Resolve to acheive your goals!

General Mark Goode 22 Jan

According to a recent TransUnion survey, 47% of Canadians are committing to at least one financial resolution this year. That being said, 37% did not reach their goal in 2013.

Resolutions are easy to make, hard to keep. Goals can more attainable if you have a coach in your corner. So let us help you tackle your financial resolutions for 2014.

‘Resolve the make your kids more financially savvy than you were’

Motivational quote for your fridge: “Teaching kids sound financial habits at an early age gives all kids the opportunity to be successful when they are an adult.” —Warren Buffett

Pep talk: Sure, we all want our children to be happy. But let’s be honest — what we’d rather be saying is: we all want our children to be rich. Well, you can point them in the right direction. Warren Buffett says his greatest inspiration was his father who taught him about the value of saving. This is your chance to give your kids something better than money. Teach them to fish, so to speak.

Peer support: When Naomi Mesbur’s son, Ciaran, was born, she was in debt.

She had helped fund her first husband’s business and supported them when he became ill. When he died, she had $40,000 worth of debt.

It’s a family cycle of negative behaviour that you want to stop for your children

“I don’t want to leave debt for my kid,” the 43-year-old Toronto legal assistant says. “I also want to teach him so that he doesn’t end up in this mess.”

piggy-bank

She looks for teachable moments. She talks to Ciaran who is seven, about prices at the grocery store. They play Monopoly. She brings him to dollar stores for treats. “[I tell him,] ‘You can get one thing…but it can’t be more than $1.50.’ So he chooses something and looks at the prices.”

Every week, his school has pizza day. They go to his piggy bank for the money to purchase a $2 slice and a $1 drink. If he wants an extra slice, he can help around the house for more money.

“It’s a family cycle of negative behaviour that you want to stop for your children,” she says. “I’m a single mother. To set new economic standards for the future, we have to teach the kids now.”

Expert advice: “You don’t have to talk to kids about derivatives,” says Gary Rabbior, president of the Canadian Foundation of Economic Education. “Don’t be fearful if you’ve made mistakes and you haven’t necessarily been perfect in your own life. Often mistakes are the best lessons.”

“Money is becoming much more important in people’s lives today and they’re involved in so many more decisions. If they’re going to make those decisions, they should have the basic understanding to be able to make good ones. If you don’t help them, the consequences of the mistakes they can make are having greater impact on their lives. If you make mistakes early, it can leave a legacy for a long time that you have to overcome.”

Checklist:

  • Involve your kid in your everyday finances. This doesn’t mean making them calculate your taxes. Talk to them while grocery shopping. Show them that you’re comparing prices.
  • Don’t lecture. Your money lesson has to be fun and engaging. You want to talk about savings? Paint a piggy bank or decorate a change jar to accumulate money.
  • Consider giving them an allowance. Some believe that children should not be paid for chores, but it’s up to you. Offer them an opportunity to earn extra income – maybe doing stuff no one wants to do such as vacuuming the car or massaging grandma’s feet.
  • Count the money in their piggy banks regularly. Tell them how close they are to their goals. Tell them how awesome that is.
  • By the time that your savvy kid is in elementary school, they may be ready for their own bank account. Your financial institution may require documents to open the account, including a SIN card, a birth certificate or passport; ask if they have a no-fee account for children 12 and under.
  • Teach them that every decision involves a trade-off. “Whenever you do something, buy something, there’s something you’re giving up to either buy with that money or do with that time,” Mr. Rabbior says. If your child wants a new bike, for example, ask if he’s willing to spend his savings on the bike now or continue saving for the video game consul to get it sooner. “Help your kids value the future versus the here and now.”
  • If you budget and keep track of your expenditures, let your kid in on it. Talk to her about why daddy is walking empty-handed out of the electronic store.
  • Help them set up a business. (And maybe explain to them that their lemonade earnings need to cover your initial investment of lemons and sugar.) Mr. Buffett started his first business when he was six. He bought a six-pack of pop for 25 cents and sold each one for a nickel.
  • If you volunteer or donate money, explain why you do it. Encourage them to donate old toys, books and clothing to others. Let them put money in charity boxes. Get their help picking out canned foods during food drives.
  • Talk to your mini-consumer about smart consumerism. Look at ads in the media and talk to them about strategies the company uses to try to convince shoppers to buy their product. If they’re buying a product, help them look at different options and compare prices.
  • Figure out what you spend on your teen’s wardrobe and give it to them to budget. Remind them that the money is finite for the year.
  • Movies about money to watch with the family: Richie Rich, Toy Story 2, Field of Dreams
  • Children’s books to read about money: Something Good by Robert Munsch, A Chair for my Mother by Vera B. Williams, Rock, Brock, and the Savings Shock, by Sheila Bair
  • Games to play: Monopoly, Exact Change, The Game of Life, Payday

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | 
  

 â€¨ All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie MMDLC 

Scotchmints.com

Someone in Ottawa is Getting Nervous…

General Mark Goode 22 Jan

OttawaWe all read the news, including a certain someone who happens to have influence on Canadian mortgage regulations. Here’s what he might have been reading the past few days:

The Department of Finance has been trying to manage a “soft landing” in housing, but realty soothsayer Phil Soper sums up the market like this: “We expect no landing, no slowdown, and no correction in the near-term.” (Post article)

Do you get the sense that four rounds of mortgage rules are not moderating home values like mortgage deity, Jim Flaherty, expected?

And now he’s got another thing to worry about: potentially lower interest rates, which fuel debt accumulation.

In no uncertain terms, Bank of Canada boss Stephen Poloz is telling Canadians he’s “worried” about inflation falling too low. When the BoC says that in public, bet on rates not rising for several months. In fact, trader types are now pricing a reasonable chance of a rate cut.

Rate-Cut-Probability

(Click to enlarge)

This Bloomberg data shows a 48% implied probability of a rate cut by October, based on overnight index swap (OIS) prices. We haven’t seen the odds this high in a while.

This all comes as Canada just laid an egg in employment, losing an unforeseen 46,000 jobs in December. In the last six months, the country has created just 3,400 jobs a month on average, for a population of 35 million!

The key U.S. jobs report also disappointed today.

(Note: If you had to choose just one indicator to divine rates, employment would be it—albeit it’s very volatile.)

So this brings us back to the man behind the big desk at Finance. Knowing that housing is firing on most cylinders, knowing that the BoC has an easing bias, knowing that rates can’t be expected to moderate consumer debt levels, what does he do?

jim_flahertyIn recent months Flaherty has affirmed that:

“…We have no plans for further (mortgage rule) action at this time…”

But he’s also been reiterating this statement more often, as he did on CTV this weekend:

“We’ve tightened the rules four times on mortgage insurance and if we have to tighten them again, we will.”

If housing stays hot and the BoC starts telegraphing lower rates, you can probably translate this statement as: “We will.”


 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | 
  

 â€¨ All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie MMDLC

 Scotchmints.com

Have Aggressive Gov’t Mortgage Rules Deflated Canadian Economy?

General Mark Goode 22 Jan

Brokers may have been right all along in suggesting the government has simply been too aggressive in its efforts to slow down the real estate market, with growing speculation among economists that the BoC will soon have to fight deflationary trends, in part fueled by idling home sales.

“The inflation right now is very low and it will stay very low in the coming months,” Benoit Duricher, senior economist for Desjardins Group said to the Canadian Press. “So the Bank of Canada should be worried about that.”

That concern was front and centre for industry players expected to parse every word of Wednesday’s BoC rate update. The bank, as expected, held its Overnight rate at 1 per cen, although it lowered its forecast for inflation at the same time suggesting the economy is strengthening.

The bank anticipates that economy grew by 1.8 per cent in 2013, but will expand another 2.5 per cent this year.

That may be overly optimistic, say some analysts, given recent comments by the bank’s governor, Stephen Poloz.

“If the U.S. economy is strengthening as we believe, those will be very welcome kinds of market pressures,” Poloz said on CBC’s the Lang and O’Leary Exchange earlier this month. “But it’ll still be up to us what our monitored policy should be, independently of what’s going on in the U.S. and that will depend on where is inflation relative to where we expect it to be. Right now it’s expected to be too low for too long so that’s where we sit.”
 
Many pundits are pointing to the aggressive measures the federal government has taken to rein in a hot housing market as a main contributor to slower-than-expected inflationary growth, which has been held below the two per cent target for 19 consecutive months.

It remains to be seen if the central bank will lower interest rates in a bid to encourage positive inflation.

 

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | 
 

   â€¨ All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie MMDLC

 Scotchmints.com

Canadian Real Estate Number no surprise to most…

General Mark Goode 17 Jan

Despite a summer housing market surge, home sale activity slowed in December – sparking a trend back to moderation that is expected to carry into 2014.

“Activity has gradually eased back from stronger than expected levels last summer and is now roughly in line with the ten year monthly average,” said CREA President Laura Leyser. “We’ll likely continue getting mixed signals in the months ahead, with positive year-over-year comparisons for sales masking the recent moderation in the monthly sales trend.”

National home sales fell 1.8 per cent in December over November despite jumping 12.9 per cent above December 2012’s tally. December marked the third straight monthly decline as activity fell a total of 5.2 per cent following September’s peak.

2014’s sales forecast may depend on potential mortgage rule changes, with CREA Chief Economist, Gregory Klump, believing 2014 may benefit from steady job growth.

“National sales activity has softened in recent months and is expected in 2014 to remain down from levels reached last September,” said CREA Chief Economist Gregory Klump. “That said, absent further mortgage rule changes, sales in 2014 may surpass the annual total for 2013 if demand holds steady near current levels as strengthening economic and better job growth offset the impact of further expected marginal mortgage interest rate increases.”

Current homeowners will likely rejoice, with the national sales price rising 10.4 per cent year-over-year. The national price of sold homes in December was $389,119.

However, according to MLS, the Home Price Index is a better indicator of price trends “because it is not affected by changes in the mix of sales activity the way that average price is.” The “Aggregate Composite MLS HPI” rose 4.31 per cent year-over-year.

“Year-over-year price growth in the MLS® HPI was mixed across housing markets tracked by the index, led by Calgary (+8.74 per cent) and Greater Toronto (+6.31 per cent),” the report stated.

“Greater Vancouver recorded a second consecutive year-over-year increase (+2.13 per cent) following more than a year of declines between late 2012 and late 2013.” ~ Justin da Rosa

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | 
    â€¨ 

 

All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie MMDLC

 Scotchmints.com by Justin da Rosa http://www.mortgagebrokernews.ca/news/no-surprises-in-creas-latest-numbers-176119.aspx

Readers’ Choice Awards 2013 vote today!

General Mark Goode 13 Jan

 

 

 
 

 

We wanted to Thank you our clients friends and referral partners for choosing Mortgage Man – Dominion Lending Centres for Home Financing. As a valued client you know that our committment to you does not end at the signature,
we are here for you through out the life of your Mortgage.
We will make ourselves available to answer any questions that may arise. We are always grateful for the feedback we receive from our clients, allowing us to provide the best possible service throughout Ontario and beyond.


We would be grateful if you could cast a vote in the
2013 Reader’s Choice Awards with Orillia Today

 

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~Corin Payie

 

12 Mortgage Tips of Christmas

General Mark Goode 19 Dec

1) How much of your mortgage principle did you pay off this year? If you have had your mortgage for more than one year, you have most likely paid off more than in previous years since your interest payments are reduced slightly with each payment you make. A quick glance using online-banking will answer this question for you.

2) How often did you take advantage of your pre-payment options? These include double up payments, annual payment increases and principle payments (some financial institutions allow you to pay up to 20% off your original mortgage balance annually)

3) What about your holiday bonus? Can a portion of it be used to make an extra payment on your mortgage? One extra payment per year over the duration of your mortgage lifespan will reduce your mortgage amortization by years, which means you will pay less interest in the long run.

4) Do you have a home-equity mortgage with a line of credit attached?
        • What to do: pay off a portion of the balance with any extra funds you earn in December.

        • What NOT to do:  finance your holiday expenses with your line of credit when you have no immediate game plan
           to reduce your balance. The last thing you want to do is spend the next 20 years paying off Christmas 2013!

5) Planning to buy in 2014? The holidays are a good time of year to discuss with family whether the upcoming year is the right time to purchase a home. Who knows, perhaps a generous family member will deliver a Christmas miracle and offer to help you out with your down payment!

6) PSST ! !  Mid-December to mid January is the quietest time of the year for your mortgage broker, typically. Therefore it is easier to spend extra time with you during a consultation.

7) Spring starts the third week of January in Squamish! Not only does the snow typically disappear for good by the January 21st but the spring real estate market ramps up by the third week too. With housing inventory down compared to 2012, shopping earlier in the year ensures you will have a better chance of finding your perfect home (and still obtain the great mortgage rate your advisor guaranteed you in November 2013)

8) Planning A Renovation in 2014? With time off at home over the holidays, you have time to focus on what needs renovating and what doesn’t (especially if you are entertaining a houseful of people; many times entertaining a crowd will determine where the limitation of your home lie).

9) Assess whether your home is still the right fit. Is your home big enough for a growing family or entertaining your out-of-town visitors? Is your home too large to manage, now that family members have left the nest? Upgrading to a larger home may require a mortgage preapproval. Downsizing may mean debt reduction/elimination and ultimately greater cash flow for you.

10) Determine when your mortgage renewal date is. If it’s in 2014, remember to start discussing your renewal with your mortgage advisor 6 months in advance and obtain an interest rate commitment no later than 4 months in advance of your renewal date.

11) Do you have ample life and disability insurance coverage? Your mortgage advisor is authorized to arrange Mortgage Life & Disability Insurance for you. Such a discussion also opens the door to the benefits of insurance in your financial plan. Depending on your needs, your mortgage advisor may also refer you to a licensed insurance advisor or financial planner for more comprehensive coverage.

12) Looking for a trustworthy realtor? A mortgage broker works with realtors daily. Based on your needs, your mortgage broker will match you with an experienced realtor who’s the right fit for you.

*Remember to support your friends and neigbours by shopping locally throughout the holiday season. Whether shopping for gifts or obtaining professional services, for Orillia’s economy to prosper, we must be mindful to “buy local” as often as possible. Happy holidays and a prosperous new year.

All the best ~ From all of us

 Mark, Brad, Diana, & Corin

 

Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | All credits and copyrights to their respective owners.~ Corin Payie

This article was originally posted by Paul Hudson Squamish BC

Chamber of Commerce Welcomes 2013 President

General Mark Goode 17 Dec

ORILLIA – Mark Goode, 2012 president of the Orillia District Chamber of Commerce, has passed the gavel to board member Jed Levene.

A founding partner of Georgian Bay Financial Inc. on Mississaga Street West, Levene has been a chamber member for five years. He is a certified financial planner, chartered life underwriter and financial management adviser.

“Being part of the chamber is the best way to connect to the business community,” he said.

Levene’s goal as president will be to continue pushing the “shop locally” message, he said.

“The shop locally message was successful when it launched and I think the business community bought into that in a big way.”

Shopping locally isn’t just about spending dollars in Orillia, but it’s about recognizing local businesses are the heart of the community, Levene said.

Business leaders and professionals in Orillia make events like Streets Alive!, boat shows, car shows and sidewalk sales possible, he said.

“People need to recognize that,” Levene said. “Supporting local businesses just doesn’t keep dollars in Orillia, but it keeps all these community events possible.”

Levene is looking forward to working with the chamber’s new board.

“We have a great group of board appointees and I’m looking forward to hearing their ideas on how to further explore the shop locally message,” he said.

During his year as president, Goode — president of The Mortgage Man-Dominion Lending Centres on Memorial Avenue — is most proud of the improvements at the Port of Orillia. The Orillia District Chamber of Commerce runs the Port of Orillia for the city. The city invested $2.7 million in the dock project.

“The main thing we got done this year was the docks,” Goode said. “It was a huge project for all of us to get done, so we’re obviously very, very proud of getting the docks.”

Along with new docks, there were upgrades to the washrooms, gates added to the docks, electrical and water hook-ups, Wi-Fi was added and new computers were brought in.

Mortgage Terminology

General Mark Goode 16 Dec

Mortgage term:

Refers to how long the bank has agreed to lend you the money – typically from six months to five years. At the end of the term, you usually renegotiate a new term.

Amortization:

The length of time it will take to pay off the whole mortgage, often as long as 25 years. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.

Interest rates:

Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using this mortgage calculator, check the difference between borrowing $100 000 at 4%, 5% and at 6% at the same amortization. Surprising, no?

That interest rate not only affects how much you pay, it also affects how much you can borrow. So we will keep searching for the best rate available to you!

How big a down payment?

You want as small a mortgage as possible, which means making the biggest down payment possible. Just remember to set money aside for all the fees associated with buying a home (on average 1.7%). Not to mention moving, repairs, renovations, new furniture… think ahead.

The Home Buyers’ Plan – A little sweet relief

If you’re a first-time homebuyer with money in an RRSP, you can withdraw up to $25,000 without paying any income tax. If your spouse is also eligible, that’s $50,000. Ask your REALTOR® how to best take advantage of this plan.

Lock into an interest rate? For how long?

It’s a tough question. What if you ‘lock in’ for five years and the rate goes into a period of decline? That could mean you’re stuck paying more than you had to for a long time. But if rates were to steadily climb over the next five years, locking in for five years now would be a great move. Your REALTOR® may have a lot of good advice.

 

 

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