What's New With CHIP?

 

 

What is a CHIP Mortgage? CHIP Home Income Plan?

Through the CHIP Home Income Plan, homeowners 55+ can access up to 50% of the current appraised value of their principal residence. The exact amount available will depend on the age of the homeowner and his or her spouse as well as the location and type of home.

The funds are tax-free and there are no restrictions on how they can be used – with the exception that any outstanding loans secured by the home must be paid off. You might use the money to invest, to renovate your home, or simply to improve your lifestyle.

Homeowners can choose to take a lump sum or to receive payments over time. No regular repayments are required; the loan does not become due until the home is sold or both homeowners move out. Interest is added on to the original amount borrowed. When the amount is repaid, all remaining equity in the home belongs to the homeowners (or their estate).

You continue to own your home. There is no change in title. You also remain responsible for property taxes, home insurance, and all your regular household bills and home maintenance.

What's New With CHIP?

We have reduced our legal, closing & admin costs – to $0 where a client initially chooses a 5 year interest term; and to $795 where a client chooses an initial 3 year interest term.

How Does The CHIP Advances Get Paid Out

Just a reminder that CHIP clients have a number of different options for receiving their CHIP advances:

(1) can take the full amount approved all in one lump sum, or

(2) can take an initial lump sum ($20,000 minimum) and take the rest later (optional). They can take the rest in two ways: (a) in lump sum draws of at least $10,000 each time, and/or (b) as monthly draws of $500 and up (ie. like an income), or

(3) right from the start, they can take their full CHIP in fixed monthly/quarterly draws of at least $1,000

CHIP advances are not regarded as income for income tax purposes. So, they don’t affect any government benefits customers may be receiving.

These options # 2 & 3 might work well for those who are not comfortable with the risk involved in investing money for income; but would like to have extra monthly income. For example, clients who would like to be able to afford some in-home care so they can stay in their homes longer.

Want more information? Call or email
1.250.650.4182
akroemer@mortgagegroup.com

Will Your Mortgage Retire With You?

 

 

 

This Scotia Bank Poll Found out that 1/3 of Canadians believe they will still have their mortgage once they retire.
That will be a huge portion of their retirement income spent on a mortgage.
Read poll below:

Snapshot: Canadian mindset on mortgages

Some Canadians with mortgages think they might carry them into retirement

TORONTO, Nov. 5, 2012 /CNW/ - According to a recent Scotia bank poll, the role of the Canadian home is key, with the majority of Canadians (77 per cent) indicating their home is an investment rather than an expense. The investment may extend beyond retirement for some; among those mortgage holders not yet retired, one-third (32 per cent) say they will likely still have their mortgage when they retire. That said, Canadians are eager to leave their mortgages behind, with almost three-quarters (72 per cent) of Canadian mortgage holders taking at least one step to becoming mortgage-free faster. When it comes to mortgage-mindset - Canadians are thinking in the right direction:

• Two-thirds (69 per cent) of Canadians report owning a home. For Canadian home owners, 40 per cent are living mortgage-free.
• The majority (81 per cent) of Canadians agree it is important to become mortgage-free as soon as possible.
• The most common step Canadians are taking to pay off their mortgage faster is to increase the frequency of their regular payments (29 per cent).
• One-third of Canadians (34 per cent) say they will be relying on their home equity to support them in retirement.

HOW TO PAY OFF MORTGAGE FASTER

--- The easiest way is to make accelerated biweekly payments-- there is only a few dollars difference but it will make a difference in years.
This Chart shows you how much you can save
Example: monthly vs. accelerated biweeklyJohn is trying to decide between paying his mortgage monthly and paying accelerated biweekly.
Details

• mortgage principal: $150,000
• amortization: 25 years
• interest rate: 5.45% for the entire mortgage amortization period.

Monthly and Accelerated Biweekly Payment Comparison

	Monthly	Accelerated biweekly
Number of payments per year	12	26 (52 weeks a year ÷ 2)
Payment	$911	$456
Total payments per year (principal and interest)	$10,932	$11,856
Principal paid over the amortization period	$150,000	$150,000
Interest paid over the amortization period	$123,368	$102,113
Interest saved	-	$21,255
Number of years to repay the mortgage	25.0	21.3
Years saved	-	3.7

With the accelerated biweekly payments, John will pay off his mortgage 3.7 years faster and save more than $21,000 in interest.

---Make Use of Your Prepayment Options: Monthly and or yearly
Mortgage prepayment options outline the flexibility you have to increase your monthly or lump sum yearly mortgage payments without penalty. The monthly prepayment provision is a percentage increase allowance on your original monthly mortgage payment, while the lump sum provision allows you to put money towards your mortgage principal. According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), 28% of Canadians took advantage of prepayment privileges in 2010.
Many lenders have 15/15 or 20/20 prepayment allowances usually on the original amount of the mortgage and they will accept as little as $100.00 per each prepayment. So you do not have to save a lot to take advantage of the prepayment programs.

----Keep Tabs of Current Interest Rates
Sometimes even with a penalty it makes sense to break your mortgage and go with a lower rate.

By setting some more money aside for extra mortgage payments, it can shave years off of your mortgage, and will let you retire without a mortgage payment, a winning combination.

Time for a mortgage Checkup?
Call me and I will check your mortgage and let you know what you can do to shorten your mortgage thereby saving you money and years off your mortgage.
This is a free service.

 

 

 

 

 

 

 

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

 

Do credit settlement agencies really deliver?

Global News investigation re debt settlement firms

Global TV 's "16 x 9" show ran an investigative story regarding how "debt settlement" firms are misleading Canadians coast to coast. Creditors do NOT have to work with these firms who are taking fees from consumers with no guarantees. Only Alberta and Manitoba currently regulate the firms following a ban on upfront fees for debt settlement firms by the FTC in the US in 2010 .

Bad Debt: Do credit settlement agencies really deliver?

You’ve heard the commercials before – credit settlement agencies promising big reductions in the debt you owe. But do they deliver? 16x9 investigates a controversial industry and speaks to two men who say they never got what was promised.

 

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Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com       click to go website

Mortgage Calculators

Want some mortgage calculators you can play around with?

Payment calculator-- how much will my payment be?

Affordability---          how much can I afford?

Rent vs Buying----     should you rent or buy?

Amortization schedule--- what are the interest and principal payments month by month?

Bi-weekly vs monthly payments--what would you save by changing to bi-weekly payments?

Early Renewal Calculator----should you be renewing your mortgage earlier at a lower rate?

Mortgage qualifier-----how much income do I need to afford this house?


Here are some calculators you can play around with.
If you have any questions give me a call or email me.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

click here
website

Know The Sources of CO in Your Home

Carbon monoxide has taken the lives of entire families, left scores of people with debilitating physical and mental handicaps, and, sent hundreds more to hospital. So why do so few of us have the one inexpensive safety device in our homes that protects us from this deadly gas?

Carbon monoxide safety comes down to awareness and education. First realize the danger is very real. Second, you need to know the potential sources of CO in your home. Many people think they don’t need a carbon monoxide alarm because they have electric baseboard heaters. But they may have a gas water heater or stove, a gas or wood fireplace, or a garage or carport attached to their house. All these are potential sources of CO.

So long as carbon monoxide is vented outside, there is no danger. But if appliances or heating systems are not properly maintained, or chimneys and vents become blocked or cracked, deadly CO can seep back into your home…and you won’t even know it.

And since exposure to CO mimics the flu, many people make the mistake of thinking the symptoms they are experiencing will just “go away” in time. So they stay home from work or school hoping to get better, when exactly the opposite happens.

Installing protection is easy and inexpensive. You can find CSA-approved carbon monoxide alarms in any hardware store that cost on average about two cents a day to operate over their lifespan.
Installing one CO alarm per floor is recommended by the National Fire Protection Association but, at a minimum, install one outside all sleeping areas. Canadians seem to prefer models that feature a continuous digital readout.

A digital readout shows you any level of CO in your home so you can take action before the gas reaches dangerous levels. Look for models where the display is continuous, not models where you need to physically push a button to get a reading. That way you get instant peace of mind every time you glance at the alarm and see its zero reading.

What are some common sources of carbon monoxide in the home or workshop?

Most carbon monoxide produced in homes comes from combustion of fuel for heating and cooking.
 CO may accumulate in the home when a blocked chimney, broken chimney flue, or damaged furnace heat exchanger allows gases to enter the home. It can also enter the home from the garage when an automobile, lawn mower, or other engine is in operation. Backdrafting chimneys and flues (common when ventilation fans are used in tightly sealed homes) may allow combustion gases, including carbon monoxide, to enter the home.
Gas stoves and ranges can produce CO, which can present problems if the appliances are used for prolonged periods or if they are not operated properly. Gas ranges are not intended to be used to heat the home. Some other common sources of carbon monoxide include unvented fuel burning space heaters and indoor use of charcoal for heating or cooking. (Note: charcoal should NEVER be burned indoors.)
Never run a generator in the home.

Posted on September 1, 2012 in Safety Updates

more blog info

My Favorite Turkey Recipe- Brine Turkey

For years I cooked my turkey just like MOM did, but was never very happy about they way it turned out. It was just a turkey.
I know this may be a fad for alittle while, just like the deep fryer turkey (which I never did), but I have to say, I will never cook a turkey any other way.


This is not my recipe, My family raves about the brined turkey because it gets flavored all throughout and stays moist. Even if you over cook it.


Ingredients Recipe courtesy Alton Brown, also featured in Food Network Magazine

• 1 (14 to 16 pound) frozen young turkey

For the brine:

• 1 cup kosher salt
• 1/2 cup light brown sugar
• 1 gallon vegetable stock
• 1 tablespoon black peppercorns
• 1 1/2 teaspoons allspice berries
• 1 1/2 teaspoons chopped candied ginger
• 1 gallon heavily iced water

For the aromatics:

• 1 red apple, sliced
• 1/2 onion, sliced
• 1 cinnamon stick
• 1 cup water
• 4 sprigs rosemary
• 6 leaves sage
• Canola oil

Directions

2 to 3 days before roasting:
Begin thawing the turkey in the refrigerator or in a cooler kept at 38 degrees F.
Combine the vegetable stock, salt, brown sugar, peppercorns, allspice berries, and candied ginger in a large stockpot over medium-high heat. Stir occasionally to dissolve solids and bring to a boil. Then remove the brine from the heat, cool to room temperature, and refrigerate.
Early on the day or the night before you'd like to eat:
Combine the brine, water and ice in the 5-gallon bucket. Place the thawed turkey (with innards removed) breast side down in brine. If necessary, weigh down the bird to ensure it is fully immersed, cover, and refrigerate or set in cool area for 8 to 16 hours, turning the bird once half way through brining.
Preheat the oven to 500 degrees F. Remove the bird from brine and rinse inside and out with cold water. Discard the brine.
Place the bird on roasting rack inside a half sheet pan and pat dry with paper towels.
Combine the apple, onion, cinnamon stick, and 1 cup of water in a microwave safe dish and microwave on high for 5 minutes. Add steeped aromatics to the turkey's cavity along with the rosemary and sage. Tuck the wings underneath the bird and coat the skin liberally with canola oil.
Roast the turkey on lowest level of the oven at 500 degrees F for 30 minutes. Insert a probe thermometer into thickest part of the breast and reduce the oven temperature to 350 degrees F. Set the thermometer alarm (if available) to 161 degrees F. A 14 to 16 pound bird should require a total of 2 to 2 1/2 hours of roasting. Let the turkey rest, loosely covered with foil or a large mixing bowl for 15 minutes before carving.

You can change the brine as long as you keep the salt and the vegetable stock or you can use chicken stock. I use a package of fresh poultry seasonings instead of the ginger and the rest of the spices.
For the aromatics I use the package of fresh poultry seasonings found in the fresh veggie isles.

If you try it , I hope you and your family enjoy it as much as my family does.
Note: I cook my stuffing in a seperate container and not in the turkey

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

Real Estate Investment Canada Or the US

While economic turmoil has flooded worldwide markets, Canada has become an economic safe haven. International money has been parked for safety and ROI, and has fundamentally became a haven to provide the world what it needs for at least the next couple of decades.

Though Canadians have been programmed to look elsewhere for opportunity, 2011-2020 will be the exact wrong time to be doing so. In fact, Canada is in its first year of what will prove to be Canada’s economic decade, and the best time in history to invest here.

Unfortunately, due to a misguided belief that cheap is good when investing in real estate, many Canadian investors have turned their prospects south of the boarder to the US as real estate prices continue to plummet.

Canadian media has been flooded with the tales of investors chasing the cheap price of US real estate, as well as their deals and steals. However, what these investors failed to consider were the metrics involved in analyzing a market’s potential, such as currency risk, taxation, unemployment rate, vacancy rates, property supply and demand, and have taken the ‘buy cheap’ risk anyways despite the reality.

Moreover, replacement costs mean nothing if demand is non-existent, however it is a wonderful tool to use when selling properties. Investors searching for long-term sustainable wealth also need long-term sustainable economic fundamentals. An economy that shows a downward progression will eventually spillover to the real estate market as well, therefore creating a high-risk real estate market.

GDP growth leads to job growth, with attracts migrations, leading to population growth and increased rental demand. This demand drives rental prices up, pushes people to buy properties, and eventually leads to property price increases.

This is exactly the situation in Canada right now, creating jobs by becoming the world’s safest supplier of four key commodities entering the supply and demand super-cycles – food, fuel, fertilizer and forestry).

Among some of the best Canadian cities to invest in real estate are in Alberta were more jobs are projected to be created in a month than the total jobs created in US over the next 10 years.

Source: Don Campbell – Canadian Real Estate Wealth