Welcome to My Mortgage Broker
Greetings!
As an independent mortgage professional I help my clients to establish a plan of action to help achieve their financial and life goals.
In this issue we will focus on protecting your assets with insurance and tax planning for 2012.
Feel free to email or call me with any questions and PLEASE PASS ON THIS INFORMATION to anyone you know that could benefit - sharing is a good thing.
I am one of the presenters at:
Strategies to Buy Real Estate In Canada Date: Thursday, Nov 3, 2011
Time: 6:45 Registration
7:00 - 9:30 pm
Where: REMAX Crest Realty Westside 1428 W. 7th Ave.Vancouver,
Cost: FREE - Sponsored by the Bridgemakers Group To register - www.meetup.com/canadianrealestate/events/38695612/
or contact me at 604 813 8402
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If you find this content informative and wish to share it - simply click the button above and forward to your family, friends or colleagues. If they enjoy it they are welcome to sign up for future issues. Thank you.
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What factors impact fixed interest rates?
In past issues of my newsletter I have mentioned fixed rates do not move according to the Bank of Canada rate but rather the bond yield. This is true but there are more factors at play for some lenders. This is why we see some banks and lenders shift rates in different directions. Over the past year we have seen low rates but the spread in fixed rates between lenders has varied by as much as .5%.
One of the major factors lenders use to determine interest rates is the liquidity premium. This is important depending on where lenders access their funds to lend to borrowers. This is a premium that investors will demand when any given security cannot be easily converted into cash, and converted at the fair market value. When the liquidity premium is high, then the asset is said to be illiquid, which will cause prices to fall, and interest rates to rise.
Typically we watch the bond yield to see if rates will move up or down. Right now they are stable. However, there is talk the rates will shift upwards as investors respond to the liquidity in the market. That is not something we as consumers can evaluate. However, you can be sure the financial lending groups watch it very carefully and adjust interest rates. So even though we feel rates will remain stable for some time - there may be some ups and downs along the way.
As always I recommend my clients not only focus on interest rate when making a decision on their mortgage. To consider all aspects of mortgage planning and to get an update on rates please feel free to call me at 604 813 8402 or email me at pauline@mybcmortgage.ca.
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Protecting Your Income
Insurance for Business Owners
Courtesy of: Margaret Reynolds, Life & Health Insurance Advisor, Desjardins Financial Security Independent Network.
Cell: 778-986-9186 Margaret.reynolds@dfsin.ca
Paul is 38 years old, owns his own business and nets $60,000 a year. What Paul doesn't know is he is about to fall, seriously injure his neck and put himself out of business...... it will cost him over $2.4 million.
Paul, like many of us completely took for granted his ability to generate an income when clearly it was one of his most valuable assets.
Why did this happen to Paul?
He had Job A; with Job A you keep 100% of your net income as long as you are healthy and can work.
But, you receive 0% if you are off work due to illness or injury.
What Paul needed was Job B; with Job B you keep approx 95% of your net income as long as you are healthy and can work.
But, you will continue to receive an income if you are off work due to illness or injury.
Get job B!!
There are a range of income protection products available, from basic injury only to fully featured sickness & accident plans. Talk to a professional and find the one that works for your needs. It will be one of the most important decisions you will make for you and your family.
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Three Tax Efficient Strategies: Deduct, Divide, and Defer
Courtesy of: David Perkins Tel 604.889.6497 perkinsfinancialplanning.com/blog/
First of a 3 part series - refer to my December and January issue.
When planning for retirement we are always looking for tax efficient strategies to reduce the amount of income paid. One of the easiest ways to create more wealth is to reduce the taxes that you pay; the savings then can be invested for retirement. If you want to reduce your income taxes, concentrate your efforts on three strategies: Deduct, Divide and Defer.
Tax Strategy #1: Deduct
Let's start with the easiest tax efficient strategy which is Deduct. Deductions are relatively simple to understand, if you claim a deduction on your income tax return, it will reduce your taxable income and reduce the taxes owed on your return. The most common forms of deductions are for things like business expenses, RRSP contributions and interest deductions on investment related loans. If you can generate a
$10,000 deduction, and you had taxable income of $70,000 before the deduction, you will save about $3,000 in taxes. The unfortunate part of deductions is that you generally need to spend the money in order to take a deduction.
The most efficient tax strategy for deductions is to focus on areas where you are already spending the money and where you are not entitled to a deduction within your current financial picture. Then you need to restructure your finances to increase your allowable deductions and make business decisions that enable you to reduce income taxes in future years.
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Lender Profile
Street Capital Financial Corporation is a Canadian wholesale lending company. As a wholesale lender, Street Capital doesn't have an expensive branch network and as such can pass those savings to the consumer. Street Capital prides itself on offering consumers competitive products and interest rates with an exceptional level of service. Having approved lender status with Canada Mortgage and Housing Corporation (CMHC) Street Capital is able to offer a broad spectrum of residential mortgage financing products to the consumer.
I enjoy working this lender as we have dedicated underwriting, preferred status rates and we can secure 120 day rates holds.
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Bank of Canada
BOC meets and no change to overnight lending rate. Banks maintain Prime - at 3.00%.
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Bond Yields - Fixed rates stabilize.
5-year fixed rates are effected in part by the bond yield. This happens because of the gap between the bond yield and fixed rates.
Canadian 5 yr bond yields markets -.06bps to 1.98. Fixed rates at 3.59% in
the comfort zone.
Best fixed rates (below 3.5%) available.
If you are in the market to buy or refinance and need a rate hold - till end of February 2012 - give me a call at 604 813 8402.
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My Money Coach
Check out this excellent resource for money saving and budget tips.
www.mymoneycoach.ca |
Non-Residents and US Residents Buying in Canada I work with people who are in various stages of becoming a resident of Canada. I also work with people who are non-residents wishing to own real estate in Canada whether for their family members or for rental. For those living in the USA who want to buy a second home I can help them too. Each lender will have different requirements for credit worthiness, net worth and down payment. The more down payment the leaner the other requirements as this is equity based lending. For more details - give me a call anytime. |
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