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Homes make a wise investment Now is the time to buy a new home! Interest rates are lower than they have been for the past 20 years. Housing prices have stabi- lized, and a competitive marketplace offers great benefits to home buyers. Most new home purchases also qualify for a GST re- bate. It all adds up to greater affordability, and a wise investment for the new home buyer. Banks, trust companies and other financial insti- tutions are offering more ways to finance a new home purchase than ever before. In order to make the choice that will suit your particular needs and budget, you'll want to in- vestigate thoroughly the wide range of options, packages and services that are available. Exactly what is a mortgage? A mortgage is a long- term loan for the purpose of buying a home. The principal is the amount of the loan, or the cash you actually borrow. You are expected to repay the principal, together with the interest. Mortgage payments are applied to- ward both principal and interest. What can I afford? As a general rule, no more than about one-third of assured gross income should go toward the total sum of mortgage pay- ments, property taxes and estimated heating expens- es. Also, no more than 40 per cent of assured gross income should go toward the total of your mortgage and all other contracted payments, such as car loan payments. There are three main typesof mortgages A conventional mort- gage does not exceed 75 per cent of the property value. In the case of a pur- chase, the property value is established as the lesser of the purchase price or appraised value. Lenders require that mortgages that exceed this limit are insured against default, usually at the borrower's expense. A high-ratio mortgage exceeds 75 per cent of the property value. This mort- gage must be insured against default by the lender, usually at the bor- rower's expense. Turn to Page 5 Mamber Oshawa & District Real Estate Board Member Lindsay & District Real Estate Board 416) 985-9777 PORT PERRY PLAZA FAX 985-9161 985-9777. CASTLE HARBOUR 3 bedroom brick bungalow, Large eat-in garden kitchen has walkout to private deck, woodburning fireplace in living room, large master bedroom with 4pc. ensuite & double closets, central vacuum, yard lighting and wood- ed lot are just a few of the features of this comfortable well decorated home. Offered at $298,000. Please call Sah, Wes BETTER HOMES & GARDENS WOULD FIND A PHOTO OPPORTUNITY IN EVERY ROOM IN THIS HOME. Just a few of its features are: large eat-in kitchen with patio doors leading to privacy deck with built-in hot tub, vaulted ceiling in living room with marble fireplace, oversized Spc. ensuite with skylight & jacuzzi, plus 3 other baths, 2-1/2 car heated garage with loft/studio above, cobble stone walk- ways, concrete driveway, security lighting & system, etc., etc., etc., You will not be disappointed with this exceptional home!! Asking $329,900. Please call 985-9777.