A Christmas Love Story

This is my second Christmas without my mom.  I come from a large family and last year we all gathered as we always did and tried to keep every tradition alive.  It was horrid.  This year I am excited to be hosting Christmas in my own home for the first time in my life.  The menu will break all the rules of over fifty years right down to a new cocktail.

This week I had an idea to incorporate something of my mom's  into Christmas so I went to my what is now my "dad's" home and dug through the old Christmas stuff.  I was looking for something that was distinctly mom.  What I found was love. True love,  The kind you find in movies.  In the very bottom of the oldest Christmas storage box I found a thin paper box with a very dried rubber band around it.  On the top in my mom's handwriting was "Mark and Lorraine's first Christmas together, Love is in the Air".  Inside the box were some very old and very delicate decorations likely bought at Zeller's where my mom worked.  I even recognized the little pink one with the snowman on it.  I recall that was my favorite as a young girl.  Also in the box where letters and an array of ornaments.  I started to read the letters and discovered my mom and dad wrote each other a letter every Christmas and told each other how grateful they were for their lives together.  The letters covered a lot of years and a whole lot of love.

What I found particularly moving about these letters was there very existence.  My mom and dad had a lot of children.  Every year Christmas was pure magic in my house.  Every detail was lovingly prepared.  Even gifts were wrapped with care.  Outside lights were the envy of the street and the house always smelled like baking.  All my life I thought it was about us.  My mom and dad working to give perfect kids a perfect Christmas. The discovery of the letters made me realize it was about so much more.  My mom and dad loved each other.  Forever and for always.  No greater joy.....  heaven blessed them each and every day.  Their words not mine.

So in the middle of all the chaos every year they had a tradition.  They took time out for each other and put in writing what their lives together meant.  They exchanged letters and hung a decoration that symbolized their lives.  No wonder my parents loved Christmas.  They had this magic moment that only they shared.  How they found the time and space with so many of us I will never know and really that's not the point.  They just did. I can only imagine where their special time together went but I do remember my parents being their happiest at Christmas. 

And so my gift from mom this Christmas is the reminder that my brothers and sister and I were born of love and raised in love.  Yes it said so in the letters.  And this year will be the celebration of that love as we gather together.  My Sister called this morning and told me how excited she was to be coming to my place for Christmas.  It made me feel so wonderful to hear her say that. I can't wait to show her the letters mom and dad wrote to each other the Christmas she was born.    I realized that we are all blessed by the love my parents had for each other.

Merry Christmas everyone.  Have a fabulous time.

And so this is Christmas....

By the time you read my post this we will be ready for one celebration and ramping up for the next.  Hopefully my house guests won't stay too long and I’ll get in a few days of skiing. 

This next year will be an exciting one for me.  I’m starting the year with two fun projects.  Again I’ll be taking mortgage clients to the Bon Jovi concert in February so get your application in to qualify for our famous fun event.  Last year we gave out 109 pairs of tickets and that was so much fun.  I’m also thrilled to sponsor an important fund raiser for Northumberland Services for Women.  A lunch with Gail Vaz-Oxlade will be held in Cobourg on March 26^th.  Tickets are $25 each and did I mention they make a great gift? 

So now I’m saying good bye to 2010 and looking back with pride.  I really enjoyed this year.  To all our clients I want to say thank you for allowing me to help you arrange your mortgage.  We are always here to help you through the ebbs and flows of the mortgage market.  In 2011 we are going to focus on the first time home-buyers and helping people pay off debts and get you toward investing in your future.

From all of the staff at The Mortgage Diversity Group, we wish you a wonderful holiday season.  Our office will be officially closed Dec.  27, 28.  We may also duck out for some holiday cheer intermittently for the rest of that week, so your patience is appreciated ;0)

Declutter your kitchen

I was getting the house ready for Christmas and things got out of control.  With my large family coming for the holidays I wanted to make the kitchen as efficient as possible.  Since I’m thinking of selling my home it was good time to declutter.  It was also a good excuse to surf the net for ideas.
The kitchen is one of the highlights of a home - whether you`re buying or selling - unless it`s overrun with household items. If you've been thinking of decluttering your kitchen, consider the following tips:

1.      Purge.
It`s believed that most of us use 20% of our kitchen gadgets and utensils 80% of the time. If you have a number of items cluttering your counter-tops and drawers that you haven`t used in a while, consider whether you really need it.

2.       Downsize.
If you only use your food processor for the occasional dip or blended drink, you may want to consider a more compact option - such as an electronic hand blender. I replaced mine with a Magic Bullet.

3.       Look at your storage options in a new light.
If you have a nice set of dishes or cutlery, why not put them on display. This Blog has quite a few creative ideas and I adopted some of them myself.  http://decork.blogspot.com/2009/02/creative-ways-to-store-dishes.html

A decluttered look may get you a few extra dollars for you home and that means a few less dollars on your next mortgage.  And you know me.... a penny saved is YOURS!

Is This What Happens When You Go to Bed at 9?

So here it is 5am on Monday and I'm wide awake.  I guess that's what happens when you go to bed at 9.  I tweeted out for tips on what does one do at this hour and @suzemuse tweeted back in seconds "blog!". Now that beats jogging!

So what is the single most important thing I need to tell you about the biggest debt you will ever incur at this ungodly hour?  I can only imagine that if your up you probably, like me, have a lot on your mind.  And what if those thoughts were about money?  I know a lot of people stress over it especially with the Holidays approaching.  I haven't been able to sleep because right now I'm working on a mortgage to help someone get out of trouble.  I know the deal can be done but it's been on my mind all night what is the best course of action.

The first thing I can assure you if you're in debt  you're not alone. A recent survey by Manulife Bank revealed that 27% of respondents had seen their debt increase over the past year, while 17% saw no change. Only 7% paid down their debt more than expected. The report focused on what could be described as middle-income, middle-aged homeowners - people aged 30 to 55 with at least $50,000 of household income. About one-third of those surveyed ranked being debt-free as their top financial priority and another 36 per cent ranked it No. 8 or No. 9 on a 10-point scale. Only 11 per cent of the respondents said they were already debt-free. About the same percentage said they had no idea how many years it would take them. With interest rates and other living expenses on the rise, times are likely going to get tougher for a lot of Canadians.

If your mortgage is up for renewal or if you have equity tied up in your home and you'd like to refinance please send me an email. Before you sign on the dotted line make sure you have a detailed calculation to confirm you are not out of pocket.  In our office we ask our clients to provide us with specific information to determine if you should “stay or break”.  

In many cases I can show you how to lower your interest payments, making it easier to pay off your debt faster, or find you a better interest rate to free up some much-needed monthly cash. 

Now that's detailed thinking at 5am!  

Zero down mortgages still exist!

Although zero-down mortgages - or those that don't require a down payment - technically went by the wayside when the Federal government tightened mortgage rules back in 2008, lenders and homebuyers have found ways around the rule with "cash back mortgages".
These products are reserved for those homebuyers who have great credit and income, but have found it difficult to save the $15,000 to $20,000 required for a minimum 5% down payment. In these situations, the lender will give the client 5% cash back on closing. When the down payment is requested by the real estate lawyer, the lender will provide the funds which will then be given to the vendor.
Of course, the cash back doesn't have to be used towards the down payment of a home. It can be returned to the buyer, provided they already have a down payment, to put into savings, towards new furniture, or any renovation projects they may need to tackle.
There is a catch for the convenience, however. These mortgages come with a higher interest rate than a typical five-year mortgage - but given today's low interest rates, they're still low compared to historical averages. Right now, you could probably get a cash back mortgage for around 5.29%. To qualify for these mortgages, you also have to have decent credit - sometimes as high as a 680 Beacon score. And, of course, with no down payment, your monthly mortgage payments will likely be a little higher than if you had saved the 5% down yourself.
Despite the drawbacks, this is still a great tool for someone who is looking to get into the real estate market, can afford the costs of homeownership, but was just having a bit of trouble saving for a down payment. If this sounds like you, contact me for more details!

A Break from Mortgages Thanks to General Motors

Lately I’ve been hanging out on Twitter and meeting some amazing ladies in some very amazing jobs.  So when the delightful @AdriaMacKenzie from General Motors announced the Cruze City Challenge, the words, “I’m in” were out of my mouth before a thought went through my head. 

With the forms filled out, the date assigned and the co-driver chosen I finally hit the panic button.  I thought I should at least know something about this car.  I looked it up on the website.  I liked the price, $15,000, and suited my budget.  Good gas mileage, 10 air bags, and it comes in red.  I was good to go. 

I arrived at the Challenge very nervous about the next few hours.  I knew I would have an iPad with my instruction (no clue how that worked) and all I had to do was pick the challenges I thought I could finish in my allotted time.  The first thing I heard when I arrived was “wow, someone close to my age” from the clearly middle age guy in charge of the cars.  Okay, this was going to be trouble.  I went inside and got my very cool jacket, instructions on the iPad and the key to my.... yes...wait for it.... RED CAR!!!

I headed out with my driving partner, a friend who knew the city well and we started knocking off the challenges.  We tweeted the challenges and people helped us out.  We need to wash a window, we tweeted, and someone tweeted back where they saw a window washer.  We rushed over and helped them out.  We need a postal code, we tweeted, and we got it.  We needed a newspaper, we tweeted, and we got it.  We needed to answer a trivia question, we googled, we tweeted and we got it.  All the time I had my head buried in the technology Mr. Helper played with the Stereo, the buttons, revved the engine, all the things you would expect an engineer to do.  (Do you know you can’t open the trunk when the car is moving?  Just Sayin)

The one challenge I had written off was the lurking request to go into a coffee shop and convince the staff to let me make a cappuccino for a stranger. Oh and the Chevrolet Logo had to be in the foam.  Yea right!  With nothing left on the list and ½ hour to spare I decided to tackle the video challenge.  Of course I picked the coolest coffee place in the heart of Scott Pilgrim territory, The Aroma Cafe, at Bathurst and Bloor.  The delightful staff was so much fun.  They let me make a cappuccino and even came up with some inventive methods for putting the logo in the foam.

So here’s to all the fab tweets, @LoireTaylor, @mcpolitics, @those2girls, @RobynConnolly, @jcmortgages and all the rest that stuck with me for 2 hours last night.  Thank you @AdriaMcKenzie and @GMCanda for all the fun.  The tasks were managable, we won, and the car was red!!

TD's Collateral Charge

This week TD is changing the way they register their mortgage charge. As of October 18, 2010 mortgages will now be registered as a collateral charge. TD believes that this will be a positive change for their consumers. I am not certain that I agree. Lets take a quick look at the facts and the pros and cons. Facts: Mortgage will be registered as a collateral charge. Mortgage can be registered in an amount equal to 125% of the value of the property. Pros According to TD's information releases: The flexibility to register the collateral charge for a higher amount than the current loan agreement so that if a customer wants to increase their mortgage in the future they can reuse the existing collateral charge and not incur any new registration fees The flexibility to switch to another lending product by using the existing collateral charge without incurring registration fees. Cons: Well, come maturity a borrower will no longer have the option to "switch" their mortgage to another lender. The charge will have to be discharged in full and a new mortgage placed. This means it makes it much more difficult and costly to move a mortgage at renewal. Depending on the wording of the collateral agreement, all of a customer's credit facilities at TD may be covered by the charge. This could mean that if a borrower wanted to discharge the mortgage they may also have to pay out other TD credit items such as Visas etc. Talk to your TD rep to get their take on what this means to you and your clients.

A handy financial resource

If you'd like to "know your stuff" before heading into a mortgage broker or financial planner's office, you may want to check out the Financial Consumer Agency of Canada's consumer publications. The government body has done a great job of outlining basic financial topics - from how to borrow on home equity to how to develop a household budget. It also offers a six-part section on credit cards - that addresses how to save with credit cards as well as how to shop around for a credit card - runs down the various mortgage products on the market place and tackles saving and investing topics. While meeting a mortgage broker in person is probably the best way to find the financial products that best suit your particular needs, it never hurts to head into a meeting with a basic understanding of your options. The FCAC's publications will provide you with the background you need to navigate the discussion in the direction you'd like it to go.

A life preserver for debt drownings

When it comes to financial priorities, most Canadians say that becoming 'debt-free' is at the top of their list - but in the last year, almost half believe they didn't come any closer to achieving that goal. According to a poll of 1,000 Canadians by Manulife Bank of Canada, most Canadians didn't take advantage of low interest rates and make an extra mortgage payment. About 29% said their debt increased in the past year, and another 17% saw no change in their debt levels. If you fall into the above group, here are some tips for devising a debt management plan: 1. Figure out how much debt you have. While it may be painful, the only way to lower your debt level is to know where it stands. Make a list of all the debt you owe - including credit cards, car loans, lines of credit, mortgage debt and student loans. 2. Track and analyze your spending. For some people, it's easy to pinpoint how they got into debt. For others, it's not as clear. Either way, it's important to spend to track your spending. Bring a notebook out with you for a week and jot down everything you buy - from coffees to clothing purchases. If you're more of a virtual banker, comb through your bank and credit card statements from the past month or two to see where your money is going. Experts say most households waste up to 15% of their take-home income. Find out where that waste is, and determine ways to put it towards your debt. 3. Come up with a plan. Keeping your current habits in mind, set an achievable spending and debt reduction plan. Prioritize your debt, with credit card debt as the most urgent to pay off, and car loans, mortgage debt and student loans rounding out the bottom of the priority list. The first credit cards you pay off should be the ones with the lowest balance. If possible, see if consolidating your debt - either to one low-interest credit card, or a home equity line of credit - is an option. 4. Focus on one debt at a time. If possible, see if consolidating your debt - either to one low-interest credit card, or a home equity line of credit - is an option. If it isn't, start making extra payments on the credit card with the lowest balance, while meeting the minimum payments on your other cards. Once the first debt is paid off, take the full amount you were spending on it, and put it towards the next lowest card. 5. Create debt-free habits. Once your debt is paid off, it's important to start saving. A credit card should not be used if you don't have the money to pay it off at the end of the month. Instead, you should aim to have a significant "cash cushion" to pull from when unforeseen expenses arise. If your debt is more than you can manage on your own, please feel free to give me a call - and I will refer you to a professional who can help.

The fixed/variable debate goes on...

A recent article in the Financial Post has stirred up the fixed vs. variable rate once again – hinting that the variable rate's reign may soon be coming to an end. Historically, variable rate mortgages have saved homeowners money, averaging a lower rate than the typical five-year fixed-rate mortgage. With the Bank of Canada's widely-known decision to raise the Prime rate over the next few years, and the bond market bringing fixed rates back to record lows, the tides may be turning. When it comes to deciding which product is right for you, it's best to ignore historic trends and focus on your particular situation. If you're on a tight budget with no room to move, a variable rate isn't right for you because it has the potential to increase up to ten times per year. If you find the qualifying rate uncomfortable – the current posted five-year fixed rate – then again, it's likely not right for you. If you've determined that you can handle the fluctuations of a variable rate, it might be in your best interest to choose that route but pay it at the current posted five-year fixed rate. The extra payments will allow you to drastically cut into your principle, and your budget won't be affected for quite some time – at least until variable rates hit the 5% mark. Another option is the hybrid mortgage – which allows you to split your mortgage into a variable and fixed component, thus taking advantage of the best of both worlds. To truly determine the option that's best for you, however, why not give me a call? There's no obligation to sign on the dotted line, and I'd be happy to uncover the best mortgage for your needs.

Another argument for paying down that mortgage...

While mortgage brokers have long advocated the notion of paying off one's mortgage, this age of low interest rates has created yet another advantage to the concept. In a recent article in the Toronto Star, Moshe Milevsky, a professor at York University's Schulich School of Business, argues that in today's volatile stock market, money is only earning around 3% - if individuals are willing to lock in for a few years. Money in demand deposits and savings accounts are earning even less - somewhere around 1%. At that rate, Milevsky argues, it will take a retirement nest egg 72 years to double - not a great rate of return to say the least. So even though mortgage rates are incredibly low, they're still higher than what people are earning on their savings. So if your clients come across some extra cash, wouldn't it make more sense to pay down their mortgage than invest it in an investment vehicle that's earning peanuts?

Tips for freeing up cash flow

While we'd all like to see our mortgages paid off sooner rather than later, accelerated or lump sum payments aren't necessarily in the cards for everyone - especially if you've just started a family, or are having difficulties making the switch from being a renter to a homeowner. Here are a few options to help you increase your monthly cash flow: 1. Go no-frills. One way to save a bit of money on your mortgage payment is to go with the lower rate of a no-frills mortgage. If you're not using your prepayment privileges, why pay the extra interest? With a little discipline, you could always put your savings aside and use them for a rainy day. 2. Use your bank card to its full potential. Bank cards and credit cards today come with a vast array of incentives - including cash-back options, auto-saving options, and travel miles. My personal favourite is the Shoppers Drug Mart MasterCard that allows you to save a ton of dough on all of life's essentials. Sit down and think about what makes the most sense to you. If you're spending the money anyway, it couldn't hurt to see something for it. 3. Take a lesson in frugality. Welcome to the new era of coupon cutting. There are a variety of websites and e newsletters out there that are designed to keep you informed of the best bargains in your area. My favorite? Groupon.com. Every day you'll receive a deal to a local restaurant, gym, or one of a vast array of products in your city. Because hey -every little bit counts. While managing your cash flow is important, try to keep your mortgage top-of-mind - and pay it down whenever possible. After all, imagine how much cash you could free if you eliminated that pesky mortgage payment?

HST 101: For Homeowners

What says "Happy Canada Day" better than a new tax? Nothing - according to the provincial governments in B.C. and Ontario. On July 1, the residents of those two provinces must now pay the Harmonized Sales Tax on a variety of goods and services that were once only subject to the GST. Homebuyers aren’t immune to the new charge, but there are certain things these two governments are doing to make the new tax sting a little less. Essentially, the HST will only impact those homebuyers who are building or purchasing a newly-constructed home, or substantially renovating their homes. Individuals who are purchasing resale homes are exempt from the new tax. For those that fall into the first category, both governments are offering tax rebates. In B.C., purchasers of newly built homes will be eligible to apply for a maximum rebate of $26,250 — with more rebates potentially available if construction spans the July 1 implementation date. In Ontario, all buyers get a rebate of $24,000, regardless of the purchase price. So that’s the same as paying no tax on Many homebuilders have included the costs of HST and the associated rebates under the plan directly into the purchase price. In these cases, the rebates normally available to a homebuyer are assigned to the developer. Information about whether the HST and rebates are included in the purchase price is included in the agreement of purchase and sale. If the developer has not included the HST and associated rebates into the price of the home being built, homebuyers must apply to the federal government for the rebates and wait for the forms to be reviewed and approved. As a result, these amounts must be financed by homebuyers during the intervening period. Certain costs associated with buying and selling of homes will also be impacted. Such items as legal fees and real estate commissions will now be subject to HST.

The benefits of non-bank lenders

If Canada's five chartered banks were the only institutions allowed to lend money in the form of mortgages in this country, rates would be sky-high, and the selection of mortgage products would be rather slim. Thankfully, we have non-bank lenders to keep the Big Banks on their toes.

While these lenders may not invest the same number of dollars in fancy advertising campaigns, they're nevertheless an excellent option for savvy consumers who are looking for a good mortgage deal.

Because non-bank lenders don't have to support the overhead costs of brick-and-mortar branches, and instead opt to go through the mortgage broker channel, they're able to offer better rates. In addition, because they're seeking to steal market share from the dominating big banks, they're much more likely to offer unique mortgage features - such as better prepayment options, flexible payment frequencies, and unique products such as cash-back mortgages - while at the same time offering a little more flexibility when it comes to clients with lower credit scores, or those that are self-employed or commission-based.

While non-bank lenders aren't considered "banks" in the traditional sense, they're still required to follow all the same regulations and underwriting guidelines as their bank counterparts. They also have access to the same default insurance options as the big banks - whether that's through CMHC, Genworth, or United Guaranty.

Not all non-bank lenders are "sub-prime" (in fact, there are very few of these lenders left in Canada), and while it's true that many of them are foreign-owned, there are many homegrown institutions here as well. Their models have seen success across the globe, and continue to thrive here in Canada.

If you're in the market for a new mortgage or a renewal, I invite you to head into your local bank branch to see what type of deal it can offer you. Then pop by my office and I'll scour the rest of the country's lenders - and likely save you a few percentage points off your mortgage.

Mortgage Misinformation

Ever since the Federal government announced a new set of mortgage rules in February, misinformation has been spreading like wildfire. Don't buy the hype - acquiring a mortgage is still possible!

Below are a few mortgage myths, debunked:

1. You can still purchase a property with 5% down.
While the government did change the rules regarding 5% down payments, the changes only affected property investors. If you're a first-time buyer - or if you're looking to move into another residence that you plan to occupy - you can still buy a home for 5% down. You can even buy a home with rental units in it for 5% down, as long as you plan to live there too.

2. You can still purchase a vacation or second property with 5% down.
If you have your eye on a new cottage or second home, those are also exempt from the new down payment changes. Unless you plan to rent it out when you're not living there, you can still purchase a second home for 5% down. The only situation that falls under the new rules - where you'll be required to put 20% down - is if you're purchasing a property solely for investment purposes. This is to prevent real estate speculators from artificially inflating the market.

3. You can still qualify for a mortgage.
While the government did implement a rule to reign in over-zealous first-time buyers, the intention was noble. To prevent first-time buyers from getting in over their heads, the government is now making it mandatory for lenders to qualify them on the five-year fixed rate - even if they're choosing a lower variable-rate mortgage. This is because, while variable rate mortgages may initially seem lower, they change according to the Bank of Canada's Prime lending rate - and in the coming year or two, the government has made it quite clear that this rate is going to increase. By qualifying borrowers at the higher rate, lenders are ensuring homebuyers can withstand the increases.

Home overvalued? Local rental rates will tell

The topic of real estate overvaluation has been a hot one over the past week - pretty much ever since the big banks tweaked their real estate forecasts.



CIBC is the most recent bank to sing a different tune when it comes to real estate appreciation across the country, arguing that approximately 17% of homes are overvalued, and Canadians can expect a 5-10% price drop in the coming year or two.

Real estate markets across the country have been hot for over a decade, so this concept of overvaluation makes sense. To see if your home is one that 17%, you may want to employ a tool from the stock market.

When analyzing stock, investors look at its price-to-earnings ratio, which is a comparison of a company's share price with its annual profit. The higher the ratio, the more expensive a stock is relative to its underlying value.

Houses are similar in this regard - but instead of earnings, you have to look at the going rental rate in the area. Take the rental rate, multiply it by 12 (to get the annual cost) and divide your home's going price by that number. If you get a number that's higher than 20, your house is overvalued.

As an example, we employed this method to apply to a one-bedroom condo across three cities. To find the going purchase price, we visited www.mls.ca. To find the going rental rate, we visited www.craigslist.org. Where possible, we tried to find units in the same building or at least the same street. Keep in mind that just because one of the examples is overvalued doesn't mean every home in that city is. Prices can be escalating in a certain area of a certain city, but as long as rents are keeping up with them, chances are they're not overvalued.

Example 1: Toronto

Purchase Price: $325,000

Rental Rate: $1500/mo (x 12 = 18,000/yr)

Ratio: 18.05

Example 2: Edmonton

Purchase Price: $204,500

Rental Rate: $800

Ratio: 21.3

Example 3: Vancouver

Purchase Price: $369,800

Rental Rate: $1175/mo

Ratio: 26.22

Casting call for a new show "Mortgage Free"

Hello, it's me again bugging to you spread the word for another casting call. This time I'm looking for people who are planning on selling their homes and buying something they like just as nice but less expensive so you can live "Mortgage Free". There is a big cash incentive for anyone who is in the market. I have a tight time-line here and need to hear back from you asap! Here's the details....


Are you planning MORTGAGE FREE

Tired of merely dreaming of becoming MORTGAGE FREE? Let us help you make it a reality. Mortgage Free is a new HGTV real estate series in which the ultimate goal is to sell each homeowner’s property, and with the available equity, buy another home (that the homeowner loves!) outright.

The REALTOR HOST determines the approximate value of the current home and then subtracts the remainder of the mortgage plus the projected realtor fees, moving costs, penalties and closing costs to be paid. The money left over is the ‘mortgage free’ shopping budget. The Realtor host will then offer the homeowner properties from which the participants choose, based on their wish list.

Presented with property options, our participants will pick one to purchase. With the REALTOR HOST, they will weigh the pros and cons of each property, until they make the decision of which to purchase. Once a selected property has been purchased, they are…Mortgage Free!

Looking to downsize? To move from the city to the country? House to condo? Whatever your dream is, we want to hear it!

Candidates Must:
-Have outgoing & personable families - 30’s to early 50’s
-Live between Burlington east to Bowmanville
-Have at least $300,000 equity in their existing homes

Now, as if living mortgage free isn’t enough in and of itself – you will receive $10,000 if you sell, buy and become mortgage free! You will receive $4,000 if you decide in the end to stay where you are, and not live mortgage free.

Please email Jen Mitchell at smsconcepts.jen@gmail.com to apply!

Casting Call For A New Show.

I have one of the best jobs in the world and every once in a while it gets even better. I am looking for people who currently own a house or town house (sorry no apartment style condos) who want to take part in a new TV show called "House Poor".
I have listed some of the situations that might make you an ideal candidate. Please feel free to share this information with anyone you know who maybe interested and have them get in touch with me at mberg@mortgages4women.ca and I will pass your names along to the casting director.




* You put the entire down payment on credit
* You undertook major renovations that you couldn’t afford
* You consolidated consumer debt into the mortgage, over-extended on Home Equity lines of credit or took out a 2nd mortgage
* You didn’t budget for repairs and now you can’t afford to fix a home emergency
* You bought a home way out of your price range in order to live in a desirable neighborhood and are struggling to keep it
* You got caught in a bidding war
* You spent a fortune on décor, appliances or furniture
* One of you lost their job and now you can’t pay the mortgage
* You placed a partial deposit on a new home and risk losing it because you can’t come up with the rest
* You bought when rates were low and are now facing losing your home due to spiraling interest rates

Get them while they're...low!

If one good thing came out of Greece's economic hardship, it's low interest rates.

Just when it looked like rates were going to start their expected rapid upward climb, the EU announced its trillion-dollar plan to help its struggling members. The result? Scared investors fled to the safety of US and Canadian bonds, which in turn lowered fixed rates.

While variable rates are influenced by the Bank of Canada's Prime rate announcements, fixed rates are tied to the bond market. Demand for government bonds pushes yields lower and reduces the borrowing costs for banks and other lending institutions. This makes it cheaper for them to fund mortgages.

Within the last week or so, most banks cut their five-year fixed mortgage rates by approximately 10 to 15 basis points. So something that was posted at 6.25% two weeks ago is now likely sitting at 6.10%. That being said, the lowest discounted rate we could find is much lower at 4.39%.

If you haven't already, it would make sense to get your rate hold now. It will guarantee you the lower rate for the next 90-120 days as rates inevitably rise again.

New Rules in Effect Today

Effective April 19, 2010, Qualifying Interest Rates guidelines will change as follows:

Fixed Rate Mortgages of terms less than 5 years and all Variable Interest Rate Mortgages: Applications will be adjudicated based on the greater of the 5 Year Bank of Canada Benchmark Rate**, or the actual customer rate (inclusive of any customer discretion).

Fixed Rate Mortgages of terms 5 years or greater: Applications will be adjudicated based on the actual customer rate.

This change applies to both conventional and insured mortgages

**The Bank of Canada Benchmark Rate is defined as the Chartered Bank – Conventional Mortgage 5-year Mortgage rate, published by the Bank of Canada each Monday, and can be found at http://www.bankofcanada.ca/en/rates/interest-look.html

3 key changes associated with this announcement are:

1. Borrowers will need to be able to afford a five-year fixed rate mortgage, even if they choose a mortgage with a shorter duration.
2. Investors, who want to buy a home that they don't plan to live in, will have to make a minimum down payment of 20%.
3. Canadian home owners will only be able to withdraw 90% of the value of their homes in a refinancing, down from 95%.

Don't Lose Sleep Over Your Mortgage

Has the 'variable/fixed' debate -and the threat of rising interest rates - kept you awake at night lately? If so, you're not alone.


Approximately 33 per cent of homeowners have complained that they lost sleep due stress associated with their mortgage, according to a new BMO survey conducted by Harris-Decima.

The Harris/Decima online poll was conducted from February 16th to 22nd, 2010 and is based on a sample of 1,000 Canadians between the ages of 25-45 years, who are either current home owners (who currently have a mortgage on their home) or are planning on purchasing their first home in the next 12 months, and at least share in their household's financial decisions.

If you're thinking about buying a new home - or if you're thinking about renewing your mortgage - I can't stress enough how important it is to get preapproved. While rates are likely going to be rising over the next year, a preapproval allows you to lock into today's low rates for 120 days. If rates go down, you still benefit from the lower rate.

In terms of the fixed/variable debate, many experts predict Prime will rise to 1.25% by the end of the year, compared to 0.25% today. To determine whether you should lock in or not, it's important to do the math ahead of time and determine how much of an influx you can comfortably withstand.

Remember that when you lock in, you're taking the rate of the current five-year fixed mortgage, so it's best to keep an eye on those as well if you're getting close to your threshold.

Variable rates increase in accordance with the Bank of Canada's prescheduled Prime rate announcements - so a hike isn't going to come out of the blue. Fixed rates, however, fluctuate with the bond market which is much less predictable.

Don't lose sleep over this. Instead, give me a call. I can assist you with a preapproval or analyze your financial situation and help you make the decision that is right for your specific needs.

I'm so tired and I look like it! But at least we got you to lock in your mortgage!

What to do about the rise in rates

There's been a lot written in the media lately about upcoming hikes in fixed rates. While it's true many of the big banks have increased their posted fixed rates, if a new mortgage is on your horizon, there's no need to panic.

As of right now, there are still many lenders who are offering rates near historic lows. If you're thinking about buying or renewing in the near future, your best bet is to take advantage of a 120 day rate hold. This feature, offered by many different lenders, allows you to get prequalified at today's low interest rate. If rates go up, you're guaranteed today's rate. If they go down, you get the lower rate.

When it comes to locking in your variable rate mortgage, that question is a little trickier to answer. Many experts believe the Bank of Canada will start increasing its Prime rate in the near future by approximately 25 basis points. If you're in a financial situation where an increase in monthly payments is going to be tough for you to handle, it's probably wise to lock in now. When you lock in, it's important to remember that you're locking into the current fixed rates.

If you can withstand small increases in your mortgage rate, you might want to stand pat with your variable rate mortgage for now. Increases don't come out of the blue – since they're tied to the Bank of Canada's prescheduled announcements – so it's best to tackle as much principle as possible while you can afford it.

Whatever you choose to do, take note that lenders are particularly swamped right now as homeowners try to acquire a rate lock - or a mortgage – before rates really start to increase. If you're buying a home, make sure you give yourself at least seven days to acquire financing.

If you would like advice on the options that make the most sense for your particular situation, please feel free to give me a call.

Are you Doing All You Can to Protect Yourself Against Fraud?

In honour of fraud prevention month, TD Canada Trust released this quiz to help consumers identify their level of fraud savvy. Each right answer receives 2 points – the correct answers are located at the bottom of the quiz.


1. What does a criminal need to make a copy of your card and access your account?
a) The card -- my Personal Identification Number (PIN) is on the stripe
b) My PIN -- they can use a blank card
c) The card and my PIN together

2. A customer's PIN is located on the magnetic strip on their card
a) True
b) False

3. How often should you cover the key pad when you enter your PIN?
a) Always
b) Sometimes
c) Never

4. What is Phishing?
a) Looking over someone's shoulder at an ABM to learn their PIN
b) A scam done over the phone or via email to obtain personal and financial information
c) Rifling through the garbage to look for discarded receipts and statements

5. A salesperson asks you for your PIN, saying their new keypad doesn't stretch that far and they have to enter it themselves. You:
a) Give them your PIN and debit card
b) Decline to give them your PIN but continue your transaction and move around the counter to enter your PIN yourself
c) Leave and contact your financial institution

6. How often should you check your banking and credit card statements for discrepancies?
a) Always
b) Often
c) Never

7. You do your banking online, so when you receive your statement in the mail you should:
a) Throw it away without opening it
b) Read it and put it in the recycling
c) Read it and shred it

8. How secure should you be with your debit and credit cards?
a) Fairly secure - don't loan them to strangers but it's OK if family and friends borrow them
b) Don't sweat it. If someone steals them you will be reimbursed
c) Treat them like cash and know where they are at all times

9. You go to pay for lunch and your credit card is gone. What should you do?
a) Call your credit card company immediately to report it lost
b) Dine and dash
c) Drop by your bank branch a few days later to report it missing

10. What should you do if you receive an email from your financial institution asking for your banking information?
a) Enter the information
b) Delete it because your financial institution would never ask for your banking information via email
c) Contact the email sender to find out more

11. What should you do with expired identification and credit cards?
a) Throw them away
b) Save them because you like the way you look in the photo
c) Shred them

12. You sell something online to a stranger who sends you a check for too much and asks you to wire the difference. You should:
a) Do as they ask because you trust the selling site
b) Do as they ask because if the cheque's no good your bank will reimburse you
c) Cancel the transaction and rip up the cheque

The answers

Give yourself 2 points for every right answer: 1.c) 2.b) 3.a) 4.b) 5.c) 6.a) 7.c) 8.c) 9.a) 10.b) 11.c) 12.c)

Where you stand

If you scored 20-24: You run a tight ship - your information is pretty safe


• You have a place for everything and everything is in its place so you know almost instantly if something is missing or not right. Now, while you may not apply this strategy to every aspect of your life (we know about your junk drawer), you know that your debit and credit card is safest with you and you know how to keep them from getting into the wrong hands.

• Not only do you shield your PIN during the transaction but you take your transaction record and destroy it when you no longer need it. Remember to do the same with any expired identification or personal papers you no longer need.

• You probably don't have much to worry about since fraudsters tend to pick on easy targets. You are very careful and aware of how to protect yourself, so keep up the good behaviour.



If you scored 14-18: You know the basics, but there is more you can do to protect yourself

• Take extra precautions to protect your personal information. Maybe you don't share your PIN with anyone - but are you sure your PIN is a number that would be hard to guess? Avoid using your birthday or part of your phone number.
• Since e-mail isn't always secure, you know better than to send private information, like your credit card number, this way - but remember, not all websites are secure either.
• Make sure you are shopping on a secure website or look for merchants who use added security features, like Verified by Visa, before entering your credit card information.
• Also, shred your personal information. There is only one of you, let's keep it that way.

If you scored under 14: Be careful - you're sharing too much!

• Take the time to protect what is important - your identity, your money and yourself. Don't be so carefree with personal information. Never lend your cards to anyone, or give anyone your PIN. Even better, memorize your PIN so you don't need to write it down. And, never carry your PIN with your wallet.
• Unless you initiated the call, do not provide your credit card number over the phone.
• Though email is a convenient way to contact someone, your financial institution will never ask you to verify your banking information that way. And remember, that king from a far off land asking you to share your bank account information is not actually going to make you rich.