You’re likely asking yourself, what is the dilemma that self-employed workers face? Well, with more and more Canadians joining the ranks of the self-employment every year, one has to ask themselves how they are going to tackle the age old question, how much does one write off vs how much income does one claim on their taxes. We all want to earn as much money as possible and pay as little income tax as required.

This was my train of thought until the topic of ‘paying taxes’ was brought to my attention by a friend that’s an accountant. As he said, paying income tax isn’t such a horrible thing, in fact it’s a necessity which provides for our infrastructure and without it the ‘world’ we know would be drastically different. Here was the response from him after I re-posted a reference to INCOME TAX RELIEF DAY that I saw on social media.

“I would actually look at it more positively and say that I/we spent this money to live in a great country, province and municipality and it’s worth every penny in taxes spent. I will guarantee you there are billions of people on this planet that would switch positions with us in a second and remember this so called date (INCOME TAX RELIEF DAY) is based on the average Canadian family income of $45,000 and is based on all taxes including not just income taxes, but property tax, sales taxes, health taxes, fuel taxes and much more. So technically not all of it is going to Canada Revenue Agency (CRA). Some of it is going to municipal and Metro Vancouver. For more information go to the Fraser Institute website https://www.fraserinstitute.org/research-news/display.aspx?id=22954. ”

After reading over this message, it got me thinking about how some self-employed people report their taxes and the effect that it has on their chances of qualifying for a mortgage. Besides the duty to provide to our country, we all have a personal desire to provide as much as possible for our family. It’s a so-called ‘tug-of-war’ of who gets your money and how much of it. Here’s where the dilemma gets complicated if you want to borrow money from a lender to purchase residential real estate.

The federal Government of Canada regulates the CRA as well as the lending criteria and policies followed by ALL the ‘A’ lenders. ‘A’ lenders are our chartered banks and non-bank or monoline/investment lender. We also have credit unions that are provincially regulated but follow the CMHC lending criteria, which is federal. Having more ‘cash’ in your pocket actually allows you to borrow less. Showing more income claimed, which requires you to pay more tax allows you to borrow more money if desired. ‘A’ Lenders assess their risk management for lending money to borrowers on historical earning and in this case, if one is self-employed then they require a 2 year average based on T1 Generals or in some cases Notice of Assessments (NOA).

It’s a CATCH 22 and you (and your qualified accountant) need to decide which path you’re going to follow; write off maximum expenses and claim ‘little’ income or claim a ‘healthy’ income and pay more income. Neither is right or wrong.

Upon getting the urge to buy residential real estate a detailed conversation on how ‘your income’ is structured should be had with their Mortgage Expert and Certified General Accountant. Once you have chosen which style of accounting your business will adopt, you just have to be prepared to follow the lending guidelines. Plus, it’s really not that bad either way.

Let’s face it, everyone wants the lowest rate possible when it comes to their mortgage. As a Mortgage Expert, it’s something that I seek for every client. But not all clients are eligible for the lowest rate for a number of different reasons. Two main reasons are because of credit blemishes and, of course, lack of income reported.

Business Case

The following is a fictitious scenario that represents a self-employed person that writes down expenses in order to minimize CRA income tax.

Jane is a business owner in Vancouver. She has a modest business that is experiencing growth year after year. Jane enjoys the many perks of being a business owner, especially the tax breaks that come along with it!  Since Jane is able to work with her certified accountant, and considerably write down her income, she often saves thousands of dollars a year on taxes.

Jane would like to purchase a new home. She has a 20% down payment to place on a home, and knows that she grosses more than $100,000 per year in her business. However, since she currently writes down her income to $20,000 per year, her Mortgage Expert has just informed her that she will need to state her  income with a ‘Non-Prime’ or ‘B’ lender for approval.

Now if Jane claimed $100,000 per year for the last 2 years, she may qualify for the best rate out there from an ‘A’ lender. However, let’s look at what that really means:

Jane has saved $23,299 per year because of the tax laws the government has legislated for self-employed business owners. Now let’s compare the interest on a ‘typical’ verified-income loan, and a ‘non-prime’ stated-income loan.

** For ease of comparison to BC yearly tax rate– 1 year term has been used. Rates are approximations for example purposes.**
Jane is paying $3,545 more in interest per year, but her income tax savings are $23,299 per year.  She is actually saving $19,754 per year more than the typical ‘verified-income’ employee that was able to receive a mortgage interest rate of 2.69%.

With all entrepreneurs there is one thing in common – they are all savvy and driven to succeed, or fail, on their own terms.

It takes an extreme amount of hard work to get a business from the infancy stage to a self-sufficient entity that produces a constant and steady flow of revenue. Business owners all want to save money while at the same time earning and establishing a presence in their chosen space. Business financials are all structured differently and, depending on how one chooses to operate, will dictate how they can proceed once it’s time to seek residential real estate financing.

If you are self-employed, make sure to consult with us at Dominion Lending Centres to find out how your mortgage can be tailored. Every mortgage scenario is completely different from the next, so make sure yours fits correctly and you are informed before you start the financing process.

Courtesy of Michael Hallett, AMP – DLC Producers West Financial 

If you are considering building a new home, then you need to be educated on the difference between draw and completion mortgages. When you meet with a builder, there is tons of terminology and information you should be aware of so you are properly covered.

Completion mortgage means that the builder does not expect any funds until you take possession of your new home. Before the building process begins, you will have to go to your mortgage professional to get your application verified for the build to start. The benefits of this option are that you don’t have to put down any payments before you take possession, you can add upgrades to the mortgage, and the lender doesn’t require all final information from you until 30 days before you take possession. During this build process you will want to take extra care of your finances to ensure nothing changes, which could put your initial approval in jeopardy. Any changes that could possibly change your financial position and your credit should be discussed with your mortgage professional. This can include things like switching jobs, buying a car, and taking out any new loan.

A draw mortgage is preferred by home builders because it allows them to receive portions of funds during predetermined stages of the build process. To obtain a draw mortgage, the beginning process is the same and you will have to go to your lender to be verified for the build to begin. The benefits of this option are that the builder is able to manage their cash flow, inspectors are sent to verify stages of development are met, and funds sent to the builder are handled through a lawyer. There are some extra costs associated with this option though. Inspections will incur a cost upon each stage met and interest payments may be incurred as well. You also do not have the option to add upgrades throughout the build process with a draw mortgage as the first advance sets the loan in stone.

As always, if you would like to discuss draw and completion mortgages in preparation for your new build contact us at Dominion Lending Centres! We are happy to help you figure out your financial future.

Courtesy of Alim Charnania, AMP – DLC Regional Group 

Because the top secret formula has never been released there are common myths that are floating around about the ones credit score, here are the top 5.

1. Too Many Credit Cards Will Hurt My Credit Score

Actually, cancelling healthy active cards or accounts hurts more as all of the payment history is lost along with the type of credit granted. The average Canadian has 10 credit sources, having more does not hurt as long as you pay on-time. Along with paying on-time you should observe the rule of maintaining a balance at no more than 75% of the limit, but less is best. Applying for new credit every week will lower your score more.

2. Using Credit to Build a Credit Score

Remember to keep your balances low and manageable. The credit bureau only receives reports regarding your balances and payments. Making your payments on-time builds your credit history strength and score.

3. My Utilities and Internet are Paid On-time Every Month

These providers only check your credit to determine creditworthiness. They don’t report your payment history to the bureau. On the flipside, they only report when you DON’T pay. The other organizations that only report upon default are municipalities and ICBC. Pay your traffic tickets and bylaw infractions.

4. Checking My Score Will Decrease It

There are two types of inquiries, soft and hard. A soft inquiry occurs when you pull your own credit report. Credit card companies also pull soft inquiries when marketing pre-approval offers. A hard inquiry happens when submitting a loan or credit card application. A hard inquiry is one that is triggered by the applicant. Soft inquires do not affect the credit score. A consumer can pull their own credit score as many times as they wish without repercussions. Hard inquires affect the score slightly. These inquires are included in the calculation done for credit scoring. Recording the number of inquires a consumer has on the credit report allows potential lenders to see how often a consumer has applied for new credit. This can be a precursor to someone facing credit difficulty.

Too many inquiries could mean that a consumer is deeply in debt and is looking for loans or new credit cards to bail themselves out. Another reason for recording inquires is identity theft. Hard inquires not made by you could possibly be an identity thief opening accounts in your name. Inquires are required to remain on the credit report for at least a year. Hard inquires remain on the report for two years. Soft inquires only appear on the report that you request from the credit bureaus and will not be visible to potential creditors. Hard inquires appear on all credit reports. All inquires disappear from the report after two years. Only individuals with a specific business purpose can check your score. Creditors, lenders, employers and landlords are some examples of approved business people. The inquiry only appears on the credit report that was checked.

5. There is Nothing I Can Do Once a Payment is Late

Creditors are always willing to work with you if there is a late payment. If notified in a timely manner a late payment can be easily removed, just don’t make a habit of it. Some is better than none.

Courtesy of Michael Hallett, AMP – DLC Producers West Financial 

I continue to hear from my clients that their own bank or credit union is stating they HAVE to purchase life and disability insurance in order to be approved for their mortgage. This is called tied selling. “ Tied selling is when a financial institution requires a client to transact other business with the same institution as a condition of doing business with said institution .” We also have a local credit union where their approval letter states that the client or clients HAVE to purchase life and disability through them. So far I have always beat them to it and managed to win my battle but it is ridiculous how the banks and credit unions keep getting away with this. I have many clients tell me that their banks or lending institutions tell them they HAVE to.

With bank or credit union insurance, the underwriting is not done up front and really helps the client nothing except another monthly expense. With this insurance, the client is approved right away and what happens is the client pays and pays for years on this insurance. If they then become ill with cancer or some other health issue,  the bank or credit union then will not pay. Also the bank or credit union insurance is not portable, and in some cases, if the original mortgage details are changed, the borrower may have to reapply for coverage for the new mortgage even though it is with the same lender. This can also cause an increase in monthly premiums as their ages may have changed.

With Manulife Mortgage Protection Plan and any other insurance providers, the underwriting is done up front. If the clients does develop cancer or some other health issue, the policy still pays out. Mortgage Protection Plan is also portable and should the client refinance their mortgage and change lenders the client does not have to reapply and the premiums remain the same. The only time premiums would change is if the client were to top up their Manulife Mortgage Protection Plan because their new mortgage amount has increased.

There are different forms of underwriting that include the following, Post claims underwriting (medical history is reviewed at time of claim), Simplified Underwriting (some medical information is provided at time of application and a partial review determines level of coverage), and up front underwriting. (full disclosure complete with blood, urine and vitals are collected sent off and coverage is determined by lab results).

Not all lenders coverage have the same type of underwriting or types of coverages available for the borrower to apply for.

I always encourage my clients to have some form of life and disability in place to protect themselves and their families however I would discourage anyone from purchasing life or disability from any lending institution. I would gladly refer them to a licensed insurance contact of mine or offer Manulife Mortgage Protection Plan. Please chat with your mortgage professional at Dominion Lending Centres for more information.

Courtesy of Shirl Funk, AMP – DLC Red River Lending Ltd. 

Short Version

1. There are no changes to the first-time home buyer exemption limits (with the exception of point #2 which includes first time buyers).

2. All buyers (first-time buyers and repeat buyers) are now exempt from PTT on purchases of NEW homes up to $750,000 in value (think properties on which GST is being charged).

Note: the buyer must be a Canadian citizen or a permanent resident.

Note: there is a partial exemption for homes between $750,000.00 and $800,000.00.

3. PTT charged on amounts over $2,000,000.00 has increased to 3%. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.

Long Version

The impact of these changes will not change the Vancouver real estate market in any way at all. The real estate market is driven primarily by one thing: it is not low rates, not foreign buyers, not assignment clause flips, not taxation changes, not down payment changes. It is emotion. Emotion fuels decision making.

People buy homes because they are in love, getting married, having babies, they got a raise, their business is doing well, it was a sunny day and an open house caught their eye. People sell homes because they believe they can time the market (wrong), prices can’t go higher (wrong), they got a job transfer, a divorce, health issues… the lists of good and bad reasons go on, with one underlying dynamic – emotion. ‘We felt it was time to buy, we felt it was time to sell’. Rarely do you hear ‘we calculated’. Feelings and emotions.

Tax Hit (not a big one though)

A client purchasing a $4,000,000.00 home is not slowed by a $20,000.00 increase in purchase taxation. They will still pay the four million; it is a non-issue – a mosquito bite, not the sting of a hornet.

So, no brakes being put on $2M plus sales, just an increase in revenue to help offset the decrease on the break the provincial government is giving to people who are purchasing brand-new properties up to $750,000.00

Tax Break

First-time buyers see only an advantage if they are purchasing a brand new property, now their exemption rises from $475K to $750K (again on new builds only).

Repeat buyers were just given some love. Repeat buyers now get an exemption on new builds up to $750,000 as well. This is huge news and will likely stimulate the move-up buyers to look around, as a $13,000 cash expense has just been removed from the process of moving from one property to a larger, nicer, brand-new place. No doubt this will have a few people jumping off the fence and taking action. Builders, Realtors and clients alike will all rejoice at this news!

Tax Neutrality

The elimination of the Property Transfer Tax on new properties under $750,000 also has one other key impact. It helps offset the recent down-payment increases implemented by the federal government for any buyers of brand-new properties who were looking to put 5% down. Effectively their cost on properties over $500,000.00 up to $750,000.00 is now the same. This news neutralizes the down-payment increase.

The cash expense of a 5% down payment on a $745,000 property just rose by $12,250.00 (to a total of 6.6% or $49,500), but with this announcement the provincial government no longer has their own cash expense of $12,900.00 in the mix (Property Transfer Tax was calculated at 1% of the first $200,000 and 2% on the balance at this price point).

So the down payment went up in this example by $12,250.00 but the PTT cost decreased by $12,900.00. A $745,000 (new build only) property is actually easier to purchase with the minimum down payment for first-time and repeat buyers alike.

No doubt sales centres and developers rejoiced at this new as well.

Always remember to take your Realtor with you to a sales centre, they are your professional representation in the process.

Courtesy of Dustan Woodhouse, AMP – DLC Canadian Mortgage Experts 

Home renovation shows are very popular today and are one of our favorite shows to watch. These shows are not only entertaining but tend to lead you to think how easy and quickly is to renovate your home. And we know that viewers enjoy the shows more when they are filmed in Canada as you recognize certain landmarks or streets which you see often when you watch shows like “Love it or List it Vancouver” and “Game of Homes”. However, the television shows are not realistic, highly edited and can mislead people on the renovation process.

Despite this we have become more knowledgeable about design and we definitely want the latest interior finishes and stylish open interiors that we see on television shows. Having said that, homeowners really need to understand what all the important factors should be considered when thinking a home renovation.

Financing:

Most home renovations shows do not talk about the financing aspect of the renovation. Before you commit to a renovation project, meet with a Mortgage Expert at Dominion Lending Centres to help you assess your financial situation. Every person’s financial needs and options are unique. When asked, most people say they are financing their renovation with a line of credit. While you are only required to make payments on the interest only, many people are under the impression that they can manage paying the interest and go ahead with the renovations. The danger with using this type of financing is that eventually the principal has to be paid and you end up paying huge interest costs.

A HELOC “home equity line of credit” will give you a lower interest rate… if you currently have one. If you don’t, you will need to have at least 35% of equity in your home to qualify for one (based on the current mortgage rules by the Bank Act). Currently, you can refinance up to 80% of the value of your home for a mortgage based on the appraised value. With today’s historical low interest rates, you will end up paying a higher interest rate on a line of credit or HELOC, and you are unlikely to pay down the principal compared to a lower interest rate with a closed mortgage where you pay principal and interest, saving you thousands in interest. Another thing to consider if you are unable to pay off the debt quickly is that you might be better off to refinance your mortgage. It might be more beneficial to get a one to five year locked mortgage below 3 per cent by saving interest up front and using your lender’s pre-payment privileges. If you currently have a fixed rate mortgage, find out what would be your penalty for paying it out early, it might still be worth it to refinance.

The budget:

On television, the designer has $80,000 to renovate an entire main floor including the kitchen and finish the downstairs basement. The question is – are those numbers realistic? The reality is that we, as viewers, are not aware what has been factored into those numbers by the television producers such as design fees, permits, labour, material costs, promotional giveaways, etc.

In order to have a realistic budget for your renovation, do research before you commit. Some people get set in a specific number set in their mind without knowing what is involved in the total scope of the renovation. It is critical in this step to work with a professional renovator as it will reduce surprises. Homeowners need to take responsibility for the renovator they select and for doing their homework. As a general rule, if the price is too good to be true, it probably is. So don’t automatically go for the lowest price.

A professional renovator will work with you to create a detailed budget and timeline for your project so you know what to expect. Once you start selecting materials it is a good idea to take the budget with you to ensure you stay within your budget. There are times that homeowners run out of money midway through the project because they made too many changes along the way or ended up selecting more expensive materials.

Timeline:

On television, renovations are completed within a few short weeks. The homeowners come in and are mesmerized by the transformation. The reality is that sometimes it can take up to eight weeks just for the kitchen cabinets to get built. Before you start your renovation, prepare a timeline with a renovator so you know what to expect.

By doing this, you will have an exact idea how long it will take to do the tasks and therefore plan accordingly. Also, it’s important to remember that quality, professional renovators aren’t necessarily available right away. Some are booked months in advance, depending on the project. In order to stay on track, materials have to be bought ahead of time and certain items could be out of stock. It might take additional time to get them or in some cases replace them. It is important to remember that even fast projects still take a few months, while bigger projects can take up to a year to complete. Therefore, you need to be prepared.

Design and planning:

On most of the renovation shows you have the interior designer come into the home with their assistants and an iPad and start moving walls and design the new space within minutes without consulting the clients. Most clients are not going to allow the designer take free reins without their input.

In real life, renovations can be boring compared to television. The reason is that there is no excitement because every step of the process is well planned. When it comes to structural changes in the home, such as moving walls, doors, windows or adding additions a structural engineer may be required in order to obtain a permits. A renovator needs to plan for these type of engineering costs and time delays in order to complete the project.

Summary, when you do your own renovations it may not have all the excitement that you have seen on the television shows but we do know this. When you take into consideration the above factors, you will be happy with the end result. One, which despite the time, effort and money, you will be proud to come home to.

Courtesy of Alisa Aragon, AMP DLC Canadian Mountain View 

The two most frequently asked questions I get are:

1. What are your best rates?

2. What is the difference between fixed and variable rates?

Question #1 is actually more complicated than question #2. Why? Because rates are not the only thing you should be looking at when deciding what mortgage product to contract to. Recently, a client brought us a product that had a 1.99% fixed rate for a 5 year fixed term. This was extraordinary, and we did our due diligence to see what the product was all about. We found out that the term was 5 years and the interest rate was fixed at 1.99%…..for the first 6 months. Then it went up to the posted fixed rate of 3.15% for the remainder of the term. Not nearly as stellar as it appeared. Rule of thumb: If it is too good to be true, it is too good to be true! Make sure you know what your mortgage product entails. It is in your best interest to find out all the hidden costs behind the mortgage product that you don’t see up front.

Which leads us to question #2, What is the difference between fixed and variable rates?

Fixed Rates For the bank, this is a lower risk. It is usually higher than a variable rate. It remains constant or fixed for the term of the mortgage which means that your payments remain constant for the term of the mortgage. This rate is based on typical rates that are being offered by banks at the time the client enters into the mortgage contract. It’s a lot like “gas wars”. When you see gas stations that are in close proximity lower and raise their prices based on what the gas station across the street is doing, you see that these gas stations are competing with one another. It’s the same with banks. They watch each other’s prices and react to what’s going on “across the street”.

Variable Rates This is a higher risk rate for the bank. It is harder to qualify for this rate, which means the bank allows less debt in your financial profile compared to qualifying for a fixed rate. A variable rate can change during the term of the mortgage which means your actual mortgage payment can either increase or decrease during the term of the mortgage.

A variable rate is also a higher risk for the client as rates can go up which directly affects your payment amount. The last 15 years has seen rates generally decrease and clients that have taken advantage of the variable rate have not seen an increase in mortgage payments. But that’s not to say that it can turn at any time. Historically, we are at the lowest rates that we’ve seen but no one has a crystal ball.

Variable rates are quoted as Prime minus a certain amount or Prime plus a certain amount. What does this mean? Variable rates are based on the Bank of Canada, a governing institution for all Canadian banks. The Bank of Canada sets the benchmark for interest rates, based on inflation. Generally speaking, if the economy needs to be stimulated and is in a state of deflation, interest rates along with the Canadian dollar are lower. If the economy needs to be slowed down and is in a state of inflation, interest rates are higher along with the Canadian dollar. Currently, the benchmark rate for the bank of Canada is 2.5%. But most banks have adopted 2.7% as its Prime rate, basically because 2.5% is just too low for the bank. Thus, a bank might offer you Prime minus 0.2% (2.7% – 0.2% = 2.5%). Remember, the

Bank of Canada reviews its benchmark rate about 8 times a year. Depending on the state of the economy, they may raise or decrease the benchmark rate which will affect your variable rate.

An example:

You enter into a contract rate of Prime – 0.2% (2.5%). 18 months later, there is a surge in foreign investment into the country which stimulates the economy. The Bank of Canada reviews its benchmark rate and decides to raise the benchmark rate to 2.75%. Your bank follows suit and raises its Prime rate from 2.7% to 3%. Your contracted rate for your mortgage is still Prime – 0.2%. But instead of 2.5% you are now paying 2.7%. Your mortgage payment will also go up to reflect the new rate.

For more information about fixed and variable rates please a mortgage professional at Dominion Lending Centres. We’d be pleased to answer any questions you have.

Courtesy of Geoff Lee, GLM Mortgage Group 

Hello again my Friends. Always a pleasure to update you on the happenings of Bullying Ends Here.

The last month has really been focused on presentations and the outreach to our youth. The emails continue to come in and compliments made. The opportunities continue to grow for us as well.

As always, there is much to share from the last 30 days.

On March 23rd, I found myself in Ottawa yet again with some of my DLC Family. The Trevor Watter’s Group worked so hard to put together a couple of presentations at St. Michael High School. It was a phenomenal day followed by a lovely home cooked meal at the Watter’s household. This was the first time I had given any school presentations in the Ottawa area as I have always felt that it was ‘too close to home’ as this is where Jamie Hubley lived before passing in 2011. I suspect that Bullying Ends Here will return again in the near future!

On April 11th, MLA Jane Thornthwaite took time to recognize Bullying Ends Here in the British Columbia Legislature. You can see this at below, and now it looks like the Government is looking at ways to get the book to every social worker in B.C.!

https://www.youtube.com/watch?v=8lu8bkILW9U

On April 13th, I was invited to speak to a group of employees for the Bank Of Montreal in downtown Calgary. This was to celebrate the ‘Day of Pink’. I was proud to stand there in my DLC Pink Shirt as I do everyday. The media was also impressed to know that Bullying Ends Here is taking the message of acceptance and understanding to a new level by ensuring that our pink shirt is worn daily throughout the year. While ‘Pink Shirt Day’ and ‘Day of Pink’ are meant to start a conversation that continues throughout the year, I decided to ensure it does just that by wearing pink daily. The staff turned out in such high numbers that we needed to add more chairs!

April 15th had me in Banff Alberta as the keynote speaker to 750 Victim Services Delegates from all over Canada. To be able to stand in front of an audience full of passionate volunteers was an honour in itself. To be able to share my own story and show them how one person really can make a difference was a very defining moment for me. These incredible volunteers see and hear about tragedy each day. What they do for society is simply unreal. I am so proud to work alongside them on many calls and call many of them my friend.

While I write this, I am on my way to Ottawa for a few days which will then be followed by a week of presentations in Toronto, Vaughan, Cambridge, Kitchener, Waterloo and also in Beamsville where DLC family member, Donna Thornton, is working hard to put together a large community event along with a couple of schools. All in all, this last major tour of the current school year should have me speaking to around 15,000 more young people. Good thing I am not shy (or AS shy) as I used to be!

With the summer drawing closer, I am going to take a few months to focus on work and ‘Tad Time’ where I plan how the next year will look and where I want the program to go. My goal is to reach 100,000 youth in 2016 which I suspect we will reach in no time at all at this rate. I have found a happy balance between my full time job and the presentations on my days off/vacation. I’m very proud of all of the hard work everyone is doing to put together these tours and for their belief in me. This is truly team work at its finest.

I can also share that Bullying Ends Here will be on the Global stage in August as I have been invited to share my story in Amsterdam Netherlands. I know that there will be even more great things ahead.

Lastly, my book is thriving with sales now well over 1,000 in the last month. We have also found a way to personalize the books with a Corporate Logo on the front to share partnerships between the Company and Charity. Northland Volkswagen in Calgary Alberta will be the first to purchase 300 copies and hand them out to their clients. I will be sharing some exciting news with this new partnership in the coming month. VERY EXCITING!

I hope you all have a wonderful month and I look forward to sharing the coming weeks adventures ahead with you in May. Together we are not only changing lives, but SAVING them!

Courtesy of Tad Milmine, Founder – Bullying Ends Here

Every mortgage is unique. Would the advertised/online RATE work for everybody? It’s hard to say, until your documents fulfill all the conditions for that rate. Sometimes there are challenges to getting the approval of the mortgage. Dominion Lending Centres mortgage professionals try their best to find solutions to those challenges because they have a business relationship with more than ONE lender, they WORK FOR YOU, and they try their best to earn your business.

I want to share my experience when I bought my first existing home two decades ago and how a Real Estate agent helped me at that time. We decided to have a newly built home and at one “show home”, a Real Estate agent gave me his business card. After a couple of days, I phoned that Real Estate agent to get more guidance to sign a contract with a builder.

We met with him and discussed our priorities. He provided us the price and compared features of “show homes” in different neighbourhoods in the city. Also, he mentioned about the future growth of the particular vicinity in our area. After our first meeting with him, we were so impressed that he would negotiate on behalf of us, and he assured us that he would bring the price down as much as he could.

We started going with him to see more “show homes” and we liked one that was within our price range. He started “negotiating” with the representative of a builder. He went back and forth, and finally, our offer got accepted, and that Real Estate agent saved us $3,500.

If that Realtor  did not meet us at the “show home” we wouldn’t have had the chance to negotiate or signed the contract with a builder at the asking price and saved $3,500 at that time.

I had to pay a 10% down payment at that time since I did not PLAN my mortgage and did not realize that my income would be an issue. Always check with a mortgage professional to receive unbiased advice for your mortgage financing needs. If you are a “First Time Home Buyer” and thinking of buying a home in the very near future, START PLANNING your mortgage with a Dominion Lending Centres mortgage professional. By doing this, you will have knowledge of allowable income and down payment for the mortgage financing. You will also realize what credit is and why it is so important in this process.

At Dominion Lending Centres, we will plan your mortgage by focussing your short and long term goals and also show you how to pay off your mortgage faster than you think. You will have access to the very best products and rates available across Canada. I look forward to hearing from you 

Courtesy of Gurcharan Singh, AMP – DLC Canadian Anderson Financial Mortgage Team

If you’re finding your family has grown out of your current home or your house could use a makeover to better fit your changing needs, renovating is a great option to examine. Instead of putting your home on the selling block and heading out shopping for a new home right away, it may be worth considering using some of your home equity to renovate so you can remain at your current address.

The first consideration is whether your home can be adjusted to meet your needs. Is your lot big enough for an addition? Will your foundation handle the weight of an extra floor? Does the tired look of your home require a major overhaul? Will the renovations add value to the home?

Plan out the changes you’d like to make and speak to professional renovators to seek several quotes before making your decision.

Next, depending on the complexity of the project, you have to decide if it’s worthwhile for you and your family to live in a construction zone for several weeks or even months while improvements are being made to your home.

Finally, unless you have a lot of money saved up, you have to weigh your finances to determine what makes the most financial sense to you and your family in the long run.

Weighing your finances

Now is a great time to think about making renovations to your existing home to create your dream home. With mortgage rates still sitting at historic lows, it makes sense to use some of your home equity to put towards renovations that could help you remain in the house you love, in the neighbourhood you desire that’s close to work, school and amenities to which you’ve grown accustomed.

Other possibilities include a home equity line of credit (HELOC) – where you can access money as required for each stage of your renovation – or even a construction mortgage may be your best bet. The key is to talk to your Dominion Lending Centres mortgage professional who has access to multiple financial institutions and products to ensure you get the most bang for your buck.

It’s important to weigh the renovation costs with the potential for your home to increase in value as well.

Moving can also be quite expensive. Possible costs to consider when moving include:

* real estate fees (upon selling your existing home)

* legal fees

* property transfer tax

* moving expenses

* decorating the new home

* mortgage penalty

Other considerations

The decision between renovating and upgrading to a new house is not solely financial. You should also consider your time, energy and peace of mind.

Each choice has advantages and disadvantages. When determining the best option for you and your family, consider the pros and cons of both renovating your existing home and moving to a new home.

By taking into account what you want to do, why you want to do it, the costs of the renovations and upgrades, and the value of your renovated home in relation to other homes in your neighbourhood versus the costs of buying a new home, you can determine which option is best for you.

Courrtesy of Alisa Aragon, AMP – DLC Canadian Mountain View