The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, F eb ru ar y 1, 20 18 | 12 OPINION i v o M K e r r S t r e e t M i s s i o n Oakville's Mission o f Hope Pay it forward in Fresh Food. Did you know Loblaws is offering $25 gift cards to all customers in an apology effort of their role in fixing bread prices. Shortly after this announcement, a movement to donate the $25 gift cards to local food banks was launched on social media. We also think it is a great idea! If you're planning to claim your $25 gift card from Loblaws, you can pay it forward by donating it to KSM's food market. Several months ago Kerr Street Mission started making changes to its Food Market. The plan was to evolve from a food bank that distributes whatever food is donated, to a food market that provides fresh food and healthy options that people need. We need your help to make it happen. If you would like to receive your gift card, simply register by May 8. To register go to loblawcard.ca. Once you receive it, and you would like to donate it, you can simply drop it off at our facilities. Did you know... • Approximately 450 people shop at our food market each month. • KSM Food Market distributes around $600,000 of food annually. • Products for personal care are among the most needed items for the market. Along with fresh food, they contribute to restoring the dignity to our clients. We need your support. Please give generously, so that together we can continue to provide help and hope for individuals and families in need in Oakville. To learn more about Kerr Street Mission call us at our phone below or go to www.kerrstreet.com. Kerr Street Mission 485 Kerr Street, Oakville P: 905.845.7485 Charitable Reg. No. 897106845RR0001 New home mortgage stress test The government has put the brakes on real estate spending: Watson Qualifying for a home mortgage became m ore difficu lt at the beginning o f this year, and will add downward pressure on house values. This is not a predic­ tion that the value o f hom es will decrease. Downward pressure could result in smaller increases in the value o f houses or, in fact, a de­ cline in prices. The governm ent has put the brakes on real es­ tate spending. This is the seventh time they have tried to cool the red-hot housing market. As o f Jan. 1, a new mortgage qualification PETER WATSON Column stress test came into ef­ fect for new Canadian ho- m ebuyers and those refi­ nancing an existing m ortgage with a new lender. This does not in ­ clude anyone renewing their m ortgage with their current lender. Under the previous rules, you qualified for a m ortgage based on the m ortgage interest rate. The key question: could the borrow er afford the cash flow requirem ents necessary to make the payments? Now, the qualification is based on the greater o f the m ortgage interest rate plus two per cent, or the Bank o f Canada's five-year benchm ark rate, w hich is currently 4.99 per cent. Assume you could find a m ortgage with an interest rate o f three per cent. You would have to af­ ford m ortgage payments based on three per cent plus an additional two per cent. With a stress test o f five per cent, fewer peo­ ple w ill qualify for m ort­ gage financing. Those would-be home- buyers w ill have to find a cheaper house. Analysis by the Bank o f Canada found that about 10 per cent o f Cana­ dians who were previ­ ously approved for a home m ortgage would not be approved under the new, m ore restrictive rules. There is a problem with these changes to the m ortgage qualification process. Existing mortgage holders w ill on ly be sub­ ject to the m ore restric­ tive qualification stan­ dard i f they change lend­ ers when their mortgage expires. That could be unfair to the borrower. Their current lender will know i f they will pass or fail the new m ort­ gage stress test. Failing will curtail the borrow er's ability to look for a better interest rate. In some cases, they may have to accept an uncom ­ petitive interest rate.- Peter Watson, o f Peter Watson Investments MBA, CFP, RFP, CIM, FCSI, offers a weekly financial planning col­ umn, Dollars and Sense. He can be contacted through www.peterwat- son investments, com. P U R E + SIMPLE Ee.au6-Ful ffa tu ra j/y » environmental defence IN S P IR IN G C H A N G E with yourself. £ An indulgent facial featuring a rejuvenating high frequency treatment + extra massage. *0 ffe rs valid until Feb 28, 2018 Pure + Simple Oakville-Mississauga 3 - 1 1 4 0 Winston Churchill Blvd. I 905.829.2055 OM@pureandsimple.ca More Facial + Product Specials at pureandsimple .ca @ P u re A n d S im p le O M u i | ] http://www.kerrstreet.com http://www.peterwat-son http://www.peterwat-son mailto:OM@pureandsimple.ca Pay it forward in Fresh Food. Did you know... • KSM Food Market distributes around $600,000 of food annually. Kerr Street Mission