Friday, 28 December 2012

Mortgage Checkup- Get a expert under the hood

MORTGAGE CHECKUP: Get an expert under the hood

You’ve got a mortgage. You’re making payments. You figure that you don’t have to look at it again until it’s time to renew, right?
Wrong. You should actually make a habit of getting an annual Mortgage Checkup. Make an appointment so we can check under the hood of your mortgage – to make sure everything’s working as it should. A few minor tweaks now could have your mortgage running much more efficiently, saving you a financial breakdown later or saving you thousands of dollars.
What do we look for in a mortgage checkup? There may be a way to structure your repayment –frequency or lump sum paydowns – that could shave thousands of dollars off your total interest.
Maybe you’re carrying some other consumer debt that could be transferred to your mortgage –to help you power down your debt with less interest.
Maybe you’re thinking ahead to a renovation project, a wedding, a vacation, or a few years of tuition bills. Your mortgage is generally your ticket to the best possible lending rates – and I can help you maximize your lending power with a debt reduction plan to keep your wealth-building plan on track!
Book a mortgage review and make sure your plan incorporates what may be ahead: it could pay big dividends!

-- Sincerely
Kevin & Faye Kitzman
Sales Representatives
Remax Real Estate Centre
Direct : 519-577-0603
Faye Kitzman
Mortgage Agent
Mortgage Intelligence
519-588-0141
M08003930

Thursday, 27 December 2012

Use your home equity to reduce credit card debt

Use Your Home Equity to Reduce Credit Card Debt

Many Canadians are taking advantage of refinancing some of the equity in their mortgage to reduce their credit card debt. Why pay high interest rates on your bank's credit card debt when you can add that debt to your mortgage and pay a much lower interest rate! One important part of a strategy is knowing "good debt" from "bad debt". A well-planned mortgage can help you turn those bad debts into good debts and get them out of the way.

1. Consolidate high interest rate credit cards to one lower rate.
2. Save money and increase cash flow.
3. Reduce stress knowing that your financial situation is now manageable.
If you'd like to have a conversation about refinancing your debt, give us a call today to review your options. It's time to beat the banks!
What's Next ?

Call to review your mortgage strategy
Apply Online
Review other mortgage services

*Subject to approved credit, income verification and meeting lending credit granting criterea. Applies to residential mortgages only and some conditions may apply. O.A.C., E.O.E All content is subject to change without notice.


Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930

Monday, 24 December 2012

The costs of buying and selling a home.

The costs of buying and selling a home
2012-12-20
Got your down payment? Good, now be prepared for the other costs associated with buying a home.
By Gail Vaz-Oxlade

It’s a very exciting time, closing your first home. I remember quivering like JELL-O when I had to sign the papers for my first solo house purchase. Young and naive, I thought I had dotted all the i’s and crossed all the t’s, but I still had some surprises in store.
The costs that snuck up on me back then are still sneaking up on new home buyers today. Perhaps it’s because down payments grab all the focus. Yes, the down payment is the biggie, but you better be prepared for the other costs associated with buying a home.
Loads of folks make no provision for the $600-$900 in legal fees and the $300 or so in disbursements we have to pony up to a lawyer even though we know, at least in theory, that we’re going to need a lawyer to close on the deal. If you go with a lawyer who makes his living closing real estate transactions, chances are you’ll pay less because he’ll have streamlined the system. But don’t take my word for it. Check with your mortgage broker, friends and family for referrals.
Most people who have never bought before have no idea what the “property tax adjustment” cost is all about. It’s simple really. If you’re buying a home from George, and he’s already paid property taxes on the property for months you’ll be living in it, so you’ve got to pay George back for the money he’s already sent in. You’re responsible for the property taxes from the date you take possession, and this is calculated by the lawyer and paid back to the seller as part of the transaction.
Another cost that throws new buyers is the “interest adjustment date.” The maximum this can be is one month’s worth of interest, but most often it is less. If your mortgage is advanced (sent to the lawyer to pay to the seller) on June 14, you’ll owe interest from that date until the date your first mortgage payment comes out of the bank (likely July 1). It’s a good idea to ask your lender to calculate your interest adjustment so you know what to expect.
If you’re selling a home before your mortgage term is up for renewal, you’ll likely have to pay an interest rate penalty, sometimes called a LIC (lost interest compensation) or IRD (interest rate differential). This is the fee the lender is going to charge you for breaking the mortgage early. Hey, a deal is a deal, and if you break the deal you shouldn’t be surprised that you have to pay. Sometimes it’s three months worth of interest. Sometimes it’s much worse. If you’re selling and then buying, and planning to break an existing mortgage—as opposed to taking it with you to the new property—you better have a handle on just how much this is going to set you back.


 
Kevin & Faye Kitzman
Sales Representatives
Remax Real Estate Centre
Direct : 519-577-0603
 
 
Faye Kitzman
Mortgage Agent
Mortgage Intelligence
519-588-0141
M08003930

Wednesday, 19 December 2012

Put those unused gift cards to work!!

These holidays, put those unused gift cards to work
2012-12-18
By: Preet Banerjee
Published on Dec. 13 2012 by the Globe and Mail

You’re at a friend’s house for dinner to celebrate the holidays and you’re exchanging gifts. They hand you a gift-wrapped box and you hand over an envelope containing a gift card.
They take it from your hand, telepathically acknowledging that you didn’t take the time to plan out a meaningful gift representative of your relationship, but that it’s okay. It’s Christmas. It’s a stressful time of year, and sometimes there just isn’t enough time to get it all done.
Some people see gift cards as a great way to reduce the stress of shopping during the holidays. They’re flexible, after all, and let the recipient decide which item will make them happy. To these people, they are the perfect gift. Others argue that gift cards are merely the fastest way to cross a name off your shopping list.
Studies have shown that many people loathe receiving them, others want nothing more than to accumulate them. To each his own.
Whatever your stance may be, gift cards are big business for retailers. Chances are, you have received a few and they are wasting away in various nooks and crannies in your home. Some of those unused gift cards may be losing value due to maintenance charges, which slowly drain the cash balance when the cards remain unused. Older cards may have expiry dates, while others may simply be forgotten or lost.
Rules governing gift card fees and expiry dates are generally under the purview of the provinces, but federally regulated industries are exceptions so phone cards and bank-issued pre-paid gift cards may still have expiry dates.
Canadians waste a lot of the money we are given in the form of gift cards. Cardswap.ca, a site that facilitates the buying, selling, and donating of gift cards, reports on its website that Canadians are losing $1-billion per year.
So if you haven’t finished your Christmas shopping, round up all the unused gift cards in your house. Use them to lessen the fiscal blow to your bank account as you check off the remaining naughty or nice people in your life. I was surprised to find out that the gift cards lying on my dresser totaled over $300.
If you can’t use all the gift cards at all the stores you are shopping at, you can sell them for a small fee on sites like CardSwap and take the cash to help pay down debt. That might be the best option for many Canadians because eliminating interest payments is the gift that keeps on giving.



Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930




 

Tuesday, 18 December 2012

Are you concerned about the changing Mortgage rules?


BUCKLE UP: A broker really helps in an uncertain market


There have been several substantial – and unexpected – changes in the mortgage market in the last year that have made it more difficult to get a mortgage in Canada. And it’s never been more important to have expert and timely advice on your mortgage  – and access to as many options as possible.

For example, the new mortgage guidelines from the Office of the Superintendent of Financial Institutions (OSFI) have made it more difficult to qualify for a mortgage at federally regulated financial institutions. That’s why there’s a surge of interest in non-traditional lenders: those who are not subject to federal regulations. Mortgage brokers are trained to scout out these options, which is why a whole generation of savvy homebuyers are looking beyond traditional lenders to explore the full range of choices available. 

If you’re concerned about how changing rules and a shifting market might impact your financial plans, this is the time to talk!



 

Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141

M08003930

Wednesday, 12 December 2012

Buying a rental property?

Buying a rental property? How the financing game has changed

Rob McLister Globe and Mail Dec 10,2012

Just four short years ago, you could buy an investment property with nothing down and get the best interest rates in the market.

That was then. Today, rental financing is night-and-day different. To mortgage a small (a one-to-four unit, non-owner occupied) rental property now, you need to plop

With a tipsy housing market and the credit crisis still fresh in memory, regulators and lenders are putting higher-risk borrowers under a microscope. That includes real estate investors.

As a result, it's now trickier to qualify for a rental property mortgage – especially compared to the days before April 19, 2010. (That's when federal legislation put an end to insured rental mortgages with less than 20 per cent down.)

So if you are considering a small rental property and need a mortgage soon, here are some things to remember.

You'll need an ample down paymentIf you buy a rental home that you won't live in, almost every lender in Canada will want at least 20 per cent down. That's $72,000 on the average $360,000 residential property.

And if you're purchasing a condo or buying in a "higher-risk" city (like Vancouver), many lenders will want an additional 5 per cent.

Picking the right lender matters more than everIf you want to be approved, your "total debt ratio" must fall within lender limits. At the risk of oversimplifying, your "total debt ratio" is generally your total monthly expenses divided by total monthly income from all sources, including rentals.

That sounds simple, but it's not. A borrower's ability to qualify often depends on how much of her rental income the lender recognizes.

You'd think that if a tenant pays you $1,000 a month, you could add that $1,000 to your income when qualifying for a mortgage. But in many cases, lenders will credit you with only 50 per cent of the rental income you receive, making it harder for you to qualify.

In all, there are four ways that lenders calculate your debt ratios, which are beyond the scope of this column. Suffice it to say, any competent mortgage adviser can point out lenders with borrower-friendly methods.

And there's one last thing to keep in mind about debt ratios. Different lenders have different limits. Some lenders let you have a 42 per cent total debt ratio. Most others permit just 40 per cent. That extra 2 per cent can make a big difference , especially for folks with mortgages on multiple properties.

The moral here is that the lender you pick can have a major impact on your approval chances. If your qualifications aren't perfect, you'll need a lender that is open to some common sense underwriting exceptions, and those are getting harder to find.

Multiple rental properties = headachesMany lenders prohibit you from owning and/or financing an unlimited number of rental properties.

Even if they don't explicitly forbid it, the inability to count all your rental income in debt ratio calculations can make approvals challenging, and sometimes impossible. In fact, it often forces people with big rental portfolios to renew mortgages with their existing lender at unfavourable rates and terms.

So if you plan to finance a small rental empire, find a broker that has several clients with 10 or more rental properties. They'll need that experience to help you know which lenders to use, and in what order.

The key to remember is that lenders with the best rates often have the tightest rules. If you want the best terms, you'll want to use the more restrictive lenders early in your empire building and save the flexible ones for last. That ensures you don't run out of competitive lenders when your portfolio gets big.

More paperworkA few years ago, it was easier to use an appraiser's estimate of a property's rental income in lieu of a signed lease. Today, more and more lenders want to see a signed written lease or other proof of rental income.

It also helps to have two years' tax returns available. That's because using tax returns to show your net gain or loss on a property can make it easier to qualify, as opposed to using other standard debt service calculations.

The rate is often secondaryRental mortgages are higher risk so many lenders now charge rate premiums.

Fortunately, you can still find lenders that extend their best rates on investment financing. The question is, do they offer the other features you need?

In keeping with supply and demand, the most flexible mortgages usually cost more. That's especially true for investment property financing. Be prepared to pay a little extra if you need a lender that satisfies more than a few of these criteria:

  • has highly flexible rental income rules
  • allows you to carry a greater debt ratio
  • lets you put a property in a company name for liability protection
  • lets you finance more than four or five properties
  • doesn't impose a minimum net worth requirement
  • allows 30– to 35-year amortizations to maximize your cash flow
  • lets you prove rental income with "market rent" appraisals
  • allows a gifted or borrowed down payment
  • allows you to add a second mortgage
  • will lend on large mortgages (e.g., $750,000+)
  • has a low minimum credit score (e.g. 600 versus 650)
  • allows rental income from suites that don't conform with current municipal bylaws
  • provides cash back (sometimes handy for improvements and closing costs)
  • allows you to add a vendor take-back mortgage (this is where part of your purchase is financed by the property seller)
  • offers a line of credit with your rental mortgage
  • pays for your switching fees (this is far less common with rental mortgages than it is for regular mortgages)
Choose your broker carefullyIf you want the best rental rate and most flexibility, an experienced no-fee broker is the way to go.

Rental financing is truly a specialization and probably only one in 10 mortgage professionals are actually proficient at it.

Rick Robertson, founder of the lender comparison firm Mortgage Mentor, says one way to screen brokers is to ask how many properties they've financed in the last year. If the number is less than 10 or 15, find a more experienced broker.

And Mr. Robertson adds, "Deal with a broker that uses a lot of lenders. Each lender has its own niche and no two lenders in Canada have the same rental policy."

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/buying-a-rental-property-how-the-financing-game-has-changed/article6137071/


Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930

Tuesday, 11 December 2012

A Great Credit Score: Call me today for your ticket to wealth!

A GREAT CREDIT SCORE: Your ticket to wealth

As long as you can get a mortgage, does it really make a difference what your credit rating is?
Absolutely. Your credit rating is your “letter of reference” to lenders. It tells them what kind of a risk you are as a borrower, how much they can confidently lend you, and on what terms. A great credit rating, then, is your ticket to wealth-building. You’ll get the best access to financing, at the best possible terms.
Develop good credit habits, and you can watch your credit score improve in only a few months. First off, you need to pay your bills on time.. all the time. Credit cards are a good way to build your credit rating – if you use them regularly, and pay them off each month. If your credit card balance goes above 30% of your available credit, that debt will quickly work against you. Another easy tip often overlooked is to always keep your oldest credit card. That long credit history is an asset that isn’t easy to replace. Also skip the store cards! They are tempting offers to “save on today’s purchase” but resist the temptation. Those credit applications trigger an inquiry on your credit rating – and can drive down your credit score. Store cards are rarely a good credit decision.
Want more advice on building a great credit score? Give me a call!

Sincerely,
Kevin & Faye Kitzman
Sales Representatives
Remax Real Estate Centre
Direct : 519-577-0603
Faye Kitzman
Mortgage Agent
Mortgage Intelligence
519-588-0141
M08003930

Friday, 7 December 2012

Call me today! We can help with the new mortgage rules.


New mortgage rules came into effect November 1, 2012. For some

Canadians, those new rules are getting in the way of getting a mortgage.

The new lending guidelines – from the Offi ce of the Superintendent of

Financial Institutions (OSFI) – apply to all federally regulated fi nancial

institutions. And it’s true that it is now harder for some borrowers to qualify

for mortgage financing with these lenders.

The good news is that there are many Canadian lenders who are not

regulated by OSFI. In fact, I have access to

over 50 lenders – so I can help fi nd the lender and the mortgage

that’s right for you.

Call me today!


Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930

 

Thursday, 6 December 2012

BUILD YOUR CREDIT HISTORY


BUILD YOUR CREDIT HISTORY: Always keep your oldest credit card.

Wasn't it exciting? Your first credit card? For most of us, it was our introduction to the real financial world: the privilege of borrowing, and the responsibility to pay back.

Perhaps you've changed your financial institution since you got that first credit card. Here's an important piece of advice: keep that credit card. Even if you now do most of your banking with another institution, that old credit card is valuable to your credit score. If you can, you should always keep your oldest card, and use it a little so it remains active. That long credit history is a valuable asset.

Someone who has no credit history is usually viewed as riskier than someone who has credit and manages it responsibly. If you are thinking of canceling a card, get some advice first, even if you aren't using it.

Simply put, use credit wisely. Keep your oldest card, use it regularly, and keep it paid up-to-date. Remember the 30% rule, and fight hard to get your overall debt to under 30% of your available credit... and keep it there!


Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930

Wednesday, 5 December 2012

Get the inside track: Work with ME!


GET THE INSIDE TRACK: Work with a mortgage broker 


If you’re like most Canadians, your mortgage is one of the biggest investments you’ll ever make. That means you need to manage it carefully – not just at renewal time.

The past year has seen several significant changes in the mortgage market – and everyone is watching the rate environment very closely these days. It’s never been more important to have reliable, timely information. As a professional mortgage consultant, I can give you the inside track on managing your mortgage.

Maybe you’re thinking about buying your first house… or your next. Perhaps you’re looking at your overall debt picture. Maybe you want to make an investment, or find funds for a renovation or a vacation home. Or maybe your mortgage is just coming up for renewal. A well-designed and carefully managed mortgage can be your key to wealth-building – and save you thousands of dollars.

Resist the temptation to put your mortgage on autopilot until it’s time to renew. That’s why my clients appreciate receiving timely mortgage updates. I’m a trained and accredited mortgage professional, with access to a large range of traditional and non-traditional lenders. You’ll get top-notch advice, the best range of options, and the inside track on smart mortgage management.
Your mortgage should be the centerpiece of your financial picture – and your most flexible and powerful financial tool. I can make it work for you.

Kevin & Faye Kitzman
Sales Representatives
Remax Real Estate Centre
Direct : 519-577-0603
Faye Kitzman
Mortgage Agent
Mortgage Intelligence
519-588-0141
M08003930

Tuesday, 4 December 2012

Life after Divorce


Life after divorce: Get your finances on track



By

Gail Johnson | Insight – Tue, 25 Sep, 2012


Even in the most amiable of breakups, figuring out finances after a divorce can be headache-inducing. Whether

it's emotional bonds or financial assets, splitting ain't easy.

And the financial lives of Canadians are becoming ever-more entwined. According to a recent survey from TD

Canada Trust:




68 per cent of Canadians in a serious relationship have a joint bank account




64 per cent have a shared financial plan




52 per cent have a joint credit card




72 per cent own a home together


Nearly a quarter of divorce proceedings last longer than two years, which makes it increasingly crucial for

newly-single Canadians to regain financial stability as soon as possible after a split. "It's important for newlysingle

Canadians to stabilize their financial situation after a break-up so that they don't start taking on debt,"

says TD Canada Trust senior vice president John Tracy.

There are several steps people can take to ensure their finances are intact when their relationship isn't.


The style of breakup


Jim Doyle, senior financial consultant with Vancouver's Investors Group, says for those just about to embark on

divorce proceedings, it's important to look at various approaches: a litigious model, a collaborative approach or

a mediated process.

"How you choose to enter into that process has a significant effect on how you come out the other end," Doyle

says. "Imagine a litigious type of scenario. Your spouse and yourself end up with agreements that are typically

not entirely desired by either side, and the situation is kind of forced onto you.

"A collaborative approach, where you're able to talk through the situation and bring in divorce coaches to help

keep emotions at bay, helps keep conversation going and you can see what the results are going to look like."

Online tools such as

My Support Calculator can give a clear sense of financial obligations for alimony and


child-support payments.


Understand your position


With

joint assets and liabilities, it's vital to work out their division and be completely clear on what liabilities


you'll be responsible for. It's not just enough to break things down into "who gets what" but to look at the longterm

consequences of those divisions.

"What is often asked for may result in one party ending up financially destitute and the other enjoying financial

enhancements. Explorations of consequences of divisions are essentials," Doyle says.

Be sure that future expenses, such as the

cost of kids' education, are taken into account as well, Doyle adds.


Move forward slowly


"Recognize there are a ton of emotions, and anytime you make financial decisions when emotions are involved,

you might not be making the clearest choices," Doyle says. "Avoid unrealistic expectations."

For instance, he says it's common for those who have recently split up to want to go out and buy real estate.

Doyle suggests taking some time to rent first, even if it's just for a few months, to get a sense of exactly what

your new financial picture looks like.

"It might take a little while before you get a pattern established," he says. "Divorce is a significant change, and

you'll need to determine what your cash flow looks like with new circumstances. What are you new financial

priorities? Where is your money going?"


Write it down


To help get a

precise view of cash flow, Doyle suggests tracking expenses.


"You might have been accustomed to spending a certain way, and some expenses might come up as surprise;

maybe your partner always paid the car insurance or property taxes."

Tracking expenses also helps with establishing a budget and sticking to it. Online calculators can help with

both.


Benefits matter


It's common for spouse's to co-ordinate employee benefits, especially if one partner has wider coverage, but

when you lose your spouse you also lose those benefits. "If you had benefits through work there may be certain

periods when you can re-enroll. This is a crucial but often overlooked aspect of divorce."


Get help


If your partner was the one who

made all the financial decisions, from what types of funds to invest in to how


much money got put away every month, and now you're in charge, you might need guidance from a financial

planner, advisor or bank representative who's educated in divorce and division of assets.

"If you lost a partner who was your financial ally and now you're making decisions on your own, that can be a

daunting task. We see a lot of this with gray divorces," Doyle notes. "

Find out what your risk profile is. Focus


on

strengthening your investment knowledge. What are your goals as single person? How important is it that


you save for the short-term, intermediate and long-term? What decisions can you comfortably make?"


http://ca.finance.yahoo.com/blogs/insight/life-divorce-finances-track-

193716550.html;_ylt=As8iCDaqxnVMoks3fzUVO9GC7ppG;_ylu=X3oDMTQ5MjE0OXVyBG1pdAN4NnBlcnNvbmFsZmluYW5j

ZQRwa2cDNmU1MWRjYjQtOTg4MS0zYmY0LTlhNjQtYmVlZGJlMDA5MTg0BHBvcwM2BHNlYwNNZWRpYUJMaXN0TWl

4ZWRMUENBVGVtcAR2ZXIDNjc4MTJmZmItMDdkZS0xMWUyLTliZWQtNDJjNGEyNDBjZWUz;_ylg=X3oDMTMyanJ0OGF

tBGludGwDY2EEbGFuZwNlbi1jYQRwc3RhaWQDODcyNDk3NzAtNGE3OS0zNGFmLTkwMWMtYmQ3ODA5ZTU0NTM2BH

BzdGNhdANwZXJzb25hbGZpbmFuY2UEcHQDc3RvcnlwYWdl;_ylv=3

Have a great day!



Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930