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Summer 2007

                                       &                     MORTGAGE

                                       The lowdown on
                                       “no-down”mortgages


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                                       These borrowing solutions can help you achieve your dreams
                                       of homeownership sooner than you think.
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Jane Doe, Mortgage Broker
Mortgage Solutions inc.
Suite 1200, 123 Anywhere Street
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                                               utting off your home search
                                               because you don’t have a down
                                               payment saved? One of the newer
                                       mortgage options may be the answer.
                                       So-called“zero-down”mortgages
                                                                                       income to make the higher payments.
                                                                                          You will also need to have sufficient
                                                                                       cash to cover closing costs, which are
                                                                                       usually estimated between 1.5% and 4%
                                                                                       of the house price.
Toronto, ON M4R IB2                    eliminate the need for a down payment,
Telephone : (416) 288-7979             making it easier to get financing.              The right choice for you?
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Fax :         (416) 288-3289               On a $200,000 home, a down payment          Zero-down mortgages are particularly
Email :       info@solutions.ca        of just 5% is a hefty $10,000. If you’re just   helpful for people who live in areas with
                                       starting out, you may find it hard to come      high home prices, where the minimum
                                       up with this amount all at once.                down payment can take many years to
Need mortgage financing?                                                               accumulate, and for people who have
We can help.                           An innovative answer                            excellent earning prospects but are just
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• Canada’s leading lenders compete     With a zero-down mortgage, you borrow           launching their career.
  for your mortgage                    100% of the purchase price. Although               If you have a healthy monthly income
• Absolutely no charge to you O.A.C.   your regular mortgage payments will be          and good cash flow, and you want to get
• Free consultation                    higher and you’ll pay more interest over        into the housing market now to start
• No obligation                        the long term, this solution saves you          building equity, this could be a good
                                       from having to put together such a large        choice for you.
                                       lump sum. Also keep in mind, however,
                                       that you’ll need to purchase mortgage           The value of professional advice
                                       default insurance, further increasing your      The zero-down mortgage is just one of
                                       monthly payments.                               many strategies that can help you reach
                                          In order to be approved for a zero           your homeownership goal. Give us a
                                       down payment mortgage by the lender,            call to discuss your particular situation
                                       you’ll need to have an excellent credit         and explore the options that may be
                                       history and proof of sufficient monthly         right for you.



                                                              INSIDE
                                                              2 Protecting 3 Step up
                                                                against      your home’s 3 Creditgive up
                                                                                           Don’t
                                                                                                 issues?

                                                                   title fraud            curb appeal              on a home
      How to protect yourself
                         against title                                          fraud



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       ou may have heard about some of the recent high-profile     theirs. Home purchasers can also fall prey if they buy a home
       cases involving title fraud (also known as home fraud or    that’s being sold fraudulently.
       mortgage fraud). While this problem affects a very small




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percentage of homeowners, it’s devastating to its victims.
   To keep your identity and your home safe, educate yourself
about the issue and take a few simple precautions.

How title fraud works
Title fraud usually involves forgery or identity theft. It often
follows one of two patterns:
   n The perpetrator forges documents to transfer your prop-
                                                                   Protecting your good name
                                                                   A little common sense will go a long way toward protecting
                                                                   you. Following these everyday precautions can help protect
                                                                   your identity:
                                                                      n Share personal identifiers such as social insurance, driver’s
                                                                   license and health card numbers only with authorized agencies.
                                                                   Never give this information out over the phone.
                                                                      n Always collect your mail promptly and report missing bills
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erty into his or her name, forges a discharge of the existing      or credit card statements. Obtain a credit report regularly and
mortgage, and then obtains a new mortgage or sells your            watch for suspicious entries.
property to an unwitting buyer.                                       n Never throw out paid bills, statements, or anything that
   n The perpetrator uses false identification to impersonate      contains confidential information without shredding it first.
you and borrows money against your property.                          In addition, when purchasing a home, always work with a
   In both situations, the fraudster takes off with the funds,     qualified real estate agent, lawyer, and mortgage broker. Check
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leaving the true property owner to deal with the potential loss    the accuracy of all paperwork and make sure you understand
of his or her home. Victimized homeowners can incur huge           what you are signing.
legal bills trying to win back ownership of what is rightfully        Finally, if you are a homeowner, or if you buy a home in
                                                                   the future, consider purchasing title insurance. In fact, many
                                                                   lenders now insist on a homebuyer purchasing title insurance.
               Mortgage AB C s
                                                                   The role of title insurance
               Helping you be an                                   Although title insurance can’t stop fraud from taking place, it
               educated homeowner                                  can protect you from the associated financial loss. It covers such
                                                                   issues as encroachments onto an adjoining property, incorrect
n Refinancing                                                      lot surveys, unpaid taxes by a previous owner, and errors in
Renegotiating your existing mortgage agreement, either             official public records. Perhaps most important, it covers the
                                                                   legal expenses you incur if you should fall victim to home fraud.
to increase the principal or to repay the mortgage in full.
                                                                       Obtaining title insurance is easy and relatively inexpensive.
n Second mortgage                                                  Many real estate lawyers keep the necessary paperwork on
A loan secured by property that is secondary to an existing        hand. The one-time premium is typically less than $400 for a
mortgage on that property.                                         house worth up to $500,000, and the coverage is valid for as
                                                                   long as you own the home.
n Weekly accelerated payments                                          You may find the relatively small one-time cost is a worth-
Mortgage payments that are one quarter of the normal               while investment for the protection — and peace of mind —
monthly payment. Accelerated payments reduce the                   it brings.
mortgage principal more quickly, because in some                       If you have questions about this or any other topic, please
                                                                   give us a call. We’re here to provide advice through all aspects
months you’ll be making five payments instead of four.
                                                                   of the homebuying process to help ensure your safety.
2   SUMMER 2007
9 ways
          to step up
curb appeal
Help give family — and potential buyers — a
warmer welcome with these outside renos.


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      xterior renovations have many practical advan-
      tages and can boost your home’s curb appeal
      dramatically. Maybe that’s why, according to the
Canada Mortgage and Housing Corporation, 39% of




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Canadians who renovated last year focused on
improving the outside of their homes.
  Here are some exterior projects to consider.
   1. Siding. This long-term investment turns tired
exteriors to terrific. Tip: Go neutral to expand paint
colour options.
   2. Roof and eavestroughs. Replacing a worn-out roof
protects your home while sprucing up the exterior. Tip: Plan
                                                                      up a boxy front yard. Tip: Select plants and materials for year-
                                                                      round green and overall structure.
                                                                         6. Driveway and walk. Repairing asphalt and concrete
                                                                      makes paths neater and safer. Tip: If your budget allows,
                                                                      replace with cozy and traditional stone or brick.
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your house’s overall look before choosing a shingle colour.              7. Porches. A pressure wash and stain or a fresh coat of
  3. Windows and doors. New windows and doors give your               paint can do wonders. Tip: Warm, sophisticated neutrals are a
house a facelift and contribute to its energy efficiency. Tip: Find   modern and inviting choice for exterior features.
windows with the Energy Star® rating for your zone.                      8. Lighting. Consider your home’s nighttime allure.
  4. Paint. Fresh paint makes a home look cared for. Tip: For a       Tip: Solar lighting by the pathway can add a charming glow.
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quicker fixer-upper, consider painting just the trim and door.           9. Accessories. Updating your mailbox, house number, or
  5. Landscaping. Choose plants of varying colours and                light fixtures is an easy way to add style. Tip: Choose the
height — a little organized chaos goes a long way in perking          same material for all three.




Credit issues                                        are no reason
to give up on homeownership
Have you given up on getting a mortgage because of a                  mortgage, say three years.
poor credit history? There is a solution. By taking a longer-         Your interest rate may be
term approach, you can make your homebuying dream                     slightly higher than those
come true. Not only that, but by making your regular                  commonly posted by the
mortgage payments on time, you’ll also be building equity             banks — at first. But when it’s time to renew, your good
and improving your credit rating along the way.                       record may help you qualify for a lower rate.
   Mortgage brokers have a wide range of lenders to work
                                                                      Never say never
with, including credit unions, life insurance and trust compa-
                                                                      The lesson: Don’t give up on your financial goals. With
nies, and private mortgage companies. Many of these
                                                                      perseverance, ingenuity, and professional assistance, you
lenders have mortgage products designed for people with a
                                                                      can own your own home.
less-than-perfect credit history. Some also offer secured
                                                                         And if you’re already a homeowner and you’re experi-
credit cards, which also help you re-establish your credit.
                                                                      encing credit challenges, don’t wait to seek help. We can
Getting started                                                       look into mortgage refinancing options that can help you
One common strategy is to begin with a shorter-term                   get back on track.
                                                                                                                   SUMMER 2007     3
                     Summer Almanac
   Secrets of                                                   Add colour with
surviving                                                             container gardening
  your reno!                                                    For balconies, decks, and even small backyards, planting in
                                                                containers can add colour and greenery to brighten your
Are you in the throes of a renova-                              outdoor area all season long.
tion this summer? Consider these




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                                                                n What to use. For a rustic look, gather terra cotta pots of
organization and safety tips. They’ll                           varying sizes and shapes and disused items such as watering
help you make it through the noise,                             cans. For a modern ambiance, choose metal finishes in sleek,
dust, and chaos with your sanity                                angular shapes. For a traditional feel, choose urns, concrete
intact.




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                                                                containers, or wooden window boxes.
   n Pack everything. Purchase
plastic sealable, reusable bins, or use                         n How to plant. Seal containers to prevent drips and ensure
cardboard boxes and seal all edges                              proper drainage with a layer of pebbles in the bottom. Plant
with packing tape to prevent dam-                               generously so that pots will spill over with foliage and blooms.
age to your belongings.                                         n Where to put things. Grouping containers is more
    n Seal off the work area. The                               attractive than displaying single pots. Experiment with varying
contractors should take care of this,                           heights and sizes.
but check that the construction site
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                                                                n How to keep it beautiful. Container gardens need frequent
is always securely partitioned off
                                                                watering — every day when it’s hot or windy. Replenish dying
from the rest of the house.
                                                                or thinning plants and add fall-friendly foliage to brighten your
                                                                garden through to the first snowfall.
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                                                                     Keep your cool this summer
                                                                      Stay cool, save money, and help the environment this summer by following these
                                                                      simple tips:
                                                                      n Clear any accumulated debris from your central air conditioner and clean or
                                                                        change the filter before turning it on.
                                                                      n Change or rinse the filters in window air conditioners at least once a month.
                                                                                                  n Turn your central air thermostat up in the warm
   n Create a survival kit. Pare                                                                     weather, and set it to run the circulation fan after
down your accessible belongings to                                                                   the A/C cycle has stopped.
the essentials that you need for day-                                                             n Check that the directionality of ceiling fans is set
to-day living.                                                                                       for summer, so the air is directed downward.
    n Stock up on cleaners. Make                                                                  n Run fans only when someone is in the room.
sure you have adequate cleaning                                                                   n Use a dehumidifier — drier air feels cooler.
products and rags because you’ll be                                                               n Pull drapes and blinds closed in the daytime.
cleaning constantly. A small shop vac                                                             n Open windows on breezy days and evenings.
is ideal for quickly picking up fine                                  n Shut the door to infrequently used rooms and close the central air vents.
dust and small chunks of debris.                                      n Keep appliances, lights, and electronics turned off when not in use.



    This newsletter has been written (unless otherwise indicated) and produced by Ariad Custom Communications.
    Vol. 20, No. 3 ” 2006 Ariad Custom Communications. This newsletter is copyright; its reproduction in whole or in part by any means without the written consent of
    the copyright owner is forbidden. The information and opinions contained in this newsletter are obtained from various sources and believed to be reliable, but their
    accuracy cannot be guaranteed. Readers are urged to obtain professional advice before acting on the basis of material contained in this newsletter. Readers who no
    longer wish to receive this newsletter should contact their financial advisor. ISSN 1205-5840

    4     SPRING 2007

								
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