Purchase Plus Improvements: How To Finance Renovations Into Your New Home With As LIttle As 5% Down

Looking for the right home today can be tough. To increase your options, you may want to consider homes that need renovation. As long as the basic structure is good, you can make improvement to the home to your liking.

However, sometimes buyers have enough for the downpayment but not for renovations. That's where "Purchase Plus Improvements" mortgages come in. They let you borrow more to cover renovation costs which will improve the value of the property. 

For example, if you're eyeing a $500,000 property and you put in 5% down payment, you will have a mortgage loan of $475,000. You want to have the kitchen and bathroom renovated to the tune of $30,000. You can add this amount to your mortgage application at the time of your purchase, subject to the lender's discretionary approval. 

This program has specific criteria and guidelines that you need to meet, but it lets you consider more homes beyond move-in ready ones, or have to wait until you have the extra funds in order to do your renovations. 

If you want more info, feel free to reach out to me at penny@hometowngroup.ca or 705-734-6804. 

Finding Government Grants For Your Business

Did you know there are millions of grant dollars that go unclaimed every year?

That's because the government is not in the business of marketing or promoting benefits; it's up to individuals to find out on their own.

The Business Benefits Finder is an easy start to find resources for your business or if you plan to start a new business.

Here is the business grants overview page on financing programs, wage subsidies, tax credits.

And remember there are strings attached for receiving free money. 

The Link Between Clutter and Depression

Dishes in the sink, toys throughout the house, stuff covering every flat surface. This clutter not only makes our homes look bad, but makes us feel bad, too.

Several studies over the past 10 years have connected clutter with behavioral and mental health issues. Research from health care heavy hitters — think Mayo Clinic, Princeton University, and UCLA — have found that clutter can increase the stress hormone cortisol and cause lower productivity, insomnia, weight gain, procrastination, and depression.

Studies may outline the results of clutter without offering solutions. The good news? You can do some simple things, like making these five small changes, to declutter your home and raise your spirits.

Adopt the Rule of Five

Every time you get up from your desk or walk through a room, put away five things. Or, each hour, devote five minutes to decluttering. At the end of the day, you’ll have cleaned for an hour.

Be Ruthless About Your Kitchen Sink

Pledge to clear and clean your kitchen sink every day. It takes a couple of seconds more to place a dish in the dishwasher than dump it in the sink. A clean sink will instantly raise your spirits and decrease your anxiety.

Put Photos Away

Return to yesteryear, when only photos of ancestors or weddings earned a place. Put snapshots in a family album, which will immediately declutter many flat surfaces.

Unburden Your Refrigerator Door

Researchers found a correlation between the number of items stuck to the fridge door and the amount of clutter throughout the house. Toss extra magnets and paper, like calendars or take-out menus, that you can easily find on your phone.

Test Whether You'll Miss It

Fill a box with items you don’t love or use. Seal the box and place it in a closet. If you haven’t opened the box in a year, donate it (unopened!) to charity.

Our Weekend In Toronto: Family, Fun, & Fried Chicken!

As a celiac, I am always looking for new options to try when dining out.  This past weekend, we met with family in Toronto and experienced some fantastic celiac-friendly food and beverages at Her Father's Cider Bar + Kitchen.

Being a celiac means I cannot eat gluten (found in Wheat, Barley, Rye, and certain other grains).  Usually, when dining out, I cannot eat breaded or fried foods, such as fried chicken or french fries, especially if there is not a dedicated fryer in the establishment.  Most food options are usually baked or raw (such as salads).

Her Father's is a celiac-friendly restaurant in the city that offers incredible small plate style dining, a large selection of world wide craft-ciders, and other delicious bar drinks. Small plates are great when dining with a crowd so you can try multiple flavours of food in one sitting.

When visiting this weekend, our table of 8 got to enjoy Buttermilk Brined Fried Chicken (definitely a new favourite), Crispy Fried Brussel Sprouts, Halloumi Sakagaki, and Russet French Fries, along with other items such as Maitake Mushrooms and the Gem Lettuce Salad featuring crispy chickpeas, orange segments, dried cranberries and pickled walnuts.

If you are in Toronto in the near future and looking for a great night out, be sure to check out Her Father's Cider Bar + Kitchen.

You can check out their menu HERE.

Canadian credit card debt climbed 3X the rate of Mortgages

Canadian households are cooling on their borrowing but the type of debt may be an important sign. Statistics Canada (Stat Can) data shows household credit climbed at one of the slowest rates in decades in January. The slowdown was primarily caused by slower mortgage debt growth, with credit card debt rising 3x faster. 

Canadian Household Borrowing Picks Up, But Still Unusually Slow

Canadian household debt is rising but more in line with inflation and population growth these days. The balance of outstanding household credit saw monthly seasonally adjusted growth of $8.8 billion (+0.3%) to $2.93 trillion in January. Unadjusted annual growth was 3.4% for the month, a slight acceleration. However, it was still the slowest 12-month change for January going back to at least 1990, but likely way further.

Canadian Mortgage Debt Rose At The Slowest Rate Since 2001

Mortgage debt represents the vast majority of the total outstanding balance. Households saw seasonally adjusted monthly growth of $1.1 billion (+0.1%) to $2.17 trillion in January. Unadjusted annual growth was just 3.4%, marking the lowest rate since April 2001.

Canadians Are Scrambling For More HELOC & Credit Card Debt

One surprising shift is borrowing of non-mortgage credit, which is suddenly in vogue. Seasonally adjusted monthly growth was $3.5 billion (+0.5%), pushing the balance to $750.3 billion in January. The unadjusted annual growth rate was 3.4% for the month.

According to the agency, home equity and credit card debt were significant contributors. They found home equity credit (+$0.9 billion; +0.5%) rose nearly as much as mortgages over the same period. Credit card debt (+$1.1 billion; +1.1%) was also huge—rising the same dollar volume as mortgage credit, advancing at 3x the rate to accomplish that move. 

By itself, rising non-mortgage debt sounds like a bigger problem than it normally is. Annual growth is roughly at the same level it was around 2018, when mortgage debt wasn’t out of control. This is the type of credit that fuels consumption, tending to drive economic growth in productive areas. 

However, this isn’t normal times so the impact is a little more mixed with context. Households are increasingly resorting to consumer debt to close the gap between inflation and a lack of wage growth. A problem that may not be totally apparent since homeowners are tapping the massive home equity windfall just delivered. It also provides more context to the RCMP’s concerns that younger households unlikely to ever own a home, may have a destabilizing effect for the country. 

Your 2024 Tax Claims Kick Off

Most Canadians must file their tax return by April 30, which is also the deadline to make a payment for those who owe money to the government.Canadians who are self-employed, along with their spouses or common-law partners, have until June 15. Since that day falls on a weekend, the CRA will consider a return to be on time if it is received by or postmarked on or before June 17.

Self-employed Canadians must still pay money owed to the CRA by the April 30 deadline to avoid paying interest.

FHSA, home office claims among changes

This marks the first year that taxpayers will be able to enter deductions on the First Home Savings Account (FHSA), a type of tax-free account rolled out by the federal government last year to help Canadians save on their first home.

"Your contributions to the FHSA are tax-deductible, while your withdrawals — as long as you use them for the down payment of a purchase of your first home — are tax-free," said Gerry Vittoratos, a national tax specialist with UFile.ca.

The program allows prospective homebuyers to start saving for up to 15 years once they open an account, with an annual $8,000 deposit cap and a lifetime contribution limit of $40,000.

Canadians who've opened this type of account will receive a new slip called the T4FHSA, which will provide the details needed to complete your tax return.

Financial institutions and employers have until the end of February to send tax slips to the CRA. So most taxpayers might not even get their slips until early March, "and that's really the kick-off of the season," Vittoratos said.

Canadians might also notice that the temporary flat-rate method for claiming employees' home office expenses — such as rent, electricity, internet and office supplies — is no longer available.

A Busy Mom's Simple Solution to Pay Off Your Mortgage In 7-10 Years

Are you a homeowner or busy working mom (or dad) juggling countless responsibilities and stuck inside a 25-30 year mortgage that seems like it will never be paid off?

We know the struggle is real, but did you know there is a simple way to cut your mortgage interest bill by more than half and have your mortgage paid off in less than 10 years?

And, that this can be done all without gimmicks, making extra payments, doubling up payments, or changing your current lifestyle…

By learning how to restructure your finances you will pay a lot less interest…

AND have your mortgage paid off in less than 10 years….

AND if you choose to, you can use those savings, from paying your house off fast, to buy an investment property.

On Wednesday, March 20 at 7:00pm EST, I am hosting a free masterclass on Zoom that teaches you each step of what to do to pay off a mortgage in 7-10 years and how to save over $200,000 on an average sized mortgage.

This masterclass has changed the lives of countless families who have paid off their mortgage in record time and I am presenting it to you for free on March 20.  See you there!

Click Here To Save Your Seat

Check Out This Tiny 300 sq ft Detached Home!

This two-story tiny house design is an exceptional display of how high ceilings and smart design flow can make all the difference in the smallest of spaces. 

There is a bedroom on the first floor and an open living space with a bathroom/laundry room on the ground floor. 

This tiny house has a total floor area of 301 square feet and a small balcony on the first floor.

Click Here To Watch The Video

The "Ten Commandments" Of Wealth Building

There are ten key wealth building principles that lead to true wealth, not just monetary wealth. The objective is not just to become rich, but to build a balanced, fulfilling, wealthy life.

These ten key principles will help keep you on track:

Build Wealth For A Deep Cause: Money alone is too shallow a goal to motivate you to overcome all the obstacles that stand between you and wealth. When you find a deeper goal like freedom, growth, creativity, or charity, then you'll have the internal motivation to persist and succeed.

Give More Value Than You Take: When you give value then your financial success becomes a measure of how much you have given to the world. It's a satisfying way to live.

Live with 100% Integrity: Integrity is non-negotiable because no amount of money can replace a good night's sleep, a clear conscience, and a peaceful mind.

Be Courageous: Wealth results from doing what others won't so you can have what others never will. "If you always do what you've always done, you'll always get what you've always got."

Be Disciplined: Life will conspire to distract you from achieving your goal. Only the disciplined will stay the course with consistent enough action to get results.

Avoid Conspicuous Consumption: Nobody ever spent their way to financial freedom. Every day you make a choice between consumption today or wealth for tomorrow.

Build Supportive Environments: The path of least resistance to wealth is paved by supportive environments that literally pull you toward the goal.

Apply Leverage: Leverage is what separates those who achieve wealth from those who don't. You can't reach the goal by trading time for money, and you can't do it all yourself. You need leverage.

Treat Your Wealth Like A Business: As a wealth builder, you're in the personal financial management business and must manage your net worth just like an executive manages a successful business.

Steward Your Wealth: Money is little more than a tool that comes with the responsibility to use it wisely. It's not something you possess, but something that passes through you and must be given back.

If you want to unpack each of these principles, Click here for the Full Article

Bank of Canada

As expected the Bank of Canada (BOC) did not make any movement March 6 to the overnight lending rate (which directly effects Bank Prime Lending Rates) even though there's been pressure to do so. Some think tanks believe they won't consider a move until at least June.

The next BOC meeting date is April 10.

Happy New Year!

2024 Has Finally Arrived!

Each New Year brings opportunity for growth, change, good health and happiness. Best wishes for a safe and prosperous New Year to you and your loved ones!

Thank you for your continued support & trust,

Penny Wrightly & Staff

Handy Tools To Help You Understand How To Save Income Tax

One of the ways we help our clients save tax is to first of all estimate how much income tax you might owe for 2023 in various Provinces. Let me know if you want to have some help with this.

Thank you Ernst and Young for creating great online Tax and RSP Calculators.

Here is a Calculator to help you understand how much income tax you would likely need to pay in 2023. 

Click Here

If you are wanting to see how much RSP Contributions can save you on Income Tax in 2023, here is a calculator that lets you see how much tax savings a specific amount would help reduce your taxes by in each Province.

Click Here

Bank of Canada Could Be Finished With Rate Hikes

A “relatively dovish” statement by the Bank of Canada on December 6th suggested that the central bank’s rate-hiking path is at an end, according to CIBC deputy chief economist Benjamin Tal (pictured above).

The Bank left its policy rate unchanged for a third consecutive decision, with few surprised by a statement that arrived amid cooling inflation, rising unemployment and an expected economic contraction.

Once again, the Bank reiterated its willingness to raise its benchmark rate if required to continue bringing inflation lower – but that’s mainly an effort to dampen consumer expectations and keep the prospect of a rapid economic rebound in check, according to Tal.

"They have to keep mentioning that they will toy with the idea of raising again,” he told Canadian Mortgage Professional. “Otherwise, the market will react too aggressively, and they don’t want that. But overall, [the announcement was] not a big surprise whatsoever, and a relatively dovish statement – basically suggesting that the Bank is done.”

The central bank said it was “still concerned” about risks to the inflation outlook, a comment Tal said was designed to dispel the notion that its work on bringing down the consumer price index (CPI) was already done.

This article courtesy of Canadian Mortgage Professional Magazine.

After Owning, Investing In & Financing Over 2000 Properties, I Have Learned ONE Specific Strategy

For the first time ever, we are offering an exclusive program to teach our clients how to build wealth by reducing or eliminating your mortgage expenses, freeing up cash flow, and teaching you how to acquire the right assets to build wealth.

After owning, investing in and financing over 2000 properties, I have learned ONE specific strategy that is working for our clients and helping them get off the hamster and start living a life of freedom.

If you’re ready to commit to change and have total freedom, then join us: www.winatwealth.ca, space is limited.

Mortgage Freedom | Time Freedom | Financial Freedom

Shocked By Your Mortgage Renewal Offer?

If your mortgage is up for renewal in the next six months, you are probably coming off a nice low interest rate that you have enjoyed for the last few years.

Chances are that you are aware that rates have been climbing steadily over the last 24 months and your renewal rate will be substantially higher than the rate you last negotiated.

Some lenders are forecasting that rates may continue to increase and are calling up borrowers asking them to renew early. That may seem like they have your best interest at heart but to do this you have to give up your current low rate for the balance of your term.

Don't be fooled by this tactic of renewing early into a less than stellar, higher-than-you-pay-now rate.

What we recommend is to lock in a rate today that is good for four months by committing to moving your mortgage to a new lender, stay with your current lender with the current low rate until your mortgage renewal date, then make the move. We will get the new lender to offer the guarantee that in the next four months, if rates come down, you can request the new lower rate.

Want to never worry about rates again? Let's talk about options for building wealth instead. 705-734-6804 or penny@hometowngroup.ca

Aren't you glad your day is going better than this guy?

Shocked By Your Mortgage Renewal Offer?

If your mortgage is up for renewal in the next six months, you are probably coming off a nice low interest rate that you have enjoyed for the last few years.

Chances are that you are aware that rates have been climbing steadily over the last 24 months and your renewal rate will be substantially higher than the rate you last negotiated.

Some lenders are forecasting that rates may continue to increase and are calling up borrowers asking them to renew early. That may seem like they have your best interest at heart but to do this you have to give up your current low rate for the balance of your term.

Don't be fooled by this tactic of renewing early into a less than stellar, higher-than-you-pay-now rate.

What we recommend is to lock in a rate today that is good for four months by committing to moving your mortgage to a new lender, stay with your current lender with the current low rate until your mortgage renewal date, then make the move. We will get the new lender to offer the guarantee that in the next four months, if rates come down, you can request the new lower rate.

This is a win for you instead of your your current lender.  Let's keep more of your hard earned money in your pocket.  If you'd like to learn additional wealth building strategies, join our FREE training on August 15 at 7:00pm est by clicking HERE.

Would you like some extra monthly cash in your retirement?

With rising costs and longer lifespans, many Canadians are financially unprepared for their retirement years. Monthly income from a Reverse Mortgage offers a solution to boost retirement income, provide financial freedom to tackle debts, pursue hobbies, and live stress-free. If you're a retired Canadian Home Owner in need of extra cash or have family members who are 55+ and unable to qualify for new loans, we can help you or your family members find a tailored financial solution, without relying on credit cards or lines of credit.

How Monthly Income Can Help You

Monthly income from a Reverse Mortgage is one solution that continues to grow in popularity among Canadians Home Owners 55 or older, offering a tax-efficient way to unlock up to 55% of their home equity in monthly or quarterly installments, tax-free, without having to make any monthly mortgage payments.

There are a number of ways monthly income from a Reverse Mortgage could help Canadian Home Owners - relieving financial pressure by improving monthly cashflow, using it for home renovations or improvements, adding more travel to your life, and/or helping a family member with an early warm inheritance.

If you would like more information about how monthly income from a Reverse Mortgage could help you, please contact us at 705-734-6804 or penny@hometowngroup.ca.

We are always here to help! 

12 Ways to Save Money Effectively by Making Small Changes

It's crucial to be mindful of your finances and find ways to save money. Here are 12 tips to help you save during these challenging times:

1. Create a budget: Develop a comprehensive budget that outlines your income and expenses. This will help you understand where your money is going and identify areas where you can cut back.

2. Cut unnecessary expenses: Review your expenses and eliminate non-essential items or services. Cancel unused subscriptions, reduce dining out, and prioritize essential purchases.

3. Cook at home: Eating out can be expensive. Instead, prepare meals at home using cost-effective ingredients. Plan your meals in advance, make a shopping list, and avoid impulse purchases.

4. Reduce energy consumption: Lower your electricity and heating bills by turning off lights when not in use, using energy-efficient appliances, adjusting your thermostat, and insulating your home.

5. Minimize entertainment expenses: Look for affordable or free entertainment options such as local community events, parks, and libraries. Take advantage of streaming services instead of expensive cable packages.

6. Shop smart: Before making a purchase, compare prices online, use coupons or discount codes, and consider buying used or secondhand items. Delay non-essential purchases to avoid impulsive buying.

7. Save on transportation: If possible, use public transportation, carpool, or walk/bike instead of driving. Maintain your vehicle properly to avoid costly repairs and conserve fuel.

8. Negotiate bills and expenses: Contact your service providers, such as internet, cable, or insurance companies, and negotiate for better rates or discounts. Many companies are willing to work with customers during tough economic times.

9.  Reduce debt: Pay off high-interest debt as quickly as possible. Prioritize your payments and consider consolidating or refinancing loans to get better interest rates.

10. Build an emergency fund: Set aside a portion of your income each month into an emergency savings account. Having a financial cushion can help you deal with unexpected expenses without going into debt.

11. Avoid unnecessary credit card debt: Minimize the use of credit cards and pay off the balance in full each month. If you must use credit, do so responsibly and consider low-interest options.

12. Increase your income or Passive income: Explore ways to boost your income, invest in passive income investments or taking up a side hussle, freelancing, or monetizing a hobby. Use your skills or talents to generate additional revenue.

Remember, saving money requires discipline and conscious decision-making. By adopting these tips and making small changes to your lifestyle, you can make a significant difference in your financial well-being.

Wire Barbeque Brushes - Not Always The Safest Choice!

Wire grill brushes have always been the standard for cleaning grill grates. However, it’s been found that the bristles can actually break off and wind up in your food.

As you might expect, wire grill brush bristles are sharp. And one study revealed that between 2002 and 2014, around 1,700 Americans had to go to the emergency room after accidentally ingesting wire bristles. And those were just the reported cases!

Luckily, this is a problem with an easy solution, because it’s possible to clean your grill grates without a wire brush. There are plenty of other methods that work just as well, if not better.

Personally, I prefer the wooden cleaning board available where ever barbeque supplies are sold, and if you are in a pinch, wad up some aluminum foil and use it to scrape the grill grates. Just be careful that you don't burn yourself if the grill is hot.

Advantages of Buying a Home Despite the High Interest Rates.

While buying a home during a period of high borrowing rates may present some challenges, there can be certain advantages as well. Here are a few potential benefits:

Lower purchase prices: During periods of high borrowing rates, demand for homes may decrease, which can lead to a softening of property prices. This means you may have an opportunity to negotiate a lower purchase price or find properties that are more affordable compared to when interest rates are low and demand is high.

Potential for rate decreases: Interest rates are cyclical and can fluctuate over time. While rates may be high at the time of purchase, there is a possibility that they may decrease in the future. This could provide you with an opportunity to refinance your mortgage at a lower rate, potentially reducing your overall borrowing costs.

Increased savings discipline: High borrowing rates can result in higher monthly mortgage payments. This can serve as motivation to maintain a disciplined approach to saving and managing your finances. It may encourage you to focus on paying down your mortgage more aggressively, leading to faster equity buildup in your home.

Investment potential: Real estate can be a long-term investment that has the potential to appreciate over time. While borrowing rates may be high initially, if property values increase significantly over the years, the potential return on your investment could outweigh the higher borrowing costs.

Stability and security: Owning a home provides a sense of stability and security. Regardless of the borrowing rates, having a place to call your own can offer stability in terms of housing costs and the ability to personalize and create a space that suits your needs and preferences.

It's important to carefully evaluate your financial situation, conduct thorough market research, and consider the long-term implications before making any purchasing decisions. Additionally, consult with professionals such as real estate agents, financial planners (and me as your mortgage broker) as we can provide guidance tailored to your specific circumstances.

How To Pay Off Your Mortgage In 5-7 Years – WITHOUT Changing Your Income or Lifestyle

There is a little-known secret for how to payoff your mortgage in a very short time… pay HUNDREDS OF THOUSANDS LESS in interest and do it all …..

without making extra mortgage payments, without needing a new job, and without having to cut back on expenses in your life.

Want to know how?

I am hosting a very special Workshop on Saturday April 22 at 11:00am EST on Zoom for clients that would like to learn exactly how this strategy works and how to implement it. 

There are no gimmicks.

The Canadian Banks have strategies that make them richer every single quarter of the year.  We will show you how you can beat the banks at their own game by paying significantly less interest, using the tools the banks provide us with, and then become mortgage free in 1/3 of the time.

There is a new game, and we will show you how to play it.

This Workshop is for you if you want:

To pay off your mortgage in 5-7 years more cash flow each month to drastically reduce your debt and rapidly paydown mortgage principal to minimize your taxes to increase the monthly cash in your pocket to save hundreds of thousands in interest costs (average $250,000+) to travel and do more of the things you love to retire years sooner to greatly reduced stress levels total financial freedom

If you would rather keep paying a mortgage for the next 25-30 years, then keep scrolling.

BUT….

If you would like to know how to be mortgage-free in 5-7 years and start really living life, then be one of the first 10 clients to sign up for my exclusive Workshop.  I am holding 10 spots for my past and current clients before launching this to the public on Wednesday April 5.  Prices will increase at the end of the week.  Your investment today could save you decades of mortgage payments and $250,000 or more in interest.

Ask yourself these questions:

Do you have enough to retire comfortably based on your current age now? Will your current mortgage be paid off before you want to stop working? Are you living your best life now with no debts & no mortgage? Do you get to travel and/or spend on the things you want now instead of just paying off the mortgage? Do you have all the cash flow you want now?

If you answered “NO” to even one of these questions, then check out our upcoming Workshop, it will be well worth your time!

Can’t wait to see you there!

Check out our workshop here

Home Decor Tips | Kitchen

If you're thinking about remodeling your kitchen, consider updating your range hood.⁠
⁠
A range hood improves the air quality in your kitchen by removing the heat, odors, and smoke produced by your stovetop. ⁠
⁠
The appliance sucks up the polluted air and filters it (as with a ductless model) or is carried to the exterior (with a ducted model).⁠
⁠
Whether you like to cook every day or just every now and again, you probably enjoy trying new recipes from time to time. ⁠
⁠
With a range hood, you can enjoy steaming, poaching, stir-frying, and everything in between. ⁠
⁠
No need to worry about lingering smells, smokey fumes, or messy cabinets. ⁠

Do You Own Whole Life or Universal Life?

There are only two types of Permanent Life Insurance contracts in Canada.

1. What Manulife created in 2017
2. Everything/Everyone else

Manulife crushed it with a Whole Life product that allows you to buy 5% whole life with a 95% term rider while still allowing you to put in almost the same amount of money that a 100% whole life contract would.  

Send me a copy of your contract and I'll show you the difference.  It's night and day.   

FREE Masterclass: Pay Off Your Mortgage In 7-10 Years & Save $250,000 Or More In Interest!

Join us March 14 at 7:00pm EST as we uncover how to pay off your mortgage in only 7-10 years.  In this FREE Masterclass you will learn:

How to trim decades off your mortgage – saving up to $250,000 or more in interest One common mistake that is costing you thousands in interest What banks do to keep you stuck in your mortgage & how to break free How one couple struggles while another thrives – the key differences in how they pay off their mortgage How to paydown the mortgage without changing your current lifestyle Convert your mortgage into a wealth opportunity and grow a portfolio

Escape your bank lenders' deep hold on your pocketbook, reduce your interest costs, and own your home sooner. 

Register for our upcoming FREE Masterclass HERE

Helping you win at wealth,

Penny Wrightly

Should You Contribute to Your TFSA or RRSP in 2023?

The main benefit of an RRSP is the ability to defer taxes. This is because any contributions you make (18% of your 2022 income, subject to a maximum limit of $30,780) can be used to reduce your taxable income. Depending on your income bracket, this can result in significant savings.

A good reason to prioritize RRSP contributions is if you are currently in a high tax bracket.

Read the RSP Article

Your Credit Score Demystified

When it comes to mortgage borrowing there are several key factors that will determine whether you get approved, how much you get approved for and the mortgage rate.  Among them, your credit score ranks in the top three as a key determining factor.

In Canada, there are two major credit reporting agencies, Equifax Canada and Trans Union. Both have different scoring systems and even within Equifax there is a score they will report to you and a score that we as lenders see, and the two scores are often different.

As you can see in the graphic a score of 670 to 739 is considered GOOD and a score of 800 to 900 is considered EXCELLENT.  In my 29 years as a mortgage broker I have never seen a score over 875 and I have worked with a lot of great, okay, excellent clients.

Credit-reporting agencies and lenders use a mathematical formula to figure out your
credit score. This formula takes into account various factors described in your credit report, such as: your payment history, whether you carry over a balance on your credit card from one month to another, have you missed payments on any of your debts, are there any consumer propoasal or bankruptcy recorded against you, whether a collection agency had to collect an unpaid bill from you, your outstanding debts, the limit on your credit card, whether your spending close to your credit limit, your account history, how long have you had credit, the number of recent inquiries made about your credit report, and the type of credit you are using  whether it be only credit cards, or a mix of credit cards and loans.

These factors do not all have the same weight in determining your credit score. The most important factors are your payment history, whether you have ever declared bankruptcy, and the amount of your outstanding credit balances.

Although other elements such as your mortgage information and any personal inquiries
you have made may also be included in your credit report, they usually do not influence your credit score.

In short, pay your bills on time, and do not use more than 50% of the credit limit on each credit card or line of credit.

Buy, Invest & Save on Your Next Property

Are you wondering if now is the right time to upsize? Downsize? Buy an investment property? Or is now a good time to renovate your home or pay off debt? Wondering how you can payoff your home faster without costing you more?

With the massive shifts in the housing and interest rate market over the last couple years, most people are wondering what’s to follow?  If you’re curious about what is next for the housing market and how it will affect you and how to take advantage of it, then I invite you to attend our upcoming event.

Join us on Thursday February 9th at 7pm as we discuss buying and investing in real estate and how to save in today’s unique real estate market.

Topics will include:

Interest rates: Current landscape, and forward rate outlook
How to reduce the time to payoff your mortgage
How to acquire an investment property without breaking the bank
Tax preferred savings vehicles for your first home
Tax considerations when investing in real estate
Risk management – making sure you can keep your house if things go wrong
Downsizing as part of your retirement plan

Event will be held in Cambridge (*space is limited) and via Zoom

Register by visiting www.homeseminars.ca

We look forward to seeing you there!

Fixed mortgage rates are falling

While rates have been steadily climbing for variable mortgages, fixed mortgage rates have been moving in the opposite direction.

Certain lenders and national brokerages have been gradually dropping rates for select terms since the start of the month. Average nationally-available deep-discount 5-year fixed mortgage rates are now about 20 basis points lower compared to earlier in the month, according to data from MortgageLogic.news.

The move follows the recent decline in the 5-year Government of Canada bond yield, which typically leads fixed mortgage rates.

The 5-year bond yield closed at 3.05% on Monday, bouncing back slightly from a 5-month low of 2.80% reached last week. Still, yields are down from about 3.40% four weeks ago and the 14-year high of 3.89% reached in October.

Continue Article Here...

Bank of Canada increases policy interest rate by 25 basis points, continues quantitative tightening

The Bank of Canada today increased its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.

Global inflation remains high and broad-based. Inflation is coming down in many countries, largely reflecting lower energy prices as well as improvements in global supply chains. In the United States and Europe, economies are slowing but proving more resilient than was expected at the time of the Bank’s October Monetary Policy Report (MPR). China’s abrupt lifting of COVID-19 restrictions has prompted an upward revision to the growth forecast for China and poses an upside risk to commodity prices. Russia’s war on Ukraine remains a significant source of uncertainty. Financial conditions remain restrictive but have eased since October, and the Canadian dollar has been relatively stable against the US dollar.

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