You probably get tired of hearing people say, “Skip lunch and you can save $10 a day, or $50 a week. That’s $2,600 a year.” Who wants to skip lunch every day? Besides if I skip lunch for a month and save $200, and then turn around and buy two tickets to see Jersey Boys, I’ll blow through my lunch savings in one sweep of the credit card … k’ching! Which is exactly the problem people have “saving” money.

I can’t tell you how many times I’ve heard some version of, “Yeah, I can give up eating lunch out and save $25 a week, but what’s that really going to get me?”

How about a $30,000 savings on your mortgage. Interested?

On a $250,000 mortgage at 6 per cent amortized over 25 years, if you add an extra $100 to your monthly payment, you’ll save $32,640 off your mortgage and chop 3 years off your amortization. That’s got to be worth brown-bagging it for lunch!

Most people never realize the gains they could make because when they do something to “save” money, they leave their “savings” in their wallet, where it eventually vanishes into a cup of coffee, a new magazine, or a DVD for the kids.

If you want to make your “savings” work as hard as you do, then you’ve got to apply them somewhere important quick, quick like a bunny. Use the money you’re saving to pay down your credit card balances or your mortgage, bump up your emergency fund, or increase your retirement savings.

I’ll bet there’s a bucket-load of ways you’re spending unconsciously. And I’ll bet you can find the $100 a month to save $30,000 on your mortgage. Why don’t you take a look?

http://ca.finance.yahoo.com/news/Cut-back-save-big-msense-1919008625.html?x=0&mod=pf-sp14b

 Members of the Ottawa Real Estate Board sold 936 residential properties in February through the Board’s Multiple Listing Service® system compared with 1,030 in February 2010, a decrease of 9.1 per cent. Of those sales, 213 were in the condominium property class, while 723 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares.

The residential property class includes all other residential properties. “Once again we’re seeing sales numbers very close to the five-year average for February, which is 962 sales. It’s important to note that the homes that sold last month did so far more quickly than in January, spending an average of just 33 days on the market. As well, prices rose slightly more than they had in the previous two months which indicate we still have a very steady market here in Ottawa,” said Board President Joanne Tibbles. “This tells us that there is a demand for resale homes in Ottawa, and that when buyers see the home they want, they’re going after it, perhaps even going up against other bidders,” Tibbles added.

The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $338,408, an increase of 6.7 per cent over February 2010. The average sale price for a condominium-class property was $260,112, an increase of 6 per cent over February 2010. The average sale price of a residential-class property was $361,475, an increase of 6.9 per cent over February 2010. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

On February 18th, John Donovan Properties received the Diamond Award to recognize the outstanding professional achievement.

Over the past two years Canada has experienced a number of economic factors that have affected our housing market and caused a fair amount of volatility.  During that time we’ve experienced the global financial crisis, a major recession that eliminated 430,000 jobs across Canada, the introduction of HST in Ontario and B.C., the tightening of mortgage rules by the Federal government not once but twice, and the positive impact of significant cuts in interest rates.

Today in contrast, the Canadian economy is on a more solid footing and is expected to gather strength in 2011 which will boost both employment and family incomes.  While this good news would normally propel housing market activity higher, RBC anticipates that stimulus will be offset by the Bank of Canada raising interest rates by 1 percentage point this year and 1.5 percentage points next year. In addition, this past January 17^th Finance Minister Jim Flaherty announced a third round of rule changes to government-insured mortgages – including a decrease in the maximum amortization period from 35 to 30 years, effective in March – which is expected to dampen home buying activity slightly later this year.

Based on these factors, RBC expects the Canadian housing resale market to remain mostly flat this year and next with only minor increases in housing prices of 0.5% in 2011 and 1.3% in 2012 (see RBC Economics Research’s report Canadian home resale market outlook: moderation, moderation, moderation). While the upcoming changes to mortgage rules may boost activity somewhat prior to their introduction date, this would most likely bring forward home sales that otherwise would have happened later in the year.

 What does this mean for you?

 With interest rates soon to rise again and house prices relatively stable, now may be a good time for considering a home purchase to enter the market.  By taking advantage of still  exceptionally low interest rates you may be in a position to lock in lower mortgage payments than you will be able to a year or more from now. By meeting with a RBC Mortgage Specialist you can review the down payment and mortgage options available to help you get into a home sooner.

 RBC Mortgage Specialists understand the importance of making dreams of home ownership a reality while also ensuring housing affordability is a top priority.

 The following is a link to our Home, Mortgage and Lending Advice Centre. http://www.rbcadvicecentre.com/ 

 Your new home doesn’t come with mortgage advice. I do.

Contact me today:

Bud Fisher
Mobile Mortgage Specialist
RBC Royal Bank
(613) 795-9774

bud.fisher@rbc.com
http://mortgage.rbc.com/bud.fisher

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3064D Councillors Way

$172,900

We can help you buy or sell your home.

408-589 Rideau Street

Offered @ $539,900

John Donovan, Sales Representative