Early Retirement the Middle Way

@ Northern Living Allowance; Merry Christmas to y...

2009-12-25T10:10:10.620-05:00

@ Northern Living Allowance;

Merry Christmas to you too!!!

I agree. I too feel it comes down to common courtesy and appreciation of differences.

To be honest, I thought we as human beings have gotten past such behaviour so it shocks me when I encounter it.

Hi Laura!

What a great year you've had! I cannot wait to hear how things evolve for you in 2010.

A Very Merry Holiday Season to You and Yours!!

Quite agree! Happy a very Happy Holiday and I wis...

2009-12-25T02:16:25.667-05:00

Quite agree!

Happy a very Happy Holiday and I wish you all the very best for 2010 :-)

Nicely said! I think for those who slam travel, it...

2009-12-24T17:25:20.739-05:00

Nicely said! I think for those who slam travel, it's because it seems blatantly excessive, or perhaps a waste of money, particularly for those of us on pf blogs for some reason.

But I agree: if you can't say anything nice, don't say anything! There are hundreds of things other people do that I'd consider a waste of time/money, but travel certainly isn't one of them. What a wonderful education!

Merry Christmas to you!

Hi Dave; I'll be curious to see what you find out...

2009-12-23T12:07:19.266-05:00

Hi Dave;

I'll be curious to see what you find out about that.

We only spray once every 3 years or so and use the non drip which seems to stay there for a long time.

When I bought my car as a 1 yr old, the previous owner had the black spray done which was supposed to be good for 10 yrs.

Hope you have a super holiday yourself!

My car is rusting a bit around a couple of doors t...

2009-12-22T20:14:38.555-05:00

My car is rusting a bit around a couple of doors that will need fixed at the body shop in the spring. I've never oiled my car, and am wondering if I should have now - I always figured the cost of oiling in the fall for years would approximate the cost of new body work down the road, but I guess I'll see when I look for estimates around the city.

Hope your holidays go well.

Dave

Thanks for understanding Sue! I honestly don't ...

2009-12-21T13:11:36.348-05:00

Thanks for understanding Sue!

I honestly don't know how some of my friends and spend hours trying on clothing and enjoying it.

Take care yourself and the best to you and yours!

Don't even get me started on finding a pair of pan...

2009-12-21T10:14:57.284-05:00

Don't even get me started on finding a pair of pants that fit...I feel your pain. It's ridiculous in the variation of sizing from store to store. Happy holidays and all the best in 2010!

@ The Executioner No, the term does not get reduc...

2009-12-15T20:23:35.641-05:00

@ The Executioner

No, the term does not get reduced, only my overall amortization will. I am trying to get my amortization to equal the remainder of my 5 year term. If I achieve that, then we will have paid off our mortgage in 5 years, like what you are working on.

@ Anonymous

Thanks so much for your post additions. I didn't know about the interest compounding semi-annually. I wouldn't be a great candidate for the Smith Manoeuver because because I would want to pay off the loan asap!

Good Post! Unfortunately, I think a lot of Canadi...

2009-12-15T11:47:29.349-05:00

Good Post! Unfortunately, I think a lot of Canadians don't really understand how our mortgages work.

You could also add that in Canada all mortgage interest compounds semi-annually and not in advance (this is another difference from our neighbours to the south) and is to our advantage

Mortgage interest in Canada can be tax deductible if the funds are borrowed for the purpose if investing a la the the "Smith Manoeuvre" but CRA requires a paper trail to prove your deduction.

Although the mortgage interest isn't deductible, we don't pay taxes on capital gains (provided it is your principal residence).

So by playing within their rules, you are still ma...

2009-12-15T10:10:42.858-05:00

So by playing within their rules, you are still making additional principal payments, but the term won't be reduced? Or will it? I'm still a bit confused.

Well, our mortgage rates are sweet for now. I'm n...

2009-12-15T07:46:06.238-05:00

Well, our mortgage rates are sweet for now. I'm not looking forward to them rising again.

When you get a mortgage here, you commit to an overall time frame ie. 15, 20, 25, 30, 35 yr amortization.

Then you pick the type of mortgage, variable or fixed rate, open or closed.

Finally you pick your term ie. 1-5yrs. That and your credit rating will determine your rate.

You are committed for the duration of the term to whatever rules apply to your mortgage. Our banks don't like it when you pay too fast and too soon so they penalize.

Open mortgages allows you to pay it off any time you want but the percentage is quite high and the term short -- currently 6.55% for a max. 1 year term.

When the term is up, then you renegotiate for the next block of time, chosing the type of mortgage product you wish and this continues until you reach the end of your amortization.

Thus, you are privy to whatever is happening to the world at the time of renewal. We are just "lucky" that the rates are low because the economy has tanked.

Two years ago, we amortized for 12 years, taking a 5 year variable, closed mortgage. When the term ends, I don't want to renegotiate as I would likely have to at a much higher rate.

That's why we are doing what we are doing, within the confines of our mortgage rules. Luckily, we can get very close to our goal despite their rules.

This is the 4th and 5th house I've bought in my lifetime and the first time rates have fallen so dramatically.

Also, in Canada we are not allowed to write off mortgage interest in our income tax.

Ah, I see how it is. You get sweet interest rates...

2009-12-14T20:00:13.973-05:00

Ah, I see how it is. You get sweet interest rates, but you can't pay off your mortgage before a certain time? Is that right?

Hi Lizzie! Thank you! I really don't have any sp...

2009-12-14T11:09:26.907-05:00

Hi Lizzie!

Thank you! I really don't have any special financial traits! Our progress is the result of some big sacrifices and a lot of frugality!

@ Executioner;

We have "closed" mortgages which means we pay a penalty for breaking it.

There are also yearly limits to the amount of prepayments allowed without penalty. For example, I will not be able to put any extra monies towards the ski condo until May.

My biggest mortgage wish right now is to have both done at the same time.

D is happy with the current amortization and would like me to stop all prepayments and let him handle the next 5 years even if it means re-negotiating in 3. I just don't want to see it last longer than 3 more years.

Nice progress. Canadian interest rates are ridicu...

2009-12-13T21:21:34.525-05:00

Nice progress. Canadian interest rates are ridiculously low.

Why pay off both mortgages at the same time? Why not get rid of the condo (higher interest rate), then focus your attention on the main house?

wow, amazing progress. Can you be my financial adv...

2009-12-13T14:43:49.014-05:00

wow, amazing progress. Can you be my financial advisor please!!!!

Thanks so much for the advice nodebtworldtravel! ...

2009-12-13T09:38:54.526-05:00

Thanks so much for the advice nodebtworldtravel!

I hadn't considered online retailers. It is so easy to rely on purchasing from a place where you can actually see and try something out.

Thanks Money Funk! I know you will do well, the ...

2009-12-13T09:35:10.645-05:00

Thanks Money Funk!

I know you will do well, the momentum has started and I believe now that you are focusing energy to that area, you will attract the buyers.

I am not yet ready to unload my piano or antiques. If we ever move, those wiould be the easiest and quickest things to sell as I would use dealers.

D is still working on getting extra contract work so I hope his leads pan out.

The easiest thing for me is to keep slugging it out at work. That's the quickest way for me to make an extra buck.

We have continued to browse the real estate ads for potential rental properties but am not decided if we wish to get into that type of work.

Hey Guys nice to meet you! If you really want to ...

2009-12-11T19:20:15.939-05:00

Hey Guys nice to meet you!

If you really want to save, check the prices online. The warehouse stores are cheap but they have overhead that gets put into the cost.

Unless it is an emergency or something I have to have now, I try to order things online.

Tried to leave a comment last night, but my phone ...

2009-12-11T12:22:52.399-05:00

Tried to leave a comment last night, but my phone wanted to give me problems. LOL.

Congrats on the selling stuff progress! I hope I can do as well.

We just started so we've only broke the $140 mark. lol. But its a start.

So, what are you going to do now that there is not much more to sell?

That's a very good thing!

2009-12-10T09:38:27.273-05:00

That's a very good thing!

Hi Jason; Fortunately no! Because it was a class ...

2009-12-10T09:37:54.538-05:00

Hi Jason;

Fortunately no! Because it was a class field trip, we had to have witnesses sign about it or have taken a picture of the price tag.

And for those of you younger readers, digital cameras weren't available when I was in highschool!

I hope you didn't have to buy the gown and bring i...

2009-12-10T06:44:37.832-05:00

I hope you didn't have to buy the gown and bring it in for show and tell.

regards,

Jason

Yep, but a lot of banks that offered them aren't. ...

2009-12-09T22:55:40.914-05:00

Yep, but a lot of banks that offered them aren't. :)

No kidding, that would be a huge shock for people ...

2009-12-09T09:18:18.279-05:00

No kidding, that would be a huge shock for people who didn't realize what was supposed to happen. Are these mortgages still available?

The US mortgages you hear about are called ARMs, o...

2009-12-08T20:35:48.993-05:00

The US mortgages you hear about are called ARMs, or Adjustable Rate Mortgages. You get a guaranteed rate for a certain time, and then it adjusts afterward. Some unscrupulous lenders were enticing borrowers with low teaser rates, but the borrowers didn't understand that those rates wouldn't last. Not a good situation for anyone involved.