RRSP Deadline is March 1 2013

 

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Top Tips for making the most of your retirement savings

 Everyone loves to save tax.  RRSP season is the perfect time to ensure you’re doing just that.
According to Stats Canada, Canadians collectively had $671,000,000,000* of unused RRSP contribution in 2011.
That’s about $30,000 for every working Canadian. Invested today, $30,000 could turn into $60,000** in 10 years time.
I don’t know about you, but that seems to me to be a fairly good incentive to consider what to save this year.
So if you’d like to do more saving for your retirement and, at the same time, save tax consider these three options.  Also for first time home buyers you can borrow from your RRSP- Tax Free - for your downpayment.
1. Make it a bill.

To turn your retirement savings into a bill you might want to consider a RRSP catch-up loan.

A RRSP loan can be an excellent way to take advantage of unused contribution room, generate tax-savings and jump-start your retirement savings.

Setting up a loan is straightforward.  Once you have the loan for the RRSP after 90 days you may be able to use the RRSP for your downpayment, even though you are still paying for that RRSP.

2. Get in the habit.

If you’re not ready to take the leap into a RRSP catch-up loan, consistent savings is where it is at.

In fact, the key to your long-term financial success and wealth is your ability to save. Consistent savings is also a great way to build for the future using the benefits of compounding and dollar cost averaging.

You can start small so you build the habit and set up annual automatic increases. It’s one less thing you have to think about and it removes the possibility that you simply won’t get around to it.

3. Dump in a lump.

Finally, did you receive a year-end bonus? If you haven’t already spent it, why not think about making a lump-sum contribution to your RRSP. You’ll create a tax refund for yourself that you can use later in the year.

Whichever way you save don’t miss the deadline
The deadline for contributing to your RRSP for the 2012 tax filing year is Friday, 1 March 2013.
The maximum RRSP contribution limit for 2012 is $22,970 (or 18% of your 2011 earned income) less, of course, any pension adjustment.
You can determine if you have additional RRSP contribution room by checking your last year’s Income Tax Notice of Assessment or by phoning the Tax Information Phone Service at 1-800-267-6999.
It’s not how you start, it’s how you finish
Whatever your retirement dream looks like, you can make it a reality by planning ahead and following a savings plan that is right for you.
www.kroemermortgages,com

No downpayment-- read on

Stop Paying Your Landlord’s Mortgage! Own Your Own Home

The thousands of dollars in rent you’ve paid to your landlord may be a staggering figure— a figure you don’t even want to think about. Until now, buying a house hasn’t seemed possible; it didn’t seem to be in the financial cards for your foreseeable future. Or is it? This situation is common: countless people feel trapped their home rental, pouring thousands of dollars into a place that will never be their own—they think they’re unable to produce a down payment for a home in order to escape the rental dilemma. However, putting the buying process into motion isn’t as impossible as it may seem. No matter how difficult you believe your financial situation to be, there are a few key facts that can help you make the step from the renter’s rut, to your own home-owning paradise!

Initially, of course, the most daunting factor involved in buying a house is the down payment. You know you’ll be able to handle the monthly payments—you’ve done this, and possibly more, for years as a renter. The hurdle, instead, seems to be accumulating the capital needed to put money down. Here’s the good news - this hurdle may be smaller than you think. Take a look at the following points and explore whether any of these scenarios may be possible for you:

1. Find a mortgage broker to assist you with your options for accessing different lenders.

Mortgage brokers have access to more than just one lender, usually they deal with over 40. Some of those lenders will work with clients to get them into a house with various options available for down payment and closing costs.

2. Buy a home even if your credit isn’t top-notch

.

If you have saved more than the minimum for a down payment, or can secure the loan against other equity, many lending institutions will still consider you for a mortgage, despite a poor credit rating. And working with a mortgage broker we only obtain one credit bureau to save you rating from multiple inquiries.

3. Find a seller to assist you in buying and financing the home.

Some sellers may be willing to bear a second mortgage as a seller take-back. The seller then assumes the role of the lending institution, and you pay him/her the monthly payments, rather than paying the price of the home in a lump sum. This is an additional option if you have a poor credit rating.

4. Federal Government First Time Home Buyers Plan (HBP).

Canada Revenue Agency now allows first time home buyers to withdraw up to $25,000 from your RRSP contributions to put towards your home purchase. There are specific guidelines for this program which can be found at cra-arc.gc.ca.

5. Create a cash down payment without going into debt.

You may borrow the down payment from a loan or a line of credit. As long as you can service the repayment amount this is a viable option. You may also be gifted your down payment from a family member as long as it is genuinely a gift and it is in your account 15 days prior to the closing date. You may also have a co-signer on the application to increase the strength of your application for approval.

You now know, there are options. The next step is to educate yourself on what your own personal possibilities might be and how to follow through with this goal. You should be pre-approved for your mortgage before searching for a home. The process is free and doesn’t place you under any obligation. Its simple, you can be pre-approved over the phone! Once a credit application is submitted, you’ll receive a written pre-approval, which will guarantee you to a specific dollar range or mortgage amount. When you have the pre-approved mortgage amount, you’ll know the price range to look in. Make a commitment to break out of the renting rut. Start today! Call Angela to get started on buying your home!!!!!

www.mortgagegrp.com

Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

Use RRSP's For Down Payment

Are you making good money, but don't have a down payment?

Are you a First Time Home Buyer?

You are in luck.

What you can do is go to the bank and get a loan for your RRSP contribution. If you do not know your limit then you can look on your last year's notice of assessment, it will give you the maximum RRSP limit that you can buy.
Once you have the loan for the RRSP, you can buy a house under the First Time Home Buyer program.
You use the RRSP as a downpayment up to $25,000.00 per person. You do have to pay this back to your RRSP account with in 15 years paying a portion each year.

You pay on the RRSP loan monthly just like a regular loan. When you do your Income Taxes you should get a rebate for buying the RRSP's. What you can do with this rebate is to pay part of the loan off thus decreasing the amount of interest of the loan.

Any questions, let me know.

Thank you

Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
http://www.KROEMERmortgages.com

TMG The Mortgage Group Canada Inc.








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