RBC Royal Bank decreases residential mortgage rates

TORONTO, August 6, 2008 — RBC Royal Bank announced today that it is decreasing its residential mortgage rates effective August 7, 2008. The changes are as follows:

Six-month open - 8.15 per cent (down by 0.25 per cent)
Six-month convertible - 6.35 per cent (down by 0.25 per cent)
One-year open - 8.50 per cent (down by 0.30 per cent)
One-year closed - 6.35 per cent (down by 0.30 per cent)
Two-year closed - 6.35 per cent (down by 0.30 per cent)
Three-year closed - 6.35 per cent (down by 0.30 per cent)
Four-year closed - 6.69 per cent (down by 0.30 per cent)
Five-year closed - 6.85 per cent (down by 0.30 per cent)
Seven-year closed - 7.30 per cent (down by 0.30 per cent)
Ten-year closed - 7.45 per cent (down by 0.30 per cent)
Twenty-five year closed - 8.35 per cent (down by 0.30 per cent)

Special Offers*

6-month convertible - 5.29 per cent (down by 0.25 per cent)
Four year closed - 5.63 per cent (down by 0.30 per cent)
Five year closed - 5.79 per cent (down by 0.30 per cent)
Seven year closed - 5.85 per cent (down by 0.30 per cent)

* The rates indicated are special discounted rates and are not the posted rates of Royal Bank of Canada. To calculate a rate discount compare the Special Offer rate against the posted rate for the applicable term. Special Offers may be changed, withdrawn or extended at any time, without notice. Not available in combination withany other rate discounts, offers or promotions.

[source - http://www.rbc.com/newsroom/links.html]

The other big banks will likely follow with rate cuts, however you will still always get a better rate and better service when dealing with a Mortgage Broker.

10 Tips To Protect Your Home

To ensure you protect the investment in your home it's important to perform regular maintenance. The following tips were designed not only help you to prevent costly repairs in the future, but can also make your home more efficient, saving you money on your monthly utility bills. When it comes time to refinance or sell your home, your investment will be worth more if you keep the following 10 important things in mind:

1. Inspect the exterior of your home annually:

• Check the foundation for cracking.


• Check the weather stripping and caulking around doors and windows, and check for cracks and holes in the siding.


• Check the paint for peeling, cracking, fading or blistering.


• Trim shrubs and trees so they clear the foundation, exterior walls, and roof.


• Drain and shut off your outside faucets before winter.


• Clean gutters and downspouts in the fall and spring.


• Clean leaves and mulch from under porches and decks, and pull mulch away from foundation walls.

2. Check annually for water or moisture in the crawl space, as well as for water leaks in the basement or in the attic.

3. Drain a gallon or two from your hot water heater at least twice a year to extend its life expectancy.

4. Have your chimney cleaned each year before using the fireplace.

5. Check the filters on your heating/cooling unit once a month and change or clean on the recommended schedule. Have the unit serviced annually.

6. Check faucets for drips and the rest of the plumbing for leaks once a month.

7. Check your dryer vent and stove hood monthly and clean them as needed.

8. Inspect and repair tile grout in bathrooms and kitchen annually.

9. Change the batteries in your smoke alarm twice a year.

10. Make sure that you know where the main cut-off valves or switches are for the plumbing, electrical and gas systems.

For more information on refinancing your home in Ontario, please call 416 807 7123 or email gbarrow@dominionlending.ca

Financing a Vacation Property in Ontario

Thinking of buying a vacation home that you can use at your leisure, instead of renting every summer? Before you sign a purchase agreement, remember that making a smart decision involves more than finding a great view at an affordable price. Purchasing a recreational property can affect your finances and your lifestyle, now and down the road. Here are some important factors to consider.

Take stock of your goals

As a start, ask yourself the following questions. Be honest about what you and your family really want.

How often will you use the property?

How much will it cost to get there?

Will you use it year-round?

Are you looking for an investment property, something to pass down to future generations, or a place to just relax?

Will it become your retirement residence?

Would it make more financial sense to continue renting a vacation property as needed and use your savings for travel or other financial goals?

Create a list of your objectives and share it with your financial advisor and real estate agent. Your financial advisor can help ensure your plans fit with your current financial situation, while your realtor can help narrow your property search.

Financing your property

At DLC Perfect Mortgages, our agents can arrange financing for vacation properties and/or second homes. Depending on the type of property you want to buy, you may be eligible to obtain financing for up to 95% of its value, subject to approval by a mortgage default insurer.

Your primary residence is a good place to look for financing. By tapping into your home equity (its current market value less your outstanding mortgage) you may be able to borrow at a lower rate than if you took out a typical loan.

If you won't be using the property year-round, consider renting out the property to help pay for carrying costs and expenses. Be sure to save all receipts associated with maintenance, utilities, and insurance, as you may be able to claim tax deductions if you are drawing income from your property. Bear in mind you'll still be responsible for keeping the property clean and well maintained.

Pooling your funds with family or friends to purchase a recreational property is one way to reduce the financial burden of ownership, as long as you're prepared to work out schedules for share use and maintenance — preferably in writing. A lawyer's advice can be invaluable in helping work out all potential issues that may arise from shared ownership.

Like any important decision, it's a good idea to do your homework if you are considering a recreational property. A Mortgage Broker, local real estate agent, and lawyer are good sources of advice and information.

Draw on local expertise

Local real estate brokers are a valuable resource who can help you in your planning and budgeting. They understand the market and can give you good estimates on property taxes and annual upkeep. Strict local and provincial rules regulate land use and development. Local expertise can help you learn about zoning and other legislation, such as restrictions on renting, construction or landscaping, that might affect your goals and budget. Check with local authorities to get the appropriate permits and to ensure your plans won't damage sensitive habitats
and ecosystems, such as shorelines.

For more information on financing a vacation property in Ontario, please call 416 807 7123 or email gbarrow@dominionlending.ca

[Source: MyVauly - Scotiabank - 2008]

How to Find Your Perfect Home

Looking for a home can be an exciting and exhilarating experience. But before you start your search, you first need to figure out where you want to live, what your housing needs will be both now and in the future, and how much you can spend.

To help you find the home that’s right for you, Canada Mortgage and Housing Corporation (CMHC) suggests you ask yourself the following questions:

How large a home do you need?

Do you need several bedrooms, more than one bathroom, a home office or a two-car garage?

Are you planning on making any lifestyle changes in the near future, for example, are you planning on having children?

Do you have teenagers who will be moving away soon? Or are you close to retirement, and looking to downsize to a smaller home? By clearly setting out your priorities in advance, you can help save yourself a great deal of time and trouble later.

Are there any special features you’d like your home to have, such as air conditioning, a swimming pool or a spare room for a hobby?

What kind of neighbourhood do you want to live in? Remember to take into account such features as how easy it will be to commute to work, whether your children will have a school close by, and how close you will be to family, friends and safe recreational areas and facilities.

Would you prefer to live in a new home or a resale? New homes offer such advantages as more personalized choices, up-to-date appliances and finishings, and often lower maintenance costs. But resale homes can provide easier access to more established services and mature landscaping, and may save you from having to pay GST/HST on your purchase.

What type of home would you feel most comfortable living in? The choices available on the market today range from single-family detached houses, semi-detached and duplexes to townhouses, modular homes and condominiums.

When you’re ready to start looking for a home, some good sources include newspapers, real estate magazines, the Internet, real estate agents and word of mouth. If you’ve decided which neighbourhoods you’re interested in, you can also spend a few days driving around them to look for new development sites or “For Sale” signs.

Another very important step in the home buying process is to contact a Mortgage Agent and get pre-approved for your financing. Now you will know what price range you can look in and this will also help your realtor do their research for your perfect home.

For more information on getting the perfect mortgage for your family, visit Dominion Lending Centres Perfect Mortgages www.gregbarrow.ca, or call 416 807 7123. You can apply online, by phone or by fax

For more information on what features to look for and other factors associated with buying a home, visit www.cmhc.ca, search "Homebuying Step-by-Step" or call CMHC at 1-800-668-2642. For more than 60 years, CMHC has been Canada’s national housing agency and a source of objective, reliable housing expertise.

[Published in part @ www.cmhc.ca February 05, 2008]