You probably have heard that there are changes to the mortgage rules that take effect January 1, 2018. Though, you might be confused on how these changes impact you. The most noticeable impact will be when you want to refinance your mortgage.

Starting January 1, 2018, when you decide that you want to refinance your mortgage you will have to qualify at a much higher interest rate. This higher qualifying rate, referred to as a stress test, is the greater of the five-year benchmark rate published by the Bank of Canada (currently 4.99%) OR the lender contractual mortgage rate plus 2.0%.

Let's look at an example and compare refinancing now versa refinancing after January 1, 2018:

Example:
                Bob and Mary have a $450,000 mortgage which they want to refinance and pay off some high-interest credit card debt of $45,000. Their house is worth $850,000, and their household income is $90,000.

In this example, after January 1, 2018, Bob and Mary will only qualify for a $420,000 mortgage amount. They will not be able to pay off their high-interest credit card debt by refinancing. They have a lot of equity in their home, but cannot access it through traditional lending. They will need to look for alternative means to access the equity.

It is essential for Bob and Mary to take advantage of this refinancing window now such that they can pay off their credit card debt and secure a new mortgage.

Are you thinking about refinancing your mortgage? Get your questions answered and start a conversation with Sean today.

Sean Stewart, Mortgage Agent
P: 905-427-9596
E: sean@ashbunmortgages.com
W: ashburnmortgages.com

GOOD FENCES MAKE GOOD NEIGHBOURS

A few years ago, I moved into a brand new house here in Whitby.  One of the reasons for the move was to find a good neighbourhood where there were plenty of children.  We struck the motherlode.  Between my house, my neighbours to the left, and the 2 houses behind us, there were 11 children.

While we never actually spoke about it, no one put up a fence.  We simply cut the grass to where we thought our lot ended plus one more foot.  It was like a park back there.  Children's games crossed over from our yard to the next without impediment.  To the kids, the entire area was their back yard.  Touch football, whiffle ball, snow forts and snow men all shared the communal yard.

All good things must come to an end.  One of the neighbours decided to get a pool; another a dog.  Fences were now a must.   A fence builder was called, prices obtained and we all shared in the cost of the fences that defined our lots.  It was simple.

The best advice I can give you is talk to your neighbour and keep talking until something is agreeable to you both.  The courts and lawyers are available but are expensive and often result in a permanent falling out with the neighbour, no matter what the outcome.  If worst comes to worst, simply build your fence entirely on your property and never mention it again.  Your stress level will go down and you will live longer.

Networking in Durham through the Durham Networking Association

Bloomtools Durham  and the DNA members are excited to launch the brand new website of the Durham Networking Association. 

The focus of the group is about business and community. We each represent a specific business category and meet twice per month, over lunch. No pressure for weekly referrals, filling guest quotas or paying fines. The group is about getting to know each other, doing business and referrals naturally follows. We are proud to say that many of the original Members are still Members today. Durham Networking is owned by its Members and we are not for profit. The Executive is formed to handle the business of DNA in the community.

Bloomtools Durham has been a member of the Durham Networking Association since November 2016. We are very excited about launching this new website and being able to promote the DNA and its members online.

The website, www.durhamnetworkingassociation.ca , features:

1. Member Directory where you can learn about each one of the members;

3. Custom Contact Forms where you can contact each member individually for their services;

5. Become a Member section highlighting all the open member categories.

To learn more about the Durham Networking Association or to come out to one of our events contact us today!  

Chris Downey

Bloomtools Durham

Web and Marketing Consultant