Buying Revenue Property

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Buying Revenue Property

If you’ve been thinking about buying a revenue property, given the current lending environment and the slower real estate market – which has shifted to a buyers’ market – there are several reasons why now may be the ideal time for that property purchase.

Interest rates have also been dropping to historic lows as of late, which allows more flexibility and choice in the financing for your revenue property.

And although the real estate market slowdown has seen prices drop and interest rates dip, rental income has not wavered – making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

During a buyers’ market in the real estate cycle, sellers are far more flexible and willing to work with you. The traffic through their doors is down substantially and the multiple offers are just not there as we see in a seller’s market. As properties stay on the market with longer listing times, negotiating a better deal could offer you even more added flexibility and savings.

The inventory of available properties has increased with the buyer’s market which allows you time and choice to make that right property decision. The government has also just announced the Home Renovation Credit and with the slowdown in the construction trade renovations to your new revenue property has become a much easier process.

The tax credit of up to $1350.00 is available on home renovations. Homeowners will be able to claim the 15-per-cent credit on renovation work worth more than $1,000 and up to a maximum $10,000 for any home improvements between now and Feb. 1, 2010.

In order to take advantage of this opportunity, the key is to work with a professional who is an expert in this niche and can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decisions and feel at ease throughout each purchase.

It is important to structure your investment properties correctly to enable the opportunity down the road for you to increase your portfolio. I have helped many investors build their portfolios for the long term and look forward to working closely with you to help you realize your rental goals.
I can work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals and the steps involved to get you there.

Buying Revenue Property

Refinancing Your Mortgage

Refinancing Your Mortgage

Many homeowners wished they’d asked more questions when they got their mortgage. They assume there’s nothing they can do until the mortgage matures. Not so. A mortgage broker can review your mortgage at any time and offer tips on how to save money. Typically, we think of a fixed term mortgage as a non-negotiable contract. And it’s true that there are financial penalties to re-negotiate. But many homeowners ask mortgage brokers for a mortgage analysis – a detailed look at the penalties versus the payoffs - to determine whether it’s worth refinancing to get a lower rate, finance a renovation or roll other debt into the new mortgage. Like many Canadian homeowners, you may find that refinancing makes sense. There are two approaches to refinancing: you can simply pay out the penalty on your existing mortgage and start fresh with a new mortgage, or you can opt for what is termed a “blend and extend.” Firstly, understand that you won’t reap immediate rewards when you refinance it will take time to see the savings, since you’ll have some up-front penalties. So if you’re going to be selling the home in the next year, you’re unlikely to benefit from refinancing now. Your mortgage broker can help you to assess your “payback” period: the length of time required to see any savings, based on the penalties you will incur and the difference between your existing rate and your new one. Speaking of penalties, what does it cost to get out of your existing mortgage? Generally, you can expect to pay out the greater of either a) three months’ interest, or b) the interest-rate differential. The interest rate differential can be high in effect, your mortgage lender will expect you to pay them the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates. If you are close to the end of your mortgage, these penalties may not be too severe, but if you are early in your mortgage arrangement, the cost can add up. Don’t be put off by what looks like a big penalty: it’s only one factor in your analysis. So is it worth it? Only your mortgage professional can tell you for sure, but many homeowners are experiencing significant savings – even with rate differentials of two points (or possibly more). Also factor in whether you can roll other high-interest debt into your new mortgage, slashing your overall interest costs. It’s also important to consider whether your long-term goals become more attainable. Begin with a visit to a mortgage broker, who has access to rate information from a broad selection of lending institutions – and who can provide you with the kind of detailed analysis you’ll need to assess your options.

Refinancing Your Mortgage

Mortgage Plain - Talk

Mortgage Plain-Talk

What’s the difference between “amortization” and “term”? There are many stresses associated with home buying – both financial and emotional. And frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about as a Mortgagor, you have a right to understand what you’re reading. (You didn’t know you were a mortgagor? Read on…) We’ll start with “Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be sure that you understand the difference. The “amortization” of your mortgage is the length of time that would be required to reduce your mortgage debt to zero, based on regular payments at a specified interest rate. The amortization period is typically 15, 20 or even 25 years, although it can be any number of years or part-years. You could establish that you are able to make a certain payment each month of say $950 for your $130,000 mortgage at 5.5%. In this case, your amortization period will be just under 18 years. Or you could tell your broker that you’d like to be mortgage-free in just 10 years. With an amortization period of 10 years at the same interest rate, your $130,000 mortgage will cost you about $1,407 per month. That’s a tougher monthly payment, but you would save thousands of dollars in interest. (More than $35,000, in fact.) As you arrange your mortgage, then, keep in mind that your amortization period may be fairly long – although the shorter you can make it, the less you’ll wind up paying for your home in the long term. The “term” of your mortgage will typically be shorter. The “term” is the duration of your mortgage agreement, at your agreed interest rate. This will be a very specific length of time, although you will have several choices. A 6-month mortgage is a very short-term mortgage. A 10-year mortgage will be one of the longest terms, generally with a higher rate of interest to represent the higher degree of uncertainty in the economic outlook. After your mortgage term expires, you will need to either pay off the balance of the mortgage principal, or negotiate a new mortgage at whatever rates are available at that time. Now, back to the term “Mortgagor”. This is one of three very similar terms: “Mortgagee”, “Mortgagor”, and “Mortgage”. A Mortgagee is the lender of the money: a bank, company, or individual. A Mortgagor is the borrower: the person or persons (or company) that is borrowing the money, and who will pay it back to the mortgagee. The Mortgage, of course, is the legal document that pledges the property as a security for the debt. Still confused? Speak with a mortgage professional. Get the best mortgage suited to your needs and all your questions answered in plain talk.

Mortgage Plain - Talk

Mortgage Insurance Benefits

Mortgage Insurance Benefits

Homeownership on your terms. With the right preparation and resources, you can buy a home that best suits your lifestyle. Mortgage insurance provides you with innovative options to help get you into homeownership.
Be eligible for a better interest rate. Mortgage insurance provides a lender with the flexibility to offer you the same competitive mortgage interest rates available to home buyers with a larger down payment.
More down payment options. Don’t let the down payment be the barrier to your homeownership dreams. There are many mortgage insurance products that will help you to achieve homeownership. Let’s discuss the options that suit your situation best.
Buy, instead of renting. If you’re paying rent right now, it can be a good move to consider buying a home that has similar monthly carrying costs. You’ll enjoy the freedom of making your living space into your own home with your personal touch.
Overcome traditional barriers to financing. More and more home buyers who may not have qualified for a mortgage are benefiting from mortgage insurance — for example, those who are self-employed or work on commission. With mortgage insurance, people who have good credit but might not meet conventional lending criteria can qualify for the financing they need.
Own and enjoy a vacation property. If your financial situation is in good standing and you are thinking about buying a vacation property, there are mortgage insurance options that will allow you to do so. Be sure to ask us about what will work best for you.
Get money back on an energy-efficient home. If you purchase an energy efficient home or refinance an existing home to make energy-saving renovations, you could be eligible to receive a 10% refund on your mortgage insurance premium if your mortgage is insured with Genworth Financial Canada.
Save on household purchases.When buying your first home, you’ll find expenses can add up quickly. When insured with Genworth Financial Canada, you can take advantage of the Home buyer PrivilegesTM program, which offers savings on appliances, truck rentals, home-improvement materials, moving supplies, and more.
Take it with you when you move.If you have a mortgage that’s portable, you can transfer its terms to a new property in the future. This same option is available when you buy mortgage insurance, which can save you premiums when you move.
Get help when you need it.Whether from a job loss, a serious illness, or a marriage breakup, financial difficulties can arise when you least expect them. You can be sure to get the help you need to keep you in your home, with Genworth Financial Canada’s Homeowner Assistance program (when insured with Genworth). Be sure to inquire about the benefits of this program.

Mortgage Insurance Benefits

Mortgage Industry in the Media

Mortgage Industry in the Media

In recent weeks, there have been numerous articles in the national media on the state of the Canadian mortgage industry. Issues regarding the impact of longer amortizations and a perceived failure to anticipate the effects of various mortgage products have been at the forefront. CAAMP (Canadian Association of Mortgage Professionals) Members Should Be Aware Of The Following Important Facts: Arrears and default rates remain low in Canada particularly when compared to the U.S. Canadian mortgage holders have on average over 50% equity in their properties. For all home owners, (those with and those without a mortgage), the equity ratio exceeds 70%. Longer amortization periods and 100% LTV mortgages do not equate to subprime or alternative mortgages which are based on a borrower's credit worthiness. Relatively few outstanding mortgages in Canada have 40 year amortization periods – only six percent or just over 300,000 mortgage holders out of 5.25 million. Mortgage products in Canada are transparent. Mortgagors with a variable rate product know their rate and most have the option to convert to a fixed rate product. In the past year, 40% of mortgage holders took out a variable rate mortgage with the expectation that declining rates will continue to drop. This is in stark contrast to the U.S. where the resetting of option ARM mortgages means millions of mortgage holders have been and will continue to face higher rates. A rise in default rates in Canada is not apparent. It's a fact that the economy is slowing, however if borrowers find themselves with financial difficulties, it will most likely be a result of their employment situation rather than their mortgage product. Differences between the Canadian and U.S. markets remain. The option ARMs that have and continue to be reset to higher rates are not common in Canada. Those who hold variable and even fixed rate products in Canada are now doing so in a declining interest rate environment. A greater percentage of mortgages in Canada are funded by balance sheet lenders than in the U.S. Subprime or alternative lending products were never as common in Canada. Canada has a rich history of mortgage insurance. Nearly half of all mortgages obtained in any given year are insured with a second approval process for mortgage applications. Underwriting principles and guidelines in Canada, while not perfect, are more thorough than in the U.S. Regulation for Canadian mortgage brokers and agents is more stringent than in the U.S. Several provinces have recently updated or are in the process of updating their origination legislation including Ontario, Quebec, Saskatchewan, Manitoba and Nova Scotia. There are now license requirements and in most provinces education and disclosure requirements. This will ultimately lead to enhanced professionalism in our industry and added security for Canadian borrowers. Statistics Source: CAAMP's Annual State of the Residential Mortgage Market in Canada, by CAAMP Chief Economist Will Dunning.

Mortgage Industry in the Media

Steps To Become Mortgage Free

Steps to Become Mortgage Free

If owning a home is most people's dream, then don’t you think that should mean owning a home free and clear of any mortgage? Yes, this is a little more work than just owning a home and takes a little longer but the sooner you get started the sooner you will be mortgage free and truly own your home and the piece of mind and security that brings. So how is this possible when there never seems to be any extra money left each month and the lottery tickets just haven’t being paying? It comes down to discipline and baby steps. If your system is whenever I have a couple hundred dollars I’ll set it aside and once a year I’ll put it down on my mortgage, then the chance of success is extremely low. Something always comes up, like snow tires or a trip to Mexico and that money never gets put towards the mortgage. Some suggestions that may help you make mortgage freedom a reality!
If you put money into your RRSP you normally get some money back when you file your taxes. If you put this refund down on your mortgage you will be reducing the time required to payoff your mortgage. If you do this every year you will be amazed at the result.
Switch your mortgage from your standard monthly payments to bi-weekly accelerated and you can cut 3 to 4 years off the life of your mortgage with little or no financial pain.
Increase your monthly payment! Decide what amount you can comfortably afford (hopefully this is higher than you are currently paying) and get your payment set at this amount. You can then enter this information into a mortgage calculator and see how much sooner your goal of mortgage freedom can be achieved. You can also decide when you want your mortgage paid off and calculate what your payment would have to be to achieve this goal. This may be good news and it may require some tweaking of that goals time frame! There are also some products on the market for those who may be starting out with great intentions but who lack long term discipline or know how. This systems walks you through a step by step process every month taking into account your monthly bills and your mortgage payment. One product, that was developed in Australia and which has had huge success recently in North America is United First Financials, Money Merge Account (MMA). Basically this is a step by step system that if followed (this is a key point) will help you achieve that dream of a mortgage free home in as much as 10 to 15 years less time than your conventional mortgage payment. The system will also save you 10’s of thousands of dollars in interest and increase your wealth and security. Don’t change your mortgage and incur additional fees just stick to the payment the MMA tells you each and every month and you will be shocked to see how much sooner your personal and mortgage debt will disappear. For more information on the Money Merge Account ask your mortgage specialist.

Steps To Become Mortgage Free

Can't I Do This Myself?

Can't I Do This Myself?

Some people, once they begin to understand the concept of the Money Merge Account, think they might actually be able to do this themselves, without having to pay the $3920 US for the software. If you are one of these people, you're not alone. However, before you jump to a hasty conclusion that may cost you thousands or tens of thousands of dollars, please read the following information: The Fastest Way to Zero Debt The Money Merge Account program is far more than just software - it is a sophisticated system for maximizing every penny you make, 24/7, so you can be financially free. It's made for people who care about their money! As complex as it is on the "back end" it is designed to be extremely user friendly. It is easy for you to use your software - on your current home and debts and every single mortgage and debt you have in the future! So, could you do this on your own? Maybe, even though your results will likely never come close to the guaranteed results of the Money Merge Account. More importantly, are you willing to do it on your own? Please answer the following 6 questions to yourself honestly: 1. - Are you currently tracking every single penny of your money, every single minute of every single day right now? 2. - Do you possess the mathematical skills to re figure all your calculations every single time a variable changes - income, expenses, interest rates, an emergency arises, etc? 3. - Do you know exactly how to leverage one account against another - exactly when and exactly how much money to transfer to make every penny count to cancel the maximum amount of interest? 4. - Are you willing to do this day in and day out - for the next 4 to 8 to 12 years? 5. - Who will help you if something goes wrong or you get confused? 6. - Are you willing to take the chance of losing tens of thousands of dollars by trying to figure everything out on your own? Obviously, we could all do many things on our own - grow our own food, build our own homes, figure out our own taxes, represent ourselves in court. All we need is the time, education, and discipline. But, is it really worth it? Wouldn't you rather take advantage of a proven program that acts as your own personal financial GPS system? The Money Merge Account software program is simply an invaluable tool:
Simple and easy to use.
Maximizes your results - guaranteed.
Works for primary, investment and commercial mortgages.
Professional, unlimited, one-on-one customer and technical support. Consider the Facts
Consumer credit card debt had risen to $800+ billion in 2005.
Average households pay more than $800 per year in penalty fees and interest payments.
Fewer than three in 10 households have enough of a savings cushion to get them through three months of unemployment.
95% of all homeowners know the benefits of a bi-weekly mortgage plan (which can shave off 6-8 years of mortgage payments) yet less than 5% are actually on one.
And most homeowners also know that they can dramatically reduce the term of their mortgage loans by making regular additional payments to principal, yet less than 1% actually do so consistently. The gap between knowing something and actually doing it can be deadly. Let's face it, most of us are busy, distracted, stressed - trying to do the best we can to balance our life, work and family, and have a bit of fun here and there. We simply don't have the time to spend pouring over our finances trying to account for every little fluctuation in an attempt to maximize our money. We work hard to get ahead, we spend, and we pray that it will all work out. But, maybe you're the exception. Maybe you do plan, you do budget, you do send in additional money to pay off your debts faster. Good for you! You're way ahead of the game. So, why not use a proven program guaranteed to dramatically improve on what you're already doing? Why re-invent the wheel? Many highly intelligent experts in their respective fields combined their talents and expertise and also invested 3 years and over $2.5 million in resources to create the Money Merge Account program...so you don't have to! Simply put...The Money Merge Account Program WORKS! It is guaranteed. There is virtually NO RISK to you. Since 2005, tens of thousands of homeowners have been using our service and we have an incredible record with the Better Business Bureau. What have you got to lose...except a lot of unnecessary mortgage and debt payments? Do you have a cell phone? You are probably NOT trying to figure out a way to design and build your own cell phone and network so you could save thousands of dollars over the next 5 years. So why is this any different? You bought your cell phone and you use it almost every day, even though you may not know exactly how it works. The fact of the matter is...it works. If it does not work, you contact the cell phone company and get your money back or switch companies. Same here, if you use it properly and it does not work, you get your money back-guaranteed! Don't hesitate. Buy the Money Merge Account today and use it because it works. Then use it every month and instead of getting a bill every month like you do from your cell phone company, you will get to see the amazing amount of money you are saving for making the smart decision to utilize the Money Merge Account. Every day you wait to get started, you are costing yourself money that you would have been able to save. Stop sending your hard earned money to the bank. Start re-directing the money you would have paid in interest to something you want for yourself or your family. They deserve it. You deserve it! Don't wait. Contact the person who ran your Financial Analysis report and tell them you want to get started on the Money Merge Account right now! Congratulations on making perhaps the single smartest financial decision of your life! Welcome to the United First Financial Family! (Now take a few minutes to figure out what you will be spending your money on when you no longer have a mortgage payment and you are COMPLETELY DEBT FREE!)

Can't I Do This Myself?