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.