Ways to Save on your Mortgage!

With today's economy everyone is looking for ways to save on their Mortgage.  Here are 6 tips to help you save on yours!!!

1. Increase your payment frequency

Make a payment every two weeks instead of every month, and although you'll only be making one extra monthly payment every year, you'll cut your interest cost over the life of your mortgage. Arrange to make your payments at the same time you get paid.

2. Shorten your amortization period

You can choose the amortization up to 35 years that suits you best. Choose the shortest amortization period that you can manage and you'll save on interest.

3. Increase your regular payment

You can increase your payments up to 20% each year without penalty. You'll reduce your mortgage principal faster, which means you'll pay less interest.

4. Choose a mortgage with a prepayment option

Make an extra payment of up to 20% of the original principal each year. You'll pay less interest and be free of your mortgage sooner.

5. Invest your tax refunds and cash windfalls

If you're lucky enough to get a cash windfall or a tax refund, put it towards a lump-sum mortgage payment.

6. Keep your payments high

You may be tempted to make lower monthly payments if interest rates are down when you renew your mortgage. But remember, the less you pay and the longer the amortization, the more interest you'll end up paying over all.
Make payments as high as you can comfortably afford and pay off your mortgage as soon as you can and you'll save on your mortgage.

Mark Carney Repeats that the Bank of Canada May have to Raise Rates

OTTAWA — Bank of Canada Governor Mark Carney has said again that the bank may have to raise interest rates to keep inflation in check as Canada’s economic recovery advances.
“Given the smaller output gap, given the slightly firmer underlying inflation, the possibility of withdrawal of some degree of the considerable monetary stimulus that is currently in place may become necessary, consistent with achieving the (Bank of Canada’s) 2% inflation target,” Carney said in an interview on Friday with Market News. The interview was published on Monday.
“As the expansion progresses, the possibility of some withdrawal becomes more likely, but number one, that’s always going to be guided by achieving the inflation target, and number two, this is happening in an environment of considerable global economic risk, and so it depends importantly on the evolution not just of domestic but global economic developments. So we will certainly weigh any such decision carefully.”

He said it was not necessary to be more explicit about the timing of a possible move but said that Canada was “well into an expansion”.

“The bank’s most recent estimate of the output gap is about half a percent. That puts us in very unusual company,” Carney said. “The economy in our view is growing above trend and will do so over the balance of this year. So the Canadian economy is – relative to the major advanced economies – performing well by any measure.”

The governor said he was well aware of the global risks, and added: “There are also risks domestically, and they’re two-sided.”

He said Canadian inflation expectations were “extremely well anchored”.

The bank left its key overnight interest rate unchanged at a very low 1% on Tuesday but signalled it may have to raise rates at some point.

© Thomson Reuters 2012

What Can a Mortgage Broker Do For You?

A lot of people who have typically gone to their bank for their mortgage are missing out on the benefits of using a mortgage broker. They don’t know that there’s a whole world of potential out there available to them. This article will help provide some valuable insight into what mortgage brokers are all about.

What can a Mortgage Broker do For You?

• Your Mortgage Broker takes the time to understand your mortgage needs
• Your Mortgage Broker will objectively shop for the best mortgage to suit you
• Your Mortgage Broker will make the process of obtaining a mortgage “easy”

What Kind of Mortgage Financing can your Mortgage Broker Help You With?

• Your home
• A second home
• A revenue property
• A mortgage renewal
• Home renovations
• Debt consolidation
• Any other specialized mortgage requirements you may have (construction, land purchase, commercial)

What is the cost to you?

NOTHING. That’s right, it costs you nothing at all. Mortgage Brokers are paid by the banks, not their clients.

It’s all About Customer Service:

• Mortgage Brokers take time to understand your overall financing needs (goals, challenges and dreams)
• You aren’t “just” a number
• Mortgage Broker’s negotiate with the big banks on your behalf. They are the “voice” of their customers
• Mortgage Broker’s don’t just get you a mortgage, they find you an overall financing solution!

The Bottom Line…

• The bottom line is that your bank does not have access to all the lenders and products on the market.
• Banks typically have a limited number of pre-packaged mortgages available to them.
• A Mortgage Broker has access to 40 lenders on your behalf giving you freedom to focus on what’s most important to you

I am available to answer any questions at any time during the mortgage process. Give me a call today!

Erica Wells
Mortgage Consultant
Verico Complete Mortgage Services
T: 604.290.4181
elwells@telus.net
www.superiormortgages.ca

Top 5 Steps to Reduce Debt

You don’t have to hang with your debt 24/7.  There are solutions to effectively kick it to the curb so you can move forward financially, psychologically and emotionally.  Check out our top 5 list of debt reduction strategies – get mean and lean!

5. Call your creditor and request a lower interest rate.  Payments are more effective when the snowball of high interest rates has been slowed down to crawl with a significantly lower rate.

4. Skip Starbucks. Buy your own Tassimo and make your latte from home and to go.  Over a 20 year period you can save $33,000. To make this savings count, throw every dime you would have spent on speciality coffee on one specific creditor.

3. Success breeds more success. Target the creditor with the smallest balance (not necessarily highest interest rate) and throw everything at it including the kitchen sink.  Don't forget to make your minimum payments to your other creditors.  Once you have successfully brought one creditor to a  zero balance, using this strategy, close it down.  You will feel so successful that you will have the momentum to move onto the next creditor.  Remember, out witting debt is a psychological game of cat and mouse. Don’t be the mouse! Meow.

2.  Go to a cash based system.  You can’t pay off a debt if you keep adding to it. Stop using your credit cards. Stick them in a freezer and forget about them.  And, don’t forget that pesky debit card.  Shut it down. Before you know it, you can nickel-and-dime yourself out of your pay cheque by using your debit card indiscriminately.  Stick to cold hard cash. Loonies, toonies, and pennies count too!

1. Don’t give up! Consistency and persistence pays off. Be disciplined and stick to your plan.  Before you know it, you will have reduced you debt significantly.

And, if you have tried the above strategies and investigated other options with little success, book an appointment for a free and in-person consult. We specialise in personal debt restructuring with the goal of reducing debt by up to 70%.  Debt restructuring could be the most strategic move available to get on the road to financial and psychological liberation. 

For more info contact Cait Wilms  T: 604.600.1189 E: caitw@4pillars.ca  Website: www.richmonddebt.ca

Appointment available in Richmond and South Surrey offices.

A Shift in First Time Homebuyer Demographic

The demographics of the typical first-time homebuyer are changing these days.

More and more women today can afford to purchase a property on their own to

build up valuable equity and are no longer waiting to find a life partner before

they pursue the financial and lifestyle benefits of home ownership.

One in four buyers these days is a single female, and new home marketing is

actually starting to reflect that. Women may be ready to jump into the

commitment of home ownership but not all are willing to give up their valuable

free time to do outdoor chores. Thus, single women tend to look for homes

that require little or no maintenance with an option to plant container gardens.

Sound familiar ladies?

The easiest and most popular way to hold on to a maintenance free lifestyle is

to purchase a condominium. Its problem-free upkeep and unencumbered

lifestyle is an obvious benefit to people who don’t want to be tied up every

weekend with chores – there are no lawns to water and mow, and no leaves to

rake. No yard means there’s no fence or deck to repair, and no driveway to

shovel in the winter. Choose a condo and you’ll never have to worry about this

stuff. Condominium members are charged a flat monthly fee to cover

maintenance of the common areas as well as provide prompt service by

reliable tradespersons if there are maintenance problems in your individual

unit. Heating, air conditioning, plumbing and electrical problems are handled

by maintenance staff or service agreements set up by the condo association,

so good help is available at a moment’s notice.

Security is also an important consideration for single women living alone, and

the condo lifestyle can offer such measures as restricted access, a concierge on

duty screening visitors, closed circuit TV monitors, patrolling security guards

and panic buttons in garages to add peace of mind.

Some single women still prefer a more traditional home as their first property.

The appeal of having an outdoor space of your own to entertain, putter about

in a garden and relax can be inviting. A single family home usually offers more

privacy and is also better suited to larger pets. (If you have a pet and decide

to purchase a condo, make sure to check if your pet will be warmly received by

the condo board first – they uphold the rules that the condo owners have set in

place.)

In the end, the style of home you choose (e.g. condo or single family home)

will depend on your lifestyle and your needs. Identifying your needs and

requirements from the very start will help make the process of searching for

your first home easier.

(Article by Sandra Rinomato - hgtv.ca)

Put these home improvements on your 2012 Calendar!

(NC)—With the deepfreeze factor at its annual high, the potential benefits of making

energy saving improvements really hit home. Yet saving energy and money and adding

comfort to your home should always be in season. Industry experts at Icynene

(icynene.com) recommend you put these home improvement tips on your 2012 calendar:

Winter

• Install affordable plastic window-sealing kits, especially where you feel drafts.

• Install foam gaskets behind electrical outlets and switches to reduce air leakage.

• Close the fireplace damper tightly when it's not in use. If you use your fireplace regularly,

consider adding a well-designed insert.

• Replace or clean furnace filters at least once every three months.

Spring

• Consider larger home improvements like replacing windows that are best completed

when the weather is nice. Consider adding spray foam insulation (like innovative

Icynene)

to your attic or in other areas of your home where the summer heat can infiltrate. You can

start saving up to 50 per cent in energy costs all year long.

• Is your air conditioner old or on its last legs? Before things heat up, consider investing in

an energy efficient Energy Star-rated unit. Consult an expert to ensure the size of the unit

is properly matched to the needs of your home.

Summer

• Add window coverings to block sunlight during the day, so your air conditioner doesn't

have to work as hard.

• Replace inefficient incandescent lighting with more efficient compact fluorescent or LED

lighting that also produce less heat.

• Check your hot water tank. If it's warm to the touch it might need some extra insulation.

Check your home improvement store for inexpensive pre-cut tank jackets or blankets.

Fall

• Check insulation levels where you can, like the attic or the floor of a room over the

garage. If you didn't get to it in the spring, install spray foam insulation to seal around

openings and penetrations that let air flow in and out of your home.

• Use caulking, sealant and weather-stripping to create a barrier against air and water

around doorframes, windows and baseboards. Choose the right caulking for the surface.

• Insulate your hot water pipes to reduce heat loss. It may enable you to reduce the

temperature setting on your hot water tank.

www.newscanada.com

Where there's a Will, there's a way!

It wasn’t until my wife and I had our first child that we turned our minds to wills. This was notwithstanding the fact that I had been through law school, been “called” as a lawyer, and practiced for a number of years.

For me, it was one thing to fail to make proper arrangements between myself and my wife but it was another entirely to fail to do so with a young child. Practicing in wills and estates and handling estate litigation files, I firmly believed, as I continue to, that proper estate planning is just another aspect of being a responsible, diligent parent. Estate litigation is a booming practice, and not one  you want your family involved in at the best of times.

Without a will, your assets are divvied up according to a government scheme, one that you may not agree with. You best protect your loved ones and the assets which you worked  so hard to accumulate during your lifetime by having a valid will and reviewing it on a periodic basis to ensure that it reflects your current wishes.

Perhaps one of the reasons why I hadn’t attended to a will previously is, quite frankly, I wasn’t worth much money. I reasoned, why would I care when there wasn’t much to divide up?

There were two specific reasons why this objection was outweighed after the birth of our daughter. First, it allowed us to set up a trust for our daughter, which would allow us to leave our estate to her and ensure that she was properly cared for but to make certain that the funds would be overseen by a “trustee”, in our case a family member, to ensure she wasn’t provided with a whack of cash at a young age (in case she thought that a Ferrari was preferable to the school bus).

Second, we could appoint guardians, in the event that both my wife and I passed away. This is a difficult, but extremely important decision.

There are other steps that my wife and I took in conjunction with drafting our Wills, as a part of our overall estate plan. First, we ensured that our home was in joint names, which ensured that the other would receive it in the event that one of us passed away. We updated the beneficiary designations on our RRSPs and life insurance policies to ensure that it was each other that we had appointed.

In our case we also drafted two separate documents. Enduring Powers of Attorneys allowed us to appoint someone to make financial decisions for each of us once we lost the ability to make decisions on our own. We also executed Representation Agreements, appointing each other to make personal, mainly health-related decisions, after we lost the ability to make decisions on our own.

Finally, my wife and I prepared a list of our assets, which we update from time to time. This can be very helpful for the person that administers your estate and prevents them from having to rifle through your mail or e-mail inbox (if they can find the password) to get your account statements. If you have a safety deposit box or safe at home, you should provide directions on how to access them.

None of the steps suggested above is  overly complicated or expensive or time-consuming, even with a lawyer. They form just one of the many steps that my wife and I took as new parents (including abandoning both our night life as well as sleeping in!) and ultimately provided some reassurance that we were doing our best to safeguard our new bundle of love.

For more information on this topic please contact:

Michael Sinclair

Lawyer
msinclair@kzellaw.com