From my Family to Yours,
We would like to wish You A Merry Christmas and a Happy, Healthy, Prosperous 2012.
Tuesday, December 20, 2011
Is the Best Mortgage Rate Important?Mortgage clients have often said "I need the best mortgage rate, what rate do you offer?"
While the client is always right, and I know you always want to provide the best rate and terms, but do you convey the need to look at the "extras" when selecting the "best" mortgage. Extras include:
Clients can be swayed by even a 0.1% savings on mortgage rates. But when you do the math, the relative importance of the "extras" becomes clear. A 0.1% savings on a typical 5-year $250,000 mortgage amortized over 25 years equates to:
A savings of just $840 over five years on your mortgage payments
Just one of the extras above could offset this many times over. Think about this the next time a client asks what your best 5 year rate is!
Provided by GoMax CRM
10 things to put on your Holiday Checklist
PLUS...Year-end financial to-do list
The Holidays are upon us. Here's how to stay well organized, so you can enjoy them the most.
1. Do your online shopping first. Order gifts on the internet now, to allow time for shipping, returns and getting them wrapped.
2. How are you fixed for glassware? The holidays often feature bigger entertaining. Make sure you have enough glasses and dishes for parties and meals.
3. Do your holiday meal menus. Decide what you'll be cooking and what others will bring. Make up a master grocery list for your centerpiece dish.
4. Do your nonperishable shopping. Get in all canned goods, pantry staples and bottled beverages.
5. Clean the house. Keeping the house neat makes decorations stand out. And clean out the refrigerator to make room for those big holiday dishes.
6. Got kids? Get batteries! Make sure you have them on hand in all the right sizes.
7. Shop for your fresh foods. Get these ingredients two or three days before you'll need them.
8. Set the table ahead of time. That way you can concentrate on the food prep the day of the feast.
9. Don't forget fresh flowers. Get them two days before to give blooms time to open up.
10. Charge camera and video batteries. Charge spare batteries too, if you have them.
Now you're ready to relax and enjoy family and friends!
YOUR END-OF-THE-YEAR FINANCIAL CHECK-UPS
Now is the right time to take a look at a few financial matters:
1. Review health and dental care choices. Many employers allow you to make changes to your benefit plans now. Check with doctors and dentists to make sure they're still in your plan's preferred provider network and that your family has adequate coverage.
2. Review use-or-lose accounts. Pretax Flexible Spending Accounts (FSAs) are set up this way. Review your plan to see if you have some spending to do, or if your employer offers a grace period. Even then, make sure 2011 expenses are still allowed in 2012.
3. Review your withholding. Check the withholding calculator at the CRA website. If you haven't been withholding enough to cover your taxes, you might want to increase the amount. Under-withholding can result in penalties.
4. Get ready for 2011 taxes. Check last year's returns to see who needs to send you what tax documents, and by when. Make a list and follow up if anyone holds you up at the beginning of the year. Also, check last year's return for itemized deductions. See if you should make deductible purchases now or wait until 2012.
Note: Be sure to consult with a tax professional before making any decisions related to your tax situation.
5. Set your 2012 financial goals. Now is the time to write down what you'd like to achieve financially next year. Save money for a down payment on a new house? Start a college fund for your kids? Put more into your retirement fund?
Remember, we're always here to answer any questions.... Have a great day!
PS With today's extremely low mortgage rates and home prices more affordable than ever, many people are up-sizing, downsizing or refinancing. Please call or email us now to discuss your situation.
For many Canadians, their mortgage is something that goes into auto pilot until it comes due, just another bill that needs to be paid. You might assess your other finances, but your mortgage is set in stone, right? Actually, it should not be that cut-and-dry, especially when you take into account the rest of your financial picture. A mortgage should be a key part of an overall financial strategy, and not something that is simply signed and forgotten.
As your lifestyle changes you will want to ensure that you have a mortgage strategy that fits your financial needs. Whether you're just newly married, starting a family, or planning for retirement, it makes sense to reassess your mortgage when you enter into a new life stage because your borrowing requirements can shift.
If you're just getting started you want to focus on building good credit and ensuring that you can manage the debt you've taken on. As you get busier with work and family and need to balance many commitments, you may need some added flexibility. For example, getting a line-of-credit as part of your mortgage can help manage larger purchases or expenses like university tuition, renovations, a wedding, new career, vacation or new vehicle.
When you have established equity in your home, you may want to look at leveraging that equity for investments, business, or a revenue property. This may be a strong consideration if you are worried that you aren't saving enough for your retirement years.
You may also want to revisit your mortgage if you are making more or less money than you were when you began your mortgage, or if you're carrying too much high interest credit card or other debt that is eating away at your monthly cash flow. By consolidating that debt into a new mortgage you'll save on interest costs, have one easy payment, and boost your monthly cash flow.
At least annually, it is important to re-examine your mortgage to make sure it's meeting your current needs, and is on track to help you reach your financial and homeownership goals. Be sure to always benefit from expert advice, and make sure you have a mortgage strategy that is properly structured and integrated into your overall financial picture.
Friday, December 16, 2011
As we quickly approach the RRSP season, there are ways to take advantage of one of the better tax breaks Canadians receive. There are mortgage options that maybe just suitable for your needs.
The use of cash back hat you can receive on a refinance for your mortgage can be used towards an RRSP contribution. You may pay a higher interest rate, but you get the benefit of an RRSP contribution and a tax refund that you can then put down towards the mortgage. The investment return must be greater than the cost of funds for this model to be feasible. By doing this, you will pay down your mortgage in somewhat the same time frame as if you would of left it, but now you have increased your net worth and have prepared yourself for the future with the RRSP investments.
Compliments of GoMax Solitions Inc.
Monday, December 12, 2011
|This edition of Rate-Watch has our latest, best national rates for Canadian mortgages. You may qualify for even better discounts or regional specials, so be sure to contact us to learn about all your rate options. |
In This Issue
Our Best Rates
*Denotes new business only on 45 day Quick Close
Rates are subject to change without notice. Fixed mortgage rates shown in table above and quoted variable mortgage rates are available nationally to qualified individuals.
Five ways to pay off your mortgage faster
For most of us, paying off a mortgage as quickly as possible is a priority. Here are some ways to pay down extra principal early on, to shorten the life of the mortgage and the interest you'll pay over the years.
1. Round your payments up – this little extra adds up over time
2. Pay a lump sum whenever possible
3. Increase payments when you get a raise
4. Make bi-weekly payments – you'll end up paying more toward the principal each year
5. Keep payments the same when mortgage rates have fallen
We can advise on which mortgage strategy is right for you - contact us today.
Mortgage Intelligence, Inc. 600 - 5770 Hurontario St., Mississauga, ON L5R 3G5