Making the Most of Your Money in 2009!

January 2009

Vol 2, Issue 1

Home Sense
By Pauline Tonkin

Greetings!

It's a brand new year! A lot has happened in the economy over the past few months. This has created a new market with a great number of opportunities for consumers. Real estate prices have softened and interest rates are at all time lows.

This newsletter was created to share information regarding all kinds of money matters, from understanding mortgage financing to ideas on how to save and even make more money for you and your family. I hope you find it a valuable resource over the coming year.

Note: Visit my blog (www.mymortgagebroker.wordpress.com) for regular updates on a variety of financial information - beyond mortgages. You'll find a lot of tips and resources.

Credit Clean Up

We see many clients that are surprised to hear their credit score is not as high as they thought. Now more than ever - your credit score will determine not only your access to credit, but the interest rate you will pay. It is important to know what impacts your credit score so that you can keep doing the right things and maintain or improve your score.

35% of your credit score is determined by paying on time. Even if you can only make the minimum payment - making it on time is most important. Late payments - especially if they are recurring will seriously damage your credit score.

30% of your credit score is determined by maximizing the use of your credit. High balances result in a lower credit score.

20% of your credit score is determined by your credit limit. If you have access to a lot of credit - even if it is unused - this could limit your access to more credit. Lenders are reluctant to open up more credit unless you close out some accounts to reduce the risk that you will get into trouble with too much access. So, if you have 6 credit cards - keep 1 or 2 and close out the other accounts to clean up your credit score.

15% of your credit score is determined if you shop too much for access to credit. If you have too many credit inquiries on your account as you shop for a mortgage or a loan this will drop your score. This is where a broker can help - only one inquiry to your credit score.

To get a copy of your own credit report (no impact on your credit score) visit www.equifax.com.

In This Issue

Credit Clean Up

2009 - Financial Planning and Your Mortgage

Many people who call me are worried about access to financing for them and other members of their family. Although we did see some changes in early October 2008 - we still have access to many lenders with great rates. We also have access to many lenders for those with less than perfect credit - with some good rates as well. We have programs for self-employed, new to Canada and investors for rental properties. Not all banks will finance these needs - but there are many other lender options. Don't be discouraged and don't settle for anything less than the best service.

For first time buyers - you can still use RRSP money for a down payment. There are no tax penalties for withdrawing from your RRSP towards the purchase of your first home and you have upto 15 years to pay it back to your RRSP. Working with a financial planner you can set this up easily. You can also have someone co-sign on the mortgage for a shorter term (1-3 years) till you get some equity in the home and/or your income increases to allow you to stay on title on your own.

Visit www.mymortgagebroker.wordpress.com (January archives) for more details).

For investors - you can purchase properties in a personal or company name. You can offset rental income to qualify or have multiple people on title to qualify for the purchase. There are some tax saving advantages as well. Talk to your financial planner.

For seniors - if you are over 55 years of age you can defer your property taxes. Check with your local city hall or your financial planner for details. If you need a referral to a good financial planner - let me know and I'd be happy to give you some contacts.

Great Rates!

PRIME lending DOWN to 3.5%
Best variable closed at PRIME + .6% (4.1%)
1-year fixed at 4.00%
2-year fixed at 4.94%
3-year fixed at 4.69%
4-year fixed at 4.69%
5-year fixed at 4.79%
7-year fixed at 6.05%
10-year fixed at 6.10%

Rates subject to change - call today for best rates and rate hold for up to 120 days. Bank of Canada meets again on January 20, 2009.

I hope you find this newsletter informative. If you feel it is of value, please forward to your friends and family. I welcome new subscribers and more ideas for content. By sharing strategies and tips - we can all make the most of our money.

Sincerely,

Pauline Tonkin
Your Trusted Mortgage Specialist
Elder Mortgage - The Mortgage Centre
101-566 Lougheed Highway, Coquitlam, BCV3K 3S3
P: 604 931 4719
C: 604 813 8402
www.mybcmortgage.ca
www.mymortgagebroker.wordpress.com

Pauline's Pick - www.Dubli.com This is a great way to shop online. You have three different options on how you can purchase all kinds of items at great savings. If you want the chance to check it out for free - drop me an email and I'll get you some shopping credits.