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Are you a mortgage penalty Red Wretch?

Pay Out Penalties Explained, if you were paying out on Nov 17, 2014. Making the right lender choice for a possible need/want to sell of your home before the mortgage comes due could have a big difference in payouts. This example shows Prior Discount compared to Best Rate. There is over $4,000 penalty difference. If your mortgage contract remaining fixed rate term is less than five years, and allows for: 1. No "port", just pay the penalty; or, 2. Only a "port" rate of only the remaining balance to save a penalty (keep remaining term and remaining balance); or, 3.

25 year amortization: savings or trap?

There is a lot of discussion in Canada about the amount of consumer debt; and, if mortgage amortizations need to be reduced to 25 years compared to the 30 year amortization that is now also offered.

First:  a lower rate and a lower amortization saves you money.  No ifs, ands, or buts!

The remaining question is this:

If you are taking the 25 year amortization because you can afford the payments today, and it will save you money: how high does the rates have to increase before you feel trapped by the decision to take a 25 year amortization?

Each answe

Making a Profit with Grow Op property

I want to thank Russ Mendonca from Calvert Home Mortgage, a private mortgage company out of Calgary.   Calvert Home Mortgage serves Alberta for providing financing opportunities that help consumers and those seeking a business opportunity.  They specialize in short term financing to acheive a goal of a near future sale or refinance with a more conventional mortgage provider.

Each Grow Op is a unique opportunity and will take some planning.

Critical Illness and Disability Insurance gamble

CTV News Calgary on February 14, 2011 had a heart-breaking segment about an indvidual thinking they had mortgage payment coverage in case of sickness.  She is left with only her job's long term disability pay.  Most people will not have enough money to keep their mortgage and property tax payments up-to-date on long term disability pay. 

How did that happen?   Critical Illness does not cover all sickness and only for very limited disabling causes.  So, why did she take Critical Illness, and not Disability....

Real Mean Rent Hog Ride- response to Garth Turner Feb 8 blog

The real short story to the video is Garth Turner compares the cash that could be put into buying a house to some investment that will provide liquidity, security, and an 8% annual return.  

Since Garth did not give a specifica recommendation, nor a general asset class to consider, I had to look at his February 8 blog to make a guess of what he would recommend.

There seemed to be some subliminal messaging with his "Harley-riding outlaw's grizzled comprehension" that he was recommending Harley as an investment.

Harley's hard asset and security reality is sca

Economic Forecasts could fry your mind

Garth Turner and Dean Baker of the Wastington based Centre for Economic and Policy Research both have said that residential real estate values are ready to plunge by 25%.  The Bank of Canada Governor Mark Carney has cautioned that mortgage debt at the current low interest rates are not sustainable.

So, what can you do about that?   Well, economists can create some exciting headlines with selective data, so I am rather glad they are not our weather forecasters.  Sometimes data can be manipulated to present a shocker of a news story.

How?  Take the wea

Mortgage rule changes: an opportunity for home owners and renovators

Are you one of the many homeowners who did not take advantage of the Federal government home renovation tax credit that expired Feb 1, 2010?

This stimulus program allowed certain home improvements valued from $1,000 to $10,000 to have a tax credit.  For the renovation industry, there was a surge of business during this period.   It also caused an artificial boost of activity, which lead to lower business volume following the expiry of the tax credit.

The recent default insurance rule change, taking effect March 18, 2011, regarding the maximum equity

Is the 35 year amortization a Bait and Switch scheme for many?

There is a certain amount of marketing and buyer psychology taking affect with recent mortgage default insurance rule changes.   One of those rule changes is the 35 year amortization is gone.  The maximum amortization is now 30 years.

When something is being taken away, or if it is seen as a "last chance to buy"- for some there is a compulsive need to have a rarity.

Before you jump into a 35 year amortization because it is GOING SOON!.......consider how you intend on making those mortgage payments.

Is this really your last chance to buy? &nbs

Getting more in Debt to reduce debt?

Effective March 18, 2011, Canadian default insured mortgages have three changes:  no more Home Equity Line of Credit default insured mortgages; maximum amortization is reduced from 35 years to 30 years...but the last has me puzzled.

Minister Flaherty, the Federal Minister of Finance, has said that Canadians are using their homes as Automated Teller Machines to withdraw money for useless consumer spending such as flat screen TV's and vacactions.  He is putting a stop to that.

Phil McDowell is also a licenced Mortgage Broker in BC

The above link goes to the BC directory of licenced mortgage brokers registered with the Financial Institutions Commission in British Columbia.

I have a number of inquries from people who live in Alberta who wanted financing of recreational and investment property in BC.  Others have planned to relocate to BC.

Doing business with an individual who is licenced in both provinces provides the additional comfort of knowing that regardless of how a r

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