BUYING HOME: Mortgages Basic Knowledge

PAYMENT FREQUENCY:
Semi-monthly = 24 payments per year
Accelerated bi-weekly = 26 payments per year
Accelerated weekly = 52 payments per year

Savings through Accelerated Payments:
* A shorter Amortization Term saves you money because you will pay less interest costs over the life of the mortgage.
* Save thousands of dollars in interest costs - while paying down your mortgage sooner!
Example:
  - save over $62,000 by paying $1,454 Accelerated Bi-weekly for 21 years
  - save over $63,000 by paying $727 Accelerated Weekly for 21 years   
  - no savings by paying $2,908 monthly for 25 years

Basis for Example:
Mortgage Amount: $500,000.00
Interest Rate Type: Fixed
Payment Amount: $2,908.03
Payment Frequency: Monthly
Amortization Period: 25 years
Interest Term: 5 years
Interest Rate: 5%


INTEREST COSTS:
Term Interest Cost = interest cost on a loan for a specified term (e.g. total interest at 4% fixed rate for 5 year term mortage)

Amortization Interest Cost = total interest cost of the loan for the whole amortization period (e.g. total interest for the entire 25 year amortization period)


VARIABLE INTEREST RATES
Variable Interest Rate = interest rates can change during the mortgage term depending on changes in market interest rates (bank’s prime lending rate)

Advantages of variable interest rate mortgages:
- interest rates on variable rate mortgages are often lower than fixed interest rate mortgages

Disadvantages of variable interest rate mortgages:
- unknown future, difficult to predict, changes with the politics, global news, war, etc.
- between 2000 and 2009, the Bank of Canada bank rate changed from 0.5% to 6%


FIXED RATE MORTGAGES
- interest rate is constant throughout the term (e.g. fixed 4% interest rate over the entire 5 year term)


CLOSED MORTGAGE
- fixed term mortgage

Advantages of Closed Mortgage:
- interest rates are generally lower than for open term mortgages
- savings on interest costs
- payoff your mortgage faster

Disadvantages of Closed Mortgage:
- prepayment charge if you renegotiate your interest rate
- prepayment charge if you prepay more than what is allowable


CONVERTIBLE CLOSED MORTGAGE
- same benefits as a closed mortgage, but can be converted to a longer, closed term at any time without prepayment charges


OPEN MORTGAGE
- open term mortgage

Advantages of Open Mortgage:
- sound decision if you are planning to pay off your mortgage in the short term (10 years or less)
- can be repaid either in part or in full, at any time, without prepayment charges
- can be converted to any other term, at any time, without prepayment charges

Disadvantages of Open Mortgage:
- interest rates are generally higher than closed mortgages because of the added pre-payment flexibility


FIXED MORTGAGE RATES (Aug 2014)
Convertible: 
6 Month   3.140% 

Closed:
1 Year     3.140%
2 Year     3.040%     (can i get 2 year mortgage contract??, almost same as prime rate)
3 Year     3.750%
4 Year     4.540%    
5 Year     4.940%    
7 Year     5.750%
10 Year     6.750%    
25 Year     8.750%    

Open:
6 month     6.300%
1 year     6.300%


VARIABLE MORTGAGE RATES (Aug 2014)
Closed:
5 year     RBC Prime Rate + 0.000% ---> 3.030%
(based on today's Royal Bank of Canada Prime Rate of 3.000%)     

Open:
5 year     RBC Prime Rate + 1.000% ---> 4.030%
(based on today's Royal Bank of Canada Prime Rate of 3.000%)

      
Today's Royal Bank of Canada Prime Rate (08 August 2014):
RBC Prime Rate     3.000%
Date of change: 09 Sept 2010 
(subject to change without notice, at any time)

*** Rates are applicable to residential mortgages only


MY MORTGAGE PREFERENCE:
Closed Mortage --> 25 years amortization
Variable Interest Rate --> 3% Prime Rate  ---> get 2 year fixed rate @ 3.040% ??
Accelerated Weekly --> save over $63,000 by paying $727 for 21 years     

500 K, 3% variable, 5 yr, closed mortgage, 25 yr amortization

 

500 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization

 

500 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization -FCAC

 

500 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization --FCAC

 

400 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization -FCAC

400 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization --FCAC

700 K, 5% fixed, 5 yr, closed mortgage, 25 yr amortization

700 K, 5%, 5 yr, closed mortgage, 25 yr amortization -FCAC

700 K, 5%, 5 yr, closed mortgage, 25 yr amortization -FCAC

  

Mortgage Rates, 08 Aug 2014

Canada Prime Interest Rates 2004-2014

 

Canada Prime Interest Rates 1960-2014

References:
https://www.rbcroyalbank.com/cgi-bin/mortgage/mpc/start.cgi
http://www.rbcroyalbank.com/rates/prime.html
http://www.rbcroyalbank.com/mortgages/mortgage-rates.html
http://www.fcac-acfc.gc.ca/eng/resources/publications/mortgages/Pages/Understa-Comprend-0.aspx#attractive
http://itools-ioutils.fcac-acfc.gc.ca/MC-CH/MC-CH-eng.aspx

Home Search Criteria - point2homes

Website:
http://www.point2homes.com/CA/Real-Estate-Listings/BC/Vancouver-Island.html


 
Home Search Criteria:

• $500 to 600 thousand dollars
• Single family home property
• 0.3 acre (1200 sqm, 12,000 sqft) minimum lot size
• 4 bedrooms, 3 bathrooms minimum
• Less than 1 hour drive from Victoria, BC
• Less than 60 km from Victoria, BC

Locations, Driving Distance and Time:
C
Central Saanich
Cherry Point -- 50 km, 43 min
Cobble Hill -- 48 km, 41 min
Colwood
Cowichan Bay -- 54 km, 46 min

D
Duncan -- 60 km, 50 min

E
Esquimalt

H
Highlands

L
Langford

M
Malahat
Metchosin
Mill Bay -- 42 km, 37 min

N
North Cowichan -- 69 km, 59 min
North Saanich

O
Oak Bay

S
Saanich
Shawnigan Lake -- 44 km, 43 min
Sidney
Sooke -- 39 km, 42 min

V
Victoria
View Royal

How to Add Value to Laundry Card

1. Insert Laundry card in the machine

2. Look at the options:
   a.  F1 = $10
   b.  F2 = $25
   c.  F3 = Other

3. Select Other
    Note:
    a. The maximum value in the Laundry card after the addition is $99
    b. Example: If your current balance in the Laundry card is $7, you can add up to $92

4. Enter the amount you want to add, but not exceeding the limit of $99 total (after the added amount)

5. Select Debit

6. Swipe your Bank card

7. Choose CHK

8. Enter you PIN

9. Press OK

10. Select YES to get Printed Receipt

11. The display will say DIALING...CONNECTED, DO NOT REMOVE CARD

12. When you see APPROVED, remove your Laundry card

13. Get the receipt

14. Check the receipt for correct amounts and keep it for your records in case of discrepancies.

Note:
This procedure is based on a Phelps Laundry Machine

Main Electrical Panel Circuit Breaker (2 bedroom)

Note:
The data below is for a 2-bedroom apartment. It serves as a reference point. For a 4-bedroom house, estimate can be made based on the values of this reference point.


Main Electrical Panel specifications:
125 AMPS max
24 CIRCUITS max
120/240 VAC
1 PHASE
2 POLE CIRCUIT BREAKER


Left of Panel:
60 A
60 A
15 A --- Dining
15 A --- Kitchen countertop plug
15 A --- Kitchen countertop plug
15 A --- Living Room, Lights & Plugs
15 A --- Bedroom1 plugs
15 A --- Bedroom2 plugs

Right of Panel:
15 A --- Hallway lights
15 A --- Fridge
40 A --- Range (Electric Stove)
40 A --- Range (Electric Stove), #8 AWG copper wire

How to compute your monthly Power Consumption (Electric Bill)

The following computation is based on a 2-bedroom apartment with typical home appliances. The total cost does not include heating costs, air-conditioning costs and other relevant costs. The total monthly hours of usage are approximate values of daily usage multiplied by 30. This power computation (wattage) is only based on the home appliances listed here. The purpose of this article is to show a basic and simple way to calculate for your monthly electric bill.

The cost of power is based on:
a] 120V/240V, 60 Hz
b] Basic charge ---> 15 cents/day
c] KW-hr cost ----> 5 cents/kw-hr  
d] Taxes ---> 7%

e] Power Formula:

    Power = Volts x Amps


Power Computation example:
given:
120 volts
10 amperes

Power = voltage x current
Power = volts x amps
Power = 120 x 10
Power = 1200 watts
Power = 1.2 Kilowatts (KW)


Power consumption of home appliances:

1. Electric Stove (Range, Oven)
- 12,000 watts
- 240V, 60 Hz, #8 AWG (typical code minimum #10 AWG copper wire), Circuit Breaker 40 AMPS


2. Rice cooker
- 400 watts


3. Microwave
- 1350 watts


4. Bread toaster
- 1500 watts


5. Kettle
- 1500 watts


6. Refrigerator (fridge)
- 600 watts
- 20 cu. ft (cubic feet) capacity


7. TV
- 180 watts
- 120 V, 1.5 A
- 120 x 1.5 = 180


8. Radio
- 50 watts


9. Electric fan
- 60 watts
- 120 Volts  x  0.5 Amperes


10. Vacuum cleaner
- 360 watts
- 120V x 3A = 360 wattage


11. Iron
- 1200 watts
- 120 voltage x 10 amperage = 1200 wattage


12. Lighting
- 900 watts
- based on 15 light bulbs x 60 watts/light bulb
- 15 x 60 = 900


13. Laptop computer
- 65 watts


14. Printer-inkjet    
- 75 watts     
  

Monthly Energy Consumption of Home Appliances & Equipment:

------------------------------------------------------------------------------------ 

.

Energy Usage (Kilowatt-hour) ----- Appliance/Equipment

12 KW x 200 hrs = 2400 KW-hr ----- Electric Stove (Range, Oven)

1.5 KW x 5 hrs = 7.5 KW-hr ----- Bread toaster

1.5 KW x 5 hrs = 7.5 KW-hr ----- Kettle

1.35 KW x 5 hrs = 6.75 KW-hr ----- Microwave

1.2 KW x 5 hrs = 6 KW-hr ----- Iron

0.900 KW x 250 hrs = 225 KW-hr ----- Lighting

0.600 KW x 720 hrs = 432 KW-hr ----- Refrigerator (fridge)

0.400 KW x 30 hrs = 12 KW-hr ----- Rice cooker

0.360 KW x 2 hrs = 0.72 KW-hr ----- Vacuum cleaner

0.180 KW x 300 hrs = 54 KW-hr ----- TV

0.075 KW x 1 hour = 0.075 KW-hr ----- Printer-inkjet    

0.065 KW x 100 hrs = 6.5 KW-hr ----- Laptop computer

0.060 KW x 50 hours = 3 KW-hr ----- Electric fan

0.050 KW x 10 hours = 0.5 KW-hr ----- Radio

-----------------------------------------------------------------------------
Total Monthly Energy Usage = 3162 KW-hrs


Using the given data:
KW-hr cost = 5 cents/kw-hr  
Basic charge = 15 cents/day
Taxes = 7%


Total Monthly Electric Bill
= (Total Monthly Energy Usage x KW-hr cost) + Basic charge + Taxes
= (3162 KW-hr x $0.05/KW-hr) + ($0.15 x 30) + Taxes
= 158 + 4.5 + Taxes
= $162.50 + (0.07 x $162.50)
= $174    

How to replace broken or damaged toilet seat and mount the new one

Broken or damaged toilet seats happen generally because of too much pressure, too much weight on the top of the toilet seat. Another possible reason is repeated "dropping" of the toilet seat as a result of not holding the seat while putting it down.

Below is a simple step by step procedure on how to replace your damaged or broken toilet seat and how to mount the new one.


Step by Step Procedure of replacing broken/damaged toilet seat:

1. Close the toilet cover. Open or remove the cover caps. In some models, there is no covering caps and you see the screw head right away.

2. Hold the bottom nut using a wrench or pliers then loosen the top screw using a Phillips (star) or flat screw driver depending on the screw head. If it is hard to loosen the nuts, you can spray some oil on the nuts, leave it for few minutes to penetrate and break the rust or dirt.

3. After removing the two screws, clean the dirt and stains from the old screw on top of the bowl.

4. Place the new toilet seat and position the two screws or bolts making sure the correct position of the washer. The washer should be placed with the flat side facing towards the bottom of the toilet bowl. Incorrect position of the washer may result in poor tightening or even breakage.

5. Tighten the bolts or screws using an appropriate screw driver while holding the bottom nut with your hand or with a wrench or with a plier as necessary.

Important: DO NOT OVERTIGHTEN THE NUTS. It may cause breaking of the toilet bowl including the hole for the bolt/screw. If the toilet seat shakes after several days or weeks, just re-tighten the nuts.

PICTURES:

                                                                   

Broken seat.

Tools needed.

Open caps.

Loosen two screws.

Clean dirt.

Clean before installing new seat.

Place new toilet seat.

Tighten two nuts with screw driver.

Tighten other screws inside.

Congrats! You have successfully installed your new toilet seat.

How to repair or replace a leaking or improper water splashing flow of a kitchen or lavatory sink faucet aerator

A leaking kitchen sink faucet aerator can be so uncomfortable while you are washing the dishes, washing the vegetables, fruits, or even a knife. Everytime you open the kitchen faucet, unnecessary splashing showers and even jets of water come out from a defective or dirty aerator. This can be caused by incorrect assembly of parts inside the aerator, broken circular  or ring screen, broken gasket, or a dirty aerator with debris blocking the flow of water, or any of the parts loose or damaged which causes it to malfunction and so affect the whole aerator assembly and thus causing it to leak or splash and producing an improper pattern of water flow.

A leaking lavatory faucet aerator on the other hand is as messy as a kitchen sink faucet aerator. When brushing your teeth and washing your mouth, the water flow can even splash or spatter right to your face and even your clothes, including the side tiles or even the bathroom floor. In any case, it is a mess and a discomfort.

Below is a simple procedure showing step by step instructions on how to repair a leaking or splashing kitchen sink or lavatory faucet aerator. The step by step procedure of replacing a defective or broken aerator is also discussed at the bottom.


How to repair a leaking or too much splashing of kitchen or lavatory sink faucet aerator:

1. Turn off both the hot and cold water faucet handles.

2. Using a monkey wrench or pliers, unscrew the aerator by turning it clockwise, loosen, and remove the aerator.

3. Check the component parts for any breakage, inspect any loosely fitted part in the assembly especially the black rubber circular or O-ring gasket and the small perforated (with many holes) circular screen for any dirt, debris, small grains of sand, etc.

4. If the aerator is dirty, clean all the parts removing even the stains. Fix any loose parts. Replace any broken part as necessary.

5. Assemble back the aerator component parts clean, snugly fitted, properly positioned in the correct order.

6. Put back the aerator assembly to the faucet by turning it counter-clockwise using your hands first, then tightening it using the money wrench or pliers.

7. Open the water handles to check the leak and water flow pattern. If the problem persists, follow the step by step procedure on how to replace a leaking, defective or broken kitchen sink or lavatory faucet aerator.


How to replace a leaking, defective or broken kitchen sink or lavatory faucet aerator:

1. Turn off both the hot and cold water faucet handles.

2. Using a monkey wrench or pliers, unscrew the aerator by turning it clockwise, loosen, and remove the aerator.

3. Screw into position the new faucet aerator by turning it counter-clockwise using your hands first, then tightening it using the money wrench or pliers.

4. Open the water handles to check the aerator if it is functioning properly and the water flow pattern is nice and smooth without any spatter or unwanted splashing showers and leaks.



  

Bathroom faucet with aerator.

Showing the aerator (with small openings) or perforations.