## The apps to take with you when you buy your next home

There is no free lunch and astute people understand the free software is not always correct and is sometimes full of bugs and errors. Below is an example of why one should always have their bullshit meter (BSM) on 24/7.

If you are looking at \$300,000 plus mortgage why would anyone risk mortgage calculations by a free app or free computer program written by a novice with no experience in mortgages.

For \$20 you have peace of mind that your calculations are correct when you verify the Lenders calculations.

The journalist below in the article needs to do some mortgage homework and verify claims made by people he interviews.

The two glaring mistakes/confusing terminology he overlooked or did not question made me chuckle at his level of ignorance concerning mortgages. First the American standard for mortgages is not annual compounding its monthly compounding for mortgages and personal loans. Secondly, perpetuating the myth, interest on Canadian mortgages is calculated semi annually is sloppy journalism and wrong. Interest in Canada and the USA on mortgages and loans is calculated at the end of the month (for monthly payment mortgages), every month and its simple interest, period! The two words, semi-annual compounding are  legal, mathematical vernacular that serves no purpose other than to confuse most people and inform mathematicians as to how the interest factor is calculated. For a monthly payment mortgage the interest factor is used EACH MONTH to calculate the simple interest owing for the use of the money for that month that just elapsed. As an example, if an annual interest rate of 12% is used the American monthly interest factor would be 0.01 and the Canadian monthly interest factor would be 0. 0097588. For a \$100,000 mortgage an Americans interest portion of their first blended payment would be\$1000 while for a Canadian with a \$100,000 mortgage the interest portion of their first blended payment would be \$975.88. If anyone doubts these facts then just Google my name and you will discover that I really did learn my grade 12 mathematics and I still understand what I learned?

## The apps to take with you when you buy your next home

WHEN ASKED, BOTH HOMEBUYERS AND MORTGAGE SPECIALISTS ALIKE WHOLEHEARTEDLY RECOMMEND (THE CANADIAN MORTGAGE APP). THE DEVELOPER SAYS IT HAS BEEN USED MORE THAN 2.1 MILLION TIMES WITH MORE THAN 3,000 FIVE-STAR REVIEWS IN THE VARIOUS APP STORES.

Whether you are a first-time home buyer, relocating or simply want to renegotiate, mortgages don’t exactly lay down a welcome mat. Now that warmer weather is in the forecast and home-buying season is getting into full swing, Josh McConnell reviews some of the free mobile applications that can help you make sense of the complicated mortgage process so you can get on with the fun part of buying a home.

Platforms iOS, Android, BlackBerry Developer Bendigi Tech Inc.
At a glance This is the app everyone loves to talk about when it comes to mortgages. When asked, both home buyers and mortgage specialists alike wholeheartedly recommend it. The developer says it has been used more than 2.1 million times with more than 3,000 five-star reviews in the various app stores.

What to expect The interface is incredibly easy to use and slick — from the way numbers are inputted to the slider bars to the side menu. But, most importantly, it is loaded with information and rates to help you calculate exactly what you need, whether that’s a variable rate, fixed rate, weekly vs. bi- weekly payments, factoring in income from a tenant, or numerous other variables. Additionally, based on location, it can also calculate first- time home buyer rebates and land transfer taxes.

Bonuses  There is a database of local experts for you to search, which is convenient if you want an all-in-one solution. The app also has some nice extras like graphs, an affordability calculator and the option to expand your amortization schedule.

But… The list of local experts seems to be the developer’s own database, which the experts pay to be in ( a source of revenue for the company). It would be nice to have it linked to other databases or even real estate listings for a truly complete solution.