While the lending industry’s benchmark amortization period is 25 years, and this is the standard that is used by lenders when discussing mortgage offers, and usually the basis for mortgage calculators and payment tables, shorter or longer timeframes are available – to a maximum of 35 years.

The main reason to opt for a shorter amortization period is that you will become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced.

A shorter amortization also affords you the luxury of building up equity in your home sooner. Equity is the difference between any outstanding mortgage on your home and its market value.

While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irregular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be the best option for you.

The key is to select the amortization that best suits your unique requirements and ensures you have adequate cash flow. If you can comfortably afford the higher payments, are looking to save money on your mortgage or maybe you just don’t like the idea of carrying debt over a long period of time, opting for a shorter amortization period may be ideal for you.

Advantages of longer amortization
Choosing a longer amortization period also has its advantages. For instance, it can get you into

your dream home sooner than if you choose a shorter period. When you apply for a mortgage, lenders calculate the maximum regular payment you can afford. They then use this figure to determine the maximum mortgage amount they are willing to lend to you.

While a shorter amortization period results in higher regular payments, a longer amortization period reduces the amount of your regular principal and interest payment by spreading your payments out over a longer timeframe. As a result, you could qualify for a higher mortgage amount than you originally anticipated. Or you could qualify for your mortgage sooner than you had planned. Either way, you end up in your dream home sooner than you thought possible.

Again, this option is not for everyone. While a longer amortization period will appeal to many people because the regular mortgage payments can be comparable or even lower than paying rent, it does mean that you will pay more interest over the life of your mortgage.

Still, regardless of which amortization period you select when you originally apply for your mortgage, you do not have to stick with that period throughout the life of your mortgage. You can always choose to shorten your amortization and save on interest costs by making extra payments when you can or an annual lump-sum principal pre-payment. If making pre-payments (in the form of extra, larger or lump-sum payments) is an option you’d like to have, you should ensure the mortgage you end up with will not penalize you for making these types of payments.

It also makes good financial sense for you to re-evaluate your amortization strategy every time your mortgage comes up for renewal (at the end of each term of your mortgage, whether this is three, five, 10 years, etcetera). That way, as you advance in your career and earn a larger salary and/or commission or bonus, you can choose an accelerated payment option (making larger or more frequent payments) or simply increase the frequency of your regular payments (ie, paying your mortgage every week or two weeks as opposed to once per month). Both of these features will take years off your amortization period and save you a considerable amount of money on interest throughout the life of your mortgage.

Regardless of why you decide to sell your home, there’s no doubt that you would like it to sell quickly and at the right price.

Following are five tips to help ensure smooth sailing when it comes time to sell your home.

1. Work with a pro. To ensure a quick sale, you have to be sure your buyers can afford to pay what they offer. Experienced real estate agents take precautions to make sure buyers are not overreaching their grasp. And based on our negotiating expertise, we can work with buyers and negotiate contracts that do not, as a rule, tend to fall through. We also bear all the costs of advertising your home. This can seem minor at first, but newspaper ads and signage can quickly add up. And, best of all, we work for you. It’s in our best interest to ensure your home sells fast and you’re pleased with the price you receive for your home.

2. Price accordingly. As your local real estate experts, we’re in the know when it comes to what’s selling in your marketplace. We have access to a database of statistics that enable us to help you set a price that will make your house attractive to buyers without undercutting your bottom line. After all, if your home stays on the market for an extended period of time, the

process can become extremely hard on you and your family – especially if you have your eye on another home.

3. Set the stage. Aside from pricing your home accurately from the onset, the way your home is seen by potential buyers is the next most important aspect in ensuring a quick sale. Getting your house ready to sell can help you connect with buyers on an emotional level that enables them to picture themselves and their families living in your home. With the popularity of home decorating and renovation programs on TV, people are more accustomed to looking at houses with an eye for design. But this doesn’t have to cost you a fortune. The most important first step is getting rid of clutter and personal items so potential buyers can picture themselves easily moving in their belongings.

4. Go where the buyers are. If you want a quick sale at the best price, it only makes sense to compete on the biggest market – and there’s no question that the biggest market in Canada is the Multiple Listing Service (MLS). Going it alone means relying on yourself and, while that may sound appealing to some, the numbers argue against it.

5. Create word of mouth. Finally, if you have a home that one of your friends or acquaintances has often admired, put the word out to your friends and ask them to spread the word. Doing so could help you avoid the stress of staging and hosting open houses, and get you the quick sale you’re seeking.

As always, if you have any questions or concerns about selling your home quickly and for the right price, answers to your questions are just a phone call or e-mail away!

When you are moving into a smaller living area, there is just no way you can take and put all your stuff in the new space. You have some options when it comes to downsizing you home. The first thing you really need to think about is the size of your new living situation. If you are downsizing from a three or four bedroom home to a smaller one or two bedroom home, there are some things that are priority, and others that can either be put into storage, or gotten rid of entirely.

You have to think about what you absolutely need in your new home first. Sure there are going to be some things that are necessary, your bedroom furnishings for example. However, if you have a large king size bed and a complete bedroom furniture ensemble, this may not fit into a smaller bedroom space. You may have to sell off your old furnishings and downsize to a queen sized bed instead. If this is the case, you may want to also think about one of those platform beds that have storage space under the bed itself.

Instead of trying to deal with it all at once, go room by room instead. This is a lot less overwhelming. When it comes to downsizing, you should have four different piles. One of them should be the things that you absolutely have to have. These include things like keepsakes that have lots of memories, things you have collected over the years, etc. The next pile should be things that can be sold, whether in a garage sale, or that can be auctioned off. The bedroom furnishings that have been mentioned earlier is a perfect example of the things that can be sold to help fund smaller furniture.

The next pile are things that are just junk and need to be thrown away. These of course include things like that lamp that has needed fixing and you just never have the time to get it working, as well as other clutter that is just taking up space. The last pile is for those things that need to be passed on to relatives or children who have grown up and moved out of the house.

Downsizing your home is something that just can’t be done overnight. It took a lot of time to accumulate all these things, so don’t expect to get it done in one weekend, especially if you have to downsize from a large home to a small condo or apartment. You may have to rent a storage unit if you have a short period of time in which to move out. This will give you much more time to go through everything, instead of feeling rushed.

Having a garage sale, while a good way to get rid of things fast, is not always a smart way to sell your home items. It is a good idea to check around the area where you live to find stores that buy back quality used furniture, or even have auctions. Not anything that is left over should be thrown out in the trash. All of these items can be recycled, and given to charity organizations so that others who are less fortunate can enjoy them. The same goes for those items that you want to throw away. Some things, like that lamp that needs fixing can be given to some of these places, because the people who work there can fix them up. There are many different recycling centers for your old electronic equipment, whether working or not. Now you may not have a lot of time, but it is important that these items don’t just wind up in a land fill.

$699, 900 For Sale

59 East Liberty Unit 2503

2+1 bedrooms, 2 washrooms

Luxury Penthouse (Top Flr) Unit With Breathtaking South View Of The Lake.This 2 Bedroom + Den Corner Unit Is Approx.1342 Sq.Ft. With A Great Balcony Area. Extremely Bright Living Space,10 Ft Ceilings,Upgraded Kitchen,Bathrooms And Flooring As Well As 2 Parking Spots And An Oversized Locker Area.Great Location Which Is Minutes To Great Shopping,Restaurants,Ttc And Downtown Toronto.**** EXTRAS **** Stainless Steel Appliances,Full Size Stackable Washer & Dryer,Upgraded Flooring,2 Parking Spots And An Oversized Locker (Approximately The Size Of 4 Lockers).

$339,000 For Sale

69 Scarlett Rd

2 bedrooms, 1 washrooms

This Spacious Two Bedroom Bungalow Has Been Extensively Renovated.Featuring New Hardwood Flooring/2005 Thruout The Whole Main Level,Large Bathroom With Separate Shower & Corner Jacuzzi Tub, & Private Driveway With 2 Car Parking.Lower Level Was Recently Renovated & Includes Recreation Room With B/I Shelving,Pot Lights,& Double Door W/O To Backyard Retreat.New Roof/2010 & High Efficency Furnace/2007.Great Starter Home In Desirable Area!.**** EXTRAS **** Fridge,B/I Stove(2009),Freezer In Basement,Bar Fridge In Basement,Washer & Dryer,All Electric Light Fixtures,All WindowCoverings,Hwt(R),Gas Hookup For Bbq In Backyard.(Exclude:GlassStorage Unit On Wall Beside Bar Fridge In Basement).

47 Lobo Mews

3+1 bedrooms, 3 washrooms

Executive Townhome Built By Dunpar,Located In Bloor Village & Loaded With Upgrades.Custom Neutral Colour Benjamin Moore Paints Thru-Out.Custom Kitchen With ‘Mushroom Glaze’ Maple Cabinets,Granite Countertops-Bull Nose & Island.Marble Counter In Master Ensuite,All Sinks In The Home Are Undermounted.Custom Italian Silk Drapery & Roman Blinds Thru-Out.100% Wool Carpet In All Bdrms,Office On 1st Floor With Powder Rm,2nd Deck Off Master Bedroom. Please call Eric Bau for further details.