Page 32 - Sports Energy News, Cornwall, Issue No 92

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32 Issue #92 September 2020 Issue #92 September 2020 www.sportsenergynews.com.com
S ines the Spotlight on

Neighbourly Advice From Our Local Professionals

Max Ming achieved our goals or not. Simple, right? and fail to optimize an income plan with their
Investment Advisor Each of us can remember a time when we personal assets, needlessly leading to higher TALENT
discussed great ideas but as time passed, we taxes throughout retirement. 1397 Brookdale Ave., Cornwall
s the world continues to adjust to the new wished we had written them down because we By not having a plan in place, you may be

Aways we go about our daily routines, the forget them. We are firm believers that those exposing yourself to considerable risks that
global economic struggle has created countless who plan also prosper, and smart people plan you had not considered, like outliving your

financial headlines and created extra stress for for their family’s financial future by putting it money. A plan must be tailored to you; we
many families. For us, 2020 has reinforced the in writing. all have different goals and aspirations such Collectors Edition
need to prepare for the unknown. As you enter the later stages of your working as leaving a legacy, traveling extensively, or
In childhood, we have visions and aspirations years, planning for your future income living quietly with family. If you have any
becomes increasingly important. For example, questions for us or if there is any way we can
of our own future. These aspirations obviously adapt and mold with us as
we grow. We are instructed in school to write our goals down and revisit a high number of Canadians overlook the true help, we would love to have a conversation to

them at the end of the school year, giving us a benchmark to see if we value of their government benefits (CPP, OAS) learn more about you.

By Michael VanderMeer manufactured in Cornwall and they were sewer line. If the sewer lines are NCR, you
Real Estate Agent used extensively throughout Cornwall and may want to renegotiate your offer as the
surrounding areas. Although these pipes did cost of replacing these lines will cost you
NOCORODE SEWER LINES not rust (hence the name, NoCoRode), they thousands of dollars.
I f you are buying a home with a municipal have been known to blister and eventually able to tell you if you should have a sewer
Your agent or home inspector should be
Isewer that was built before 1980, you
collapse.
should have the sewer line checked to make make
should have the sewer line checked to If buying a home that could contain NCR, line inspection - it is worth the cost (typically Tony
sure it is not NoCoRode (NCR).
sure it is not NoCoRode (NCR). you should have a sewer lateral camera scope $150 to $225) of having this inspection
From 1955-1977, NCR sewer lines were to determine the type and condition of your completed.

By Brian Johnston Most variable mortgages are 3 months penalty is based on the interest that the lender Luis

Mortgage Specialist interest and most fixed are the greater of IRD may be losing by terminating your mortgage
or 3 months interest. loan early.
ou can break your current mortgage but Let’s take the example of when a 3-month Don’t forget that you will need to use two
Ybe aware of the prepayment penalty you interest formula would be used to calculate the interest rates to calculate the interest rate
will be facing! prepayment penalty. A typical example of the differential. The interest rate assigned to
You may only be two and a half years into type of mortgage that would suit this equation your current mortgage and the interest rate
your five years fixed rate mortgage, but this is a closed variable rate mortgage. In the most currently available on a loan with the number Champs Eastside Boxing

does not mean that you are necessarily locked basic terms, the equation would look like this: of years left on your loan. In other words, if
into your current mortgage. There may be a If you have for the sake of argument you are only 2 years through your current
way out. a $200,000.00 mortgage with a 2.1% 5-year term mortgage loan you will need
In most cases, a mortgage loan can be interest rate, a lender would calculate your to factor in the interest rate you have been
prepayment penalty by taking the amount of charged and a current interest rate on a 3-year
terminated before the negotiated end of the term. Should you break
the mortgage contract before it is up for renewal? The answer lies in your loan ($200,000.00) and multiply this mortgage term being offered now (three,
what you may be facing in terms of a prepayment penalty. The only by the interest rate (2.1%) and then dividing being the number of years left on your loan).
way you can truly answer whether breaking the mortgage contract by 4 (this is a quarter of a year or 3 months $200,000.00 x 3% (current rate) x 3 years
before the end of the term depends on exactly how much you will penalty) left = $18,000.00
$200,000.00 x 2.1%/4=$1,050.00
owe and whether you can afford this penalty moving forward, keeping $200,000.00 x 2% (lender’s rate available
in mind any other costs associated with negotiating a new mortgage In this scenario, your prepayment penalty for the next 3 years) x 3 years left = $12,000.00.
loan. The mortgage industry has put in place precise formulas that would be $1,050.00. The difference is $6,000.00. This
will determine what penalty will be owing when a client is breaking When would an IRD calculation be made represents the lost interest that could have
a mortgage early. This contingency plan helps the lenders absorb any then? A typical loan that a lender would utilize been earned by the mortgage lender for the
the IRD formula to calculate your penalty
costs associated with breaking negotiated mortgage loans earlier than next 3 years, and thus your penalty to get out

that agreed-upon term end of the loan. would be a closed fixed-rate mortgage. of your mortgage.
There are two basic formulas that are used to determine the As the equation states, we are looking for It is VERY important you thoroughly
prepayment penalty on a broken mortgage loan: the difference between the interest rate
that is assigned to your mortgage loan and understand the mortgage you are getting.
1. 3 Months Interest Formula the current interest rate that is available. Your Make sure you are informed.
2. Interest Rate Differential Formula (IRD)