Ben's thoughts on a Retirement Plan for a low-rate world.

Since 2007 I have been a licensed Real Estate Salesperson, and since 2008, I have also been a Real Estate Investor.  More or less from the start of my career in the Real Estate business, I have seen a low rate environment. 

The persistent low rates have caused prices to remain stable, or increase in several markets, despite a tumultuous economic background.  The have allowed homeowners to refinance and take advantage of lower payments or shorter amortizations, and in some cases may have saved homeowners from default (perhaps after a job loss, or layoff). 

If you have read the news at all in the past two years, you've likely seen repeated messages from Mark Carney at the Bank of Canada, warning Canadians to stop gorging on cheap credit, as many Canadians may be leaving themselves vulnerable to shocks when rates inevitably move upwards.  At the same time, you're seeing messaging from Banks and Investment firms claiming that the current crop of Baby Boomers is about to begin retiring (The first of the BB's turns 65 in 2012....  Yikes), and that many of them are entering their retirement years without sufficient savings to live the type of lifestyle they have grown accustomed to in their working years.  In addition, we're now entering into an era of fiscal austerity in Canada, and especially Ontario.  With government programs such as Old Age Security and Canada Pension Plan in a state of constant revision, can you really afford to be complacent with your retirement plans?  The banks and the investment firms all say "Save your money," or "Top up your RRSP" or "Open a TFSA" etc. etc. etc.  But in a low rate, stagnant growth, high risk monetary environment, who feels confident socking 10% of their income away in an RRSP? You could always invest in GIC's, but the paltry 1- 1.5% growth offered in these guaranteed investments will result in a net loss, as we see inflation surging forward at over 2%.  Are you counting on a Pension?  I wouldn't.  Who knows what might happen to that pension you've socked your money into for 20 + years?  Many examples exist TODAY of Pension mismanagement. 

And here's my point.  If you are worried about the risk exposure or lack of growth in your RRSP portfolio, mismanagement of your pension, or cuts to government social assistance for retirees, and you want to explore a different avenue for investment, TAKE CHARGE of your retirement plan.  Look towards Investment Real Estate as a supplementary income for your retirement years.  USE MY EXPERIENCE and THE CURRENT MARKET SITUATION TO YOUR BENEFIT. 


So, why aren't you using today's low rate environment to your advantage?  Leveraging the bank's cheap money and the practical value of real estate to improve your equity position and ultimately build a solid retirement income level is a great plan to supplement your existing RRSP plans, company pension, and government assistance. 

It's too much work, Right?  Wrong.  Managing income properties isn't overly difficult.  As with any investment strategy, there ARE some risks involved in it, obviously, however increasing numbers of young adults are more interested in risk that they can understand and control, rather than risk exposure at the hands of some bureaucrats in the European Union, or the United States Senate.  With my experience, we can get you on a plan to minimize your risk exposure and start building the portfolio that will earn you the income level you desire in your retirement years.  This takes time though, so we should start NOW!!!

Banks are now fighting for your mortgage money, with 5 year fixed rate mortgages at 2.99% as of March 7, 2012, and 10 year fixed rates at 3.99%.  Crazy!  Seize this opportunity. 

Come talk to me today, and I'll show you my Real Estate Investment portfolio, and get you started on the path to passive income in retirement. 







Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca RE/MAX a-b Realty Ltd., Brokerage. www.a-brealty.com

I am excited about Re/Max Curbside Marketing

For almost a year now (I keep telling you we're ahead of the curve), the office of RE/MAX a-b Realty ltd and its agents have been working with Quick Response Codes.  Many of us have implemented these codes into our marketing program, using them on our business cards for profile/contact information, or inserting them into feature sheets or onto lawn signs for quick access to information.



With the launch of Curbside Marketing, RE/MAX has made it absolutely simple to implement an advanced information system as a key part of marketing your listings.

For my listing clients, I am now including a custom sign rider (I'm sure you've seen these before) that doesn't simply have a URL on it (www.whateveraddress.com) as it has in the past.  The sign rider will now contain TWO methods of gathering information; the first is a "Short Code" that you may text on your phone (free of charge, of course), and receive INSTANT information on the listing you're sitting in front of! (Photos, description, property description and details, as well as video!).  The second is the trusty QR Code, which, for the more savvy Smartphone users, can be scanned by your phone's camera, and bring up the listing information without keying a single digit/letter into your phone!

Cool eh?


Watch this space for more, as I roll out this amazing service for my selling clients.


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca

Housing Demand Perks Up

*Article courtesy of Heather Degraaf @ Scotiabank
Contact Heather for all your mortgage needs. 519-535-7890

Housing Demand Perks Up

After a seasonally uncharacteristic spring and summer slump, Canadian home sales appear to be stabilizing at a new lower, but more sustainable level. National MLS sales volumes increased 3% m/m in September, building on a similar gain in August. Sales activity is still down almost 20% y/y but the decline is accentuated by las August's record monthly sales pace. Two-thirds of local markets reported higher sales last month.

The moderate pickup in housing demand is being aided by lower borrowing costs. While policy tightening by the Bank of Canada has led to a modest backup in variable mortgage rates, fixed rates have come down across the maturity spectrum in recent months, mirroring the drop in bond yields. We expect interest rates will stay lower for longer, underpinning steady housing demand through the fall, contingent on at least a modest pace of job growth.

With new listings edging up only marginally last month, the new-listings-to-sales ratio edged down to 2.0. Meanwhile, the month's supply of active listings fell for a third consecutive month to 6.6. Both metrics suggest a more balanced national market. Sellers (and builders) in Canada remain highly responsive to underlying market conditions. Unlike in the United States, Canadian foreclosure rates are low and not a significant source of downward price pressure. New construction too is gradually moderating. As would be expected given generally balanced conditions, average prices are essentially flat (+0.2% m/m and -0.2% y/y). Prices were overbid last fall as buyers outnumbered sellers, but have fallen back to more reasonable levels.

While ultra-low interest rates remain highly supportive for the interest-sensitive housing market, moderate economic growth and hiring, debt-leery households and high home prices will keep many buyers on the sidelines for now. Look for a flattish fall national market from a sales and pricing perspective.







Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Woodstock cracks top 100 cities for Growth and Entrepreneurship.

The Canadian Federation of Independent Business has just released a report outlining the top 100 Canadian Cities for Entrepreneurial growth. The report utilizes many different factors to achieve ranking, such as presence, growth, health, and policy environment for small businesses.

Congratulations to Woodstock for cracking the top 100 - #97! Only 4 places behind Toronto, the economic engine of the country!

For more details, check the full report, here.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

How to Hire a home inspector - courtesy CBC news

Here's a great article regarding Home Inspectors posted today on CBC NEWS.


The home inspection business got a big black eye in November 2009 when a British Columbia judge ordered an inspector, Imre Toth, to pay $192,000 in compensation to some homeowners after they sued him for failing to identify major problems.

The issues in the Toth case focused on his failure to note extensive rot in part of the house, using a lowball estimate for repairs and rushing his clients to sign a contract limiting his liability. Toth says he will appeal the decision.

The case caused a buzz right across the country. Homeowners who felt they'd had a faulty home inspection issued a chorus of angry rants about inspectors' incompetence or lack of liability, while the decision sent a chill through the home inspectors.

One thing is clear: The standards for home inspections in Canada are all over the map.

"To be a home inspector you only need a business card and a flashlight," says Bill Sutherland, the president of the Canadian Association of Property and Home Inspectors (CAPHI), an association that is trying to raise the standards of home inspections.

Sutherland, who lives in Kamloops, B.C., says about half of Canada's home inspectors are members of CAPHI. The rest don't belong to any recognized associations.

Still, even hiring a member who belongs to an association is no guarantee of a trouble-free inspection. Imre Toth is a CAPHI member in B.C., the only province that now regulates the profession. Sutherland said the Toth case was unfortunate, adding that even educated and trained inspectors can make a mistake, but he says he believes most accredited inspectors do a good job.

Finding a qualified inspector

Consumers without an extensive knowledge of home construction and maintenance are in a tough position when it comes to hiring an inspector. It's something that's usually done in a hurry, sometimes even after an offer to purchase has been made. Few people have any idea about who they've just hired unless they live in a small community where the inspectors are known.

So how do you find the right one?

• Don't wait until the last minute. Start looking for an inspector as you begin to look for a home.
• Ask around to see if family or friends know an inspector they trust.
• Your real estate agent may make a recommendation. If you trust your agent, get in touch with them.
• Check the internet to find an inspector and see if there is any feedback online about them from happy or unhappy clients.
• Ask the inspectors for their credentials and references. One inspector with 16 years experience and many recognized credentials said no one has ever asked him about his education. The person you're about to hire should be a good communicator. You should ask what they did before they became a home inspector.

Credentials

B.C. has licensed its inspectors since March 2009, which means they must belong to one of three organizations with a recognized level of education and experience and carry liability insurance.

All the other provinces have self-regulating professional bodies that set the standards for home inspectors, and they are also members of CAPHI national. You should look for a Registered Home Inspector (RIH) designation. That means they've passed accredited courses specific to home inspections and defect recognition classes. They've also performed a minimum of 250 paid inspections.

There are a few other building trades organizations, such as the Applied Science Technologists and Technicians (ASTT) which is outside CAPHI but certifies home inspectors.

Another type of accredited inspector is a National Certificate Holder (NCH). They can work in any province, have done 150 paid inspections and have had their work peer reviewed by CAPHI.

You can verify if someone is certified nationally by checking this website.

Standards of Practice

Before hiring an inspector, check out the standards of practice.

It's the guideline for professional home inspections, although many inspectors go beyond its basic requirements. It also forms the basis of a contract you'll be expected to sign which limits the inspector's liability if problems crop up that weren't identified during the inspection.

Before the inspection begins, read the contract carefully and ask questions. And understand what they mean when they say it is a "visual inspection of readily accessible places."

Be sure to attend the inspection. It's your chance to learn something about all the systems that make a house run. The home inspector should provide a written report reviewing every major home system and component within 24 hours of the inspection.

If your inspector finds something that worries you, consider hiring a specialist for a second opinion. Inspectors are generalists and you might need a specialist to look at specific concerns about the wiring, the furnace or that damp basement.

The whole home inspection should take about three or four hours and cost about $350 to $500.

Some critics of the business say that's not enough time to thoroughly inspect such an expensive investment. They suggest paying more and hiring a contractor or even an engineer, but that idea has not yet caught on.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Great opportunity for a first time buyer or upgrading! - MLS 63-437 - 41 Canrobert St, - Move in Ready, only $189,900.

*hint* - click the underlined words for more detail!

This is a great 15 year old raised ranch located in a well established family friendly neighbourhood. It is located very close to parks and has quick and easy access to the major highways.

What more could you ask for? This sturdy, fully finished and move in ready home features a concrete foundation, 3 bedrooms (Master, 3rd Bedroom/Office, Nursery). and a full bathroom on the main floor, as well as main floor laundry, a spacious eat-in kitchen, and separate dining room. Plus a comfortable living room!

In the newly finished basement level you will find inside entry to your single car garage (a rarity in this neighbourhood!), extra storage in the utility room and under the staircase, a spacious full bathroom, rec room, family room, and a bonus room.

Enjoy year round convenience and efficiency thanks to the high efficiency forced air gas furnace with central air conditioning, and no-maintenance exterior of brick and vinyl siding.

Let’s not forget the nice two-tierd deck in your fully fenced back yard. This extremely well decorated home has plenty of space for your growing family, and is ready for quick possession! All appliances included. Be sure to check out the Virtual tour!

For Room Sizes and additional details, check out the Realtor.ca info page

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The United Way Year End Drive

Hello Everyone!

One of the benchmarks of the health of a community is the ability of the United Way to reach its yearly target. In previous years the real estate sector has not been a strong contributor to the yearly campaign. I plan to change that!!

I am personally pledging to donate $50 per closing until the end of the year, and I have asked all of my fellow real estate agents to do the same!

Every mailbox in Woodstock should have, or will shortly receive, a Re/Max a-b branded United Way donation envelope. You can also make a difference. Make a donation today and support this worthy cause! Alternatively you can drop by the United Way office (Springbank Ave - just north of Zehrs), call them with a credit card number (519-539-3851), or call me and I will happily stop by to pick up your donation!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Making Sense of Mortgage Rates in Today's Economy - From Corey Cunningham, Mortgage Specialist RBC

Making sense of mortgage rates in today’s economy

Many prospective homebuyers are wondering what has happened to mortgage rates in 2009, and where they may go from here. RBC Economics Research recently updated its’ outlook, and here is what the group has to report.

Since hitting a low in January of 2009, longer-term interest rates have trended higher with the move accelerating in July. The prospect that the worst is over for the global economy is giving investors the confidence to venture out of low-return fixed income securities and seek higher risk investments. While we expect many bumps on the road to recovery we still see potential for a very modest decrease in long-term rates in the final quarter of this year.

Outlook for the future

Momentum in the global economy appears to be changing. Leading indicators currently point to the end of economic contraction for the industrialized world in the third quarter of 2009. Stimulus from central banks, combined with government fiscal stimulus packages, is expected to support a fledgling recovery that is forecast to build momentum in 2010.

Until this recovery is well underway, no changes to policy rates are likely. The Bank of Canada is expected to maintain the status quo until mid-2010. Once the recovery is well established, central banks will normalize their policy rates, and interest rates are likely to increase.

Fixed vs. variable rate mortgages

One of the biggest decisions homebuyers face is choosing between a fixed or variable rate mortgage. This is not a simple decision, which is why many people are looking for advice to help them decide which mortgage interest type is best for them, based on their personal circumstances. I can help homebuyers and homeowners decide which option best fits their situation and risk tolerance.

Mortgage rates continue to trend at historic lows, despite the fact that fixed rates have edged up recently. In this environment, people who are comfortable without a guaranteed rate are opting for a variable rate mortgage. Such a strategy could result in considerable interest savings.

What homebuyers choose should depend on how they feel about rate fluctuations and their cash flow. For example, a first time homebuyer may want assurance that the rate, payment and repayment schedule will not change, and may be wise to opt for a fixed term. A homebuyer who is not concerned about rate fluctuations may want to take advantage of today’s low variable rates in a bid to save more on mortgage interest over the long term.

Today’s flexible mortgage products let you bridge the gap between these strategies. For example, the RBC Homeline Plan lets homebuyers split their mortgages and enjoy the advantages of both variable and fixed rates within a credit limit of up to 80% of the value of the home. The variable portion offers potential long-term savings, while the fixed rate portion offers rate protection. The dividing line is entirely up to the homeowner.

RBC has many resources available:

· Fixed or variable rate – know your options

· Consider the security of a fixed rate mortgage

· The advantages of a variable rate mortgage



Get more information

RBC publishes free research information. It’s easy to stay informed. Register at www.rbc.com/economics for automatic email delivery of new reports.

Your new home doesn't come with mortgage advice. I do.

Contact me today:
Corey Cunningham
Mobile Mortgage Specialist
RBC Royal Bank
(519) 535-2682
corey.cunningham@rbc.com
http://mortgage.rbc.com/corey.cunningham

The statements and statistics contained herein have been prepared by RBC Economics Research based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness.

® Registered trademarks of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. © 2009 Royal Bank of Canada.

New Listing - 585 Sales Dr

Realtor.ca link - MLS #63-341

This is a gorg­eous, well appointed, open concept home, close to 401/403, in immediate vicinity of the new Woodstock Hospital, close to parks and shopping and with all the amenities desired by the modern family. At only 1 year young, this nearly-new home has only been nicely broken in. With durable finishes such as ceramic and laminate flooring, a large double garage, and main floor laundry, this home is ready for your family, while the beautiful kitchen and open concept living room with dramatic cathedral ceiling will impress your guests. Call today to book your private showing! Immediate possession available. All RSA.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 597 Sales Drive

Realtor.ca link

RealTour.ca Virtual Tour (Derek McGrath's Virtual Tour!)

This gorgeous new quality built 2150 sq ft Bungalow is waiting for you! The gorgeous stone exterior is just a hint of the quality found in this home! Inside you will find an amazing, open concept floor plan with dramatic vaulted ceilings, a large main floor master bedroom with ensuite bath and walk in closet, main floor laundry room, and an exciting loft with its own bathroom and two more bedrooms. Finished with quality materials such as hardwood flooring in the great room and ceramic tiles in the bathrooms and kitchen areas, and painted in tasteful modern colours, not to mention beautiful dark stained oak kitchen cabinets and oak hand railings. Don`t wait for this one to pass you by!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 597 Sales Dr - New Bungalow with Loft! Amazing home!!

MLS # 61-882 (realtor.ca link)

Asking $299,900

This gorgeous new quality built 2150 sq ft Bungalow is waiting for you! The gorgeous stone exterior is just a hint of the quality found in this home! Inside you will find an amazing, open concept floor plan with dramatic vaulted ceilings, a large main floor master bedroom with ensuite bath and walk in closet, main floor laundry room, and an exciting loft with its own bathroom and two more bedrooms. Finished with quality materials such as hardwood flooring in the great room and ceramic tiles in the bathrooms and kitchen areas, and painted in tasteful modern colours, not to mention beautiful dark stained oak kitchen cabinets and oak hand railings. Don`t wait for this one to pass you by!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Haggling over your first mortgage - Courtesy of The Globe and Mail

Reprinted courtesy of Paul Brent and The Globe and Mail

Original Article Here

Special to The Globe and Mail Last updated on Wednesday, Sep. 30, 2009 07:08AM EDT

Building Blocks, a special web series geared towards educating young Canadian families about various personal finance topics, launches today on the globe investor personal finance site. Check out this story on the do’s and don’ts of negotiating your first mortgage, as well as a video where Canada’s banking ombudsman provides tips on what to look for before you sign on that dotted mortgage line. Building Blocks will run online every Wednesday for four months.

You've been to the open houses, explored various neighbourhoods and perhaps even checked out local schools before settling on the home of your dreams. Now it's time to negotiate your first mortgage, a process which done right, could save you tens of thousands of dollars.

Today's low interest rates have made buying that first home easier but it can also breed complacency. Rates will rise eventually so purchasers need to not only find a place they can afford, but ensure that they have negotiated the best mortgage terms possible and educated themselves on the document they are about to sign.

When it comes to mortgages, the first lesson is that not all mortgage lenders are created equal. That become quickly apparent to Naysan and Nahid Hariri, both 28, who are mortgage shopping for a $438,000 home now being built for them in Richmond Hill, Ont. “I found that a couple of institutions were a number of (interest) points higher than others,” he said.

The Hariris also found that the big banks, which tend to have higher posted rates than smaller financial institutions, were reluctant to lower their rates. “My understanding with banks is that if you have services with them, they tend to work out something better for you.” Because first-timers typically have less money parked with a particular institution, they tend not to have the leverage to demand lower rates.

“ Usually they are borrowing a lot more money and there is quite a lot to learn. ”— Lois Volk, mortgage broker

The stakes and the learning curve are higher for first-timers. “Usually they are borrowing a lot more money and there is quite a lot to learn,” said Lois Volk, a 22-year mortgage broker with Invis in Toronto's trendy Beaches neighbourhood. “If they don't know, certainly we go through everything: make sure they are comfortable with the concept, what their payments are going to be, work through a budget if necessary and help them consolidate debt if necessary.”

But before couples even start house shopping, they should meet with their bank to obtain a pre-approval or, at the very least, a rate guarantee, said Martin Beaudry, head of lending underwriting at ING Direct.

Mr. Beaudry said that the difference between the big banks and independent firms is rate transparency. “The big banks start very high with their rates and you need to negotiate the rates down and sometimes they have as much as 1.5 per cent leeway on their posted rates while small institutions like ING Direct will post their lowest rate.”

ING Direct's most popular mortgage term among its customers is its 5-year fixed rate, currently sitting at 3.99 per cent. Five-year, fixed rate mortgages for the big banks range between 5.49 and 5.55 per cent, according to Globe and Mail data. The lowest rate found was 3.94 per cent offered by Meridian Credit Union.

Crunch the numbers

Obtaining a pre-approved mortgage forces new buyers take a long, hard look at not just how much house their bank says they can afford, but how much debt they are willing to shoulder to get into home ownership, combined with whatever else they owe. Be aware that your comfort zone and the lending institution's are not necessarily the same. Banks are in the business of maximizing earnings which could translate into a mortgage which you can afford – on paper at least – but one that leaves little money left over for fun indulgences.

The Hariris, who both work for IBM Canada, decided to determine their debt threshold before sitting down with a financial institution. “The first thing you need to do is figure out your monthly budget,” said Mr. Hariri. “My wife and I sat down for months in advance to see exactly what we can afford, what is comfortable for our lifestyle.”

On their own, they also managed to say the 20 per cent of the purchase price for a down payment so that they don't have to carry the extra expense of mortgage insurance from Canada Mortgage and Housing Corporation (CMHC).

Financial institutions say that mortgage borrowers should devote no more than 30 to 32 per cent of their combined gross incomes to mortgage payments, property taxes and heat. “CMHC will also allow you to go up to 40 per cent or sometimes slightly higher if you have no other debt,” said Ms. Volk, the mortgage broker.

As ING Direct clients, the Hariris are leaning towards taking a fixed rate mortgage with that bank. While financial experts say that over the long term borrowers do better with variable rates, new buyers often opt for the peace of mind that fixed rates offer.

And while the Hariris are not using a mortgage broker to help them hammer out the best deal possible, it is an increasingly popular option. Last year 33 per cent of purchasers used mortgage brokers, up from 27 per cent the prior year, according to a CMHC survey.

Do some research

Mortgage brokers, who are typically paid on a commission basis by lenders, may save borrowers some money on the rates and terms they negotiate, but Ms. Volk says a large part of their role is educating people. “The main things to watch for is terms and conditions of the mortgage.”

With the recent drop in mortgage rates, Ms. Volk says many people have been dismayed to find they cannot take advantage of potentially huge interest rate savings because the “break fee” to get out of their current mortgage is prohibitive. Interest penalties for getting out of your mortgage early vary and may take the form of a three-month interest payment or interest rate differential charge. Make sure to get your lender to spell out the break fee to you, and get it on paper.

Some lenders offer “blend and extend” options which can allow some borrowers to get at least some of the benefit of lower rates. Typically, the penalties for breaking the original mortgage are included in the blended rate calculation so borrowers are not faced with an upfront charge.

Pre-payment privileges are also something first-time buyers should seek for two reasons: Because they are typically early in their careers, they can reasonably expect higher take-home earnings through promotions or switching employers for a better paying job and are able to make additional payments to the mortgage. As well, the interest on mortgages is front-end loaded, meaning that the majority of payments in the early years of 25-year amortization mortgage go to interest, not principal.

The math

Here is why shopping around for the best rate possible is no trifling matter. Take a half-point interest rate difference on a 5-year, $500,000 mortgage with a 25-year amortization period. With a 5.75 per cent rate, the mortgage holder would have monthly payments of $3,125.11 versus $2,979.59 at 5.25 per cent. That doesn't sound like much until you run the 5-year amortization schedule. At the higher rate, the buyers made mortgage payments of $187,506.60, with 72 per cent of that, or $135,086.29, going towards interest payments. At the 5.25 per cent rate, the mortgage holders not only pay $178,775.40 less, but 68.8 per cent or $123,032.28 less goes to interest and more to chipping away at the principal. The difference? A total of $8,731.20 less in payments - $12,054.01 in interest saved and an extra $3,322.81 to the reduction of the principal owed.

The Canadian Association of Accredited Mortgage Professionals has a variety of calculators on its website, including a prepayment calculator, maximum mortgage calculator and a rent vs buy calculator.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

A Thanksgiving Tradition, with a Twist - The Deep Fried Turkey!

A Delicious Feast – with a twist!


Ever consider something a little bit different for Thanksgiving? Perhaps this year could be the year to break tradition and try something fun and exciting! How about feasting on a delicious Deep Fried Turkey with Stuffing, Cole Slaw, Garlic Mashed Potatoes, with Pumpkin Cheesecake for desert!!

Why deep fry? Doesn’t that add a whole bunch of FAT to the turkey?

Now, I’m no dietician, however, think about this for a second. When you bake a turkey, the fat in the bird drips out of it, into a pan and is collected, turned into gravy, and poured back on top of the turkey & potatoes (and other things!). In a deep fried turkey, the hot oil singes the exterior of the bird, trapping all that juice inside the bird, where it keeps the meat tender, juicy and delicious! I do tend to avoid eating the exterior of the turkey though!

How to deep fry a turkey?

****DISCLAIMER***** Deep Frying ANYTHING is dangerous. Please be extra cautious and have a contingency plan if something happens to go wrong. If you wish, I will happily come by and share my knowledge and experience as you prepare and eat your delicious thanksgiving feast.


I recommend using “Butterball” brand turkeys. They are consistently the most moist, delicious turkeys available. I recommend smaller turkeys, between 10 and 15 pounds. When Deep Frying, the turkey must be COMPLETELY THAWED, cleaned out, and dried off prior to cooking. Place the turkey on the included metal “poultry holder.” Do not use a stuffed turkey!!!


Assemble your deep fryer, as per manufacturers instructions. See below for specific tips on setup!


HOW MUCH OIL TO USE - Place your turkey in the pot, and fill it with water until the entire bird is JUST covered. Remove the bird and measure the volume of water required. (I normally visually measure it, or measure the distance from the top of the pot to the water level). Empty the pot and dry all of the water. Fill the pot with the same volume of oil (use a quality oil with a high smoking point – 450°F preferably). The pot should not be more than ¾ full when the bird is added, or you may risk of splatter or fire!


Heat the oil to 350°F. Once the oil is at a steady temperature, using oven mitts and the included hook, SLOWLY and CAREFULLY lower the turkey into the pot. It is normal to splatter a little bit, so be mindful of the splattering oil. It is normal for the temperature of the oil to decrease by 40 – 50 degrees after the turkey is immersed, but avoid over-heating the oil – if the temperature was steady before, it will return to 350° again.


Keep an eye on the temperature. Never let it get too much hotter than 350°. The bird wil need about 3.5 minutes per pound to be completely cooked. That means your average turkey will be delicious in under an hour. Yumm!! Let it stand for about 10 minutes before you carve it.

Large outdoor Deep Fryer kits are available from Hardware stores such as Canadian Tire, and TSC Stores. Grab one that has the poultry holder, and lifter. Be sure to seat your deep fryer on a stable, flat surface, and if there happens to be snow (oh no!), consider placing it on a piece of plywood or paneling, so the snow that is supporting it doesn’t melt in the event of splatter!! It is not recommended to place your deep fryer on concrete or patio stones, as splattering oil can cause long-lasting stains or damage! Grass is best! Also, be sure to have it a safe distance away from any combustibles, such as your deck, house, or shed!



Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Canadian home sales remain strong

Reprinted courtesy of The Globe and Mail

Canadian home sales dipped slightly in August as the market took a breather after strong spring and summer sales, according to statistics released Tuesday by the Canadian Real Estate Association.

Year-over-year, the number of sales was up 18.5 per cent from August, 2008.

“On a seasonally adjusted basis, national …[resale] home sales held steady. At 42,426 units, seasonally adjusted activity came within six-tenths of 1 per cent of levels in the previous month,” CREA said.

“Seasonally adjusted activity in Alberta and Quebec declined, offsetting activity gains in British Columbia.”

Economists had expected that the pace of resale activity might ease a bit between July and August “following a 61 per cent blast-off in the prior six months,” Douglas Porter, deputy chief economist of the Bank of Montreal, said in his morning research note.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Bank of Canada keeps key rate unchanged

Reprinted courtesy of CBC NEWS

The Bank of Canada left its key overnight interest rate unchanged Thursday as it again warned that a high Canadian dollar poses a risk to economic recovery.

The target for the overnight rate will remain at 0.25 per cent. Economists had expected no change.

The central bank also reiterated its commitment to leave the key rate at that level through the middle of next year as long as inflation remains in check.

The central bank said growth for the remainder of the year will likely be higher than it forecast earlier this summer.

"Combined with recent information on inventory adjustments and automotive production, this suggests that GDP growth in the second half of 2009 could be stronger than the bank projected in July," it said in a release.

The central bank said it still expects inflation will remain low and will return to its two per cent target in the second quarter of 2011 "as aggregate supply and demand return to balance."

Government softens impact of HST on new housing

Reprinted courtesy of CREA


The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.

Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.

Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.

The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.

For more information on the HST - click HERE

There you go - buy your new house before June 18, 2010 and save!

Canadian housing starts jump in August

Reprinted courtesy of CBC News

Canada's housing sector continued on the comeback trail in August as home starts for the month jumped more than 12 per cent, according to new figures released Wednesday.

Canada Mortgage and Housing Corp. said construction companies started work on 14,177 new homes in August, for a seasonally adjusted annual rate of 150,400.

The August jump represented a 12.1 per cent increase versus July and reinforced CMHC's belief that the housing sector is seeing a sharp rise in activity.

"Housing starts are trending higher, reflecting improvements in both the single and multiple segments," said Bob Dugan, chief economist at CMHC's market analysis centre.

"The improvement in housing starts is consistent with our expectation of a stronger second half for 2009," he said.

Building rise

Similar to the American housing market, Canada's home sector has seen increased activity, both in new house construction and resale activity, in recent months.

Markets in the two countries had been pounded during the past year as a slumping economy cut house values and reduced the incentive to buy a new abode.

Thus, even with August's increase, housing starts were still down more than 25 per cent compared to the same month in 2008.

Analysts have pointed to record low interest rates and relatively low mortgage costs — currently hovering around four per cent at many institutions — as major factors underscoring the housing comeback.

In a report also released on Tuesday, RBC Economics backed up that point, noting that home affordability in Canada improved in the second quarter of the year.

B.C. gain

The big provincial winner in the CMHC figures appeared to be British Columbia as annualized housing starts reached 17,000 for the country's most westerly province. That represented a jump of 56 per cent versus July's figure.

The Prairie region was the area with the second best growth rate for August, up 16 per cent compared to the previous month while Ontario saw housing starts rise by more than 13 per cent.

Housing affordability improves, RBC says

Reprinted courtesy of cbcnews.ca

It's becoming easier to carry the costs of home ownership in Canada, but a survey by RBC Economics on housing affordability suggests this may be as good as it's going to get.

Home ownership became more affordable in the second quarter, the bank said Wednesday. It was the fifth straight quarter that the measure improved, it said.

"The national home affordability level has been restored to pre-housing boom levels," senior RBC economist Robert Hogue said in a statement.

But he warned that consumers shouldn't expect affordability to improve much more.

"The recuperative phase of the affordability cycle seems to be drawing to a close, with housing prices firming up in many parts of the country, and mortgage rates no longer trending downward," Hogue said.

Most banks lowered their mortgage rates in the last week, reversing this summer's earlier rate hike. A five-year fixed closed mortgage can now be obtained at 4.19 per cent at many banks and as little as 3.99 per cent at a few smaller financial institutions.

The RBC affordability study measures the percentage of pre-tax household income needed to service the costs of buying a home (mortgage payments, utilities and property taxes).

Housing affordability - bungalow
City	Q2/09 (% of pretax income needed)	Q2/08
Vancouver	63.4	76.8
Calgary	35.7	46.2
Edmonton	33.8	41.8
Toronto	46.5	54.2
Ottawa	38.6	42.4
Montreal	37.3	41.4
CANADA	39.1	45.4
Source: RBC Economics

The study found that it took an average of 39.1 per cent of income to pay for a detached bungalow in the three months ending in June — down from 39.7 per cent in the first quarter.

The priciest market continued to be Vancouver, where it took 63.4 per cent of pre-tax income to service a bungalow purchase.

Nationally, the RBC study found that affordability also improved for two-storey homes, townhouses and condos.

Despite predictions that home affordability is levelling off, RBC economists say the recent bounce-back in the housing market is not likely to wane any time soon.

"Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country," RBC's Hogue said.

Figures from the Canadian Real Estate Association showed that 50,270 homes changed hands in July via MLS — a record for any July.

The average residential resale price rose 7.6 per cent from a year ago to $326,832.