Our Local Ski Hill Is A Great Spot Midweek

Admittedly we didn't get to the local ski hill very often this ski season, with everything else that is on our schedules, including curling 3 to 4 times a week.

It is however an easy decision to head out mid week as you pretty much ski right on to the chair lift after each run. Best part for us is that they only only 25 minutes away and they offer a variety of passes during the day from early morning (4 hours) to our favourite which is 2 hours at 2pm.

It won't be long before we head to the barn to take the fishing boat and pontoon boat out of storage and ready them for the water. We expect to get more use out of the boats this summer as we won't have the same hectic summer of planning for our wedding.

5 Essentials Steps To Wealth Building

Want to Build Real Wealth? Stop Guessing and Follow This Blueprint

Most investors try to build wealth without a real plan. They chase hot stocks, jump in and out of markets, and hope for the best. That’s how you stay broke.

The wealthiest investors don’t guess—they follow a system.

This guide breaks down the five essential financial planning steps every Canadian investor needs to grow, protect, and pass on their wealth. Skip these, and you’re leaving money on the table (or worse, setting yourself up for failure).

Let's get into it Click Here To Read The Full Article...

First Time Home Buyer Tax Credit Don't Miss This

If you were a First Time Home Buyer in 2024, you can claim up to $10,000 for the purchase of a qualifying home in 2024 if you meet both of the following conditions:

You (or your spouse or common-law partner) acquired a qualifying home You did not live in another home inside or outside Canada that you (or your spouse or common-law partner) owned in the year of acquisition or in any of the four preceding years (first-time home buyer) unless you are a person with a disability.

When only one spouse (or common-law partner) meets all of the conditions to apply for the first-time home buyer's tax credit, only the spouse (or common-law partner) who qualifies for the credit can claim the home buyers' amount, regardless of the fact that the other spouse (or common-law partner) cannot.

A qualifying home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system and must be located in Canada. It includes existing homes and homes under construction.

The following are considered qualifying homes:

single-family houses semi-detached houses townhouses mobile homes condominium units apartments in duplexes, triplexes, fourplexes, or apartment building.

You can get more information from the government of Canada Web Site by clicking here

FIRST TIME HOME BUYER TAX CREDIT

From Plus 30 Celsius To Minus 15 Celsius in a Week

While my wife Caroline and I really enjoyed our two week vacation in sunny and hot Mexico, without a drop of precipitation, we also enjoyed coming home to Canada and our winter sports.

We both curl several times per week and enjoy downhill skiing, cross country skiing and snowshoeing. 

The photo above was taken at our local ski hill this week. We are fortunate to have a place to downhill ski less than a half hour from our new home!

The Challenges of Gifting Your Family Funds For A Downpayment

For over 25 years now I have been working with the same law firm (with 11 offices) to help my clients complete the legal work of buying a home and registering a mortgage. The article below has been provided by Tony Spagnuolo of Spagnuolo and Company Real Estate Lawyers. I have seen hundreds of families provide a gift to their children to help with the downpayment to buy a home. This article should be considered a request to pause for a moment (and where necessary get legal advice) when providing funds for a gifted downpayment.

It’s no surprise to readers of this newsletter that real estate (and life!) is expensive.  It’s hard if not impossible for young adults to enter the real estate market without help. The Bank of Mom and Dad is one way that young adults have been able to gain a toehold in the market.

One way a parent can help their children is to give an outright gift. Parents give all or part of the down payment to their kids. Legal tidbit of the day: it is a condition of (almost) every mortgage that a borrower does not have additional financing on their home – in other words, having a second mortgage is a technical breach of the first mortgage.  To satisfy this bank requirement, parents sometimes write gift letters to their kids – saying that the gift is a true gift, the parents aren’t loaning it to them, etc.

However, this strategy may come with risks!  A gift letter may be used against a parent by an aggrieved creditor down the road (think: ex-spouse). We recently read about a BC dad who can’t get back $500k he gave to his now-separated son and daughter in law for their home purchase (https://biv.com/news/economy-law-politics/bc-dad-cant-get-back-500k-he-gave-now-separated-son-daughter-in-law-for-home-10104723).

There’s a lot of other factors at play in this case, but importantly in our mind, the gift letter that the parent gave to their child ended up being used as evidence that the money was meant as a gift and not a loan.  In other words, the son and ex-spouse split the gift 50/50 versus the son receiving 100% of the gift.

There are a number of ways to mitigate this risk without upsetting the bank giving the first mortgage.  Each strategy has varying levels of certainty and risk, and some are more expensive than others.  But if you, or your clients, are planning on helping their child enter the market, it is certainly worth a conversation with a legal professional.

Incorporating Your Rental Property Business: Should You Do It?

So, you’ve finally taken the plunge into real estate, or maybe you’ve been collecting those sweet rental checks for a while. Either way, one question keeps popping up:

Should I incorporate my rental property business, or keep it under my personal name?

You’ve probably heard stories about big tax savings and bulletproof liability protection - but is that really the case for you?

Let’s peel back the layers and see what incorporation actually means, and whether it’s worth the paperwork, fees, and added complexity.

By the end, you’ll have a clearer picture of what could work best for your situation (and hopefully a lot less confusion). 

READ MORE BY CLICKING HERE

Our Getaway From Rain and Snow and Freezing Temperatures

This is the first time I have written my monthly newsletter while I have been out of the country on vacation.

This month's report comes to you from poolside in Puerto Vallarta. We are spending the first week of our two week holiday with Caroline's daughter, son in law and three young grandchildren, and it has been a GRAND time!

How To Pick The Right Mortgage Without A Crystal Ball

Trying to time mortgage rates is like trying to guess the next market crash—it’s a gamble.

With economic uncertainty running high and no clear direction from the Bank of Canada, homeowners renewing or taking on a new mortgage are left asking: Do I lock in, or do I roll the dice on a variable?

The good news? You don’t need to predict the future. You just need a game plan.

READ MORE

An Alternative To Traditonal Fireplaces

Ventless fireplaces — those with no chimney venting to the outdoors have generated concerns about releasing unsafe emissions inside the home, and some cities have banned them. Some newer versions of ventless, however, like the alcohol-based fireplaces are more environmentally friendly. These ventless appliances burn ethanol (made from renewable resources like corn) and isopropyl alcohol gel. You can put them in any location. There’s no gas line or electricity to contend with. They emit a minimum of steam vapor and carbon dioxide with no toxic smoke. They do create a flame and a little heat, depending on the model.

Pros:

They can be placed in any location. They don't need a gas line or electricity. They're environmentally friendly options (ethanol and isopropyl alcohol gel). They emit minimal steam vapor and carbon dioxide.There's no toxic smoke.They create a flame and may provide some heat, depending on the model.

Cons:

There are safety concerns based on the release of unsafe emissions indoors. Some cities have banned them.

Water Vapor Fireplace Systems

A water vapor system is sort of an illusion. The design is really for ambiance, as there’s no actual flame. It’s a fireplace where water that sits in a reservoir is used as the “fuel.” An ultrasonic atomizer uses high-frequency sound waves to vibrate the device and turn the water into mist. It’s then illuminated with LEDs, which make the vapor appear to flicker. These are realistic and safe, since there’s no fire, smoke, or carbon monoxide produced just water vapor. There’s no chimney, no venting, and little maintenance. Some of these devices offer a heating feature. You can find them at dealers that have electric fireplace options.

Pros:

They create a realistic flame-like appearance. They're safe to use (no actual fire, smoke, or carbon monoxide). They produce only water vapor. They don't need a chimney or venting. They require little maintenance. Some models offer a heating feature. They add ambiance to any room.

Cons:

They're primarily designed for ambiance, not heating. They have a higher initial cost. They're available only through specific dealers with electric fireplace options.

It Was A Merry Christmas Season!!

My new wife, Caroline, loves to entertain and she outdid herself again this holiday season! The annual open house (the Sunday before Christmas) brought family and friends together numbering over 70. Good thing we had finished most of the basement in time so that those with young children had room to run about out and play.

The 8/16 Rule: A Simple Guide To Smarter Rental Property Investments

In real estate investing, complexity is often the enemy of action.

That's where the 8/16 Rule comes in—an easy-to-use framework that separates profitable rental properties from cash flow disasters.

Whether you're an investor crunching numbers or a renter debating your next move, this rule can save time and money.

What is the 8/16 Rule?

The 8/16 Rule compares a property’s purchase price to its gross annual rent.

It gives investors a quick way to estimate cash flow potential without diving into spreadsheet hell.

Learn more about this concept with the following link:

https://breakingbank.media/ca/the-8-16-rule/?ref=jcharb

How Clutter Creates Stress and Anxiety

Stacks of unopened mail, cluttered countertops, overstuffed closets, and those I’ll-get-to-it-later piles aren’t just household annoyances. A growing body of research links clutter at home to increased stress and anxiety — sometimes even linking clutter and depression.

Our culture teaches us that the more you own, the happier you’ll be, but it’s actually the opposite: The more you have, the less happy you tend to be.

Indeed, cluttered homes could be hampering your mental – and physical – health in a number of ways, but you may not realize it. See if these findings from four studies sound like what you’ve experienced:

Women who perceived their homes as cluttered were more likely to say they constantly felt tired and even displayed symptoms of depression. Cluttered kitchens are more likely to lead to eating too much unhealthy food. Household clutter can link to feelings of guilt, anxiousness, and an inability to focus. Cluttered work spaces at home could be making workers less satisfied with their job and leading to increased tension and even burnout.

The tipping point for problematic clutter emerges when it affects the livability of a space, causes emotional distress, and impacts your relationships and financial well-being – for instance, by contributing to overspending.  In severe cases, clutter can cross over into hoarding behavior, a serious psychiatric disorder. Hoarding is generally described as the accumulation of “vertical” piles of the same thing, like stacks of toilet paper packages, whereas clutter is “horizontal,” with an overabundance of many different items.

The Institute for Challenging Disorganization offers criteria to identify whether you may have signs of what they call “chronic disorganization,” including:

Filling storage areas to capacity. Having difficulty parting with items. Needing to rent out additional storage space. Beginning multiple projects that go unfinished. Struggling constantly to find things.

One first step to dealing with your clutter is to ask these "Let Go" questions. 1) Has this item overstayed its welcome? 2) Does it fit? 3) Do I still like it? 4) Is it damaged beyond repair or even repair-worthy? 5) Do I use or wear it anymore? 6) Is it expired? 7) Is it taking up space no longer worth the real estate? 8) Has it served its purpose? 9) Is it necessary?

It's a Wonderful Life

I am truly blessed and in the big scheme of things I have nothing worth complaining about. After playing Santa for close to 15 years, I now have a Mrs. Claus to accompany me to public events. I love volunteering my time and showing up at retirement and nursing homes to entertain the seniors.

One thing that I have experienced year in, year out, that on one hand makes me sad but on the other hand gives me great joy, has to do with something as simple as a hug. I have made it my tradition to give the seniors I visit a big hug from Santa and whisper in their ear that, "Santa Loves Them, Very, Very Much!".  You would be amazed at the number of seniors I encounter that tell me, "You know Santa, that is the only hug I got this year." It makes me sad but brings me joy that I am the one hug they did get. So don't forget to hug a senior, you just don't know.

Why Fixed Mortgage Rates Likely Won't Follow the Bank of Canada Cuts

In recent weeks, the Bank of Canada’s rate cuts have stirred hope that mortgage rates, especially fixed rates, might begin to fall. However, homeowners and investors should know that fixed rates don’t necessarily follow these central bank cuts.

While it's true that variable rates are on the decline, fixed rates are influenced by different factors and may stay steady or remain near current levels, despite ongoing cuts to the Bank of Canada’s benchmark rate.

Understanding the forces that keep fixed rates steady can help Canadians make more informed mortgage decisions in this evolving market.

To read the my full article, click on the link below

FIXED MORTGAGE RATE CHANGES

Mortgage Renewal Challenge

Over the next two years, more than 4 million mortgages—around 60% of all outstanding mortgages—are set to renew.  A large share of these mortgages haven't come up for renewal since interest rates began rising in 2022. Even with recent rate declines, most borrowers will likely face noticeably higher payments. 

Higher payments could lead households to cut back on spending more than anticipated, potentially slowing the economy. They could also create financial stress for borrowers and result in losses for lenders and mortgage insurers.

If your mortgage is coming up for renewal, don’t wait until the last minute to explore your options. Starting early gives you a better chance of securing a favourable outcome. Reach out to me, and I’ll help you review and compare the available options. I have developed a new mortgage strategy called the "Cascade Mortgage," and this uses an existing mortgage product in a way most lenders did not see their mortgage being used. It creates the opportunity to lock in to a fixed rate but readjust 15 to 20 percent of the mortgage to a lower rate during the term without cost. This is what I would call, "An Advanced Mortgage Strategy" and I have a full tutorial to explain how it works.

Halloween Trick or Treat

Living out in the country on a private road tends to reduce the number of Halloween Trick or Treaters we get. Fortunately, I was able to make a visit to my number one Ukrainian, five-year old (now almost six), Nikol, before she headed out on Saturday to fill her bag with treats.

I love this new tradition, the "Witch Walk", that two local towns (Arnprior and Renfrew) have embraced. The idea of creating a safe environment for kids to go store to store to pick up treats. Such a small cost for the merchants but with such a big impact on the kids.

It is also a treat for me and others, who get to see so many happy young ones in such a wide variety of costumes, by just standing on the main street and watching them parade by.

Save Big On Rental Income Taxes with a Management Corporation Strategy

Real estate investors know that paying taxes on rental income can be a heavy hit to profits. With rental income classified as passive in Canada, it faces one of the highest corporate tax rates—up to 50%.

The good news? There’s a strategy some investors use to lower that tax bill substantially. It involves creating a second corporation that provides management services to your rental properties, allowing for a lower active business income tax rate.

Here’s a step-by-step guide to how this structure works and how it could cut taxes on your rental income.

CLICK HERE TO FIND OUT MORE

Free Reverse Mortgage Course

With an increasing population base of home owners over 65 that are retiring with fixed incomes and a mortgage that has not been paid off, Reverse Mortgages are increasing in popularity and use.

I have created a free "Reverse Mortgage Course" that shows how a reverse mortgage can lead to financial empowerment, serve as a valuable financial tool, and how it can be used whether you own your home with or without a mortgage.

This is a self-paced mini series that will answer all the common questions and help you evaluate whether a reverse mortgage is right for you.

Here is the link:

REVERSE MORTGAGE COURSE

We Made it to Greece for our Honeymoon!

Turns out a trip to Greece had been on both our 'bucket lists' for a couple of decades. It was the first destination we talked about and it was an easy decision...so off to Greece we went for our 16-day honeymoon.

It was a long way to go, with the longest leg of our trip being a nine-hour direct flight from Montreal to Athens, but well worth it. We spent a couple of days at beaches in Naxos and Crete and on a sunset catamaran tour of Santorini, with pretty much the rest of the time being spent sightseeing ruins dedicated to Greek Gods like Zeus, Apollo, Athena etc.

For the first time in a long time, we traveled with just 'Carry-On Luggage' and it worked out well, especially when it came time to island hop using walk-on ferries. The photo above was taken in Santorini with the iconic blue roof tops in the background.

We had such a great time, it would be easy to go back as we only visited three of the over 200 inhabited islands. Who knows, maybe some day we will go back but there are so many other places we want to see. We just might need a longer lifetime extension!

International Cell Phone Roaming Charges

For all of my international vacations prior to my recent honeymoon, I have spent over a $1,000 in roaming charges.  My last vacation to Mexico, included roaming charges of $17/day to receive and make phone calls and texts. This hurts when you add it to the already high cell phone bills for regular service compared to so many other countries.

Let me introduce you to Wi-Fi calling. When I travelled to Greece I took two phones with me. My current I-Phone 13 and an older Android. Upon arriving in Greece I bought a SIM card with unlimited data and put that SIM card in the Android phone.

I then turned that Android phone into a private hotspot and connected my I-phone to it through Wi-Fi. My I-phone was set to "Airplane Mode" so I would not incur any roaming charges. The I-phone was also set to "Wi-Fi Calling". This meant I would receive any regular calls or texts made to me, and I could  also send texts and make calls back to Canada without any roaming charges.

This saved me the $17/day in Rogers Roaming Charges. Now, I did have to carry these two phones with me when I was out and about, but using my cell phone camera to take pictures I was going to have the phone with me anyway. There is probably a technical way to have used an ESIM but that was a little above my techy comfort level.

So happy not to have to contribute more to Rogers' profits than I have to with this new feature called "Wi-Fi Calling" and the calls were as clear at I would have experienced on roaming for a fraction of the price!

A Little Thanksgiving History

The first Thanksgiving by Europeans in North America was held by Sir Martin Frobisher and his crew in the Eastern Arctic in 1578. They ate a meal of salt beef, biscuits and mushy peas to celebrate and give thanks for their safe arrival in what is now Nunavut.

Since the beginning of the Thanksgiving holiday, its date has moved several times—from mid-week in April to a Thursday in November—until 1957, when the Canadian government officially declared that Thanksgiving would occur on the second Monday in October.

We Tied The Knot

At the age of 66 I finally made it to the point in my life where I was able to make a lifetime commitment. Caroline and I were married on September 6, 2024 in a beautiful wedding venue with 125 friends and family.

As if it wasn't enough to plan a big wedding less than a year after finishing the building of our home. We decided to have a barbeque for our guests the day after so burgers and hot dogs for another 60 people. Some might say we were crazy but in the 60 days leading up to the wedding we completed the interlock patio at the front of the house, an interlock patio under the deck facing the river. A huge set of stairs down to the river, and another 20' X 14' patio in the back yard along with another bedroom, bathroom and my office in the basement.

Subject to an Air Canada strike next week we will be off to Greece for the honeymoon.

How To Save of Dollars Off Your Mortgage Without Increasing Your Payment

I'm excited to announce our team has partnered with Breaking Bank, Canada's newest finance & real estate blog! This partnership will allow us to bring you the latest real estate tactics and financial strategies, designed to help homeowners & investors get ahead financially.

Each month, we will share a new strategy to help you reduce your interest costs, save on tax, qualify to buy more home, and expand your portfolio.

The Cascade Mortgage Strategy
This month, we're introducing the Cascade Mortgage Strategy, which could potentially save the average homeowner $10k-$20k over the next few years. What's even cooler, is this strategy doesn't require you to increase your mortgage payment to get the benefit.

You can enjoy the security and peace of mind of a fixed rate mortgage, while taking advantage of rates as they decline.

Click here to access the guide: https://guides.breakingbank.media/cascadestrategy/?ref=jcharb

You'll learn exactly how the Cascade Strategy works, including a comprehensive case study and step-by-step instructions on how you can implement this for yourself.
Let me know what you think once you've checked it out ;)

Get Set For Winter With This HVAC Checklist

Weather extremes are putting more pressure on homeowners’ heating, ventilation, and air conditioning systems in keeping homes cool during the summer and warm in the winter. That's one reason it's more important than ever to keep up your HVAC maintenance. But that's not always top of mind for homeowners.

The HVAC often runs in the background, which means you likely don’t give it much thought — until it breaks down, that is. And that can happen at the worst times. Forty-two percent of homeowners say they’ve experienced HVAC system issues during heat waves, according to a new survey. A failing HVAC system during a scorching summer can lead to discomfort, costly utility repairs, and even health risks for more vulnerable populations.

But many costly HVAC disasters can likely be prevented. For example, fewer than half of homeowners, 47%, say they’ve had HVAC servicing within the last year. Yet, experts advise annual HVAC servicing to avoid expensive repairs. Even fewer homeowners, 32%, say they’ve done basic cleaning and HVAC maintenance to help prevent heat-related home damage, according to a recent survey.

HVAC Maintenance Checklist

To be fair, many homeowners may not be sure what to do. Refer to this checklist regularly to make sure you’re doing 10 activities that will keep your HVAC humming.

Change filters regularly. Swap them out every 30 to 90 days

Clean air vents and registers. Use a brush to clear dust and dirt at the top of the registers and the bottom of vents or use a vacuum cleaner.

Keep outdoor units clear of debris. Make sure the area around your HVAC unit is free of overgrown plantings, leaves, and dirt.

Seal drafts. Weather strip doors and caulk around windows to keep your HVAC from overworking.

Examine exposed ductwork. Seal any holes or leaks with duct sealant or metal-backed tape

Monitor your thermostat. Consider a programmable thermostat to increase your system’s efficiency and avoid overrunning it

Check the flame. Natural gas furnaces should have a crisp, blue flame; if not, call an HVAC tech immediately

Clean the drain line. Flushing it out regularly will help avoid clogs

Check carbon monoxide detectors. Test monitors monthly. Replace batteries annually

Schedule a professional checkup. Have units inspected at least yearly.

Where Did July Go!!!

Each month when my computer reminds me that it is time to prepare my content for this newsletter, I am surprised to see the notice as I think it was just two weeks ago that I sent my last newsletter and in fact it was 4 weeks ago. They do say time flies faster the older you get.

Since putting the boat in the water in late June, we have been busy outside the house, with several projects, including a new interlock front walkway, a patio under our deck where we can serve dinner and look out over the river, and the all important new safe steps down to the river.

I have been getting my exercise daily as I have about 12 locations I have to move the water sprinklers to each day so that the new lawn does not go brown before our big party in September.

Guide to Paint Finishes (So You Won’t Waste Your Money)

There’s a basic rule of thumb to follow when choosing paint sheens: The higher the sheen, the higher the shine — and the higher the shine, the more durable the paint will be.

Flat paint has no shine; high-gloss is all shine. In between are eggshell, satin, and semi-gloss, each with its own practical and decorative job to do. 

Here’s how to choose the right paint sheen for your painting job.

High Gloss

The most durable and easy to clean of all paint sheens, high-gloss paint is hard, ultra-shiny, and light-reflecting. Think appliance-paint tough.

High gloss is a good choice for areas that sticky fingers touch — cabinets, trim, and doors. High-gloss, however, is too much shine for interior walls. And like a Spandex dress, high gloss shows every bump and roll, so don’t skimp on prep work.

Practical application: kitchens, door, and window trim

Durability: very high

Semi-Gloss

Good for rooms where moisture, drips, and grease stains challenge walls. Also great for trim work that takes a lot of abuse.

Practical application: kitchens, bathrooms, trim, chair rails

Durability: high

Satin

Has a yummy luster, which, despite the name, is often described as velvety. It’s easy to clean, making it excellent for high-traffic areas. Its biggest flaw is it reveals application flaws, such as roller or brush strokes. Touch-ups later can be tricky. 

Practical application: family rooms, foyers, hallways, kids' bedrooms

Durability: high

Eggshell

Between satin and flat on the sheen (and durability) scale is eggshell, named because of its essentially flat (no-shine) finish with little luster, like a chicken’s egg. Eggshell covers wall imperfections well and is a great finish for gathering spaces that don’t get a lot of bumps and scuffs.

Practical application: dining rooms, living rooms

Durability: medium

Flat or Matte

A friend to walls that have something to hide, flat/matte soaks up, rather than reflects, light. It has the most pigment and will provide the most coverage, which translates to time and money savings. However, it’s tough to clean without taking paint off with the grime.

Practical application: adults' bedrooms and other interior rooms that won’t be roughed up by kids

Durability: medium-low

Tips for Choosing the Right Sheen

If your paint color is dark and rich but you don’t want a super shiny effect, step down at least one level on the sheen scale. That’s because the darker and richer the paint color is, the more colorant it has, which boosts sheen. Ditto if you’re painting a large, sunwashed, or imperfect wall. The higher the sheen, the more defects will show.

Adding sheen also increases the cost, usually an extra couple dollars of per gallon as you step up on the sheen scale.

How Much Is Your Debt Impacting Your Borrowing Power?

Contrary to the fear I hear all the time from prospective first time buyers, there is no rule saying that you must be debt free to get a mortgage. 

You can have debt – it’s just about how that debt stacks up against your household income, and how lenders assess your ability to make it all work.

Each financial commitment you have, from your auto loans to credit card balances, influences how much mortgage you can qualify for. It’s not just about how much debt you carry, but how the monthly payments on these debts fit into your overall financial picture, particularly your debt ratios.

Understanding Debt Ratios

Lenders use debt ratios to decide if you’re a good candidate for a mortgage. These include:

Gross Debt Service (GDS) Ratio: This is the portion of your income needed to cover monthly housing costs, which includes your potential mortgage, property taxes, and sometimes even heating costs and condo fees. A lower GDS shows you can comfortably handle your living expenses.Total Debt Service (TDS) Ratio: This ratio looks at all your debt obligations, including housing costs and other payments like car loans or credit cards. A manageable TDS ratio suggests you can handle your debts efficiently without stretching your budget too thin.

The real life impact of debt

Think about how a new car payment might affect your borrowing ability. For instance, spending $821 monthly on a $56,264 car could potentially reduce your mortgage borrowing power by around $110,000. This adjustment could limit your home buying options.

If you’re considering a significant purchase like a car, consider waiting until after you’ve bought your home. Postponing large new debts can improve your mortgage qualifications and open up more options for homes.

Before you start house hunting or thinking about that car upgrade, let’s talk.

We can review your financial situation together and figure out the best way to prepare for a mortgage. Understanding your debt ratios can help us determine what you can afford, setting you up for success as you plan your home purchase.

Pontoon Boat Is In The Water

Taking out the pontoon boat is a new experience for me. I am quite comfortable docking my 16' fishing boat, but the 22' pontoon is a new challenge, for now it is a two person job to bring it safely back to the dock.

We got the boat into a the water a little later than we would normally start the boating season due to the fact that I had to build a new dock to be able to accommodate a larger vessel than what the original dock was designed for. The next challenge won't be until the fall when we go to take the dock out but let's enjoy a summer of it taking no more than 2 minutes from saying "Hey let's go out for a boat ride" to actually being on the boat as it is tied out on the river in front of the new home.

Between Caroline and I we still have not agreed to what is the front and what is the back of our house. I like to think the front is the side that faces the water, she likes to think the front is the side with the street address and the "front door". We can safely agree to disagree on this one.

RESP or Rental Property To Fund Your Child's Education

Anyone that has had a recent discussion about the cost of sending children to university knows that the costs are increasing each year and few plans will fully fund the requirements.

Putting money aside is a great idea, and I have done some recent calculations that compare what your RESP plan will be worth, compared to what it could look like if you were to put that same monthly contribution into the purchase of a revenue property.

To help parents figure out how an investment property could fund their children's education, I have put together a short recorded video presentation that you can watch for free with the following link:

RESP VS RENTAL PROPERTY

After watching the presentation feel free to reach out to me and we can take a look at your specific numbers and compare the two results.

Tax Optimization Is Not Tax Evasion

Talking about tax optimization will always bring some naysayers out of the woodwork who will say you are teaching people to scam and avoid their legal tax duty – so let’s clarify for the haters.

When we talk about tax optimization, it’s crucial to understand it’s not about evading taxes. It’s about smart financial planning to ensure you’re only paying what you owe.Paying taxes is an essential contribution to the services and infrastructure we all enjoy in Canada, but that doesn’t mean you should pay more than necessary due to inefficient tax planning.Tax evasion is illegal—it involves deliberately concealing income or information to reduce tax liabilities. Tax optimization, however, is about using the rules to your advantage, legally and ethically.Strategies like cash damming are perfect examples of tax optimization. They’re approved by tax authorities and designed to make your financial plan more efficient. Cash damming allows homeowners who also own rental properties to manage their finances more effectively. By using rental income to pay down the mortgage on your primary residence, you’re able to convert non-deductible interest into deductible interest.This shift not only complies with tax laws but also reduces your taxable income, enhancing your cash flow and allowing you to reinvest savings in ways that can generate further income.The principle here is simple: optimize your tax situation so you can keep more of your hard-earned money working for you, rather than losing it to taxes unnecessarily.Implementing cash damming doesn’t mean you’re paying less than your fair share of taxes; it means you’re managing your obligations in a way that aligns with both legal frameworks and your personal financial goals.Remember, tax optimization through strategies like cash damming can lead to significant long-term financial benefits. It’s about making sure every dollar you earn has the maximum possible impact on your wealth.By effectively using tools like cash damming, you’re not just saving on taxes. You’re building a foundation for greater financial security and potential wealth for the future.If you’re looking for ways to enhance your tax efficiency without stepping over legal lines, let’s explore how cash damming and other strategies can be integrated into your financial planning.