Cottage Retirement

Many Canadians find that after living and working many years in the city, they crave a simpler lifestyle in their retirement. This view has led to the increasing popularity of the "retirement cottage".

Cottages once enjoyed only in the summer are now being converted to year-round homes. But what should you look for when determining whether your cottage will make a suitable year round home? The most important issue to consider is whether or not there is suitable access to your property. Although it may not be a factor in the summer, poor roads can definitely affect you mobility in the winter.

As well, you need to consider whether or not you have access to all the necessary facilities, including hospitals, police, water and garbage collection. Another service worth exploring is 911. Having an emergency response team within close range can be very important for the elderly.

Another very important issue to consider is the community itself. Will you be able to have a social life in your new surroundings? With more and more people choosing the cottage as their main residence you shouldn't have problems meeting people to enjoy activities with.

If you're retiring and looking for a change from the hectic pace of city life, consider the cottage life!

Peterborough & Area January Statistics

Canadian Mortgage Rules Will Change April, 2010

Earlier today, Finance Minister Jim Flaherty announced changes to mortgage lending standards for mortgages. He said that while the housing market is healthy and there’s no real evidence of a bubble, the moves are needed to “help prevent negative trends from developing.”

The changes are designed to bring stability to the lending market and head off potential problems such as those experienced south of the border with the sub-prime mortgage crisis. With interest rates almost certain to rise in the months and years ahead, the government is trying to ensure Canadian borrowers will be able to carry higher debt loads created by higher rates.

Having said that, the changes are far less than rumoured and are likely to have little impact on the average home buyer. Yes, people can still buy a home with a down payment of 5%.

The new rules are made up of three changes:

1. Borrowers will need to meet standards for five-year fixed-rate mortgages regardless of whether they’re seeking a loan with a lower rate and shorter term. Right now, borrowers may qualify for mortgages based on lower rates as a percentage of income. Under the new rules, only the 5 year rate will apply. Why it’s not so bad: In 2009, over 85% of mortgages were for fixed terms and of those, 70% were for5 year terms. All of those would still qualify under the new rules.
2. The maximum amount Canadians can withdraw when refinancing their homes changes from the current 95% to a maximum of 90% of the value of their homes. In many cases, refinancing options are used to transfer high credit card balances to lower rate mortgages. Under the new rules, mortgagees will have to build up at least 10% equity in their homes in order to do so.
3. The down payment for government-backed mortgage insurance on speculative, non-owner occupied investment properties increases from 5% to 20%. This is intended to discourage real estate speculation often seen in rising markets driving house prices artificially high.

It would appear to me that the government has taken a balanced approach to this issue in a way that should neither spur a run-up in pricing or dampen the real estate market. What they’ve done is put rogue lenders on notice that the government is watching.

The new regulations take effect on April 19, 2010.