Kelowna Mortgage Broker | Ted Rhind

$10,000 First-Time New Home Buyers' Bonus

2012-02-23T13:50:00.000-08:00

In the proposed BC budgetreleased yesterday the government announced a $10,000 First Time HomebuyerBonus.

It is important to understand the nuances of this program and share it with others. Here are the main bullet points of the program.

First, this is a $10,000 income tax credit - not cash
The tax credit is equal to 5% of the home price, subject to a maximum of $10,000
The tax credit is pro-rated based on your income and phases out for higher income families
The tax credit is applied at the time you file your annual tax return. Hence, it is not to be construed as funds that are available at closing date on a purchase.
The $10,000 tax credit is effectively applied as an offset against your income. In the tax return preparation, that means that you do not get $10,000, but rather get a credit equal to the tax rate on $10,000 of income in your personal tax bracket. Since this is a BC tax credit, not federal, it only applies to the BC tax you pay on your personal income. The typical BC tax rates for individuals is 7.7%. So, you get the equivalent of a $770 tax payment to you.
This credit only applies to brand new homes
This credit only applies to first timehomebuyers

For more information on this program, please call or email me and I can forward you a copy of the proposal.

Understanding your credit report and credit score - Part 2

2012-02-13T10:47:00.000-08:00

Lastweek, I noted that people with a lower credit score can find themselves payinga higher interest rate, or even denied access to certain types of loans. Thegood news is that by taking a few basic precautions, prospective borrowers canprotect their credit report and credit score, and increase their access tobetter rates and a better choice of mortgage products.

Hereare a number of steps that you can take to keep your credit report and creditscore healthy:

Pay your debts on time – always meet due dates.
Don't max out your credit cards – use only up to 50% of a card's credit limit.
Borrow only the amount you can afford to repay.
Check your credit report for mistakes. You can obtain a copy of your credit file free from Equifax (1-800-465-7166) and Trans Union (1-800-663-9980). These free reports will not contain a credit score and it's a good idea to get both reports. You can order more comprehensive reports including your credit score online from these companies, for a fee.

I can advise you on the ins and outs of improving your credit score overtime. Forthose with bruised credit, as your good credit history is established, in duecourse your borrowing options will increase.

Understanding your credit report and credit score - Part 1

2012-02-03T14:57:00.000-08:00

Whatmany prospective borrowers don't realize is that the pricing of mortgages andother loans is based in part on their credit-worthiness. Consumers needto be aware of how their credit is evaluated by lenders, and how they can workto avoid so-called "bruised credit" – people with a lower creditscore can find themselves paying a higher interest rate, or even denied accessto certain types of loans.

Acredit report isa detailed history of how consistently you meet your financial obligations, andprovides a picture of your financial health based on your past behaviour. A credit scoreis a three-digit number, usually between 300 and 900, representing your overallcredit-worthiness, based on personal information from your credit report andother sources.

Bothyour credit report and score are important. When deciding whether or notto grant a mortgage loan, lenders refer to an applicant's credit report andscore, along with a range of other factors such as income, employment history,and size of down payment.

Thehigher your score the more likely you are to be approved for a mortgage andreceive favourable rates because the lender considers you to be a better creditrisk. Several factors are used by the two main credit agencies in Canada(Equifax Canada and TransUnion Canada) to calculate credit scores:

Debt payment history.
Amounts owed compared to your current credit limits with lenders.
How often you seek new credit.
Length of time you have had credit accounts.
Type of credit, such as car loans, lines of credit, credit cards.

Next week: How to keep yourcredit report and credit score healthy.

A peek behind deeply discounted 5-year rates.

2012-01-25T15:53:00.000-08:00

When considering a deeply discounted 5-yearrate, keep in mind that cheapest isn't always best. Strangely, weknow that's true when we're shopping for anything else - but we still tend tobelieve that lowest rate is the one and only factor in choosing a mortgage.But, that low-rate mortgage could actually cost you more in the long run.

An amazing cut-rate mortgage could have youlocked in to a very rigid contract filled with financial "trip lines"that could work against you down the road. That's why it's important to checkthe fine print. For instance, is the mortgage fully closed? That meansyou're not leaving the lender unless you sell your house, so youroptions are limited and you have no negotiating power if your needs change inthe next 5 years. Low or no prepayments: means you have no or limitedability to chip away at your principal to reduce your overall cost. Maximum25-year amortization can take away flexibility you may need later. Manyprudent homeowners take a 30-year amortization but set their payments higherusing a 25-year or lower amortization. This gives them the option to reducetheir payments should an emergency arise or a special need like maternityleave. For first-time buyers too, a 25-year amortization means higher paymentsthan a 30-year amortization and could limit their entry into the market.

Spot a deeply discounted 5-year rate? Talk to mefirst. I'll always help you find the right combination of low rate with theoptions you need to achieve your goals for homeownership and the financialfuture you want.

No Bank of Canada Rate Change For The 11th Consecutive Meeting

2012-01-17T14:40:00.000-08:00

With weaker outlooks for Europe and the U.S.,the Bank of Canada announced earlier today that it is keeping its key policyrate steady, exactly where it's been since September 2010, which makes this thelongest recorded rate pause.

In its statement the Bank noted that "therecession in Europe is now expected to be deeper and longer than the Bank hadanticipated", and that the "U.S. recovery will proceed at a moremodest pace going forward." The Bank noted that while the Canadianeconomy "had more momentum than anticipated in the second half of 2011,the pace of growth going forward is expected to be more modest than previouslyenvisaged, largely due to the external environment."

The prime rate at most lenders will stay at3.00%, which means those with variable-rate mortgages will not see theirpayments change and will continue to enjoy historically low rates. Newvariable rate mortgages are available to qualified borrowers at Prime minus0.10%.

The Bank's next rate decision is scheduled forMarch 8.

And while not related to the prime rate, it isworth noting that fixed mortgage rates are near all-time lows, with 4 and 5year mortgages available at rates that are close to variable-ratepricing.

If you would like to review your options,please let me know.

Mortgage Planning

2012-01-03T13:39:00.000-08:00

Consider a mortgage check up in the new year.

As we begin 2012, consider getting a mortgage check up in the new year to make sure you have the best mortgage strategy for meeting your financial goals.

A personalized mortgage check up from an Invis mortgage professional is a simple way to ensure:

that your repayment approach suits you, for example with payments structured to maximize mortgage principal reduction,
any consumer debt you may have (such as credit card balances) is transferred to a lower interest rate,
you have access to the lowest-cost funds for renovations, education and other major expenditures.

Contact me to learn more about your current mortgage options and how to make your home equity work for you.

First time buyers: Make the most of the Home Buyers Plan

2011-12-15T10:02:00.000-08:00

If you're a first time homebuyer, you can use the federal Home Buyers Plan (HBP) to take out funds from your registered retirement savings plan (RRSP) to use towards the purchase of a qualifying home.

The Plan allows first time buyers to withdraw up to $25,000 from their RRSP (or, up to a maximum of $50,000 per couple) tax free, and have 15 years over which to pay the funds back into their RRSP.

While 44 percent of first-time homebuyers are using the HBP to make a down payment, 46 percent of recent first-time buyers have no RRSP savings to use toward a down payment, according to mortgage insurer Genworth Financial Canada. If you do not have RRSPs, we can show you how to establish an RRSP with borrowed funds, and use the resulting tax refund for a down payment or a lump-sum mortgage payment.

If you or someone you know would like to learn more about the HBP or about saving for a down payment, talk to me. Also, www.Moneytools.ca from the Financial Consumer Agency of Canada has useful information on making a budget and sticking to it.

Bank of Canada maintains key rate

2011-12-06T10:16:00.001-08:00

TheBank of Canada today announced that it is maintaining its key policyrate. In its statement the Bank said that it expects a weakerinternational outlook "to dampen GDP growth in Canada through financial,confidence and trade channels. The economy also continues to facecompetitiveness challenges, including the persistent strength of the Canadiandollar."

TheBank also said that it expects that the inflation rate in Canada will continueto decline owing to "reduced pressures from food and energy prices andongoing excess supply in the economy."

Theprime rate at most lenders will stay at 3.00%, which means those withvariable-rate mortgages will still enjoy relatively low rates. A newvariable-rate mortgage can in many cases be obtained by qualified borrowers atPrime minus 0.20%, or 2.80%. Home equity lines of credit andvariable-rate credit cards are also typically linked to the prime rate. The pricing for new fixed-rate mortgages is influenced by trends in the bondmarkets, rather than the central bank's key policy rate.

TheBank's next rate announcement is scheduled for January 17, 2012.

For more information on current interest rate trends, and themortgage that fits your life, please contact me.

Smart Home Renovations

2011-11-24T16:11:00.000-08:00

Why not do a home renovation project that allows you to live better now and make your home more saleable later? Think cost-effective improvements that enhance curb appeal or boost energy efficiency.

The Appraisal Institute of Canada compared typical costs for renovations versus the impact on a home's selling price to come up with a "payback range" for common projects.

Bathroom reno: 75% to 100%
Kitchen reno: 75% to 100%
Installing a deck: 25% to 75%
Exterior siding: 50% to 75%
Flooring upgrade: 50% to 75%
Basement reno: 50% to 75%

Talk to me today – I can introduce you to your renovation financing options, to get you started on making the most of your home.

A Mortgage Check Up

2011-11-15T15:31:00.000-08:00

Get the Most from Your Financing with a Mortgage Check Up

Have you thought about your mortgage lately? Your financial picture can change significantly over time, and having the right mortgage strategy is an important part of making sure your financial needs and goals are met.

A personalized mortgage check up is an easy, no-obligation way to:

· ensure that your repayment approach suits you, for example with payments structured to maximize mortgage principal reduction,

· ensure any consumer debt you may have (such as credit card balances) is transferred to a lower interest rate,

· ensure you have access to the lowest-cost funds for renovations, education or other major expenditures.

Common reasons for a mortgage check up:

· You are planning to have children

· You want to explore your investment options

· You or your spouse have had a change in employment

· You are looking to start or buy a business

· You would like to renovate your home

· You would like the assurance of fixing your mortgage payments

· You are trying hard to manage your payments

· You can't remember the last time you assessed your home financing strategy

It can pay to book an appointment with me to determine if you are getting the most use out of your mortgage features. Call me today.

Tips to Reduce Your Credit Card Debt

2011-10-21T11:10:00.000-07:00

Mounting credit card debt is a financial challenge for many Canadians these days. If you find that you've been overspending, it makes sense to look into how to limit your exposure to credit card debt, and the stress that comes along with it. Here are some suggestions:

· Pay off credit card debt in full monthly to avoid high interest costs.

· Know the grace period on your credit card.

· Limit card usage for a specified period of time to help you reduce credit card debt.

· Limit cash advances.

· Make it a personal rule to spend only what you can pay off in a given month.

· Make paying off debt a priority in your financial plan.

If you find that you cannot pay down your credit card debt to your satisfaction, you may wish to consider a mortgage strategy to consolidate this debt at a lower interest rate. Contact me to discuss your mortgage options.

Renewing Your Mortgage - A Valuable Opportunity

2011-10-03T14:32:00.000-07:00

Think of your mortgage renewal as a valuable opportunity. A chance not only to take advantage of today's great rates, but also get a mortgage product that better fits your current needs.

When you receive a renewal form from your current lender, don't simply sign it without knowing all your options. If you do so, you could be paying a higher rate, and end up with a mortgage that might not be best suited to your needs.

Instead, talk to me – I will discuss your interest rate options, and can arrange a rate hold for you.

I will also help you with a customized mortgage strategy. By the time your mortgage comes up for renewal, you are most likely in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage product that is best for our needs and goals. For example, you may wish to access your home's equity to consolidate other debts, or perhaps help pay for post-secondary education.

At renewal time, make sure you get the most from your financing. I can speak to any concerns you may have about interest rate trends and advise you on what to do as your mortgage renewal approaches.

Don't forget: "For Your Great Mortgage Find, Call Ted Rhind".

The secret to the sudden increase in variable rate mortgages.

2011-09-23T10:57:00.000-07:00

Why could I get Prime minus .90 last week and today it is Prime minus .25? September 22, 2011 (Vancouver) – A great question, says the Mortgage Brokers Association of BC (MBABC), especially when fixed interest mortgage rates are remaining the same. The quick answer? As with many things, it all boils down to money.

Over the last couple of months, banks and other lenders have been offering historically low variable interest rates to qualified homebuyers in an effort to attract new clients and mortgage business. In the short term, lenders have been prepared to accept these low profit margins with the knowledge that, as the prime rate inevitably rises, so too will their profit on variable mortgages – a similar ‘loss leader’ tactic used by retailers to get consumers into their door.

“However”, says Geoff Parkin, MBABC’s president, “the recent announcement by Bank of Canada governor, Mark Carney has changed the mortgage lending landscape.” Carney stated that, because of poor performing global markets and continuing economic uncertainty, the benchmark interest rate would remain unchanged. The long-term outlook indicates continuing low fixed interest rates with no significant increases to the Prime rate. “In a nutshell”, says Parkin, “the bank’s theory of anticipating rising profits on variable rates was proven wrong. They’ve had to quickly respond to this situation by reducing the variable rate discount in order to gain back profit.”

What does this mean for consumers who have variable rate mortgages? Much of the same, says Parkin. “We continue to see low fixed rates and the variable rate is under 3.0%. There may still be value in going variable over fixed, but because consumers all have different financial situations and mortgage needs, we recommend they obtain expert financial advice from their MBABC mortgage broker.”

Bank of Canada Keeps Key Rate The Same

2011-09-09T13:02:00.000-07:00

The Bank of Canada announced on September 7th that it is keeping its key policy rate steady, a move that was widely anticipated in the markets.

In its statement the Bank indicated that there was less of a need to increase its key rate due to some deterioration in the global economic outlook. It mentioned the European sovereign debt crisis and a shallower than expected recovery in the US, but also robust growth in emerging-market economies. The Bank noted that while "Canadian economic growth stalled in the second quarter," it continues to expect "growth will resume in the second half of this year, led by business investment and household expenditures..."

The Bank's next rate decision is scheduled for October 25.

The prime rate at most lenders will stay at 3.00%, which means those with variable-rate mortgages will still enjoy relatively low rates. A new variable-rate mortgage can often be obtained by qualified borrowers at Prime minus 0.60%, or 2.40%. Home equity lines of credit and variable-rate credit cards are also commonly linked to the prime rate. The pricing for new fixed-rate mortgages is influenced by movements in the bond markets, rather than the central bank's key policy rate.

The Pitfalls of Adding Parents or Children to the Title of your Home.

2011-08-30T11:40:00.000-07:00

Adding parents or children to title in order to qualify for a mortgage may seem like a reasonable request. After all, helping the family in need is a noble undertaking. However, before making changes to title, it is important to understand the unintended consequences.

First are the tax implications for the parents or children who not living in the house. Their interest may be subject to tax on the capital gain when it is sold. Consider too the situation where any one of the owners is a non-resident of Canada (as defined by Canada Revenue). When non-residents of Canada dispose of real property, the purchaser will require a Canada Revenue Clearance Certificate from the non-resident seller and if this cannot be produced at closing, the purchasers may hold back anywhere from 25% to 50% of the sale proceeds until a Clearance Certificate is produced.

In addition to tax exposure, adding others to title may expose the home to creditors. Creditors don’t care if the title is held jointly with parents or children for convenience only. If they find an interest in a house and they have a judgment against an owner, they will likely try to secure their judgment against that owner’s interest in the title. Whether or not they succeed, there will likely be steep legal bill incurred while defending the title from the creditors.

Even if none of the owners have creditor problems, the consent and cooperation of all of the owners is required if the property is to be sold, refinanced or otherwise dealt with. Even owners only on title for convenience will have to sign all of the documentation that deals with the title to the property. What happens if any of them are out of the country or worse, if any of them either become mentally incapacitated or decide that they don’t want the home sold? Consider too what would happen if any of the owners on title later goes through separation and divorce and whether the home would become an asset to be fought over in the matrimonial dispute.

All of that being said, there are still times when it may make sense to add parents or children to the title of a home, but it is strongly advised that this be done only with the guidance of a legal advisor.

Should you wish to discuss this further, please don't hesitate to call me.

Getting the Most For Your Home!

2011-08-17T15:32:00.000-07:00

In any real estate market, prepping your home so that potential buyers see it in its best light can mean that your home sells more quickly and possibly at a better price. Here are a few simple steps that can yield big dividends:

Check the curb appeal – make sure that the front yard and front porch / entranceway is clean and free of any messy looking items such as recycle boxes.

Get it fixed – repairs are important: make sure that bathroom tiles are not cracked, or the kitchen faucet doesn't drip, to give two obvious examples.

Spruce things up in the kitchen – if this room is in need of a remodelling, you can update the space quickly and inexpensively with new curtains, new cabinet knobs, and a fresh coat of neutral paint.

Thoroughly clean – you may wish to hire a professional cleaning service to ensure that everything in your home from floor to ceiling has been carefully cleaned and/or dusted. Power-washing the exterior is also a good idea. Make sure rooms are free of extra clutter.

Brighten up your home – very clean windows and higher wattage bulbs do wonders for making a space seem airier and bigger.

Don't get too personal – anything directly connected to you should be stashed from sight, such as toiletries in the bathroom or framed family photos, so that potential buyers can easily imagine themselves living in the home.

For advice on your home financing options, be sure to give me a call.

Searching for the right home.

2011-07-27T11:24:00.000-07:00

Being very clear about your housing needs is the starting point of a successful house hunt. Make a list of your priorities, and only go to properties that have those features. Falling in love with a home that's too big or small for your future needs, or a fixer-upper if you're not handy, could mean problems down the road.

Working with a local realtor who understands your needs can help you narrow down your search and make home viewings much more efficient.

Buyers spend an average of six to eight weeks trying to figure out where they want to live, according to the National Association of Realtors (US). However, once a neighbourhood is selected, most buyers end up purchasing a home after a few home tours.

Home Buyer's Tip:

Create a House Hunting Toolkit

Here are some "things to bring" on your excursions:

· A notebook
· A digital camera
· A tape measure (to see if your larger furniture will fit in a new space)
· A small flashlight
· A street map of the area

Having these items on hand can make looking at properties more productive and enjoyable. Call or email me for your own copy of a house hunting checklist.

Home security while on holidays.

2011-07-19T10:32:00.000-07:00

If you're planning some summer travel, consider these tips to help make sure your home is protected while you're away on holidays.

1. Put your mail and newspapers on hold.

2. Let a neighbour know where you are going and leave a contact number.

3. Make sure your house looks lived in. Have someone park their car in your driveway at night. You could also ask a neighbour to put a bag of trash at your curb on garbage day.

4. Set your lights, a radio and a TV on timers, in various rooms.

5. Make sure all doors and windows are locked before you leave. Place a bar or stick of wood in the lower track of sliding doors or windows.

Now you can relax and have a great vacation!

Fast-tracking your mortgage.

2011-06-28T10:34:00.000-07:00

When it comes to putting your mortgage on the fast track, a little can go a long way. Here are some strategies for saving on interest costs and shaving years off your mortgage.

Increase your payment frequency. Opt for biweekly accelerated payments – take your current monthly payment and divide it in two, then set those payments for every two weeks. You'll make 26 payments a year instead of 24, and pay off your mortgage significantly faster than you would if you were making monthly payments.

Amortize frugally. While 35-year amortization periods are fairly common, don't assume that's the best option for your situation. If you can afford the higher payments, opting for a shorter amortization period will not only get you debt-free sooner, but save you thousands of dollars in the long run.

Make lump sum payments. The portion of your monthly blended mortgage payment allocated toward interest is significantly higher in the infancy of your mortgage, and decreases gradually as you pay down the principal. This means that the sooner in the life of your mortgage you make a lump sum payment – whether it's your annual bonus, your income tax refund or just savings you've socked away throughout the year – the more dramatic its long-term effect will be.

Adjust your payments. If your term is coming up for renewal, you may be able to secure a lower monthly payment by taking advantage of current interest rates, which are still relatively low. But if you can still afford the payments you're making now, keep them the same amount – you'll be paying down more towards the principal without affecting your current cash flow. Likewise, if you get a raise, consider allocating a portion of your pay raise toward increasing your monthly payment – your monthly budget will never know the difference.

Things to know for buying a home! - Part 2

2011-06-16T14:09:00.000-07:00

The spring house hunt is here in markets across Canada. For those navigating the home purchase process, this week we look at additional home buying tips:

6. Borrow up to $25,000 for your down payment from your RRSP – tax-free! If you are a first-time buyer, the Homebuyers Plan (HBP) allows you to withdraw up to $25,000 from your registered retirement savings plans (RRSPs) to buy or build your home. Ask me for more details about this program.

7. Understand closing costs. When buying a home, it pays to be informed about closing costs, which can represent up to three per cent of the purchase price, including: land transfer tax, lawyer's fees, appraisal fees, title insurance and home inspection fees.

8. Know your financing options. Many lenders offer mortgages which feature a 5% down payment, or in some cases 100% financing. If you borrow more than 80 per cent of the purchase price, your mortgage must be insured, typically by the Canadian Mortgage and Housing Corporation (CMHC), Genworth Financial or Canada Guaranty.

9. Don't do it alone – explore the benefits offered by a professional mortgage broker (like me). Mortgage brokers act as a one-stop shop for planning advice and the best rates. I work with prospective homeowners across Canada to provide valuable advice before and during the home buying process.

Things to know for buying a home!

2011-06-01T15:25:00.000-07:00

For most Canadians, buying a home is the single largest financial transaction they will ever encounter and it's critical that prospective homebuyers prepare themselves before they start their search.

This week we look at the some tips for those navigating the home buying process:

1. Know what you can afford. A mortgage pre-approval offers peace of mind by helping you determine the price range of homes you can shop for and the maximum mortgage you can afford. Remember that final mortgage approval is also based on your information and the property that is to be mortgaged.

2. Lock-in a mortgage rate before you begin shopping for a home. Many financial institutions will lock-in a rate for up to 120 days when pre-approving potential borrowers for a mortgage. Remember to renew the 120-day period if mortgage rates fall during this time, or better yet let an Invis mortgage professional do this for you.

3. Be specific about your lifestyle needs. Remember to consider not just the home itself but the property as a whole, including the neighbourhood and its proximity to work, shopping, restaurants, and other important places you'll be spending your time at.

4. Don't confuse an appraisal with a home inspection – you need both! An appraisal determines the worth of the property by estimating the market value of the land and building. A home inspection inspects the adequacy and condition of the building and all major systems.

5. Place conditions on your offer. Conditions provide you with the flexibility of withdrawing your offer if you are unable to obtain the necessary financing, or if the inspection reveals structural problems with the home. Even with pre-approval, homebuyers who make an offer without conditions do so at their own risk.

Smart Spending Strategies

2011-04-29T14:00:00.000-07:00

These days, many of us know we should be more careful with our money. However, being cash conscious doesn't mean you have to feel like you're on a tight budget.

There are some simple strategies to manage your spending, to help you reach your financial goals sooner.

Follow the money: Have a plan detailing your financial commitments and outlining your long-term goals. Knowing exactly where your money is going month by month is a key step to saving for the long term.

The 10% approach: Almost everyone can afford to take ten per cent of their regular earnings to put aside in a savings account. Take the money out just after you are paid and you won't even notice it's gone. This beats keeping an excess amount on hand, as it removes the temptation to buy non-essential items.

A weekly allowance: Consider giving yourself a weekly allowance ensuring you have enough to buy groceries, with some extra for incidental spending and other expenses.

Up your mortgage payments: Try increasing the contribution you make to your mortgage each month. The more cash you put toward your home, the faster you'll be able to pay off your mortgage or access home equity for other projects or investments.

Keep high-interest debt in check: With high interest rates on most credit cards, it’s essential not to run up your credit card balance. For larger purchases, use savings from your salary/income, or consider accessing your home’s equity.

Contact Kelowna Mortgage Broker Ted Rhind

250 859 3463

Bank of Canada Holds Steady on Key Rate

2011-04-12T17:17:00.000-07:00

The Bank of Canada announced earlier today that it is holding its key policy rate steady, a move that was widely anticipated in the markets. On the upside, the Bank noted in its statement that recent economic activity in Canada has been stronger than it had anticipated and that “the global economic recovery is becoming more firmly entrenched.” However, the Bank also declared its concern that a high Canadian dollar “could create even greater headwinds for the Canadian economy.”

The Bank’s next rate decision is scheduled for May 31.

The prime rate at most lenders will stay at 3.00%, which means those with variable-rate mortgages will still enjoy relatively low rates. A new variable-rate mortgage can often be obtained by qualified borrowers at Prime minus 0.75%, or 2.25%. Home equity lines of credit and variable-rate credit cards are also commonly linked to the prime rate. The pricing for new fixed-rate mortgages is influenced by movements in the bond markets, rather than the central bank’s key policy rate.

Contact Kelowna Mortgage Broker Ted Rhind
(250) 859 - FIND (3463)

Debt Restructuring – It Pays to Have a Plan

2011-04-04T16:13:00.000-07:00

Many Canadians are carrying consumer debt from several sources – credit cards, car loans, personal loans – and are paying much more in interest costs than they should be. An option that many are turning to is paying off higher interest debts with funds secured through a refinanced mortgage that has a lower interest rate.

Debt restructuring can offer a simple way to better manage your borrowing costs. Some who restructure opt for lower monthly payments which create a larger monthly cash flow. Others who restructure opt to shorten the amortization of their mortgage. Paying off your mortgage in a shorter amount of time can easily save you several thousand dollars.

Most importantly, a well thought-out debt restructuring plan can set you up for success, because at the end of the amortization period, your total debt is zero. With revolving credit – such as credit cards – you may be paying a lot in interest without ever attacking the principal.

I will be glad to take the time to review your financial needs and advise on how to use the equity in your home to reduce the interest paid on debt drastically. By restructuring your borrowings you gain more control over interest costs, leaving you with more money at the end of the month.

Contact Kelowna Mortgage Broker Ted Rhind
(250) 859 - FIND (3463)

Spring market success: tips for homebuyers

2011-03-22T08:27:00.000-07:00

Keep your credit clean. Before you start to look for a home, make sure your credit report is in order. Your mortgage consultant can advise on how to check your credit and remedy any errors or problems.

Get pre-approved. Your mortgage broker can easily arrange a pre-approval. You’ll get a rate hold, which protects you against rising rates for a set period while you house hunt. And whatever the rate trends, a pre-approval will give you good sense of how much you can afford.

Decide on your priorities. What do you need in a home? What are your wants? Thinking about this carefully before you start to look at properties will help make your search much more efficient.

Find a good Realtor. A good real estate agent working for you exclusively makes all the difference when checking out new neighbourhoods and identifying suitable properties.

Have the property inspected. You need to know exactly what you’re buying. If major repairs are needed, this could impact the purchase price.

Get legal advice. Make sure you consult with a real estate lawyer and review the purchase agreement before signing on the dotted line. Ensure that any verbal representations from the seller are written into the purchase agreement.

Contact Kelowna Mortgage Broker Ted Rhind
(250) 859 - FIND (3463)