CategoryMoney saving tips

Posted January 6, 2014 Consumer Debt

How to get rid of Holiday bills and start building wealth.

Most Canadians suffer with their highest personal debt load in January, when the “holiday hit” arrives and your credit card statements let you know just how much you spent on the festive season. It’s especially hard if you already had a burgeoning debt load before the holidays.

This year, make the best New Year’s resolution ever: resolve to clear that debt, and start building wealth. Continue reading “How to get rid of Holiday bills and start building wealth.”

Posted December 17, 2013 Money saving tips

Top 10 Mortgage Tips for 2014

A peek at the year ahead: Our Top Ten Mortgage Tips for 2014!

Your home may be the biggest investment you’ll ever make. That means you want to be smart with your mortgage. Although we can’t say for sure what mortgage rates will do – or how the housing market will shift – we have compiled our top tips for the year ahead; sensible strategies for today’s homebuyers and owners.

1. Variables are back. Several lenders are offering strong “prime minus” rates that could save you thousands in interest. And the Bank of Canada is still holding their key “overnight rate” very steady and very low… making variable-rate mortgages a sensible option right now. Fixed versus variable has always been a challenging mortgage decision. Let us help you decide which financing option best meets your needs.

2. Don’t sleepwalk through your mortgage renewal. Don’t miss out on an opportunity to save thousands on your mortgage. When your lender sends you a letter saying it’s time to renew… then it’s time to get an expert second opinion. We’re independent and we have access to over 50 lenders. If there’s a better deal, we’ll find it.

3. Pay your phone bill on time!Paying your bills on time has always been the most important credit habit. Equifax recently started to include phone companies on credit bureau reports – so your lender can see if you have any delinquencies with your phone bills. Look like a good borrower.

Continue reading “Top 10 Mortgage Tips for 2014”

Posted November 9, 2013 Money saving tips

Tips on how to reduce your mortgage penalty

Interest rates are still near record low levels. You’ve heard your co-workers, friends or family brag how lucky they were to renew into these once in a lifetime rates.

But how you do you take advantage? If you break your fixed rate mortgage then you face an enormous prepayment penalty…we’ve seen reports of $10k, $15k, $20k and even $30k in penalties….Wow!

Well, here’s a few tips…

-first, if you are in a 10 year fixed rate mortgage, and your are at least 5 years into the term, then the maximum penalty is 3 months interest (this is a little known fact… Section 10 of the Interest Act of Canada).

-One more way to reduce the penalty is to utilize the annual prepayment privilege that’s within the mortgage. Most mortgages have between 15% and 25% prepayment privileges which equates to a 15% to 25% reduction in the penalty…. Continue reading “Tips on how to reduce your mortgage penalty”

Posted October 18, 2013 Money saving tips

Is there a better mortgage rate out there?

You’re 2 years into your mortgage term. You got a great rate… or so you thought…? But now you aren’t sure. So much talk about record low interest rates… You begin to question.. Maybe there’s a better deal out there? Did you choose the right product and Lender? Has your mortgage advisor or broker contacted you during those two years? Does this sound familiar?

We’ve all heard of buyer’s remorse…. That’s when you make a purchase, only to regret spending the money days or weeks later. I’m seeing a lot of people second guessing their mortgage decision recently. And I have news for you… RELAX! There is a way to check to and see if you made the right choice, and better still, there is a way to see if you can do better today. Continue reading “Is there a better mortgage rate out there?”

Posted July 31, 2013 Interest rates

Choose short term money for long term gains.

Only recently has 5 year fixed rate become a product worth considering when it comes to paying the least amount of interest on your mortgage. Studies prove that short term mortgage funds are the cheapest way to finance a house.. this includes Variable rate mortgages.

Historically, Variable rate and short term fixed rates have had lower rates than long term rates. And yet, the BIG SIX BANKS, the Federal govt, and several popular finance experts have preached 5 yr fixed. ‘You must take 5 year fixed so you know what your rate is.’ That’s a load of nonsense. It’s true, that over the past 2 years, 5 yr fixed did make more sense given that the spread between Variable and Fixed was less than my target of 1.00%. (I like to see a 1.00% spread between Variable and 5 yr fixed before recommending Variable). Continue reading “Choose short term money for long term gains.”