31 May

Debt: To consolidate or not to consolidate? That is the question

Mortgage Tips

Posted by: Cory Kline

If your family is stressing over debt please give me a call, I would love to help you with your options.

If you are a Canadian living in debt, you are not alone.

According to Statistics Canada, household debt grew faster than income last year, with Canadians owing $1.79 for every dollar of household disposable income to debt.
Canadian households use almost 15% of income for debt re-payment.
• 7.3% of this re-payment goes towards interest charges
• Interest charges are at their highest level in 9 years
• The cost of living is projected to increase in 2020

So how can one ever get out of debt? Debt consolidation.

What is debt consolidation?
Debt consolidation means paying off smaller loans with a larger loan at a lower interest rate. For example, a credit card bill debt with interest of 19.99% can be paid off by a 5-year Mortgage with an interest in the 3-4.00%* range. (*OAC, rates subject to change w/o notice). Many people are just making the minimum payment on high interest credit cards, which could take 30 years or more to pay off!

A lot of confusion surrounds debt consolidation; many of us just don’t know enough about it. Consider the two sides:

The pros
• The lower the interest rate, the sooner you get out of debt. A lower monthly interest allows you to pay more towards your actual loan, getting you debt-free faster.
• You only have to make one monthly debt payment. This is more manageable than keeping track of multiple debt payments with different interest rates.
• Your credit score remains untarnished because your higher interest loans, such as a credit card, are paid off.

The cons
• Consolidating your debt doesn’t give you the green light to continue spending.
Consolidating helps you get out of debt; continuing to spend as you did before puts you even further into debt.

Give me a call
~ Cory 705-794-1283
(Thank you Andrea Twizell for the statistics in this blog)
#DebtFree #LetsTalkMortgages #YourPlan #Advice #SavingYouMoney

29 May

Rates remain stable for the time being…

Latest News

Posted by: Cory Kline

In a terse statement, the Bank of Canada maintained its benchmark overnight rate for the fifth consecutive meeting and stated that economy was performing in line with the projections in the Bank’s April Monetary Policy Report (MPR). Following a slowdown in economic activity late last year and in the first quarter of this year, the Bank’s press release said that evidence was mounting that economic growth was rebounding in Q2. “The oil sector is beginning to recover as production increases, and prices remain above recent lows. Meanwhile, housing market indicators point to a more stable national market, albeit with continued weakness in some regions.” The central bank was referring primarily to the weakness in home sales and prices in the Greater Vancouver Area.

The strength in the jobs market is an indicator that businesses see the deceleration in growth as temporary. Recent data show an uptick in consumer spending and exports in the second quarter, and business investment has improved. However, inventories rose sharply in Q1, which could dampen production growth in the next few months.

The recent escalation of trade conflicts between the US and China is heightening uncertainty and economic prospects. Also, “trade restrictions introduced by China are having direct effects on Canadian exports. In contrast, the removal of steel and aluminum tariffs and increasing prospects for the ratification of the new NAFTA agreement (Canada’s acronym for which is CUSMA–Canada-US-Mexican Agreement) will have positive implications for Canadian exports and investment.”

Inflation has edged up to 2% as expected, boosted by the carbon tax on gasoline.

Bottom Line: Overall, the Governing Council’s optimism that the economy is rebounding has been reinforced, although they acknowledged increasing global risks. The Bank’s future decisions will remain data dependent, and they will be especially attentive to developments in household spending, oil markets and the global trade environment. It is widely expected that the Bank will remain on hold at least until after the October federal election.

The central bank does not share the view of some economists that the economy is headed for recession and rate cuts are necessary. Today’s overnight rate remains below the Bank’s estimate of the neutral rate at about 2.5%, so barring a negative exogenous shock to the Canadian economy, the next rate move could well be to increase overnight rates, but not until after the election.

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29 May

Thinking of Refinancing?

General

Posted by: Cory Kline

Thinking of refinancing?

  • Pay off high interest debt
  • Pay taxes
  • Home renovations
  • Tuition Fee’s
  • Paying off a Consumer Proposal and start rebuilding your credit

Take advantage of today’s low rates and add the cost to your mortgage.

#YourGoals #YourPlan #SavingYouMoney #LetsTalkMortgages

27 May

Food Drive

General

Posted by: Cory Kline

Thank you for coming out to our Food Drive!! Thank you to the Holmes for Homes Real Estate Team for including us in this fun event!!
#GivingBack #FoodDrive

27 May

Renovating?

Mortgage Tips

Posted by: Cory Kline

Renovating? Consider adding the cost of the renovations to your mortgage.

Let’s take a closer look at how a Refinance Plus Improvements mortgage can get you the extra cash you need to get your renovations completed.
The Standard Refinance
An everyday refinance allows the home owner to access up to 80% of the fair market value of the home. The value is typically determined by a Market Appraisal on the home. Here is how it would look:
• Current Appraised Value of the home: $250,000.00
• Max New Mortgage Amount: $200,000.00 ß 80% of present value
• Your current Mortgage Balance: $190,000
• Equity Available to you for the renovations: $10,000.00

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#DreamHome #Mortgages #YourPlan #Renovations #RefinancePlusImprovments #SavingYouMoney #LowRates #Goals

 

15 May

Do You Understand the B-20 Guidelines?

Mortgage Tips

Posted by: Cory Kline

A new survey has emerged showing that out of 1,901 owners and would be homeowners, 43% (more than two out of five) Canadians are not confident in their knowledge of the mortgage stress tests—despite them being in place for more than a year now.

We wanted to give you a brief set of notes regarding the guidelines. This is something you can use and reference whether you are a first-time home buyer or looking to refinance underneath these new guidelines. It gives a clear picture of what/how you are impacted as a buyer or someone who is looking to refinance.

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