Don't let Christmas ruin your finances

Christmas is not that far away, and that means more and more people are starting to worry how they're going to cope financially. Here are some tips on how to reduce your financial stress.

1. Save up for Christmas

If you set aside a small amount of money each month, you will hopefully have enough money by December to cover your Christmas costs and there will no need to use the credit card.

2. Budget, budget, budget

Draw up a budget. If you plan ahead and work out exactly what you need to buy, you’ll be less likely to waste money on stuff that you don’t actually need. It also makes sense to set some priorities. Do you need to buy presents for every member of your family?

3. Shop around and get cashback

You cut your Christmas costs by shopping around and see who is offering the best deal. You could get some more money back if you use a cashback credit card for your spending

4. Use only cash to purchase items. 

Avoid credit cards if possible. You could spend more than you can afford to repay and That's the situation you want to avoid most of all.

Enjoy your holidays without financial stress. 

Become an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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Tips on how to reduce your mortgage and save for the long term.

1. Always go biweekly on your mortgage payments and NOT monthly. Monthly payments will work out to 12 installments and biweekly will end up to be 13 monthly payments a year.

2. Always try to exercise your pre-payment privilege each year. Most banks yyou can put 10-20% on the original mortgage towards the principal. So when you have extra money, your tax refund or vacation pay, put it towards the mortgage principal.

3. Go variable but make your mortgage payments based on the fixed. This way you will be throwing more principal towards your mortgage

4. Sometime’s it not only the mortgage that people have to pay. It is also the other debt such as car loans and credit cards. It is best to refinance the mortgage plus the debt and make one payment and that way you are able to save money and be more aggressive on your mortgage payment

That is why is important to speak to the mortgage broker to teach you all the options you can exercise.

Become an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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Can I get a mortgage under a business name?

The short answer is yes.

Buying real estate with a corporation can protect you from personal liability and it is a great way to separate business from personal holdings.

Often these are set up to protect a consumer's personal assets in case litigation is brought against his or her business. Setting up a mortgage through a corporation can be challenging, but is not difficult.

 

You will Need

 

• Business Articles of Incorporation or Business registration
• Business financial statements
• Business account statements
• Personal and corporate tax returns
• Personal Guarantee…meaning whoever owns the business must sign off on the mortgage.
• You must be self  employed for at least 2 years or more
• Your must put down at least 10% or more as a down payment
• You and the company must have excellent credit

Also, if you are planning to buy a rental investment property it would make financial sense to put in under a corporate company to save on the capital gains when it is time to sell in the future.

Also be an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is Title Insurance?

Title insurance originated in the United States some 150 years ago, and until recently was not something available in Canada. The most recognizable Title Insurance companies in Canada include Chicago Title Canada and First Canadian Title

In a nut shell, Title Insurance is insurance that, protects the insured against loss resulting from title and survey defects that would otherwise have been revealed by an up-to-date survey, property report or building location certificate. Title Insurance also protects the insured against losses associated with fraud and forgery as it relates to the title.

The difference between Title Insurance and conventionally thought of insurance is that Title Insurance protects the insured against matters that happened in the past as opposed to things that might happen in the future.

There are two types of Title Insurance available and include policies for property owners and lenders. Title Insurance for owners protects the owner against loss to the owner of the property while policies for lenders ensure that the mortgage is valid and enforceable against the property. When purchased, the policy stays in effect for as long as the owner retains an interest in the property and is generally transferable in case of the owner’s death. Title Insurance is available for both residential and commercial properties.

Taken from Chicago Title Canada, risks insured against include the following:

• The un-marketability of the Land.
• Lack of a right of access.
• Someone else has an interest in the title.
• A document is not properly signed, sealed or delivered.
• Forgery, Fraud, duress, incompetence or impersonation.
• Future frauds and forgeries affecting title.
• Defective registration of a document.
• Restrictive covenants limiting the use of the Land.
• Liens arising from mortgages, taxes, utilities, judgments or condominium charges.
• Builder’s Liens.
• Rights of possession arising from leases, options, family law or homestead rights.
• Easements over the Land.
• Enforced removal of existing structures because they encroach onto adjoining land or easements, or because they violate municipal by-laws.
• The house cannot be used as a single family residence because it violates a restriction or zoning by-law.

A big benefit of Title Insurance is the fact that in most cases, it eliminates the requirement for a survey certificate and is generally more cost effective than having a survey completed. The policy is purchased prior to closing on the property or mortgage transaction and is typically ordered by the Lawyer or Notary prior to the purchase or registration of the mortgage.


While most properties qualify for Title Insurance, your Lawyer will advise you if the property is eligible. 

Always be informed…

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is the difference between a Co-signer and a Guarantor?

People often use the terms guarantor and co-signer interchangeably, but they have very different responsibilities and rights. A co-signer is basically a co-owner and he or she is registered on the title and is equally accountable for mortgage payments.

A guarantor, on the other hand, personally guarantees mortgage payments will be made if the original applicant defaults, but has no claim to the property because he or she is not on title. It's a huge responsibility for Guarantors who have the obligations of the mortgage but don't have any claim to the property.

Lenders require co-signers and guarantors usually due to poor credit, insufficient employment history, inadequate down payment or questionable income.

Sometimes, if one spouse is an entrepreneur and does not want to risk losing the house should the business go bankrupt in the future, they can simply become a guarantor on the mortgage and keep themselves off title.

After a period of time, a guarantor or co-signor can be removed off title should the owners of the property be able to qualify on their own. But a lawyer will need to be used to remove the guarantor or co-signor off title.

Before you co-sign or guarantee a mortgage read the document carefully and know your rights.

Always be informed…

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is a Beacon Score?

It is a score that the credit bureau assigns to each client when they have some sort of credit such as credit cards, car loans, RRSP loans, unsecured and secured line of credits.

Most banks look for a minimum score of 620. Below 620, usually the “A” banks will not approve and most people will need to look at the B banks or go private.

What affects the beacon is also if the clients make any late payments, have too much debt and only pay the minimum on the credit card, the score will go down drastically.

To increase you credit score; try to use only 1-2 credit cards or not at all. Always pay your bills in full or at least pay the minimum on time. Late payments will remain on your credit history for seven years. Any collections will also show up on the credit bureau.

It is important to understand your beacon score cause that will decide if you can buy or refinance your house or not.

Be an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is a Status Certificate and why is it important?

A Status Certificate is a report on the current status of a condominium corporation. If you are buying a resale condominium, it is important that your agreement of purchase and sale is conditional, upon review of the Status Certificate by your lawyer.

The Status Certificate provides valuable information directly from the condominium corporation, examples of such information include, Arrears or increases in common expenses; Whether any major work needs to be done to the building; The amount of the reserve fund and whether the reserve fund is sufficient for any major work.

The Status Certificate also provides information about any claims against the corporation and whether the corporation is involved in any proceedings. This is important because if there are high value claims against the corporation and the corporation’s insurance does not provide coverage; the corporation can either increase the common expenses or levy a special assessment against the unit owners. If you are buying a condominium, you need to know of any potential significant increase in your monthly common expenses. .

The Status Certificate package includes the corporation’s financial statements, declaration and by-laws. The Financial statements are a good indication of a corporation’s financial stability.

So, it is imperative to have a qualified lawyer to review the status certificate carefully before buying a condominium.

Be an informed buyer

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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