How development charges affecting home buyers in Region of Peel

Region of Peel increased development charge by 99 % that means home buyer pays extra $18,000 for newly built home in Brampton, Mississauga and Caledon.

Of course the development charges need to be paid by the builder. Region of Peel is arguing that, developers should pay their fair share. 
What do you think ? Developers are doing business, of course they are not paying that money out of their pocket, they are going to charge you. What a home buyer should do in this situation ?

• If you are planning to buy home in region of Peel, first consult your bank, and get qualification for that extra $18000.
• Other option is to buy a resale home, in the area you are interested in.
• Down size is other option you can look at. e.g. Instead of 4 bedroom go for 3 bedroom or from detached home to semi-detached home.

http://www.thestar.com/news/gta/article/1261086--peel-development-charge-increase-means-homebuyers-pay-extra-18-000

Accelerated Bi-Weekly Mortgage Payments

Do you know there are several type of mortgage repayment frequencies ?

You might have heard about the standard monthly payments but what's semi-monthly or accelerated bi-weekly? Which one can save you the most amount in interest and which one can pay your mortgage off sooner? 

• Lets use this example:

Mortgage Amount	$100,000
Interest Rate	5
Amortization Period	25 years
Mortgage Payment	$581.60

• Monthly Mortgage Payments

-Monthly payments are just that, payments made once per month or 12 payments per year.
-Semi-monthly means payments are made on the 1st and the 15th of  each month. You are making a total of 24 payments in the year.
-Based on our example, 
-Monthly payments works like -  $6,979.20 ($581.60 x 12).
-Semi-monthly payments still only add up to $6,979.20. ($290.80 x 24), the same as if you made monthly payments of $581.60.  
-Under this repayments option, it will take 25 years to pay off the mortgage in our example.

• Accelerated Bi-Weekly Mortgage Payments

-Accelerated bi-weekly mortgage payments are a bit different. The difference between semi-monthly payments and accelerated bi-weekly payments is that,

• Semi-monthly payments have 24 payments per year
• Accelerated bi-weekly payments have 26 payments per year. 
• You are now making payments every two weeks (26 weeks per year) and not twice per month (24 payments per year). 

-To calculate your accelerated bi-weekly payment, take the monthly mortgage payment, divide it by 2 and multiply it by 26 (every 2 weeks).

-Using the example, you're total annual mortgage payment is $7,560.80 (($581.60 / 2 = $290.80) x 26) 

-Essentially you're making one more payment per year ($7,560.80 - $6,979.20 = $581.60). 

-By making accelerated bi-weekly payments, you will be saving money on interest and reducing you're amortization period.

• What happens to my mortgage?

The following chart shows the impact on you're mortgage between monthly payments, semi-monthly payments and accelerated bi-weekly payments.

	Monthly Payment	Semi-monthly	Accelerated Bi-Weekly
Mortgage Amount	$100,000	$100,000	$100,000
Interest Rate	5.00%	5.00%	5.00%
Amortization Period	25 years	25 years	21.43 years
Mortgage Payment	$581.60	$290.80	$290.80
Interest Paid	$74,481.49	$74,301.97	62,044.18
Savings		$179.52	$12,437.31

 If you think this has answered your questions…please leave the feedback and question you have about real estate…I would be more than happy to answer you…. 

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