PAGE A8, THE HERALD, Wednesday, February 16, 1977

by Central Mortgage

and Housing Corporation

For most families, the
purchase of a new home is
the largest single in-
vestment they will ever
make. As‘such, it deserves
thorough advance planning
and careful consideration of
all the factors involved.

One of the most important
matters to be considered is
the financing of your new
home. Not’ only must you
have the money to make a
down payment, but perhaps
more important, your
monthly income must be
sufficient ta cover mortgage
payments, municipal
property taxes, plus heat,

Autoplan

“Motorists should be on
the Jeokout for two im-
portant changes on their
1977-78 renewal forms for
Autoplan Insurance and
metor vehicle licences,”
said Norman Bortnick,
General Manager
Executive Vice President of
the Insurance Corporation
of British Columbia.

The general manager was
outlining some significant
points in connection with the
1977-78 renewal program.
He said, ‘The first of these
changes concerns the rate
class code. Motorists should
double-check their rate
elass codes very carefully
this year because there are
a number of changes in rate
classes in 1977-78. Any error
on his application form
could affect a motorists’
ability to collect full benefits
in the event of an accident.”

Mr. Bortnick pointed out
that both the Renewal

| Meet the Sales Staff at Jim McEwan GMI

and-

electricity, water and sewer
charges as well as the on-
going maintenance of your

OUSE.

Since the work of real
estate financing is a bit
bewildering to most people,
the following information,
including a brief description
of housing assistance
available from the federal
overnment, may he
elpFul.

With many people the
principal’ question is how
much can a family afford to
spend each month on a
house?

First of all, no two
families are quite alike in
their living and spending

Financing your new home

habits. What one family

‘could handle easily might

put another family of the
same income under.
financial strain. Generally,
no family should spend
more than 30 percent of its
family income each month
on the repayment of the
mortgage loan and.property
taxes, Indeed, some housing
assistance available from
the federal government is
based on the principal that
monthly payments should
consume no more than 25

‘percent of the family in-

come.
Loan repayments and
taxes are considered

together because, in most

renewal information

Brochure and the “Ali About
Autoplan" Guide, both of

- which were issued this year

with Autoplan insurance
renewal forms, carry a rate
class chart. He said, ‘‘All a
motorist has to do is to
compare the present use of
his vehicle and the age, sex
and marital status of the

drivers with the rate class

chart. Then locate your
correct rate class number
on the chart and compare it
with the number in the box
on your renewal form. If
there is a discrepancy in
these numbers discuss it
with your Autoplan agent or,
Motor Vehicle Branch of-
fice. If there are three
asterisks on your renewal
form your vehicle is most
likely not in the rate class
shown. Please consult your
Autoplan agent about the
appropriate rate ciass for
the use of your vehicle.”
The second change on the
Renewal Form this year, to

be discussed by Mr. Bort-
nick was the requirement
for the driver’s licence
number and the marital
status of the principal
operator of each vehicle
which is insured. He said,
‘(A box has been provided on
the Renewal Form in-
dicating driver’s licence
number and marital status
for the first time, and we are
asking motorists to bring
this information with them
when they visit their
Autoplan agent ‘or Motor
Vehicle Branch office. As
your application form will
not be complete without this
information it will save
considerable time and in-
convenience if it is supplied
at the time of renewal."
The general manager
concluded’ by reminding
motorists once again that
applications for 1977-78
Autoplan insurance and
motor vehicle licences must
be completed by midnight,
February 28, 1977.

1 aS

cases, the borrower is
required to repay a loan in
fixed monthly amounts of
principal and interest plus
one-twelfth of the estimated
annual property taxes. So,
when taxes become due on
the property, the bills are
sent by the municipality ‘to
the lender for payment on
behalf of the borrower. -

Following the 30 percent
rule, a family whose ear-
nings total $1,200 a month,
or $14,400 a year, should not
spend more than $360 a
month on principal, interest
and tax (PIT) payments.

Mortgage financing in
Canada may be undertaken
in one of several ways,

- There ate conventional
mortgage loans made by
such lending institutions as
banks, life insurance, trust
and loan companies.
Generally you borrow up to
75 percent of the value of the
property. Conventional
mortgages usually have an
initial minimum term of five
years, although payments of
principal and interest may

based on an amortization
period of 20 or more years.
(Amortization is — the
repayment schedule of the
mortgage loan by monthly
payments over a_ stated
period of time).

At the end of the initial
five-year, term, the
borrower and lender may
agree to extend the loan at a
mutually acceptable rate of
interest. If satisfactory
terms cannot be agreed
upon, the lender is entitled

.to be repaid in full. In such.

cases, the borrower may
seek alternative financing:

- There are National
Housing Act loans made by
CMHC-approved lending
agencies such as banks, life
insurance, trust and loan

companies, An NHA loan
may be as high as 05 percent
of the value of your
proposed house and lot up to
a maximum set for your
region by CMHC. You
provide the remaining five
percent as a down payment.
_For the Ottawa area, $47,500

_is the NHA loan maximum.

All NHA loans made by
approved lending in-
stitutions are insured by the
federal government against
loss to the lender in case of
default by the borrower. The,
fee for this feature, usually:
one percent of the total loan.
amount, is added to the loan.
and is repaid
borrower as part of the
regular monthly payments..

NHA loans may he
arranged with a repayment
period of 25 years or more.!

Like conventional loans,
many NHA loans are
renewable after five years
when the borrower must
renegotiate the interest rate
with the. lender.

+.There are also mor-

tgage loans made directly
by Central Mortgage and
Housing Corporation. At
present, these are restricted
to remote areas and
resource communities
_where there are no lending
agencies close at hand.

Through a variety of
housing programs, CMHC is

encouraging the production

of more affordable housing ©

for Canadian families
earning iow and moderate
incomes. One of the
programs through which
CMHC helps moderate
income families buy a héme
is AHOP, which stands for

by the’

Assisted Home Ownership
Program. . ;

AHOP assistance is
available to dny household
of two or more persons
buying a new house priced
within AHOP limits. In
Ottawa, this means a home
costing no more -than

$38,000. -

Under AHOP, all pur-
chasers, regardless of in-
‘come, are eligible for .a
federal loan whieh is in-
terest-free for the first five

ears and repayable with
interest after that time, or
when the house is sold or
refinanced, The loan will be
uflctet to cover the dif-
ference between market
interest rates and interest at
‘bight percent.

This interest-reducing

‘loan gives new home owners

a hand during the first years

of ownership when they may .
-experience difficulty in

‘managing payments. Later,
‘as they become more
‘established and their family
income increases, they can
presumably afford to repay
thisloan. .
Persons with children,
who need additional help to
keep their monthly
payments under 25 percent
of their income, may in
addition to the loan be
eligible for a subsidy up to
$750 annually in the form of
a non-repayable grant.
Special financing

arrangements are also.
available from CMHC for -

the two forms of cooperative
housing recognized by
CMHC, building
cooperatives where all
dwelling units revert to

individual ownership upon

. completion of the project

and continuing cooperatives
where all units remain in
joint ownership.

. A final financial con-
sideration for the new home
buyer is insurance. If you
are financing your house
with A NHA mortgage, you
must have fire insurance for

an amount at least equal to

the loan. For example, if
you obtain a $35,000 loan,
you will need a $35,000 fire
msurance policy an your
property.

Fire imsurance proviaes
you with one kind of
protection, ‘but there are
other kinds of home-owner
insurance available as well.

A term life insurance
pecicy to be applied against
the mortgage debt if the
principal wage-earner dies
will enable a family to keep
its house, This type of in-
surance is valuable for a

family with growing
. children. .
A third type of insurance,

liability insurance, provides
compensation to strangers
as ‘well as ta members of the

family and friends for in-
juries, or damage to per-
sonal property which might .
occur at your home.
Both fire insurance and
personal liability protection -
are available from private
companies in a package-
policy that also in-
cludes theft and fire in-
‘surance on household iur-
nishings and several other
coverages such as wind and
water damage. :
Because buying a house
and a piece of land is a
complicated business that
involves legal agreements,
you should understand the
full meaning of everything
you sign. You should not
sign anything before con-
sulting a lawyer or notary.
If Rg carefully analyze
all the costs involved in
buying a house, you will not
get any nasty surprises
such as an wuhexpecte
demand for money during
this period of heavy
financial commitment. A
thorough knowledge of what
ou are getting into will help
ring peace of mind and w

do much to ensure. hap- |

piness in your new home.

THERE MUST BE 50 WAYS
‘TO CELEBRATE:
TERRACE’S GOLDEN ANNIVERSARY

it you know ONE call 638-3196
TERRACE ANSWERING BUREAU

TERRACE GOLDEN ANNIVERSARY COMMITTEE

JIM McEWAN
President

‘4475
$5295 |
$5495)
$3395 |
$3995
2595
$2795
$2985

$3695}
$2395
$3195
“4695
$4895)
34985)
$3895
$3995
$3795
$3895

LARRY SHERMAN
Sales

HERB GRINDLER
Sales

STU CROUSE
Sales Manager

: 1975 FIREBIR Formula 350,

Stock no. 6303-A P.B., radio

1976 OLDSMOBILE

Stock No. 7095-A

13976 CHEVELLE ‘=. ¥% avto. Ps. P.s..

Stock No. 7117-A radio, low mileage

‘ ; 1 Q74 CHEVROLET Impata S.W. V-8, auto, P.S., P.8.,

Stock No. 7042-A radio

1975 CHEVELLE

Stock No. 6324-4

1975 ASTRE G.T. 4 speed, radio, hatchback

Stock No. 7033-B

1974 DATSUN $,W. 4-speed, radio, roofrack

Stack No, 6366-A

1 974 MAZDA RX4, S.W., 4 speed, radio

Stock No. 7007-A

11974 METEOR. Rises 500, v-4, auto, PS, P.B.,

Stock No. 6276-4 air, tape

LEO de JONG
Sales

V-8, auto, P.S.,

Cutlass. V-8, auto, P.S,, P.6., air,
radio

Hear pe: Bear pe

Let it be known ‘that !,corpon RowLann Mayor of the
District of Terrace, by the powers vested in me do

S.W. V-B, auto, P.S., P.8., Radio

hereby declare that: ‘
WHEREAS the Association of Kinsmen Clubs has been a vibrant, res
ponsible, Canadian Association of. Service Ciubs devoted to the

concept of voluntary service by hundreds of thousands of me
hers dedicated to serving their communities throughout Canada
since its founding in Hamilton, Ontario in 1920; and

aa

WHEREAS the Association of Kinsmen Clubs has been cognisant of
the needs of our District Municipality and has diligently sought
the development and conduct of timely, relevant programs to meet
the needs and challenges of constantly changing society: and

P WHEREAS the anniversary date of the birthday of our Canadian.Flag
is February 21st; and :

11973 GMC

Stock No, 7I07-A

1972 GMC

Steck No. 7001-A .

51975 CHEVROLET ¥y T. PU. V-8, auto, P.B., radia

4a T. P.U. Stepside, 4 speed, V-3,
radio ‘

Va T. PLU. V-8, auto, P.S., PB.
radio

Stock No. 6325-4 .

1975 CHEVROLET Ve T. PLU, with canopy, V-8, auto,

Stock No. 6342-A P.S., P.B.. radio

1975 FORD 21. °.v. Ranger X17. v.8, auto,

Stock No, 6360-8 “2°

11974 DODGE ‘aT. P.U, V-8, auto, P.S., PB,
radio

Stock No, 6272-A

. 11974 JIMMY 2 Wee! srive. v-8, auto, P.5.,

Stock No. 6262-4 PB Fadl ,

1974 FORD v2 7. P.U. V-8, standard, radio

Stock No, 6361-A

1974 GMC 7. .v.. v6. auto, PS. PB.

Stock No, 7012-4 "atio

WHEREAS the Flag of our country is symbolic of the heritage of
will groups and ethnic backgrounds forming the citizenry of j
pur country; and

WHEREAS the Association of Kinsmen Clubs feels that each citizen
would welcome the opportunity to pause and reflect with pride on §
the rich heritage of accomplishment created by‘the desire, dedi,
cation and determination of those who preceded; and

WHEREAS a day designated HERITAGE DAY would, allow the Kinsmen
Club of Terrace to give the citizens of Terrace an opportunity
to rededicate themselves: and to demonstrate their pride in the
heritage of their country; ' - .

NOW THEREFORE I DO HEREBY PROCLAIM the. month of February. 1977
as NATIONAL HERITAGE MONTH and the week of February 19th to °
February 27th NATIONAL HERITAGE WEEK and more specifically
February 21st, 1977 as NATIONAL HERITAGE DAY and urge all peo-«

ta,ple of Terrace to share and demonstrage jus bad ¢

.

Al Jim McEwan
Motors (Terrace) Ltd.

Deater License No. 14924, Mm