Kroemer Mortgages @ Comox Valley BC on Vancouver Island

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Wednesday, October 24, 2012

Who Really Manages Household Debt?

Men and women have different opinions, suggests Manulife Bank survey.

According to Manulife Bank of Canada's recent debt survey, just over half of women (54 per cent) but only 39 per cent of men in two-adult households indicate that responsibility is equally shared when it comes to managing household debt.

In cases where respondents don't feel responsibility is equally shared, both men and women are far more likely to indicate that the responsibility lies with them rather than with their partner. Slightly over half (56 per cent) of men and a third of women (36 per cent) state that household debt is managed by "mostly me" or "only me." Conversely, only 10 per cent of women and four per cent of men indicate that household debt is managed by "mostly my partner" or "only my partner." Interestingly, virtually no men indicate debt is managed by "only my partner."

Differing perceptions about who is responsible for debt-management within the relationship could reflect a lack of communication, making it difficult for homeowners to become debt-free. "The good news is that, in general, most people feel they have some responsibility for managing household debt," shared Doug Conick, President and CEO of Manulife Bank of Canada. "However, the results seem to indicate that many couples might not be discussing debt with one another. I strongly recommend that any Canadians who don't have a plan for becoming debt-free reach out to an independent financial advisor for personalized debt management advice."

The survey also looked at attitudes by age group and found that respondents in their fifties are more likely to report shared responsibility for debt management (52 per cent) while those in their thirties are less likely to do so (43 per cent). Regionally, Quebec (53 per cent) and Alberta (52 per cent) homeowners were most likely to indicate shared responsibility for managing debt while Ontario (42 per cent) homeowners were least likely to do so.

Women are more concerned about debt, less optimistic

In general, women appear to be more concerned about debt, but at the same time they are less confident about being able to reduce or eliminate it. Slightly more women (81 per cent) than men (75 per cent) listed "being or becoming debt-free" as a top financial priority.

Men and women place relatively equal importance on being debt-free at retirement - with about eight in 10 indicating this is a high priority. However, more men (55 per cent) than women (49 per cent) are confident that they'll achieve that goal. This perception may be influenced by recent experience, with fewer women (47 per cent) than men (54 per cent) indicating a reduction in debt over the past 12 months.

Moreover, women appear to be more averse to the idea of retiring with debt outstanding - 60 per cent indicate they would find this scenario very stressful compared to just 42 per cent of men. "In many households there's a discrepancy in attitudes, perceptions and expectations between couples with regards to debt, likely because they are either managing their own personal debt separately or just aren't talking enough to one another about finances," added Mr. Conick.

The survey found that the desire to be debt-free at retirement is relatively consistent across Canada. However, respondents in BC and Quebec (each at 57 per cent) are most confident about achieving that goal while residents of Atlantic Canada (44 per cent) are least confident.

Debt-reduction is a priority and most are willing to reduce spending - just not on technology

More than three quarters (77 per cent) of Canadian homeowners indicate that it's very important for them to reduce their debt in the next 12 months, but only 56 per cent feel they're likely to achieve this goal. This relative lack of confidence may reflect experience over the past year. Nearly a quarter of respondents (24 per cent) report an increase in debt over the past 12 months and a further 15 per cent report no change in their debt over that time frame. Regionally, homeowners from BC (56 per cent) and Atlantic Canada (54 per cent) are the most likely to report a reduction in debt over the past 12 months. Homeowners in Manitoba and Saskatchewan are the most likely to report an increase in debt over the past year (30 per cent).

When asked what types of discretionary spending they would be willing to cut back on if it would help them become debt-free sooner, only 12 per cent of homeowners would be willing to cut back on phone/internet/cable services - reflecting the increasingly "wired in" nature of our society. At the other end of the spectrum, the discretionary spending categories people are most willing to cut back are household furnishings/appliances (42 per cent) and dining out (41 per cent).

"Finding and reducing non-essential expenses is a good first step in tackling debt." said Mr. Conick. "Another great strategy is to make your money work harder by organizing your finances more efficiently." The survey found that nearly a third (31 per cent) of homeowners list the interest rate on their debt as a factor making it difficult for them to become debt-free. "Given our current low interest-rate environment, an easy way for many homeowners to reduce interest costs might be to simply consolidate their debt at a lower rate."

While respondents in all regions indicate they are least willing to cut back on phone/internet/cable, they differ somewhat on which discretionary expenses they are most willing to reduce spending. Atlantic Canadians (50 per cent) and Ontarians (44 per cent) are most willing to cut back on dining out. In Alberta, Saskatchewan and Manitoba, 48 per cent indicated they'd be willing to cut back on household furnishings/appliances.

Women and men differ somewhat in this area as well. Women are more apt to reduce spending on household furnishings (45 per cent), dining out (44 per cent) and entertainment (39 per cent) than men (40 per cent, 37 per cent and 32 per cent respectively).

"Overall, this survey tells us that Canadian homeowners want to be debt-free, but that they're not necessarily talking with one another about how to get there," remarked Mr. Conick. "To avoid carrying debt into their pre-retirement and retirement years, it's important to get a debt-management plan in place."

About the Manulife Bank of Canada Debt Survey

The Manulife Bank of Canada poll surveyed 2,127 Canadian homeowners in all provinces between ages 30 to 59 with household income of more than $50,000. The survey was conducted online by Research House, an Environics company, between August 13-23, 2012. Full survey results, including additional regional, gender and
age-group comparisons, are available at manulifebank.ca/debtresearch.

Tuesday, October 16, 2012

Carney Pledges Clear Signal

Bank of Canada Governor Mark Carney speaks in Nanaimo, B.C., on Monday. (Chad Hipolito /The Canadian Press)

Carney pledges clear signal if household debts warrant rate hike

Bank of Canada Governor Mark Carney says that if the central bank opts to raise interest rates to deter households from taking on more debt, he would “clearly declare” what the central bank is doing.

“If we were to lean against emerging imbalances in household debt, we would clearly declare we are doing so and indicate how long we expect it would take for inflation to return to the 2 per cent target,” Mr. Carney said in prepared remarks for an audience in Nanaimo, B.C.

The pledge is significant because Bay Street investors and economists are at odds over the Bank of Canada’s forward guidance on borrowing rates. The central bank has held its benchmark rate at an ultra-low 1 per cent for two years, reflecting tepid economic growth at home and abroad.
Yet for several months, policy makers have indicated that they would like to raise interest rates at the earliest possible moment.
Tiff Macklem, the No. 2 at the Bank of Canada, reiterated that stance earlier this month, isolating Canada’s central bank as one of the few in the world that is leaning toward higher interest rates. At the same time, revised Statistics Canada figures released Monday show Canadians’ debt-to-income ratio reached 163.4 per cent in the second quarter, a heavier burden than U.S. households carried ahead of the housing crash.

Mr. Carney’s comment on the conduct of policy comes as he and his deputies gather this week to reassess interest rates and complete the central bank’s third-quarter report on the economy.
The Bank of Canada’s next interest rate announcement is scheduled for a week from Tuesday; it is set to release its latest Monetary Policy Report the next day. Mr. Carney said the central bank’s revised economic forecasts will take into account the impact of a pervasive sense of uncertainty, which the central bank chief said has paralyzed economic actors around the globe.
“We must take care not to allow uncertainty to dominate our actions, letting profitable opportunities slip away and, more generally, compounding the very real, but still manageable, challenges facing the global economy,” Mr. Carney said.
Mr. Carney urged European policy makers to act quickly and decisively to diminish uncertainty by setting in place a realistic three- to five-year plan for reforming the euro zone, including creating a banking union and closer fiscal union.
And U.S. politicians must act to avoid the fiscal cliff in 2013, when trillions of dollars in tax increases and automatic spending cuts would automatically be triggered if policy makers don’t reach a settlement. Without action, the U.S. economy would take a hit amounting to roughly 4 per cent of gross domestic product, Mr. Carney said.
“If authorities do not change these provisions, this massive fiscal drag will likely push the U.S. economy back into recession next year,” he warned. “That is not what we expect, but like others, we cannot be sure.”
With files from The Canadian Press

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Sunday, October 14, 2012

Do credit settlement agencies really deliver?

Global News investigation re debt settlement firms

Global TV 's "16 x 9" show ran an investigative story regarding how "debt settlement" firms are misleading Canadians coast to coast. Creditors do NOT have to work with these firms who are taking fees from consumers with no guarantees. Only Alberta and Manitoba currently regulate the firms following a ban on upfront fees for debt settlement firms by the FTC in the US in 2010 .

Bad Debt: Do credit settlement agencies really deliver?

You’ve heard the commercials before – credit settlement agencies promising big reductions in the debt you owe. But do they deliver? 16x9 investigates a controversial industry and speaks to two men who say they never got what was promised.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

www.KROEMERmortgages.com click to go website

Saturday, October 13, 2012

Mortgage Calculators

Want some mortgage calculators you can play around with?

Payment calculator-- how much will my payment be?

Affordability--- how much can I afford?

Rent vs Buying---- should you rent or buy?

Amortization schedule--- what are the interest and principal payments month by month?

Bi-weekly vs monthly payments--what would you save by changing to bi-weekly payments?

Early Renewal Calculator----should you be renewing your mortgage earlier at a lower rate?

Mortgage qualifier-----how much income do I need to afford this house?

Here are some calculators you can play around with.
If you have any questions give me a call or email me.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

click here
website

Friday, October 12, 2012

Know The Sources of CO in Your Home

Carbon monoxide has taken the lives of entire families, left scores of people with debilitating physical and mental handicaps, and, sent hundreds more to hospital. So why do so few of us have the one inexpensive safety device in our homes that protects us from this deadly gas?

Carbon monoxide safety comes down to awareness and education. First realize the danger is very real. Second, you need to know the potential sources of CO in your home. Many people think they don’t need a carbon monoxide alarm because they have electric baseboard heaters. But they may have a gas water heater or stove, a gas or wood fireplace, or a garage or carport attached to their house. All these are potential sources of CO.

So long as carbon monoxide is vented outside, there is no danger. But if appliances or heating systems are not properly maintained, or chimneys and vents become blocked or cracked, deadly CO can seep back into your home…and you won’t even know it.

And since exposure to CO mimics the flu, many people make the mistake of thinking the symptoms they are experiencing will just “go away” in time. So they stay home from work or school hoping to get better, when exactly the opposite happens.

Installing protection is easy and inexpensive. You can find CSA-approved carbon monoxide alarms in any hardware store that cost on average about two cents a day to operate over their lifespan.
Installing one CO alarm per floor is recommended by the National Fire Protection Association but, at a minimum, install one outside all sleeping areas. Canadians seem to prefer models that feature a continuous digital readout.

A digital readout shows you any level of CO in your home so you can take action before the gas reaches dangerous levels. Look for models where the display is continuous, not models where you need to physically push a button to get a reading. That way you get instant peace of mind every time you glance at the alarm and see its zero reading.

What are some common sources of carbon monoxide in the home or workshop?

Most carbon monoxide produced in homes comes from combustion of fuel for heating and cooking.
CO may accumulate in the home when a blocked chimney, broken chimney flue, or damaged furnace heat exchanger allows gases to enter the home. It can also enter the home from the garage when an automobile, lawn mower, or other engine is in operation. Backdrafting chimneys and flues (common when ventilation fans are used in tightly sealed homes) may allow combustion gases, including carbon monoxide, to enter the home.
Gas stoves and ranges can produce CO, which can present problems if the appliances are used for prolonged periods or if they are not operated properly. Gas ranges are not intended to be used to heat the home. Some other common sources of carbon monoxide include unvented fuel burning space heaters and indoor use of charcoal for heating or cooking. (Note: charcoal should NEVER be burned indoors.)
Never run a generator in the home.

Posted on September 1, 2012 in Safety Updates

more blog info

Thursday, October 11, 2012

Market Growth Beats Naysayers

The unsinkable Canadian real estate market appears to be just that, with new numbers pointing to continuing price growth in the country’s biggest market, despite fears of a correction. but not so fast, brokers, that may not be good for business.
Numbers released by Statistics Canada this morning reveal prices of new homes were up 0.2 percent in August, the 17th month in a row prices have increased. The numbers come as a surprise to some, surpassing the .01 per cent growth projected by market analysts. Still, the report did not include condominiums, which have seen prices fall, not rise this summer.
Outside that key segment of the market, Toronto and Calgary showed particular strength; the Toronto-Oshawa metropolitan region was up 0.3 percent in August from July, as was Calgary. While the increase was attributed to market conditions in the Toronto region, increased construction, material and labour costs were the cause of Calgary’s spike, said local builders.
Still, the continuing rise in home prices isn't necessarily good news for brokers, many now sitting on a mountain of preapprovals as clients wait for prices to drop. These new numbers indicate that the wait will likely continue for many of those mortgage professionals as sellers hold off on price drops.
For August, price increases were recorded in 10 metropolitan areas, and were 2.4 percent higher in August 2012 year-over-year. Quebec saw the biggest increase, with prices up 0.6 percent. Prices fell in Victoria and Charlottetown (0.4 percent and 0.1 percent respectively), and remained steady in nine of the areas surveyed.

via CMP

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Wednesday, October 10, 2012

How To Improve Your Credit Score

Are you being denied for all types of credit? Has that cell phone bill come back to haunt you? Now is the time to finally face it head on and deal with your credit score. A very daunting task but a task that must be done.

First you need to know what is in your credit score is all about:
payment history
amount owed
length of credit history
new credit
types of credit used

What can you do to improve it?

Whatever you do it will take some time. It will take patience as you plow away at those credit cards, getting them down to a much lower balance. All that money just disappearing into those credit cards. But, in the end you will see it will be worth while and no one will deny you a car loan or even a mortgage ever again.

A little secret that not many people do not know is that whatever your limit is on your credit card, you should not owe more than 50% of that limit. So if your limit is $1000.00, the card should never have more of a balance than $500.00. In fact it is better to have 2 credit cards with no more than 50% owed on them than have 1 credit card maxed out. Go figure.

What else can you do?

Make sure you make your payments on time. Credit companies record when you have late payments. This is very important. Set up payment reminders.

Don't close your unused credit cards. If you must close a credit card close the one that is the newest. It is all about having and managing long term credit is what the lenders want to see,

Check your credit report. They do make mistakes. Birthdates seem to be a popular one that they input wrong. If you are being denied credit and you believe your credit rating is great order a free report, go over it, making sure all the information is correct.

Store credit cards are not as good as mastercard,visa or american express. Also store credit cards usually charge you a higher interest. To get a mortgage the lenders/banks like to see at least 2 credit lines in good standing.

Remember , it is all about managing your credit. Everyone hits a point in their life when for whatever reason the credit managing slides. Could be a divorce, job loss, moving, marriage, etc.

Do you have questions about your credit score. Contact me and I will help you sort it out.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Sunday, October 7, 2012

My Favorite Turkey Recipe- Brine Turkey

For years I cooked my turkey just like MOM did, but was never very happy about they way it turned out. It was just a turkey.
I know this may be a fad for alittle while, just like the deep fryer turkey (which I never did), but I have to say, I will never cook a turkey any other way.

This is not my recipe, My family raves about the brined turkey because it gets flavored all throughout and stays moist. Even if you over cook it.

Ingredients Recipe courtesy Alton Brown, also featured in Food Network Magazine

1 (14 to 16 pound) frozen young turkey

For the brine:

1 cup kosher salt
1/2 cup light brown sugar
1 gallon vegetable stock
1 tablespoon black peppercorns
1 1/2 teaspoons allspice berries
1 1/2 teaspoons chopped candied ginger
1 gallon heavily iced water

For the aromatics:

1 red apple, sliced
1/2 onion, sliced
1 cinnamon stick
1 cup water
4 sprigs rosemary
6 leaves sage
Canola oil

Directions

2 to 3 days before roasting:
Begin thawing the turkey in the refrigerator or in a cooler kept at 38 degrees F.
Combine the vegetable stock, salt, brown sugar, peppercorns, allspice berries, and candied ginger in a large stockpot over medium-high heat. Stir occasionally to dissolve solids and bring to a boil. Then remove the brine from the heat, cool to room temperature, and refrigerate.
Early on the day or the night before you'd like to eat:
Combine the brine, water and ice in the 5-gallon bucket. Place the thawed turkey (with innards removed) breast side down in brine. If necessary, weigh down the bird to ensure it is fully immersed, cover, and refrigerate or set in cool area for 8 to 16 hours, turning the bird once half way through brining.
Preheat the oven to 500 degrees F. Remove the bird from brine and rinse inside and out with cold water. Discard the brine.
Place the bird on roasting rack inside a half sheet pan and pat dry with paper towels.
Combine the apple, onion, cinnamon stick, and 1 cup of water in a microwave safe dish and microwave on high for 5 minutes. Add steeped aromatics to the turkey's cavity along with the rosemary and sage. Tuck the wings underneath the bird and coat the skin liberally with canola oil.
Roast the turkey on lowest level of the oven at 500 degrees F for 30 minutes. Insert a probe thermometer into thickest part of the breast and reduce the oven temperature to 350 degrees F. Set the thermometer alarm (if available) to 161 degrees F. A 14 to 16 pound bird should require a total of 2 to 2 1/2 hours of roasting. Let the turkey rest, loosely covered with foil or a large mixing bowl for 15 minutes before carving.

You can change the brine as long as you keep the salt and the vegetable stock or you can use chicken stock. I use a package of fresh poultry seasonings instead of the ginger and the rest of the spices.
For the aromatics I use the package of fresh poultry seasonings found in the fresh veggie isles.

If you try it , I hope you and your family enjoy it as much as my family does.
Note: I cook my stuffing in a seperate container and not in the turkey

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Thursday, October 4, 2012

What's in a Title?

What is a Mortgage Professional?

A mortgage professional is a sub-broker. Since the name sub-broker doesn't sound so great, other names used by a sub-brokers are mortgage professional, consultant, agent, specialist and the list grows. We must pass an education program as well as an exam. We also must be licensed in our province.

We are governed by FICOM The Financial Institutions Commission which is a regulatory agency of the provincial Ministry of Finance.
FICOM is responsible for administering nine statutes that regulate the pension, financial services and real estate sectors in British Columbia. The primary focus of this regulation is to ensure that:

Institutions and pension plans in these sectors remain solvent;
Market conduct requirements for these sectors are respected;
Unsuitable individuals do not participate in financial service markets; and
Through the Credit Union Deposit Insurance Corporation (CUDIC), insure credit union deposits and non-equity shares.

To keep this explanation simple: A mortgage broker is the company we work for. A mortgage broker over sees the sub-brokers. A mortgage broker in Canada has an overwhelming amount of paperwork, that is why there is more sub brokers then brokers.

Bank representatives are neither mortgage brokers or sub-brokers. They are trained by their bank that they work for. They could not broker a mortgage as brokering means more than one. They only sell what their Bank has. They are not unbiased.

A title can be complex to the public as well to the industry that we belong to.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Wednesday, October 3, 2012

Real Estate Investment Canada Or the US

While economic turmoil has flooded worldwide markets, Canada has become an economic safe haven. International money has been parked for safety and ROI, and has fundamentally became a haven to provide the world what it needs for at least the next couple of decades.

Though Canadians have been programmed to look elsewhere for opportunity, 2011-2020 will be the exact wrong time to be doing so. In fact, Canada is in its first year of what will prove to be Canada’s economic decade, and the best time in history to invest here.

Unfortunately, due to a misguided belief that cheap is good when investing in real estate, many Canadian investors have turned their prospects south of the boarder to the US as real estate prices continue to plummet.

Canadian media has been flooded with the tales of investors chasing the cheap price of US real estate, as well as their deals and steals. However, what these investors failed to consider were the metrics involved in analyzing a market’s potential, such as currency risk, taxation, unemployment rate, vacancy rates, property supply and demand, and have taken the ‘buy cheap’ risk anyways despite the reality.

Moreover, replacement costs mean nothing if demand is non-existent, however it is a wonderful tool to use when selling properties. Investors searching for long-term sustainable wealth also need long-term sustainable economic fundamentals. An economy that shows a downward progression will eventually spillover to the real estate market as well, therefore creating a high-risk real estate market.

GDP growth leads to job growth, with attracts migrations, leading to population growth and increased rental demand. This demand drives rental prices up, pushes people to buy properties, and eventually leads to property price increases.

This is exactly the situation in Canada right now, creating jobs by becoming the world’s safest supplier of four key commodities entering the supply and demand super-cycles – food, fuel, fertilizer and forestry).

Among some of the best Canadian cities to invest in real estate are in Alberta were more jobs are projected to be created in a month than the total jobs created in US over the next 10 years.

Source: Don Campbell – Canadian Real Estate Wealth

Are you Working For An Award Winning Engaged Company?

The 50 most engaged workplaces in Canada

Engagement, which describes employees' passion for their work and commitment to the company's vision, isn’t just a buzzword. Taking time to create a fully engaged workforce, where employees go above and beyond their job descriptions, can not only help boost a company's customer relations but also the its bottom line.

Companies that focus on employee engagement tend to perform better financially, attract and retain the best talent and enjoy improved customer service and client retention,” says Razor Suleman, founder and chairman of Achievers, a company that offers social recognition and employee engagement solutions to its clients.

The company recently released its third annual survey of the most engaged companies across the country. A panel of five judges, which included Mr. Suleman, evaluated applicants and selected the winners based on the following eight elements of employee engagement: communication, leadership, culture, rewards and recognition, professional and personal growth, accountability and performance, vision and values and corporate and social responsibility.

The 50 most engaged companies, listed below (in alphabetical order), will be honoured on Nov. 14 at Arcadian Court in Toronto.

1-800-GOT-JUNK?
3M Canada Company
Access Communications Cooperative Limited
Adecco Employment Services
All Weather Windows
Apex Distribution Inc.
Arrow Professional Services
Bayer Inc.
BC Housing
Bruce Power
Ceridian Canada Ltd.
CIBC Mellon
Contingent Workforce Solutions Inc.
Crawford & Company (Canada) Inc.
Edelman Canada
Eli Lilly Canada
Empathica Inc.
Enflick, Inc.
First Canadian Title
FIRMA Foreign Exchange
Flight Centre
G Adventures (formerly Gap Adventures)
Genesis Hospitality
GoodLife Fitness
Haute Culture Consulting Inc.
HR Downloads Inc.
Hydro Ottawa
IQ PARTNERS Inc.
Just Energy Corp
KPMG LLP
Mayhew
MD Physician Services
Meridian
Molson Coors Canada
Monsanto Canada Inc.
NetSuite Canada Inc.
Nurse Next Door
PEER 1 Hosting
peopleCare Inc.
Polar Mobile
PowerStream Inc.
Rogers Communications Inc. - Customer Support
Ryan, ULC
Scotiabank Convention Centre
Siemens Canada
Starwood Hotels & Resorts
TeraGo Networks Inc.
The Johnson Corporation
The Little Potato Company
TribeHR

Special to The Globe and Mail

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Tuesday, September 18, 2012

Retired Now? But your Mortgage Isn't Yet

Everyone looks forward to their retirement days. You have put in 30+ years in the workforce, now it is time for you to do what you want to do. Travel, ski, golf, fish, take up a hobby, the list is endless.

Lets go back 20 years. You are working and making good money, maybe your partner is working, also making good money. You buy a house. make monthly payments on the house and after 10 years you refinance the house. Kids got to go to college, this is a way for them to go. So now you are back owing the same amount for the mortgage as you did 10 years ago. You may even refinance again for your children's weddings.

Another 10 years have passed and now it is time to retire. Your mortgage is not paid off and you just realized your pension isn't going to be a big as you thought. Your mortgage payments are eating all that disposable income you were going to fill your days with.
Remember the travelling, skiing, golfing, hobbies, that endless list.

So what does one do?

The wrong way to go--- I have seen this and it is tragic to see people do this. What they do is charge up their credit cards, if those get filled up, they go get more credit cards or a line of credit secured to their house. They live their life for a few years just like they planned to do it, except without the income they thought they would have. They are now living on CREDIT.

After a few years of juggling their credit card payments, mortgage and line of credit payments, their world comes crashing down on them. Sadly, their house goes into foreclosure, their credit cards get shut down and they have a pile of debt in their names. Not a great way to live out your retirement.

The right way to go-- If you recognize at the start that things must change, you will have an easier and happier retirement life, and we all want that. The good news is there are a few different ways to proceed to succeed.

1. Sell the family home and buy a smaller condo or home. This way the equity you do have in your family home and the increase in land value from the time you bought your family home may allow you to pay off the mortgage and also pay off the smaller dwelling. Leaving you mortgage free, with disposable income for your retirement. Or at the worst giving you a smaller mortgage payment with some disposable income.

2. Look into the Canadian Home Income Plan. (CHIP) Which is a reverse mortgage. With the equity in your family home, you may be able to pay off your mortgage or most of it, leaving you in the family home and increasing your disposable income since the mortgage payment will be paid or made smaller.

3. See if one of your children is interested in buying a house with a in-law suite. With the sale of your family home you and your child could share the mortgage payment. Or you could give them a portion of the proceeds of the sale of the family home, to pay for your in-law suite, which in turn will be the down payment your children will need to buy the home.

4. If your family home is big enough you could divide it into 2 suites. Living in one and renting the other one out. This will free up some of the disposable income that you want.

Whichever way you proceed make sure that you do make the decisions before you are in financial trouble. Because, once you are not making the payments on the mortgage, credit cards, or line of credit, your options because increasingly less.

If you need more information, give me a call or email me. You can check out my website by
Clicking Here

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Facebook Pages

https://www.facebook.com/#!/campbellriverbc

#1 Tip for Consumers Looking to Get a Mortgage

Work with an AMP.

Accredited Mortgage Professionals

CAAMP (Canadian Association of Accredited Mortgage Professionals) requires that all members with the AMP designation receive ongoing education on industry best practices, government rules and changes, and etc. to help you navigate the mortgage process with integrity, responsibility and ease.

How do I know if my mortgage person is an AMP?

Usually they have AMP beside their name.

You can ask them.

You can go on CAAMP's website and search their name.

http://www.naylornetwork.com/caampdirectory/SearchResult.asp?Lang=&con=angela+kroemer&mem=AMP

By clicking on the link above you will find my name, my phone number and my website.

Above my name you will find a header search by person, then type the person's name and scroll to AMP.

Similarly, you can find out if your mortgage person is a member of CAAMP, or if they are a AMP Residential Specialist or an AMP Commercial Specialist.

CAAMP also has a wealth of information for you, the mortgage consumer.

http://mortgageconsumer.org/index.php

For More Information On Mortgages, Click here.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Facebook Pages

https://www.facebook.com/#!/campbellriverbc

Monday, September 17, 2012

What Documents Are Needed For Your Mortgage?

So you have decided to buy a home and you know that documents are needed.
But, what documents are needed for the mortgage.

Every mortgage is different.

From the onset you may think a mortgage is just a mortgage, but it is not quite that easy.

Your mortgage is unique to you. That is why a mortgage professional will tailor a mortgage just for you.

As a general rule, before you start looking for your home, it is a good idea to get these documents organized and in a safe place. Also, talk with a mortgage professional (me), to know the amount you will qualify for.

Your mortgage professional may ask for documents, before she/he can send your approval to the Lender.

You will not need all of the documents listed below, it just depends on your circumstance.
Also, addtional documentation may be asked by the Lender when your mortgage approval gets sent in for the approval.

At this point, your mortgage professional may ask for the addtional documentation.   You can get a faster commitment finalized if all the documentation is in order.

Below are the most common documents asked for but not all are usually needed:

If you are a salaried or hourly worker you need:
Letter of employment--Salary-- Position, salary, start date
                                     Hourly-- Position, Start date and hours worked in a week
Current pay stub
T4 slips from the last two years
T4A slips from the last two years if it applies to you
Canada Revenue Assessment from the last two years

If you are self employed you need:
T4A slips from the last two years
Tax returns from the last two years pages 1-3
Statement of Income and Expenses from the last tax return
Financial Statements if the company is joint partnership or incorporated.

Proof of Down Payment:
This section is really important because of the laws of money laundering. There must be a paper trail that the government can follow.

If using RRSP's as a down payment then the most recent statement.
If using chequing account amount then the last 3 months if chequing account statements
If using investment account then the most recent statement
If using a gift then a gift letter with the exact amount stated. Also a photocopy of gift cheque and deposit slip.

Paper work for the Property being Purchased (if you have decided on a property)

Full appraisal - your broker should be able to order that
Recent tax assessment from assessment authority
Copy of real estate contract of property being purchased
Copy of property condition disclosure statement
MLS listing sheet
If Strata a copy of the last 6 months meetings minutes and annual general minutes

Particulars of the Lawyer you are using
The name and address of Branch where your down payment is
Copy of Void cheque for your mortgage payments
A completed pre authorized cheque form for your mortgage payments.

Other Income

You may be able to use child support or spousal support as income as long as it is documented in a court document.

You may be able to  use Child tax Benefit as income providing the child is 12 years or younger.

You may be able to use Universal Child Care Benefits as income providing the child is 1 year old or younger.

If you are not sure if you are able to qualify for a mortgage at this time, give me a call or email me,  We can go over your particular situation.

This is a no fee service whether you do qualify for a mortgage or not.
Apply Now !

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182----- phone or text me

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Your Mobile Mortgage Professional in The Comox Valley TM

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Friday, September 14, 2012

Paying Your Mortgage Off Faster

Some people are happy with their mortgage payments and the terms in years for paying off their mortgages, and that is fine.

While other people want to get their mortgage payments done with and their home paid off.
There are a variety of ways of getting your mortgage paid off faster and by paying off the mortgage faster, you are saving a ton on interest payments.

Look at your mortgage, what is the interest rate you are paying? Are there better interest rates on the market?

Next, look at the terms of your mortgage. Does it allow you to prepay an amount monthly, yearly? Are the prepayment terms too high of an amount you would never prepay, anyway.

If you are paying too high of an interest rate and your prepayment terms are too impossible, your next step may be to switch your mortgage to a different Lender to have the flexibility to prepay and to get a lower rate. Just getting a lower rate will take off a few years of your mortgage payments.

So now, you have taken the necessary steps to make paying off your mortgage a reality.
Now What?

There are different ways you can pay off your mortgage faster. You can do it all or in part and you will still get your mortgage paid off faster.

1. Switch from monthly to accelerated bi-weekly or accelerated weekly payments.

2. Pay an extra $100.00 bi-weekly or weekly.

3. Make a lump-sum payment of just $1000.00 or more per year for the life of the mortgage.

If you combine all 3 steps by the minimum amounts you could be mortgage-free as much as 8 years faster based on a $200,000.00 mortgage.

The difference Accelerated Bi-weekly
payments make

Need more information? Be sure to contact me.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

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Wednesday, September 12, 2012

Renovate Or Sell?

Are more people hunkering down and fixing up existing homes rather than moving?

In some areas of Canada home resales are falling and the new housing price index slipping, people appear to be staying put a bit longer and renovating their existing homes instead of moving.

If you are entertaining the thoughts of renovating your home, will you use credit cards to pay for the renovations? There are other ways to finance your renovations, one is Refinance Plus Improvements. This will give you the money needed for renovations, at the same low interest rate of your mortgage.

a few things to think about when looking into Refinance Plus Renovations is:
--how much will your penalty be to Refinance
--how much your interest rate is now
--how much equity you have in the house
--how much will you save by Refinancing opposed to using credit cards at 20-29% interest
--how much you will need for renovations

Renovation Tips:

Peter Simpson, president and CEO of the Greater Vancouver Home Builders Association, said he spoke with several renovators and very few are fixing up homes for resale.

“Some clients have moved in and want to renovate. The others are folks who have lived somewhere for a number of years and want to stay in the same neighbourhood. They’re renovating for their own use,” Simpson said. “They’re not nervous about spending the money either.”

With year-to-date resales down 18 per cent in Vancouver compared to a year ago, it’s no longer the smoking hot sellers’ market it was a year ago. In fact, the Real Estate Board of Greater Vancouver reported that July sales were the lowest since 2000, with sales 31.2 per cent below the 10-year July sales average.

The new housing price index slipped 0.9 per cent in Vancouver in June 2012 compared with June 2011, according to Statistics Canada, while the MLS Home Price Index composite benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 0.6 per cent to $616,000 and declined 0.7 per cent in July 2012 compared to the prior month.

New mortgage rules introduced by the federal government in July shortened the maximum amortization to 25 years from 30, which is also expected to dampen the market.

Business is definitely strong this year for Jeff Bain, owner of JKB Construction, who said renovations always pick up when sales of new homes fall off.

“Everybody seems to be keen now to spend money,” Bain said. “It’s been good all year long.”
He said kitchens, bathrooms and basement suites continue to be the most popular renovations, but people are also renovating their entire homes.

“People are staying in their homes longer than they ever have in the past. They want to stay where they are comfortable,” Simpson said.

The amount spent on renovations has gone up every year for the past several years, Simpson said, but added that he isn’t sure if that’s because more people are doing renovations or because they’ve become more expensive.

Canada Mortgage and Housing Corp’s third-quarter Housing Market Outlook, released in August, said renovation spending in 2011 was $61.7 billion in Canada. CHMC says that amount will moderate in 2012, growing to $63.3 billion, but is expected to strengthen in 2013 to $65.6 billion.
In B.C., spending on renovations in 2011 was $7.6 billion. Spending is expected to remain stable in 2012 and grow to $7.8 billion next year.

For the most part, business is good for contractors, even in this year’s moderate market, Simpson said.
“One contractor I talked to said he’s having his best year ever,” Simpson said. “He said one client bought a home and they’re spending money to update it, but most clients want to stay where they are and bring their homes up to date.”

Another contractor told Simpson he’s had some customers having a harder time borrowing money from the bank, which may be a result of new mortgage refinancing rules. “Some people seem to be getting a little push back from the banks, or they might not be able to borrow as much as they want,” Simpson said. “If they can’t obtain the financing, they just have to scale it back a bit. With a renovation, you don’t have to do it all at the same time.”

In May, the Greater Vancouver Home Builders Association held one of its twice-yearly renovation seminar for 300 homeowners. Attendees were asked to complete a survey and Simpson shared some of the results with The Vancouver Sun.

Fifty-six per cent of respondents said they plan to renovate within the next year, while 26 per cent said within 12 to 18 months, Simpson said.

“There’s a sense of urgency. They want to renovate soon.”

Homeowners were also asked if they would need financing — 59 per cent said no and 41 per cent said yes.

Next year, when the province reverts back to the goods and services tax and the provincial sales tax, it is possible that labour on renovations will not be taxed because it was not taxed under the old provincial sales tax.

Simpson said that while it’s not known exactly what will happen when the tax reverts, the transition does not appear to be causing people too many concerns when it comes to renovating.
In his survey, he asked if people were putting their renovation plans on hold until the provincial sales tax is back and 35 per cent said yes, while 65 per cent said no.

“They’re doing renovations because they want to do them,” Simpson said. “Interest rates are still really low. People are going ahead and renovating. They want to have their new kitchen regardless of the tax.”

Simpson urged homeowners to verify that a contractor is compliant with WorkSafeBC before contracting with them for any work. It’s something that Port Moody homeowner Jan Jasienczyk wishes she had done when she needed a new roof two years ago.

The contractor she hired had documents showing that he was insured and a member of various organizations, but Jasienczyk didn’t independently verify that they were accurate. She ended up taking the contractor to small claims court when it turned out she had to redo the entire roof and her garage was damage by leaking. She eventually recovered most of the money she had paid the contractor, but she says it caused her a lot of stress and heartache.

“When you get an estimate, verify everything. Are they members of the roofing association? Do they have Worksafe?” Jasienczyk said. “Do all of those things before you commit to any kind of a contract. Do your due diligence.”

Jasienczyk ended up getting her roof re-done entirely by Penfolds Roofing, which recently announced it is launching a warranty corporation to support its roofing warranties.

Simpson said cash deals are always a bad idea, but he estimates that about 30 per cent of renovations are done under the table.

“It’s rampant. People want to avoid the harmonized sales tax or any taxes,” Simpson said. “There’s about $7.6 to 7.7 billion to be spent on home renovations in B.C. this year; I believe with that much at play there is a lot of opportunities to deal with the underground economy.”

He says people are at risk of being sued if a contractor gets injured if they are not covered by Worksafe.

“Unless homeowners want to put the contractor’s kid through university, they better make sure their contractor is fully compliant with Worksafe.”
He said it is easy to check if a contractor is compliant with Worksafe, and renovators can even request a no-cost compliance letter

How do I know whether my contractor or subcontractor is insured?

You can request a clearance letter that tells you whether a firm, contractor or subcontractor is complying with our registration and payment requirements.
http://www.worksafebc.com/help/faqs/default.asp?section=Insurance#Whoneedsworkplaceinsurance?6

tsherlock@vancouversun.com

Refinance Plus Improvement Mortgage

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

Sunday, September 9, 2012

Feng Shui-Can It Help to Sell or Buy Your Home

For a realtor trying to survive the currently sluggish market, there might be no sight as disheartening as that of the unyielding feng shui master who shows up with the buyer to assess the property.
The master, is, after all, probably going to get the last word.

The ancient Chinese practice of feng shui, which is, roughly, about creating a harmonious environment, can have a major impact on a sale in the Lower Mainland. Feng shui master Johnson Li knows all about that, having shot down many a potential purchase.

Mr. Li has been a feng shui master since arriving in Vancouver 20 years ago. He divides his time between the Lower Mainland, Hong Kong, China, and places like Victoria and Seattle, where he’s called upon to assess homes for occupants or would-be buyers.

Feng shui got plenty of media attention in the late 1980s, when a wave of Taiwanese buyers was purchasing and renovating properties based on the system. Today, it’s still alive and well and has spread beyond the Chinese demographic, with devotees from other cultures opting to let feng shui guide their choices.

Mr. Li acknowledges that he is one of the most expensive feng shui masters in Vancouver, but his rate is even higher when he works in China. Here, he charges $8,800 to assess commercial properties; $3,800 to assess houses, and $2,800 to assess apartments. His fee is not to assess only one property for a client, but rather, as many properties as necessary until he finds one with good feng shui. He says that he once rejected more than 100 listings until he settled upon an appropriate house, which must have been an interesting situation for the buyer’s realtor.

The practice is not limited to Chinese buyers, says Mr. Li. He has clients who are Caucasian and East Indian. In Surrey, a Polish family requested his help when they couldn’t sell their house after six months without action. After his recommended changes to the house, he says they sold two months later.

Patricia Coleman is a feng shui practitioner who caters mostly to a non-Chinese demographic in Vancouver. She has guided homebuyers and has “feng shui’d” houses to make them easier to sell.
“I have a lot of western clients,” she says. “It’s not just about trying to sell a house, but making the right decision. It’s a huge purchase. You need to ask, ‘Is it the right one?’

“Every culture has an understanding of placement and energy.”

Faustina Kwok, who lives in Richmond with her naturopath husband Martin, says their new house was built according to feng shui principles that she believes will increase its value. They also “feng shui’d” her husband’s clinic. However, when it came to the house, she wasn’t willing to forgo a good floor plan and flow for feng shui, Ms. Kwok says. She’d been inside “feng shui’d” houses that felt odd because the flow was off. But she was willing to move the driveway, and add a partial wall so that the master bedroom wasn’t in direct view of the front door.

“We just did the big modifications, like where the toilet shouldn’t be,” she says. “You don’t want to flush your fortune away. At least I take comfort knowing my toilet is not in the wrong place,” she says, laughing.

Although growing in popularity, it’s still a largely misunderstood practice, says Mr. Li. Some people think that the popularity of an address that includes the number eight is feng shui, but that’s more about superstition. Feng shui grew out of something far more practical, he explains.

“It is the art of looking at places that are safe or not, gauging whether they are a habitable place,” he says, seated in his Kingsway office, surrounded by his extensive library, a translator at his side. “Feng shui means the study of surroundings.”

Mr. Li has stopped the sale of many houses, and he’s witnessed attempts at feng shui by builders who were shrewdly, or naively, anxious to appease the Chinese market. Mr. Li explained how he once kiboshed the sale of a newly built home in West Vancouver. The builder had hired another feng shui expert to help design the house, which included a giant vertical aquarium as well as an indoor Koi fishpond. Mr. Li took one look at the aquarium and pond and gave a thumbs-down on the pricey property. His clients took his advice and walked. The builder was so furious, he says, that they asked him to put his reasons in writing.

As he poured another round of green tea, he explained that it’s a basic feng shui principle that you don’t want water above your head. As well, a Koi pond inside a house is not a good thing, he added.
When asked to explain, Mr. Li chuckled and said, “Because it will smell like fish.”

As for the feng shui practitioner who’d allowed such missteps, he explained that unfortunately, because so many consumers want instant and easy answers, there are a lot of unscrupulous practitioners who don’t know what they are doing. He doesn’t like doing assessments for developers and realtors because “they use him to make money.”

He recalls a realtor slipping him a red envelope as he was doing his assessment. The envelope was stuffed with a substantial amount of money, which he later turned over to his clients.

Emily Lo says she trusts Mr. Li for all her real estate purchases, even if it irritates the realtors, who often try to persuade her to use Mr. Li’s report as one of the subjects to sale. However, she’d prefer to get his opinion upfront, after the initial walk-through.

“He has the power of veto, and if you are paying that amount of money, you are going to trust what he says.”

Gastown realtor Ian Watt says the issue of feng shui comes up about once a month.
“A lot of my Chinese clients are really big into that,” he says. “It’s amazing, because it does affect real estate for a certain demographic. Everybody over 50 cares for sure.”

He has a client with a condo on Pacific Boulevard currently on the market, and the client refuses to let him close the window during showings.

“It’s on Pacific Boulevard, which is very noisy. The traffic sounds don’t help,” he says. “They want the window open all the time, and it’s something to do with feng shui.”

Anna Chen, who co-owns the unit with fiancé Dan, can explain. Her uncle is a feng shui master who visits from Taiwan, and he told her to keep the window open in order to sell the unit. Ms. Chen, who is 32, said that she was reluctant to believe in feng shui throughout her 20s, but now that she’s older, she’s starting to see its value.

“I think it helps. I’ve seen it help. So that’s why I asked my uncle to help me to sell the place, and also to help us buy the next place. Now, when we go to a new condo listing, sometimes I ask him to come with me. He told me the direction of the entrance and everything will affect health and fortune, how much you can make, or are you going to lose.”

An Excellent article by Kerry Gold
Special to the Globe and Mail September 8 2012

For information on mortgages

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

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