Millrates for 2011 for various Cities and Towns

The following are is a list of updated millrates for various towns and cities.
Sylvan Lake-Residential 7.784 Commercial 13.298
Ponoka-Residential 8.3587 Commercial 13.298
Rocky Mountain House Residential 9.855 Commercial 11.1356
Lacombe Residential 9.1909 Commercial 12.4624
Bentley Residential 11.27794 Commercial 16.25294
Eckville Residential 10.75 Commercial 16.806
Rimbey Residential 9.1784 Commercial 12.0772
Red Deer 8.2209 Commercial 16.0387
Many of these rates are including both the additinal taxes collected for school and senior housing but it is always a good idea to check in with the municipal office for any changes.

Bigger Effort by Canadians to Pay Off Mortgage Sooner

The Spring 2011 CAAMP/Maritz survey has found that mortgage holders - especially those who have purchased their homes recently are making considerable efforts to accelerate repayment of their mortgages.

Increased monthly payments:

·  22% of mortgageholders have increased their monthly payments during the past year,

·  16% had increased their payments in prior years (but not in the past year)

·  62% reported they had never increased their payments. 

Made a lump sum contribution:

·  18% have made a lump sum contribution to their mortgage in the past year

·  17% did so in prior years (but not in the past year).  

·  65% who reported that they had never increased their payments.

These payments are in addition to amortization that would occur via scheduled payments.

*Of the respondents, 40% (800 repondents) were homeowners with mortgages. The remainder were renters, homeowners without mortgages or individuals who lived with their families.  

Source: CAAMP.ca

Great New Low Rate

Mortgage Intelligence has another new lender who loves to help my clients save money on interest.
They are offering 3.51% for a limited time for my clients who are either purchasing or refinancing. This rate does not apply for those who are looking for a preapproval.

Protecting Clients Assets-CHIP Home Income Plan

This is the time of year when your senior clients pay their income and property taxes.
With restricted cash flow, many seniors resort to drawing down on investments in order to meet their tax obligations.
I offer my clients a sound, tax-efficient alternative … CHIP Home Income Plan.
CHIP Home Income Plan proceeds are not added to income for tax purposes.
Best of all, CHIP will allow you  to pay taxes and increase your cash flow without sacrificing your investment assets.
In certain situations, where unregistered investments generate income, CHIP Home Income Plan interest expense may be applied to gain tax deductions, further reducing your clients’ taxes.
And there are more great benefits:

• no interest or principal payments due until your clients choose to move or sell
• no income, credit or medical qualification required
• Rates starting at 4.75% and 50 bps rate discount when interest payments are made annually

 Seniors are the fastest-growing segment of the population.  Like no other generation, they have been living longer, spending more, and saving less.  I can help you meet your needs by providing you with a long-term borrowing solution that will meet your needs.

Mortgage Rate Outlook

On April 12th, the Bank of Canada

announced that it was leaving the

Target for the Overnight Rate

unchanged at 1.0 per cent. The last

increase in the overnight rate

occurred on September 8, 2010 when

the Bank of Canada raised it by 25

basis points. The Bank of Canada is

expected to resume raising the

overnight rate in the fourth quarter of

2011. Mortgage rates, particularly

short term mortgage rates and

variable mortgage rates, are expected

to remain at historically low levels.

According to CMHC’s base case

scenario, posted mortgage rates will

remain relatively flat in 2011 before

increasing moderately in 2012. For

2011, the one-year posted mortgage

rate is assumed to be in the 3.1 to 3.5

per cent range, while three and

five-year posted mortgage rates are

forecast to be in the 4.1 to 5.6 per

cent range. For 2012, the one-year

posted mortgage

rate is assumed to

be in the 3.4 to 4.3 per cent range,

while three and five-year posted

mortgage rates are forecast to be in

the 4.2 to 6.3 per cent range.

Rates could, however, increase at a

faster pace if the economy ends up

recovering more quickly than

presently anticipated. Conversely, rate

increases could be more muted if the

economic recovery is more modest in

nature.

Source: CMHC

Rate sheet for June 3 2011-Check out the new low 5 year fixed

Rate Sheet for May 24 2011-Check out my new low 5 year fixed!

Mortgages Designed for the Self Employed

It’s a favourite daydream of working Canadians: to go intoSource: Mortgage Intelligence

business for yourself! For some Canadians who are self-employed,

their situation is the consequence of corporate

downsizing. For others, it is a carefully planned decision to

leverage their knowledge and experience for themselves

and improve their own bottom line.

Typically a very innovative and energetic bunch, the selfemployed

now comprise approximately 16% of Canada’s

total workforce. We like to imagine that these are the lucky

folks who are living their entrepreneurial dreams.

Talk to self-employed Canadians about getting a mortgage

and many will tell you that the dream can have downsides.

These individuals – who may actually be more financially

successful than ever – often do not fit traditional mortgage

lending criteria. It can make mortgage shopping a frustrating

and, for some, a humiliating experience.

Without an established stream of pay stubs from an employer,

lenders have none of the traditional assurances that

you can meet your mortgage obligations. You may be expected

to undergo a long and complicated process to prove

your ability to service your debt. Lenders want to verify your

employment and your income – not a simple task for someone

who is self-employed. Lenders are also looking ahead;

they will want some evidence that payments can be made

for the life of the mortgage – not just over the next year.

Most frustrating of all, small business owners are usually

expected to provide detailed financial statements for their

business for the past two years. What picture do those

statements paint for the lenders? An astute business owner

with a good accountant will work hard to minimize taxable

income for the business: a smart financial management

strategy. When lenders plug those figures into their lending

formulas – they may conclude that you are a high-risk

borrower.

The problem is not with the self-employed as a category;

it is with lenders’ traditional criteria and their inability to

reflect the different income environment of a self-employed

homebuyer.

Thankfully, the lending landscape has adapted to this

market need. Certain lenders have designed mortgage

products precisely for this very attractive market segment.

Naturally, the lender will still need to assess risk, but the

criteria are tailor-made for the self-employed and

essentially take a common sense approach to the definition

of income. You could qualify for your mortgage based

solely on what you state your income to be, and after

confirmation that your lending ratios, credit and tax liabilities

are in good order. It can be that quick and easy!

As more lenders enter this market niche, you’ll find that not

all products are equal. As a group, the self-employed often

delegate to other professional service providers and this is

a situation where you may want to seek advice from a

mortgage professional so you get the best mortgage for

your needs.

For the self-employed – who build their own success on

understanding the needs of their customers – the new

mortgages designed for them are good business. And

they’re also welcome news to the growing number of

Canadians who are building their own success in their

own way.

STABILITY IN THE CANADIAN MORTGAGE MARKET

May 2011 Significant Statistics-Report Completed by the Canadian Association of Accredited Mortgage Professionals  (CAAMP)
There is currently $855 billion in mortgages on principal residences and $215 billion in Home Equity Lines of Credit (HELOC)
 Individuals with HELOCs only have an average 65 per cent equity in their homes
 HELOC prevalence is highest among middle age homeowners
 Equity takeouts amount to $26 billion annually, with most funds used for renovations ($9.4 billion), followed by investments ($5.0 billion)
 The average down payment for a home purchased in the last 12 months was 30%, up from 26% for homes purchased two years ago
 Among all borrowers, 63 per cent have fixed rate mortgages, 30 per cent have variable rate mortgages and 6 per cent have a combination of both
 Less than a quarter (22 per cent) of all borrowers have amortization periods longer than 25 years
 34 per cent of those who most recently renewed or renegotiated their mortgages did so before their term expired. The average time to pay off a mortgage is 7.4 years less than the original amortization
 200,000 homeowners paid off their mortgages in the last 12 months
 The average mortgage interest rate discount is 1.44 per cent for those who chose a five year fixed rate mortgage in the last twelve months with the average mortgage rate being 4.04%
 Of those who renewed their mortgages in the last twelve months, 65 per cent are paying lower rates than previously
 66 per cent of all mortgage borrowers can tolerate a monthly mortgage increase of $300 or more
 Among borrowers who took out a new mortgage in the last 12 months, 27% obtained it from a mortgage broker. Overall mortgage broker share stands at 23%
 Canadian appetite for home buying has returned to pre-recession levels, following a slide over the past three surveys. Almost 60 per cent respondents thought that now was a good time to buy
 Optimism is returning to the market with almost half (46 per cent) of those questioned saying that they expect prices to rise

For Sale

Commercial Building for Sale in Rimbey. Asking $225000. For video presentation visit www.rimbeyrealestate.ca.
Business is negotiable but not necessary. Rental income from apartments and Purolator. Additional large storage area as well in basement. Showroom measures just over 3000 sq ft.