Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.
Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.
When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.
As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.
The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.
It's really never too soon to begin planning for a move, and veteran movers have found that a comprehensive timetable and checklist is the best strategy to ensure a smooth relocation. It's also a great way to involve the entire family in the move and to spread some of the responsibilities to each person, including your children You'll feel a sense of accomplishment as items are checked off. Moreover, as the weeks roll by, your checklist will help ensure that nothing has been overlooked or omitted from your planning, and that alone will go a long way toward relieving some of your anxiety.
Eight Weeks Before
Contact your mover to make arrangements for moving day.
Remove items from your attic, basement, storage shed, etc.
Start to use up things you can't move, such as frozen foods and cleaning supplies.
Contact the Chamber of Commerce or visitors and tourism bureaus in your new community for information on your new city.
Six Weeks Before
If you're moving at an employer's request, verify what expenses and responsibilities are theirs and which are yours.
Contact your accountant for information on what moving expenses may be tax-deductible.
Begin to inventory and evaluate your possessions. What can be sold or donated to a charitable organization? What haven't you used within the last year?
Make a list of everyone you need to notify about your move: friends, professionals, creditors, subscriptions, etc.
Obtain a mail subscription to the local paper in your new community to familiarize yourself with local government, community, and social news and activities.
Locate all auto licensing and registration documents.
If some of your goods are to be stored, make the necessary arrangements now. (Your moving consultant should be able to help.)
Contact schools, doctors, dentists, lawyers and accountants and obtain copies of your personal records. Ask for referrals where possible.
Four Weeks Before
Obtain a change-of-address kit from the post office and begin filling out the cards.
Arrange special transport for your pets and plants.
Contact utility and related companies for service disconnect/connect at your old and new addresses. However, remember to keep phone and utilities connected at your current home throughout moving day.
Contact insurance companies (auto, homeowner's or renters, medical, and life) to arrange for coverage in your new home.
If you're packing yourself, purchase packing boxes. Pack items that you won't be needing in the next month.
Plan a garage sale to sell unneeded items or arrange to donate them to charity.
Three Weeks Before
Make travel arrangements and reservations for your moving trip. However, don't make plane reservations for the same day that you're moving out. House closings are often delayed. and other unexpected situations often arise.
Collect important papers (insurance, will, deeds, stock, etc.).
Arrange to close accounts in your local bank and open accounts in your new locale.
Two Weeks Before
Have your car checked and serviced for the trip. Also, make sure that your automobile is prepared (filled with the necessary antifreeze/coolant, for example) for the type of weather conditions you'll be traveling in.
If you're moving out of or into a building with elevators, contact the building management to schedule use of the elevators.
Contact your moving consultant to review and confirm all arrangements for your move.
One Week Before
Settle any outstanding bills with local merchants.
Don't forget to withdraw the contents of your safety deposit box, pick up any dry cleaning, return library books and rented videotapes, etc.
Take pets to the veterinarian for any needed immunizations. Get copies of pets' records.
Drain gas and oil from power equipment (lawn mowers, snow blowers, etc.)
Give away plants not being moved.
Prepare specific directions to your new home for your moving company. (Include your itinerary, emergency numbers, etc.)
Two to Three Days Before
Defrost your freezer and refrigerator. Block doors open so they can't accidentally close on pets or children.
Have your major appliances disconnected and prepared for the move. (Again, your moving consultant can help with arrangements for a third party to provide these services.)
Pack a box of personal items that will be needed immediately at your new home. Have this box loaded last or carry it with you in your car.
Organize and set aside those things that you're taking with you so that they don't get loaded on the van in error.
Contact your moving consultant to confirm arrival time of the moving van, as well as to notify him/her of any last-minute details.
Your van operator and crew arrive at the agreed upon time. Make sure that someone is at home for any enquiries the van operator may have with respect to your shipment.
Record all utility meter readings (gas, electric, water).
Read your bill of lading and inventory carefully before you sign them. Keep these - and all related papers - in a safe location until all charges have been paid and all claims, if any, have been settled.
If you require additional moving information, please do not hestitate to contact me.