments directly to the seller. These types of mortgages, sometimes referred to as take back mortgages, can be helpful if you need a second mortgage to buy a home.

Once you figure out what you can afford to pay for a house and obtain a pre-qualified mortgage, you are ready to start your search. There are a variety of sources you can use to find the home that is right for you:

Word of mouth. By telling everyone you know that you are looking for a house, you might hear about homes that are just becoming available on the market.
Newspapers and real estate magazines. Check the new homes section in daily newspapers or look for real estate magazines available at newsstands, convenience stores and other outlets. These free publications feature pictures and brief descriptions of a variety of homes.
The Internet. Check out real estate websites, such as http://www.mls.ca for information and pictures of a wide range of properties. This site allows you to narrow your search by location, price, number of bedrooms and other features.
"For Sale" signs. Drive around a neighbourhood that interests you and look for “For Sale” signs. This is a good way to find homes that are being sold by the owner.
Visit new development sites. If you are looking for a newly built home, this will allow you to see the different models available and to get information from builders.
Work with a real estate agent. For most buyers, a real estate agent is key to finding the right home.

Take care,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

Each VERICO broker is an independent owner operator.
© Copyright NotaPennyDown.com 2008. All Rights Reserved.

What Professionals Should You Call On?

Mark Fidgett - www.NotaPennyDown.com — Sun, 11 May 2008 20:12:07 -0500

What Professionals Should You Call On?

Because purchasing a home is probably the biggest investment you will ever make, you'll definitely want a team of professionals working with you throughout the process.

The Real Estate Agent

No one will play a more important role in helping you find a home than your real estate agent. Your real estate agent's job is to:

Help you find the ideal home.
Write an Offer of Purchase.
Negotiate on your behalf to help you get the best possible deal.
Provide you with important information about the community, arrange and coordinate the home inspection and essentially save you time, trouble and money.

When the time comes to select a real estate agent, don't be afraid to ask questions — especially about any possible service charges. Vendors normally pay a commission to the agent but some agents charge buyers a fee for their services. Use the Checklist for Evaluating Real Estate Agents to help you choose your real estate agent. If you would like to know more about a real estate agent's ethical obligations, you can visit the Canadian Real Estate Association's website at http://www.crea.ca or call your local real estate association.

The Lawyer/Notary

You need a lawyer (or a notary in Quebec) to protect your legal interests such as ensuring the property you are thinking of buying does not have any building or statutory liens or charges or work or clean-up orders associated with it. He or she will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase. Having a lawyer/notary involved in the process will give you peace of mind and ensure that things go as smoothly as possible. Law associations can refer lawyers/notaries who specialize in real estate law (in Quebec, contact the Chambre des notaires du Québec).

Lawyer/notary's fees range widely and depend on the complexity of the transaction. Shop around for rates and, when choosing your lawyer/notary, use the Checklist for Selecting a Lawyer/Notary to guide you.

Remember that a lawyer/notary:

Should be a licensed full-time lawyer/notary.
Should be local and understand real estate laws, regulations and restrictions.
Should have realistic and acceptable fees.
Can explain things in plain language.

The Home Inspector

You should consider having any home you are thinking of buying inspected by a knowledgeable and professional inspector.

The home inspector's role is to inform you on the property's condition. He will tell you if something is not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be done and he/she may even be able to tell you where there may have been problems in the past.

Every inspection should include an evaluation of at least the following:

Foundation
Doors and windows
Roof and exterior walls
Attics
Plumbing and electrical systems
Heating and air conditioning systems
Ceilings, walls and floors
Insulation
Ventilation
Septic tanks, wells or sewer lines
Any other buildings such as a detached garage
The lot, including drainage away from buildings, slopes and natural vegetation
Overall opinion of structural integrity of the buildings
Common areas (in the case of a condominium/strata or co-operative)

There is presently no mandatory certification and no legislated requirements for home inspectors to take any courses or to have passed any tests. Anyone can say that they are a home inspector. However, a good home and property inspector generally belongs to a provincial or regional industry association. CMHC does not recommend or endorse any individual home inspector or association. CMHC supports national uniform standards of competency for home inspectors. For more information on the inspection industry’s National Certification Program, please refer to the National Certification Authority’s website http://www.nca-anc.com/.

Home inspector fees generally range around $500, and depend on the size and condition of the home. Use the Home Inspection Checklist to review your home inspection report.

The Insurance Broker

An insurance broker can help you with your insurance needs, including property insurance and mortgage life insurance. Lenders insist on property insurance because your property is their security for your loan. Property insurance covers the replacement cost of your home, so premiums may vary depending on its value.

Your lender may also suggest that you buy mortgage life insurance. Mortgage life insurance provides coverage for your family should you die before your mortgage is paid off. This type of insurance is often available through your lender, who then simply adds the premium to your regular mortgage payments. However, you may want to compare rates between both an insurance broker and your lender.

Be careful not to confuse property or life insurance with mortgage loan insurance, which may be required for high-ratio mortgages.

The Appraiser

Having an independent appraisal done on a property before you make an offer is a good idea. It will tell you what the property is worth and help ensure that you are not paying too much. Your lender can also ask for a recognized appraisal in order to complete a mortgage loan.

The appraisal should include an unbiased assessment of the property's physical and functional characteristics, an analysis of recent comparable sales and an assessment of current market conditions affecting the property.

Appraisal fees may vary but you should not pay more than $250 – $350 in most areas for a typical single-family house.

Your real estate agent may be able to refer an appropriate professional.

The Land Surveyor

If the seller does not have a Survey or Certificate of Location, you will probably need to get one for your mortgage application. If the Survey in the seller's possession is older than five years, it will probably need to be updated. Remember that you must have permission from the property owner before hiring a surveyor to go onto the property. Ask your real estate agent to help co-ordinate this with the owner.

The Builder/Contractor

If you are buying a newly constructed home or require renovations to a resale home, you will have to hire a builder or contractor. Here are some things to keep in mind when choosing one:

Ask for references and talk to other customers about the builder's performance.
Check with the New Home Warranty program in the area.
Visit other housing developments that the company has built.
Ask builders or contractors if they are members of a local homebuilders' association or ask for a provincial license number.

If you are having a custom home built, remember that:

You may want to hire an architect.
Builders of custom homes usually work on either a fixed-price or a cost-plus basis. Authorize any changes to your contract by writing your name or initials beside the change.

On a final note, make sure your contract is as specific as possible about construction details, right down to the brand name or model number of any finishes. Make sure that you initial any changes to your contract. Use this handy worksheet when you assemble your Team of Professionals.

Take care ,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

What Should You Buy?

Mark Fidgett - www.NotaPennyDown.com — Sun, 11 May 2008 20:08:47 -0500

What Should You Buy?

Your Current and Future Needs

Before you start searching for a home, you need to think about your needs both now and in the future. Here are some things to consider:

Size requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
Special features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?
Lifestyles and stages. Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement?

Try to buy a home that meets most of your needs for the next 5 to 10 years, or find a home that can grow and change with your needs. Use the Home Features Checklist to see what you want, need and may potentially need in the future. Use the Home Hunting Comparison Worksheet to note and compare features of up to 3 different homes to help you decide on the right home for you.

Choosing a Location That Is Right for You

Even if the home you choose has everything you need, the location might not be appropriate. When deciding where to live, you should take the following things into consideration:

Whether you want to live in a city, a town or even in an out-of-town location
Where you work and how easy it is to commute
Where your children will attend school and how they will get there
Whether you need a safe walking area or recreational facilities such as a park nearby
How close you would like to be to family and friends

Ask for CMHC’s free publication called Your Next Move: Choosing a Neighbourhood with Sustainable Features. Simply visit www.cmhc.ca or call 1-800-668-2642.

New Home, Previously Owned or Build Your Own?

When thinking about the kind of home you want, the first thing you should consider is whether you want a previously owned home (often called a resale) or a new home. Here are some characteristics that may help you decide:


	Diane and Wayne's dream home was a home with four bedrooms, a large family room, a big yard and situated in a preferred location. When they did their calculations, they realized that they couldn't balance that home and that location with their budget. Instead of putting aside their dream, they continued to look and they found a smaller house they could afford in a nice neighbourhood. After all, those extra rooms could come later!

New Home

Personalized choices. You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
Up-to-date with the latest codes/standards. The latest building codes, electrical and energy-efficiency standards will be applied.
Maintenance costs. Lower maintenance costs because everything is new and many items are covered by a warranty.
Builder warranty. A homebuilder's warranty is usually available in all provinces (except Nunavut and the Northwest Territories). This can be important if a major system such as plumbing or heating breaks down. This warranty does not apply if you build the home yourself.
Neighbourhood amenities like schools, shopping malls and other services may not be complete for years.
Taxes such as the Goods and Services Tax (GST) (or, in certain provinces, the Harmonized Sales Tax (HST)) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at, http://www.cra-arc.gc.ca.
Extra costs. You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what's included in the price of your home.

Resale Home

Easy access to services. Probably established in a neighbourhood with schools, shopping malls and other services.
Landscaping is usually done and fencing installed. Previously owned homes may have extras like fireplaces or finished basements or swimming pools.
No GST/HST. You don't have to pay the GST/HST unless the house has been renovated substantially, and then the taxes are applied as if it were a new house.
Possible redecorating and renovations. You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.

Building Your Own Home

Some people prefer the challenge and flexibility of building their own home. On one hand you can get exactly what you want in terms of size, design, location, quality of material, level of energy-efficiency, etc. However, you should expect to invest lots of time and energy.

Deciding on the Type of Home to Buy

There are many types of homes to choose from and each has its advantages and disadvantages. Think about your needs before making a decision. Don't forget to look beyond the walls. The environment surrounding your home can be almost as important as the environment inside of it.


	Susan, after looking at several suburban homes, decided that buying an urban condominium would give her more of what she wanted for less money. She found one with a full fitness centre in a downtown area she liked, for less than a home in the suburbs, and with no worry about exterior maintenance, yard work or commuting.

Single-family Detached

The most popular style and the most solid investment. It is a free-standing home which sits on its own lot thereby offering a greater degree of privacy.

Semi-detached

A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a single-family detached home and is usually less expensive to buy and maintain.

Duplex

Two units — one above the other or side by side. The owner usually lives in one unit and rents the other.

Row House or Townhouse

One of several types of single-family homes joined by common walls. It offers less privacy than a single-family detached home but still provides a separate outdoor space. These homes can cost less to buy and maintain.

Link or Carriage Home

Houses joined by garages or carports which provide access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.

Manufactured Home

A factory-built single-family home that is transported to your chosen location and placed on a surface-mounted foundation. The term manufactured home has replaced the term "mobile home".

Modular Home

Also a factory-built home constructed in compliance with local building codes. The home is typically shipped to your location in two or more sections. It may or may not have a longitudinal sub-frame.

Condominium

Refers to a form of legal ownership as opposed to a style of construction. Condominiums can be high-rise residential buildings, townhouse complexes, individual houses and low-rise residential buildings. Condominiums are also known as stratas in British Columbia or syndicates of co-ownership in Quebec.

Take care ,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

How Much will it Really Cost?

Mark Fidgett - www.NotaPennyDown.com — Sun, 11 May 2008 20:06:05 -0500

How Much will it Really Cost?

Once you have figured out the home price range you can afford and the type of mortgage you qualify for, you will need to calculate all of the associated costs of the transaction to make sure you are financially ready.

Up-Front Costs

You will need to plan ahead to cover the many up-front costs of buying a home. Timing is important to help make sure things go smoothly.

Mortgage Loan Insurance Premium. If yours is a high-ratio mortgage (less than 20% down payment), your lender may need mortgage loan insurance. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing.
Appraisal Fee. Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost is usually between $250 and $350 and must be paid when you contract for those services.
Deposit. This is part of your down payment and must be paid when you make an Offer to Purchase. The cost varies depending on the area, but it may be up to 5% of the purchase price. If you wish to make a down payment of 5% and you give a deposit of 5%, then your down payment is considered to be made.
Down Payment. With mortgage loan insurance from CMHC you can own your home with little or no down payment. At least 20% of the purchase price is usually required for a conventional mortgage.
Estoppel Certificate Fee (not applicable in Quebec). This applies if you are buying a condominium or strata unit and could cost up to $100.
Home Inspection Fee. Remember that this may be a condition of your Offer to Purchase. A home inspection is a report on the condition of the home and generally ranges around $500, depending on the complexities of the inspection. For example, it may be more costly to inspect a home that has large square footage, one that is expensive or one where contaminants such as pyrite, radon gas or urea-formaldehyde are suspected.
Land Registration Fees (sometimes called a Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchases Tax).You may have to pay this provincial or municipal charge upon closing in some provinces. The cost is a percentage of the property's purchase price and may vary. Check with your lawyer/notary to see what the current rates are.
Prepaid Property Taxes and/or Utility Bills. To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc.
Property Insurance. The mortgage lender requires this because the home is security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.
Survey or Certificate of Location Cost. The mortgage lender may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to get one, you will have to pay for it yourself. It can cost in the $1,000 to $2,000 range.
Water Quality Inspection. If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable. You can negotiate these costs with the vendor and list them in your Offer to Purchase.
Legal Fees and Disbursements. Must be paid upon closing and cost a minimum of $500 (plus GST/HST).Your lawyer/notary will also bill you direct costs to check on the legal status of your property.
Title Insurance. Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property.

If you feel you cannot cover all of the up-front costs, you can ask your lender for a loan. Remember that payment for this loan amount, based on a 12-month repayment period, will have to be included in your Total Debt Service ratio calculation.

Other Costs

Besides up-front costs, there are other expenses to consider:

Appliances. Check to see what comes with the house, if anything.
Gardening equipment.
Snow-clearing equipment.
Window treatments. Check to see what comes with the house.
Decorating materials. Paint, wallpaper, flooring and tools for redecorating.
Hand tools. You will need some basic hand tools for your new home.
Dehumidifier. May be required to control moisture levels, especially in older homes.
Moving Expenses.
Renovations or Repairs.
Service Hook-Up Fees. Charged for utilities. You may be required to pay a deposit for utilities such as telephone and heating services.
Condominium Fees. You may have to make the initial payment for these monthly fees.

Take care ,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

Are you Financially Ready?

Mark Fidgett - www.NotaPennyDown.com — Sun, 11 May 2008 20:03:06 -0500

Are you Financially Ready?


	Net worth: Your financial worth, calculated by subtracting your total liabilities from your total assets.


	Mortgage: A mortgage is a security for a loan on the property you own. It is repaid in regular mortgage payments, which are usually blended payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money). The payment may also include a portion of the property taxes.

So, you've decided that homeownership is right for you. Now you need to determine if you are financially ready to buy a house.

In this Step, you will find a number of simple calculations that you can do to evaluate your current financial situation, how much house you can afford and the maximum home price that you should be considering.

Once you understand these variables, you can make the best choice for you and even save money.

Test Yourself

To avoid any future surprises, you can do some financial exercises to see where you stand. They include: calculating your net worth, your current monthly expenses and your current monthly debt payments.

Knowing your net worth is important because you will need this information when you discuss a mortgage with your lender. Your net worth is the amount left over once you've subtracted your total liabilities from your total assets. It will also give you a snapshot of your current financial situation and show you how much you can afford to put as a down payment.

How Much Can You Afford?


	Principal: The amount that you borrow for a loan. Each monthly mortgage payment consists of a portion of the principal that must be repaid plus the interest that the lender is charging you on the outstanding loan balance. During the early years of your mortgage, the interest portion is usually larger than the principal portion.

Now that you have a clear picture of your current financial situation, it's time to find out what you can afford in monthly housing costs. Lenders follow two simple affordability rules to determine how much you can pay.

The first affordability rule is that your monthly housing costs shouldn't be more than 32% of your gross household monthly income. Housing costs include monthly mortgage principal and interest, taxes and heating expenses — known as P.I.T.H. for short. If applicable, this sum also includes half of monthly condominium fees and the entire annual site lease (in the case of leasehold tenure).

Lenders add up these housing costs to determine what percentage they are of your gross monthly income. This figure is known as your Gross Debt Service (GDS) ratio. Remember, it must be 32% or less.

The second affordability rule is that your entire monthly debt load shouldn't be more than 40% of your gross monthly income. This includes housing costs and other debts, such as car loans and credit card payments. Lenders add up these debts to determine what percentage they are of your gross household monthly income. This figure is your Total Debt Service (TDS) ratio.

Your Maximum Home Price

The maximum home price that you can afford depends on a number of factors but the most important are your gross household income, your down payment and the mortgage interest rate.

This table gives you an idea of the maximum home price you can afford.

Income, Home Price and Down Payment Guide

Household Income	5% Down Payment	Maximum Home Price	10% Down Payment	Maximum Home Price	25% Down Payment	Maximum Home Price
$25,000	$3,000	$60,000	$6,300	$63,000	$18,900	$75,600
$30,000	$3,900	$78,000	$8,200	$82,000	$24,700	$98,800
$35,000	$4,800	$96,000	$10,100	$101,000	$30,300	$121,200
$40,000	$5,700	$114,000	$12,000	$120,000	$36,000	$144,000
$45,000	$6,600	$132,000	$13,900	$139,000	$41,700	$166,800
$50,000	$7,500	$150,000	$15,800	$158,000	$47,400	$189,600
$60,000	$9,300	$186,000	$19,600	$196,000	$58,800	$235,200
$70,000	$11,050	$221,000	$23,400	$234,000	$70,100	$280,400
$80,000	$12,500	$250,000	$27,200	$272,000	$81,500	$326,000
$90,000	$14,400	$288,000	$31,000	$310,000	$92,800	$371,200
$100,000	$16,275	$325,500	$34,800	$348,000	$104,300	$417,200
Figures are rounded to the nearest $100.

This table assumes a mortgage interest rate of 8%, average tax and heating costs in Canada, and the mortgage an average Canadian would qualify for based on a 32% debt service ratio.

For most people the hardest part of buying a home – especially the first one – is saving the necessary down payment. Many people will not have 20% of the purchase price to put down. With mortgage loan insurance, you can purchase a home with little or no down payment. Mortgage loan insurance protects the lender and, by law, most Canadian lending institutions require it. The way it works is if the borrower defaults (fails to pay) on the mortgage, the lender is paid back by the insurer. The cost for this type of insurance is in the form of a premium and can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

CMHC enables lenders to offer financing of up to 100% of a home’s value to homebuyers who have not yet saved up a down payment and have a proven track record of managing their debt.

For homebuyers who have saved up a down payment, most mortgage loan insurance products require homebuyers to provide the down payment from their own resources, such as savings and RRSPs. Gift down payments from immediate relatives are also acceptable.

For down payments of 10% or less, CMHC enables lenders to offer homebuyers the flexibility to use additional sources of down payment such as borrowed funds or lender incentives.

Financing Required	Premium % of Loan Amount
Up to and including 65%	0.50
Up to and including 75%	0.65
Up to and including 80%	1.00
Up to and including 85%	1.75
Up to and including 90%	2.00
Up to and including 95% Traditional Down Payment Flex Down	2.75 2.90
Up to and including 97% Traditional Down Payment Non-Traditional Down Payment	2.90 3.00
Up to and including 100%	3.10
Extended Amortization Surcharges Greater than 25 years, up to and including 30 years Greater than 30 years, up to and including 35 years Greater than 35 years, up to and including 40 years	0.20 0.40 0.60
*Premiums in Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

Get a Mortgage Pre-Approval


	Amortization: The period of time required to reduce the mortgage debt to zero when all regular blended payments are made on time and provided the terms (payment and interest rate) remain the same.


	Mortgage payment: A regularly scheduled payment that is often blended to include both principal and interest.


	Interest: The cost of borrowing money. Interest is usually paid to the lender in regular payments along with the repayment of the principal (loan amount).

Once you've made the necessary calculations and feel that you are ready to obtain a mortgage, it's a good idea to select a lender to get pre-approved. This means that the lender will look at your finances to establish the amount of mortgage you can afford. At that time, the lender will give you a written confirmation or certificate for a fixed interest rate good for a specific period of time.

Some buyers may not wish to pursue a mortgage pre-approval until they have found the home they want to buy. However, the idea of having a pre-approved mortgage amount makes the search for your new home much easier and less time-consuming because you have a good price range in mind.

Some of the things you will need to have with you the first time you meet with a lender are:

Your personal information, including identification such as your driver's license
Details on your job, including confirmation of salary in the form of a letter from your employer
Your sources of income
Information and details on all bank accounts, loans and other debts
Proof of financial assets
Source and amount of down payment and deposit
Proof of source of funds for the closing costs (these are usually between 1.5% and 4% of the purchase price)

Will You Have Trouble Qualifying for a Mortgage?

Your calculations may show that you will have trouble meeting monthly debt payment and that you will likely have trouble getting approved for a mortgage. Here are some things you can do:

Pay off some loans first
Save for a larger down payment
Revise your target house price

Other Helpful Strategies

Meet with a credit counsellor who can help you minimize your debts.
Buy your home through a rent-to-own program provided by the builder, a non-profit sponsor or a government sponsor.
Find out about programs through which you can help build your own home.
Ask the housing department of your municipality about any special programs available.

The Importance of Your Credit Rating

Before approving you for a mortgage, lenders will want to see how well you have paid your debts and bills in the past. To do this, they simply get a copy of your credit history (credit report) from a credit bureau. This provides them with information on your financial past and use of credit. Before your lender sees your credit history, you should get a copy for yourself to make sure the information is complete and accurate. Simply contact one of the two main credit-reporting agencies (Equifax Canada Inc. or TransUnion of Canada) to get a copy of your credit report. There is often a fee for this service.


	Credit report: The main report a lender uses to determine your credit worthiness. It includes information about your ability to handle your debt obligations and your current outstanding obligations.

Lack of Credit History

If you have no credit history, it is important to start building one by, for example, applying for a standard credit card with good interest rates and terms, making small purchases and paying them as soon as the bill comes in.

Fixing a Credit Record

If you have bad credit, lenders might not want to give you a mortgage loan until you can re-establish a good credit history by making debt payments regularly and on time. Most unfavourable credit information, including bankruptcy, is dropped from your credit file after seven years. If you have bad credit, you may want to consider credit counselling.

Despite your poor credit history, you might still be able to get a mortgage loan if you have a relative such as a family member willing to be a guarantor or co-signer on the loan. This person must meet the lender's borrowing criteria, including good credit history, and is legally obligated to make the mortgage payments if you do not.

Take care ,

Mark Fidgett
"Your Mortgage Consultant....For Life!"

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

Is Homeownership Right for You?

Mark Fidgett - www.NotaPennyDown.com — Sun, 11 May 2008 19:51:26 -0500

Is Homeownership Right for You?

Do you enjoy moving often?

Do you prefer using your savings for such things as vacations, retirement or starting your own business?

Do you enjoy not having to worry about regular maintenance and repairs?


	Down payment: The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage. It generally ranges from 5% to 20% of the purchase price but can be more.


	Mortgage payment: A regularly scheduled payment that is often blended to include both principal and interest.


	Property taxes: Taxes charged by the municipality where the home is located based on the value of the home.

If you answered yes to any of these questions, you may not be ready to own a home yet. While you probably have a lot of good reasons for wanting to buy a home, you also have to consider your reasons for not wanting to.

Remember that buying a home is one of the biggest emotional and financial decisions you'll ever make, so prepare yourself to make a knowledgeable decision.

Although buying a home almost always seems like a great idea, it is important to understand what homeownership involves. Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you're ready.

When most of us consider becoming homeowners, we immediately think of how wonderful it will be. It is true that there are a lot of good reasons for wanting to buy a home. Here are some of the main advantages of owning a home:

Financial Security. If housing prices rise, your home can provide you with some financial security due to capital appreciation.
Flexibility. You can decorate or renovate your home to meet your own family's personal tastes and needs.
Stability. Having a place of your own.

Although it is nice to think about the positive aspects of owning a home, it is important to consider the downsides as well. Here are some of the main disadvantages of owning a home:

Financial Stress. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances.
Maintenance. Keeping your home in good shape requires time and money.
Higher Costs. You may pay more each month for housing than you did as a renter. There are also extra costs for maintenance and property taxes.
More Responsibility. You alone are responsible for payments, repairs and maintenance.

Now that you have an idea of what to expect, the worksheet below will help you determine if homeownership is right for you.

Advantages of Renting	Disadvantages of Renting

Advantages of Buying	Disadvantages of Buying

If you answer YES to the questions below, check the column to the right of the question.		YES
1	Based on your answers above, does buying a home seem to have the most compelling advantages for you?
2	Are you fairly certain you will not move to another community in the near future?
3	Do you want to stay in the community where you are currently living?
4	Do you expect your income to remain the same or increase in the future?
5	Can you handle the financial responsibility of a mortgage?
6	Do you want to take care of the repairs and improvements on a home?
7	Based on this analysis, do you think buying a home is the best choice for you?

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Ready to Buy?

Ready to Buy?

Making an Offer to Purchase

Steps for the Offer to Purchase

Home Inspection

New Home Warranty Programs

For Condominiums or Strata Units

Mortgage Approval

Fixed, Variable or Adjustable Interest Rate

Closed Mortgage

Open Mortgage

Term

Amortization

Payment Schedule

Once the Offer is Accepted

How Can you Find the Right Home?

How Can you Find the Right Home?

Start the Search

What Professionals Should You Call On?

What Professionals Should You Call On?

The Real Estate Agent

The Lawyer/Notary

The Home Inspector

The Insurance Broker

The Appraiser

The Land Surveyor

The Builder/Contractor

What Should You Buy?

What Should You Buy?

Your Current and Future Needs

Choosing a Location That Is Right for You

New Home, Previously Owned or Build Your Own?

New Home

Resale Home

Building Your Own Home

Deciding on the Type of Home to Buy

Single-family Detached

Semi-detached

Duplex

Row House or Townhouse

Link or Carriage Home

Manufactured Home

Modular Home

Condominium

How Much will it Really Cost?

How Much will it Really Cost?

Up-Front Costs

Don't forget to tune in to the BIO channel at 10pm - My friend Sean Stepenson's show "3 foot Giant" is on!
http://www.youtube.com/watch?v=1_4YpAHxAwA - pass it on...we need 300,000 to see the pilot for it to go to series