Home and Mortgage - February 2009
* Canada's Housing Market
* Max Benefits at Tax Time
* How Happy are You?
* 7 Highly Effective Habits
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Current Mortgage Rates |
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Term |
Rate |
APR |
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Prime |
3.00 % |
2.98 % |
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Variable |
3.80 % |
3.77 % |
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1 Year |
3.50 % |
3.47 % |
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3 Year |
3.75 % |
3.72 % |
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5 Year |
4.39% |
4.35 % |
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10 Year |
6.35 % |
6.27 % |
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* Rates may be subject to change |
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Hello,
Here we are in 2009, interest rates are at record lows and snowfall in Vancouver was a record high. What does 2009 have in store for us? On to the 1st article...
Canada's housing market returns to long-term average performance
Housing starts reached an estimated 212,366 units in 2008, which is the seventh consecutive year that starts exceeded 200,000. So from a historical perspective, Canada's housing market is still in pretty good shape. According to CMHC, the pent-up housing demand which built up during the 1990s enabled Canadian housing starts to exceed long-term demographic demand for much of the past decade. This excess demand has gradually decreased and CMHC expects construction levels in 2009 to be more in line with long-term demographic demand.
While the number of properties sold via MLS® edged down in December 2008 to the lowest December level since 2000, seasonally adjusted activity was actually up in more than half of Canadian housing markets. Activity declines in Montreal, Calgary and Edmonton were almost offset by a rebound in the number of transactions in Vancouver.
continued on pape 2
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Term of the Month |
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High-Ratio Mortgage: A mortgage that exceeds 80% of the purchase price or appraised value of the property. This type of mortgage must be insured. To avoid the cost of the insurance, a 1’st mortgage up to 80% is arranged and a 2’nd mortgage for the balance (up to 90% of the purchase price).
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Continued from pg 1
Canada's Housing Market
Year-over-year declines in the MLS® average home price were reported in only about half of local markets in December. The national average price of homes sold via MLS® in December 2008 declined by 11% from where it stood a year ago. But the Canadian Real Estate Association (CREA) cautions that moderating home prices in Canada should not be confused with the downturn in the US housing market. Canada isn't immune to global economic challenges, but low prices are not the concern as much as a perception of doom and gloom. Most Canadians will only be affected psychologically by the downturn because the majority of homeowners won't buy or sell in the coming year.
CREA believes average prices will remain under downward pressure during the recession, with a recovery expected to begin in the second half of 2009. The good news is that housing markets should strengthen in 2010. |
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Financial Freedom Tip
5 tips for maximizing your benefits at tax time.
- Contribute to your spouse's RRSP and benefit from income-splitting at retirement.
- Don't wait until the RRSP deadline. The sooner you contribute, the longer your investment earns tax-deferred income.
- Turn your contribution into a down payment for a home. You can borrow up to $25,000 from your RRSP to buy your first home.
- Consider an RRSP mortgage. In certain circumstances, you can hold your own mortgage inside your RRSP. This means the mortgage interest you pay goes to your RRSP instead of a bank. To see whether this is cost-effective for you, talk to me today.
- Consider opening a TFSA. The new Tax-Free Savings Account lets you save up to $5,000 per year without paying taxes on the income, no matter when you withdraw it. Funds can be withdrawn for any reason and unused contribution room can be carried forward. But unlike an RRSP, your contribution to a TFSA is not tax deductible. Most experts suggest maximizing your RRSP contribution first, then if you still have extra funds, put them into a TFSA. However, it's probably better to make a lump sum payment on your mortgage instead of contributing to a TFSA. Your savings in interest are likely to outweigh the income and tax savings of a TFSA. To see how much a $5,000 lump sum payment can save on your mortgage, call me today at [c_phone]
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What's your happiness level?
Find out with this FREE Test! |
Answer this question: Are you happy? You might be inclined to answer a quick “yes” or “no,” but if you're anything like me, you'll soon be embroiled in a deep philosophical self-argument about what is happiness, really? And how do I know if I am any happier than the next person?
Time to put your dilemmas away, because there is a place on the internet (of course! why didn't you think of the internet sooner?) where you can immediately receive an objective score of your personal, authentic happiness. It's AuthenticHappiness.com. Register for free and you'll have access to a large number of questionnaires which measure various character strengths and aspects of happiness. Your answers to each questionnaire will result in a score, which you can see measured next to people of similar age, sex, education, etc. Your scores will be saved in your Test Center. And if you're feeling different later, you can retake the test. Cheater.
The site is run by the University of Pennsylvania's Positive Psychology Center, which sounds like a place for optimists if there ever was one. Positive Psychology is “founded on the belief that people want more than an end to suffering. People want to lead meaningful and fulfilling lives, to cultivate what is best within themselves, to enhance their experiences of love, work, and play. |
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7 Habits of Highly Happy People
Highly happy people know that happiness doesn't depend on wealth, possessions, social status or constantly seeking pleasure. They recognize that happiness is not an end in itself; it's a by-product of some very specific beliefs and behaviors that they consciously choose to adopt. Here are the top 7:
1. Love is the wellspring of happiness. Give love and you'll continue to receive an everlasting supply. Be with someone you love every day. Do something you love every day.
2. Participate in your own destiny and forge your own happiness. Don't wait for events or other people to make you happy.
3. Work at keeping yourself healthy. Happiness and health are interdependent.
4. Develop a sense of spirituality that lets you believe in something beyond the boundaries of your own life. Be less concerned about dying and more concerned about not living..
5. Give something back. Altruism connects you to other people, gives you purpose and gets you outside of yourself.
6. Laugh! Humor is a shift of perception that gives you the strength to go on when life looks its worst..
7. Develop a sense of purpose. Know why you're here on earth. Do the things you believe you were meant to do. Be confident that if you died today, you'd be satisfied with your life.
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This Issue of Home And Mortgage is Brought to you by Your Mortgage Specialist, Darren Popoff |
With over 20 years of sales, marketing, and project management experience, I understand what it takes to get the job done. I also know that life is built on relationships and as your personal Mortgage Specialist, my relationship with you the client is of the utmost importance. There is more to a great mortgage than just the rate and the term; it's also about your needs now and in the future. As a Mortgage Specialist I work for you and not the lender, therefore my main task is to ensure that you get the best possible mortgage that meets your needs.
Your 110% satisfaction is my guarantee! Call me today at (604) 818-9262 to find out how I can create a mortgage that's right for you, not your bank! Read More
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