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With the change in weather, it is time for Fall Maintenance. You will find helpful hints on saving money on your lighting costs as well as a few reminders for home maintenance.
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Bright Ideas for Lighting
A home that is warm and bright can feel a lot cozier on a winter night. But much of the energy we use to light our homes is wasted. Try these easy ways to save energy - and cut your electricity bills.
* If you still have incandescent light bulbs, change them to fluorescent light (CFL) bulbs. CFLs use 75% less energy and last up to 10 times longer.
* Motion detectors can provide convenient and safe lighting only when it's needed in your parking area, laneway, or porch.
* Consider adding motion sensing lighting on the inside of your home as well. It can be convenient on landings and in hallways, closets and bathrooms, eliminating the need to fumble for light switches in the dark, and also ensuring you're not lighting up rooms that no one is using.
* If you decorate your home with strings of lights during the holidays, consider using energy-efficient LED lights.
* Replace your wall-mounted light switches with dimmer switches for increased energy savings, longer bulb life, and more relaxing lighting. Upgrade older dimmers that are warm to the touch, since these switches don't save energy.
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Fall Home Maintenance
Wrap up your air conditioner
The warm days have faded and the heating hasn't yet been switched on. This is the perfect time to prepare your air conditioning unit for the winter. You'll save money on energy bills and keep it in good shape for next year.
If you have a window unit, remove it if you can. If you can't, be sure to seal around the edges with caulk, and cover it with an airtight, insulated jacket.
If you have central air, cover the outdoor unit with a specially designed jacket to keep debris from accumulating during the inclement weather. Remember to flip the dedicated breaker switch.
Also, it is time to turn off your underground sprinklers and blow out the lines. Doing this before it gets too cold will help to save unnecessary repairs in the spring.
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Mortgage ABC's
Equity: The portion of a property's value that the homeowner owns outright. This is equal to the value of the property, less the amount owed on its mortgage.
Conventional Mortgage: A mortgage loan of up to 80% of the property's lending value. These mortgages usually do not require mortgage loan insurance.
Home Equity Line of Credit: A flexible borrowing option backed by the borrower's home, giving access (at the borrower's discretion) to a predetermined percentage of the home's equity.
If you or someone you know has been declined by their bank, Mortgage Mama may be able find a solution. With over 40 lenders to choose from, there are options you may not know about.
At no cost to you, Mortgage Mama will find you the best mortgage to meet your needs.
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Need more ideas on purchasing a new home, budgeting, consolidating debt, or saving money on your mortgage interest? Call me today.
Remember, my services are free. I provide the knowledge needed to make wise financial decisions.
Sincerely,
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Carol Dorn, AMP
The Mortgage Mama
Don't Keep Me A Secret - I Love Referrals!
250-808-5521 Toll Free: 1-877-808-5521
#103-1553 Harvey Ave., Kelowna, BC V1Y 6G1
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Spring has finally arrived!! In this issue you will find some great tips for Greening your Home and Increasing Value with Good Landscaping. For those of you with a sweet tooth, I have included a great Fruit dip recipe.
Greening Your Home -
Making your home more environmentally friendly
is easier than you think.
While your heart might be in the right place, admit it: There's something intimidating about making the change to a greener lifestyle. What's a socially conscious person to do, and where should they start? With a few simple changes from room to room, you, too, can help make the world a healthier place to live.
BATHROOMS - Two simple fixes can make a world of difference: First, ditch that old, leaky showerhead for a new low-flow style; and second, fix your leaky toilet. Think you don't have a leak? Think again. A lot of toilets have clear water from the well going into the base, but, because it's clear, you can't tell. To test, put food dye in the toilet for 20 minutes. If there's no colour when you return, you're wasting thousands of gallons of water every year - not to mention what it's costing your pocketbook.
KITCHEN - The most efficient change can be the most expensive one, depending on how far you want to go. But your best bet for greening this room is to choose appliances that bear the Energy Star label. When you're deciding on a fridge and torn between two energy hogs, go for the one with the label - it will pay off in the long run.
LIVING ROOM - It all boils down to one word: paint. To ensure that you're not going to waste any - and how many of us haven't? - make sure that you measure the room and use a paint calculator to determine exactly what you need. Check the volatile organic compounds (VOCs) in the paint, which is what gives it its smell. The major companies are making low - VOC paints that cost more but can be tinted every colour and don't have any odour.
OFFICE - With more and more couples working from home these days, the home office has become a staple - and a black hole for greening. The best place to start? Ditch your fax machine and go paperless. Get an efax number - if you have paper that you need to file, fax it to yourself and store it digitally. Another suggestion? Opt for a more energy-efficient laptop instead of a desktop.
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With Good Landscaping, Money Can Grow on Trees
With most things in life, first impressions are crucial, and the garden is the first impression of a home that a potential purchaser sees when they get out of the car. Cosmetic changes can be made for minimal dollars, yet these changes can help to generate a sale or can add dollars to the sale price.
If you've already purchased a home with a well-maintained garden, don't stop there! Planting trees not only adds value, it can also save energy. It can lead to lower monthly heating and air conditioning bills, while giving you pleasure for years to come.
Deciduous trees (i.e. trees that lose their leaves in the fall) when planted on the south and west sides of your homes will grow to be an energy-reducing feature - and therefore, it's a cost saving feature too. The shade produced by deciduous trees during hot summer months reduces the burden placed on cooling equipment such as fans, heat pumps and air conditioners.
Tall evergreens planted on the north side of your home will perform the same energy-saving function in the winter. They can block those northerly winter winds. This in turn reduces the work your furnace will have to do to maintain a reasonable level of warmth in your home.
Remember, energy - like money - doesn't grow on trees. But trees can be an energy and money saving device for your home both now and when you come to resell. Homebuyers frequently ask about a home's monthly heating and utility expenses before they make an offer to purchase.
So whether you're planning to sell your home in the near future, or not for some time, keep the money saving features of landscaping in mind, and go green!
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Carol's Kitchen
Double Chocolate Dip
3 oz. White or Dark Chocolate, melted
8 oz. Cool Whip-1 sm. Container
8 oz. Softened Cream Cheese
¼ Cup Thick Chocolate Syrup
Microwave chocolate and ½ of the Cool Whip, uncovered, on High for 1 minute. Stir after each 20 second interval until melted and smooth.
Whip cream cheese with chocolate mixture, mixing until smooth. Fold in remaining whipped topping.
Place half the dip into a small serving dish; drizzle with chocolate syrup forming an even layer. Cover syrup with remaining dip. Decorate with additional syrup drizzled on top.
Serve at room temperature with fresh seasonal fruit.
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For more information please contact
Carol Dorn - The Mortgage Mama
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Your inside advantage for Minimizing costs and Maximizing value in your home.
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Minimizing Strategies:
Minimizing your personal debt
 Determine if you're in the red or black
Minimizing debt means getting to know yourself better, financially. The first thing you want to do is find your net worth. Knowing your net worth is a valuable tool for monitoring your financial progress from year to year, and ensures you're headed in the right direction. Calculating net worth is simple:
1) In one column list your assets including home equity, cars, valuables, bank accounts and retirement savings.
2) In another column list all of your liabilities including mortgage, car loans, credit card and all other debt.
3) Next, total the two columns and subtract your liabilities from your assets.
You now know your net worth. Regardless of the amount, or even it it's a negative number, you have a starting point. This process can be a powerful motivator for reducing debt - a personal budget is a great way to help you achieve your goals.
Know where your money goes
Surprisingly, many people never develop a budget. A budget is an essential part of managing your finances.
To see how important it is, take the first step. Carry a journal and pen with you at all times for one month to record your expenses. Methodically track everything, no cheating.
Seeing your expenses laid out before you provides you with a thorough understanding of how your cash flows in and out of your pocket. You'll also discover some bad habits you didn't know you had - and get on the road to changing them for the better.
Maximizing Strategies
Maximizing the benefits of credit
Credit Cards Used Wisely
A credit card can by your ally when it's managed correctly. It can help build a positive credit score, get you out of a pinch, and even earn you rewards. On the other hand, poorly managed credit can be detrimental to your credit score, and cost you more than you imagined. Keep these tips in mind:
Limit your number of cards. It is easier to keep track of expenses, and reduces the chance of a missed payment.
Transfer credit card debt. It's a good idea to always pay your credit cards in full each month. If you are carrying a balance, a personal line of credit offers a much better rate.
Don't spend what you don't have. Use the convenience of a credit card only knowing the money is in the bank.
Be diligent with payments. Never pay the minimum only. Your original purchase could end up costing you twice as much.
Paying the minimum payment on a $1,800 balance can take 31 years to pay off!
Avoid missed or late payments. You could incur additional fees and a black mark on your credit rating.
SMART CREDIT MANAGEMENT
ENSURES YOUR CASH REMAINS YOUR OWN.
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Understand your credit score
You know from first hand experience that your credit score plays an important role when purchasing a home. But for many, its contents are not entirely understood.
Canada's two major credit-reporting agencies, Equifax and TransUnion, gather a financial history about you that includes information about your credit and bank accounts, public records that reveal bankruptcies or credit-related court judgments, and any debt that went to a collection agency. It may also include a personal statement from you regarding information in your history.
This information is used to generate a score between 300 and 900 which lenders then use to determine whether or not to extend credit to you. The higher your score, the lower your risk.
You should request a credit report from both credit agencies at least once a year to ensure your information is correct. Visit Equifax.ca and TransUnion.ca to learn more.
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Today's Recipe:
Creamy Chocolate Pudding
6 Tbsp Sugar
¼-1/3 Cup Cocoa
¼ Cup Cornstarch
Pinch Salt
1 Can Evaporated Milk (370 ml)
½ Cup Water
1 Tbsp Butter
½ tsp Vanilla
Combine sugar, cocoa, cornstarch and salt in medium saucepan.
Add evaporated milk and water; whisk to blend.
Cook over medium heat, stirring constantly for about 7 minutes or until pudding thickens, DO NOT BOIL.
Remove from heat and stir in butter and vanilla.
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Need more ideas on budgeting, consolidating debt, or saving money on your mortgage interest? Call me today.
Remember, my services are free. I provide the knowledge needed to make wise financial decisions.
Sincerely,
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Carol Dorn, AMP
The Mortgage Mama
Don't Keep Me A Secret - I Love Referrals!
250-808-5521 Toll Free: 1-877-808-5521
#103-1553 Harvey Ave., Kelowna, BC V1Y 6G1
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Regulatory Changes to Mortgages are coming soon!
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Government Regulatory Changes for Mortgages will take effect March 18th. Read how these changes will affect you.
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Amortization
Current Amortization for Insured Mortgages - 35 YEARS
Amortization for Ins. Mortgages - March 18th - 30 YEARS
What does this mean to you?
1. Your payments will increase
2. Your buying power will decrease by approximately 5%
3. You will pay less interest over the life of your mortgage
Example:
35 Year Am:
$400,00 mortgage with 5% down payment
3.99% Interest/5 year Term
Mthly Payment: 1760.85
Balance after 5 year term: 370,742.64
Income Required (no other debts): $79,000
30 Year Am:
$400,00 mortgage with 5% down payment
3.99% Interest/5 year Term
Mthly Payment: 1899.81
Balance after 5 year term: 361,539.68
Income Required (no other debts): $84,500
Maximum mortgage, $79,000 Income after Mar.18th: $369,871
Wanting to purchase in the next four months? Call today and obtain a pre-approval rate hold and a 35 year amortization.
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Refinancing
Current Loan to Value Permited: 90%
Loan to Value - March 18th: 85%
This means whether you are refinancing early to obtain a better rate, consolidate debts, make investments, etc., or your mortgage is ready for renewal, you will only be permitted to mortgage a maximum of 85% of the value of your home. 5% less will be available to you.
Paying too much interest on those credit cards? Call today and save money by refinancing your mortgage and paying off those high interest debts.
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Insured Line of Credits
Line of Credits will no longer be insured after March 18th.
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For more information please contact
Carol Dorn - The Mortgage Mama
Remember, my services are free. I provide the knowledge needed to make wise financial decisions.
Sincerely,
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Carol Dorn, AMP
The Mortgage Mama
Don't Keep Me A Secret - I Love Referrals!
250-808-5521 Toll Free: 1-877-808-5521
#103-1553 Harvey Ave., Kelowna, BC V1Y 6G1
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News from The Mortgage Mama
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Saving money is the first step to financial freedom. Follow the money saving tips listed below and find extra cash in your monthly budget.
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Household Budget Tips
Saving you Money
How much do you spend a week on Coffee? Magazines? Lunch?
Did you know that buying a Starbucks coffee 3 times a week will cost you $546.00 a year?
Buying your lunch 4 times a week could cost you $2030 a year?
Getting take out once a week can cost you $1330 a year?
Eliminating these costs for 1 year could pay for almost half of your down payment on a $200,000 purchase!
Grocery Tip:
A good grocery saving tip is to shop on Mondays-prices are lower on average. Always check in the bargain cart for deep discounts. Shop at stores that always have low costs. In the produce and bakery aisles, check for reduced fruit and baked goods. Always make a list up before going shopping! Never shop when hungry. Coupons are another great way to save on groceries. Of course, there are also
coupons for other merchandise and cleaning items too.
Review Banking Fees with your bank:
You may not realize that you may be spending over $30.00 a month just in fees on your chequing account. This could pay for your home phone bill. Do you have multiple loans and debts? Consolidating a couple credit cards and a loan can save hundreds a month in interest. The important thing to remember is to stay within your budget after consolidating so credit card debt is no longer an issue.
Consolidating debt into your mortgage can offer a great deal of savings. Call and ask me how.
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Connect Fall Fair
Saturday, Nov. 6th
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| Connect Fall Fair |
The Connect Fall Fair will be held at the Okanagan Regional Library - Ellis St. Branch, Kelowna.
Saturday, Nov. 6th - 11:00 am-2:00 pm
A variety of businesses will be represented for a one-stop shopping experience.
Visit the Mortgage Mama's table and enter your name for a chance to win a gift basket valued at $50.00.
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Today's Recipe:
Classic Ratatouille
Ingredients
· 8-10 tbsp olive oil
· 2 yellow onions, chopped
· 3-4 zucchini, sliced into 1/4-inch thick slices
· 1large eggplant, sliced into 1/4-inch thick chunks
· 5 large tomatoes, chopped
· 1 green bell pepper, seeded and coarsely chopped
· 1red bell pepper, seeded and coarsely chopped
· 2 garlic cloves, minced
· Salt and freshly ground black pepper, to taste
Directions
Heat 5 or 6 tablespoons of the olive oil in a large heavy-bottomed skillet over medium heat, add the onions, and sauté about 1 minute, until fragrant and softened. Add zucchini and eggplant and sauté about 2 minutes, until lightly browned. Add more olive oil as needed if the pan looks dry. Add tomatoes, peppers, and garlic, stirring to combine. Cover, reduce heat to low, and simmer about 20 minutes, until veggies are cooked through. Take off the lid, increase heat to high, and cook for 2 or 3 minutes to evaporate excess liquid, stirring constantly. Season to taste with salt and pepper, and stir well. Serve hot, or allow to cool and add a little olive oil before serving. Serves 6.
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Need more ideas on budgeting, consolidating debt, or saving money on your mortgage interest? Call me today.
Remember, my services are free. I provide the knowledge needed to make wise financial decisions.
Sincerely,
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Carol Dorn, AMP
The Mortgage Mama
Don't Keep Me A Secret - I Love Referrals!
250-808-5521 Toll Free: 1-877-808-5521
#103-1553 Harvey Ave., Kelowna, BC V1Y 6G1
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The economic slowdown is more evident with each passing month and the Bank of Canada looks to acknowledge it by holding its policy rate at 1.00% ruling out a fourth consecutive rate increase.
The economic slowdown lasts into 2011 and once better growth prospects emerge, the Bank resumes its rate normalization process. A rising but low interest rate environment in the next two years is foreseen with considerable swings in bond yields reflecting uncertainty and economic growth variability.
Click here to download the whole article
 Interest_Rate_Forecast_September_2010.pdf |
Jeremy Torobin Globe and Mail
Mark Carney is taking a cautious approach to raising interest rates, weighing Canada’s powerful
economic rebound against the uncertainty of an “increasingly uneven” recovery across the globe.
The Bank of Canada Governor became the first central banker in the Group of Seven to raise
borrowing costs since the financial crisis and recession, increasing the benchmark overnight rate
Tuesday by one-quarter of a percentage point to a still exceptionally low 0.5 per cent.
Policy makers will keep an eye on Europe’s troubles, and won’t move more aggressively than they see
fit, the Bank of Canada suggested, even though the economy is rebounding rapidly and inflation will
likely exceed its 2-per-cent target this year. Much like in 2008 when the U.S. financial crisis pulled
Canada into recession, the country’s economic health depends in large part on policy makers in other
countries successfully containing homemade problems.
“Interest rates are incredibly low, given the strength of the domestic economy, but the global story is
where it’s at right now,” Eric Lascelles, chief economic strategist at TD Securities in Toronto, said in an
interview. “The level of uncertainty suggests there’s not a lot of confidence in the forecasts.’’ The
open-ended nature of the announcement sparked a fall in the Canadian dollar and yields on two-year
government bonds as investors pulled back their bets on what they had expected might be a series of
uninterrupted rate hikes going forward. |
The Honourable Jim Flaherty, Minister of Finance, today announced a number of
measured steps to support the long-term stability of Canada's housing market and
continue to encourage home ownership for Canadians.
"Canada's housing market is healthy, stable and supported by our country's solid
economic fundamentals," said Minister Flaherty. "However, a key lesson of the global
financial crisis is that early policy action can help prevent negative trends from
developing."
The Government will therefore adjust the rules for government-backed insured mortgages
as follows:
- Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
- Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
- Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive,
prudent and cautious steps today to help prevent one. Our Government is acting to
help prevent Canadian households from getting overextended, and acting to help
prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders
aren't willing to act themselves, we will act. These measures demonstrate the
Government is committed to taking action when necessary to support the longterm
stability of a sector that is so vital to our economy and the financial wellbeing
of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to
come into force on April 19, 2010.
Backgrounder
Canada's Housing Market Remains Strong
Canada's housing market remains healthy and stable. According to the
International Monetary Fund, our housing market is fully supported by sound
economic factors, such as low interest rates, rising incomes and a growing
population. Moreover, mortgage arrears—overdue mortgage payments—have also
remained low.
Today's announcement is part of the Government's policy of proactively adjusting
to developments in the housing market that could take root and cause instability.
These steps are timely, targeted and measured, and will reinforce the importance
of Canadians borrowing responsibly and using home ownership as a savings
mechanism.
Mortgage Insurance
Mortgage insurance (which is sometimes called mortgage default insurance) is a
credit risk management tool that protects lenders from losses on mortgage loans.
If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the
property are insufficient to cover the resulting loss, the lender submits a claim to
the mortgage insurer to recover its losses.
The law requires federally regulated lenders to obtain mortgage insurance on
loans in which the homebuyer has made a down payment of less than 20 per cent
of the purchase price (also called high loan-to-value ratio loans). The homebuyer
pays the premium for this insurance, which protects the lender if the homebuyer
defaults.
The Government ultimately backs most insured mortgages in Canada. It is
responsible for the obligations of Canada Mortgage and Housing Corporation
(CMHC) as it is an agent Crown corporation. In order for private mortgage
insurers to compete with CMHC, the Government backs private mortgage
insurers' obligations to lenders, subject to a deductible equal to 10 per cent of the
original principal amount of the loan.
In October 2008, the Government adjusted its minimum standards for
government-backed, high-ratio mortgages, including:
- Fixing the maximum amortization period for new government-backedmortgages to 35 years.
- Requiring a minimum down payment of five per cent for newgovernment-backed mortgages.
- Establishing a consistent minimum credit score requirement.
- Requiring the lender to make a reasonable effort to verify that theborrower can afford the loan payment.
- Introducing new loan documentation standards to ensure that there isevidence of reasonableness of property value and of the borrower'ssources and level of income.
Measures Announced Today
Today, the Government announced three changes to the standards governing
government-backed mortgages.
Qualifying at a Five-Year Rate
Current interest rates are at record low levels, which has improved the
affordability of housing for Canadians. It is important that Canadians borrow
prudently and are able to manage their debt loads when interest rates rise.
Lender and mortgage insurers look at two key ratios when assessing the ability of
a borrower to make payments on a mortgage loan:
- Gross Debt Service (GDS) ratio—the ratio of the carrying costs of thehome, including the mortgage payment, taxes and heating costs, to theborrower's income.
- Total Debt Service (TDS) ratio—the ratio of the carrying costs of thehome and all other debt payments to the borrower's total income.Currently, the interest rate used to determine the mortgage payment for these calculationsis either the rate fixed for the term of the mortgage or, in the case of a variable-ratemortgage and mortgages with terms of less than three years, the greater of the contractrate and the prevailing three-year fixed rate.
The adjustments to the mortgage framework will require mortgage insurers to ensure that
borrowers qualify for their mortgage amount using the greater of the contract rate or the
interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS
ratios.
This measure is intended to protect Canadians by providing them with additional
flexibility to support mortgage payments at higher interest rates in the future.
Limit the Maximum Refinancing Amount to 90 per cent of the Loan-to-
Value Ratio
Borrowers seeking financial flexibility can currently refinance their mortgage and
increase the amount they are borrowing on the security of their home up to a limit of 95
per cent of the value of the property. This type of refinancing lowers the borrower's
equity in their home. The adjustments today will lower the maximum amount of the
mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90
per cent of the value of the property, consistent with the principle that home ownership is
a tool for savings.
Discouraging Speculation by Requiring a Minimum Down Payment of 20
per cent for non-owner-occupied properties
This measure will require a minimum down payment of 20 per cent for governmentbacked
mortgage insurance on non-owner-occupied properties purchased for speculation.
Currently, borrowers may purchase a residential property with a 5 per cent down
payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-
unit) non-owner-occupied residential rental properties. Borrowers purchasing owneroccupied
residential properties which also include some rental units (e.g., borrowers
purchasing a duplex to live in one unit and rent out the other) will still be able to access
government-backed mortgage insurance with a 5 per cent down payment.
Moving to the New Framework
These adjustments to the mortgage insurance guarantee framework are intended to come
into force on April 19, 2010. Exceptions would be allowed after April 19 where they are
needed to satisfy a binding purchase and sale, financing, or refinancing agreement
entered into before April 19, 2010. |
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