Money Matters Toronto

TTC Bus In 1923

If you commute in our city (or any major city in the world) how can you resist picking up a Metro and browsing through the day’s top headlines? This morning I picked one up and found out 10 things about the TTC. I was amazed to learn that each subway car filled during rushhour is the equivalent to replacing 910 cars in rushhour traffic. That is amazing! A service that many of us take for granted. Here is the top 10 list:

1- One six-car subway train replaces the equivalent of 910 vehicles in morning rush hour, while one bus replaces the equivalent of about 45 vehicles.

2 -The TTC’s fleet consists of 700 subway cars, 248 streetcars and 1730 buses.

3- In 1921, the first motorized buses began operating, and in 1954, the first subway line — from Union to Eglinton Station —opened.

4- By the end of 2009 (that’s just three months away), hybrid buses will make up 40 per cent of the TTC fleet, and by 2012, all buses will be equipped with bike racks.

5- If you don’t have the exact fare when boarding a bus or streetcar and have to pay the fare with a large bill, ask the driver for a refund voucher, which you can bring to the TTC head office for a refund.

6- The door chime on the subway is the first three notes from the Sesame Street theme song.

7- At the Bay subway station, there is actually another unused subway platform on a lower level, often used by film crews. It’s been used in films including Extreme Measures starring Gene Hackman and Hugh Grant, Don’t Say a Word starring Michael Douglas and many others.

8- Wheel-Trans, the TTC’s fully accessible door-to-door specialized system, makes about 5,000 trips each weekday.

9- With 1.5 million passengers each day, the TTC has one of the highest per capita ridership rates in North America.

10- The last year that fare revenues met TTC operating expenses was 1970.
source: Toronto Transit Commission

Click here to view the article by Ellen Roseman in The Toronto Star

This is an “old” video last updated in 2008 (i’d be curious to see how these numbers have changed in the last 12 months) but it serves to give some shocking perspective about the world that we live in how rapidly it is changing, or maybe better expressed how rapidly we need to change!

We should all be aware of these changes to make our roads a safer place. The Legislative Assembly of Ontario carried Bill 118, an amendment to the Highway Traffic Act now bans drivers from using hand-held devices with display screens while operating a vehicle on the road. The bill has undergone several revisions during its consideration, but the new rules of the road will be as follows:

- Holding or using a wireless communication device (a cell phone) or a portable electronic entertainment device (iPod) while driving is prohibited.

- Commercial GPS units along with similar dashboard-mounted devices that provide gauges and displays relating to logistical or navigation uses are fine.

- Using a cell phone or wireless communication device in hands-free mode, as long as you’re not holding it during use, is fine.

- Using any device while pulled-over or parked in a way that you are not disrupting traffic, is fine.

- The systems used by Ambulances, Fire Departments, and Law Enforcement are exempt.

The ban is in effect as of September 1 2009 and will carry a fine of $500. Demerit points will not be included, but depending upon the violation, police will have the option to also use existing careless driving laws for additional penalties.

It is a relief to see that our city is embracing Green technology and incorporating environmentally friendly building practices in our new buildings. Three new office towers; the RBC Centre, Bay Adelaide Centre & and Telus Tower are each a showpiece of environmental design and energy efficiency. This article in the Globe & Mail by Angela Kryhul,  features the new technology being used in the RBC Centre. The new building will harvest daylight, collect rainwater and use Deep Lake Water air conditioning.

It is an encouraging sign when some of our most established business institutions are voting with their dollars to build green with the future in mind.

As part of our business as mortgage brokers in Toronto we also run a private mortgage investment fund called Hansa MIC (Mortgage Investment Fund). Private mortgages are a special and very interesting type of mortgage that most people are not too familiar with.

Although the majority of mortgages are obtained from a bank or other financial institutions,  there are some cases when a private individual or an investor may choose to hold a mortgage directly. There are several benefits to the borrower and investor alike in this type of mortgage arrangement.

You don’t have to be a bank to lend money, it is possible for anyone to offer a private mortgage so long as it is arranged through a licensed mortgage broker in Ontario. Private mortgages are a great investment vehicle which provides monthly income. In addition mortgages are negotiable instruments which can be assumed, renegotiated, and sold as needed. All the while the investor is protected by the security of the real estate on which the mortgage is registered.
From the borrowers point of view, private mortgages can be an excellent alternative when a suitable bank mortgage is impossible to obtain. Reasons why a borrower may require a private mortgage include; need for a second mortgage, poor credit, income tax arrears, tax arrears, construction financing, financing on properties that institutional banks may not consider prime, cases where an individual has recently gone bankrupt or just can’t prove their income. A private mortgage should never be a long term strategy for a borrower, as the interest rates tend to be higher and do not always have the features and flexibility that institutional mortgages offer.

Regardless of whether you are a borrower or an investor a knowledgeable mortgage broker who is specialized in private mortgages is necessary in order to arrange the mortgage and also provide the guidance needed to make informed decisions. If you would like to connect with a real expert in the area call Arnold Molder at 416.461.0204 ext 1. He has been arranging and managing private mortgages for the past 30 years!

DISCLAIMER: please note the purpose of this post is to inform. I am in no way offering investment advise, please consult with your investment adviser.

Yesterday, the shareholders of Toronto based Mortgage Co. Xceed voted to approve a plan to become a schedule 1 bank. This will allow Xceed to take deposits from the public to invest in mortgages. Look out for Xceed as they grow hopefully they will combine innovative products for the consumer with competitive rates.

Currently Xceed is offering the following mortgage interest rates through their Toronto Mortgage broker channel:

-3.94 for a fixed 3 year

-4.24% for a fixed 5 year

Something a little light this morning. Although I am an Apple guy this video produced by Microsoft sparked my imagination. This is the way they see the world 10 years from now…

As expected the Bank of Canada announced this morning that they would leave the prime interest rate unchanged, citing economic development to be proceeding as expected. The Bank of Canada has also reiterated it’s commitment to keep the prime rate unchanged until at least July 2010,
pending controlled inflation. Click here to read the full Press Release.

What does this mean to you?
Your monthly mortgage payment will remain unchanged. There is very little risk of the prime rate changing over the next 9 to 12 months.

Should I lock in?
Surprisingly, very few people heeded our words of warning offered in the last Ratewatch to lock in. Rightly so! Although fixed rate mortgages spiked at the beginning of June, up to 4.49%, today you can lock-in around 4.19% and lenders are offering 3.99% on new mortgages. This means that it is only a matter of time before we will see the standard fixed 5 year rate below 4% again. With a very clear downwards trend of fixed rate mortgages and low risk of the prime rate changing, there is no need to lock in your variable rate mortgage at this time.