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Tuesday, July 23, 2013
Curbside Pick Up of Tree Debris in Waterloo Region Has to Fit Requirments
If you are dealing with tree debris after our recent storm, here is the Region of Waterloo Guideline Infographic for curbside pick up requirements....
Cleaning Your Grill With Aluminum Foil - quick and easy when you don't have time or a brush!
The weekend is here - start grilling! But first you've got to clean the BBQ. Check out this great tip to clean your grill without any effort....
Tips to Help Save a Down Payment to Buy a Home...
Lately, it seems like every time I get together with friends the topic of buying a home comes up. This makes sense since a majority of my friends are either engaged, newlyweds, or new parents…all major lifestyle changes. Almost every conversation someone says
Traditionally, home buyers need a down payment between 10 percent and 20 percent of the purchase price. However, backed by Canadian Housing and Mortgage Corporation mortgage insurance, buyers can purchase a home with as little as a 5% down payment - that's only $10,000 on a $200,000 condo.
These days, it’s rare to get a mortgage without contributing some of your own cash. Regardless of the percentage that one is considering putting down here are some tips to save up for the down payment.
1. Decide How Much House You Can Afford
The first step is to set your savings goal. Research home prices and determine how much you can afford. Calculators can be found on most bank websites and on the CMHC site at http://cmhc.ca/
2. Set Up a Savings Plan
You’ll also need to create a savings plan and set a deadline for reaching your goal. One method is to find the difference between your current housing costs and your projected monthly mortgage payment, and put that much away each month.
This system has the advantage of allowing you to decide if you really earn enough to afford the home you want.
Open a separate savings account for your down payment to minimize the temptation to tap the money for other needs. Also setting up automatic transfers to your new account will lessen the chance you’ll spend the money elsewhere.
3. Pare Back Expenses and Raise Cash
Review your spending habits and determine where you can find extra cash. If you’re determined to buy a house as soon as possible, try living like a tightwad. Start by putting away the credit cards. Then cut out cable TV, switch to a less expensive cell phone plan and reexamine other aspects of your spending until you’ve pared back to just necessities.
Use coupons at the grocery store and stay away from the mall. Hold a garage sale or sell unused items online. There are dozens of books and blogs you can turn to for frugal living advice that can help accelerate your savings.
4. Borrow From Your RSP
Money can be borrowed tax exempt from a retirement savings plan for home purchases, up to $25,000. Contact me for more details.
5. Find Out if You Qualify for Assistance
If you’re hoping to take advantage of the down market but haven’t got that much saved, you may be able to find help through various programs.
The Region of Waterloo offers assistance for down payments to qualified purchasers...contact me for more details.
Last, but certainly not least, stay focused. Once you really commit to this goal stay with it. The second you are handed the new keys to your home it will all be worth it!
It makes me wonder, how many people are deterred because they honestly don’t believe they can afford the down payment? A common misconception seems to be the belief that one can only buy a home if they have 20% of the purchase prices which just isn’t the case.“I can’t afford the down payment of purchasing a home.”
Traditionally, home buyers need a down payment between 10 percent and 20 percent of the purchase price. However, backed by Canadian Housing and Mortgage Corporation mortgage insurance, buyers can purchase a home with as little as a 5% down payment - that's only $10,000 on a $200,000 condo.
These days, it’s rare to get a mortgage without contributing some of your own cash. Regardless of the percentage that one is considering putting down here are some tips to save up for the down payment.
1. Decide How Much House You Can Afford
The first step is to set your savings goal. Research home prices and determine how much you can afford. Calculators can be found on most bank websites and on the CMHC site at http://cmhc.ca/
2. Set Up a Savings Plan
You’ll also need to create a savings plan and set a deadline for reaching your goal. One method is to find the difference between your current housing costs and your projected monthly mortgage payment, and put that much away each month.
This system has the advantage of allowing you to decide if you really earn enough to afford the home you want.
Open a separate savings account for your down payment to minimize the temptation to tap the money for other needs. Also setting up automatic transfers to your new account will lessen the chance you’ll spend the money elsewhere.
3. Pare Back Expenses and Raise Cash
Review your spending habits and determine where you can find extra cash. If you’re determined to buy a house as soon as possible, try living like a tightwad. Start by putting away the credit cards. Then cut out cable TV, switch to a less expensive cell phone plan and reexamine other aspects of your spending until you’ve pared back to just necessities.
Use coupons at the grocery store and stay away from the mall. Hold a garage sale or sell unused items online. There are dozens of books and blogs you can turn to for frugal living advice that can help accelerate your savings.
4. Borrow From Your RSP
Money can be borrowed tax exempt from a retirement savings plan for home purchases, up to $25,000. Contact me for more details.
5. Find Out if You Qualify for Assistance
If you’re hoping to take advantage of the down market but haven’t got that much saved, you may be able to find help through various programs.
The Region of Waterloo offers assistance for down payments to qualified purchasers...contact me for more details.
Last, but certainly not least, stay focused. Once you really commit to this goal stay with it. The second you are handed the new keys to your home it will all be worth it!
Sunday, July 21, 2013
Mortgage Rates Slowly Rising - Variable vs. Fixed?
With fixed rates up around 0.60% over the last 4 weeks (currently at around 3.49%.. there are some lower rates but these come with conditions so we are using the more widely available rate) we must again take a look at Variable rates. Today’s best Variable rate product is sitting at around Prime less 0.40% … there’s even a few promotional Variables at Prime less 0.50% for qualified applicants. But for this article we will stick with Prime less 0.40%. That’s 2.60% today. We are almost at that 1.00% spread that I like to see.
Two years ago, the best Variable rate was at Prime less 0.75% with the option to lock into the BEST discounted fixed rate at any time (this option is important, don’t ever settle for a variable product that doesn’t have this clause). And 5 years ago, we had Variable rate products as low at Prime less 0.90%.
VARIABLE RATE HISTORY
Historically, Variable rates have easily outperformed Fixed rate mortgage products… The savings has been between 1.00% and 3.00% per year. That’s an incredible savings… Yet, 5 year fixed rates have been the most popular mortgage products for as long as I can remember… The BANKS love fixed rate products for several reasons… they have you trapped for 5 yrs , if you do leave or pay the mortgage early you get hit with an inflated penalty calculation, It’s also no coincidence that 5 yr fixed rate mortgages are the most profitable for the BANKS.
Putting all that aside, during the last 2 yrs, and only during the last 2 yrs, we almost had no choice but to take a 5 yr fixed rate product. It was around 2 yrs ago that the BANKS stopped offering competitively priced Variable rate mortgages.. Pricing increased to Prime less 0.10% and even Prime. And 5 yr fixed rates were hovering at around the 3.00% mark..
A CLOSER LOOK AT THE STATS
Another interesting fact… The average Bank Prime rate over the last 10 years has been 4.00%…. An educated guess would be to say the average discounted Variable rate product has been at Prime less 0.75%… that gives us an average rate 3.25%. The average posted 5 yr fixed rate during that time has been 6.07%. It’s hard to calculate what the true average 5 yr discounted mortgage rate is, as discounts have increased significantly during that time. But an educated guess would be an average discount of 1.30%… so let’s say the average 5 yr fixed rate is 4.77%.
That’s an average annual savings of around 1.52% per year on your mortgage during the last 10 years. Yet the Federal govt would rather have everyone locked into long term Fixed rate mortgages so that you don’t suffer a payment shock. “The road to hell is paved with good intentions”… For some reason, that old saying comes to mind. Historically, fixing your rate is like buying insurance… Sure, you’re protected but it comes at a hefty price. So how about the next 10 years? I don’t have a crystal ball but let’s give it a try….
FIXED VS. VARIABLE IN THE NEXT 5 YEARS
Let’s do a ‘what if’ scenario… Let’s use a $250,000 mortgage… 5 yr fixed 3.49% and compare it with a Variable rate of Prime less 0.50% (2.50%). Payments would be $1132/mth vs $1246/mth. That’s a $114/mth savings. Now let’s increase our Variable payment to $1246/mth to match the 5 yr fixed rate…. And let’s say Prime goes up 0.50% every year for the next 5 yrs (using this to show a 2.50% increase in Prime over the next 5 years)…. The results are interesting…
After 5 years, the Variable rate borrower would be down by around $562. Remember, this is based on the assumption that Prime rate will increase by 0.50% every year for the next 5 years… Many experts don’t think that will happen. Many believe Prime will increase but more slowly. This illustration shows that Variable rate is once again proving to be a product worth considering.
We haven’t factored in the benefits of a set prepayment penalty… Variable rate is set at 3 months interest compared with Fixed rates that carry a 3 mth interest penalty or Interest Rate Differential (IRD)… And we’ve all seen BANK IRD calculations costing borrowers $10,000, $20,000 and more. And with the average Canadian changing mortgages ever 3 years, this will actually be a good option for those with uncertain future plans or for those borrowers that are comfortable with possible payment fluctuations.
Variable Rate is on the radar, once again. There isn’t ‘one size fits all’ when it comes to mortgages. We all have different risk tolerances, goals, plans and needs. It’s hard to say Variable is right for you without getting a proper analysis and product comparison. Speak to your Mortgage Broker to get professional advice.
July 9, 2013 — Steve Garganis
DIY Houshold Products from Shaving Cream to Bug Spray....
1. DIY Dishwashing Detergent
1 cup borax, 1 cup washing soda (or baking soda will work, as well), 1/2 cup citric acid, and 1/2 cup of kosher salt as a scrubbing agent. Use vinegar as your rinsing agent.
Source: ablossominglife.com
2. DIY Shaving Cream
Shea butter, coconut oil, jojoba oil, rosemary oil, and peppermint oil are the ingredients you’ll need to make this natural shaving cream. Get the full directions here.
Source: foodformyfamily.com
3. DIY Bug Spray
Add distilled water, witch hazel, and citronella oil to a spray bottle. Get the full directions here.
Source: littlestonehouse.com
5. DIY Foaming Hand Wash
The secret is in the pump, not the soap, so never throw out an empty foam soap dispenser. Refill it with 1 teaspoon of liquid soap or dish washing liquid and fill the rest with water.
Source: chiotsrun.com
6. DIY Makeup Removing Wipes
Make a much cheaper version with coconut oil and paper towels. Get the directions here. Be sure to add a couple drops of tea tree oil to prevent mold from growing on them.
Source: onegoodthingbyjillee.com
7. DIY Plant Insecticide
It’s completely earth-friendly and chemical-free. Get the directions here using garlic and red pepper flakes.
Source: sweetpeasandpumpkins.com
8. DIY Polymer Clay
Get the directions here. All the ingredients are common household items.
Source: thenewnew.blogspot.com
9. DIY Mod Podge
All you need is Elmer’s glue and water. Get the full directions here.
Source: minieco.co.uk
10. DIY Chalkboard Paint
Mix 1 cup of latex house paint or acrylic craft paint with 1 tablespoon of non-sanded tile grout. Mix together until there are no lumps.
Source: salttree.net
11. DIY Lotion Bars
You’ll need beeswax, almond oil, and coconut oil. Get the full directions here.
Source: allfortheeveryday.com
13. DIY Bath Salts
You’ll need epsom salts, which are awesome for detoxifying baths. Get the full directions here.
Source: utry.it
14. DIY Mouthwash
You’ll need aloe vera juice, water, witch hazel, baking soda, and peppermint essential oil. It should last for up to 2 weeks. Full directions here.
Source: thedabblist.com
15. DIY Laundry Detergent
Laundry detergent is SO expensive these days. Save money with this easy recipe.
Source: lizmarieblog.com
16. DIY Wrinkle Remover
Pour 1/4 cup of vinegar, 1/4 cup of water, and 3 tablespoons of liquid fabric softener into a spray bottle. Spray and smooth out wrinkles.
Source: inspiredbyfamilymag.com
17. DIY Stain Remover
In a spray bottle, add 1 part hydrogen peroxide, 1 part baking soda, and 2 parts water.
Source: imperfecthomemaking.com
18. DIY Hairspray
You’ll need hot water, sugar, and essential oils. Get the directions here.
Source: ablossominglife.com
19. DIY Windex
In a spray bottle, mix together 1 cup rubbing (isopropyl) alcohol, 1 cup water, and 1 tablespoon white vinegar.
Source: thedabblist.com
20. DIY Hair Conditioner
Mix together 1 can of coconut milk, 1 tablespoon of honey, and 1 tablespoon of olive oil.
21. DIY Spray Fabric Starch
In a spray bottle, mix together 1 cup water and 2 teaspoons of cornstarch.
Source: craftingagreenworld.com
22. DIY Eye Makeup Remover
Mix together 1 teaspoon of coconut oil, 1/2 tsp tear-free baby shampoo, and water.
Source: feathersfreckles.blogspot.com
23. DIY Makeup Brush Cleaner
Squeaky clean DIY brush cleaner: 1/2 olive oil, 1/2 dishwasher soap. Mix it together and voila!
Source: jiggityjog.blogspot.com
24. DIY Dog Shampoo
Get the full directions and ingredients list here.
Source: gimmesomestyleblog.com
25. DIY Deodorant
This supposedly works better (but applies differently because it creates a cream you have to rub onto your armpits) than heavy-duty store-bought deodorant. Get the directions here.
Source: sewgreen.blogspot.com
26. DIY Glue
All you need is flour, sugar, water, and white vinegar. Get the full directions here.
Source: mrsamberapple.com
28. DIY Bubble Bath
Mix together 1 cup of clear, unscented dish soap or castile soap, 2/3 cup liquid glycerin, 1/4 cup water, and 2–3 drops essential oil.
Source: blog.freepeople.com
29. DIY Febreze
You’ll need liquid fabric softener, baking soda, and warm tap water. Get the directions here.
Source: coffeelightandsweet.com
30. DIY Drano
Mix together 1 cup of baking soda, 1 cup of salt and 1/4 cup of cream of tartar. Measure about a quarter cup of the mixed powder and pour into your clogged drain. Pour two cups of boiling water into the drain, and let stand for about an hour, then run fresh water from the tap.
Source: abhomeinteriors.com
31. DIY Wood Polish
Mix 2 parts oil (preferably linseed oil or olive oil) with one part lemon juice. Apply and polish with a soft cloth. Buff with beeswax and a microfiber cloth for added shine.
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