Federal Budget Highlights

Hello and Happy Friday!

It has been quite a week in the mortgage world. We were hopping with inquiries regarding the expiry of the 2.99% interest rate and were able to help dozens of our clients lock into the historical low rate. My spring break vacation with the family seems like a distant memory already!

In other news, the Federal Budget was announced and below are the highlights. The Bank of Canada is set to meet April 17th so we will have a better idea of where interest rates are moving next month.

We're Proud to Support the First Annual Shred-A-Thon
If you have any private documents at home that need shredding, bring them all to the Safeway in Ocean Park - 16th and 128th Street Saturday April 14th 10am-2pm. Shredding is by donation and all proceeds go towards the new playground for Ocean Cliff Elementary.

Until next time, I hope you have a wonderful weekend!

FISCAL PLAN
The Federal Government plans to balance its budget by 2014/2015.

It also announced that the results of its review of departmental spending would yield savings of $5.2 billion on an ongoing basis.

There were no significant new taxes introduced.

SMALL BUSINESS MEASURES
SMB - HIRING TAX CREDIT
The Government is extending the Hiring Credit for Small Business for one year, which will provide a credit of up to $1,000 against a small employer's increase in its 2012 EI premiums over those paid in 2011.

SMB - SALES TAX
The Government is taking actions to reduce the tax compliance burden for small businesses. This includes doubling the thresholds for eligibility to use the GST/HST streamlined accounting methods, simplifying administration for partnerships, and improving the rules for paying eligible dividends.

EMPLOYMENT INSURANCE
The Government is limiting rate increases to five cents per year until the EI Operating Account is balanced, after which the Canada Employment Insurance Financing Board will be mandated to set a seven-year break-even rate to be recalculated every year.

NO MORE NEW PENNIES
The Government will introduce legislation to modernize Canada's currency set by eliminating the penny from Canada's coinage system. The Government will no longer distribute new pennies as of Fall 2012.

CORPORATE MEASURES
DIVIDENDS
Additionally, Budget 2012 proposes to simplify the manner in which a corporation resident in Canada pays and designates eligible dividends.

R & D
The Government is supporting innovation in Canada through a $1.1 billion investment over five years to directly support research and development and $500 million for venture capital.

MINERAL EXPLORATION TAX CREDIT
The temporary 15% Mineral Exploration Tax Credit for investors in flow-through shares has been extended for an additional year, to March 31, 2013.

MAJOR PROJECTS
FEDERAL SHIP BUILDING
The Government has devised The Atlantic Shipbuilding Action Plan and the Western Canada Shipbuilding Action Plan. These Action Plans are designed to promote the active participation of small and medium-sized businesses in the supply chains that will result from the building of the ships and therefore creating jobs and encouraging growth throughout the regions.

ENVIRONMENTAL REVIEW PROCESS
The Government will bring forward legislation to implement system-wide improvements to achieve the goal of "one project, one review" in a clearly defined time period. Budget 2012 proposes to streamline the review process for major economic projects, support consultation with Aboriginal peoples, and strengthen pipeline and marine safety.

PERSONAL MEASURES
OLD AGE SECURITY
The Government will adjust the age of eligibility requirement (from 65 to 67) for OAS, which will begin to be implemented in 2023 and will be fully implemented in 2029. This change will not affect anyone who is 49 years of age or older as of March 31, 2012.

Starting on July 1, 2013, the Government will allow for the voluntary deferral of the OAS pension, for up to five years, allowing Canadians the option of deferring take-up of their OAS pension to a later time and receiving a higher annual pension.

TRAVELLER'S EXEMPTION LIMITS
The Government proposes to increase the value of goods that may be imported duty- and tax-free by Canadian residents returning from abroad after a 24-hour and 48-hour absence to $200 and $800, harmonizing them with U.S. levels.

PERSONAL BENEFITS
Budget 2012 is committing $1.4 million annually to the Wage Earner Protection Program.

VBOT BUDGET REPORT CARD
The Vancouver Board of Trade's Government and Finance Committee rated the Federal Budget 2012/2013 with an overall "A" Grade. For more information on the report card visit www.boardoftrade.com. For more information on the Federal Budget, visit www.budget.gc.ca
Your Friend in the Mortgage Business,

Jared Dreyer, AMP
Mortgage Professional
604 649-5991
www.dreyergroup.ca
jared@dreyergroup.ca

End Of The Mortgage Wars?

Good Afternoon, I hope this blog finds you and your family well.

We are just touching base to give you notice that the 2.99% fixed interest rate will no longer be available. We expect this to happen as soon as tomorrow or the latest by Friday.
If you are considering a purchase, refinance or mortgage renewal in the next 4 months, we highly suggest you contact our office to lock in this rate for you.
This is a free process and only takes about 10 minutes. As well, there is absolutely no obligation on your part to take the rate or the mortgage product – it is simply a RATE HOLD.


TWO WAYS TO HOLD THE 2.99% RATE
for 4 MONTHS

1. Call our office now 604 536-3802 1-800-687-9020

2. You can also click on our full mortgage application
This will protect you from raising interest rates and could save you thousands.
Your Friend in the Mortgage Business,

Jared Dreyer, AMP
Mortgage Professional
604 649-5991
www.dreyergroup.ca
jared@dreyergroup.ca


________________________________________
About Dreyer Group Smiles

Dreyer Group Smiles is a program dedicated to giving to facilities that provide safe and transitional housing to children and youth in the Fraser Valley of British Columbia. By providing funds to these programs, Dreyer Group will make a meaningful difference to kids who otherwise may not have a roof over their heads, or hope for a bright future.
Dreyer Group hopes to expand this effort through their clients and business partners. In addition, they plan to raise additional funds through annual events and corporate fundraising initiatives. Dreyer Group is working closely with the Salvation Army to allocate these funds to the children and shelters.


About Dreyer Group Mortgages, A Member of the VERICO Brokers Network

As a senior mortgage consulting team with extensive experience in the financial services industry and thousands of happy clients, we understand what it takes to build long-term relationships through service and expertise. As an independent brokerage, we are not restricted to one financial institutions mortgage options. We provide the best range of financing solutions by accessing over 40 lenders and hundreds of products coast-to-coast.

Each VERICO member is an independently owned and operated business.
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The Social Backgrounds of Female Railway Clerks - 1875-1886

Mid-way through last year, I looked at the first sixteen female ledger clerks employed at the London and North Western Railway’s (L&NWR) Birmingham Curzon Street goods station between 1874 and 1876. However, in the course of my research I actually discovered the staff records of fifty-six female clerks that the company appointed between 1874 and 1886 at eight locations across the company’s network.

While I determined from the records these women’s rates of pay, length of employment, promotional prospects and what their jobs involved, I did not look at their family backgrounds. However, understanding individuals’ backgrounds is important, as they ultimately they determined their employment prospects. Indeed, I have postulated elsewhere that these clerks were possibly the daughters of railwaymen. Thus, I set out to test this theory. To determine the women’s backgrounds, which in the Victorian period were essentially their father’s occupations, I looked for the clerks in census records. Consequently, I found the professions of eighteen of their fathers.

Firstly, my theory that the female clerks predominantly came from railway families seems to be unfounded. Of the nineteen clerks only five had fathers employed by the L&NWR (27.78%).  For example, Margaret A. Peacock, who was employed at Shrewsbury station on the 1 December 1876,[1] was the daughter of Edward Peacock who made Station Master at Tattenhale Station in 1881.[2] Furthermore, in that year William Redford, Goods Agent in Manchester,[3] was father to both  Elizabeth[4] and Isabella[5] Redford, who were both clerks in Manchester Moss Street Goods Station. Lastly, Mary Hannah Hassall, who was also appointed at Manchester Moss Street in 1876,[6] had a brother, James, who was a Junior Clerk at the time,[7] which may also have facilitated her entrance into the company. Thus, a considerable, but not overwhelming, proportion of the women did have some link with the railway.

Of the nineteen fathers, seven could be considered to have been in some form of trade (38.89%). For example, Edith Gould, who joined the Camden Goods Office in 1876,[8] was the daughter of James Gould, a cheesemonger in St Pancras.[9] Additionally, James Harris was a Blacksmith employing one man, [10]  and was the father of Martha and Mary Harris who were employed at Birmingham Curzon Street in 1874 and 1876[11] respectively. The professions of the remaining four fathers were a cabinet maker, someone simply listed as a ‘manufacturer,’ a cigar and tobacco manufacturer and a master jeweller employing one boy.

Four (22.22%) of the fathers had positions in some form of administration. Probably the highest ranked was Joseph Arlom, father of Emma Arlom who was appointed at Manchester Moss Street Station in 1878[12], who was an ‘Inspector of Police.’[13] The lowest ranked socially was Alfred Vigurs, who by 1881 was a clerk at a lamp makers.[14] He was the father of Lizzie Vigurs, who was appointed to the Birmingham Curzon Street office in 1875.[15] The others fathers were working as Canal (or possibly Burial) Agent and a Superintendent of a public baths.

Only two of the fathers (11.11%) had what can be considered unskilled jobs. Frederick Hughes, the father of Martha Hughes, an appointee at Birmingham in 1875[16], was a ‘spoon and fork filer.’[17] The other was a Wheelhouseman in Manchester.

Therefore, it can be concluded that the vast majority of the female clerks had fathers who were in professions that required skill or education. Indeed, sixteen of the eighteen (88.89%) fathers would almost certainly have provided comfortable households for their families including good schooling for their children. Furthermore, the majority of the fathers were in positions that Victorian society considered ‘respectable’, meaning their daughters would have had a good chance of obtaining the positive references that potential employers required. Lastly, while this brief piece of research has shown that familial links to the railway were not necessarily required for the women to become clerks on the L&NWR, it has shown that the basis of their entry was identical to that for male clerks, in that the social class, public standing and educational level of the father were hugely important factors.

-----

[1] The National Archives [TNA], RAIL 410/1837, Register of salaried permanent officers in the Goods Department including clerks, goods managers, inspectors, superintendents, time keepers, accountants, foremen, agents, canvassers and collectors., p.1286

[2] TNA, RG 11/3552, 1881 Census, Cheshire, Tattenhale, District 6, p.1

[3] TNA, RG 11/3473, 1881 Census, Lancashire, Manchester, Heaton Norris, District 12, p.16

[4] TNA, RAIL 410/1841, Salaried Staff Register [No 2, pages 2593-3088] - Miscellaneous departments. Includes staff employed in the following departments: Goods, Cattle, Horse, Rolling Stock, Detective and Canal. Includes station masters, inspectors, detectives and clerks, p.2634

[5] TNA, RAIL 410/1843, Salaried staff register [No. 1, pages 1089-1599] - Goods Department. Includes clerks, goods managers, inspectors, superintendents, time keepers, accountants, foremen, agents, canvassers, collectors, timber measurer, traffic solicitor and cartage, p.1338

[6] TNA, RAIL 410/1837, Register of salaried permanent officers in the Goods Departmentp.1215

[7] TNA, RG 11/4003, 1881 Census, Lancashire, Manchester, St George, District 19, p.71

[8] TNA, RAIL 410/1837, Register of salaried permanent officers in the Goods Department, p.1227

[9] TNA, RG 11/176, London, St Pancras, Regents Park, District 4, p.17

[10] TNA, RG 11/2982, 1881 Census, Warwickshire, Birmingham, St Martin, District 7, p.24

[11] TNA, RAIL 410/1837, Register of salaried permanent officers in the Goods Department, p.1207

[12] TNA, RAIL 410/1841, Salaried Staff Register [No 2, pages 2593-3088] - Miscellaneous departments, p.1338

[13] TNA, RG 11/3940, 1881 Census, Lancashire, Moss Side, District 81, p.59

[14] TNA, RG 11/2835, 1881 Census, Staffordshire, Handsworth, District 20, p.26

[15] TNA, RAIL 410/1837, Register of salaried permanent officers in the Goods Department, p.1207

[16] TNA, RAIL 410/1837, Register of salaried permanent officers in the Goods Department, p.1207

[17] TNA, RG 11/3033, Warwickshire, Aston, Duddeston, District 41, p.19

An Early Railway Manager - A Perpetual Failure

Cornelius Stovin is not a familiar name in railway history circles. To my surprise, he is not even well known amongst those who study the London and South Western Railway (L&SWR), the company for which he worked as its first Traffic Manager from 1839. My interest in him stems from the fact he left the company suddenly in 1852 when it was found that his accounts were seriously in disarray. However, no research has been done on Stovin before he came to the railway, and, therefore, I resolved to find out more. What was discovered was that Stovin was a perpetual failure.

Cornelius Stovin was born in Birmingham in 1802 to John and Elizabeth Stovin, and was christened at St’ Martins Church on 2 June. [1] According to Chapman’s Birmingham Directory for 1801, John was a druggist who also dispensed oil, soap, candles and glue at the Bullring.[2] He was obviously considerably wealthy, as he was able to send Cornelius to Magdalen Hall at Oxford University, which he entered on the 18 March 1820, aged nineteen.[3]On graduation Cornelius moved into Mosley Street, Birmingham[4] and went into business with John Heycott Jervis as brass founders. This would be Cornelius’ first failure in business, and for unknown reasons the partnership was dissolved in August 1826.[5]

Yet, At some point before then he had met Jane Waddell, who he married on 2 November 1824 at St Phillips Cathedral in the city.[6] Jane was the daughter of William Waddell,[7]  who had taken over the ‘Hen and Chickens Inn’ at 130 New Street in 1802. While keeping the inn he also established himself as a coach proprietor there[8] and turned the business into one of the Midland’s most extensive coaching establishments by the 1830s.[9] Clearly, John Stovin and William Waddell were friends, as William named one of his sons John Stovin Waddell.[10] Thus, it is it is very possible that some point after 1826 Cornelius joined  Waddell’s growing business.

On the death of William in 1837[11] Jane, received £5000, which would have passed to Cornelius because of wives’ property rights in the period.[12] I am not one hundred per cent sure what happened next, however, my best theory is that in late 1837 Cornelius set up a coaching business on his own, probably using this money. [13] However, he did not inherit any of William’s business directly, as most of it was taken over by his son, Thomas.[14] Yet, he clearly had some use of the Hen and Chickens Inn site, as shown by the following advert from The Liverpool Mercury on 7 December; ‘Royal Mails and Fast Post Coaches leave the above Establishment (Hen and Chickens Coach Office, New Street Birmingham), to all parts of the Kingdom, immediately upon the arrival of the different Railway Trains.’ The advert was signed ‘Cornelius Stovin and Co. Proprietors.’[15]

For the second time in his life, Cornelius’ business was unsuccessful, and he was declared bankrupt on the 26 February 1839. Indeed, one of the petitioning creditors was John Stovin Waddell,[16] who by then was a coach builder in his own right.[17] Stovin made a poor business decision by setting up as a coach proprietor in Birmingham in 1837, as the railways arrived there that year.  On 4 July 1837 the Grand Junction Railway between Birmingham and Liverpool opened[18] and on 17 September 1838 the London to Birmingham started operating.[19] Furthermore, the Manchester and Birmingham Railway was under construction.[20] Therefore, given I presume the main routes of the Birmingham coaching industry were to London, Liverpool and Manchester, it is logical to suggest that in this period much traffic was being lost to the railways, which would have hit Cornelius hard.

However, three days before Cornelius’ bankruptcy, the London and Southampton Railway’s (later L&SWR) Traffic and General Purposes committee minuted that ‘Mr Cornelius Stovin to be Superintendent of the Traffic Department at salary not exceeding £250 a year.’[21] Stovin accepted the post on the 28 February.[22] Later, in 1840, he was made the company’s Traffic Manager.[23] It is quite possible he got the job through being in contact with an influential L&SWR director, William Chaplin,  who had  also been in the coaching business previously. Indeed, Stovin had the support of Chaplin throughout his at the L&SWR, and this had allowed him to increase his power within the company, despite his temper.

Yet, closer scrutiny of Stovin’s past may have avoided the problems that occurred in March 1852. It is clear that Stovin kept the Traffic Department’s accounts poorly. Like most railways of the period considerable traffic was brought to it by independent carriers. The arrangement at the L&SWR was that these carriers were allowed a rebate from the charges they collected for carriage and credit was allowed for three months. However, in August 1851 the directors’ attention was drawn to the poor state of these accounts, particularly those of a West of England carrier named Ford. Ford owed the company a considerable amount, and immediately after the directors expressed their concern Stovin managed to reduce his outstanding debit to £5000.

But things were going sour for Stovin and his operations were coming under more scrutiny. Thus, in early 1852 he took sick leave and then absconded to the United States in March. Initially, the press reported that there were ‘no known deficiencies affecting the railway company.’[24] However, an investigation, which lasted until July, found that Stovin had been hiding a shortage in the Traffic Department’s accounts of £2921 11s 8d. Chaplin offer to pay Stovin’s return fare so that he could explain himself to the board. But the ex-Traffic Manager stayed in New York.[25] Indeed, on the 19 May his wife Jane and seven children arrived in by the ship London to join him.[26] Finally, the whole family moved to Canada, where Stovin again became a railway manager.

Stovin was clearly an unsuccessful businessman three times over. Firstly, his foundry business failed in 1826, then the foray into the stagecoach industry collapsed, and, lastly, he arranged the L&SWR finances very poorly, costing the company money. Yet, he reached his lofty position by receiving help from individuals who were much more astute businessmen than he, for example William Waddell and William Chaplin.

Ultimately, the Stovin case raises some broader issues surrounding the nature of early railway managers. This was an era when the idea of the professional railway officer was far from established and the ‘Stovin affair’ highlights that the early railways took into their ranks a mixed bag of individuals that could not always be relied upon. However, Stovin was just one example amongst thousands in the period, and more research needs to be done on the backgrounds of other early railway managers to truly find out what their experiences were before coming to the job.

-----

[1] https://familysearch.org/pal:/MM9.1.1/J7Q8-458

[2] Chapman, T, Chapman's Birmingham Directory, (Birmingham, 1801)

[3] Oxford University Alumni, 1715-1886, Volume VI, p.122

[4] Berrow's Worcester Journal, Thursday, November 18, 1824; Issue 6359

[5] The Observer,28 Aug 1826, p.1

[6] https://familysearch.org/pal:/MM9.1.1/NJHT-B2N

[7] Berrow's Worcester Journal, Thursday, November 18, 1824; Issue 6359

[8] Hanson, Harry, This Coaching Life, (Manchester, 1983), p.149

[9] Harman, Thomas T. and Showell, Walter, Showell's Dictionary of Birmingham, (Birmingham, 2006), p.125

[10] https://familysearch.org/pal:/MM9.1.1/NV4T-D94

[11] Death index Oct-Nov-Dec, 1837

[12] The National Archives [TNA], PROB 11/1873, Will of William Waddell, Innholder of Birmingham , Warwickshire, 24 February 1837

[13] Liverpool Mercury etc, Friday, December 7, 1838; Issue 1439

[14] Hanson, This Coaching Life, p.149

[15] Liverpool Mercury etc, Friday, December 7, 1838; Issue 1439

[16] The law journal for the year 1832-1949: comprising reports of cases in the courts of Chancery, King's Bench, Common Pleas, Exchequer of Pleas, and Exchequer of Chamber…, p.13

[17] 1835 Pigot's Directory for Warwickshire, Birmingham, p.543

[18] http://en.wikipedia.org/wiki/Grand_Junction_Railway

[19] http://en.wikipedia.org/wiki/London_and_Birmingham_Railway

[20] http://en.wikipedia.org/wiki/Manchester_and_Birmingham_Railway

[21] TNA, RAIL 412/3, Traffic and General Purposes, and Traffic Police and Goods committees, 23 February 1839

[22] TNA, RAIL 412/3, Traffic and General Purposes, and Traffic Police and Goods committees, 2 March 1839

[23] TNA, RAIL 412/1, Court of Directors Minute Book, Minute No. 1307, 30 October 1840

[24] Reynolds's Newspaper, Sunday, April 18, 1852; Issue 88.

[25] Williams, R.A., The London and South Western Railway: Volume 1 – The Formative Years, (Newton Abbott, 1968), p.219-220

[26] National Archives (US), New York Incoming Passenger Lists, 1820-1957,

$10,000 First Time Bonus, Explained

In a prior release, we reviewed what was believed to be the process for the new BC First Time Homebuyer Bonus. The Bonus was initially referred to as a refundable tax credit, which indicated a process similar to the Federal first time buyer $5,000 tax credit which has been in effect since 2009. If fact, the BC first time buyer new home bonus will be administered quite differently. The different processes are noted below.

Federal Grant :

• First, this is a $5,000 income tax credit claimed when filing your annual personal tax return
• The $5,000 is applied as a tax credit at the basic personal federal tax rate of 15%
• Accordingly the effective value of the grant is $750
• The $750 value is applied regardless of the income of the buyer
• This grant is available to first time buyers, but the home need not be a brand new home

More details can be found HERE
BC Grant :
• The BC Grant is a Bonus for first time buyers in BC
• The Bonus is 5% of the purchase price, subject to a maximum of $10,000
• The home must be a new home to which HST is applied
• The Bonus is scaled back based on income of the purchasers
• The purchaser can apply immediately after completion of the purchase via an application form that will soon be available on the BC Government web sites

More information on the BC Bonus is available HERE

Reducing Railway Industry Fragmentation in the early 1900s

Christian Wolmar has written frequently that one of the major causes of the railway industry's current woes, in terms of operational costs and passengers fares being too high, is the fragmentation of the industry. Britain's railways as they exist contain a myriad of private companies interacting with each other within a web of complex working arrangements, most of which force costs up. Indeed, it is accepted by most experts that separating the management of the trains from the tracks was a disaster.[1]

But fragmentation within the railway industry isn't a new issue and was addressed by railway managers in the early 1900s. In the late 1890s the railway industry's profits were depressed by a mix of poor management, competition, increasing material costs and the growth of high volume low-margin traffic (However, historians are divided on which of these factors played the biggest role). Indeed, in 1885 the industry's operating ratio, which is expenditure expressed as a proportion of revenue, stood at fifty-two per cent. By 1900 this had been driven up to sixty-two per cent.[2]

In response to their change in fortunes, railway companies attempted to reduce costs through numerous means in the first years of the 1900s;  more efficient track maintenance, better locomotive designs, new technologies and improved goods operation. Yet, despite these vigorous efforts to improve how they functioned, inter-company rivalry and duplicated services remained one of the most serious and costly issues for industry leaders. Between 1870 and 1900 the railway companies of Britain, of which there over a hundred, unsuccessfully sunk resources and capital into competing for market share on certain routes and at cities which were served by more than one company. For Example, the Great Western and London and South Western Railways had a protracted battle in the West of England, both in terms of the services they provided and through line building to gain territory. But such competition only served to depress profits, not improve them.

Therefore, late in the first decade of the twentieth century railway companies came together to promote economical working, eliminate competition, pool resources and ultimately reduce overheads. While outright mergers were actively resisted by government, as they would hand companies regional monopolies, railway directors and managers worked around this objection by forming 'working unions'. In late 1907 the Great Northern and Great Central Railways announced an alliance in which they pooled receipts and the management of all rolling stock, lines and works were placed under the remit of a joint committee. It was an arrangement akin to amalgamation, however, it just wasn't a legal union. 

Other companies soon followed suit. In June 1908 the London and North Western and Midland Railways produced a less comprehensive scheme, where all receipts, except those from coal and coke traffic, were pooled, competitive capital expenditure was ceased and cooperative and economical train operations were sought. Indeed, this had considerable success in reducing these two companies' operational expenses. The Lancashire and Yorkshire Railway joined the agreement in 1909. Furthermore, early in 1909 the Caledonian and North British Railways drew up a very similar agreement. Lastly, in August 1910, after nearly a year and a half of negotiation, the Great Western and London and South Western Railways came to terms. [3]

While the fragmentation of the modern railway industry is different in many ways to that which existed immediately after 1900, there is no doubt that in the period knowledgeable industry leaders felt a sensible way to reduce their railway's operational and capital costs was to cooperate. Indeed, the particular success of the London and North Western and Midland Railway in reducing these forms of expenditure through unification, is a testament to the idea that when it comes to railways, collaboration, not fragmentation, can be preferable.

-----

[1] Wolmar, Christian, "Fragmentation is the problem, not the solution", Christian Wolmar's Website, 19 May 2011

[2] Gourvish, Terry, Railways and the British Economy 1830-1914, (London, 1980), p.42

[3] Cain, P.J., 'Railway Combination and Government, 1900-1914', The Economic History Review, 4 (1972), p.633

Mortgage Survey Client Responses

Mortgage Survey Client Responses
Thank you so very much for your overwhelming response to our survey. Below are the final results
98 Completed Surveys

99% of our clients surveyed said they would use our services again

99% would introduce us to friends, family and co-workers.

84% said we exceeded their expectations. This was a funny question because we had these types of responses when someone said we "did not" exceed their expectations...:

"The "no" is not meant to say your office did anything wrong, you met my expectations (as you have done in the past, hence our return to the Dreyer Group )"

and

"You were referred to me as the best so you didn't exceed expectations."

Funny how varied responses can be. That being said though, we will be addressing ways to ensure we exceed all of our clients’ expectations. Our goal is to make you so happy you cannot do anything but tell the world about using our services!
I was new to the mortgage world and appreciated being able to rely on someone for assistance. I also love the updates on mortgage changes and newsletters.
Pam, Mortgage Refinance
Your staff were fantastic and so helpful. I got all the information I needed very quickly and very professionally.
Great Mortgage Service Dreyer Group! John, New Home Purchase
My expectations were to get a mortgage at a fair rate in an appropriate amount of time with someone who was knowledgeable, friendly and accommodating. We got exactly that, it was a convenient, hassle free experience with no hitches.

Deborah and Harold, Renewing their mortgage
We appreciate you getting us a better rate for our mortgage and making it work for us.
Wayne and Roberta, Switching their mortgage from their bank
I FELT THAT YOUR CUSTOMER SERVICE FAR EXCEEDED OUR EXPECTATIONS, AND YOU CONTINUE TO SURPRISE...WITH THE BIRTHDAY CARD ETC... NICE TOUCH AND WE WILL ABSOLUTELY RECOMMEND YOUR SERVICES TO EVERY ONE WE KNOW.... THANKS AGAIN.
Afshin, Self-Employed Mortgage
I have been very happy with all of the services you have offered thus far and would definitely recommend to others.
Kerry, New Construction Mortgage
Your PR is great and all the little extras go a LONG way to personal satisfaction. Your office is professional as well as the staff. The cookies and gift certificate were so appreciated and were just another personal touch that said that you go the extra mile. Thanks again!
Kerry P, Took out equity of his home to purchase an investment property
I was so happy with my experience with your mortgage brokers, I would recommend your company anytime.
Kim and Don, Did a mortgage for their family to buy a cabin in the woods.
Very helpful whenever I have questions. Got me a great rate which I appreciated. Will definitely use you again when this mortgage runs out!
You saved us tons of money on our mortgage!
Rob, Consolidated Debt into one low mortgage payment and rate.
Appreciate the continued relationship through email and cards to our family
Have already recommended you to several friends and colleagues!
Sam and Lisa, First time home buyers
Nice to have someone follow up with me even after providing your services! I continue to receive only helpful information (e-mails etc.) as apposed to junk info.
Brad, New to Canada Mortgage
We have always referred friends and family to your amazing team at Dreyer Group.
Anna, Switched her mortgage from another bank
You made everything so easy...I didn't have to do anything. I really appreciate your service!!
Malinda and Joe, Purchase Plus improvements mortgage
Very helpful and like the email updates. Used Dreyer Group twice in buying my homes.
Always a pleasure doing business
Thanks, Angela! We renewed her mortgage early to lower the interest rate and monthly mortgage payments.
Your team has always helped me whenever I have called. I really appreciate all the help over the years. I would never go back to my bank after using your mortgage broker services.
Jerry and Allen, Purchased a property in Palm Spring

For more information on how we can help you save money on your mortgage, go to www.dreyergroup.ca
or call 604 649-5991
Toll free throughout Canada 1-800-687-9020

Mortgage Penalties In Canada

Good Afternoon, I hope today is finding you well.

Please see below for some recently announced good news for the consumer. It is a new Code of Conduct regarding Prepayment Information for borrows. The overall purpose of this new code is to bring more awareness and disclosure with regards to mortgage prepayment penalties and privileges.

MORTGAGE PREPAYMENT INFORMATION

Yesterday, the federal government published a Mortgage Prepayment Code. The Code will guide all federally regulated institutions in how they communicate the Interest Rate Differential (IRD) to borrowers.
The Canadian Association of Accredited Mortgage Professionals (CAAMP) was involved in the consultation process regarding the Code of Conduct:
Code of Conduct for Federally Regulated Financial Institutions
Mortgage Prepayment Information
Purpose
The purpose of the Code is to ensure that federally regulated financial institutions ("lenders") provide enhanced information in respect of credit agreements secured by mortgages where a prepayment charge could apply ("mortgages") to assist borrowers in making decisions about prepayment of their mortgage.
Lenders currently provide substantial amounts of information relevant to mortgage prepayments to consumers in accordance with the requirements in the applicable federal regulations, including but not limited to federal cost of borrowing disclosure regulations and credit business practices regulations. The information that will be provided under this Code is in addition to existing information provided by lenders to borrowers.
Application and Implementation
Lenders will implement the policy elements of the Code with respect to new mortgages no later than six (6) months from date of adoption of the Code for Element 3 and Element 4; and no later than twelve (12) months from adoption of the Code for Element 1, Element 2 and Element 5. Lenders will apply the Code to existing mortgages where it is feasible to do so. The Code does not apply to mortgages that are entered into for business purposes or to mortgages entered into by borrowers who are not natural persons.
Compliance with the Code
The Financial Consumer Agency of Canada will monitor and report on compliance with the Code.
Manner of Presenting Information
Lenders will provide the information in language, and present it in a manner, that is clear, simple and not misleading.
Policy Elements
1. Information Provided Annually
Lenders will provide the following mortgage prepayment information to borrowers annually:
o Prepayment privileges that the borrower can use to pay off their mortgage faster without having to pay a prepayment charge. Examples include making lump-sum prepayments, increasing the regular payment amount, and increasing the frequency of the payment to weekly or bi-weekly.
o The dollar amount of the prepayment that the borrower can make on a yearly basis under the terms of their mortgage without having to pay a prepayment charge.
o Explanation of how the lender calculates the prepayment charge for the borrower's mortgage (for example, a certain number of months' interest or the Interest Rate Differential (IRD).
o Description of the factors that could cause prepayment charges to change over time.
o Customized information about the mortgage, valid as of the date the information is produced, for the purposes of the borrower estimating the prepayment charge. The customized information will include, depending on the type of mortgage product held by the borrower:
 The amount of the loan that the borrower has not yet repaid
 The interest rate of the mortgage and other factors (for example, rate discount or posted interest rate) that the lender uses to calculate the prepayment charge
 The remaining term or maturity date of the borrower's mortgage
For mortgages where the prepayment charge may be based on the IRD:
 How the lender determines the comparison rate to use to calculate the IRD
 Where the borrower can find the comparison rate (for example, on the lender's website)
o Where the borrower can find the lender's financial calculators that the borrower can use, along with the information above, to estimate the prepayment charge.
o Any other amounts the borrower must pay to the lender if the borrower prepays their mortgage and how the amounts are calculated.
o How the borrower can speak with a staff member of their lender who is knowledgeable about mortgage prepayments. For example, borrowers may contact a staff member through a toll-free number as described in section 5.
2. Information Provided When the Borrower Is Paying a Prepayment Charge
If a prepayment charge applies and the borrower confirms to the lender that the borrower is prepaying the full or a specified partial amount owing on their mortgage, the lender will provide the following information in a written statement to the borrower:
o The applicable prepayment charge.
o Description of how the lender calculated the prepayment charge (for example, whether the lender used a certain number of months' interest or the IRD).
o If the lender used the IRD to calculate the prepayment charge, the lender will inform the borrower of :
 the outstanding amount on the mortgage
 the annual interest rate on the mortgage
 the comparison rate that was used for the calculation
 the term remaining on the mortgage that was used for the calculation
o The period of time, if any, for which the prepayment charge is valid.
o Description of the factors that could cause the prepayment charge to change over time.
o Any other amounts the borrower must pay to the lender when they prepay their mortgage and how the amounts are calculated.
3. Enhancing Borrower Awareness
To assist borrowers in better understanding the consequences of prepaying a mortgage, lenders will make available to consumers information on the following topics:
o Differences between:
 Fixed-rate mortgages and variable-rate mortgages
 Open mortgages and closed mortgages
 Long-term mortgages and short-term mortgages
o Ways in which a borrower can pay off a mortgage faster without having to pay a prepayment charge. Examples include making lump-sum prepayments, increasing the regular payment amount, and increasing the frequency of the payment to weekly or bi-weekly.
o Ways to avoid prepayment charges (for example, by porting a mortgage).
o How prepayment charges are calculated, with examples of the prepayment charges that would apply in specific circumstances.
o Actions by a borrower that may result in the borrower having to pay a prepayment charge, such as the following actions:
 partially prepaying amounts higher than allowed by the borrower's mortgage
 refinancing their mortgage
 transferring their mortgage to another lender
Lenders may make this information available on their publicly accessible Canadian website where products or services are offered and upon request by consumers at the lender's places of business in Canada, including when consumers are pre-approved for a mortgage. Â In addition, each lender will provide on its publicly accessible Canadian website links to information on mortgages provided on the website of the Financial Consumer Agency of Canada.
4. Financial Calculators
Each lender will post calculators on its publicly accessible website for borrowers, and provide guidance to borrowers on how to use the calculators to obtain the mortgage prepayment information they want. Borrowers will be able to enter information about their mortgage into the calculator to get an estimate of the current prepayment charge. Borrowers will also be able to change the information they enter, such as the amount of the mortgage that has not yet been repaid or the remaining term, so that they can see how the payment choices they make affect the prepayment charge.
5. Borrower Access to Actual Prepayment Charge
Each lender will make available a toll-free telephone line through which borrowers can access staff members who are knowledgeable about mortgage prepayments. These staff members will be able to orally provide a borrower with the actual prepayment charge that would apply to the borrower's mortgage at that point in time. These staff members will also be able to provide to a borrower, on request, a written statement of their prepayment charge, accurate as at the time the statement is produced. A lender will not proceed to take steps to pay out a mortgage until the borrower has confirmed that the borrower's intention is to pay out the mortgage.



Your Friend in the Mortgage Business,

Jared Dreyer, AMP
Mortgage Professional
604 649-5991
www.dreyergroup.ca
jared@dreyergroup.ca

The Refreshment Rooms of Spiers and Pond - The Station Refreshment Room after 1870 - Part 2

In my last post I talked about the frequent complaints about the service and food in railway station refreshment rooms after 1870. However, there were exceptions where refreshment rooms were considered exemplary, the most notable being those managed by the catering contractors Messrs Spiers and Pond.

Spiers and Pond was formed in 1851 when Christopher Pond, while seeking his fortune in Australia, met Felix William Spiers in Melbourne. Initially, they rented a room in the National Hotel there, turning it into a catering facility for gold miners called ‘The Shakespeare Grill Room.’ After much success, they soon looked to expand and purchased the Cafe de Paris in the city.[1] In 1858, a Professor Anderson wrote to The Eradescribing it:-

‘Above the bars, and over the gateway you enter, is the Café de Paris, containing a salon, far superior in decoration and appointments to any I know of among the restaurants of London, and a coffee and smoking room fitted up with as much taste and elegance as you will meet in Paris…You may dine here in as much style as anywhere “at home,” and be served with a cut from a hot joint, just as at Simpson’s on the Strand.’[2]

But Spiers and Pond's plans didn't stop there and in 1861 they paid for the English Cricket team to visit Australia. The English team arrived on Brunel’s steamer, the Great Britain, on Christmas Eve 1861 and in the following months played matches against teams from the various Australian provinces. After losing all but one game, they played their last in early May, leaving shortly afterwards.[4] Financially, the cricket team's visit was a roaring success for Spiers and Pond, and, buoyed by its success, in March 1862 they tried to persuade Charles Dickens to conduct a speaking tour of Australia for £10,000; or £5,000 if they bore all costs.[5] He declined.

Why Spiers and Pond returned to Britain and started taking over railway station refreshment rooms is unknown. However, by mid-1864 they had made arrangements with the London, Chatham and Dover Railway to run all the rooms on their line, as well as at Charing Cross Station on the South Eastern Railway when it opened. Rather than Spiers and Pond paying the railways a rent, they would receive a proportion of the profits ‘thus giving to each party to the contract an interest in the extension of the business to be done.’ Furthermore, Spiers and Pond would ‘endeavour to attract customers by the quality and price of their goods supplied.’[6] Unsurprisingly, their refreshment rooms were a great success and, consequently, arrangements were made with the Great Northern Railway for the operation of a refreshment room at King’s Cross station, and with the Metropolitan railway for the provision of services at all their stations.[7]

As part of this deal with the Metropolitan, in 1866 Spiers and Pond opened a refreshment room at the company's Ludgate Hill Station. The Era gave a description:

‘It is now decorated in the most refined taste, and divided into compartments fitted with spring, velvet covered seats, and every possible contrivance to ensure the comfort of those who may make use of it in the future. An enormous stove, oven and fireplace combined, called the “Great Grill Apparatus,” is a prominent object at one end of the restaurant…”

The restaurant opened on Monday 1 January 1866 to passengers of all classes. The publication, referring to refreshment rooms generally, commented that ‘reforms in this branch of what we may call railway administration were imperatively demanded, and these reforms Messrs Spiers and Pond have commenced in the most praiseworthy manner possible.’[8]

In the years that followed the company took over the operation of rooms all over Britain’s railways. At some point before 1882 they received the contracts for all of the refreshment rooms on the Great Western and Midland Railways. Yet, in that year the companies took them back from contractors and operated them themselves (these decisions were later reversed).[9] Furthermore, in 1888 the London and South Western Railway’s rooms were in the hands of Spiers and Pond.[10] Only a more thorough investigation, which I have not time to do, will reveal when different companies made arrangements with Spiers and Pond. However, in 1894 they were operating rooms at the ‘principal stations’ of the following railway companies:

London, Chatham and Dover

South Eastern

Great Western

London and South Western

Midland

Great Northern

Caledonian

Great North of Scotland

North British

Great Eastern

Metropolitan

District

Manchester, Sheffield and Lincolnshire

Cambrian

Lancashire and Yorkshire

Thus, by 1925 Spiers and Pond operated over 200 refreshment rooms in Britain.[11]

Spiers and Pond were universally praised for the quality of their services. In 1866 it was commented that they ‘maintained the highest reputation, and we sincerely trust that their efforts at reforming the system of railway refreshment rooms will meet with success.’[12] The Sheffield & Rotherham Independentin 1869 called them ‘celebrated caterers.’[13] In 1872 it was commented that ‘Spiers and Pond have earned a reputation for their good fare at moderate prices.’[14] A writer in The Fishing Gazette in 1880 commented that he ‘found everything up to the mark’ and that the ‘most courteous attention was paid to the visitors.’[15] Lastly, Spiers and Pond’s arrival in Britain was referred to in 1888 as having caused a ‘gastronomic revolution.’[16]

Therefore, Spiers and Pond refreshment rooms provided passengers with a better quality service than those elsewhere, the quality of which was highlighted in the last post. Nevertheless, what effect this had on improving the provision in refreshment rooms generally is unclear. There is a possibility that it put pressure on railway companies and other contractors to improve their facilities. However, given that most held monopolies at the stations they were serving, and combined with the evidence presented in the last post, I suspect it is unlikely.

----------------

[1] http://www.spiers.net/pond.htm

[2] The Era, Sunday, September 12, 1858

[3] The Royal Cornwall Gazette, Falmouth Packet, and General Advertiser, Friday, April 25, 1862, p.6

[4] The Sheffield & Rotherham Independent, Wednesday, May 14, 1862

[5] The Sheffield & Rotherham Independent, Tuesday, March 18, 1862, p. 5

[6] The Morning Post, Saturday, August 27, 1864, pg. 2

[7] The Era,Sunday, October 2, 1864

[8] The Era, Sunday, December 31, 1865

[9] The County Gentleman; Sporting Gazette and Agricultural Journal, Saturday, November 04, 1882, pg. 1123

[10] The County Gentleman, A Sporting Gazette and Agricultural Journal, Saturday, January 07, 1888; pg. 9

[11] Biddle, George, ‘Refreshment Rooms,’ The Oxford Companion to British Railway History, (London, 1997), p.417

[12] Bell's Life in London and Sporting Chronicle, Saturday, January 06, 1866

[13] The Sheffield & Rotherham Independent, Saturday, May 15, 1869; pg. 6

[14] The Standard, Monday, March 18, 1872; pg. 2;

[15] The Fishing Gazette, Saturday, January 24, 1880; pg. 37

[16] The County Gentleman, A Sporting Gazette and Agricultural Journal, Saturday, January 07, 1888; pg. 9