For the first’ time since i began writing .this column * semainder.. if ‘there-is suf. : . “ficient equity remaining in. keep their home, enjoying , the house, the borrower can " greatest. value ‘ol a all is s they. its comforts and don't incur the costs and dislocations of moving and renting another - place to live. also renew the Independent . Income Mortgage © for another term. , Let's” suppose an older — Asi said, the Independent couple. ‘owned an $80,000 Income Mortgage has Briefly here’s how it works. The Independent Income Mortgage is a one-year mortgage renewable every year for up to ten. years. Each year, the mortgagor is paid a “lump sum” amount of money agreed to in advance. Interest is deducted at source. Every year, the size of the payment is increased so that the net annual sum received remains proximately the same — even though the size of interest payments increases, based on the amount of principal outstanding. The interest rate on an Independent Income Mortgage is guaranteed to be no higher than one- quarter percent above the mean average offered by Canada’s three largest trust companies on a one-year term mortgage. The maximum amount that can be loaned is an annual amount which, in our estimate, will not in ten years’ time exceed 75 per cent of the present value of a particular house. the In- Income Mor- After -ten years, dependent tgage can be converted into a regular first mortgage, or the mortgagor can sell his property, ‘gage repay the mor- and keep. the JOGGING WITH A FRIEND tm Cates Park ip a great way to exercise your dog as well. ap- - some. T'm going to break a cardinal home. . What would be ‘the important ~ social —-con- rule. I'm going to talk about: impact? sequences. We believe that a product/service. that. eed oe ‘it will enable setiior citizens : , my company. Cc “They @eeie-th ‘to stay in their own ‘homes Poo ILAN RANCHER reason for breaking the rule extra’ $3,000 thy nent much longer and that it will Pus a tot of oe oOE SAUNA Almost ’ Lovety._ 3. “gape NO RANCHER condition. _ is thatthe product hasmajor j 1 rest tates. were 11 per therefore reduce the 2400 sq.ft fully finished on two levels. 4bdrms, + Remodelied kitchen, mountain view, large sunny social implications in both cent on balance over the 10 demand for publicly assisted -. 2 fireplaces, sliding doors to decks and patios. ‘bot 81,900. MARY PORTER 689-3622 68 21. ” the short and long term. senior citizen’s housin; '. LARS ANDERSEN 3260916, 980-8311. ; a years, they would ac- S _cumulate ai $59,100 first The product is called the mortgage at the end of the — In 1 facts j in a more general Independent Income 10-year period. This amount sense, this form of financing Mortgage. In short, ‘a would include all costs has the potential’ for reverse interest mortgage. It including legal fees. alleviating a great deal of allows people,. particularly ~~ pressure on the public purse, those who are retired and They receive $30,000 over simply by allowing senior are on fixed incomes to the ten-year period. citizens access to their | ; utilize a portion of the equity However, these payments. capital, . an in their homes to supplement are really worth more to — _— theirincomes. them than in comparison:to - ~- eo . ° ~~ the —-$59, 100° Mortgage “One” look at" the obligation because _ this amount is due after ten years of inflation while the $3,000 annual payments begin now. “demographics is enough to tell you how important it is to find private alternatives to public spending. People over 65 . currently account for about 8.5 per cent of the population." By the year 751 LYNN VALLEY RD. 69,500" Neat as a pin, 2 bdrm up & 2 dn, cozy wood . buming fireplace, lots of fruit trees, fenced in. backyard & parking space galore, 2 entrances. 2000, that percentage will Drive by and give me a call SKELLY FATAFEH] rise to 12. There are now 669-3022BB about 2.4 million senior ~* 2. citizens in Canada. In 20 (im years, there will be 3.8 million. These figures dramatize the reason why we are Suddenly becoming concerned about our public and private | pension schemes. - YOUR FAMILY INCREASING?. : Try this, 4 bdrm home with. den, ‘plus basement and. view. in> Windsor Park. 70's. LEWIS -- _ But this comparison is GRAHAM 988-6781, 980-8311. incomplete. Because they still own their house, it is probable — though by no means certain — that after .ten years, the property will be worth more, Assume a 3.5 per cent average annual increase in value (a conservative estimate because in many major urban centres, from 1968 to 1978, residential property rose at an average annual compound rate of more than nine per cent). The $80,000 house would then increase in value by $32,800. Using these figures the Independent Mortgage would show no cost at all. The gain would actually be $4,000, assuming the house was sold for its new, higher value in 10 years. By our calculation, today’s seniors hold approximately 25 billion dollars in Canada in single family or duplex ‘accommodation of which more than 80 per cent is owned free and clear. OPEN TODAY, 1:30 - 4:30 1650 Draycott at Hoskins Rd. Super 1850 sq.ft. contemporary family home. Parklike setting on quiet cul-de-sac. All spacious rooms including ‘ Ige family & 2% sets of pimbg. Quality built, : - central location. HARRY PHILLIPS 922-0332, Though it is definitely not RAY WAGHORN 988-3995, OFFICE 980-8311. for everyone, reverse in- * come mortgages can do much to financially assist retired people, particularly those on fixed incomes. After all retirement should include a lengthy period of enjoying the house and garden that we spend half a lifetime’ paying for, without having to become dependent upon the public purse. COZY CUTE BUNGALOW Perfect for two or even three. Don't let this outside fool you, because the inside is a real surprise. To view please call PAT KIRKHAM 986-2951, or ERIKA STAPELMANN 986-2533, OFFICE 980-8311. If mortgage interest rates averaged 9.5 per cent on balance over the 10 years and all other factors remain the same, the outstanding obligation would be $54,700, the value of payments received would be $30,500 and the increase on the ae al o house would be $32,800. The product is being ro, That leaves the couple witha tested in Toronto and based SPECIALLY BUILT FOR OWNERS 7 OPEN APRIL 8 2-4 net gain of $8,600. on consumer acceptance Yes, this Spanish mansion with spacious private 1098 Premier St. (At Coachhouse). Real nice 3 patio off Ige master bdrm with 4 pc enste., 3 Lge bdrms upstairs, 3 full baths, sunken liv. rm, f/pl, tam. mm, off kitchen, din rm, huge rec rm with wet bar & tantastic craftsmanship in big kitchen. So ele SKELL _ there, we will begin offering it nationally perhaps in three months. level townhouse with pool & playground, 3 bdrms,. 1% baths, fin rec mm, taundry, Aa ee (replace and sliding door to patio. LARS DERSEN 926-0916, 980-8311. Of course, these are only projections. However, the t that this home is only for executives. FATAFEH! 669-3022 BB 48. Don’t Miss These LOWER DELBROOK Spacious condo, excetient layout, F P 41,900 LowD.P. LEWIS GRAHM 088-6761, 980-8311. ° CITY VIEW Sunny spacioua, 1 bdrm condo on a quiet street. It features a deluxe kitchen with dishwasher & Saaned Must sel. ERIKA STAPLELMANN 986-2533, or PAT KIRKHAM 986-2951, OF FICE 80-6311. COMFORT & CONVENIENCE Beautitully decorated, 2 bdrm top floor corner suite Snuggle up to the wood buming fireplace while admiring the view of Grouse Mtn Elevator, intercom & underground parking. MARG ROBERTSON 988-1612, or 960-8311. ' MILL WORKING AND GLASS Co. Long estadDlished excellent potential complete 2 buildings and living quarters F P 385,000. LEWIS GRAHAM 988-6781, 980-6311. (Ells worth Dickson photo) .