On January 17th, 2012, the Bank of Canada kept its rate at 1.25% which is great news for those looking to refinance their mortgage or looking to reduce their monthly credit payments.  With the growth of the overall economy in Canada is expected to remain moderate, along with downgraded credit-rating in Europe, it is expected that rates will remain low for some time.

This is the 16th straight month that the Bank of Canada has kept its rates the same.  This announcement also comes following recent announcements by the big banks that they are lowering their interest rates to historic lows.

What does this mean for the home owner?

For a home owner, it means the immediate result is that the prime rate should remain at 3%, so if you have a variable rate mortgage, your payments will stay the same.

 
It also means that competition for rates will continue to be aggressive.  If you have a mortgage with a high rate of interest, it is worth your time to talk to a mortgage broker and see if you can lower your monthly payments.  In a market like this, it is a good time to consider refinancing your home at a lower rate of interest to pay down your mortgage faster or take out a home equity loan to pay down credit cards.

What does this mean if I have a credit line?

If you have a credit line based on your home equity, it means that your monthly payments will remain low so you can continue to pay similar monthly fees.  If you are carrying debt on credit cards at high interest, and you own a home, or have a mortgage, it is a great time to refinance your home and get rid of high-interest credit card payments.  Imagine one low monthly payment instead of multiple credit card payments?

The One Stop Mortgage group has sponsored a new service at Credit-Help.ca to provide debt consolidation help, improve credit and lower monthly payments.  One Stop Mortgage Corp. can assist you in consolidating all of your credit debts into a mortgage on your property anywhere in BC or Alberta. This process will usually lower your monthly payments from what you are paying to all of your creditors and condense all your monthly payments into one easy to manage payment.  Also you should notice that your credit score will increase and you will be more suitable to qualify for a conventional mortgage in as soon as 1 year. If you are already in collections don’t panic – One Stop Mortgage can still help you.

How will a steady, low interest rate impact the housing market?

The housing experts at Royal LePage say that 2012 is going to be a great year for buyers who will enjoy low interest rates, and for sellers who can expect prices to increase.  While this may not be the case across the country, it is estimated that Canada will have an average price increase of 2.8%, yet in Calgary, Regina and Winnipeg, some experts suggest that housing prices will increase by 4-5%.  With low interest rates continuing until perhaps 2013, it is a great time to consider refinancing, investing in real estate or paying off credit.  Read more here.

One Stop Mortgage can help!

The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

Visit CREDIT-HELP.ca for assistance in managing your debt.

With household debts reaching all-time highs, the need to reduce spending and pay down debt is a necessity for Canadians.  But how does one do this?

The global economic downturn has made many of us question our spending, and as a result Canadians are beginning to pay down debt faster. Equifax Canada released a promising report on January 10th showing that credit card debt had fallen by 3.4% in 2011.  While the report also stated that overall debt was still growing although bankruptcies are down.  Yet the average household still carries a great deal of debt and it is time to start addressing this issue.
One way that many Canadians reduce their credit card debt is to seek credit help and get advice from financial experts on how to manage their money better.  Rather than risking credit collection companies and potential bankruptcy, it is a good idea to get some solid advice about how to deal with the issue of debt.

Reduce Monthly Payments

By reducing monthly payments, improving your credit-rating, and taking out home-equity mortgages, it is possible to save thousands of dollars.  Instead of paying high interest on credit cards, with credit help you can create a single loan based on the equity in your home and reduce your monthly payments to give you more money to pay back the loan.  This is a much less stressful approach to managing your money.  It is important to pay off the debts before the interest rates rise and our monthly costs go up even more.

In difficult economic times, with unemployment rates rising and uncertainty about the global world economy, it is wise to start considering carefully how we spend our money.  In Canada, the mandatory retirement age of 65 has been removed and many more people are working into their retirement years.  Since we are living longer, and our money is not going as far, retirement without work is not always a reality.  A recent report by the CBC stated that Canadians will live on average 15-20 years past retirement age.  These facts, plus our rising average debt load have produced a debate about whether RRSP investments should be mandatory.  With 4.4% of Canadian seniors living in poverty, as noted in another CBC article, along with almost 30% carrying a mortgage into retirement, it is time to start taking our debt seriously.

Get Started Today

By reducing our monthly credit card bills, spending and saving through RRSP’s and other financial vehicles that a credit or mortgage specialist can help with.  If you find that your credit is overwhelming your monthly income and you need help to restructure your debt, it is a good time to contact the mortgage and credit specialists at One Stop Mortgage Corp.
The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

Visit CREDIT-HELP.ca for assistance in managing your debt.

With the beginning of a new year, it is an excellent time to reassess our spending, debts and mortgage.  After an interesting year around the globe, it is going to be an important year to watch our finances.  If you haven’t thought about your mortgage or the extra spending you did over the Christmas season, it is a good time to reflect.
The Canada Mortgage and Housing Corporation has released its 2011 Canadian Housing Observer report with some interesting new stats to give us insight into how our housing market is performing.  There are many interesting trends included in the report, and it is worth a read if you are thinking about refinancing your home or are curious to learn more about the Canadian housing market.
The report stated that mortgages comprise 68% of the debt of Canadian households.  While this number is lower than in 1993, this is still a significant number to consider.  The big banks of Canada now hold less than 55% of mortgages, which shows that more and more Canadians are choosing to work with a mortgage broker to get them the best rates and the best deals in mortgages. Another interesting fact stated in the report is that by 2036, 24% of Canada’s population will be over 65, which not only increases demand for senior housing, but also could have a serious impact on houses and condos as people downsize for their retirement.

Consult a Mortgage Broker

With mortgage rates forecasted to remain low and fairly stable over 2012, it is a good time to consult a mortgage broker to see if you can secure a good deal on your home mortgage or loans to improve your financial stability over the next year.  If you reassess your finances and discover that you are paying far too much interest and are paying more than 5% on your mortgage, it is time to get a better deal.
According to an article by CTV news on December 22, 2011, the average Canadian household carries debt loads worth 153% of disposable income.  This is the highest ratio ever, and if your debt is so high, it becomes harder and harder to reach your financial goals.  As more and more people carry their mortgages into retirement, it is necessary to look at your finances now and see if there are ways to consolidate your debt and start paying it down.  There are many financial products available to assist you in this, whether it is a lower mortgage rate, a home equity loan or other forms of debt consolidation.

How to get started?

At One Stop Mortgage, the team of mortgage broker specialists makes mortgages simple.  They can help you discover the various financing options that are available for your specific needs and can arrange mortgages within the same day.  The One Stop Mortgage group can also provide partial interest mortgages, which are a great product for families who want to invest in the same property.  With One Stop Mortgage you can get the right real estate and mortgage advice you need and change your credit financing to begin the path to financial freedom.
The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

Growth in Real Estate sales and value expected for Alberta

The Canadian Real Estate Association reported on Dec 15, that resale housing activity rose in November 2011, despite ongoing global financial uncertainty. This is good not only for the Canadian economy but also for the real estate investor.  The association predicted that the province with the strongest growth in sales in 2012 is going to be Alberta, with a potential growth rate of 6.7%, according to a December 12th article in the Calgary Herald.  With an increase in sales comes an increase in prices expected to be 1.6%, based on the continued job growth and balanced economic performance of Alberta.
Gary Morse, the president of CREA stated that homebuyers are expecting mortgage interest rates to rise, and are doing more research into how mortgages work and take into account their current and future debt (CREA, 2011).  With this in mind, consumers are looking for excellent deals when securing mortgage financing.  While many economists anticipate a slight rise in interest rates, they should remain close to current levels to support growth.  With the strong energy sector growth in Alberta, it should be a stable real estate investment market for some time.

Real Estate as an Investment

Investing in real estate is an excellent way to get a positive return on your money through a rental property.  Investors put a small percentage of their own money into a house, shop with a mortgage broker and find excellent mortgage rates to provide a solid return on investment.  Since real estate generally appreciates by at least 5% on average, with that number changing dramatically in high growth areas like Calgary, Edmonton and Vancouver, the investment is further leveraged by tenants paying off the mortgage.  This enables you to save money, take advantage of growth in equity and have the maintenance of your mortgage paid by renters.  In times of economic uncertainty, real estate is a safer place to invest your money than the stock market.  There are also a host of tax benefits and many other benefits to investing in real estate.

With mortgage rates at historic lows, it is a good time to invest in property.  By doing your research you can find markets that have great growth potential to provide a higher return on your investment.  Real estate is not a liquid investment, so you will have to invest for a period of time if you expect to make money, but with tenants paying down your mortgage it makes it easier to maintain a property with less capital.  As the equity in your investment property builds, your money grows into home equity, which can then be taken out in the form of a home equity loan to invest in another property once enough cash is available.
If you are thinking of investing in Western Canada, it is wise to work with a mortgage broker who understands the Alberta and BC markets and provide service in both.  One Stop Mortgage can provide mortgage broker services and financing options in both provinces.   They will not only provide you with the information needed to make an informed choice, the mortgage specialists there will find the best financial product to fit your needs and help you to find the best rates possible.

How to get started?

The easiest way to get started is to begin researching the areas in which you want to buy a property.  Using resources such as the Canadian Real Estate Board you can get a good idea where the experts believe the growth markets to be.  An even easier method is to contact One Stop Mortgage, where the team of mortgage broker specialists makes mortgages simple.  They can help you discover the various financing options that are available for your specific needs and can arrange mortgages within the same day.  The One Stop Mortgage group can also provide partial interest mortgages, which are a great product for families who want to invest in the same property.  With One Stop Mortgage you can get the right real estate and mortgage advice you need to finance your investments and begin on the path to financial freedom.
The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

A Second Mortgage is an excellent loan alternative

Anytime the holidays come along and our expenses increase, it is important to think about our debt as well.  When the year ends and we begin to review our finances, think about new business projects and begin to assess how we did during the year.  If we are carrying a high debt load on credit lines or credit cards, a 2nd mortgage is a good alternative.

A second mortgage can be used to pay off high interest debts, consolidate financing issues, provide money for renovations or can be used to buy additional property as an investment.  It is another mortgage on your property and is secured by the value of your home and the amount of equity you have built up over the years. 

There are many advantages of a 2nd mortgage, when compared to other loan types besides the fact that you can pay off your high interest debts. 

Easier to qualify

When you build up equity in your home, it is one of the most secure financial bases available.  Home equity is independent of your job security, income qualifications and overall cash flow.  A second mortgage is easier to qualify for than unsecured loans, and because it is based on home equity, the interest rates available will be much lower than unsecured debt.

Safety

Rather than remortgaging your home to take out more money, thus increasing the   overall size of the mortgage, a second mortgage is much safer.  With lower rates than unsecured lines of credit, repayment is faster, which enables better management of high interest debts.

Using a Mortgage Broker

A mortgage broker can help you find the best rates for 2nd mortgages by accessing a huge set of funding resources that go beyond the traditional banks.  Why deal with the hassle of a bank turndown, when you can get someone on your side researching the best rates and providing you with financial guidance to get your credit rebuilt and get back your life?  Mortgage Brokers can provide second mortgages or home equity loans that will preserve your original mortgage and give you lower rates.  A mortgage broker can answer questions about closing costs, provide debt consolidation advice and help to find you the best second mortgage loan.

Solid alternative loan option

A second mortgage enables you to invest in a small business at much lower rates than a business loan.  Investing in renovations to increase the value of your home is another way to use a 2nd mortgage effectively.  With increasing tuition costs, many people take out a second mortgage to enable their children to pursue higher education.  Other loan options are much more expensive and can be more difficult to maintain and pay off quickly. 

One Stop Mortage makes second mortgages simple

With the mortgage broker team at One Stop Mortgage, 2nd mortgages are made easier.  They explain how these loans work, build the best loan product for you and find the best rates.  One Stop Mortgage loans are very accessible, even with credit challenges and self-employment, which are one of the main causes of a bank turndown.  The team at One Stop Mortgage Corp works with customers throughout BC and Alberta to provide excellent support and information.

A 2nd Mortgage just makes sense

When you consider the advantages of a second mortgage, it just makes sense to use this type of loan over an unsecured line of credit.  A 2nd mortgage is easier to pay off, since it will have a lower interest rate than an unsecured line of credit, and if you use the money to consolidate your debt, set up a new business, or invest in home renovations that will increase the value of your property, it will help you to find the cash when you need it.

The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best second mortgage or home equity loan that best fits your needs.

It’s the season to spend

It’s the season to rack up the credit card debts through shopping for that “perfect gift” for your loved ones and participating in numerous social events over the holidays.  This coupled with fewer working hours in December and increased costs as retailers try to increase their year-end and take advantage of stressed-out last-minute shoppers, can lead to a serious financial hangover in January when the bills come rolling in.  Yet there is hope for the Canadian consumer to manage his/her debt and survive the holiday spending.

With increased costs of living, it is tempting to make up the balance by using credit cards to buy us some time so we don’t have to wait to buy something, or have to say “no” to social events.  Despite the fact that many Canadians have slowed down their borrowing, according to TransUnion, the average consumer debt for 2011, not including mortgages, was $25 594, which is slightly higher than it was in 2010.   This may be due to global economic issues and uncertainty, but since 2004 according to an article published in The Star last week, Canadian consumer debt has reached record levels.  While interest rates are set to remain stable for at least another year, if they do increase, this can mean huge financial troubles to those with high credit card debt. 
It can seem normal to have credit cards, unsecured lines of credit and mortgages, since we have been spending more than ever before, but in uncertain times this is dangerous, particularly if you carry debt on credit cards.

Financial Tips to survive the holidays

Here are some tips to get you through the holidays and maintain your financial health:

1. Don’t spend more than you earn. 

The Vanier Institute of the Family reported last February that average family spending hit a record of 150%, which means that families are spending 150% of what they earn after taxes on debt and living costs.  Everyday spending habits, such as daily coffees, can quickly eat up a family budget.

2.  Eliminate high-interest debt.

If you are carrying credit card debt, you are paying far too much interest on the money you have borrowed.  Since you will save a lot of money on lower interest loan options, it is important that you pay off your credit card each month.  If you can’t, a home equity line of credit or a debt consolidation loan can help you save on interest, and use the savings to pay down the amount you borrowed.

3.  Be careful with your housing budget.

Before you buy your home, or invest in a property, it is important to ensure that you have enough money to cover all the costs involved in buying a home.  Costs include not only the down payment and real estate agent fees, but also several legal and closing costs.  If interest rates increased by 2% could you still afford the home?  It is a good idea to sit down and budget all the costs of owning a home as well, such as utilities, taxes, maintenance and other expenses to ensure that you won’t buy beyond what is affordable.

4.  Increase your payment frequency.

Instead of paying a monthly fee on debt, why not pay off some debt with every paycheque?  You can set up your mortgage and loans to be paid every two weeks quite easily, and since it is coming off your paycheque right away, it is harder to spend it.  By paying a mortgage or a loan every two weeks, you decrease the amount of time needed to pay off the debt, as well as increase the number of payments.  This results in savings of thousands of dollars over the years.

5.  Save your money.

An easy way to save your money for emergencies or upcoming expenses is to set up a TFSA account (read more about this great savings too here: http://www.tfsa.gc.ca/), and deposit money into it with every paycheque.  This is a tax-free savings account that enables you to invest your money, plus save on a regular basis.  By saving only $25 a week, you will accumulate $1300 by the end of the year, plus interest.  This habit of saving money weekly can be a HUGE benefit in the long run, plus it makes sense to save for financial needs, rather than just borrowing to cover the costs.

6.  Invest what you save.

Too many people put all their money into savings accounts and never think about investing beyond that.  A TFSA account will pay more interest, as will GIC’s, or guaranteed investment certificates pay more interest, and will lock up your money for longer periods to help you save more.  (For a review of rates, check out: http://money.canoe.ca/rates/gics.html. ) Property and mutual funds are other investment vehicles that can help you attain more financial freedom.

7.  Do your taxes carefully.

By investing in RRSP’s and managing your taxes carefully, you can also save more and reduce your debt loads.  We all work too hard to have our money not go far enough to support our families.  By careful tax preparation with the help of an accountant, you can save on the income tax you save, and put your tax refund down on your debt to reduce the amount you owe.

Consult the Specialists

As the holiday season comes closer, keep in mind that January and its bills are right around the corner.  This doesn’t mean you can’t celebrate with family and friends, but it requires you to spend carefully and manage your money well.
With the help of a mortgage specialist, you can discover how you can take advantage of lower interest rates and consolidate your debts. 

The One Stop Mortgage group is always available to assist you in finding the best loan to fit your needs.  Give them a call at 604 874 8988 or 1-877-874-8988 or email them at info@onestopmortgage.ca.  The team of mortgage specialists at One Stop Mortgage can find the best mortgage, home equity loan or debt consolidation loan package that best fits your needs and helps you to become more financially stable and get your life back.

Interest to remain low

On November 24th, Mark Carney, the governor of the Bank of Canada announced that the central bank will keep lending rates low to limit the impact of the global economic downturn, as financial troubles in Europe increase.

This is good news for those who want to invest in a home or in real estate.  With interest rates at near historic lows, and rental rates increasing, it is a good time to buy a home.

Why invest in real estate?

While buying a home is a huge investment, there are many reasons to consider investing in real estate.

Consider the following:

• Investing in real estate means that you are putting money into something that has value
• Homes can go up in value, particularly if you are in a market with strong growth potential, such as Calgary, Edmonton, Vancouver, Surrey, or  Abbottsford as well as many other cities in Alberta and BC
• It is possible to live in your investment.  Why pay rent so that you pay off someone else’s mortgage? 
• The cost of buying can be the same as renting.  This allows you to save your money by building equity in your home.  The more equity you build in your home, the better your credit rating becomes and the easier it is for you to take out a home equity line of credit in case you need to pay for your child’s tuition, invest in a business or pay off your credit card debts
• As long as you are aware of the costs of ownership, and research the neighbourhood carefully the odds are in your favour
• There are many tax benefits to owning a home