alk of the booming real estate market has been
ail around us in receni days. Behind the
dazzling tales of profits to be reaped and the second
guessing game of determining when to buy or sell,
are the nuts and bolts issues of securing a mortgage.
Knowing what factors your mortgage officer may
consider when addressing your mortgage application
and understanding the basic variables and principles
involved will help you ensure that this most important
of personal investments is based on sound and
informed decisions.

In simplest terms, a mortgage may be regarded as
a large loan secured by a house or property.

Types of mortgages vary but ihe two basic types
are open and closed (with penalty). In an open
sportgage arrangement a borrower is required to
make regular payments, but may also make lump

Check out and compare
all the features of our
Credit Union Mortgages

sum payments or even repay the full mortgage at
any time without having to pay a pre-payment
penalty. A closed mortgage sees the borrower
making regular payments but in this case additional
payments are usually not permitted without paying
a pre-payment penalty, (of in some cases as much
as six months’ interest).

oral ae

Know your mortgage facts

To qualify for a mortgage a potential borrower
must provide a minimum 10 per centdown payment
for a high-ratio mortgage or up to 25 per cent fora
conventional mortgage; prove the ability to repay
the debt; and be able to show a good past credit or
payment history. The mortgage officer will also
consider the borrower's job stability and assess the
security value in the property to be purchased.

When processing a mortgage application a
mortgage officer looks for basic information and
documentation including:

* An interim agreement (offer to purchase)

* A personal net worth statement (usually
completed by the mortgage officer for the borrower)
* Income verification (for example T-4 slips, a
letter from an employer, financial statements from
self-employed borrowers)

* Proof of down payment

Once the documentation is in place the mortgage
officer will complete a borrower's credit check and
then present the application to an approving officer.
The property is then appraised and a commitment
letter is issued to the applicant. The contract is
passed on to a lawyer for completion and the
documents are signed by the borrower.

Finally, the lawyer requests funds from the
mortgage company and the mortgage is advanced.

Mortgage application fees may be free-of-charge
or cost up to $100. Appraisal fees may vary from
$100 to $250. Anticipate the property transfer tax to
be one per centof the first $200,000 and two percent
of the amountover $200,000. The price of legal fees
also varies. The best bet is to obtain several quotes.
Be sure to ask for the cost of mortgage fees,
Continued on page 4

New C.E.O. looks
to the future

our Board of Direciors are pleased to invoduce your new
Chief Executive Officer, P.D, (Phil) Keller, who joined
North Shore Credit Union on April 3, 1989.

Mr. Keller brings with him over 24 years of credit union and
management experience. He has held senior management
positions with credit unions and the provincial credit union
centrals in Alberta, Ontario and Saskatchewan. Mr. Keller has
also been invoived in national, regional and provincial task
forces, commitiees and development teams, as well as providing
extensive community, service and church leadership.

Mr. Kelier has also concentrated on self-developrnent beyond
his earlier education toinclude Business Administration from the
Harvard School of Business; senior executive development
programs from the Banff School of Management and Niagara
Institute, as well as numerous development programs offered by
credit unions, industry and educational organizations (e.g.
“Towards Excellence” and “Front Line Leadership”).

Phil and his wife Anne have three lovely daughters, Cindy, the
oldest is married and living in Calgary. Cindy and her husband,
Earl, recently presented Phil and Anne with their first grandchild,
Bradley Christopher. Their second daughter Cheryl also lives in
Calgary and works for the large credit union there. Their

Continued on page 2

INSIDE

° Annual Meeting held ~ | : |

: ° S.LN. regulations.

g Education suppor offered |

NORTH SHORE CREDIT UNION

Foilea inyour Ce ommunily

27 - Sanday, May 21, 1989 ~ North Shore News