Good day all,
On behalf of Patricia Giankas of Score-Up and Anne Brill of CENTUM Metrocapp Wealth Solutions, we would like to thank all of you who attended our second annual holiday party held at Canyon Creek Chophouse last evening.
We hope you enjoyed the evening as much as we did and sincerely thank you for your support, especially during this busy holiday season.
We hope to continue building a good working relationship with all of you in the coming year.
May Peace, Happiness and Prosperity be yours during this Holiday Season and throughout the New Year.
For those who were unable to attend, we hope to see you at the next social event!
Feel free to check out a few of the photos taken!
Friday, December 6, 2013
Wednesday, November 6, 2013
CAAMP Statistics!
CAAMP Statistics
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Tuesday, October 15, 2013
Here is a good article on RESP mistakes...read it at http://business.financialpost.com/2013/10/11/five-resp-mistakes-that-parents-make/
Tuesday, September 10, 2013
Friday, July 19, 2013
Canadians losing Money on their mortgages.
Canadians Losing Money on their Mortgages
For most Canadians when shopping for
a mortgage the simple solution is to walk through the doors of your
local bank or credit union branch. It seems to be that old saying
"better the devil you know" is true. We believe that the bank, trust
company or credit union that we have been dealing with for years is the
best place to be.In fact in 2012 a whopping 72% of people did just that when they were looking for a mortgage. The result?
Canadians lost over 41 Million Dollars by simply not shopping around for the best mortgage product for their needs.
As consumers people typically believe that if they get the lowest rate they will save the most money, and that is largely true, but you will notice that we did not mention rate in the above statement. Why? Well contrary to what most people might believe, rate is not the single all important item to consider when looking at getting financing for your home. Things like term, prepayment options, amortization, and payment schedule (to name just a few things) can have a dramatic impact on the true cost of the mortgage you are obtaining.
Canadians are very web savvy consumers when it come to getting a mortgage, in fact 2 in 3 of us will research our mortgage online before we make a decision. What is not talked about typically is what we are researching and there are two very key items, rate and mortgage calculators.
Rate is pretty self explanatory - we want to find the lowest possible. Mortgage calculators help us to figure out what we qualify for, what our payment will be, etc. What we do not do is research what different product options are available, and how those options can impact us - for good or bad. If you try to find that information you soon discover that it is not so easy, and when you do find some it is very complicated to understand. It is because of the complexity of mortgages that the majority of people simply put their faith in the banks and are resigned to the fact that taking 25 years and at the end paying almost twice the value of the home is normal.
Mortgage brokers offer Canadians a solution to the stress of shopping around, and they typically do it at no charge. Their role is to do the work for you and find the right mortgage to suit your financial and home ownership goals.
At CENTUM we believe that all Canadians should have the opportunity to achieve their financial goals and dreams. It why we do not just offer mortgages, rather we offer Home Ownership Solutions.
If you want to discover how you can stop losing money on your mortgage, contact a CENTUM mortgage professional today.
Posted by CENTUM Canada on July 18, 2013
http://www.centum.ca/Blog/Canadians_Losing_Money_on_their_Mortgages
When should you refinance your mortgage?
When should you refinance your mortgage loan?
Refinancing
a mortgage at a lower interest rate isn't always the right decision.
Having bragging
rights at the neighborhood picnic isn't a reason for refinancing a
mortgage. Instead, it's good to put some thought behind the timing of
your decision.
Refinancing a mortgage multiple times can reduce your overall financial benefit. Refinancing junkies
who always migrate to the next low mortgage rate pay a hefty price by leaving a trail of closing costs in their wake.
In some cases, refinancing a mortgage makes sense. In other cases, it may be more prudent to stick
with your current loan.
What's your goal?
Before
deciding whether to refinance, you need to determine what you want to
accomplish. Remember,
refinancing a mortgage doesn't pay off the debt; it just restructures
it, often at a lower interest rate and a different loan term than the
current mortgage.
- Reducing the interest expense is the most common goal of a refinance. But some homeowners also appreciate the ability to extend the loan back out to 30 years, reducing the monthly payment.
- Debt consolidation is another goal of refinancing. If you have both a first mortgage and a home equity loan, combining the two mortgages into one fixed-rate mortgage levels out the payment over the loan term.
Refinancing tip: Do it once
Ideally,
you only want to refinance once on your current mortgage. While no one
can tell you with
certainty where interest rates are going, Bankrate's weekly Rate Trend
Index and Mortgage Analysis will keep your finger on the pulse of where
interest rates are headed. You can have them delivered as a weekly
e-mail so you don't have to remember to look for
the columns.
Many
homeowners refinance because they want to get out of (or into) an
adjustable-rate mortgage.
In high interest rate environments, homeowners are attracted to ARMs
because they typically are at a much lower interest rate than a 30-year
fixed-rate mortgage.
On the other hand, in low interest rate environments, the differential between the fixed-rate and
the ARM isn't as great, and homeowners like the security of locking in a fixed rate over the mortgage term.
When to refinance
After clarifying your reasons for refinancing a mortgage, you need to consider whether the timing
and circumstances make this the right time to get a new loan.
Usually,
you have to plan to be in the house for a while for refinancing to make
sense. According
to Bankrate's 2012 closing cost survey, the national average for
closing costs on a $200,000 loan was $3,754. The fees in the survey
don't include taxes, insurance or prepaid items such as prorated
interest or homeowner association dues.
When weighing whether to refinance, homeowners typically are urged to consider how many months
of lower payments it will take to recoup the closing costs of the new mortgage.
Refinancing tip: Know where you stand
Before
you refinance, know where you stand with your current mortgage --
including the loan terms and interest rate, as well as relevant factors
such as your
credit score and whether or not the loan has a prepayment penalty.
For
example, if your monthly payment goes down by $157, it would take 24
months of lower payments
to recoup the average closing costs. Bankrate's refinancing calculator
lets you input your costs and the loan terms to calculate the months it
will take to recoup your costs.
Refinancing costs
$157 lower monthly payment x 24 months = $3,700+ closing costs
While
this is not a bad rule of thumb, it doesn't really measure your
savings. Savings come from
a lower interest expense, not lower monthly mortgage payments.
Bankrate's refinancing calculator shows the change in total interest
expense, too.
You'll
see that if you get a lower interest rate but extend the mortgage term,
you can wind up
spending more in interest. For example, replacing a mortgage that has
20 years remaining with a 30-year mortgage will result in higher
interest expense over the life of the new loan.
To
figure out whether refinancing with a loan term extension will help you
save, do two calculations:
one where the new loan has the same term as the old loan, and one where
the new loan is the length of your planned refinance. Compare the
interest savings to see if refinancing accomplishes your financial goal.
Some
people refinance simply to make the monthly mortgage payment more
affordable. A lower interest
rate and/or a longer loan term both work toward lowering the monthly
payment. As long as the homeowners understand they may not be minimizing
total interest expense, affordability can be a motivation for extending
the loan term.
While
short-term savings are important, they are not the only factor to weigh
when considering
a refinance. Refinancing to get out of an ARM, piggyback mortgage,
interest-only mortgage or other onerous mortgage provisions may be
reason enough to take on a refinancing.
However, in some cases, homeowners with ARMs would be fine sticking with their loan, especially
if they don't plan on being in the loan long term and the reset rate on their mortgage isn't financially threatening.
When not to refinance
On the other hand, a little number crunching may indicate that refinancing a mortgage is not right
for you at this time.
If
you don't plan to be in the house for very long, you should probably
stay in your current mortgage.
Here, the number of months it takes to recoup closing costs becomes the
more important calculation done by the refinancing calculator.
Refinancing tip: Consider a mortgage broker
A
mortgage broker is truly needed if you have a "story loan" -- in other
words, you have to sell your story to the lender in order to get
approved for the
loan.
If
you owe more on the house than it's currently worth -- you're
underwater, in the lingo of the
mortgage business -- you might be able to refinance under the Home
Affordable Refinance Program, or HARP. This refi program is for
homeowners who are current on their mortgages.
Type of refinancing
The two major types of refinances are cash-out refinancing and standard "plain vanilla" refinancing,
where you are just refinancing the existing mortgage balance.
In a cash-out refinancing, you take out a new mortgage on the same property in which the amount
borrowed is greater than the amount of the previous mortgage. The difference is taken out in cash.
A
cash-out refinance will typically have a slightly higher interest rate
than a plain vanilla refinancing
because the lender has more money at risk. Cash-out refinances often
are used to pay down debt, but this type of mortgage has both pros and
cons.
For example, imagine that you use a cash-out refinance to pay off credit card debt. On the pro
side, you're reducing the interest rate on the credit card debt and freeing up lines of credit on your credit cards.
On
the con side, you may pay thousands more in interest expense because
you're taking 30 years
to pay off the balance you transferred from your credit card to your
mortgage. You also run the risk of running the balances back up on your
credit cards and not being able to make the payments.
Refinancing tip: Tidy up credit
Getting
your credit history and credit score in the best possible shape will
help you get a better mortgage rate. Review your credit reports and get
copies
of your credit scores as well. You're entitled to at least one free
credit report each year from the credit bureaus, but you'll have to pay
to get a copy of your credit scores.
However,
the biggest risk in this scenario is in converting an unsecured debt
into a secured debt.
If you can't afford your credit card payments, you get nasty calls from
debt collectors, a black mark on your credit report and a lower credit
score.
Miss a few mortgage payments and you can lose your home to foreclosure.
On the other hand, a plain vanilla refinancing is intended to replace your existing mortgage with
a new one at a lower rate. There's no cash out, unless it's to cover closing costs.
One
advantage of a plain-vanilla refinancing is that it usually offers a
slightly lower interest
rate than a cash-out refinancing. Another major plus of this type of
refinancing is that you aren't significantly increasing your outstanding
mortgage debt.
That said, cash-out refinancing a mortgage can be more appropriate to accomplishing certain goals,
such as paying off debt.
Managing costs
While a refinance can help you harvest more cash, it's important to watch out for costs that eat
into those savings.
First,
recognize that there's no such thing as a free lunch, and there's no
such thing as a "no
closing cost" mortgage. The originating lender will get paid for its
efforts; it's just a matter of how they get paid. Closing costs can be
paid in origination points, a higher interest rate or a higher loan
amount.
Points
come in two flavors, discount and origination. Discount points allow
the borrower to prepay
interest expense upfront and buy down the nominal or stated rate on the
mortgage loan. The points paid are, however, considered in calculating
the annual percentage rate, or APR, on the loan.
Don't
forget about other expenses, such as private mortgage insurance. If
your loan-to-value ratio
is more than 80 percent of the appraised value of the home, the first
mortgage lender will want you to pay for PMI. That adds to the cost of
the refinancing.
Keep in mind that avoiding junk fees can keep down your closing costs and improve the return when
refinancing a mortgage.
Interest Rate Outlook for the Future
The Rate Outlook Changes Little With Poloz & Co.
Stephen Poloz’s first interest rate meeting as
Bank of Canada governor is now in the books. The result: The Bank left the country’s
core lending rate at 1%, which means
prime rate will stick at 3%.
What the market really wanted to know, however, was what Poloz would say about the BoC’s rate hike
bias.
As it turns out, there now appears to be slightly less urgency to raise rates down the road. The
Bank’s key
message was:
“Over time, as the normalization of…conditions unfold, a gradual normalization of policy interest
rates can also be expected, consistent with achieving the 2% inflation target.”
(“Normalization” of conditions refers to inflation back above 2% and growth back to potential, says Action Economics.)
(“Normalization” of conditions refers to inflation back above 2% and growth back to potential, says Action Economics.)
The Bank added:
- “Total CPI inflation has [partly] been restrained by declining mortgage interest costs.” (But this factor will be reversed somewhat due to the recent jump in rates.)
-
“…Both core and total CPI inflation are expected to return to 2% around mid-2015.” (Rate increases will likely be moderate so long as inflation stays near or below 2%.)
[Comments in italics are CMT’s.]
Prior to today’s meeting, the market expected 1/4 point of rate
tightening by September 2014. Today’s announcement may push that back a bit.
The
5-year bond yield, which guides fixed mortgage rates, moved very little after the Bank’s announcement. It was at
1.66% at the time of publication.
The next
BoC
rate meeting is seven weeks away on September 4, 2013. That meeting will mark three years since the BoC last lifted rates.
Rob McLister, CMT
Monday, July 15, 2013
Mortgage Tips: Purchasing and covering your payments
http://www.bestgtarealestatedeal.com/Mortgage-Tips-copy
The single most important factor in any mortgage is the amount of down payment. In Canada any buyer who cannot pay a minimum of 20% of the value of the residential property in cash on closing requires Canada Mortgage and Housing (CMHC) insurance program, although GE Mortgage Insurance is also acceptable. These companies charge a premium based on the amount of money you are able to place as a down payment. The premiums vary, but the less that you are able to place as a down payment, the more the premium will be. The premiums are also higher for self-employed individuals. Naturally the best way to avoid these premiums is to avoid having to get mortgage insurance in the first place, but many families are simply not able to save a total of 20% when they buy a home. No matter what your financing situation, you should always consult a professional financial advisor prior to making any home mortgage decisions.
There are endless types of variable rate mortgages and they should all be approached with a level of caution. Most variable rate mortgages fluctuate in harmony with the prime lending rate. At a time of very low interest rates like right now, variable rate mortgages can be very advantageous. Although most financial experts believe that these rates will stay low for the foreseeable future, there have been times in the past when they have spiked way up. The prime rate is now about 2% but it was over 20% in 1980!
Adding an amount to a monthly mortgage payment can lead to disproportionate savings over the longterm. Selecting a mortgage which is set up to provide you "privilege payments" of 15%, for example, will allow you to pay off up to $15,000 per $100,000 of mortgage each year.
Many homeowners still pay monthly as they are not aware of the advantages of paying on a weekly or bi-weekly basis. Just changing the frequency of your payments while essentially not changing the total amount you pay every month at all, can shorten your mortgage by up to four years.
Nothing will damage your credit rating and put your home in jeopardy more than making payments late or skipping them altogether. Experts agree that you should always have three months of mortgage payments in your savings for unexpected emergencies. If you are unable to make a payment the worst thing you can do is avoid contact with your lender. Take the initiative to discuss your financial situation with your lending institution and in many cases arrangements can be made to safeguard your property from foreclosure.
Mortgage Tips
Since no two mortgages are exactly the same, there are a virtually endless number of variables which can significantly affect the overall cost of your mortgage. A very tiny change in one variable can save you tens of thousands of dollars on the total cost of your mortgage loan and allow you to own your house outright years earlier.The single most important factor in any mortgage is the amount of down payment. In Canada any buyer who cannot pay a minimum of 20% of the value of the residential property in cash on closing requires Canada Mortgage and Housing (CMHC) insurance program, although GE Mortgage Insurance is also acceptable. These companies charge a premium based on the amount of money you are able to place as a down payment. The premiums vary, but the less that you are able to place as a down payment, the more the premium will be. The premiums are also higher for self-employed individuals. Naturally the best way to avoid these premiums is to avoid having to get mortgage insurance in the first place, but many families are simply not able to save a total of 20% when they buy a home. No matter what your financing situation, you should always consult a professional financial advisor prior to making any home mortgage decisions.
There are endless types of variable rate mortgages and they should all be approached with a level of caution. Most variable rate mortgages fluctuate in harmony with the prime lending rate. At a time of very low interest rates like right now, variable rate mortgages can be very advantageous. Although most financial experts believe that these rates will stay low for the foreseeable future, there have been times in the past when they have spiked way up. The prime rate is now about 2% but it was over 20% in 1980!
Adding an amount to a monthly mortgage payment can lead to disproportionate savings over the longterm. Selecting a mortgage which is set up to provide you "privilege payments" of 15%, for example, will allow you to pay off up to $15,000 per $100,000 of mortgage each year.
Many homeowners still pay monthly as they are not aware of the advantages of paying on a weekly or bi-weekly basis. Just changing the frequency of your payments while essentially not changing the total amount you pay every month at all, can shorten your mortgage by up to four years.
Nothing will damage your credit rating and put your home in jeopardy more than making payments late or skipping them altogether. Experts agree that you should always have three months of mortgage payments in your savings for unexpected emergencies. If you are unable to make a payment the worst thing you can do is avoid contact with your lender. Take the initiative to discuss your financial situation with your lending institution and in many cases arrangements can be made to safeguard your property from foreclosure.
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