WHEN applying tor a mortgage, mest people will provide the lender with all the personal and financial information requested, then apprehensively wait to hear if they have been approved. Finally, many anxious days later the call comes. Yes, your mort- gage has been approved. Oh joy. The lender will then request vour presence with their lawyer to go over and sign “their” mortgage document. Upon arrival at “their” lawyer's oftice vou will be given a J 0- pound document. written in a dan: guage similar to Sanskrit and vou are asked to read ir (while the tawyer impatiently taps his pen}, ask any questions, then sign it. Most people are se happy to get the mortgage and not wanting to appear unintormed, ask few, if any questions. They sign the document then go home and immediately get sick. This is noc the wav to arrange a mortgage. When applying fora mortgage always remember thar the lender is not doing you any special favour in granting you a mortgage (although thar is exactly the way you will probably be treated). The lender is making a wise invesement of their funds to a per- son they believe is a very accept- able risk. They are secured by a property they will own if you fail to niake the mortgage payments and in the case of an insured mortgage are insured against loss. Additionally, vou are signing a contract, written by their lawyer, with their best interests in mind. Who is looking after you? You are. The time ro negotiate the mortgage terms is when vou make a formal mortgage apphica- ton, Spell out “in writing” exactly what itis vou want (wrthin rea- son} in the mortgage document. Usually, vou sik get what vou ask for, If vou do not, try another lender. Do not be intini dated! Note: Do not sign any documents with any lender until such time as vou have shopped around and made vour final decision. Then make vour offer to the lender in written form including the clauses vou want vie mortgage document to include. Remember, vou are offering the iender a very good investment secured bv vour personal covenant plus the property itself. Bo nor go inon bended knee toa lender, errr, The tollowing are seme mort gave rerms and conditions vou may wish to negotiate. @ Prepayment Privilege -- The rizht to repay a fixed amount or percentage of the mortgage princt- pal at specific times. You may not think vou want this clause now, vet not including it will prevent you from doing so if the contract does not include this provision, Being able to pay down any amount during the term of the mortgage will save vou thousands of dollars. & Prepayment Penalty ~~ There may be a penalty for prepayment ofa mortgage. These prepayment penalties vary from lender to lender. Know what that penaity is before accepting the mortgage. The consequences of not knowing what your prepayment penalty will amount to could be devastating when you decide to sell. property lines eeaeoceseoszse eceseeveseeveeeccesseesseoveneovecnvzseeceeoeneeeeeeseued Knee @ Late Charge — Sometimes events occur where vour monthly payment is late duc te unforeseen circumstances, Should this happen, what, if any, penalty wall the lender charge vo Some lenders vill charge vou a full month's interest for a 24 hour late payment. Negotiate this going inte the CONTACT. @ Assumability — Of course vou are not thinking of selling vour property just as vou are buving it. However, circumstances change. Friday. October 16, 1998 - North Snore News - 51 You may wish to sell and an “assumability” clase wilt allow a Purchaser to assume vour mort- sage rather than having to wo and Ngee anew ore with all its assoelated costs. Normally, the lender will have no problem in giving vou this right, however, they will demand that the person assuming your mortwage is qualified to do so. Note: Should vou decide to sell in the future and the buyer assumes vour Mortwage ensure that the lender gives vou a “letter of discharge.” This means vou are no longer rigage responsible for the payments on this contract. Hveu do nor get this discharge and the buver woes inte default edender could come atter vou tor Urears. B Duc On Sale Clause --- Unless vou have an “assumability clause” the “due on sales” clatise means that the entire outstanding amount of the mortgaue is duc and payable upon the selling of your property, B Roll Over Clause — ‘This clause allows for the automatic renewal See Mortgage page &9 NEWS photo Mike Wakefield Enerey excellence NORTH Vancouver City Mayor Jack Loucks recently accepted an award of excellence for the raunici- pality from the Energy Aware Committee, whose members include BC Hydro, BC Gas and the Unien of BC Municipalities. The award came for the city’s integration of energy planning into its redevelop- ment of Lower Lonsdale. ADDRESS: 290 Kelvin Grove Way, Lions Bay Peer erie e eee rere ricer rece eerie rss) LOT SIZE: 60W x 1910 DOH O veneer enenr rene nseesenee Dancererseereee INTERIOR SIZE: 4812 SQ. FT. Cem reece ewww wa seerscsson se rasensocreese nt NUMBER OF BEDROOMS: 6 wocees woweroere avons NUMBER OF FLOORS: 3 ASKING PRICE: $980,000 290 Kelvin Grove Way, Lions Bay, B.C. Almost 5000 sq. ft. of luxurious living. This very bright (5 skylights) contemporary has steel frame construction and radiant in-floar hot water heat, an impressive foyer with elegant staircase to gracious living area. Gourmat kiichen has solid beechwood cabinets and top-of-the-line appliances. Huge family room off kitchen with gas fireplace. Large dining room with a wet bar. Grand piano sized living room featuring a two sided gas fireplace. Step out to a 1000-sq. ft. slate tile deck offering unbelievable views of Howe Sound. This home has six bedrooms {two fully ensuite) and two gaines/recreation rooms (each capable of accommodating a championship billiard table). Quality carpeting, walnut hardwood floors and over 3000 sq. ft. of imported slate and ceramic tiies. Pee cere w ere ene seerecere casa seresvecsesenees OPEN HOUSE: Sunday 2 - 4pm Coe reeeneseesenenns ome oer aoneesereeaene LISTING AGENT: Rand R. Gatzke, 984-9711 Gatzke Prudentiai Sussex mn} q