Canadian Homeowners: 1 simple tip to save THOUSANDS!

I had an fascinating conversation with a mortgage broker the other day about renewing current homeowners renewing their mortgages, and what he had to say, SHOCKED me!  He gave me some statistics that the Canadian Mortgage and Housing conducted and I couldn't believe it.

FACT #1:  89% of homeowners remain with the same lender.

FACT #2:  68% of homeowners just accept the renewal from their current lender.

So what is the problem?  The original lender must be offering the best rates, right?  Sadly, the answer is likely "no".

Often, the original lender will offer you a "much better rate" as a "preferred customer" for your loyalty to the company and will be able to save you tremendous savings from the posted rates.  This is all true, but they can do better.

This can be best illustrated with an example:

example:  $250,000 mortgage, 5 year fixed term, 25 year ammortization, paid monthly

The lenders "posted" rate may be 5.29%, which is quite common in January 2012.  As a cherished and preferred customer, they might offer you a rate of 3.79%.  WOW!  Where do I sign!?  Right?

Hold on!  The problem is that an even better rate can be easily obtained, and it only takes a phone call to a mortgage broker.

In January 2012, rates of 3.29% can easily be found, through more than one lender.  Yes, HALF a percent difference than your "preferred customer" rate.  So you might be thinking, does it really make a difference?  Here's the math:

Rate                                           3.79%                          3.29%

Monthly mortgage                  $1286.75                     $1220.63

           Monthly savings:           $66.12

           Five year savings:      $3967.20

Using the figures in the example above, a homeowner can save just shy of $4,000.00 in five years by simply making a phone call and merely shop around.  Most brokers do not charge a fee for inquiries or advice and there are no legal costs when transferring a mortgage at the end of a term. 


If you agree with me, you can contact me at GetStephen@live.com or at my office at 905-723-5944.  I urge you to make a phone call to a local mortgage broker right away, especially if you are up for renewal soon.

The agent that inspired me to write this blog is John Greenlee at The Mortgage Centre.  He can be contacted at jgreenlee@durhammortgage.com or at 905-436-8010.

Happy savings!

Stephen Young
www.GetStephen.com

Coyote Attacks in Whitby

For the second time in as many months in the same area of Whitby, a dog was attacked and killed by coyotes.

The second incident happened on April 22, around 9 p.m., when Durham Regional Police were called to a home in the Thickson Road and Burns Street area. The complainant reported his small dog, described as a maltese-poodle cross, was attacked in the unfenced yard. The owner witnessed the incident and was able to retrieve the deceased dog from a nearby hydro easement property, where the coyotes were last seen running towards.  The dog owner wasn't physically hurt.

In March, a dog was snatched by coyotes in the Dundas Street and Nichol Avenue area.
For more information on coyotes, call the Ministry of Natural Resources (MNR) office at 905-713-7400, or your local animal services office.

The MNR website gives a number of safety tips regarding coyotes:

1)  Do not approach them. They're usually wary of humans, but they're wild and should not be approached.
2)  Do not feed them. It makes them less fearful of humans and habituates them to food provided by people. Plus, they may return to the area for more.
3)  If you encounter a coyote, don't turn your back on it or run from it. Back away from it while remaining calm. It's a good idea to use whistles and personal alarm devices to frighten them if they do approach or pose a threat.

4)  Secure garbage by properly storing it and maintaining garbage containers. Place trash bins inside an enclosed structure to prevent small rodents.
5)  Put garbage at the curb the morning of the pickup, rather than the night before.
6)  Use enclosed compost bins rather than exposed piles (NOTE:  coyotes are especially attracted to dog and cat waste, meat, milk and eggs).
7)  Keep bird feeders from overflowing as coyotes like fruit, nuts and seeds. Keep pet food indoors.
8)  Close off crawl spaces under porches, decks and sheds. Coyotes can use these areas to raise their young.

If you feel a coyote is posing an immediate threat or a danger to public safety, call 911.