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property

lines

OVER the past five
weeks I have attempt-
ed to demystify the
business of mortgage
borrowing.

This column concludes
the topic. As Pve stated over
and over, you, the borrower,
must learn what are the
night questions to ask, and
then be able to decipher the
answers. Your investment in
doing this work will be very
well rewarded. Alas, many
mortgage borrowers will fail
to do this, once again prov-
ing that you can lead a horse
to water...

Before we get to the
mortgage shopping list here
are a few definitions vou
may find helpful.

& Conventional Mortgage:
Funds advanced up to 75%
of appraised lending valuc.
Fa High Ratio Mortgage:
Funds advanced up to 95%
of appraised lending value
(residential only). Borrower
pays fee. Lender receives the
benefit.

@ Equitable (secondary)
Mortgages: A mortgage that
take a secondary or junior
position on tithe, The securi-
ty given is your right of
redemption nor the proper-
ty.

@ Variable Rate Mortgage:
Rather than a fixed interest
rate for the “cerm”™ of the
mortgage, the interest floats
at a predetermined rate
above the prime rate.
Borrower usually has the
right to lock in at a specifte

rate during the term.

@ Raverse Annu
Mortgage: An innate
loan in which the jender
makes pertadie payments ta
the borrower during the
term. At the end of the term
the borrower will have to
repay the balance owing by
refinencing of selling the
property. ts offered in
today’s market to semors
awainst the equity in their
home to provide additional
monthly income, Caution:
Accrued interest can rapidly
cat up all the equity. For
these ona fixed income that
does not meet their minimal
financial needs. this type ot
mortgage can be 2 real
blessing. Read the fine print
and be careful,

@ Blanket Mortgage: Asia
gular mortgage that uses
We OF More properties as
sceurity, Often one can
obtain very good rates and
contract terms with a “blan-
ket.” Also reduces costs of
mortgage tees and the tike.
@ Vendor Financing. The
vender (seller) uses his equi-
ty in his property ro grant a
mortgave to the buver.
Often the very best wav te
get financing. Very attractive
ina buver’s market where a
seller needs to sell.

@ Agreement For Sale: A
contract where the owner
agrees to sell the property to
a buyer. The buyer’s imterest
is registered in the Land
Title Office as a charge
against the seller’s certificate
of tithe. The contract pro
vides that the purchase price
wii be paid by installments
(vendor financing) and when
the full price is paid. the
Uric to the property is trans-
ferred to the bayer.

@ Your Self Dircered
RRSP. As A Financing
Tool: Regulation 4900-1 -J
of the Income Tax Act per-
mits you to use vour self

directed RRSP to lend

money senared bx a ord
gaye on wour home. To
quay, Fhe mortgage sour
RRSP srants must be on
Canadian rear estate and be
made through an insured
Naveonal Housing Act
approved lender. Using this
tood, vou can charge prevail
ing rates fo yourself. The
interest vou collect goes

ean deduct te interest Vou
pay te sour RRSP ine:

US a Invest At expense
Maas fenders will tell van
that this is nat werth dome
as the fees they wih charge
vou make it unteasble. Ts
this biased advice? In most
cases, ves. Using your RRSP
to finance investment prop

Friday, October 23. 1938 - Nortn Shore News - 54

miest successtub busmess
pur ations Tastes

banking
Personal bine ot Credit:
Based upon vour credit wer
thiness, vaii can reeene a
line of credit POU tron a
bank te use as voir like,
Interest rates caa be excel
dent. Depending upon vour
net worth, this type of oan

eeecosenvnecesoaeecseagvaeaeeae ned

sword only} or secured by a
GIC, Canada Savings Bond.
ques ina track vou own,

te

C
@ Inerest Only Loan:
Sumilir to above with no
paveints on principal ber
rowed. Monvaly payments
on earned interest.

@ Straight Note With

.

Ledwidae

back inte veur RRSP thus erty means vou enter inte

can be umsecured (vour See Workshevt page 62

Photo submit

Patch work

IT’S almost time for little ghosts and goblins to ros

Re/Max Crest Realty, has gotten into the spirit ‘of 3.
bours and clients this week.

Af
a

+ North Shore streets — and realtor Shirley Clarke, with

Syne detivered more than 1,209 pumpkins to her neigh-

USSR SENS MORE ITS ON AE Ts HO Ae as Bs eo

Feature Listing
4726 Marine Drive, W.V.

AT A GLANCE ...

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Bema e sce enenaeoeveses sceeenscesestseeaseses

LOT SIZE: 116 x 172

seems rcnvcenssacenesencecs

INTERIOR SIZE: 2250 SQ. FT.

peter ty Pear wee w ane re ere e near anes essseesaaesetene

NUMBER GF BEDROOMS: 5

Bene m eee meres nanos ere seseseeeessveseesrares

NUMBER SF FLOORS: 3

deen ccwereeneeracersenareceussresseseoeetrs

ASKING PRICE: $663,000

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OPEN HOUSE: Sunday 2 - 4pm

POrerererrrrrry

LISTING AGENT: Scampi Hirst &
Madeleine Phillippe,
623-5795, 925-7111

SPECIAL FEATURES: Ocean views, 1/3 acre,
south facing, French country charm

Hidden from Marine Drive is one of the original Caulfeiid
homes. This enchanting residence has wonderful ocean views
and sits on a 1/3 acre of park like grounds. in one of the most
sought after areas of West Vancouver, this warm and inviting
home has been lovingly updated with terra cotta tiles, french
duors, stone fireplace, fir floors and much more, to create an
ambiance for those looking for something very special. Take a
book and find comfort in

the solarium with its cozy

fireplace and views to

Lians Gate, sit in the

private garden and enjoy

the serene pond and

waterfall or take a short

walk to the beach. The

updating in this 5 Lo

bedroom, 3 bath home has Be tm . :
uniquely combined the old
with the new to create a
truly exciting place to live.

Madeleine Phillippe
Sutton Group Sentinel

ere a ee me NEN CS PAE AS SMS OO AE NEE PE A TT AE SNS