A Buyer's Lament

posted Sep 27, 2017, 2:53 PM by Donna Telep

More rule changes could make it even harder to get approved for a mortgage. If you have any questions after reading the article below, please give us a call at 604-466-1976

Do You Have a Plan?

posted May 29, 2017, 12:10 PM by Donna Telep

Interest rates are still at record lows and are expected to remain unchanged over the next few months. Is this the time to consider leveraging your home equity to save a ton of interest on your debt?

Key benefits of debt consolidation:

1. Lower monthly payment to improve cash flow.

2. One monthly payment to simplify your finances.

3. It will lower your interest costs.

For example:

How much do you pay on a $10,000 balance on a…

1. Unsecured loan or line of credit at 5% = $42 monthly

2. Credit card at 18% = $124 monthly

3. Added to your mortgage at 2.59% = $22 monthly

It makes good financial sense to consider the savings and benefits when deciding whether or not debt consolidation is the right plan for you.

 

Paying Off Your Mortgage Faster

posted May 29, 2017, 12:00 PM by Donna Telep

Interest rates are the lowest we have ever seen. If your mortgage is coming up for renewal, or if it makes sense to refinance and pay out some higher interest debt, the timing couldn’t be better.

 If, however,  refinancing isn’t an option, we would like to make a couple of recommendations that are easy to do and can save you a ton of interest.

1. Bi-weekly Accelerated Payments. If you can manage the  accelerated payments within your budget, you can knock 4.4 years off your mortgage.

2. Raise your bi-weekly payments by $10.00 each year for the remaining four years of your term, and you will knock another 9 years off your mortgage.

These are just a couple of easy -to-do suggestions to help you be mortgage-free sooner. Remember that every extra penny you pay over your regular payments comes right off the        principal. It’s a win-win!

 

Mortgage Rule Changes

posted May 29, 2017, 11:41 AM by Donna Telep

How do they affect you?

 

The government changes affect all insured mortgages, so if you are putting less than 20% down, these changes will affect you.

· You must qualify at the benchmark posted rate (currently 4.64%) not the contract rate (which could be as low as 2.44%). The result? You will qualify for less.

· The property value must be less than $1 million dollars.

· Only principal residences qualify as insured mortgages;  mortgages on vacation and investment properties can no longer be high-ratio.

· Refinances no longer qualify as high-ratio mortgages; only purchases can have a mortgage of more than 80% of the value of your property.

These changes affect new mortgages only. When your mortgage comes up for renewal, if you do not add new money to the   principal, your amortization and terms will remain the same - even if you change lenders. Nothing will change except the interest rate.

 

GOOD DEBT vs. BAD DEBT

posted May 26, 2017, 2:43 PM by Donna Telep

 

A lot of people think that going into debt is always bad, but there are really two types of debt.

 

GOOD DEBT – Borrowing to purchase something that is going to appreciate in value is considered good debt. Two examples of good debt are:

 

· Buying a Home – A home is an asset which goes up in value over the long term so is considered a good investment. Interest rates on mortgages are very low so your cost of borrowing is reasonable and you are investing in your future each month.

· Student Loans – Investing in your education will increase your future earning   powers and employability, so these are also on the good side.

 

BAD DEBT – Credit card debt, which is usually used to purchase consumable products that depreciate in value, is considered bad debt. Interest rates on these debts are very high, so unless you can afford to pay them in full each month, they are very costly.

 

You do not want to use up all your cash reserves to pay out or reduce debt; it’s good   financial planning to ensure that you have cash reserves for emergencies or future investment opportunities such as RRSP’s .

 

Using good debt to pay out bad debt is always a better choice. You save a lot of interest and reduce your monthly payments so you can have extra cash each month to increase your savings.

 

Call me today to take a look at your investment strategy... Are you on the right track?

How to Pay Off Your Mortgage Faster

posted May 26, 2017, 2:41 PM by Donna Telep

Purchasing a home is a major achievement and the largest investment most of us will ever make. Now the next accomplishment is to pay down that mortgage.

Once you have a mortgage it is so easy to forget about it, as the payments are automatically withdrawn.

So here are a few easy ideas to help you do that faster:

1.   Accelerate your payments to bi-weekly.

2.   Round up your payments to the next $10.00 increment.

3.  Make pre-payments; you can pay as little as $100.00 on any payment date.

4.   Increase your payment when you get a raise.

 If you want to save a lot of interest, call today and I will show you how.

Refinancing - Does It Make Sense?

posted May 26, 2017, 2:35 PM by Donna Telep

Mortgage interest rates remain at record lows and are expected to remain low for another year. 

Would it make good financial sense for me to consider refinancing at this time before rates increase to:

  1.   Make an RRSP Investment. Always a good choice. You are investing in your future and creating a tax deductible expense, which is a win-win.

2.   Pay down some higher interest debt. This will save you a lot of interest and lower your monthly payments. The extra cash flow can be used to invest in RRSPs, make extra payments on your mortgage, or just relieve a lot of stress – all good reasons.

3.   Renew my mortgage early. Does it make sense to take advantage of today’s lower rates and have peace of mind for the next five or ten years?


Call me any time and I would be happy to look at your options to see if refinancing is a good choice for you.

 

Do You Have a Mortgage Plan?

posted Aug 11, 2016, 11:46 AM by Donna Telep   [ updated May 26, 2017, 2:21 PM ]


posted May 22, 2012, 10:30 AM by Donna Telep   [ updated May 22, 2012, 10:40 AM ]


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