Intrigued, the little girl and mom decided to call the grandmother and pose the question about cutting off the ends of the holiday ham. Grandmother admitted that she didn’t know the exact reason, either. She replied, “I’ve just always prepared the ham the way my mom did it.”

So their next call was to the great-grandmother. When they asked her about her method of preparing the holiday ham, she laughed for a solid minute. Then she solved the mystery by saying, “I was forced to cut the ends off the ham because it was the only way I could get it to fit the small pot I had!”

Each time I hear this story of the holiday ham, I can’t help but think of the parallels that exist in business where the “cutting off both ends of the ham” is represented in the pressure to actively cold call, prospect door-to-door, and run the traditional ads that were effective for businesses back in 1970.

I think we can all agree that the landscape of business has changed. Things look much different today than two or three years ago – much less two or three decades ago. It’s unfortunate that much of the information we receive in the area of marketing and growing a business is based on what’s “traditionally” been done rather than on what’s generating Real Results in today’s new world.

Experience has shown that gimmicky taglines and glossy two-page spreads in the local real estate magazine are not enough to grow a thriving business.

The days of surviving as a “C” player in an “A” market have changed.

To succeed in today’s New World you’ve got to learn how to become an “A” player in a “C” market.

The power of communicating to the masses as a stranger has been replaced by the importance of effectively communicating to a smaller group as a friend.

It’s no longer about the ad – it’s all about the relationship.

This requires you to become more skilled in acquiring new prospects, converting more leads to contracts, generating more referrals, and staying more connected with your sphere.

The good news is that you’re not on this journey alone.

I can help, and of course, I’ll be extra careful to make sure you don’t  “cut off both ends of the ham” along the way.

Join me as I grow my business in 2011.

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.



Imagine If The The Home You Wanted To Buy Came With A 5% Price Guarantee…

If The Market Drops Up To 5% in 1 Year -
You Get A 5% Refund.

Are you concerned about buying a house in today’s market only to see the market and consequently your investment drop?

The Buyer Protection Plan allows you to buy a home today knowing that if the market drops over the next year you’ll receive a refund to compensate you.

Example: All things being equal which house would you rather buy? House A for $300,000 with no buyer protection plan or House B for $300,000 but with a guarantee that if the market drops by say 5% over the next year then you’ll receive 5% of the price you paid back?

You can now buy with confidence because you’re Protected!

Ask me how you can receive a FREE 5% Price Guarantee.

Make Sure The Home You Buy Comes With The Buyer Protection Plan

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The Buyer Protection Plan will Guarantees the buyer for 1 year against a market drop of up to 5%.

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The Buyer Protection Plan

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.



I was at lunch last week with a friend of mine and he told me that he wanted to buy a minivan for his family that cost $31,400 and the payment would be $455 per month.

Bank of Canada increases overnight rate target to 1 per cent

OTTAWA –The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economic recovery is proceeding but remains uneven, balancing strong activity in emerging market economies with weak growth in some advanced economies. In the United States, the recovery in private demand is being held back by high unemployment and recent indicators suggest a more muted recovery in the near term.

Economic activity in Canada was slightly softer in the second quarter than the Bank had expected, although consumption and investment have evolved largely as anticipated.  Going forward, consumption growth is expected to remain solid and business investment to rise strongly. Both are being supported by accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.

The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected in its July Monetary Policy Report (MPR), largely reflecting a weaker profile for U.S. activity. Inflation in Canada has been broadly in line with the Bank’s expectations and its dynamics are essentially unchanged.

Against this backdrop, the Bank decided to increase its target for the overnight rate to 1 per cent. As a result of monetary policy measures taken since April, financial conditions in Canada have tightened modestly but remain exceptionally stimulative. This is consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.

Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.

Information note:
The next scheduled date for announcing the overnight rate target is 19 October 2010. A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 20 October 2010.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Paying Off Your Mortgage Faster

1. Increase the amount of your payments
2. If you renew with a lower rate, keep the monthly payments the same
3. Choose an “accelerated” option for your mortgage payment
4. Making lump-sum payments: Prepayments

1. Increase the amount of your payments

One of the ways to pay off your mortgage faster is to increase the amount of your regular payments. Normally, once you increase your payments, you will not be allowed to lower your payments until the end of the term. Check your mortgage agreement or contact your mortgage lender for your payment options.

Example:

• John is getting a mortgage of $150,000, amortized over 25 years, with a fixed interest rate of 5.45 % for 5 years.
• The mortgage lender tells him that that he must pay at least $911 a month.
• He is trying to decide if paying $50 more a month will help him save money.

Assumptions

• The interest rate of 5.45% remains the same over the 25-year mortgage.

	Monthly payment at $911	Monthly payment at $961
Principal	$150,000	$150,000
Interest payments	$123,368	$108,859
Total amount paid	$273,368	$258,859
Interest savings	-	$14,509
Years to pay off	25	22.5

By paying an extra $50 a month over the life of the mortgage, John would save over $14,000 and pay off the mortgage two and a half years sooner.

2. If you renew with a lower rate, keep the monthly payments the same

At the end of your mortgage term, when you renew or renegotiate your mortgage, you may be able to obtain a lower interest rate. Although you would have the option of reducing the amount of your regular payments, you can take advantage of this situation to pay off your mortgage faster. Simply keeping the amount of your payments the same will make you mortgage-free sooner.

Example:

• Stefanie used to pay $1,000 each month on a $150,000 mortgage.
• When she renewed her mortgage after five years, the interest rate had decreased by one percent, from 6.45% to 5.45%.
• While the lower interest rate would have reduced Stefanie’s monthly payments to $924, Stefanie decided to keep the monthly payment at $1,000 in order to reduce the total amount of interest she will pay over the term of the mortgage.

Details

• Stefanie is renewing her mortgage after five years for another five-year term.
• The remaining mortgage principal amount is $135,593.

Assumptions

• The new interest rate of 5.45% would remain the same for the rest of the mortgage.

Keeping the same payments while renewing at lower interest rates
(over the life of 20-year mortgage at 5.45%)

	Monthly payments at $924 (new minimum payment)	Monthly payments at $1,000 (maintaining previous payment)
Principal	$135,593	$135,593
Interest payments	$86,228	$73,916
Total amount paid	$221,821	$209,509
Interest savings	-	$12,313
Years to pay off	20	17.5

By keeping the monthly payments at $1,000 per month with the lower interest rate for the rest of her mortgage, Stefanie will save over $12,000 and will pay off the mortgage two and a half years sooner.

3. Choose an “accelerated” option for your mortgage payment

You can spend approximately the same amount of money on your mortgage each month and still save money by choosing an accelerated option for making your payments.

Most financial institutions offer a number of payment frequency options:

- monthly
- semi-monthly
- biweekly
- accelerated biweekly
- weekly, and
- accelerated weekly

Accelerated payment options

Accelerated weekly and accelerated biweekly payments can save you thousands, or even tens of thousands in interest charges, because you’ll pay off your mortgage much faster using these options.

The reason is that you make the equivalent of one extra monthly payment per year.

Standard payment options

The standard payment options are

• monthly
• semi-monthly
• biweekly
• weekly.

For these four payment options, there is no difference in the total amount you will pay over a year. This means that there is very little extra savings if you switch from a monthly payment option to one of the other standard payment options.

Example: Impact of changing the payment frequency

The table below shows the payment frequency options offered to John by his lender, their impact on his mortgage payments and how much he can save over the amortization period.

Mortgage details

• Mortgage principal of $150,000 amortized over 25 years
• Interest rate of 6.45% for the entire amortization period

	Payment frequency	Number of payments per year	Payment amount	Total payments per year	Interest saved on mortgage
Less frequent More frequent	Monthly	12	$1,000	$12,000	-
	Semi-monthly (twice a month)	24	$500 ($1,000 ÷ 2)	$12,000	$162
	Biweekly (every two weeks)	26	$462 ($1,000 x 12 ÷ 26)	$12,012	$174
	Accelerated bi-weekly	26	$500 ($1,000 ÷ 2)	$13,000	$29,407
	Weekly	52	$231 ($1,000 x 12 ÷ 52)	$12,012	$249
	Accelerated weekly	52	$250 ($1,000 ÷ 4)	$13,000	$29,751

Note: This example assumes a mortgage of $150,000, amortized over 25 years, with a constant interest rate of 6.45%.

By choosing an accelerated payment frequency, John makes the equivalent of one extra monthly payment a year. John will pay off his mortgage over four years sooner and will save over $29,000 in interest over the amortization period.

4. Making lump-sum payments: Prepayments

A prepayment is a lump-sum payment that you make, in addition to your regular mortgage payments, before the end of your mortgage term. The prepayment reduces your outstanding balance and allows you to pay off your mortgage faster.

The sooner you can make the prepayment, the less interest you will pay over the long term, and the sooner you will be mortgage-free.

Key things to remember

• Your mortgage agreement will specify whether you can make prepayments, when you can do so and other related terms or conditions. Read it carefully, and ask your mortgage lender to explain anything you don’t understand.
• If your mortgage lender is a federally regulated financial institution such as a bank, as of January 2010, it must show your prepayment options in an information box at the beginning of your mortgage agreement.
• Your mortgage agreement may specify minimum and maximum amounts that you can prepay each year without paying a fee or penalty.
• The prepayment option is generally not cumulative. In other words, if you did not make a prepayment on your mortgage this year, you will not be able to double your prepayment next year.
• A closed mortgage agreement may require you to pay a penalty or fee for any prepayment.

Questions to ask

When shopping for a mortgage, make sure that you understand the prepayment options and conditions before you sign the contract. Ask the lender the following questions:

• How much can I prepay without paying a fee or penalty?
• Is there a minimum amount for a prepayment?
• When can I make prepayments?
• Are there any conditions?
• If there are fees or penalties, how much are they, and how are they calculated?

Example

• John received a raise which allowed him to save $15,000.
• He decides to use it to make a prepayment on his mortgage at the beginning of the second year of his term.
• However, his mortgage lender limits prepayments to a maximum of 10% of the principal.
• John wants to know whether he can make that large a prepayment, and if so, how much sooner he will be able to pay off his mortgage as a result.

Details

• Mortgage of $150,000, amortized over 25 years
• Lump-sum payment limit: 10% of principal allowed once a year

Assumptions

• Interest rate will be 5.45% for the entire 25-year mortgage

Calculation of the maximum prepayment allowed

Original mortgage:

$150,000

Limit allowed by John’s mortgage lender:

x 10%

Allowed lump sum payment:

= $15,000

John will be able to use his raise to make a $15,000 in lump-sum payment, since he is allowed to prepay up to $15,000 each year.

Over the mortgage period	No prepayment	Prepayment (beginning of second year)
Prepayment lump sum	-	$15,000
Principal	$150,000	$150,000
Interest payments	$123,368	$90,168
Total amount paid	$273,368	$240,168
Interest savings	-	$33,200
Years to pay off	25	20.7

Making the prepayment will reduce the amount of interest John will have to pay over the life of the mortgage by over $33,000, and he will be able to pay off the mortgage over four years sooner.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Can I use my car as a down payment?

Down Payment – The amount of cash paid towards the purchase transaction by the buyer of a home. This is also known as the purchaser’s initial equity in the property, but is also used by a lender to judge the personal commitment to the property. For example, a lender considers that, if a buyer saved the down payment, or received it as a gift from a loved one, they will be far more committed to maintaining the property value and making the mortgage payments than if they acquired it for no money down. Hence the tighter qualifying rules for a Zero Down Purchase

Lenders must ensure that a borrower is fulfilling the minimum down payment requirements from the applicant’s own resources, and the lender should further verify this amount will be available at the time of closing. Down payment equity from “own resources” is interpreted to mean from… bona fide savings, an outright gift from immediate relatives, borrowing at arms-length from a third party, equity from the sale of another property, and/or duly contracted applicant labour. In addition to confirming the minimum equity requirements, the lender must also be satisfied that the borrower is able to cover expected closing costs. These may include, but are not limited to, legal fees, deposits, appraisal, any land transfer taxes and registration fees, etc.

Applicant’s Savings
Lenders look for a 90 day history on accounts

Sale of Another Property
If down payment equity is to come from the sale of another property, verification of this equity must be obtained. The lender will confirm the previous property’s selling value plus the outstanding balance of any existing financing on that property.

Sale of Stocks/RRSPs
If the down payment is to come from the sale of stocks or bonds, the lender must verify the fair market value of such assets.

Family Gifts
Outright gifts from immediate relatives are normally an acceptable  source of down payment. Gifts are to be documented by a formal letter from the donor declaring the amount as a “true gift” and not a loan. Confirmation of deposited funds will also be required.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

As you probably know, property taxes are DUE July 2nd and 2010 is the first year this program is available.

By now you’ve probably received your annual property tax bill in the mail and Inside there was information about the new option to defer your property tax payment.

Please understand, Deferring the taxes doesn’t mean you don’t have to pay it,  it means you don’t have to pay it NO.

You will have to pay it back in the future and Interest is charged at Bank Prime.

So let’s talk about the qualifying criteria

#1 You must reside in the property

#2 You MUST be a Canadian citizen or permanent resident who has lived in British Columbia for at least one year immediately prior to applying.

#3 You are financially supporting, at the time of the application, a dependent child who is under the age of 18 at any time in the calendar year in which you apply, and who

• lives with you full time in your home,

• lives with you at least part time under a shared custody agreement, o

• does not live with you, but you pay support for the child, or are responsible for fees and/or living costs if they are attending school

#4 You must have, and maintain, a minimum equity of 15% of the current BC Assessment (NOT APPRAISAL) BIG differenc.
That means all mortgages cannot exceed 85% of the BC ASSESSMENT value and finally

#5 You must have fire insurance

Now let’s talk about what I think about it.

Just like any other debt, I don’t advise incurring it unless you
absolutely MUST

And even then, if finances are tight, you may want to call me to discuss MUCH better options that are available that will put you in a way better financial position.

As you can see, there’s way more to mortgages than just numbers.

I’m not saying you have to use my services, but make sure that whoever you use, gives you

the right advice – at the right time

PS – Deferral of your 2010 taxes will not automatically result in the deferral of your 2011 taxes.
And remember, if you do defer your property taxes and decide at a later date to refinance or switch, most lenders will insist that your property taxes be paid prior to advance anyway.

Call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Mortgage insurance, does it protect you or does it protect the bank?

It’s a Great question, and it’s one that confuses a lot of people so Today, I want talk briefly about the difference between the two.

I’m basically talking about two types of insurance, and although they are totally different, they do have TWO thing in common

1) YOU pay for both of them.
2) BOTH insure your mortgage

The BIG difference is WHO they protect.

Let me start with High ratio mortgage insurance also referred to as CMHC default insurance.
You get this type of insurance before you actually purchase the home.
It’s required by law on ALL mortgages made in Canada with LESS than 20% down,

This type of insurance protects the BANK, NOT YOU.

It safeguards the bank in case you go into default on your mortgage
Hence the name default insurance!

Now the other type of mortgage insurance you actually get after you purchase your home.
This type of insurance, unlike the first one, actually
PROTECTS YOU.
It basically pays off your mortgage in the event of an unexpected death.

Let me tell you a quick story about something that happened back east a number of years ago -
Husband & wife bought a home,
6 months later, husband is diagnosed with cancer.
A year later he dies.
Now the Wife thinks they had mortgage insurance and requests mortgage to be paid off.
She was told that she didn’t have insurance.
She sued and it went all the way to the Supreme Court of Canada, fortunately she won.
But Since that court decision, if you do decide NOT to take insurance, you must sign a waiver.
As much as it is optional insurance, I highly recommend it.
As you can see, there’s a lot more to a mortgage than just numbers.

You need the Right Advice at the Right Time!

You might want to call me to discuss 604-273-2002

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

1. Understanding your Report

It would do you very little good to pull your credit report twice a year if you have no idea what it means and how to read it. There are two basic categories that will consume the majority of your report, the paid on time side, and the not paid on time side. The paid on time side will be listed first and it will have all the different debts, credit cards, and loans that you are currently paying on and you are on time with. The not paid on time side will be all the different debts that you have ever paid on late, even if it was just one payment.

2. What to look for when you check your credit rating

Your actual rating is also known as your FICO score. This is what you are judged on and when you check your credit rating you need to be looking to see what is on your report. You need to make sure that your report is correct and all the debts listed are yours. If there are debts on your report that do not belong to you, then you need to contact the credit bureau and get these debts off your report.

3. Changing your Rating

You may want to contact me to set-up a personalized plan Email me
>Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.