Current Mortgage Rates

Rate
Term
5-Year Fixed 5.99%
3-Year VRM 5.75%, Prime minus 0.50%

Quote of the Week

“The superior man understands what is right; the inferior man understands what will sell.”
Confucious

Paul Croteau
Mortgage Specialist
BMO Bank of Montreal
ph: (905) 321-3230
Paul.Croteau@bmo.com

New Listing at 36 Oarsman

UPDATE: This property has been sold!

Please use our online complimentary St. Catharines Ontario real estate search to find similar available listings.

Enjoy vaulted ceilings, a fireplace, and a breakfast nook. This is the first time this home has been listed.

oarsman-cres-36-main.jpg

Priced at $469,900
First time offered
Port Dalhousie Location
Complex known as Regatta Heights
2 bedroom bungalow
3 bathrooms with 4pce ensuite
Kitchen with breakfast nook and dinette
Beautiful great room with vaulted ceilings and gas fireplace
Completely finished downstairs with 2 bedrooms,
Recreation room, 3pce bathroom and work area
Double attached garage with double concrete driveway

brochure.jpg

Flu Shots Available In Niagara

Public health officials expect about 12,000 people across Niagara to roll up their sleeves over the next month at free flu shot clinics.

Take a look at St. Catharines Standard about this story: Local News

This North End Bungalow at 37 Garnet Street Just Hit The Market ~ Call Timothy Today!!

UPDATE: This property has been sold!

Please use our online complimentary St. Catharines Ontario real estate search to find similar available listings.

Transformed from frog to prince, this home has had its share of change. In the past few months, this home has had a new roof installed, laminate and carpet throughout, fixtures replaced, and much more.

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Priced at $124,900
Down payment only $6,245.00
Northend location
Approximately 700 square feet
Totally renovated from top to bottom
2 bedrooms, 4pce bathroom
Detached garage with private driveway

brochure.jpg

Current Mortgage Rates

Rate
Term
5-Year Fixed 6.05%
3-Year VRM 5.75%, Prime minus 0.50%, fully open term

Bank of Canada Update
As expected, the Bank of Canada did not change its overnight lending rate, which means there will not be a change in BMO’s prime lending rate. With the recent increases to fixed rate mortgages, variable rate products are now becoming very popular again. The Central Bank does not meet again until December 4th, which ensures low variable rates throughout the Fall season.

Quote of the Week

“If past history was all there was to the game, the richest people would be librarians.”
Warren Buffet

Paul Croteau
Mortgage Specialist
BMO Bank of Montreal
ph: (905) 321-3230
Paul.Croteau@bmo.com

Down Payment Options for Home Buyers

Do you have any friends or family members who would like to buy their first home but just can’t seem to save for the down payment? This could be an option for them (see below). Another option is 100% financing!! As always, should you have any questions, don’t hesitate to call me and I will arrange an appointment with any of our full-time mortgage specialists.

Timothy Salisbury
Broker
Royal LePage Niagara Real Estate Centre, Inc., Brokerage
www.timothysalisbury.com
email@timothysalisbury.com
Office: 905-937-6000
Toll Free: 800-467-8498

P.S. Remember the very best time to buy is from September to the end of December, so call me today, should you have any buying questions!!

Every year, just a few months before it’s time to file your tax return, we tell buyers that this is the perfect time of year to “create” a down payment by using their RRSP allowable contribution limit and the Federal Government’s Home Buyers’ Plan for first time home buyers.

First a quick review…every first-time buyer has the right to withdraw up to $20,000 from his/her RRSP at the time of a home purchase. The little-known secret is that the money does NOT need to be used strictly for the down payment on your house or condo purchase.

However, it does have to be in your RRSP for at least 90 days before pulling it out to purchase a home, so that’s why you need to do some advanced planning!

So, how can you create a down payment out of ‘nothing’?

The first step is to dig out your last Tax Assessment form from Canada Customs and Revenue (you received this when you received your tax refund last spring) and check it to find out your allowable RRSP contribution as of right now. Many people have several thousand dollars left that they can contribute because they haven’t topped up their contributions annually; some people have a lot more than that.

Let’s assume for a moment that a couple is planning to purchase a home and each of them can top up their RRSP by at least $20,000.

The next step is to arrange for an RRSP loan of $20,000 each. Pretty well everyone can qualify for this loan because the banks keep your RRSP investment (a GIC, for instance) in their bank, so it’s safe in their eyes. Take out this loan for a long term (three to ten years), not because you’re going to have this loan for a long time, but because it will make your payments lower while you do have the loan.

When March 1st comes along, file your tax return right away and wait for the big refund cheque to come in the mail.

Let’s assume that you’re in a 40% tax bracket. You should then get back approximately $8,000 each in tax refund based on reducing your taxable income by $20,000. This $8,000 each (total of $16,000) now becomes your down payment…don’t spend it!

Now, here comes the fun part. Go out and purchase a home with a closing date of at least 90 days after you put your borrowed funds into our RRSP.

When you get to about 10 days to 2-weeks prior to the closing date for your home deal, instruct the bank to cash in your $20,000 worth of RRSP’s each. The person at the bank, of course, will say…”You’ve got a loan against it” and then you say…”Pay the loan off with the $20,000 I’m withdrawing”.

Following all of these steps carefully will leave you in the enviable position of having NNO RRSP loan, $16,000 in your hand to use as your down payment and 15 years to repay the $40,000 that you withdrew from your RRSP’s.

Thanks again – Timothy

Current Mortgage Rates

Rate
Term
5-Year Fixed 6.04%
3-Year VRM 5.75%, Prime minus 0.50%

Quote of the Week

“Time is the scarcest resource and unless it is managed nothing else can be managed.”
Peter Drucker

Paul Croteau
Mortgage Specialist
BMO Bank of Montreal
ph: (905) 321-3230
Paul.Croteau@bmo.com