Payment Frequency Options:

There are multiple options on how you can make your payment

The TWO options that will save you the most money in interest will be ACCELERATED Biweekly and ACCELERATED Weekly

(the accelerated is the crucial part)

An accelerated bi-weekly mortgage payment is when your monthly mortgage payment is divided by two, and the amount is withdrawn from your bank account every two weeks

(vs a Semi-Monthly payment:  your monthly mortgage payment is divided by two and the amount is withdrawn on the 1st and 15th (twice per month) VS every 2 weeks.

Let’s look at an example:

• The example below uses an example 5-year insured variable rate discount as of June 22/2021
• The example below is assuming the Bank of Canada Prime lending rate does not adjust through the entire 5-year term
• Bank of Canada Prime lending rate is subject to change (up or down)
• Lender discounts (variable and fixed) are subject to change
• The information below is for example and illustration purposes only

In June of 2021, you took a 5-year variable rate mortgage at Prime (2.45%) Less 1.10 =1.35%

• Purchase $400,000
• Downpayment (5%) $20,000
• A total mortgage with CMHC premium =$395,200.00
• Amortization=25 years

OPTION (1)

MONTHLY required payment (assuming Prime stays at 2.45%)=$1552.15/month 

Balance at maturity making MONTHLY payments=$326,422.03

OPTION (2)

ACCELERATED BIWEEKLY required payment (assuming Prime stays at 2.45%)=$776.08/every 2 weeks (=approx $1681.50/m when we average it over the year)

Balance at maturity making ACCELERATED BIWEEKLY payments=$318,366.65

(that is a difference of $8055.38 owed in 5 years)

Taking it one step further: 

OPTION (3)

Increase that minimum required payment (calculated on the low variable rate discount) to a payment equal to a fixed rate (we are using 2.09% in this example)

ACCELERATED BIWEEKLY =$845.35

Balance at maturity =$309,963.24

(that is a difference of $16,458.79 owed in 5 years) 

Prepayment Options:

Every lender has flexible prepayment options (allowing you to make extra payments on the mortgage throughout the year without penalty)

This can be done by increasing regular payments (usually a 10-20% increase per year option depending on the lender) OR by doing lump sum extra payments throughout the year.

Each lender has a different policy relating to this- but the flexibility is there, and we are here to help you navigate those options.

By considering OPTION (3) above – you are using your prepayment options to manipulate your payment and lower the amortization (life) and interest paid on the mortgage.

• HRun some example amortization schedules for you so that you can see the different options and balances owed at maturity depending on your affordability
• Move in, get your feet wet with the new bills for the first 3-6 months.
• Then do a review on if you can afford to do even a touch more than your required payment
• Every little bit counts!
• Need some help calculating your best options?  
• We are happy to do complete reviews for our clients whenever you require some extra info! 

It seems like just yesterday that we first started hearing about the COVID 19-virus, and now it’s been almost a year of uncertainty with only a blurry horizon in the future. What that horizon will look like, or when we will reach it, is still unknown but the hope is that we get there soon… and that we can hold our loved ones tight again!

As we all know, life can change in an instant, leaving our best-laid plans torn to pieces. However, it is critically important to pick up the pieces and find the new course we are to take so that despite the interruption, we can get to where we want to be. As a Certified Financial Planner with Wiegers Financial & Benefits for almost seven years, I have experienced with every client some kind of change in their lives and ultimately their financial goals. Given that life is not stagnant, it’s critically important that your plan and goals change with it to keep up.

What kind of life changes can impact your financial plan? Any number of things can change your goals but some of the most common changes are those concerning:

• Job and pension
• Income
• Marital status
• Dependents (children or elderly parents)
• Real assets (e.g. primary residence or rental properties)
• Other investments
• Insurance policies

A proper employee benefits program is a quintessential tool in helping to ensure employee health and well-being. As long as your employees utilize the program, it can help keep them healthy, happy, and focused at work, however, with the changing generations in the workforce – and the fact that millennials now comprise a majority of it – standard employee benefit programs need to change as well.

Younger staff are looking for flexible, digital offerings that let them get what they want out of a plan. They want solutions to support their mental health and wellness. A recent survey indicated that only 53% of Canadians indicated that their mental health was good or very good; this is quite a drop from last year’s report of 67%.[1] An easy solution is to provide an employee and family assistance program (EFAP). While counseling is at the core of an EFAP, it also has many other valuable mental health solutions for employees who are struggling.

A great way to combine the need for flexibility and for wellness is a flex account. A flex account is a pool of money that employees can direct to either a health or wellness spending account. A Health Spending Account (HSA) covers claims for health, dental, and prescription drugs, and is regulated by Canada Revenue Agency. A wellness account, on the other hand, allows you the flexibility of letting your employees choose what they want to be covered.

Some of the most common wellness expenses are gym memberships and sports fees but vet bills and even home office furniture can qualify too. This can be of huge value to employees when at least two-thirds of Canadian businesses have 60% of their staff working from home (and up to 55% of employees will continue to work remotely post-pandemic).[2]

Digital telemedicine offerings are another way that you can offer flexible wellness solutions for your employees. Available through the telephone or through an app, telemedicine offers your employees the ability to connect with a physician or nurse practitioner 24 hours a day, 365 days a year. Canadians are showing higher satisfaction rates when meeting with a doctor digitally and many are even saying that they prefer a digital meeting as a first visit.[3]

Having a range of digital and flexible wellness options for your employees gives you not only a leg up on your competition for recruitment but also lets you take care of your employees’ physical and mental wellness. It’s an investment that for most employers, is well worth making.

Matthew Hill, B.A.

Benefits Advisor, Wiegers Financial and Insurance Planning Services Ltd.

5 Fall Plumbing Tips From JOB Heating and Air Conditioning

Here are 5 fall plumbing tips to help protect your home this season. 

Tip #1: Disconnect and Store Outdoor Water Hoses

Since outdoor hoses are made from rubber, freezing and thawing weakens the material and causes cracks. Disconnecting hoses in the winter and storing them in an area of your home that does not reach freezing temperatures will ensure the longevity of your hose is maintained. If you leave your outdoor hose connected all winter long, any leftover water can freeze and expand. This causes faucets and any connected pipes inside your home to freeze and potentially burst. 

After disconnecting your outdoor house, it is important to check the faucet for any leaks. Faucet leaks can lead to water damage and cause plumbing issues when temperatures drop and things freeze. Once faucets are checked for leaks, it is a good idea to insulate them for further protection.

Tip #2: Shut Off Outside Faucets 

Most homes are equipped with an interior shut-off valve for the outside faucets. Be sure to shut off and drain them so there is no remaining water in the outside lines that could freeze and create plumbing issues.

Tip #3: Inspect Your Hot Water Heater and Ensure Maintenance is Completed

The fall season is the perfect time to drain your hot water heater as it needs to work much harder in the cold months to provide hot water to your household. Maintenance includes flushing your hot water heater to remove sediment build up. The sediment build up is important to remove as it causes rust and can block proper heat transfer. Flushing your hot water heater will ensure it is operating efficiently, saving you money on your hot water bills. 

If your hot water heater is more than 20 years old it may be time to consider a replacement before something goes wrong. You do not want to be stuck without hot water, especially heading into winter.

Tip #4: Insulate Your Pipes

Be sure to insulate any pipes that may be exposed to cold temperatures such as those in your basement and garage. Insulating your pipes properly will prevent them from freezing in the winter. 

It is important to note that it is common for gaps to develop in the areas where pipes enter your home. These gaps between the pipes and the walls allow for cold air to get through. Cold air seepage can lead to pipes freezing and thus increase your heating bill. Luckily these gaps can be sealed using caulking and weather stripping, and taking the time to seal them can prevent larger issues down the road.

Tip #5: Inspect Your Sump Pump

A working sump pump is extremely important to prevent flooding as it removes excess water from the foundation of your property. If your sump pump is left exposed to extreme temperatures it can freeze. Freezing prevents your sump pump from operating correctly and can compromise its ability to protect your home. Be sure to inspect your sump pump this fall to ensure it is working as it should, or have it inspected by a professional if you are unsure.

These are just a few plumbing tips to help protect your home this fall. If you need any assistance with your plumbing, furnace, or home heating equipment, do not hesitate to contact our team at JOB Heating & Air Conditioning.

JOB Heating & Air Conditioning is a Trusted Saskatoon plumbing company. They show up on time, deliver on budget, and leave the work area cleaner than when they arrived! They take pride in their work in this city and surrounding area, so nothing means more to us than testimonials from their clients as their preferred plumber in Saskatoon.

‘Your Comfort is Our Concern!’

JOB Heating & Air Conditioning Are Trusted Saskatoon Plumbing Professionals