tag:blogger.com,1999:blog-23879071881532954542024-02-07T18:21:06.585-08:00Toronto Mortgage BrokerEddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.comBlogger75125tag:blogger.com,1999:blog-2387907188153295454.post-49614890122039302832013-12-19T09:24:00.001-08:002013-12-19T09:24:33.314-08:00Don't let Christmas ruin your finances<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRdS4fHWaHC5_HxnvO_a9Ecg0cTagjZCO51LRF39PLN5e9H6yyBN1QUgL2vC-DSgofP5MGxqWAVkmDdjnoUcZSS68QG8XtvFy-L6blFdbLBUeyD-097jBh4Ql-H_yW-RHurNb9ztQIaIsk/s1600/Christmas-Finances.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRdS4fHWaHC5_HxnvO_a9Ecg0cTagjZCO51LRF39PLN5e9H6yyBN1QUgL2vC-DSgofP5MGxqWAVkmDdjnoUcZSS68QG8XtvFy-L6blFdbLBUeyD-097jBh4Ql-H_yW-RHurNb9ztQIaIsk/s320/Christmas-Finances.jpg" width="270" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">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.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">1. Save up for Christmas</span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">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.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">2. Budget, budget, budget</span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">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?</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">3. Shop around and get cashback</span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">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</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">4. Use only cash to purchase items. </span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">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.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">Enjoy your holidays without financial stress. </span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span class="apple-style-span" style="background-color: white; line-height: 18px;"><b>Become an informed client.</b></span></span><div class="MsoNormal" style="background-color: white; line-height: 24pt;">
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<b style="line-height: 13.5pt;"><span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank">Toronto Mortgage Broker</a> </span></b></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-87714892959964539182013-12-12T15:42:00.000-08:002013-12-12T15:42:03.316-08:00Tips on how to reduce your mortgage and save for the long term.<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXLar5tU3KAl0nm5G6hvqHdW8m4A0xtRQm9mh7feLP0Fv08IwLbynCq00umTSDrwGCoQVOoD-1hHqy1R5FjTZlYO__tCgGGzFOWLP6hMw1s_XenFFjIq1yJU9NlqKHd6IoOe0xAXMpnDfB/s1600/reduce-mtg-save-longterm02.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="277" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXLar5tU3KAl0nm5G6hvqHdW8m4A0xtRQm9mh7feLP0Fv08IwLbynCq00umTSDrwGCoQVOoD-1hHqy1R5FjTZlYO__tCgGGzFOWLP6hMw1s_XenFFjIq1yJU9NlqKHd6IoOe0xAXMpnDfB/s320/reduce-mtg-save-longterm02.jpg" width="320" /></a></div>
<div>
<span style="font-family: Arial; font-size: x-small;"><span style="line-height: 18px;"><br /></span></span></div>
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<span style="font-family: Arial; font-size: x-small;"><span style="line-height: 18px;"><br /></span></span></div>
<ol start="1" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; line-height: 13.5pt; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">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.</span></span></li>
</ol>
<ol start="2" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; line-height: 13.5pt; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">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.</span></span></li>
</ol>
<ol start="3" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; line-height: 13.5pt; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">Go
variable but make your mortgage payments based on the fixed. This way you
will be throwing more principal towards your mortgage</span></span></li>
</ol>
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<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; line-height: 13.5pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">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</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
</ol>
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<span class="apple-style-span"><span style="font-family: Arial; font-size: 10pt;">That is why is important to speak to the mortgage broker to teach
you all the options you can exercise.</span></span><span style="font-family: Arial; font-size: 10pt;"><o:p></o:p></span></div>
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<br /></div>
<span class="apple-style-span"><span style="background-color: white; background-position: initial initial; background-repeat: initial initial; font-family: Arial; font-size: 10pt;">Become
an informed client.</span></span><br />
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<b style="line-height: 13.5pt;"><span style="font-family: Arial;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank">Toronto Mortgage Broker</a> </span></b></div>
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<!--[endif]--></span>Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-87787853802725438012013-12-06T06:37:00.001-08:002013-12-06T08:29:11.911-08:00Can I get a mortgage under a business name?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix8hGEI8x7FFXQp-ofAnfqsEiL_rPYdSJcNGBvj-y_RE5ps3DMu-ojKo5adAckMRQPEHbezU55ckpT_fPFhBigpO-mghR-LrTUUnghDOS1votdeOO23wHri7BTNBWMfVTT9aBHK6RcUvVe/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix8hGEI8x7FFXQp-ofAnfqsEiL_rPYdSJcNGBvj-y_RE5ps3DMu-ojKo5adAckMRQPEHbezU55ckpT_fPFhBigpO-mghR-LrTUUnghDOS1votdeOO23wHri7BTNBWMfVTT9aBHK6RcUvVe/s400/001.jpg" width="400" /></a></div>
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<h1 style="background: white; margin-bottom: .0001pt; margin: 0in;">
<span style="font-family: Arial; font-size: 10pt;">The short answer is yes.</span></h1>
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<span class="apple-style-span"><span lang="EN" style="background: white; color: #333333; font-family: Arial; font-size: 10.0pt; mso-ansi-language: EN;">Buying
real estate with a corporation can protect you from personal liability and it
is a great way to separate business from personal holdings.</span></span></div>
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<span class="apple-style-span"><span lang="EN" style="background: white; color: #333333; font-family: Arial; font-size: 10.0pt; mso-ansi-language: EN;"><br /></span></span></div>
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<span class="apple-style-span"><span style="font-family: Arial; font-size: 10pt;">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.</span></span><span style="font-family: Arial; font-size: 10pt;"><o:p></o:p></span></div>
<h4 style="background: white; line-height: 13.5pt; margin-bottom: .0001pt; margin: 0in;">
<span class="apple-style-span"><span style="font-family: Arial; font-size: 10pt;"> </span></span></h4>
<h4 style="background: white; line-height: 13.5pt; margin-bottom: .0001pt; margin: 0in;">
<span class="apple-style-span"><span style="font-family: Arial; font-size: 10pt;">You will Need<o:p></o:p></span></span></h4>
<h4 style="background: white; line-height: 13.5pt; margin-bottom: .0001pt; margin: 0in;">
<span style="font-family: Arial; font-size: 10pt;"> </span></h4>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="title48"><span style="font-family: Arial; font-size: 10.0pt;">Business Articles of
Incorporation or Business registration</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">Business financial statements</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">Business account statements</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="title48"><span style="font-family: Arial; font-size: 10.0pt;">Personal and corporate tax
returns</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">Personal Guarantee…meaning
whoever owns the business must sign off on the mortgage.</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">You must be self employed
for at least 2 years or more</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">Your must put down at least 10%
or more as a down payment</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
<li class="MsoNormal" style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-bottom: 3pt;"><span class="apple-style-span"><span style="font-family: Arial; font-size: 10.0pt;">You and the company must have
excellent credit</span></span><span style="font-family: Arial; font-size: 10.0pt;"><o:p></o:p></span></li>
</ul>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 13.5pt;">
<span class="apple-style-span"><span style="font-family: Arial; font-size: 10pt;">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.</span></span><span style="font-family: Arial; font-size: 10pt;"><o:p></o:p></span></div>
<br />
<span style="background-color: white; font-family: Arial; font-size: 10pt; line-height: 13.5pt;">Also be an informed client.</span><br />
<span style="background-color: white; font-family: Arial; font-size: 10pt; line-height: 13.5pt;"><br /></span>
<div class="MsoNormal" style="background-color: white; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 24pt;">
<b style="line-height: 13.5pt;"><span style="font-family: Arial;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank">Toronto Mortgage Broker</a> </span></b></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-4263346579946805112013-11-15T07:46:00.000-08:002013-11-15T07:46:05.056-08:00What is Title Insurance?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGUvFkGhaGnnBk2BzWb5XZeUPdkW2HuvX2toGqnANUAQBT4POeMfP49q1AKcrMJqnWyJPjRcIY3EgnX3VSMA1tg-Sq_SPZ2hHCAuSG3l2C4PvaZnAk6E4Ay9gEd_hLi2rD5IUH5xljlYLb/s1600/TITLE-INSURANCE.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGUvFkGhaGnnBk2BzWb5XZeUPdkW2HuvX2toGqnANUAQBT4POeMfP49q1AKcrMJqnWyJPjRcIY3EgnX3VSMA1tg-Sq_SPZ2hHCAuSG3l2C4PvaZnAk6E4Ay9gEd_hLi2rD5IUH5xljlYLb/s400/TITLE-INSURANCE.jpg" width="400" /></a></div>
<h2>
<span style="font-size: small;"><br /></span></h2>
<span style="font-family: Tahoma;">Title insurance originated in the <st1:country-region w:st="on">United States</st1:country-region> some 150 years ago, and until
recently was not something available in <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region>. The most recognizable Title
Insurance companies in <st1:country-region w:st="on">Canada</st1:country-region>
include Chicago Title <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region>
and First Canadian Title<o:p></o:p></span><br />
<span style="font-family: Tahoma;"><br /></span>
<span style="font-family: Tahoma;">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.<o:p></o:p></span><br />
<span style="font-family: Tahoma;"><br /></span>
<span style="font-family: Tahoma;">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.<o:p></o:p></span><br />
<span style="font-family: Tahoma;"><br /></span>
<span style="font-family: Tahoma;">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.<o:p></o:p></span><br />
<span style="font-family: Tahoma;"><br /></span>
<span style="font-family: Tahoma;">Taken from Chicago Title <st1:country-region w:st="on"><st1:place w:st="on">Canada</st1:place></st1:country-region>, risks
insured against include the following:<o:p></o:p></span><br />
<span style="font-family: Tahoma;"><ul>
<li>The un-marketability of the Land.</li>
<li>Lack of a right of access.</li>
<li>Someone else has an interest in the title.</li>
<li>A document is not properly signed, sealed or delivered.</li>
<li>Forgery, Fraud, duress, incompetence or impersonation.</li>
<li>Future frauds and forgeries affecting title.</li>
<li>Defective registration of a document.</li>
<li>Restrictive covenants limiting the use of the Land.</li>
<li>Liens arising from mortgages, taxes, utilities, judgments or
condominium charges.</li>
<li>Builder’s Liens.</li>
<li>Rights of possession arising from leases, options, family law or
homestead rights.</li>
<li>Easements over the Land.</li>
<li>Enforced removal of existing structures because they encroach onto
adjoining land or easements, or because they violate municipal by-laws.</li>
<li>The house cannot be used as a single family residence because it
violates a restriction or zoning by-law.</li>
</ul>
</span><ul type="disc">
</ul>
<span style="font-family: Tahoma;">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.<o:p></o:p></span><br />
<br />
<span style="font-family: Tahoma;"><br /></span>
<span style="font-family: Tahoma;">While most properties qualify for Title
Insurance, your Lawyer will advise you if the property is eligible. <o:p></o:p></span><br />
<span style="font-family: Tahoma;"><br /></span>
<div class="MsoNormal" style="background-color: white; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 24pt;">
<span style="font-family: Tahoma;">Always be informed…</span></div>
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<span class="apple-style-span"><b><span style="font-family: Arial;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank">Toronto Mortgage Broker</a> </span></b></span><span style="font-family: Arial;"><o:p></o:p></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-80332293361197630612013-11-08T05:49:00.001-08:002013-11-08T05:49:52.004-08:00What is the difference between a Co-signer and a Guarantor?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyajTB4n8H89m0rroiV_Y4vqZby8eWrHiTiKNJvlStItqlfTjRI3mgwg6-z2Ne4NoDj8g06yqjCpgMsoTta6P2gUl1rx7vEmvfKxVqSknyqkdd70jTCLUfRmFQMISlgAhZg62bfXV_6YDI/s1600/COSIGNER-GUARANTOR.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyajTB4n8H89m0rroiV_Y4vqZby8eWrHiTiKNJvlStItqlfTjRI3mgwg6-z2Ne4NoDj8g06yqjCpgMsoTta6P2gUl1rx7vEmvfKxVqSknyqkdd70jTCLUfRmFQMISlgAhZg62bfXV_6YDI/s400/COSIGNER-GUARANTOR.jpg" width="400" /></a></div>
<h2>
<br /></h2>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;">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.<o:p></o:p></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;"><br /></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;">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.<o:p></o:p></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;"><br /></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;">Lenders require
co-signers and guarantors usually due to poor credit, insufficient employment
history, inadequate down payment or questionable income.<o:p></o:p></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;"><br /></span></div>
<div class="body">
<span style="font-family: Tahoma; font-size: 12.0pt;">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. <o:p></o:p></span></div>
<span lang="EN" style="font-family: Tahoma; mso-ansi-language: EN;"><br /></span>
<span lang="EN" style="font-family: Tahoma; mso-ansi-language: EN;">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. <o:p></o:p></span><br />
<div class="MsoNormal">
<strong><span style="font-family: Tahoma; font-weight: normal; mso-bidi-font-weight: bold;">Before you co-sign or guarantee a mortgage read the
document carefully and know your rights</span></strong><strong><span style="font-family: Tahoma;">.<o:p></o:p></span></strong></div>
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="margin-left: 27.0pt; mso-cellspacing: 0in; mso-padding-alt: 0in 0in 0in 0in; width: 93%px;">
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<span style="font-family: Tahoma; font-size: 10pt;">Always be informed…</span><span style="font-family: Arial; font-size: 10pt;"><o:p></o:p></span></div>
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<span class="apple-style-span"><b><span style="font-family: Arial; font-size: 10pt;">For more information contact your <a href="http://www.eddiemac.ca/" target="_blank">Toronto Mortgage Broker</a> </span></b></span><span style="font-family: Arial; font-size: 10pt;"><o:p></o:p></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-34850222344582864092013-11-04T14:15:00.001-08:002013-11-04T14:15:39.229-08:00What is a Beacon Score?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg34KnOMZT8s7FdNFxd3qZK6kdZNoNp-EoBgXwkanrbfA146NeJDCLff1T1yKbwWHG0ZzfBFVAJiXNisX8qYp-OEeMEhhasIYbfT01jtEHW82Y7h60pM9Pv2YCtw3H989LgjjWP2GAeb1V2/s1600/beacon-score02.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg34KnOMZT8s7FdNFxd3qZK6kdZNoNp-EoBgXwkanrbfA146NeJDCLff1T1yKbwWHG0ZzfBFVAJiXNisX8qYp-OEeMEhhasIYbfT01jtEHW82Y7h60pM9Pv2YCtw3H989LgjjWP2GAeb1V2/s320/beacon-score02.jpg" width="210" /></a></div>
<h2>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;"><br /></span></h2>
<h2>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">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.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">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.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">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. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">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. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">It is important to
understand your beacon score cause that will decide if you can buy or refinance
your house or not.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal;">Be an informed client.</span></div>
</h2>
<div class="MsoNormal" style="background: white; line-height: 13.5pt;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="apple-style-span"><b>For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey;" target="_blank">Toronto
Mortgage Broker</a> </b></span><o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>at 416-920-9931</b><o:p></o:p></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-35027782725748434532013-10-24T11:51:00.000-07:002013-10-24T11:51:47.140-07:00What is a Status Certificate and why is it important?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAddXdGeYuEOHfnNW8SpxO34JbVJ-8SBk7wMBusF9CLlp4B9ZjIwDjT-yVuqVfZXHqY89etWZ2Jb03prTEMaVvaSp9DGSunlmL0JYclxJqDTcjQJbK3RERTXoXP2wt-HdbalXBE5u4bcNQ/s1600/status-certificate.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAddXdGeYuEOHfnNW8SpxO34JbVJ-8SBk7wMBusF9CLlp4B9ZjIwDjT-yVuqVfZXHqY89etWZ2Jb03prTEMaVvaSp9DGSunlmL0JYclxJqDTcjQJbK3RERTXoXP2wt-HdbalXBE5u4bcNQ/s400/status-certificate.jpg" width="400" /></a></div>
<div class="MsoNormal" style="margin-bottom: 3.0pt; mso-outline-level: 2;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 3.0pt; mso-outline-level: 2;">
<br /></div>
<div class="MsoNormal" style="line-height: 18.0pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 3.0pt;">
<span style="font-family: Tahoma;">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.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 18.0pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 3.0pt;">
<span style="font-family: Tahoma;">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. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 18.0pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 3.0pt;">
<span style="font-family: Tahoma;">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. .<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Tahoma;">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. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Tahoma;">So, it is imperative to
have a qualified lawyer to review the status certificate carefully before
buying a condominium.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Tahoma;"><br /></span></div>
<br />
<div style="line-height: 24.0pt;">
<span style="font-family: Tahoma;">Be an informed
buyer<o:p></o:p></span></div>
<div style="line-height: 24.0pt;">
<span style="font-family: Tahoma;"><br /></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-84400509333989098742013-10-18T05:56:00.000-07:002013-10-18T05:56:55.000-07:00What are Closing Costs?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9AUF-zWK5HmS16kc0vmVZZU3Zu56DH_sE8ojiQrl4PkomHily079LjJwwXIebLPZcqGOnV2kuKqlRMMd5SVWqkkqLW5XKiJ9MeaSSHItRLaeqz0l9tszpHNWXWG3SQf5i8Nn3wegySz_0/s1600/Closing-Costs.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9AUF-zWK5HmS16kc0vmVZZU3Zu56DH_sE8ojiQrl4PkomHily079LjJwwXIebLPZcqGOnV2kuKqlRMMd5SVWqkkqLW5XKiJ9MeaSSHItRLaeqz0l9tszpHNWXWG3SQf5i8Nn3wegySz_0/s400/Closing-Costs.jpg" width="400" /></a></div>
<div style="text-align: center;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Closing
costs are a list of charges that your
lawyer presents to you on the closing date which unfortunately surprises many
people. According to CMHC and Genworth, one should have, in addition to the
down payment, at least 1.5% of the purchase price for closing costs (we say
2-2.5%, just to be on the safe side). The costs vary among provinces, and for
that matter, among cities.<o:p></o:p></span></span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Below you
will find a brief explanation of these costs. Please note that not all of them
may apply to your specific situation, and there may be more that apply in your
circumstance. Use this is a guideline,
and then talk with your lawyer who can provide a more realistic estimate for
your situation, since he or she is the best resource for your closing costs.<o:p></o:p></span></span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Appraisal
Fee</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: The appraisal provides the lenders with a professional opinion of the
market value of the property. This cost is normally the borrower's
responsibility and it ranges as low as $70 for a drive-by appraisal to as much
as $350 for a full appraisal, and the average being $250, plus H.S.T.
Occasionally, the costs could be slightly higher for larger, custom-built
homes, or homes in remote parts.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Home
Inspection Fee</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: A professional inspection of the home, top to bottom, is
for the benefit of the buyer, therefore, that's who absorbs the cost. A typical
home inspection can cost anywhere from $300-$400, but our opinion is that they
are well worth the investment. New home buyers may not worry about it, but a
definite must for buyers purchasing properties older than 5 years. When hiring
a home inspector, make sure the inspector has liability insurance, just in case
a mistake is made.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Fire
Insurance</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: All mortgage lenders will require a certificate of fire
insurance to be in place from the time you take possession of the home. The
amount required is generally at least the amount of the mortgage or the
replacement cost of the home. This cost can vary on the property size and
extras being insured, as well as the insurance company and the municipality.
The cost can vary anywhere from $250-$600 for most properties.</span><br />
<br />
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Provincial
Sales Tax of 8% (P.S.T.)</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: If your mortgage is CMHC or Genworth
insured (less than 20% down payment), there is P.S.T. of 8% in Ontario, payable
at closing, on the CMHC or Genworth fee. While the insurance premium can be
added to the mortgage amount, the P.S.T. must be paid at closing. For example,
a mortgage that results in a $1,000 insurance fee, will have to pay $80 in PST
upon closing.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Land
Survey Fee Or Title Insurance Fee</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: A recent Survey of the property is
usually required by the lender, and if one is not available, it normally costs
anywhere from $600-$900 for a new survey. In lieu of the Survey, most lenders
today will accept Title Insurance, at a much lower price of approximately $225.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Legal
Costs and Disbursements</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: A lawyer or notary will charge a fee for
their professional services involved in drafting the title deed, preparing the
mortgage, and conducting the various searches. The disbursements, on the other
hand, are out-of-pocket expenses incurred, such as registrations, searches,
supplies, etc., plus H.S.T.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Land
Transfer Tax</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: Most provinces charge a land transfer tax, payable by the
purchaser, and the amount varies from province to province. This tax is based
on the purchase price. In <st1:state w:st="on"><st1:place w:st="on">Ontario</st1:place></st1:state>,
first time home buyers who purchase a new home get a refund up to $2000.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">New
Home Warranty</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: In many provinces, new homes are covered by a new home
warranty program. The cost to the purchaser for this warranty is approximately
$600 and should the builder default or fail to build to an agreed-upon
standard, the fund will finish or repair the deficiencies.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">Closing
Adjustments: </span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">An estimate should be made for closing adjustments for
bills that the seller has prepaid such as property taxes, utility bills, and
other charges. Any bills after the closing date are the purchaser's
responsibility. Your lawyer/notary will let you know what they are exactly once
the various searches have been completed.</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<strong style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 150%;">HST</span></strong><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">: On the purchase
of a newly constructed home, HST is payable, but make sure you know who pays
this, you or the builder. Therefore, on the offer, the purchase price will say
"Plus HST" or "HST Included", and who gets the HST new home
rebate. A lot of builders have included this cost into the purchase price so that
the buyer does not have to come up with that at closing. (As well, this tax is
also charged on all professional fees).</span><br />
<span style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<br />
<div class="MsoNormal" style="background-color: white; line-height: 12.75pt; margin: 2.25pt 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333;">Always be an informed client.</span><span lang="EN"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="background-color: white; line-height: 12.75pt; margin: 2.25pt 0in;">
<span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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<span class="apple-style-span"><b><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><span style="color: blue;">Toronto Mortgage Broker</span></a><span style="line-height: 20px;"> </span></span></b></span></div>
<div class="MsoNormal" style="background-color: white; line-height: 20px;">
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-16235982025030526832013-10-10T17:51:00.001-07:002013-10-10T17:51:10.239-07:00What is Equifax and Transunion?<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgT_bHrPd22qYJtAQt799XItU1sJou7ep26fVbqd6wHHqbboRdu5Bzhlr6uCyHcwdXR4z5tzbR7xshDwj8wGa4BrrEbVa2uN1ZjA8BzwCfo93pDqQ1NofE59io7kjkbci_LSozFXxbF37Ud/s1600/002.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgT_bHrPd22qYJtAQt799XItU1sJou7ep26fVbqd6wHHqbboRdu5Bzhlr6uCyHcwdXR4z5tzbR7xshDwj8wGa4BrrEbVa2uN1ZjA8BzwCfo93pDqQ1NofE59io7kjkbci_LSozFXxbF37Ud/s320/002.jpg" width="320" /></a></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><span lang="EN">Equifax and Transunion</span></b><span lang="EN"> are</span><span lang="EN"> consumer credit reporting agencies.<o:p></o:p></span></span></div>
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<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">The Equifax and Transunion credit
report offers vital information about your credit history. The information in
your credit report serves as a reference point for banks considering your
creditworthiness. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Your credit report will contain
information on whether or not you have missed, or have been late on your
payments in the past and how late you were. It will also provide details such
as your current and previous addresses, social security number, any credit card
accounts and current balances you may have, as well as past credit card
accounts even if those accounts have
been closed or canceled. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">This report also lists any auto loans
and mortgages along with balances and how diligent you are about making the
payments.<o:p></o:p></span></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">All banks will use Equifax and or
Transunion. So it is important to check both agencies at least once a year to
thoroughly review your credit history, and to check for errors or signs of
identity theft in your credit report. . <o:p></o:p></span></span></div>
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<br /></div>
<br />
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333;">Be an informed client.</span><span lang="EN"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white; line-height: 12.75pt; margin-bottom: 2.25pt; margin-left: 0in; margin-right: 0in; margin-top: 2.25pt;">
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<span class="apple-style-span"><b><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><span style="color: blue;">Toronto Mortgage Broker</span></a><span style="line-height: 20px;"> </span></span></b></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-39305941302653385252013-10-07T15:11:00.002-07:002013-10-07T15:11:24.744-07:00What is a conditional offer?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4Xu2g0-Dr_K7v8idCcdwz3wZsAWyL95XmM8NBDbXQFjl7IqcVIf4DKsru8o6YXqjXT3Y6nzplpEes-GOQVmu1-fqvZIgzL0oGcKzFKXoRR3qmw4Fdu70-Zv2JPz1FPW9P5cEelJziiZAe/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4Xu2g0-Dr_K7v8idCcdwz3wZsAWyL95XmM8NBDbXQFjl7IqcVIf4DKsru8o6YXqjXT3Y6nzplpEes-GOQVmu1-fqvZIgzL0oGcKzFKXoRR3qmw4Fdu70-Zv2JPz1FPW9P5cEelJziiZAe/s400/001.jpg" width="400" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">When you buy a house, there is usually a clause based on the
following:</span></div>
<div class="MsoNormal">
</div>
<ol>
<li><span style="font-family: Arial, Helvetica, sans-serif;">A home
inspection</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Selling
your house</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">And
most often, arranging mortgage financing.</span></li>
</ol>
<span style="font-family: Arial, Helvetica, sans-serif;">There is a 5 day clause where you
will need to arrange the mortgage. However when there are bidding wars, at
times, you are advised to go with a firm offer so that the vendor can accept
your offer compared to others.<br /></span><div>
<span style="font-family: Arial, Helvetica, sans-serif;">But that can be dangerous because:</span></div>
<div>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">If you are putting down less
than 20% as a down payment, it is the Insurance (through CMHC/Genworth or
Canada Guaranty) that has the power to approve your deal or not.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The bank may require an
appraisal and if the house is in bad repair the bank will not finance it. At
times, if the appraisal is less than what you bought for, you will need to put
more money down as a down payment.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">If it was a “grow-op” the bank
will not finance it</span></li>
</ul>
</div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;">As strategy it may be best to
reduce the days on financing from 5 days to 2 or one day.</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;">So if someone tells you to go firm
on an offer, they better have the entire money to lend you. Otherwise, you must
and should always place a conditional offer on what you buy. </span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;">Always be informed</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div>
<div class="MsoNormal" style="background-color: white; line-height: 18px;">
<span class="apple-style-span"><b><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><span style="color: blue;">Toronto Mortgage Broker</span></a><span style="line-height: 20px;"> </span></span></b></span></div>
<div class="MsoNormal" style="background-color: white; line-height: 20px;">
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-6260552367092140252013-09-26T17:23:00.000-07:002013-09-26T17:27:51.793-07:00What is a private mortgage?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-3z7ckhyphenhyphenWWjc9LvtFyqGFOdSOcu9XF8e6pTvEnvwMyBuFFDMOL6yAZNzqsR1RIU0ZajJdtqKWTHfdLU9g3Uo4jUmpLZr2c4WIT6pOSGmhik_USh6pYlYWr_mOOz2etB8NJmnkCMibkRM6/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="316" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-3z7ckhyphenhyphenWWjc9LvtFyqGFOdSOcu9XF8e6pTvEnvwMyBuFFDMOL6yAZNzqsR1RIU0ZajJdtqKWTHfdLU9g3Uo4jUmpLZr2c4WIT6pOSGmhik_USh6pYlYWr_mOOz2etB8NJmnkCMibkRM6/s400/001.jpg" width="400" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="background-color: white;">It is a mortgage that is held by a private
individual where the client could not get approved through an A or B bank.</span><br />
<br />
<span style="background: white;">People will use a private mortgage for the
following reasons:</span></span></div>
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<span style="line-height: 13.5pt; text-indent: 0in;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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<ol>
<li><span style="line-height: 13.5pt; text-indent: 0in;"><span style="font-family: Arial, Helvetica, sans-serif;">If the mortgage is in arrears with the bank</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 13.5pt; text-indent: 0in;">If there is a grow op of marijuana</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 13.5pt; text-indent: 0in;">If there is a bankruptcy and the client has not or just been
recently discharged</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 13.5pt; text-indent: 0in;">If the client needs money for construction</span></span></li>
<li><span style="line-height: 13.5pt; text-indent: 0in;"><span style="font-family: Arial, Helvetica, sans-serif;">If the client does not show a lot of income</span></span></li>
<li><span style="line-height: 13.5pt; text-indent: 0in;"><span style="font-family: Arial, Helvetica, sans-serif;">If the client has very bad credit</span></span></li>
</ol>
<br />
<br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><br />
<span style="background-color: white;">These mortgages are short-term for only 1 yr
until the client gets their situation better. The interest rates are higher,
but it is better than paying 19-25% on their credit cards.</span><br />
<br />
<span style="background-color: white;">The public sometimes is upset to pay a private
individual higher interest rates, but they are upset to pay the bank the higher
interest rates? Go figure.</span><br />
<br />
<span style="background-color: white;">The public needs to understand that the banks
will take a snapshot photo of your current situation. Once looking at the
photo, if they do not like it they will not be able to help you out.</span><br />
<br />
<span style="background-color: white;">Thankfully, these private individuals do exist
to help you short-term and get you out of this situation and when there are
improvements we can move you back to the bank.</span><br />
<br />
<span style="background-color: white;">That is why it is important to understand that
the banks are running a business and the client cannot take it personally.</span><br />
<br />
</span><span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;">It is important to be informed and educated.</span><span style="font-family: Georgia; font-size: 10pt;"><o:p></o:p></span></span><br />
<span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span style="font-size: 12pt;">Video <a href="http://youtu.be/trEJaYtozLY">http://youtu.be/trEJaYtozLY</a></span></div>
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<span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-39923858621455041582013-09-19T15:11:00.001-07:002013-09-19T15:11:28.772-07:00Is it better to pay your property taxes with your mortgage payment?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQqjXRpOXQ7sJlt_QLJrrjKBCjcKs5ajI0bxDCm6ImTXpkBcOnwbD5Mm64jK7TqToF362VTLlPDsXzX6EEJXlqjMRMUd9b5MyWiLzMTjH5Y5sdSlhdBaJ-iX45j1vw1J8aof1tM9qvWzBo/s1600/poperty_taxes.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQqjXRpOXQ7sJlt_QLJrrjKBCjcKs5ajI0bxDCm6ImTXpkBcOnwbD5Mm64jK7TqToF362VTLlPDsXzX6EEJXlqjMRMUd9b5MyWiLzMTjH5Y5sdSlhdBaJ-iX45j1vw1J8aof1tM9qvWzBo/s400/poperty_taxes.jpg" width="338" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">That
depends. Some Lenders require you to. If
they don’t require you to, then it depends on you. Do you have the discipline to
save $200-300 a month until the tax bill comes? If not, then let the bank pay
your property taxes. It will be more convenient for you, and likely less
stressful.</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">However,
that convenience will cost you more money in the long run. In the first year on
the mortgage, the bank will collect a little bit more than the actual taxes.
The bank wants to make sure that they have a cushion built in for the future,
should you default on the property taxes. </span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">If
you default, any taxes owing to the government are always in first position and
take precedence over any outstanding mortgage balance. You must always pay your
taxes first or the bank will pay them on your behalf and chase you down to
settle the tax bill that you now owe to the bank!</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">The
moral of the history is: if you cannot afford to pay the mortgage payments plus
the property tax bill, then you cannot afford the property, it’s that simple.
Don’t mess with the tax man!</span></div>
<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Be
an informed client. Seek professional advise. </span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-18135065827173048072013-09-12T12:04:00.001-07:002013-09-12T12:11:04.517-07:00Tips on how to improve your credit score<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBhLMuE54Ze2satU8w0eXWpHdgajX6d8QoTPJYkOHiAqHV5pxcjFlQrfKFAIxYyt0nfANsMKsKCrOz3ER1UcxmWPHM18ucURm6TXL5mH5XD8hkIXx0Wmew7Jz-IOoadNypSKQoFYqpk8Gf/s1600/tip-improve-credit.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBhLMuE54Ze2satU8w0eXWpHdgajX6d8QoTPJYkOHiAqHV5pxcjFlQrfKFAIxYyt0nfANsMKsKCrOz3ER1UcxmWPHM18ucURm6TXL5mH5XD8hkIXx0Wmew7Jz-IOoadNypSKQoFYqpk8Gf/s400/tip-improve-credit.jpg" width="297" /></a></div>
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<div>
<br /></div>
<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><span style="background-color: white;">Avoid late payments on your credit cards.</span></strong><span class="apple-converted-space"><span style="background-color: white;"> </span></span><span style="background-color: white;">If you can, don't wait until
the end of the month to pay you credit card bills. If you buy something today,
go the bank the next few days and pay it off in full or make the payment
earlier and not wait until month end. Also make more than interest only
payments.</span></span><span style="font-family: Arial, Helvetica, sans-serif;"><br />
<br />
<strong><span style="background-color: white; background-position: initial initial; background-repeat: initial initial;">Do not let people
pull your credit too regularly because your score will go down.</span></strong><span class="apple-converted-space"><b><span style="background: white;"> </span></b></span><br />
<span style="background-color: white;">Only pull when necessary to buy a property.</span><br />
<br />
<strong><span style="background-color: white; background-position: initial initial; background-repeat: initial initial;">Do not close your
credit cards.</span></strong><br />
<span style="background-color: white;">The older your accounts, the better your score
is</span><br />
<br />
<strong><span style="background-color: white; background-position: initial initial; background-repeat: initial initial;">Avoid having high
balances on your credit cards.</span></strong><span class="apple-converted-space"><b><span style="background: white;"> </span></b></span><br />
<span style="background-color: white;">Try to stay below your credit card limits and
not be over the limit. Your credit card balance should be no more than 80% of
your credit limit.<span class="apple-converted-space"> </span></span><br />
<br />
<strong><span style="background-color: white; background-position: initial initial; background-repeat: initial initial;">No credit is bad
credit.</span></strong><span class="apple-converted-space"><b><span style="background: white;"> </span></b></span><br />
<span style="background-color: white;">Try to establish some credit to show that you
can be responsible with your payments. Worst case, use cash as collateral to
secure credit<span class="apple-converted-space"> </span></span><br />
<br />
</span><strong><span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;">Avoid bankruptcies,
credit proposals, judgments and collections.</span><span style="font-family: Georgia; font-size: 10pt;"><o:p></o:p></span></span></strong></div>
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<strong><span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></strong></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><span lang="EN">Always be an informed client.</span></b></span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /><span lang="EN" style="color: #333333;"><br /></span></b></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-27931390795671622522013-09-05T10:29:00.002-07:002013-09-05T10:29:32.981-07:00Four tips to ensure you can deduct interest on your debt<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMb4DPoE7kmyGroqHwlyIhB_SjKuykJ_ug63P_J9dF7CGRkpjdmBE6G_jLDCghfER7jDP3YdSx3HUMdEOMbt0pIjWWekGim-ttUGM8m62bYmHu9AS1rHjlTXlFthikp7kxdhWzZQpHmllB/s1600/reduce-debt.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMb4DPoE7kmyGroqHwlyIhB_SjKuykJ_ug63P_J9dF7CGRkpjdmBE6G_jLDCghfER7jDP3YdSx3HUMdEOMbt0pIjWWekGim-ttUGM8m62bYmHu9AS1rHjlTXlFthikp7kxdhWzZQpHmllB/s400/reduce-debt.jpg" width="400" /></a></div>
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<h3 style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.0pt;">
<span style="font-weight: normal;"><span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"> </span></span></h3>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="apple-style-span">Ms.
Smith owned a principal residence and a rental property. She owned her
residence free and clear without any debt secured by the property. She had
taken out a mortgage to purchase the rental property and was able to deduct her
interest on that mortgage since the property earned rental income. That is, she
directly used the mortgage proceeds for the purpose of earning income, so the
taxman allowed the deduction for her interest costs. She then swapped the
properties so that her principal residence became a rental and her rental
became her principal residence.</span><br />
<span style="background-position: initial initial; background-repeat: initial initial;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;">Ms. Smith still wanted
to own her residence (the former rental) free and clear of debt, so she
borrowed funds against the new rental property (her former home) and used the
proceeds to pay off the debt on her new residence (the former rental). Follow
me? CRA then denied Ms. Smith her interest deduction going forward. They went
to court over the issue, and CRA won the battle in court.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><strong><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">The ideas </span></strong>I mentioned before that your intention or purpose for borrowing
money is irrelevant when it comes to deducting interest. Further, the assets
you pledge as security for the debt are also irrelevant. All that matters is
direct use of the borrowed money. So, what could Ms. Smith have done
differently to enable a deduction for her interest? More importantly, what can
you do today to ensure that you’re entitled to deduct interest on your debt?
Here are a few ideas:<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><span style="border: 1pt none windowtext; padding: 0in;">1. <st1:city w:st="on"><st1:place w:st="on">Sale</st1:place></st1:city> to a friend:</span></strong> <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;">Ms. Smith could have
sold her principal residence to an accommodating party – say, a friend or
relative – in exchange for a promissory note. She could have then borrowed
money from the bank to repurchase that property from her friend or relative.
Her friend or relative could have then used the cash to repay the promissory
note owing to Ms. Smith. If Ms. Smith then used the property to earn rental
income (as she did), then she would have been able to deduct the interest on
the new debt.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><span style="border: 1pt none windowtext; padding: 0in;">2. <st1:city w:st="on"><st1:place w:st="on">Sale</st1:place></st1:city> on the open market:</span></strong> <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;">Suppose you have
non-deductible interest on some debt. If you have other cash or marketable
securities available, consider taking that cash or selling those securities for
cash, using the cash to pay down your non-deductible debt, and then borrowing
to invest in new assets (perhaps replace those same securities you just sold)
with a purpose of producing income. Presto, you should be able to deduct your
interest costs now. Just be sure to count the tax cost associated with selling
any marketable securities beforehand. If you don’t like the tax hit you’re
going to face when selling those securities, consider the next idea instead.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<strong><span style="border: 1pt none windowtext; padding: 0in;"><span style="font-family: Arial, Helvetica, sans-serif;">3. Transfer to a corporation:<o:p></o:p></span></span></strong></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;">Suppose you have
non-deductible interest on some debt and you have other assets, perhaps
marketable securities available. Consider transferring those assets to a
corporation (even if these assets have appreciated in value there should be no
tax to pay if you make an election under Section 85 of the Income Tax Act when
making the transfer; see a tax pro). In exchange, take back a promissory note
for the cost amount (that is, the adjusted cost base) of the assets transferred
(the promissory note cannot be for more than the cost of those assets,
otherwise you could trigger some tax). Then, borrow funds from the bank to
subscribe for more shares in your corporation. The corporation can use the new
cash to pay off all or part of the note owing to you. You can then use the cash
to pay down your non-deductible debt. You should now be able deduct the
interest on the new debt since the proceeds are used to invest in shares of
your company.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><span style="border: 1pt none windowtext; padding: 0in;">4. Take out paid-up capital:</span></strong> <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif;">Once again, suppose you
have non-deductible debt. Suppose you also own shares in a private corporation
and you have “paid up capital” in those shares (generally, you’ll have paid-up
capital in shares to the extent you have subscribed for those shares using
cash). Your corporation can then make a tax-free return of all or some of that
paid-up capital to you (see a tax pro for different ways to do this). You can
then use that cash to pay down your non-deductible debt. Finally, you can then
borrow funds to reinvest in more shares of the corporation, or to lend money to
the corporation (even at zero interest; CRA’s Interpretation Bulletin IT-533
confirms that interest will generally be deductible in this case).<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="background-color: white; line-height: 18px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span lang="EN" style="color: #333333;">Always be an informed client.</span><br /><span lang="EN" style="color: #333333;"><br /></span></span></div>
<div class="MsoNormal" style="background-color: white; line-height: 18px;">
<span class="apple-style-span"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: blue;">Toronto Mortgage Broker</span></b></a><span style="line-height: 20px;"> </span></span></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-86115970748091746362013-08-29T11:58:00.002-07:002013-08-29T11:58:53.613-07:00What is the Bank of Canada Rate?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGmlLIAyAFSwNMdXbJCWyTG-1z9ZzRSeMTK_VOL-asIBiRU2DYcPDDbzvUlbZIplOH6pKNiju_5QiZSTbiM2GiMxdAhU1WNCjvzku9du_Sjb96qNHJO7GqrKmjzjWlOm0R9kykoPNWHMWk/s1600/Untitled-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGmlLIAyAFSwNMdXbJCWyTG-1z9ZzRSeMTK_VOL-asIBiRU2DYcPDDbzvUlbZIplOH6pKNiju_5QiZSTbiM2GiMxdAhU1WNCjvzku9du_Sjb96qNHJO7GqrKmjzjWlOm0R9kykoPNWHMWk/s400/Untitled-2.jpg" width="400" /></span></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">It is a rate which is currently at 1% that the government
lends to the bank. The bank, in turn, lends to the public at 3% which is called
the prime lending rate. The prime lending rate affects everyone who has secured
or unsecured lines and variable rate mortgages.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Bank of Canada Rate is a mechanism to control inflation
in this country. Mortgage rates are controlled by the bond and the stock market.
Thus, the Bank of Canada and mortgage
rates are not the same. Mortgage rates change more often than the Bank of
Canada rate. The Bank of Canada Rate usually stays the same for 4-6 months and
sometimes it may be longer.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Bank of Canada is represented by Stephen Poloz and it is
expected that the Bank of Canada Rate (known as prime) will remain the same
until the beginning of 2015.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Bank of Canada Rate will remain the same for the
following reasons.</span></div>
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<ol>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="text-indent: -0.25in;">Indeed
inflation has gone up and Canadians are feeling the pinch on gas and food
prices. However, the </span><span style="text-indent: -0.25in;">inflation rate has not passed the desired thresholds that
will trigger an increase anytime soon.</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="text-indent: -0.25in;">The
Canadian dollar is still strong which is good for us to buy American Dollars or
Euros. But it is not good </span><span style="text-indent: -0.25in;">for the manufacturing sector since our exports are affected
by the dollar. A stronger dollar means less </span><span style="text-indent: -0.25in;">exports are being made. People who
work in the factories are seeing that things are indeed slower.</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="text-indent: -0.25in;">Also,
if the Bank of Canada rate goes up, the foreign investors like it and it in
turn increases the Canadian </span><span style="text-indent: -0.25in;">dollar.</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="text-indent: -0.25in;">But
if the Prime lending remains low, the real estate market will be strong since a
lot of people are able to </span><span style="text-indent: -0.25in;">buy, and or renovate. So the construction sector is
strong.</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="text-indent: -0.25in;">Although
our economy is stronger among the G8 Group, we are still affected on what happens
worldwide. </span><span style="text-indent: -0.25in;">We are not immune. So things that happen in Europe, Asia and the </span><st1:country-region style="text-indent: -0.25in;" w:st="on">United States</st1:country-region><span style="text-indent: -0.25in;"> do have a ripple effect in </span><st1:country-region style="text-indent: -0.25in;" w:st="on">Canada</st1:country-region><span style="text-indent: -0.25in;">.</span></span></li>
</ol>
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<span style="font-family: Arial, Helvetica, sans-serif;">But with a majority government in <st1:place w:st="on">Ottawa</st1:place>, the Bank of <st1:country-region w:st="on">Canada</st1:country-region> doesn’t want to increase prime too soon.
So for now, anyone who has a variable rate mortgage, STICK WITH IT. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span lang="EN" style="background-color: white; color: #333333; line-height: 18px;">Always be an informed client.</span><br style="background-color: white; line-height: 18px;" /><span lang="EN" style="background-color: white; color: #333333; line-height: 18px;"><br /></span><span style="background-color: white; line-height: 18px;"></span></span></div>
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<span class="apple-style-span"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: blue;">Toronto Mortgage Broker</span></b></a><span style="line-height: 20px;"> </span></span></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-44639614904462350882013-08-22T05:35:00.001-07:002013-08-22T05:35:14.816-07:00Buy A New House or Sell Your Old House First - Chicken Or The Egg?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjB48ar6PdS4c52Wnk-YtBNRTibAaMWfCg2uWj-HWfF9b1cwZAQpdjD6_Ln9dZlU2MymjYfvlVkgQZ40mlRz0j5fCmQ_naWBw97D3sZL5c1cZOCQj5LyN3X0ZxMdwqyK2lmrKnqhxKGNpCi/s1600/CHICKEN-OR-EGG.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="377" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjB48ar6PdS4c52Wnk-YtBNRTibAaMWfCg2uWj-HWfF9b1cwZAQpdjD6_Ln9dZlU2MymjYfvlVkgQZ40mlRz0j5fCmQ_naWBw97D3sZL5c1cZOCQj5LyN3X0ZxMdwqyK2lmrKnqhxKGNpCi/s400/CHICKEN-OR-EGG.jpg" width="400" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333;">The huge question looms: does one </span><b style="color: #333333;">buy the new house
first? Or sell the old one?</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b style="color: #333333;"><br /></b></span></div>
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">The second-or third-time buyer will need to consider the
matter of an existing house, ongoing mortgage payments, and the cash needed for
the down payment required to close on the new house. You have the money of
course, there is real equity in your current home, but until that home is sold
that cash is locked up securely in your current mortgage bank's vault. <o:p></o:p></span></span><br />
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<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">So, what comes first, the chicken or the
egg? <b>Sell first</b>, and, particularly in a sellers market, risk becoming
homeless, or perhaps worse, moving in with the in-laws while the furniture is
in storage <o:p></o:p></span></span></div>
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Or, in a buyers market, find the perfect house but you are
unable to make an offer because your house might take a while to find a buyer. <o:p></o:p></span></span><br />
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">What are my
options?</span></span><br />
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><b style="color: #333333;"><span lang="EN" style="color: windowtext;">Do your
homework</span></b><span lang="EN" style="color: windowtext;">. Get pre-approved for a mortgage</span></span><br />
<ul>
<li><span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">If you decide
to own two homes, look into a refinance of your existing house which will
give you the funds for the down payment of the new house.</span></span></li>
<li><span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Arrange
for a home equity line of credit. However, you must put that line of
credit in place before listing your house. The bank will send out an
appraiser and he will probably notice and report the sign on your front
lawn.</span></span></li>
<li><span style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Arrange a
bridge loan. However, a firm sale and purchase must exist.</span></span></li>
</ul>
<br />
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;">Always be an informed client.</span></span><br />
<span lang="EN" style="color: #333333;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-57684876510656679692013-08-15T09:35:00.002-07:002013-08-15T09:35:32.254-07:00What is mortgage fraud?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKJAvbSMM-kWjKmoW7O7V1VQVFWpiA3Y-SPdX6G-_tnMlU6uQmwNqCxQKbwNjUEbM9K13PeB__Z0lbXeJK_GYlBr5j8-05mUXtWkZ33ogVogYqt9_hsLWTVBMMmppEdnBkaKskPAkayT33/s1600/004.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKJAvbSMM-kWjKmoW7O7V1VQVFWpiA3Y-SPdX6G-_tnMlU6uQmwNqCxQKbwNjUEbM9K13PeB__Z0lbXeJK_GYlBr5j8-05mUXtWkZ33ogVogYqt9_hsLWTVBMMmppEdnBkaKskPAkayT33/s400/004.jpg" width="400" /></a></div>
<h3 style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 0in; margin-top: 9.0pt;">
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<br />
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="apple-style-span">Mortgage fraud is any scheme designed to obtain a
mortgage under false pretenses. It can be as simple as falsifying information
in a loan application, or more sophisticated involving one or several
individuals attempting to defraud a financial institution or innocent parties
of money through a mortgage loan.</span><br />
<br />
<br />
<span class="apple-style-span">Not only is the dollar value of these fraudulent
activities on the rise, but also the fraudsters themselves are becoming
increasingly sophisticated and well organized. Impersonation often occurs when
an individual applies directly to a lender, or through a mortgage broker or
specialist, for a loan secured by real property where title is held either
jointly by husband and wife, or by one of the spouses alone, and the loan application
is submitted by one spouse or co-borrower.</span><br />
<br />
<br />
<span class="apple-style-span">In some instances the borrower may arrange to have
an impostor appear as the co-borrower/ consenting spouse in order to have the
mortgage executed. Often these impostors are business associates, organized
criminals to whom the borrower owes money or an individual with whom the
borrower is involved in a clandestine relationship.</span><br />
<br />
<br />
<span class="apple-style-span">Frequently, these impostors are able to provide
some sort of identification that the borrower has managed to obtain from the
unsuspecting spouse/co-borrower. Often, in cases of impersonation, lenders and
brokers are instructed not to contact the borrower at home, so the risk to the
borrowers of the innocent spouse learning of the mortgage before it has been
funded are minimized.</span><br />
<br />
<br />
<span class="apple-style-span">The mortgage is signed by the borrower or the
impostor, the funds are advanced and it may be several months before the
innocent spouse or person becomes aware of the mortgage to which they did not
consent or agree.</span><br />
<br />
<br />
<span class="apple-style-span">A far more sophisticated type of mortgage fraud
involves identity theft. The fraudster targets an individual who owns real
property of significant value, either free and clear of mortgages or with
minimal secured debt. Unfortunately, the significant amount of information made
readily available by the Internet and the advent of electronic record keeping
by registry offices make the process of finding these individuals relatively
easy.</span><br />
<span class="apple-style-span">The fraudster uses the identity of the intended
victim, which purposefully matches that of a lender's ideal client, to apply
for a mortgage. Using the victim's credit worthiness and land security to make
the transaction enticing to the lender or broker, the fraudster receives loan
approval easily.</span><br />
<br />
<br />
<span class="apple-style-span">There are many ways of preventing mortgage fraud.
The first is to protect yourself from identity theft. You can also conduct a
property search at your provincial land registry office to ensure that the
title to your home is in your name.</span><br />
<br />
<br />
<span class="apple-style-span">We recommend clients to purchase Title Insurance
to protect your home. Title Insurance can provide valuable protection against
losses incurred by lenders as a result of fraud. Such insurance typically
covers the following items.</span></span></div>
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<ul>
<li><span style="line-height: 11.25pt;"><span style="font-family: Arial, Helvetica, sans-serif;">The
cost of defending one's right of ownership, which can cost tens of
thousands of dollars;</span></span></li>
<li><span style="line-height: 11.25pt;"><span style="font-family: Arial, Helvetica, sans-serif;">The
stress and uncertainty surrounding the a resolution of title-related
problems;</span></span></li>
<li><span style="line-height: 11.25pt;"><span style="font-family: Arial, Helvetica, sans-serif;">The
time spent waiting for resolution from the Land Titles Assurance Fund; and</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 11.25pt;">The
loss associated with a fraudulent mortgage that is entitled to remain
registered against the true home owner's interest.</span><span style="line-height: 11.25pt;"> </span></span></li>
</ul>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span class="apple-style-span">Despite this coverage,
however, fraud ultimately costs every party to the transaction money whether by
way of increased interest costs or administrative fees. As those who are
prepared to engage in fraudulent activities become more bold and sophisticated
and are linked more often to rings of organized criminals, it is incumbent on
the lending community to do everything in its power to address this challenge.</span><o:p></o:p></span></div>
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<span class="apple-style-span"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-54426378021633387072013-08-08T07:53:00.000-07:002013-08-08T07:53:49.340-07:00What is a Mortgage Broker and why deal with one?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKK5r7Ot02ODSw8dcaYZk-lFDQU5UZON2D8UVNYmU3ckhZ0MEKburIZLDmSAPb9LbzQkRg1qnzCqG7NBVlT3eFm_hW6n2cdygsyTt6niMtJfFpKmlJtDdTnL5zGfFR4O-euDIo4UU3EAVZ/s1600/article-01-photo.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKK5r7Ot02ODSw8dcaYZk-lFDQU5UZON2D8UVNYmU3ckhZ0MEKburIZLDmSAPb9LbzQkRg1qnzCqG7NBVlT3eFm_hW6n2cdygsyTt6niMtJfFpKmlJtDdTnL5zGfFR4O-euDIo4UU3EAVZ/s400/article-01-photo.jpg" width="400" /></a></div>
<h1 style="text-align: left;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">What is a Mortgage Broker?</span></h1>
<span style="font-family: Arial, Helvetica, sans-serif;">A
Mortgage Broker is an independent, trained professional licensed to represent
and provide you with the best advice for your mortgage needs. Mortgage Brokers
primary expertise is locating funding for mortgage financing. They know where
the best rates can be found. What's more, they have the knowledge required to
present a proposal for financing to lenders in the best way possible to
successfully obtain mortgage financing. They negotiate, place, assist in
placement, find or offer to arrange mortgage loans on residential and
commercial properties for you, the borrower. Lastly a mortgage broker is <span lang="EN">paid a fee by the bank to </span>serve as a liaison between borrowers and lenders. So the
best part that we are free. <span lang="EN"><o:p></o:p></span></span><br />
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<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">All mortgage brokers are licensed and regulated by
the Financial Services of Ontario. <o:p></o:p></span></span></div>
<b><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></b>
<b><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></b>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>So
Why Use/Deal with a Mortgage Broker?</b><b><span lang="EN"><o:p></o:p></span></b></span><br />
<div class="MsoNormal" style="background: white; margin-bottom: 12.0pt;">
<span style="font-family: Arial, Helvetica, sans-serif;">Mortgage Brokers
represent you, the customer, not the lender. Because they are not employees of
a lending institution, Brokers are not limited in the product they can offer
you. Brokers seek out the best lender package to suit your specific situation,
whether it’s with a Chartered Bank, Trust or Insurance Company, or Private
Funds.<br />
<br />
Unlike the banks, Brokers don’t cross-sell their clients. They will not encourage
you to bring over your savings, checking or credit cards to get their best
rates. Brokers can find you the very best rates from multiple lenders
nationwide…not just the rates of a single institution.<br />
<br />
Brokers are also less concerned than banks about buyers who are self employed,
recently divorced or have damaged credit histories including bankruptcies. The
can easily originate loans for the self-employed and those preferring no
documentation or low documentation loans. It’s also much easier to acquire
financing for investment properties and vacation homes through a broker. Very
importantly, Brokers are very wiling to work on YOUR TIME … not just during
banking hours.<br />
<br />
There is a wide assortment of options and features available to homebuyers
today and shopping around takes a lot of time and effort. The mortgage process
within today's very competitive marketplace intimidates many Canadian
homebuyers. It pays to work with a mortgage professional who will represent you
and ensure the mortgage you get is the one best suited to your needs.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 12.0pt;">
<span style="font-family: Arial, Helvetica, sans-serif;">Since real
estate tends to represent the single largest investment most of us ever make,
it is vital to secure the best financing available. Every borrower has
different needs, every property is unique and every lender has its own rules
and programs.<br />
<br />
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage
Brokers are trained professionals who can help you save on your mortgage
dollar.<br />
<br />
<b><br /></b></span></div>
<div class="MsoNormal" style="background: white; margin-bottom: 12.0pt;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>What are the Reasons to use a Mortgage Broker?</b></span></div>
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</div>
<ul>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Access to over 36 different lenders, banks, trust
companies, investors and financial institutions.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Fast credit and loan pre-approvals with no cost
or obligation.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Up-to-date on all the mortgage rates, terms and
re-payment options available on the market.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They only specialize in mortgages and are
knowledgeable on current trends.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They are experts at matching you with the
best-suited mortgage.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Get mortgage rates at wholesale, guaranteed up to
120 days.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They work for YOU, not the bank.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They increase competition in the market place,
thus keeping rates low.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">They save you time and money!</span><span style="font-family: Arial, Helvetica, sans-serif;">Brokers have vested interest in satisfying your
needs since they rely on referrals and repeat business.</span></li>
<li><span style="background-color: transparent; font-family: Arial, Helvetica, sans-serif;">Brokers are also more
likely to find mortgages for borrowers with credit problems or lack of
income.</span></li>
<li><span style="background-color: transparent; font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">Your time is precious and shopping for
a mortgage rate is a time consuming task. A mortgage broker will shop and know
the best mortgage rates from bank to bank. The best part is, it is a free
service.</span></li>
<li><span style="background-color: transparent; font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">Getting the right mortgage advice saves
you money.</span></li>
</ul>
<br />
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;">So to save you time and money speak to a mortgage broker. Become an informed client. </span><span style="font-family: Arial;"><o:p></o:p></span></span><br />
<span lang="EN"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span>
<br />
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 15px; line-height: 20px;">For more information contact your </span><a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: blue;">Toronto Mortgage Broker</span></b></a><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 15px; line-height: 20px;"> </span><br />
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-21722439061018386382013-08-01T06:17:00.000-07:002013-08-01T06:17:38.857-07:00Is mortgage insurance and life insurance the same?<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoTvRXkcd7-L5Sj3xvKl5uPxrjRy5mUJelx8XN7_NS043cKgzfm2OfMc7S7cL1JQhAIrRC0fuiM-v7WQFQ9qnkG4MXtoQlAA9l8Zk4UW6B71ffKXIAiczweoLfdaKz7Lg6obBMGDGsVt9b/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="290" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoTvRXkcd7-L5Sj3xvKl5uPxrjRy5mUJelx8XN7_NS043cKgzfm2OfMc7S7cL1JQhAIrRC0fuiM-v7WQFQ9qnkG4MXtoQlAA9l8Zk4UW6B71ffKXIAiczweoLfdaKz7Lg6obBMGDGsVt9b/s400/001.jpg" width="400" /></a></div>
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<br /></div>
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<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">The answer is NO. The only common thing is that someone
needs to die in order to collect.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Mortgage insurance is usually offered by the banks. As you
pay down your mortgage, your coverage amount decreases with it. When someone
passes away, the balance of your mortgage is paid off. Ultimately, the
beneficiary of a mortgage insurance policy is the bank.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Life insurance is usually offered by insurance brokers. With
a term life insurance policy, you have a constant level of coverage for the
whole term. So when someone dies, the family receives the payout and this gives
them the flexibility of using the money to pay off debts, mortgage or anything
else they would prefer. </span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">When purchasing or refinancing your home, take the time to
shop around for insurance and
compare. It is best to some insurance
then not to have any at all. Be an informed client.</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="background-color: white; font-size: 15px; line-height: 20px;">
<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: blue;">Toronto Mortgage Broker</span></b></a> </span></div>
<div class="MsoNormal" style="background-color: white; font-size: 15px; line-height: 20px;">
<span style="font-family: Arial, Helvetica, sans-serif;">at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-25417271384694443632013-07-25T08:08:00.001-07:002013-07-25T08:08:09.594-07:00Letting your savings work for you...<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjo9RVw3xRVmxQGCMiVz7mBFbkv6vPQubN4JZj_YqE4AwWkiXVffgh7LZaKoFp10i4q54ZrzBe-nJgZcCGnwjl5pO6Km7zReeU86ouu26JAHoRhAhV5INsrArWrAE_MsG2ZPpUh_tc070Jv/s1600/003.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="263" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjo9RVw3xRVmxQGCMiVz7mBFbkv6vPQubN4JZj_YqE4AwWkiXVffgh7LZaKoFp10i4q54ZrzBe-nJgZcCGnwjl5pO6Km7zReeU86ouu26JAHoRhAhV5INsrArWrAE_MsG2ZPpUh_tc070Jv/s400/003.jpg" width="400" /></a></div>
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<span style="font-family: Arial; font-size: 10pt;"><br /></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br /></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;">Let’s face it. You’ve worked hard and saved when
and where you could. To most Canadians, this is a part of everyday life. Well
now finally, let some of the money you have worked for do some work for you.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
In 1992, the Canadian Customs and Revenue Agency (CCRA) introduced the Home
Buyers’ Plan (HBP). The HBP plan allows for Canadian consumers to withdraw up
to $20,000 from their RRSP, to use in assistance of purchasing their first
home. In the case of a couple if they are both eligible, the number is doubled
up to a total of $40,000.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
Most people use this RRSP withdrawal to add to any down payment they have
already amassed to put down against the purchase price of their home, to either
lower the amount of mortgage they will require, or increase the amount of the
mortgage they can carry.<o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 10pt;"><br />
Sound too good to be true? Not exactly. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;">Any amount that you may have deducted must be
repaid back into your RRSP account in annual payments. You have 15 years to
repay this amount, or if you don’t it will be added to your taxable income for
the year and you will be taxed accordingly.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
By using these funds, if you have them invested in RRSPs, you get the money
working for you in a tax free and efficient way. What happens if you don’t have
any RRSPs? The following strategy may be right for you. If you have the room
under your RRSP cap, you can borrow funds from your bank and purchase RRSPs to
later contribute to your down payment. Not only are you helping yourself today,
but building a nest egg for your future.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
To find out if you have room under your RRSP cap to contribute look in your
Notice Of Assessment (NOA). The government will give you a figure, which is
usually a percentage of your reported income annually. If you haven’t used the
RRSP for that year, either partially or in full, the balance gets carried
forward and added to the next year’s total. If you don’t keep your NOA’s, you
can get your latest one by calling the CCRA at 1-800-959-8281.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
A couple of words of caution: plan early. If you think that this may make sense
for you and your financial position, take the steps you need to commence and
start today. In an interest rate environment such as the one we face today, where
rates are on the rise, make your decisions early. It could save you hundreds if
not thousands of dollars.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: Arial; font-size: 10pt;"><br />
Keep in mind, an RRSP is an investment into your future, so in case you can’t
afford to pay your mortgage or have no income for a while and are forced to
sell your home, you may lose your down payment, along with it your future
savings.<o:p></o:p></span></div>
<span style="font-family: Arial; font-size: 10pt;"><br /></span><br />
<div class="MsoNormal" style="background-color: white; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15px; line-height: 20px;">
<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="text-decoration: none;" target="_blank"><b><span style="color: blue;">Toronto Mortgage Broker</span></b></a> at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-2515256160249529012013-07-18T08:47:00.002-07:002013-07-18T08:47:13.279-07:00Skipped Payments - Not a Solution<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgD57r8NPlGIng_ogzyoCc9UqhoDuqExkM0-Dp3D02-4x2MdxTP2yoE1Z6N8FZ2uGMz0LBl3zVloN_m8bNLmJ1rBbBW97RzXQCYoni_Rsy6McLfvO8tnM6UJJS8U1oyP8bhFHM7EfNGNzeP/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgD57r8NPlGIng_ogzyoCc9UqhoDuqExkM0-Dp3D02-4x2MdxTP2yoE1Z6N8FZ2uGMz0LBl3zVloN_m8bNLmJ1rBbBW97RzXQCYoni_Rsy6McLfvO8tnM6UJJS8U1oyP8bhFHM7EfNGNzeP/s400/001.jpg" width="335" /></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Unless it’s absolutely necessary or you have no other
choice, don’t skip a mortgage payment, because it’s just too expensive. Most lending institutions allow customers to
skip a payment if a certain amount has been pre-paid, either through an <i>off-on </i>agreement or on a <i>match-one-miss-one</i> basis. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">But is it worth it?</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Don’t be fooled, missing a payment doesn’t mean paying the
same amount next time. Be aware that the
unpaid interest is capitalized (added to the outstanding principal). The longer it takes you, the more you
owe. Furthermore, mortgage interest is a
non-deductible expense paid with after tax dollars. A skipped payment may be paid at anytime and
at no cost, but it may be difficult to do if the original reason for skipping
was out of economic necessity. Try and
work out some other arrangement before considering skipping a payment. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Keep in mind that your interest cost will increase for every
day you don’t pay. Therefore, it’s
advisable to first consult your banker to work out the interest costs, and see
if alternatives exist, such as reestablishing normal monthly payments if you
are currently making accelerated weekly or biweekly payments.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">In a perfect world, the best mortgage is no mortgage. Nonetheless, your goal should be to pay your
mortgage as quickly and painlessly as possible.
Two such solutions are to switch from monthly to more frequent payments,
and to shorten your amortization.
Setting an objective to be mortgage free will allow you to see how long
the amortization should be, and if you can handle the payments. </span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">Taking a vacation from mortgage payments is definitely not
the way to go, even if it sounds good.
Keep in mind that always in life if something sounds too good to be
true, then it probably is.</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal" style="font-size: 15px; line-height: 20px;">
<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: black;">Toronto Mortgage Broker</span></b></a> at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-34412193791478711052013-07-11T08:23:00.002-07:002013-07-11T08:23:24.783-07:00Why get a pre-approval?<div class="separator" style="clear: both; text-align: center;">
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<span style="font-family: Arial, Helvetica, sans-serif;">For most Canadians, mortgages are a fact of everyday life –
if you are in the home buying stage you’ll most likely require a mortgage. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Making the decision to buy a home is a big life event,
probably the most significant in your life. Buying a home is as much an
emotional investment as a financial one – having a place of your own may evoke
feelings of self-esteem, security, and excitement, also bringing new
responsibilities.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">I understand that, as exciting as this journey may be, it
can also be a little frustrating and intimidating for you. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">A big part of buying a home is finding the right mortgage
product that you can truly live with. This is why it pays to talk to a mortgage
professional: they can provide innovative mortgage products that can be
tailored to your own financial situation, giving you the flexibility to enjoy
your new life and your new home.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">Pre-qualifying<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Before you begin your search for that dream home, GET
PRE-QUALIFIED for a mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Supported by your current financial situation and a
satisfactory credit review, a pre-qualified mortgage will tell you the amount
you can borrow, the interest rate and how much your monthly payments will be. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Having this information available to you along with your
down payment enables you to shop more effectively within your comfort zone and
knowing that financing may be available (usually subject to a property
appraisal).</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Knowing your financial limits, you are ready to purchase
your home right now and it can also assist you in negotiating a better price
for your home.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">When you have been pre-qualified for your mortgage, the
interest rate and payments are guaranteed for up to 120 days from the date you
receive the pre-qualification.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Should mortgage rates go up during that time, the lower
guaranteed rate will apply and if rates go down during that time, than the
lowest rate up to the date of funds are received apply. This feature of
pre-qualifying you gives the protection from interest rate fluctuations. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: black;">Toronto Mortgage Broker</span></b></a> at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-23832435017347300972013-07-04T07:19:00.002-07:002013-07-04T07:22:58.302-07:00What every home owner should know about Refinancing…<div class="separator" style="clear: both; text-align: center;">
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<b><span style="font-family: Arial, Helvetica, sans-serif;">What every home owner should know about Refinancing…</span></b></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">Surrounded by a sea of Refinancing confusion!<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There are probably many “lifesaving” tips people have thrown
you to help determine the right time to refinance your home. You may have heard
that the interest rate on the new loan must be at least two percent less than
the old loan, or it is not a good decision. Another frequently quoted, but just
as frequently incorrect statement, is that if your loan is less than two years
old, your shouldn’t refinance it now.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Neither one of these statements is entirely correct, and it
can be extremely difficult to receive unbiased and accurate information about
the refinancing decision and process. It is our desire to offer you a clear,
concise guide to help you get rescued from that sea of refinancing confusion. </span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">When should I
refinance my home mortgage?<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Put very simply, the decision to refinance a home should be
based on whether you will own the property long enough to recapture the expense
connected with the new loan and the overall effect lower payments will have on
your household budget. The way to figure this can be as easy as subtracting the
proposed new overall payments from the existing overall payments to find out
what the monthly saving will be. Then, divide the monthly saving into the cost
of refinancing to determine how many months it will take to recapture that
cost.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There are some situations in which a refinancing decision
should invariably be made. If you are able to negotiate a “no-cost” mortgage
(you pay no penalty or closing costs), and if the new mortgage rate is lower
than your existing rate, than refinancing your loan would certainly be of
financial benefit to you.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">If the remaining mortgage balance, including penalty and
closing costs, can be refinanced at a reduced monthly payment, and still be
paid off within your existing mortgage payment term, then refinancing would be
highly advisable. If you need extra cash for a home equity or auto loan, and
the mortgage rate is lower than alternative loan rates, then refinancing is
probably the best choice.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Lastly, you can generally count on it being time to
refinance when your new mortgage rate is at least one to two points lower than
your existing rate, and you plan on staying in your home for at least three to
five years.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">What Refinancing
Myths Do I Need to Watch Out For?<o:p></o:p></span></b></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">1. Blending your existing rate with your
current lender!<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">This is the most common technique
all lenders will try on you. They hope you do not know how to compare what this
means and that you will not shop around. <b>HUGE
MISTAKE! </b>Sometimes blending is in your favor, and if it is, we will tell
you that. However, more often than not, it is not in your favor, and a new
mortgage rate will save you thousands of dollars in interest costs!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>2. </b>One widespread myth that needs to be
dispelled is the idea that lowered monthly payments are the financial
yardsticks that wise financing is measured by. Monthly payments are only
comparable if they are based on the same loan duration! In fact, lowered monthly
payments are can be achieved even at a higher mortgage rate, if the new
mortgage has a longer term than the remaining years of the old mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>3. </b>Another common
misconception about refinancing is that if the new rate is not at least two
points lower than your existing mortgage rate, then refinancing is not worth
the time and trouble. In many cases, especially if you are planning to stay in
your home at least three to five years, even a one-point reduction can make an
enormous difference in your overall home mortgage cost. In addition, with the
constant technological advances in the mortgage industry, obtaining a mortgage
loan r refinance is now faster and easier than ever before.</span></div>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">What Exactly Do I
Need To Consider About Refinancing My Home?<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">To accurately sum up your refinancing decision, you need to
thoroughly consider the following six factors:</span></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">The
amount of reduction in the mortgage interest rate.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The
amount of reduction in the monthly payment.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Any
prepayment penalties on the old mortgage.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The
amount of closing costs, including any appraisal of CMHC costs, legal
fees, etc.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The
number of years you plan on retaining your home.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The
effect on your cash flow overall lower payments could make.</span></li>
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<b><span style="font-family: Arial, Helvetica, sans-serif;">What Will Actually Be
Involved When I Refinance My Home Mortgage?<o:p></o:p></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">When you refinance, the proceeds from your new mortgage loan
are used to pay off your old mortgage, bank loans, credit cards or new money
for renovations or any other worthwhile purpose. Even if you use the same
lender this is true. You are not simply re-negotiating the terms of the old
mortgage, such as reducing the interest rate.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">You need to expect that your home will have to be appraised
again, and possibly inspected. Your credit history and overall financial
picture will be reviewed again to make sure you qualify.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Of course money doesn’t grow on trees, but if it is truly
the right time for you to refinance, then with they money you will be saving
after twelve to eighteen months, you should begin to feel like your money trees
are in full bloom!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: black;">Toronto Mortgage Broker</span></b></a> at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-26724915504651780272013-06-27T12:16:00.003-07:002013-06-27T12:16:36.441-07:00Short vs. Long term mortgage - What is best for you? <div class="MsoNormal" style="text-align: left;">
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<b>Almost every time that I arrange a mortgage for one of my
clients they ask me whether they should go with a shorter or longer term.</b></div>
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<b>My answer:</b> for
some people having a long-term mortgage makes a lot of sense, for others a
short-term mortgage will best meet their needs.</div>
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Of course there is no one right answer here. </div>
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When you are selecting the term for your mortgage it is
important to recognize that generally the longer the term of your mortgage, the
higher the interest rate.</div>
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A good way to think of the difference between a short vs. a
long-term rate is an insurance premium. The financial institution generally
wants to be compensated by you in order to be compensated by you in order to
guarantee the rate of your mortgage over a longer period of time. What you have
decided is whether or not the insurance premium (difference between short vs.
long term rates) is worth paying in your circumstances.</div>
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Many people have heard the theory that you are better off to
keep on renewing with short terms and paying down your mortgage. This
philosophy has held true in the past provided that the extra amount that you
save from selecting a short term is applied to reducing your principle mortgage
balance outstanding.</div>
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There is potential to gain by using this method, but you are
also exposed to risk that rates could be substantially higher by the time you
have to renew.</div>
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Many of the consumers in today’s market are buying homes
with 5% down and extending their debt servicing to extreme levels. While I
believe that the dream of home ownership is a very fulfilling and a worthwhile
pursuit, I caution that you should do your financial planning carefully.</div>
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It is important to realize that interest rates today are at
near historical lows. Many people who can afford homes today would never have
been able to make that purchase at the interest rates of five years ago.</div>
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It is critical that you understand the following: YOU REPAY
VERY LITTLE OF YOUR PRINCIPAL BALANCE IN THE FIRST FEW YEARS OF YOUR MORTGAGE.</div>
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This means that the people who are in jobs that will likely
see very little pay increase over the next few years should definitely consider
the consequences. Historically, over the last 30 years the average five-year
mortgage rate has been approximately 11%.</div>
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Ask yourself this question: if mortgage rates are at 11%
when you have to renew- will you be bale to afford to keep your home?</div>
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If your answer is a comfortable yes, then I suggest that you
pick the term that you feel happy with.</div>
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If your answer is even possibly no, then find as long term
as possible. By the time a 10 year term comes up for renewal you will at least
have paid a large portion of your principal off, and may be able to extend your
financing over a longer term in order to make your payments more affordable.</div>
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If the property you are financing is being used, or is going
to be used as an investment property then again the longer-term mortgage
product also makes sense.</div>
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Remember there is no mortgage product that can be all things
to all people. Make sure you get informed and find the product that best meets
your needs. Until next time, best of luck finding your mortgage and home.</div>
Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0tag:blogger.com,1999:blog-2387907188153295454.post-69625335944558499262013-06-20T07:53:00.001-07:002013-06-20T07:53:16.796-07:00Be Financially Smart and NOT Ignorant!!!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMtf5sRXfX_c6Z-AxXlMpeat8s6-ytKOxBOaH9iGFLe_CP3emX35CS2yXhFQDDNgV8-QGFH5pAwzZqKUebInHY52r0ppu3HF9m00zqs9SkhyphenhyphenSaX12tLNxvnHex8osH0teLGvWFIzNq1_qk/s1600/001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="336" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMtf5sRXfX_c6Z-AxXlMpeat8s6-ytKOxBOaH9iGFLe_CP3emX35CS2yXhFQDDNgV8-QGFH5pAwzZqKUebInHY52r0ppu3HF9m00zqs9SkhyphenhyphenSaX12tLNxvnHex8osH0teLGvWFIzNq1_qk/s400/001.jpg" width="400" /></a></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">I want to thank Maria who called me 2 weeks ago for
encouraging me not to stop writing these articles. Sometimes, I wonder if
anyone is actually reading them. But, I am glad that there are those who still
read and not just listen to the news on TV.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">I want to review some things that I believe are extremely
important for people to know prior to making decisions that are not wise. The
million dollar question is to fix or not to fix your mortgage? Those who decide
to fix are not making a smart decision.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Why? </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Most first time homebuyers make the mistake by going
with a 5 year fixed mortgage. They do this because they want peace of mind and
do not want to think about their mortgage any further. Like most people,
especially those who work in construction, do not have the time to keep an eye
on the rates. They leave the house at 6 am to start their work day at 7 am.
They usually get home around 6 pm. They will have dinner with the family and
try to spend some quality time with them. Then around 9 or 10 o’clock in the
evening they are watching the news and then all of a sudden the TV is watching
them fall asleep. These individuals think that the interest rates will sky
rocket from 2.89 (today’s 5 year fixed) to 8 or 9% overnight which is
IMPOSSIBLE.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">I have been advocating variable mortgages for the last 15
years. Those who took my advice are now laughing. But those who didn’t are now
crying. Remember when rates go up, no one complains. But when rates go down and
you want to get out of the fixed mortgage to take advantage of the new lower
rates, there will be penalties to pay. In contrast, a variable to a fixed rate
mortgage there are no penalties or costs to lock into a fixed rate mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">In Sept 2010, I met with a client which I will name Sr.
Jorge. He had just bought a house and he was quoted a rate for 5 yr fixed at 2.99.
I told him that was an excellent rate. However a variable mortgage would be
much better. How so? Well, first of all not all banks have a variable mortgage
at prime minus 0.80 at 2.20%. In order
to be competitive in the market some banks are offering a low rate for 5 year.
They are putting a carrot in the front of the horse to see if the horse will
bite on it.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Sr. Jorge was a bit hesitant to go with a variable mortgage
but he took my advice and now he is extremely happy with the decision. His
original mortgage was $132,875.45. He now owes $91,458.76. So in two (2) years
he has managed to reduce his mortgage by $41,417. So you are asking how on
earth did he manage to do this? </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Very easy!!! He managed to make his monthly payments of
$1,329.57 (based on the 5 year fixed) the same on a monthly basis but he went
variable. The monthly payments did not change. However, the principle portion
increases and the interest is reduced each month.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"> Interest Principal </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"> May 01 325.66 1,003.91</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"> June 01 308.09 1,021.48</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"> July 01 295.62 1,033.95</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">So let us do some math at this stage. Based on a mortgage
for $250,000 at today’s 5 year fixed rate at 2.89% the monthly payments would
be $1,169.03. The principal portion would be $570.54 and the interest 598.49.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">But, based on a variable mortgage at prime (3%) minus 0.40 =
2.60% the monthly payments would now be $1,132.39. The principal would be $593.63
and the interest would be $538.76. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Let is now assume that if the prime rate goes up to 3.25
minus 0.40, the variable rate would now be at 2.85%. Based at 2.85% the monthly
payments would now be $1,163.94 The principal would be $573.68 and the interest
would be $590.26 </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">So if you didn’t know any better you would go fixed at 2.89
for a monthly payment of $1,169.03.
However, the smart people would still continue to make that payment of 1,169.03
but go variable.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Why? More principal will be applied towards your mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">By forcing yourself to make the payments of $1,169.03 and
not $1,132.39 (2.60% variable) you are still throwing $36.64 more of principal
plus the principal portion on the variable mortgage which is $593.63 = 630.27
on a monthly basis. Now $630.27 x 6 months = $3,781.62 towards principal. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Now let us assume that prime rate goes up to 3.25 minus 0.40
= 2.85%. The payments would still continue to be the same at $1,169.03 (still
based on the 5 year fixed). However, now the principal portion would be less
cause 1,169.03 minus $ 1,163.94 = $5.09 plus the principal portion on 2.85% ($573.68)
= $578.77 x 6 months = $3,472.62 towards the mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">In the end result you have thrown $3,781.62 plus $3,472.62 =
$7,254.24 AT LEAST towards the mortgage within one year in the variable
mortgage.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Why do I say AT LEAST $7,254.24? </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Remember Sr. Jorge? His payments never changes per month.
But his principal portion would increase each month. That is why he was able to
throw $41,417 toward his mortgage within 2 years. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Now let’s compare the fixed 5 year. The principal portion
was $570.54 x 12 months = $6,846.48 the difference between the two is $407.76 ($7,254.24
minus $6,846.48).</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">If 10,000 customers decided to lock into a 5 year fixed
mortgage, $407.76 (savings on a variable mortgage compared to a fixed mortgage)
the bank would make $4,077,600 millions of dollars.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">So, next time when you hear that the banks are making
millions of dollars and you get upset, remember you just helped them to make
more millions of profit. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Remember folks, math never lies. We tend to make decisions
based on emotion and not on logic. If you had a choice to put more money into
your pocket versus giving it to the bank, what would you chose? So next time
when you hear that the banks are making millions of dollars in profit, remember
on thing- you just helped the bank make more money off you by deciding to go
with a fixed mortgage. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">So be financial smart and not financial ignorant!!!!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">For more information contact your <a href="http://www.eddiemac.ca/" style="color: grey; text-decoration: none;" target="_blank"><b><span style="color: black;">Toronto Mortgage Broker</span></b></a> at 416-920-9931</span></div>
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Eddiehttp://www.blogger.com/profile/18167336115949428717noreply@blogger.com0