Dreyer Group Mortgage Brokers

604-688-6002

When Should You Sell your Vancouver Home? – Ask Bruce Coleman, Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

When Should You Sell your Vancouver Home?

Vancouver Mortgage BrokerAs a Vancouver mortgage broker this is a very common question that many people wonder about. Well, the answer to this question is not as clear cut as it might first seem as not even the seasoned pros completely agree on how to respond to this question.

The answer can actually vary as it is not only dependent on the time of the year but also on the current economic situation and your own particular circumstances.

Although certain times of the year such as spring, early summer and fall are the two most popular time of year, it may not be the best time to do so. The time to sell or buy can also depend on whether you consider the real estate market as either a “buyers” or a “sellers market.”

Most Popular Times of the Year to Buy and Sell a Vancouver Home

Clearly the most popular times of year for both home buyers and sellers is springtime, the early summer months and early fall. Buyers have a lot more homes to view because more homes have the “for sale” signs out front. Sellers have a lot more viewers who come looking.

Either way this does necessarily mean you will sell or buy a home more quickly because both parties may have a lot more competition.

Sellers will have to deal with more “tire kickers.” Buyers may run risk the possibility of losing the dream home that they saw because it was scooped out from under them by another buyer who acted more quickly.

Selling your Home During A Buyers Market

A buyers market would simply mean that practically anytime of the year can be advantageous but there might be certain times of the year that can be better than others.

If you choose either spring or early fall to sell your home in a buyers market, you will be in competition with every other seller who has the same idea as you. Less popular times of the year which are often overlooked by people include the summertime because many people are enjoying their holidays and the warm weather.

Similarly, the Holidays and winter time are also less popular for people to put their home out on the market. If you use this time to put your home up for sale, you might have a lot less viewers, but what you might get are the really motivated buyers who comes to view your home.

Similarly, buyers can more readily find homes that suit their needs and aims more quickly because there are fewer out there for viewing. This allows them to be more selective.

Selling your Home During a Sellers Market

Anytime of the year is tough because it means that economic times may have negatively impacted the job market such as a recession or interest rates are on the rise.

Clearly, a seller is going to see even less viewers on average if they try to sell their home during peak times such as spring and early fall because the seller market would be more competitive.

So, it all boils down to timing. Depending on your needs and objectives, you might get a jump start selling your home if put it for sale earlier such as in January for example.

And, if you are motivated buyer then anytime of year is best, but if you’re fine with dealing with the weather, then don’t wait for the peak times.

 

A clear mortgage policy- Consult with Bruce Coleman, Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Vancouver Mortgage Broker

Since 2008 and the height of the financial crisis, the federal government has been active from a policy perspective in making sure that the housing market does not overheat or enter what some describe as a “bubble.”

The Canadian housing and mortgage markets receive extensive attention by economists, analysts and the media. The purchase of a home after all is the largest financial commitment that an individual will make in his or her lifetime.

Since 2008 and the height of the financial crisis, the federal government has been active from a policy perspective in making sure that the housing market does not overheat or enter what some describe as a “bubble.” It has done this for two reasons. First, interest rates have remained stable, indeed at record lows, for five years. Rising interest rates would in and of themselves moderate housing activity. This variable is absent.

But secondly, the government is concerned about its exposure to the real estate finance system. Or, to be more political, the exposure of the Canadian taxpayer to the housing market. In a way, this does not have anything to do with whether the housing market is up or down or whether resales have hit a record high or a record low. It has to do with the role of the federal government in backing various financial mechanisms that support the mortgage market. It wants to reduce its exposure in the mortgage market and, by extension, to increase the role of the private sector. In the last 12 to 18 months the federal government has:

• Capped CMHC’s mortgage default insurance at $600-billion;

• Excluded the ability of lenders to insure covered bonds;

• Capped the annual allocation for National Housing Act Mortgage Backed Securities at 
$85-billion with rationing implemented;

• Revamped the governance of CMHC by having government Deputy Ministers placed on 
its Board and having the federal financial regulator OSFI oversee its operations.

The government is limiting its exposure and its involvement

Some argue these measures are tied to slowing the housing market. In some ways, that is the by-product. The real result is that the government is limiting its exposure and its involvement — capping its appetite for risk. If the government wanted to slow the housing market it would have also capped the amount of mortgage default insurance that the two private sector competitors to CMHC provide. It did not do that. Instead it increased that amount by $50-billion.

The federal government wants a healthy housing market. While we are all concerned about household debt levels, the government also appreciates the enormous economic impact housing has in terms of jobs and tax revenues. Indeed, new home sales in some markets such as the GTA are at record lows.

The right balance needs to be found. What the government wants is not necessarily to limit the size and scope of the mortgage market. Instead, it wants to have the private sector take on more of a role and share the risk, to expose or utilize its capital first. It is a clear mortgage policy.

Home Series: Selling your Home During a Divorce – Consult with a Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Selling your Home During a Divorce

Vancouver Mortgage BrokerDivorce rates hover around the 50% mark in Canada. Divorce is clearly a very traumatic and intense period for both parties. And, one of the biggest items that might be contested during a divorce is the family home.

Buying a home was likely the most significant investment you both made during those happier times. Likely, you never saw yourself as becoming a divorce statistic, but now there may be nothing you can do about it except go with the flow and deal with it.

The family home is just one of many important issues that have to be resolved during a divorce proceeding especially if you have children.

So, here are a few tips for you consider if this unfortunate situation happens to you.

Keep Your Emotions in Check

One of the biggest things that cause a divorce to spiral out of control is your emotions. If make decisions based on your emotional response then your partner is likely going to respond in kind.

The first and most important consideration of both partners should be to consider the needs of the children. So, the first thing is to establish which partner will end up being the main custodian of the children

Then you will have to consider what to do with the home and decide whether to do one of the following:

Both Partners Agree to Sell the House

You don’t have to agree to sell the house immediately. You can wait for the appropriate time and do so when it’s advantageous for both parties. It might a good idea that you both meet with an agreed upon realtor and explain the situation so you are both kept apprised of any offers. Once the home is sold, you will both hopefully walk away with some equity and can proceed with a fresh start.

You Can Sell Your Portion or Buy Out Your Spouse

Another option is that one of the partners would like to keep the home. Whether it be you or your partner, you can get the home appraised and either sell your portion of joint ownership or purchase the other partner’s portion at current market value. You might want to consult with your lender, broker or financial adviser before you take this route as it is likely that the person who is buying the home will have to reapply for a new mortgage.

Continue with Joint Ownership

If both partners agree then you can continue to maintain joint ownership for an agreed upon period or negotiate some particular clauses where selling the house outright or to one of the parties is done so for your particular needs and requirements. It also makes sense to take this approach should the real estate market end up in a slump and wait until market conditions improve.

Some Other Tips to Consider

  • Just remember that if you continue to make the issue of the home a continuing source of something you are contesting then the only ones who are going to profit are the lawyers and not you. It’s best that you both strive to make a compromise so you and not the divorce lawyers will realize any profit that you make from the sale of the home.
  • Most importantly, remember the needs of your children as they are too are under emotional distress during this time.
  • If emotions too start to spiral out of control then you should both give serious consideration to a “cooling off” period so you can both put things back into proper perspective.

Whatever you do, don’t use your home as part of the divorce battleground because neither one of you will likely win in the end.

 

 

Financial FYI Series: Can retired couple afford holiday home? – Consult with a Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

DIANNE MALEY – Globe and Mail

Vancouver Mortgage BrokerGabe and Gwen dream of leaving their Toronto Beaches home in a couple of years for the pastoral charm, rolling vineyards and white sand beaches of Ontario’s Prince Edward County.

He is 57, she is 61. Together, they earn about $158,000 a year before taxes.

When they retire, Gabe will get a defined benefit pension from his employer of about $31,000 a year. Gwen, who is self-employed, has no pension plan.

Their plan is to buy a recreational property, financing it by borrowing from their registered retirement savings plan. The RRSP would hold the mortgage. Ideally, they will rent the second property out when they are not using it to help cover costs.

“Since we also may want to retire there, we can use the property as a base to explore the area when it is not rented out and possibly move in when we retire, either selling our house in the city or renting it out,” Gabe writes in an e-mail. The Toronto home is valued at $1-million. Their target price for the second home is $350,000.

With retirement nearing, they have a number of questions. Can they afford to retire and buy a second property? Will it be a sound investment? Does it make sense to have their RRSP hold their mortgage rather than borrowing from a bank?

We asked Warren MacKenzie, founder of Weigh House Investor Services in Toronto, to look at Gwen and Gabe’s situation. Weigh House is an independent financial planning firm that does not sell investment products.

What the expert says

Yes, Gabe and Gwen can retire in two years and maintain their current lifestyle, Mr. MacKenzie says. They are spending roughly $45,000 a year, excluding savings. The planner’s forecast also includes mortgage payments on the new property and assumes they earn a rate of return on their investments of inflation plus 2.5 percentage points.

“They will not be leaving a large estate, but that’s okay because that is not their objective,” the planner adds. The couple have three children in their 20s. They can afford the recreational property, but they will have to borrow to finance it. They should plan to sell their Beaches home and downsize to a smaller home by the time they retire.

In the first year of retirement, their living expenses are expected to be $70,000 a year and they will pay about $5,500 in income tax. The source of their cash flow will break down as follows: $31,000 from Gabe’s pension; $20,000 from their RRSPs (Gwen especially would be in a low tax bracket because she has no pension income); and $24,500 from their other savings.

Later, when they are both collecting Canada Pension Plan and Old Age Security benefits – and making mandatory minimum withdrawals from their RRSPs/RRIFs (age 72) – they will have enough to meet their spending goal without having to draw on their other savings, Mr. MacKenzie says. If they still have two properties, they should plan to sell one at some point. This will give them enough to live comfortably to age 100.

There are pros and cons of buying a second property as an investment, Mr. MacKenzie says. If they can rent it out enough to cover expenses and its value increases in line with inflation, the capital gain on its eventual sale will be taxed at a lower rate than other types of income, which is a plus. On the negative side, they already have roughly half of their net worth in real estate.

“It is not a liquid investment and will require financing,” the planner notes. A well-diversified stock portfolio, in contrast, would give them better diversification, liquidity “and probably a slightly higher return,” he says. The recreational property “should be considered a lifestyle choice, not a real investment,” he says.

“Given they feel they would enjoy their retirement more by having a recreational property, I would say they should buy it even if some other investment might earn more.”

He is not so keen on Gabe and Gwen’s plan to invest their RRSP money in their mortgage.

“The idea of making mortgage payments to your own RRSP is always appealing,” he acknowledges. But having your mortgage in your RRSP makes it impossible to cash in your savings in an emergency.

“If there is an illness or a job loss, or if money is needed for any purpose – including taking early RRSP withdrawals – the house may have to be sold to get the money.” The couple may want to invest in easily traded mortgage funds as an alternative.

——-

Client situation

The people

Gabe, 57, and Gwen, 61.

The problem

Figuring out if they can afford to buy a recreational property and if so, whether it makes sense to finance it by holding the mortgage in their RRSP.

The plan

Go ahead and buy the recreational property.

The payoff

The pleasure of having a country residence that they can either rent or move into at some point, and the flexibility of being able to cash in all or part of their RRSPs in an emergency.

Monthly net income

$8,335

Assets

Bank deposits $40,000; his TFSA $31,000; her TFSA $20,000; his RRSP $118,000; her spousal RRSP $305,000; present value of his pension plan $500,000; children’s RESP $48,000; principal residence $1-million. Total: $2.06-million

Monthly disbursements

Property tax $500; maintenance $225; home insurance $100; utilities $350; transportation $620; groceries, clothing $425; charitable $100; vacation, travel $400; personal discretionary (dining, entertainment, clubs, hobbies, pets) $635; life, disability, dental insurance $120; drugstore $50; telecom, TV, Internet $135; RRSPs $700; TFSAs $500; pension plan contributions $950; professional association $115. Total: $5,925

Liabilities

None

Want a free financial facelift? E-mail finfacelift@gmail.com

Some details may be changed to protect the privacy of the persons profiled.

Upgrading your Vancouver Home on a Budget – Consult with Bruce Coleman, Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Upgrading your Vancouver Home on a Budget

Vancouver Mortgage BrokerIf you’re planning to put your Vancouver home on the market then you will want to do everything that you can possibly manage to make the home presentable for viewers.

However, you might not have a lot of money to invest or you might have time to spend on any major home renovation projects.

Depending on the budget and time you can manage, there are actually a lot of things that you can do to spruce up your home before you put it out on the market. And, the best thing is that you can do so without having to spend a big wad of cash.

Here are some tips to upgrade your Vancouver home on an economical budget.

Nothing Beats a Fresh Coat of Paint

A fresh coat is one of the most effective means and an affordable economical investment you can use to make your house more appealing for viewing. This project is for those who are handy and comfortable using a roller and paintbrush. Professional house painters can be a bit pricey so you can save a bundle if you do it yourself.

A paint job should not just be limited to the interior of the home but you should also take a critical look at the exterior of the home. Why? Because when they talk about curb appeal, the first impression that a prospective buyer has of your home is when they first step out their car.

Painting the exterior trim, a wooden door, window frames or adding some fresh stain to wood siding or deck can make a very positive impression and put buyers into the right mindset.

By adding a neutral paint scheme to the interior walls, you get the opportunity to not only brighten the home but also to make your home more of a showcase. Painting gives you the opportunity to cover up any obvious imperfections, scrapes and dints in the walls. It’s a worthwhile investment.

Add New Fixtures

You would be surprised how a few new fixtures can sparkle up a home, especially in the kitchen and bathrooms. You could also start by taking a look at your light fixtures throughout the home. They may be look dated, worn or maybe they simply don’t provide adequate or are too bright for a particular room.

Then, there are the sinks and faucets in your bathroom and kitchen. Have they lost their sparkle, or are they scratched, dull or look tacky? New faucets don’t have to be very expensive but there are some snazzy new gadgets out there that have conservation and other regulatory features built in.

Adding new faucets, replacing the toilet bowl, adding some light fixtures, dimmer switches, or even something as simple as replacing your towel rack can add a whole new dimension and look to key rooms in your home.

Make your Home Clean and Tidy

This might sound too obvious even to bother with but if you don’t put a bit of elbow grease into cleaning and tidying up your home, storing away needless clutter around the home and in your closets, then it can reduce your chance of making a quick sale.

Prospective buyers do not want to see cobwebs, dust bunnies, mould stains, chipped paint or greasy windows. The more you can make your home more of a showcase, both inside and out then the easier it will be to sell it and move on.

Taking care of the little details doesn’t have to be expensive and just by being carefully selective you can easily upgrade your home.

 

 

Bank of Canada’s Poloz upbeat about economic growth – Ask a Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Bank of Canada‘s Poloz upbeat about economic growth

BARRIE MCKENNA AND BRENT JANG-  OTTAWA/VANCOUVER — The Globe and Mail

Vancouver Mortgage Broker

Bank of Canada Governor Stephen Poloz speaks Wednesday, Sept. 18, 2013, in Vancouver. Mr. Poloz told the Vancouver Board of Trade he is not concerned about a potential housing bubble.
(JIMMY JEONG/THE CANADIAN PRESS)

Bank of Canada Governor Stephen Poloz is painting a brighter picture for the Canadian economy while tossing aside concerns over a housing bubble.

Canada is on its “way home” to more natural economic growth as central banks prepare to reverse nearly six years of low-interest rate fuel, he said Wednesday.

“We are now close to the tipping point from improving confidence into expanding capacity,” Mr. Poloz told more than 600 members of the Vancouver Board of Trade in his second public speech since taking over from Mark Carney in June.

Mr. Poloz said the key pieces of a more normal and self-sustaining economy are falling into place.

Most economists don’t expect the Bank of Canada to start raising its key overnight rate – which has held at 1 per cent since September, 2010 – until late 2014 or even 2015.

Mr. Poloz said the central bank will eventually raise its key interest rate as inflation moves back up to the bank’s annual 2-per-cent target. “We can expect that short-term interest rates, as is normal, will be above inflation,” he said.

His only hint on the timing of eventual higher rates came when he said the economy can support much stronger activity “without stoking inflation,” given the slack in the labour market. That suggests the central bank could be on hold for some time.

At a news conference, he said major real estate markets across Canada appear healthy 14 months after Ottawa tightened mortgage borrowing rules in July of 2012. “Our reading of that is that markets have responded to the various changes in the rules around mortgage underwriting in a way which has in effect engineered a soft landing – a much more comfortable kind of situation,” Mr. Poloz said.

Even though mortgage rates have crept up recently, interest rates remain at historically low levels. “If you’re in a position to buy a home, of course chances are that you will. So, what I have been suggesting, though, is that people take care to do the arithmetic,” he said.

Consumers have been mindful of their exposure to potentially higher mortgage payments when it comes time to renew in three to five years, Mr. Poloz said. “I don’t know what those numbers will be, but you want to make sure that you test it a little bit and you know that you’ll be able to be afford the payments at those higher levels,” he added.

Mr. Poloz said Canadians have been taking on more debt amid the climate of low interest rates since the 2008-09 recession, but he forecasts that consumers’ income will grow at a faster rate than their debt over the long term. “I don’t perceive that there is a bubble in Canada’s housing market,” he said.

During his speech, he said he is optimistic that gathering foreign demand – particularly from the United States – will soon boost business confidence and prompt companies to expand and invest.

He pointed out, for example, that an unusual post-recession dearth of new company formations appears to be ending. After four years of stagnation, 40,000 new companies with at least one employee were created in the past 12 months in Canada, helping to replace the ones destroyed in the recession, he said.

Mr. Poloz also talked about the “tapering” process in which the U.S. Federal Reserve will, at some point, ease the pace at which additional stimulus is provided to the American economy. It decided against such a move Wednesday.

He likened the financial crisis to “a pot of simmering spaghetti sauce,” where injections of easy money in the economy have created a bubble, but also a large crater. “Central banks have been filling that crater with liquidity,” he said. “Central banks can gradually reduce the rate at which they add liquidity. That’s not policy tightening. Rather, it’s another welcome sign that things are getting back to natural growth. And it indicates that the underlying momentum of the U.S. economy is expected to hold.”

Bank of Canada’s Poloz upbeat about economic growth – Ask a Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

Financial FYI Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Bank of Canada‘s Poloz upbeat about economic growth

BARRIE MCKENNA AND BRENT JANG-  OTTAWA/VANCOUVER — The Globe and Mail

Vancouver Mortgage Broker

Bank of Canada Governor Stephen Poloz speaks Wednesday, Sept. 18, 2013, in Vancouver. Mr. Poloz told the Vancouver Board of Trade he is not concerned about a potential housing bubble.
(JIMMY JEONG/THE CANADIAN PRESS)

Bank of Canada Governor Stephen Poloz is painting a brighter picture for the Canadian economy while tossing aside concerns over a housing bubble.

Canada is on its “way home” to more natural economic growth as central banks prepare to reverse nearly six years of low-interest rate fuel, he said Wednesday.

“We are now close to the tipping point from improving confidence into expanding capacity,” Mr. Poloz told more than 600 members of the Vancouver Board of Trade in his second public speech since taking over from Mark Carney in June.

Mr. Poloz said the key pieces of a more normal and self-sustaining economy are falling into place.

Most economists don’t expect the Bank of Canada to start raising its key overnight rate – which has held at 1 per cent since September, 2010 – until late 2014 or even 2015.

Mr. Poloz said the central bank will eventually raise its key interest rate as inflation moves back up to the bank’s annual 2-per-cent target. “We can expect that short-term interest rates, as is normal, will be above inflation,” he said.

His only hint on the timing of eventual higher rates came when he said the economy can support much stronger activity “without stoking inflation,” given the slack in the labour market. That suggests the central bank could be on hold for some time.

At a news conference, he said major real estate markets across Canada appear healthy 14 months after Ottawa tightened mortgage borrowing rules in July of 2012. “Our reading of that is that markets have responded to the various changes in the rules around mortgage underwriting in a way which has in effect engineered a soft landing – a much more comfortable kind of situation,” Mr. Poloz said.

Even though mortgage rates have crept up recently, interest rates remain at historically low levels. “If you’re in a position to buy a home, of course chances are that you will. So, what I have been suggesting, though, is that people take care to do the arithmetic,” he said.

Consumers have been mindful of their exposure to potentially higher mortgage payments when it comes time to renew in three to five years, Mr. Poloz said. “I don’t know what those numbers will be, but you want to make sure that you test it a little bit and you know that you’ll be able to be afford the payments at those higher levels,” he added.

Mr. Poloz said Canadians have been taking on more debt amid the climate of low interest rates since the 2008-09 recession, but he forecasts that consumers’ income will grow at a faster rate than their debt over the long term. “I don’t perceive that there is a bubble in Canada’s housing market,” he said.

During his speech, he said he is optimistic that gathering foreign demand – particularly from the United States – will soon boost business confidence and prompt companies to expand and invest.

He pointed out, for example, that an unusual post-recession dearth of new company formations appears to be ending. After four years of stagnation, 40,000 new companies with at least one employee were created in the past 12 months in Canada, helping to replace the ones destroyed in the recession, he said.

Mr. Poloz also talked about the “tapering” process in which the U.S. Federal Reserve will, at some point, ease the pace at which additional stimulus is provided to the American economy. It decided against such a move Wednesday.

He likened the financial crisis to “a pot of simmering spaghetti sauce,” where injections of easy money in the economy have created a bubble, but also a large crater. “Central banks have been filling that crater with liquidity,” he said. “Central banks can gradually reduce the rate at which they add liquidity. That’s not policy tightening. Rather, it’s another welcome sign that things are getting back to natural growth. And it indicates that the underlying momentum of the U.S. economy is expected to hold.”

Preparing for Moving Day – Consult with a Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

Preparing for Moving Day

Vancouver Mortgage BrokerWhether you just sold your home or are preparing to move into a new abode that you have just recently bought, you want to make your move as seamlessly as possible. There is nothing more frustrating when you need to get your hands on something important and you don’t know which box you put it into.

Getting organized and prepared beforehand can save you a lot of hassle if you simply follow these few simple tips to make moving day run like clockwork and avoid needless aggravation. The last thing you need to do is have a scavenger hunt to find the electric can opener so you can make supper.

Make up a Bunch of Blank Lists

It’s easy to make up a bunch of blank list beforehand before and all you need is your trusty laptop and printer to set them up beforehand. How you set up your labelling is entirely up to you but you can pinpoint what’s going into each box and by room. All you need to do is set up two or more rows and a page full of columns.

Don’t have a computer? No problem, just go out and buy a cheap notebook with a spiral binding where you can easily tear out the pages.

When you get your moving boxes or cartons you will want to tape your list to each box. Of course, you don’t necessarily have to go overboard and get too detailed. If you’re loading up your CD’s in one box then all you have to is use a generic title. The same goes with your general reading material.

However, if you have important home office discs then you want to maybe keep them separate so you can easily access them.

If you want to be able to set-up your new abode efficiently then by listing each item onto the list then you know exactly what’s in each box and where to find to find miscellaneous items to help you get set-up more quickly.

You especially will want to know where you are have packed vital tools such as screwdrivers, baby supplies, pet food, flashlights, bedding because most people don’t manage to simply unpack everything the same day they move.

 More Packing Material is Better

No matter how much packing material that you estimate you need, always buy or ask the moving company for more because it’s better to be slightly over supplied then have to run around at the last minute to get additional supplies.

You will also need proper material such as bubble wrap for some of your valuables and breakable. Although many people still like to use newspapers and flyers, the ink can stain and isn’t as protective. And, don’t forget to buy lots of packing tape to secure those boxes, especially the heavier ones.

If your moving company is supplying the material then you can always get a rebate on any cartons or boxes or other materials you don’t use.

For your clothes, you can also buy or request that the moving company supply you with wardroom boxes. These wardroom boxes are ideal for all your clothes which you can leave hanging and don’t have to worry about them becoming wrinkled. These boxes are going to be heavy enough so don’t cheat and try to cram other things in there because you’ll make them too heavy.

Keep Important Papers and Valuables Separate

You especially want to keep your important valuables and vital personal and financial papers separate especially if you are using a moving company. They should come with you in your own personal vehicle if at all possible because boxes sometimes do go awry when you use a mover. You want to keep tabs of anything valuable and ensure that you have proper insurance on these valuable items.

You may require a separate insurance rider or it might be covered in the homeowner’s policy. Either way – read the policy or contact your insurance broker before the move takes place.

 

How you helped Canada’s big banks weather the financial crisis- Ask Bruce Coleman, Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

ROB CARRICK– The Globe and Mail

Vancouver Mortgage Broker

When financial institutions needed revenue and profit, they simply had their clients supply it.
(Fuse/thinkstock)

The little-discussed safety net that helped the big banks through the financial crisis was their complete, masters-of-the-world dominance over the day-to-day financial affairs of almost all Canadians.

When the banks need revenue and profits, they simply have their clients supply it. And so they did in 2007, as the crisis began to take shape, and for years afterward.

Let us recount the ways, starting with the repricing of variable-rate mortgages. Before the crisis, these mortgages were available at your lender’s prime rate minus a discount as large as 0.9 of a percentage point. At the height of the crisis, variable-rate mortgages were being sold with a markup over prime of one to 1.5 of a percentage point. Since then, the discount has gradually returned and is now at roughly 0.4 off prime.

A case can be made that fixed-rate mortgages would also be lower if precrisis pricing was used. Data from Canada Mortgage and Housing Corp. shows that in the 7.5 years prior to the crisis, posted five-year fixed-rate mortgages were priced at 2.44 percentage points on average above the yield on the five-year Government of Canada bond. Today, the gap is around 3.2 points, down a bit from peak levels but still higher than it was.

Discounted mortgages are also more expensive than they might have been, precrisis. They used to be sold at roughly one percentage point above the five-year Canada bond; today, the gap is more like 1.6 points for a well-discounted mortgage.

The home-equity line of credit is one more example of higher costs as a result of the crisis. HELOCs, as they’re called in the banking world, used to be available at prime. Today, the rate for these widely used borrowing tools is prime plus 0.5 to prime plus one. Rates on unsecured credit lines – where you don’t pledge your house as security – have also risen.

Banks made the argument that the crisis forced them to pay higher rates to raise funds for lending to clients, and that this cost had to be reflected in higher borrowing costs. Haven’t things calmed down by now?

To some extent, yes. But mortgage planner David Larock said banks have come under tighter regulations in the past few years that continue to play a role in higher lending costs. Customers have still come out ahead, he argues. “The [interest rate] discount we’ve enjoyed because of the crisis has far outweighed the marginally increased costs that lenders have for the most part passed on to consumers.”

The crisis was a stressful time for the banks, and they took it out on their customers in a variety of ways. One bank had the bright idea, just as a recession was asserting itself, to charge people a $35 inactivity fee if they left their unsecured credit line unused over a 12-month period. The fee was later cancelled after some embarrassing publicity.

Another gift of the crisis was one bank’s decision to bump up its credit card interest rate by five percentage points if a customer missed two consecutive minimum payments.

Even today, the banks continue to get tough with customers about borrowing. Some have started to adjust the interest rates on credit cards and other lending products according to a customer’s credit record. People who pay on time see no change, or a token rate cut. Those struggling with debt get loaded down with higher interest rates.

Not all changes in the banking business have been negative. In an effort to create pools of money they can profitably lend out, the banks have embraced the high-interest savings account. Thanks to competition between banks, interest rates in these accounts are in the low 1-per-cent range. That’s tiny by historical standards, but decent when compared to one-year term deposits and bond yields.

The consulting firm McVay and Associates says that savings deposit rates are 75 per cent higher than they were five years ago, with much of the cash coming out of money market mutual funds. Even after recent fee cuts, money market funds are only producing returns around 0.5 per cent.

Financially, Canada’s banks are in strong shape right now. Profits are rich, shares have been rising in price and dividends are being cranked higher on a regular basis. Take a moment to admire the turnaround. You helped pay for it.

For more personal finance coverage, follow Rob Carrick on Twitter (@rcarrick) and Facebook (robcarrickfinance).

How Your Credit Score Affects Your Vancouver Mortgage – Ask Bruce Coleman, Vancouver Mortgage Broker

Canadian Mortgage News

CMI 101 Series

Dreyer Group 101 Series

First Time Buyers

Home Buying 101

Home Insurance

Latest News

Mortgage Rates

Refinancing

Self Employed

How Your Credit Score Affects Your Vancouver Mortgage  

Vancouver Mortgage BrokerOne of the key factors used by Vancouver mortgage lenders in determining whether you will qualify for a mortgage is your credit score. Your credit score may also impact the terms of your mortgage and your interest rates.

A Vancouver home mortgage is probably without a doubt one of the largest investments the average person will make in their lifetime. A mortgage is also considered a large loan by any lender.

Why is a Credit Score So Important?

A mortgage lender wants to learn as much as possible about your character. They want to know about your credit history because it tells them whether you are a responsible person who pays your debts and how well you pay them.

The lender is assuming a risk for any mortgage they issue so they would naturally want to minimize that risk as much as possible.

Your credit score is a reflection of all the debts that you have assumed and tells the lender about how responsibly you pay back your debts. A low credit score suggests you are irresponsible when it come to paying your debts which makes them very averse to taking you on as a potential client for a mortgage loan.

How your Credit Score Is Determined

The credit rating agencies are supplied information by lenders such as banks, credit unions, credit card agencies, department stores and others which detail the credit you have assumed and how well you re-pay it.

A credit report will consist of two parts. The first part of a credit report will outline the following information:

  • Your payment history
  • The overall amount of credit you currently owe
  • How often you use credit or credit usage
  • Your credit experience
  • Whether you have acquired any new credit
  • Types of the credit which you have established

The second part provides what is known as an “R” rating where you are given an overall rating ranging from R1 to R9. An R1 rating is the best possible rating and means that you have been paying all your required payments within 30 days. Naturally, an R9 rating is the worst possible rating that can be attached to your credit report.

The two main credit reporting in agencies are Equifax Canada and TransUnion Canada. Both of these credit reporting agencies will charge a fee for your credit report of roughly around $25.00

What Constitutes a Good Credit Score for a Mortgage?

The minimal credit score required by a mortgage lender varies slightly from lender to lender. The average minimal credit scores required by a mortgage lender generally range from between 620 to 680. Most lenders consider any score above the 700 range as being an excellent risk for a mortgage loan.

A low credit score can result in your application being rejected or having more restrictive terms or higher interest rate being charged. You may be required to get a co-signer or have other conditions applied.

In this day and age of identity theft which has become all too common place it’s a good idea to get hold of your credit report before you apply for a mortgage. Credit rating agencies also do make mistakes so if you find your credit score significantly lowered because of either of these issues you need to take prompt and appropriate steps to correct and rectify the problem before you apply for a mortgage.

SEO Powered By SEOPressor