Making Your Military Move Manageable
Making Your Military Move Manageable
Members of the Canadian Forces are often men and women on the move. When a change of service
(COS) is in the works, an accompanying move brings its own worries and concerns.
It’s only natural to have questions. Will the family like the new location? Are there good schools for my
children? Will we find a good home at a reasonable price?
Luckily, you can turn to the Wilson team (www.wilsonteam.ca) to help you put all of your
understandable relocation worries behind you. This family-owned and run team of mortgage
professionals is part of Invis, one of Canada’s largest mortgage brokerage firms. Not only does the
team have access to a range of mortgage products from more than 30 respected lenders; the team
members will ease your transition to the Ottawa area by connecting you with local realtors and a range
of respected service providers from physicians to hair stylists. After all, it’s the little things that make
your new house feel like a home!
The First Step: Selling Your Current Home
Before you can relocate to the Ottawa area, you’ll need to put your existing home up for sale. The
Canadian Forces will ensure that you are suitably reimbursed for the sale, and you can take the lovely
memories along to your next abode.
Although the Department of National Defence (DND) has a series of regulations regarding selling your
home prior to a move (https://www.canada.ca/en/department-national-defence/corporate/policies-
standards/relocation-directive/2018.html), allow us to lend a hand by summarizing the key points for
you in laymen’s terms.
The home must be your residence:
You or your dependents must actually live in the home you are selling prior to putting it on the market
in order for you to claim the associated reimbursement benefits generated by the sale.
Holding the title:
You must have clear title to your property in order to be reimbursed for its sale. DND will reimburse you
for some of the expenses related to ensuring you have clear title, as follows:
Land survey costs, if your lawyer or notary certifies that:
o the last survey is more than five years old;
o there have been observable changes to the lot since the last survey; or
o the seller is required by law to provide a survey.
Charges, such as administrative fees and mortgage disbursement fees levied by a lender, for the
disposal of one mortgage on the property.
Legal fees you incur as the result of the deed transfer to Land Titles System.
Municipal fees associated with a municipal name change for tax rolls.
Your current mortgage:
Most financial institutions currently offer portable mortgages where the members can avoid or reduce
any charges or penalty by arranging to transfer all or part of the mortgage to the new residence. When
selling a residence, CF members must make every effort to port their mortgage when it is practical and
reasonable to do so.
If you are entitled to receive relocation benefits and are required to pay a mortgage early repayment
penalty (MERP) in relation to the discharge of one or more mortgages held against your principal
residence at the time of its sale, is entitled to be reimbursed the amount of the mortgage early
repayment penalties incurred if:
the terms of the mortgage or mortgages require the MERP to be paid to the mortgage lender;
and
at the new place of duty, the member either
o does not purchase a replacement principal residence, or
o purchases a replacement principal residence and the transfer of the discharged
mortgage to that residence was not permitted.
Choosing a realtor:
When you put your home on the market, you are allowed to choose any third-party supplier (realtors,
lawyers, etc.) provided that they won’t charge more than the military’s pre-negotiated rates and that
they are arm’s-length suppliers. In other words, no family members – aunts, cousins, daughters-in-law –
can be engaged.
Private sale of your home:
If you decide to sell your home privately, you are entitled to reimbursement for the actual and
reasonable costs related to the sale. The reimbursement won’t exceed the commission that would have
been paid if a realtor had sold the property.
Home/Structural inspection:
If your realtor recommends a pre-sale structural inspection of your home in order to sell the property
and the relocation consultant agrees, you will be reimbursed for the inspection at no more than the pre-
approved corporate rate. A pyrite inspection may also be reimbursed.
Keeping your principal residence: Canadian Forces members who elect to keep their principal residence
receive an incentive equal to 80 per cent of the pre-negotiated corporate real estate commission rate
based on the appraised value of the principal residence, not to exceed $12,000.
Finalizing the sale: The sale of your home is not considered final until the transfer of ownership takes
place. You will be reimbursed for the real estate commission with a sum that shouldn’t be more than the
pre-negotiated corporate rates.
If your house doesn’t sell until after you have relocated, you or your spouse are authorized to return
there to attend the closing. You must take annual leave for this purpose, and the following conditions
apply:
qualified for TDRA;
subsequently sold the former residence;
could not arrange to courier documents/materials between legal firms;
could not complete the sale by a power of attorney; and
clearly demonstrated that all other avenues were exhausted.
The maximum reimbursement you can claim is as follows:
up to two days travel, meals and incidentals;
one night’s lodging; and
return transportation by the most economical means.
Since you are expected to be present at the closing of the sale transaction, so fees for a Power of
Attorney aren’t usually reimbursable. However, if you can’t attend, you may be reimbursed for various
costs, as follows, provided that your base commander and base administrative officer certify your
unavailability:
Cost to courier documents between legal firms;
Power of Attorney; and
Mandatory attending fees as per provincial requirements.
Reimbursement for financial losses from home sale:
You are eligible for reimbursement if you sell your home for less than you originally paid for it. You are
entitled to receive 80 per cent of the reimbursable amount or $30,000, whichever is less.
The reimbursable amount equals the difference between the original purchase price and the sale price,
minus any reduction in the sale price that is identified in the agreement of purchase of sale and is due to
any repairs or replacements required to the home prior to selling.
Reimbursement for real estate commission:
If you don’t claim a real estate commission, you are entitled to receive 80 per cent of the commission,
based on the appraised value, up to a maximum of $12,000. This incentive will be paid into personalized
funds. Your eligibility depends on the following conditions:
You or your dependants occupying the residence immediately prior to official notification of the
posting;
Application for this incentive within 15 working days after receipt of the appraisal; and
Signing a waiver foregoing any future reimbursement of real estate fees, legal fees or other
related disposal costs for the property. If you decide to move back into this residence on a
subsequent posting, this home would be designated as a principal residence for any further
relocation that might occur after re-occupancy.
Temporary assistance for maintaining dual residences (TDRA):
Actual and reasonable expenses associated with maintaining two residences are reimbursed provided
that the former residence remains unsold, vacant and actively marketed. Remember, the sale of a
residence is not considered final until the ownership is transferred.
The expenses of maintaining two homes is offset for six months. Such expenses include:
Interest charges on a first mortgage (or on a second mortgage if there are no charges on a first
mortgage);
Taxes (i.e., property, school);
Utilities (i.e., electricity, heating, alarm monitoring);
Property maintenance (such as lawn cutting, snow removal, and minor maintenance);
Insurance (house insurance including additional insurance costs for empty residence); and/or
Rental of a mobile home pad.
If you haven’t sold your home before the move and haven’t had an offer in two months, request the
marketing incentive benefit to ensure that your home is being actively marketed. If the real estate agent
recommends their use and the service provider is supportive, reasonable expenses will be reimbursed.
However, all marketing incentives must be clearly identified on the original or amended Property Listing
Agreement and the Offer to Purchase documents.
Remember, relocating need not be a fear-inducing, painful experience. The Wilson team is here to assist
you in making your move an exciting one, as we assist you and support the DND-assigned moving
specialists. Questions? Get in touch with us at www.wilsonteam.ca and be sure to check out our blog
post on buying a home in a new area. (Link to follow once written!)
Refinancing Your Home
Refinancing Your Home
“To Refinance or Not, That Is the Question.” Not quite what Shakespeare wrote in his play, Hamlet, but
to the question is an important one. There are times during your life when you may want to consider
refinancing your home, and the Wilson Team of Mortgage Professionals is here to assist you in deciding
if and how to proceed.
Why would you want to go through the paperwork and hassle of getting a new mortgage? There are
many reasons why refinancing can be beneficial, including:
To get a better interest rate and save money in the long term;
To switch from a fixed-rate mortgage to a variable rate, or vice-versa;
To fix your credit score;
To consolidate multiple mortgages;
To pay off debt;
To buy out a spouse (see spousal buyout);
To fund a child’s university tuition
To buy a vacation property or a home for university-age children (Add links); or
To put away some money for emergencies.
If you’re hoping that refinancing will provide you with additional funds for debt repayment or extra
projects, such as renovations, ask the Wilson Team about a cash-out mortgage, a new mortgage that
replaces the old with different terms and a larger sum of money. Once you’ve paid off your old
mortgage and related fees or taxes, the remainder of the money is yours to spend as you see fit.
Serious Decision
Deciding whether to refinance your mortgage shouldn’t be a snap decision, and you shouldn’t do so in
order to purchase an asset/object whose value will deplete over time – a fancy car, for example.
Perhaps you can get the money you need from an alternative source, such as a home equity line of
credit (HELOC), so talk to the Wilson Team of Mortgage Professionals to assess your options.
Determine whether you can afford the monthly payments that your new mortgage will require.
Remember, there will be costs associated with refinancing your home, including an appraisal and legal
fees, so add these to the cost of the transaction.
Also, be certain that your credit score is respectable; if not, you’ll need to rehabilitate it before applying
to a lender.
Once you decide that refinancing sounds like a viable option for you, you’ll need to have your ducks –
and your paperwork – in a row. This includes determining whether there will be a penalty for pre-paying
your existing mortgage and determining how much additional cash you need/are eligible to receive.
Here are the Wilson Team’s 10 Tips for Making Refinancing Pain-Free:
1. Know your Credit Score: Credit Karma (www.creditkarma.ca) is free and will help you calculate
this key number, which your lender will require.
2. Know what is your home worth – check MPAC, ask you local realtor, obtain an appraisal
(arranged by the Wilson Team), ask a broker who can check online for you.
3. Know you’re the details of your current mortgage: your rate, your remaining amortization, the
term of your existing mortgage, and the full payment, excluding property taxes.
4. Know your annual property taxes.
5. Know the penalty for paying off your mortgage early. It could be as low as three months’
interest and as high as five per cent of the mortgage balance. This is solely dependent on your
lender. Banks penalties are generally much higher than their lending competitors (See attached
Merix Penalty.).
6. Know how much you’ll need to pay for legal fees, title changes, appraisal costs, and land transfer
taxes. All of these could be applicable. Ask your broker and some fees may be paid up front on
your behalf.
7. Have all your paperwork ready, including your current mortgage agreement, the title to your
home, your property tax bill and proof of income.
8. Know your break-even point. If the new deal doesn’t meet your needs, don’t sign on the dotted
line.
9. Don’t shop rate – there are other aspects to the mortgage, such as length of the repayment
term. Take all key factors into account.
10. Don’t time the market for rates. This is a game you can’t win. If you wait for the perfect rate,
you’ll never make a move and you also may miss out on an advantageous rate.
We at the Wilson Team of Mortgage Professionals are here to assist you every step of the way with this
process, so don’t hesitate to give us a call.
Reverse Mortgages, a Guide for Canadians
Reverse Mortgages
A Guide for Canadians
Courtesy of The Wilson Team, www.wilsonteam.ca
1. Introduction
2. Background
3. Eligibility
4. Availability
5. Cash in Hand
6. Benefits
7. Considerations
8. Get Expert Advice
9. By the Numbers
10. Reverse Mortgage vs. HELOC
11. The Process
12. And Furthermore (FAQs)
Introduction
If you’re a Canadian who is 55 or older, you undoubtedly have dreams for the coming years, including
paying off your mortgage, being debt free, travelling, building your dream deck or patio, helping your
children financially or spoiling your grandchildren. Wonderful dreams, all of them, but they require
money to implement. Luckily, there’s a source of funds available to you if you’re a homeowner: the
equity you have in your home. Why not put it to work for you? We at the Wilson Team of Mortgage
Specialists are here to guide you through the process.
One of the best ways to turn your home equity into a liquid asset is through a reverse mortgage. In
Canada, this instrument is called a Canadian Home Income Plan (CHIP) mortgage. It allows you to access
the existing equity in your home without selling it or paying it back according to a schedule. The money
you receive is tax free and is available to you as long as the home remains your principal residence.
What could be easier?
1. Background
Reverse mortgages, or CHIPs, were founded in 1986 as an annuity-based solution addressing the
financial needs of Canadians who wanted to access the equity of their top asset: their home. They
are backed by HomEquity Bank and have a reputation as a stable source of funds.
2. Eligibility
In order to qualify for a CHIP, all people listed on the mortgage must be 55 or older and the money
must be borrowed against the mortgage for your principal residence.
3. Availability
Reverse mortgages are available in the Ottawa area, but not in all locations in Canada. They cannot
be obtained for second homes.
4. Cash in Hand
Generally, you can borrow up to 55 per cent of the value of your home. Since your home may
increase in value over time, the amount available to you may also grow.
The amount you are approved to borrow depends upon your home’s geographic location, the type
of housing you own, your age and gender, and the amount of your current debt on your property.
5. Benefits
You can access the money as soon as the mortgage is approved.
The money is tax free.
You can receive the money in one lump sum payment or in monthly withdrawals.
There are no conditions on how you can spend your money.
There is no need to pay off a reverse mortgage until one of the people on the mortgage dies
or until you sell your home.
The amount you owe can never exceed the value of your property.
You and your beneficiaries will not be responsible for any shortfall if interest rates increase
and housing values drop.
6. Considerations
Funds from a reverse mortgage must first be used to pay off all secured mortgage loans on
the property
CHIP mortgage rates are generally a percentage point or two higher than those for standard
mortgages
Start-up costs must be assessed. They typically include an application fee, home appraisal
fee and costs for independent legal advice. Fees can easily reach $2,000 to $2,500 which is
deducted from the principal received.
The amount you’ll be able to pass on to your beneficiaries is affected as your equity
decreases.
Canadian reverse mortgages have an important safeguard built in so that you can never owe
more than your home is worth.
7. Get Expert Advice
The Wilson Team works with reverse mortgages on a daily basis and our professionals are
skilled at advising you about their benefits and drawbacks. They will help you assess your
options using questions such as:
How much money do you require?
How much is your monthly intake now and in the future? What can you count on?
What kind of lifestyle to you want to lead?
What does your estate planning look like?
What will happen if you are not able to stay in this home and or require assisted living?
8. By the Numbers
If you are worrying about losing equity in your home, consider this: with a reverse mortgage on
half your home, your home would only have to increase in value at half the interest rate of the
reverse mortgage for you to not lose any equity at all.
For example, if you take out a $500,000 reverse mortgage on a $1 million home, and the
interest rate is five per cent, your home would only need to increase in value by 2.5 per cent
(half the interest rate) to ensure you don’t lose any home equity.
$500,000 (the mortgage value) x .05 (per cent, the annual interest rate) = $25,000
A 2.5 per cent annual increase in equity x 1,000,000 (the value of your home) = $25,000
So, take heart; as long as the value of your home grows at half the rate of the reverse mortgage
interest rate, you will retain your equity. In today’s real estate market, this is almost a given.
9. Reverse Mortgage vs. HELOC
A Home Equity Line of Credit is another way to cash in on the equity you have in your home. It is
a loan that is registered against your home, and like any loan or credit card, it required monthly
payments. If you can’t make the payments, you risk losing your home.
In addition, the approval process for a HELOC is more rigorous than for a reverse mortgage,
including a credit check and income verification.
A HELOC is most useful when used an emergency fund; you can be approved without
withdrawing any cash until you need it.
10. The Process
You apply for a reverse mortgage through the Wilson Team.
One of our reverse mortgage specialists will call you to discuss next steps and make sure
you are completely happy with everything.
If you decide to proceed, we'll send you the full information on the amount for which
you qualify and what is required to complete the deal.
A home assessment is required to get a correct valuation. This is the only out of pocket
cost you will incur during the process.
The Wilson Team collects the required paperwork, including identity verification,
retrieving your credit score, information about your income and any additional
paperwork. While your credit score and income are not usually a factor, the Wilson
Team must consider them, given mortgage rules and regulations in Canada.
Before making a commitment, we will require that you get independent legal advice
from a lawyer; we will even speak to family members if you wish
You receive your money! You can set up your reverse mortgage to be one lump sum
payment, or continual monthly withdrawals.
11. And Furthermore (FAQs)
Q. Will the bank own the home?
A. No. The homeowner retains title and maintains ownership of the home. It’s required for the
homeowner to live in the home, pay taxes on time, have property insurance and maintain the
property in good condition.
Q. Will the homeowner owe more than the house is worth?
A. The homeowner keeps all the equity remaining in the home. In our many years of experience,
more than 99 per cent of homeowners have money left over when their loan is repaid. The
equity remaining depends on the amount borrowed, the value of the home, and the amount of
time that has passed since the reverse mortgage was taken out.
Q. How do | receive the money?
A. You have the option of receiving all the money you're eligible for in one lump sum advance;
you can take some now and more later; or you can receive planned advances over a set period
of time.
Q. What fees are associated with a reverse mortgage?
A. There are one-time fees to arrange a reverse mortgage such as an appraisal fee, fee for
independent legal advice and our fee for administration, title insurance, and registration. With
the exception of the appraisal fee, these fees are paid for with the funding dollars.
Q. What if the homeowner can’t afford payments?
A. There are no monthly payments required as long as the homeowner is living in the home.
Q. Should reverse mortgages only be considered as a loan of last resort?
A. No. Many financial professionals recommend a reverse mortgage to supplement monthly
income instead of selling and downsizing or taking out a conventional mortgage or a line of
credit.
Remember, there’s no need to deny yourself some of the pleasures of growing older. The Wilson Team
of Mortgage Specialists will be happy to help you tap into the equity you have worked so hard to
accumulate.
Call us at 613-695-MORTGAG or find us online at wilsonteam.ca
You, Too, Can Buy a Cottage: Mortgages for Vacation Properties, Both Waterfront and Landlocked
You, Too, Can Buy a Cottage: Mortgages for Vacation Properties, Both Waterfront and Landlocked
So, you want to buy a vacation home, but don’t have the cash to plunk down the full purchase price?
Don’t worry, the Wilson Team (wilsonteam.ca) of mortgage professionals has your back! We are experts
in mortgages tailored to suit the buyer’s needs, so you can rely on us to assist in making your cottage
dreams a reality.
Mortgages for vacation properties fall into two classes: Type A and Type B.
A Type A cottage property:
Is essentially a second home;
Has a full foundation (immovable);
Is a four-season property with central heating and year-round road access; and
Is located in an area that has reasonable and demonstrated resale value.
A Type B cottage property:
Requires a full foundation (immovable);
Doesn’t require winterization; and
Doesn’t require year-round access.
Vacation Property Value
The amount of mortgage financing you require is dependent on the property’s value. The value of your
vacation property is determined by an assessment, conducted every four years by the Municipal
Property Assessment Corporation (MPAC). The newest assessment values will be available on Jan. 1,
2020.
If your property is a waterfront home, it will generally be more valuable than an inland cottage. MPAC
will consider your property a waterfront lot if “it has direct access to a natural or man-made waterway
such as a lake, river, channel or canal. Properties separated from the water by a right-of-way, private
road or unopened road are also considered waterfront.”
Five key factors contribute to MPAC’s assessment and account for 85 per cent of the property’s value:
Location;
Square footage of living area;
Property’s age;
Lot dimensions; and
Quality of construction.
Other considerations include the body of water your property is located on, the amount of water
frontage you have, the shoreline composition, sanitary services and water source.
How Much Cottage Can You Afford?
Undoubtedly, you’d like to purchase that lovely Muskoka cottage once owned by your favourite
Canadian rock star! The real question is whether you can afford it. You can estimate the value of the
cottage you can afford using the amount of your planned down payment as a guide.
If you plan to make a down payment of $25,000 or less, use this formula to determine your maximum
purchase price: down payment / 5% = maximum affordability.
If your down payment will exceed $25,000, you’ll be able to determine your maximum purchase price
with this formula: down payment amount - $25,000 / 10% + $500,000.
With the estimate in mind, you can begin visiting affordable properties and thinking about financing and
the Wilson Team members are ideal partners in helping you access the necessary funding.
Funding Your Cottage Purchase
Buying a cottage requires money, as the MLS listings attest. Most people don’t have the cash on hand to
purchase a vacation property outright, so they look to lenders to help them finance the transaction.
The majority of buyers finance the purchase of a cottage by:
Refinancing your principal residence, removing enough equity to finance your purchase;
Using a home equity line of credit;
Obtaining a mortgage for the cottage property itself; or
Combining the aforementioned options.
In addition, ratehub.ca reports that many Millennials who couldn’t otherwise afford a cottage are
renting apartments in cities and putting their home ownership dollars into purchasing a cottage and
considering it a principal residence. (https://www.ratehub.ca/blog/millennials-are-using-this-mortgage-
hack-to-buy-vacation-homes/)
The Wilson Team, with their thorough knowledge of lenders and mortgage options, can assist you in
determining which of these approaches makes most sense for you and in obtaining financing that meets
your needs.
In deciding whether to approve a loan or not, lenders will look at the property itself and consider many
of the same factors that assessors examine, including its marketability. This means examining the
property’s proximity to major markets, whether there is year-round access, whether or not it’s a four-
season property and availability of a safe and consistent water source.
Of course, the major factor in deciding whether to loan you money revolves around your ability to repay
that loan. Lenders look at your income, your Gross Debt Service Ratio and your Total Debt Service Ratio,
your credit rating, your down payment and the cash you have available to meet closing costs. Often,
interest rates for vacation property mortgages are 0.1 to 0.2 per cent higher than a standard home
mortgage, since the house isn’t occupied year-round.
It sounds daunting, but it needn’t be stressful. We at the Wilson Team are ready to walk you through all
of the ins and outs of financing a vacation property and finding the solution that’s best for you. We’ll be
happy to help you banish your worries. Call us at 1-855-695-9250 or 613-440-0134. We’re here to help.
Mortgage into a tool for wealth creation
Hello, I’m Kelly Wilson of the Wilson Team of mortgage professionals. My colleagues and I want to help
you finance the property you want, while teaching you how to get the most from your real estate
investment dollar. It may sound complicated, but it’s not.
A mortgage is a tool that allows you to build financial security for yourself and your family. I’ve done it
myself. I bought my first property at 21 as a way of deleting my biggest expense – housing -- from my
balance sheet. I rented out part of the property and that money paid the mortgage while I saved for
another down payment. Investing in property has put me in a position to take care of my family in good
times and bad. It’s what we all dream of doing, but we may not know how to go about it.
That’s why people turn to the Wilson Team. We’re passionate about helping our clients find the path to
financial security, just as we have personally. We teach you to look at mortgages differently.
A mortgage should be a tool to increase wealth, not a liability that makes you shudder. We show you
how to invest in real estate, not mortgages, so you’ll have the financial means to cope with any life crisis
that may come your way. As parents and children ourselves, we understand how important that security
can be.
Creating wealth today requires thinking outside the box and we help you do that. Take David, for
example. He came to me when his mortgage was due for renewal. He and his fiancée planned to save
for two years so they would have enough money to buy another house. I asked him what he would do if
I could show him how to free up $900 a month, improve his cash flow and give him five per cent to allow
him to purchase another home now. We lumped his mortgage, car payment and student loan together,
refinanced and freed up enough cash for him to rent out his current property and put the down
payment on another. Not traditional, perhaps, but effective.
Here at the Wilson Team, we draw on our knowledge from real estate, banking and investing to show
you how to uncover money you didn’t even know you had so you can start investing it. Our team of
experts can help you create a sound plan tailored to your goals and risk tolerances and lead you to
financial freedom.
The Wilson Team is here for you and your family. Turn to us and turn your mortgage into a tool for
wealth creation.
Quelques conseils pour réparer un crédit endommagé
Malheureusement, de nombreux emprunteurs oublient l’importance d’avoir un bon crédit et ils ce retrouvent souvent refusé un emprunt grâce à leur inattention. Heureusement, avec un peu de discipline et de dévouement, ils peuvent se remettre sur la bonne voie. Chez l’équipe Wilson nous pouvons vous aider avec de bons avis pour garder une bonne cote de crédit.
Frais supplémentaires, plus grosses mises de fond ou simplement des refus, sont des conséquence communes faisant face aux emprunteurs avec des pauvres et même moyenne cote de crédit.. Selon le président de CanWise Financial, James Laird, il est impératif que les clients apprennent les bases de paiements responsables.
«S'il ne s'agit pas d'une fiche de faillite ni d'une proposition de consommateur, nous voyons généralement des emprunteurs dont le solde est supérieur à leur limite. Par conséquent, même si c'est quelque peu contre-intuitif, obtenez une limite plus élevée, car cela améliorera votre pointage de crédit si vos habitudes de consommation ne changent pas, " il a ajouté. "Si deux personnes dépensent $2000.00 et la première personne à une limite de $10,000.00 cette personne verra son score augmenter. En même temps si l’autre personne a une limite de $2000.00 il verra sont score détériorer rapidement.
En parlant de contre-intuitif, ont conseille aux clients qui tentent de réhabiliter leur crédit de ne pas effectuer de paiement avant la fin du mois. Si ont paye trop tôt dans le mois, ceci es vu comme si l’argent n’avait jamais été dû donc ceci ne vous aide pas.
Parfois, nous voyons les gens les plus organisées rembourser leur carte de crédit juste avant la fin du mois, et dans ce cas, les sociétés de crédit cesseront de faire rapport au bureau. Si vous le payez le même mois que vous avez acheté, c’est comme si vous ne faite pas de paiement ou d’achat. Laissez le mois se terminer et effectuez votre paiement pendant la période sans intérêt, comme dans les 10 jours ou peu importe ce que vous avez. Il est important de démontrer que vous devez un peu d’argent mais que vous êtes aussi diligent pour effectuer des paiements.
Dans le cas des faillis, leurs facilités de crédit auront été fermées et il est recommandé donc il est important de commencer avec du nouveau crédit le plus vite possible afin que la réhabilitation puisse commencer.
Il est important d’obtenir de nouveaux moyens de crédit le plus rapidement possible après avoir eu un problème. Nous recommandons que, si une personne a fait faillite ou une proposition de consommateur, à obtenir une visa prépayé afin de pouvoir rebâtir le crédit car même si prépayé la carte est rapporté au bureau de crédit.
Plusieurs conseillers financiers recommandent à leurs clients qui ont un crédit tordu, d’utiliser leur carte prépayée de 50 à 70%.
"Si le taux atteint 90% ou plus, cela montre à la banque que votre capacité à rembourser la dette en cours est compromise, car vous êtes sur le point de risquer de manquer un paiement ou de ne pas respecter vos obligations mensuelles."
Si vous prévoyez manquer un paiement ou autre problème. Il est primordial de faire un appel a votre créditeur et dire:" Je suis en retard et je veux me rattrapé, alors pouvons-nous trouver un plan de remboursement? Ceci est extrêmement efficace. C’est dans l’intérêt des créditeurs de travailler avec vous car ils ne veulent pas que vous fassiez défaut. Nous recommandons de toujours faire face à vous créditeurs et vous allez réaliser que les choses iront beaucoup mieux.
Tags : Dette, planification financière, premier acheteur, conseils hypothécaires, bureau de crédit, score de crédit, Intérêt hypothèque
Home Buying for Millenials
Home buying for millenials. New study finds that this increasingly important home buying cohort struggles to enter the real estate market in Canada.
Lack of emergency funds
Nearly half of Canadian home owners lack a sufficient emergency fund. 40% have difficulty meeting ownership costs, according to a report by the Manulife Bank of Canada.
“It’s undoubtedly stressful living paycheque-to-paycheque.” Rick Lunny, president and CEO of Manulife Bank of Canada, said. “If you don’t have extra cash at the end of the month, it’s very difficult to build a rainy-day account. For those who find themselves in this situation – a good place to start is working with an advisor to create a budget. Many people are surprised at how much of their money is going toward things that they don’t consider that important.”
Role of real estate agents
Agents can also play a part in helping clients better prepare for the home buying process by schooling them on all the extra expenses that come along with realizing the home ownership dream.
According to the report, the average Canadian home owner has a mortgage of $174,000 in mortgage debt and more than a quarter of their income goes toward making those payments. Nearly 30% say they spend 30% of their net income on those payments.
Financial buffer
“A financial buffer is an important part of a financial plan,” Lunny said. “A high-interest savings account is a good option. Or, if you’ve got a home equity line of credit, you could use your savings to reduce your debt and save interest - and still have access to that money if an emergency arises.”
The study also points to the possible ignorance of Millenials around the current state of mortgage which, despite recent increases, remain at historical lows.
Despite this, one-third of Millenials say mortgage rates are too high.
Home Buying for Millenials: If you are a first time home buyer or just thinking to organize your finances contact Kelly Wilson at 613 695-9250. I would be more than glad to sit down with you to help you purchase your first home.
Source: Repmag.ca
Never miss great tax-time freebies!
Never miss great tax-time freebies!
Here are two tax-time advantages available for upcoming first-time buyers and those who took the plunge last year.
- The 90-day boost. If you’re buying your first home now and it’ll be at least 90 days before your move, let’s talk. The Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available for your purchase. First, make as big an RRSP contribution as you can – up to your contribution limit or $25,000 per person. You can even use your downpayment savings for this. Big RRSP contribution means a great 2014 refund. Then, after 90 days, you can go back into your RRSP and redeem your contribution under the HBP program. So you’ve got your original downpayment funds back PLUS a nice fat tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership!
- $750 for first-time buyers. Don’t leave money on the table if you bought your first home last year! You may be able to take advantage of the Home Buyers Tax Credit (HBTC) when you file your tax return. The $5,000 non-refundable HBTC provides up to $750 in federal tax relief. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. For more information, visit the Action Plan website at www.actionplan.gc.ca/en/initiative/first-time-home-buyers-tax-credit.
Buying a home in 2017?
Buying a home in 2017? Unfortunately there has been some recent changes in Canada. Make sure to plan well ahead of your search. Things got a bit more restrictive since October 17th 2016. Here’s how to prepare for the purchase.
If you’re thinking about buying a home in 2017, October to December is the perfect time to “warm up” for the house hunt so you can hit the ground running in the new year.
Here is a great list about what prospective home buyers should do to ready themselves for buying a home. From organizing your finances to save money to finding a real estate agent and mortgage lender, there is plenty to keep you busy!
1. Check your credit score
A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better. Good credit scores are very important when obtaining a mortgage. Typically, you’ll get the best interest rate on a loan if your score is 740 and above. So a higher credit score should help you getting a lower mortgage rate. If your credit score falls short, get busy repairing it. Correct any errors that might be on your report, start paying all your bills on time, and get your credit limit raised. Note, though, that you shouldn’t max out your card each month. It’s best to use 30% or less of your total available credit. If you would like to know your credit score let me know and I'd be glad to find it for you!
2. Don’t open new credit cards
It can be difficult to turn down those zero interest rate credit card offers you receive in the mail or see on the internet. Tempting as saving at checkout can be, opening new credit may hurt your chances of getting a mortgage, or at least of getting the best rate on a loan. Do not create another line of credit by getting a new credit card. What could save you a few dollars now could cost you far more in the long run if your mortgage payments will be higher. Use cash to purchase Christmas gifts instead of your credit card. Try to pay it off monthly and do not carry a balance. This will send the right message to the mortgage lenders when the time comes to apply for a mortgage.
3. Suggest financial gifts for the holidays
Besides the mortgage loan, you’ll need a sizable amount of cash to buy a house. There’s the down payment to consider, closing costs, and moving costs. You should also set aside money for unexpected repairs and costs, says Brian Betzler, regional sales manager at TD Bank. Not being prepared “is probably why nearly half of millennials incurred up to $5,000 in unexpected costs during the mortgage process, according to a recent TD survey,” he says.
A potential solution? Bulk up that emergency fund. “Instead of getting gifts for the holidays, [prospective home buyers] can suggest cash instead that will be put toward their home,” says Paul Sian, a Kentucky and Ohio agent. And remember, you might be getting some money back after you file your tax return. Don’t blow it on vacation. “A tax refund is a great way to add to your cash reserves for a down payment,” says David Hosterman, branch manager of Castle & Cooke Mortgage in Colorado.
4. Interview potential real estate agents
If your neighbor, relative, or friend of a friend happens to know (or is) a real estate agent, that’s great. This person might be the perfect agent for you. But you owe it to yourself to shop around. “Look for a real estate agent that is knowledgeable, good, integral, and can assist you in reaching the goal of home ownership,” says Chantay Bridges, a Los Angeles, CA, real estate agent. “Make sure they are not a novice, new, or just unaware of how to do a specific transaction.” The end of the year is usually a slow time for agents, so chances are, they’ll be more accommodating to making an appointment on your schedule.
5. Keep tabs on interest rates
If you hear that interest rates are at historic lows or that interest rates are on the rise, you should not assume that you can get the rock-bottom rate. Not everyone gets the same interest rate on a mortgage loan. It depends on your financial picture and on the lender you choose. “Everyone knows that home prices are, at least to some extent, negotiable, but we find loans to be the same,” says Warren Ward, CFP with WWA Planning & Investments. He advises that home buyers shop around for the lowest interest rates. Note that closing costs can vary too, so discuss with your real estate agent ways to keep yours down. You can always save some money by shopping around for movers, lawyers, appliance sales, home inspectors and whatever else you may need when moving to your new home.
6. Find a mortgage lender
Before you even start looking for a home (and yes, we even mean browsing online listings), look for a mortgage lender to find out if you can afford to buy a home. If you can’t right now, there’s no use torturing yourself by finding your dream home that’s just out of reach. But how do you find a lender? Start with your own bank. Then ask your real estate agent for the some mortgage brokers. Compare these offers. Look at what they offer, costs, points, and how long to close. Once you know how much home you can afford, perform your home search based on your pre-approval amount or less.
7. Get preapproved
When a lender gives your financials the once-over and pre-approves you for a mortgage, you’ll be able to show sellers that you really can buy their house. But how do you get pre-approved? By preparing a few documents, which you can do several months in advance of the actual purchase. Here are some of the things you need to buy a house.
Tax returns for the past two years
T4/T4A forms for the past two years
Paycheck stubs from the past few months
Proof of mortgage or rent payments for the past year
A list of all your debts, including credit cards, student loans, auto loans, and alimony
A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts
DO NOT DO THESE if possible, before your home purchase: change jobs, make big purchases on credit (car, furniture, travel etc) and miss payments.
Buying a home in 2017? How are you getting ready? Send Kelly Wilson an email or call me 613 695-9250
Why invest in condos, town homes or multi-family properties
Why invest in condos, town homes or multi-family properties: For the purpose of this article lets consider a multifamily type dwelling — a condo, duplex, or townhouse — and they can be a smart choice.
With interest rates at historic lows and a strong rental market in Ottawa, people are investing in real estate. Many investors automatically think “single-family home” when they set out to buy a property, and while this may be a smart move in some cities, there are definite advantages to buying multifamily real estate that should not be overlooked.
Here are five tips from real estate pros on why invest in multi-family housing may be a smart choice:
1. There’s less maintenance with condos and townhouses
If you’re buying a property with a homeowners’ or condo association (HOA) that takes care of the exterior (roof, windows etc) you’ll have fewer landlord responsibilities on your plate. With most condos, everything outside your own walls is typically considered a common area, which your HOA takes care of using the dues you pay. These common areas usually include the landscaping around the building, the roof, parking garage, and amenities such as a pool and clubhouse.
Remember to factor in the monthly condo fees dues before you invest: Dues in condo and townhouse communities could run you hundreds of dollars per month. Certain condos have restrictions on renting out the units. Make sure to have your Ottawa real estate agent and your real estate lawyer analyze the condo document before purchase.
2. You can save on taxes and insurance with a duplex
Think of buying a duplex or triplex as buying a potential deal. A duplex is really one structure. But one that has been divided into two apartments, either side by side or upstairs/downstairs. As such, when you buy a duplex as an investment property, you can rent out one of the units and live in the other. Alternatively, you can rent out both units.
3. It’s easier to get started in investing with a duplex
You typically need a bigger down payment to buy investment property than you do when buying a property you will live in. For mortgage advice on renal properties in Ottawa contact an experienced Ottawa mortgage broker. A great mortgage expert can help obtain that all-important first mortgage on an income property. If you purchase a duplex or triplex you may qualify it differently if you live in one of the units.
4. You could make more money with a multifamily unit
The potential to earn more money — otherwise known as having “greater cash flow” in investor lingo — can be greater when you buy multifamily homes for sale. “The rent-to-purchase price ratio is almost always much better with multi-unit investments,” says Casey Fleming, author of The Loan Guide: How to Get the Best Possible Mortgage. They can provide cash flow better than a similarly priced single-family house.
5. You’re looking for retirement income
Baby boomers have always broken new ground, so as this group approaches (or is in) their retirement years, they’re redefining the way they live. Many boomers choose to live in age-55-plus retirement communities. Others prefer to rent. So a shared-housing arrangement can present a great investment opportunity for homeowners. Empty nesters who have plenty of spare bedrooms can rent out one or all of them to fellow retirees. If you do this, make sure you have a lease and specify house rules. Such as a laundry schedule, which food will be shared, and who pays for which utilities.
Why invest in condos, townhomes or multi-family properties: For more specific info on how to obtain financing for income properties contact the Wilson Team.