My home is my…

My home is my castle! It’s also your greatest wealth building tool. Home equity can build nicely by chipping away at payments and through increasing home values, ultimately creating a terrific repository of wealth and making your home not only your castle, but so much more!

My home is my castle – My start and my future. Over the long term, residential real estate has been a very strong asset, showing excellent appreciation. The goal is to not help pay your landlord’s mortgage, but instead have that money build your own equity. I can help make that reality come true. Get in touch early; good advice can save time, money and stress.

My home is my castle – Our daughter’s postsecondary education. Your home may allow you to invest in your greatest asset – your children! The cost of higher education can be daunting, especially if you haven’t prepared for it. Tuition is just part of the cost. You also need to consider accommodation, food, textbooks, supplies, and transportation. Your home can be the most cost-effective financing.

My home is my castle – My ability to retire my way.  A reverse mortgage can greatly assist cash strapped retirees who need to pay off their debts and live comfortably in their family home. Reverse mortgages are also a strategy for the well-heeled who want to unlock the value of their homes for wealth-building strategies or to enhance their retirement. You may also want to line up a secured line of credit lined up before you retire.

My home is my castle – Our renovated dream home. A smart home renovation can both increase your home’s property value and improve the way you live in your home. Putting a renovation on your high-interest credit card can wipe out the value you’re adding and create future financial stress. Whether you are looking at buying a fixer upper, or renovating your current home, I can help.

My home is my castle – My smart investment strategy. Many Canadians are building personal wealth with an investment property, which is often viewed as a pension plan, particularly since so many Canadians are not covered by workplace plans. Rental income typically pays for most or all the expenses and property appreciation has often outperformed stocks and bonds over the long term.

My home is my castle – Our freedom from credit card debt. If high-interest debt is choking your cash flow, you may be able to move that debt to your lower-rate mortgage. You’ll get a fresh start that will allow you to save thousands in interest, boost your cash flow, have less stress with one manageable payment, and be mortgage free quicker. You’ll get the financial reset you need to start building wealth.

I’m here to make sure you get the most out of homeownership. Get in touch at anytime!

10 ways to plug the money leaks!

The fresh start of the new year makes it a great time to review your finances and particularly your spending. Whether you are saving to buy a home or pay one off, your “money leaks” can add up to some big bucks over time. Here are ten ways to find some of your missing money and help you save over the long term:

1. Watch unconscious spending. Track your spending and consider your impulse buys at grocery, gas station, convenience and other stores. If impulse buying is a big culprit, always make a list and stick to it, only grocery shop once a week and never on an empty stomach! 
2. Know your prepayment penalty. When choosing between mortgages, be sure to compare how the early payout penalty will be calculated. If you ever need to get out of your mortgage early, having the right mortgage could save you thousands.
3. Convenience costs.  It’s a lot easier to spend more than you intend when you exclusively use your credit card because you aren’t seeing the money. You might not be so liberal with your money if you had to hand it over. Consider withdrawing a fixed amount of cash for your spending every week.
4. Renovate over relocate. The right renovation might be all it takes to turn the house you are in into the home of your dreams. It is almost always less expensive to renovate than to relocate. I have great renovation financing options for 2020.
5. Examine your bills. Take a good hard look at your monthly bills and go through them line by line. Some of them may be for services you don’t use or can live without. Even if the amount is small, why have it charged every month?
6. Renew with your eyes open. When your lender sends out a letter suggesting you renew your mortgage at their current offer, get advice. This is your opportunity to negotiate the best possible deal and save big over the long term.
7. It doesn’t hurt to ask. Whether you are signing up for internet or buying a car, ask “is this the best you can do?” or “can you make it more affordable?”  Do research in advance so you are prepared and knowledgeable on all things related to what you are buying.
8. Speed up your mortgage pay down. Change from monthly payments to weekly or biweekly payments. Or take your tax refund and put it against your mortgage principal. Your interest costs will go down with every dollar you reduce on your principal.
9. Don’t leave money on the table. Take advantage of all incentives that are available to homeowners. First-time buyers can take advantage of the Home Buyer Tax Credit that provides up to $750 in federal tax relief. There are also many incentives available when you make energy saving investments in your home.
10. Plug your biggest money leak: high interest. All the savings you make in lifestyle choices mean nothing if you don’t put a plug on paying high interest  If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. Using home equity to pay down debt is one of my specialties.

I’m here to save you money in 2020 and throughout your mortgage years. Get in touch at any time!

Financial comfort and joy!

It’s the most wonderful time of the year! And, it’s also the busiest. It can be difficult to get through the holiday season without at least some level of increased stress.  If financial stress is something you are concerned about, then add something new to your holiday to-do list this year - a holiday debt-check!

Why think about debt just when you’re getting excited about the holidays? Well… that excitement is the reason you want to have a cool, intelligent appraisal of your financial situation. It’s tempting to overspend at this time of year. That’s why so many Canadians suffer from “plastic shock” when their credit card bills arrive in January.

Do a quick assessment. Are you carrying too much credit card or other high interest debt that is eating up too much cash flow? If the answer is “yes,” it’s worth having a conversation about streamlining your finances. You don’t have to wait until your January bills arrive, you can do a debt check before the holidays are fully upon us.

I have access to some great rates and can help set you up with a smart plan with sensible payments, and smooth sailing through the hectic holidays and into the new year.

Worried that your locked-in mortgage means your options are limited? I can do an assessment to determine if the savings each month will far outweigh any penalties. Here’s one client example:

Joe’s and Gina’s mortgage, car loan and credit cards totalled $300,000. Since they had enough equity in their home (minimum 20% required), I helped them roll that debt into a new $304,000 mortgage. Even though they paid a fee to break the existing mortgage, the payoff was considerable:

                                                                        Current                           NEW

                                          Today        Monthly Payments*     Monthly Payment*

Mortgage                         $250,000                $1,195                             $1,453

Car loan                           $  25,000                $   495                             $       0

All credit cards                $  25,000                $   655                             $       0

Total                                                               $2,345                             $1,453

That’s $892 less each month - a huge improvement in cash flow! Joe and Gina are planning to put tax returns and holiday bonuses against their mortgage principal – and they’ll be out of debt well before their original timeline – with some real peace of mind about their finances.

While refinancing is not an option for everyone, I have access to other financing options that can help. If you can benefit from this kind of financial restructuring, get in touch. I love to help at this time of year. Financial comfort and joy: that could be one of your best gifts!

  *3.09% current and new mortgage, 25 year am. Credit cards 19.5% and car loan 7%, both at 5 year am. OAC. Subject to change. For illustration purposes only.

Thank you for your support during 2019!

It’s been a phenomenal year of learning, growth and accomplishments. I have so enjoyed working with my fabulous clients, and meeting many new friends thanks to your referrals.  Looking forward to another successful year in 2020! Thank you for your confidence and trust.

Climate change and your mortgage

Buying or building an energy-efficient home or making energy-saving renovations to your existing one can give you a more comfortable and healthier living space, while also reducing greenhouse gas emissions. And investing in energy efficiency will lower your costs for
years to come!

If you paid mortgage default insurance when financing your home, you can also get a big savings boost thanks to special energy efficiency programs available from Canadian mortgage insurers. Mortgage default insurance is required when your downpayment is less than 20% and is only applicable to homes priced below $1,000,000.

Homeowners building or purchasing a qualifying energy-efficient home are eligible for either a 15% or 25% mortgage default insurance premium refund depending on the level of energy efficiency achieved. Savings can be quite substantial!

Existing homeowners who make retrofits to improve energy efficiency can also apply for this refund by contacting the mortgage insurer that insured their mortgage. You’ll be required to complete an NRCan energy assessment evaluation pre and post retrofit, and you’ll need to improve your home’s energy efficiency by the required amount.

Applications are accepted from the borrower within 2 years of the closing date of the mortgage and supporting documentation must be no more than 5 years old.

Having an energy efficient home is a win for your lifestyle, the environment, and your pocketbook! If you have questions, please get in touch at any time.

Negative interest rates – really!?

Negative rates are an interesting trend in Europe and Japan right now. How is it possible that anyone would hand over their money only to end up with less at maturity? Does that make sense?  Similar to how you pay the bank to rent a safety deposit box or pay your investment advisor a fee, with negative rates, savers are in effect paying to have their wealth stored with an institution they trust. These savers want to safeguard their wealth with certainty instead of investing in their current uncertain and slow-growth economies. On the flip side, for borrowers, it means that they will pay back less than the amount they borrowed, which will fuel more borrowing. Here in Canada, the central Bank is holding rates based on a much stronger Canadian economy. Without a crystal ball, we don’t know for sure where rates are heading, but remember that I have your back and will always stay up-to-date on the current environment and how it may impact you.