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ums0mm ourth section 29422006402100 wednesday june 13 1984 shop around before taking a mortgage editors note this is the second in a threepart series on purchasing a new home while it is primarily designed for the firsttime buyer even experienced buyers should not discount the possibilities that they may overlook something part two is on mortages by don atanasoff news editor with the mortgage rate on an upward trend it pays to shop around before signing on the dotted line at least thats the advice offered by ray eady manager of canada trust on mccowan rd but while looking around for the lowest rate is usually the best policy its not always the right way to approach a new mortgage everyone should shop around for rates but sometimes it might be better to take that extra quarter point and maintain some flexibility explained mr eady noting that a quarter point might mean 540 at todays rates on a 90000 threeyear mortgage what mr eady meant by flexibility was in the terms of the contract being drawn up he said the amount of prepay ment allowed on a closed mortgage without interest penalty during the life of the contract is important to those who want to reduce principal shorten the life of the mortgage and save the in terest dollars while there are many types of mortgages and many ways to set them up mr eady strongly recommends that prospective home buyers look very carefully a weekly or bi weekly payments rather than semimonthly or monthly his reasons are quite simple they save money by making weekly or bi weekly payments you make one extra payment a year explained mr eady on a 25year amortized mortgage it could shorten the total life of the contract by about eight years you are in effect tricking yourself into making the extra payment its a great saving maybe as much as 20 per cent mr eady said that most people who come in to sign a mort gage actually bring in too much material but he added it was better than not bringing in the right information usually people come in and want to chat he began but there is a lot of misunderstanding on how mortgages work some say they have been warned by their parents and friends on what to look out for he continued they have a lot of concerns and are usually quite apprehensive but setting up a mortgage is not as hard as it seems mr eady said that in order to buy a new home the prospec tive client must furnish the following items a copy of the agreement to purchase a site plan of the home an appraisal although many mortgage companies will do appraisals income verification verification of downpayment in determining the size of a mortgage the prospective client can afford a principle known as the gross debt service ratio gdsr is put into use what it means is the principal interest and taxes as a percentage of the gross income usually that works out to 30 per cent of a husband and wifes total income also taken into consideration is the total debt service ratio tdsr which takes in the per cent of income principal in terest taxes other loans and financial obligations this nor mally would ndt exceed 40 per cent of a couples total income but the rate will vary between financialinstitutions once the affordability of the proposed mortgage has been determined the amount of the dowripayment may determine what type of mortgage is necessary there are two types of basic mortgages the conventional and the high ratio although there is no difference in the rate the high ratio mortgage must be insured by central mortgage and housing at the cost of 1v4 per cent of the mortgage it is a onetime fee providing the client renews with the same lender in order to obtain a conventional mortgage a 25per cent downpayment on the purchase price of the home must be paid- mr eadpointed out that while many potential buyers dont have 25 per cent to put down there are ways of avoiding a high ratio mortgage he suggested a small second mortgage or a personal loan a family member is the best place to get a loan mr eady added in closing the deal the buyer must provide a survey one from the vendor is acceptable fire insurance one at least equal to the value of the mortgage and proof of a downpay ment finally to make everything valid a lawyer must do a title search and register the deed and the mortgage ray eady mortgage advice lynx technology markham company receives order from xerox corp lynx technology inc of markham has received a purchase order from the xerox corporation dallas for 300 advanced field service test instruments used in the servicing of microcomputers and word processors the order for 300 lynx disk drive alignment testers is valued at approximately 300000 this order brings to 500 the number of units sold to the xerox service group since the dallasbased multina tional began extensive tests on the lynx instruments nearly two years ago xeroxs service group is one of the largest computer service organizations in the united states with more than 2400 personalcomputer dealers now affiliated with the xerox americaro service program lynx technology inc is a threeyearold markham based wholly canadian owned private company which designs manufactures and distributes sophisti cated electronic test equipment for the computer in dustry lynx was a finalist in the recent canada awards for excellence in innovation sponsored by the federal ministry of industry and trade realtor diane blackburn consults with the seller of our home of the week in the large dining room of the home on 27 carolwood dr in home of the week markham overlooking the rouge river valley photos and story by sjoerd witteveen a view of rouge river the grand foyer makes an impressive entrance to this large airy home a oneacre ravine lot over looking the rouge river val- ley just south of markham is the setting for our home of the week located on carolwood dr the house has an asking price j of 319000 the custom built bungalow suggests elegance and warmth and is designed to make the most of the outdoors by the use of large windows balconies and walkouts at both main and lower levels a large foyer with a domi nant skylight emphasizes the feeling of spaciousness the sunken living room measuring 630 by 560 metres has a large picture window over looking the treed back yard right beside it the din ing room has a walkout to a sundeck the kitchen is large with an island work centre builtin dishwasher and two ovens and a countertop range there are three bedrooms on the main floor with the master having its own four- piece en suite and a walkin closet another fourpiece bathroom and a twopiece powder room complete the main floor outside the twocar garage sits beside a long paved drive way with an automatic door opener there is also a utility room beside a backdoor which leads to the fenced in portion of the yard with the inground pool the lower level is reached via a circular staircase where large and bright family room dominates a floor to ceiling fireplace and a walkout to a patio in the walltowall win dow treatment are extra touches theres also a kitch en with a barbeque and stove on this level for entertain ment purposes a bedroom a threepiece bathroom a studygamesroom and a sauna complete the lower level other features in the home include central vacuum cen tral air intercom electronic air cleaner water pump and rental water softener the home is listed by fami ly trust corporation realtor and the listing agent is diane blackburn who can be reached by calling 2941372 everything is built in in the kitchen which has lots of cupboard space and a centre island work area the large pool is fenced in and heated the family room is extremely large and has picture windows the downstairs also includes a separate kitchen with barbecue