In This Issue

Free Closing Costs on CHIP Reverse Mortgages

Win $1,000 towards your mortgage payment

Thinking of Buying a Home? Start Saving Now!

Keep up to date on:

• Economic news important to your mortgage
• Get a heads up when interest rates are changing
• Current interest rates 

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Are you thinking of
buying a home?

We have a wonderful guide available that is full of worksheets and checklists to help lead you through the entire homebuying process in five simple steps.

Come in to our office today to receive your FREE copy.

Free Closing Costs on CHIP Reverse Mortgages

For the first time ever, Canada's reverse mortgage provider (CHIPS) is waiving borrower's closing costs.

This is a limited time promotion that saves seniors $1,495 on legal, closing and administrative fees.

The promo applies to 3 and 5 year terms only. Borrowers must apply by November 30 and close by December 31.

It's good to see CHIP cutting seniors some slack on borrowing costs. The company has monopoly pricing power and its rates haven't dropped much since way back in 2009, despite more favourable funding costs. (In November 2009, CHIP cut rates bigtime after receiving its bank status)

CHIP is a product of HomEquity Bank.

If you are interested in a CHIP Home Income Plan mortgage, please feel free to give our office a call.

Thinking of Buying a Home? Start Saving Now!

If you are thinking of buying a home, one of the first considerations is how much you need to save for a down payment. This is determined by the cost of your desired home. Once you know the approximate price for your potential home, then factor in a percentage as a down payment.

A down payment is a partial payment on the home made at the time of purchase; the rest is paid for through a mortgage loan. The higher the initial down payment, the more you can lower your monthly mortgage costs. In Canada the minimum down payment is 5 percent; if you are putting down less than 20 percent of the total you will need mortgage default insurance. This provides the lender with the flexibility to offer you the same competative interest rates available to homebuyers with a larger down payment. It's insurance, which guarantees the mortgage by protecting the lender should you be unable to continue your mortgage payments for some unforeseen reason.

Consider these easy tips to help you with the saving process:

- Set up a special account for your down payment
- Make regular deposits into the account through automatic transfers
- Cut out extra expenses
- Use your RRSP's; the Canadian government's Home Buyers Plan allows you to withdraw up to $25,000 from your RRSP without penalty. You then have 15 years to repay the funds to the RRSP

Once you've implemented a few of these suggestions, you'll find it won't take long until you are ready to begin searching for your dream home.