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Halton Hills This Week - Financial Update ‘93, Wednesday, January 13, 1993 — Page 7 Let's compare apples to apples In today’s competitive market- place, it is nice to know that com- parison shopping can help the con- sumer have the information needed to compare when shopping for a mortgage? Banks, Trust Companies, Insurance Companies, Loan and Trust Corporations all advertise their mortgage products using one criteria...rate. But rate is not the only thing to take into considera- tion when arranging a mortgage. Prepayment privileges, flexibili- ty, convertibility are all important aspects of mortgage financing. Whilg most mortgages appear the same on the surface, each lender has his own nuances when it comes to mortgage lending. Using a mort- gage broker can help determine which mortgage is best suited to your needs. A mortgage broker is an independent professional whose sole purpose is to provide you with the best available financing for your particular needs and wants. And the mortgage broker has access to numerous sources of funds, so that he is not restricted to selling you one product over anoth- er. He is there as a guide, to help you choose the mortgage best suit- ed for you. In addition, the mortgage broker is the only mortgage professional that will disclose your true cost of borrowing to you. All Canadian mortgages with blended monthly payments have their interest com- pounded semi-annually not in advance. The effect of this com- nding means you actual cost of borrowing will be higher than the advertised rate of your mortgage. In addition, the costs incurred in arranging a mortgage (appraisal’ fees, application fees, legal fees, brokerage fees) will also increase the cost of borrowing. Under new regulations recently introduced by the ministry of Financial Institutions, your mortgage broker will disclose to you the true cost of borrowing, on an annual basis, tak- ing the above factors into consider- ation. None of the other mortgage lenders or practitioners are current- ly required to disclose the cost of borrowing in this manner. Don’t be confused. All amortized mortgages with the same Face Rate will be the same: - the monthly payments will be the same = the interest will be calculated the same during the term of your mortgage - the balance at maturity will be the same - the amount of money you receive from your solicitor will be the same (subject to broker’s fees). Only a registered mortgage bro- NG ker discloses the true cost of bor- rowing to the consumer. For further information about the disclosure of cost of borrowing, or mortgage brokerage activities in general, contact the Ontario Mortgage Brokers Association at (416) 631-0320. This article was submitted by Dave Krause, Sales Representative of Countryside All-Pro Realty Inc., and Mortgage Consultant of Captain Financial Services Ltd. He can be contacted at 873-3377 or 873-4991. \ —_—_—n~v~ of showing our appreciation, each of the following criteria you meet, maximum. The bonus will apply on this year's contribution to a CIBC Guaranteed Rate Account RRSP. 1/4% for making your maximum allowable RRSP contribution to a CIBC Guaranteed rate Account. 1/4% for enrolling in a CIBC RRSP Monthly Savings Plan to easily reach next year's limit. 1/4% for consolidating $25,000 or more in a CIBC Guaranteed Rate Account RRSP from another financial institution. = p fo) led s2 p - Gin, CIBC = f SECURE YOUR FUTURE WitH A CIBC RRSP CIBC Preferred Client Rate As a CIBC customer, you deserve special treatment. As a way we'll give you a 1/4% bonus for up to a 1/2% Main St. Georgetown Georgetown Marketplace 877-2231 877-6963 Sponsored by Agents of SunLife information has bee of Canada For your convenience, a flyer con today's paper as a reminder. e Harry Gregg e Rick Dixon Wednesday, January 20, 1993 7:30 p.m. John Elliott Theatre, Georgetown ing this important e Alec Munro e Cary Kreuzwiesner PLAN TO ATTEND Our agenda will include simple solutions to your complex problems how the new RRSPs tules affect you * understand the new RRIF rules e will you outlive your savings * annuities - advantages - disadvantages * ensure your RRSP funds are in taxes Life the best type of investment ow can you reduce the effect (ej * the strength and security of Sun For information and reservations call 416-873-7324 Georgetown 416-626-3004 Toronto