Good morning, As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate. At 10:00 am EST, Wednesday March 5th, 2014 the Bank of Canada again did what we expected them to do … they continued to maintain their overnight rate. What this means to you is that once again the prime rate on your mortgage, line of credit or student loan will not change and remains at 3.00%. This is fabulous news but are you still making the most of the low payments you still have, as the rate will increase in the future. No doubt you are getting ready to file in 2013 Income Tax Return – are you getting a refund? Give me a call and we can chat about helping you make the most of that refund and the savings you continue to make on your mortgage – I have some great budgeting and savings strategies for you – let me know as I would be happy to assist. Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision today: "The global economy is evolving largely as anticipated, with growth expected to strengthen in 2014 and 2015. The United States is still expected to lead the acceleration in advanced economies, although recent data have been softer, largely owing to weather effects. Volatility in global financial markets has increased somewhat, reflecting buoyant market conditions in most advanced economies and increased risk differentiation among emerging markets. More recently, tensions in Ukraine have added to geopolitical uncertainty. In Canada, economic growth in the fourth quarter of 2013 was slightly stronger than the Bank anticipated. Although exports have been a little stronger than previously thought but continue to underperform, and overall business investment has yet to pick up." Just as before, the Bank still does not expect to increase their rate in the foreseeable future with any change most likely to occur late 2014 or even not until 2015! They need to wait to see economic growth continue on a more upward direction and become more sustainable long term. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won't see a large significant increase all at once. Fixed rates dropped just slightly since the last announcement to around 3.19% to 3.39% for a five year fixed term. Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I'd recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. The next announcement on any change to the prime rate is April 16th, 2014 at which time I'll be in touch again. I wonder if I can ask a favor – this is a great time for first time home buyers who are thinking of purchasing this Spring to start with a pre-approval plan now to get them on track and save unnecessary interest. Also if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting and debt consolidation options for them. In either of these cases, would you mind passing my contact information on to them – this is very much appreciated Yours truly, Kupina Mortgage Team | www.kupinamortgage.com
Thursday, 6 March 2014
Friday, 28 February 2014
IMPORTANT UPDATE - CMHC Raises Premiums May 1st
Effective May 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.
Kupina Mortgage Team
| Loan-to-Value Ratio | Standard Premium (Current) | Standard Premium (Effective May 1st, 2014) |
| Up to and including 65% | 0.50% | 0.60% |
| Up to and including 75% | 0.65% | 0.75% |
| Up to and including 80% | 1.00% | 1.25% |
| Up to and including 85% | 1.75% | 1.80% |
| Up to and including 90% | 2.00% | 2.40% |
| Up to and including 95% | 2.75% | 3.15% |
| 90.01% to 95% – Non-Traditional Down Payment | 2.90% | 3.35% |
Monday, 24 February 2014
5 ways we unwittingly repel wealth & prosperity
Studies indicate that we can actually sabotage our ability to achieve financial security. Here are some attitudes that stand between us and abundance.
- *We're at the mercy of money. Earning and managing money can be so challenging, we sometimes see money as negative and energy draining. This causes us to subconsciously drive money away. Instead, see money as positive, effortless and attractive.
- *Money is in short supply. We assume there's not enough money to go around and that we're going to get left out. But thinking "shortage" helps create "shortage". Instead, realize there's an unlimited supply of money and we can get as much as we want.
- *We don't deserve to be rich. Since money is often tied to job performance, we think we earn what we deserve. But who can judge how much money we deserve? Take the judgment out and simply see money as an abundant resource.
- *Getting money for money's sake. Greed actually repels wealth. Instead, see money as something that will help you make the world and others' lives better. An honorable intention helps create abundance.
- *No plan for how to use it. If you don't know what you're going to do with money, chances are you won't get it. Make a list of all your dreams. Then you'll have specific goals to work toward.
The Joy of Less: 10 Creative ways to Declutter your Home—and your Life!
It's true: less really is more! By owning fewer possessions, we gain more time because we have fewer things to keep clean and organized. Life is more relaxing because we have fewer debts to worry about and we don't have to work as much. And we end up with more money because we're spending less. Here are some tips on de-cluttering your life.
- *Get rid of one item every day. Make it an unbreakable rule. Over time you'll notice a big reduction in the stuff you don't really need.
- *Clear out your closets. Line up all your clothes hangers in the same direction. Then every time you wear something, hang it with the hanger in the opposite direction. After six months, you'll see which clothes never get worn and can be given away.
- *Sort into four categories. Set out four boxes and label them Trash/Recycle, Give Away, Keep and Relocate. Every time you see or use an item, decide which box it should go in.
- *Download product manuals. Instead of keeping a drawer full of manuals, download all the manuals from manufacturers' websites, keep them on your computer, and recycle the hard copies.
- *Set out a basket labeled with each family member's name. Keep them in a central location. Whenever you find an item where it doesn't belong, put it into the correct person's basket.
- *Open mail next to the recycling bin. Put junk mail directly into the bin rather than letting it pile up.
- *Buy something, give something away. Don't let anything new come into the house unless something old goes out.
- *Scan documents and store on your computer. Use a scanner or your phone's camera (APP: CamScanner) to make digital copies of documents you want to save, then recycle the originals.
- *Rearrange a room. Just by moving furniture around, you'll discover lots of things you can relocate or get rid of.
- *Set a good example. Only give gifts people can actually use, like coupons for services or food items.
Wednesday, 22 January 2014
Bank of Canada Announcement - Jan 22, 2014
Good morning As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate. At 10:00 am EST, Wednesday January 22nd, 2014 the Bank of Canada again did what we expected them to do … they continued to maintain their overnight rate. What this means to you is that once again the prime rate on your mortgage, line of credit or student loan will not change and remains at 3.00%. This is fabulous news but don't forget to make the most of the low payments you still have, as the rate will increase in the future. If you haven't done so already, give me a call and we can chat about helping you get set up with a great GIC, Tax Free Savings Account, or Retirement Savings Plan as your payments continue to remain low. So did you, or someone you know, blow their budget over the holiday season and have started to get those dreaded credit card bills in and the reality is starting to sink in... let me help you get back on track with a review of your financial situation which might be a savings plan, credit counselling or debt consolidation to pay off high interest loans or credit cards. If you would like to chat about some budgeting and saving strategies – let me know as I would be happy to assist. Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision today: "Inflation in Canada has moved further below the 2% target, owing largely to significant excess supply in the economy and heightened competition in the retail sector. Global growth is expected to strengthen over the next two years with the US leading this acceleration, aided by diminishing fiscal drag, accommodative monetary policy and stronger household balance sheets. The improving U.S. outlook is affecting global bond, equity, and currency markets. Growth in other regions is evolving largely as projected. In Canada, growth improved in the second half of 2013. However, there have been few signs of the anticipated rebalancing towards exports and business investment. Stronger U.S. demand, as well as the recent depreciation of the Canadian dollar, should help to boost exports and, in turn, business confidence and investment". Based on this news, the Bank still does not expect to increase their rate in the foreseeable future with any change most likely to occur late 2014 or even not until 2015! Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won't see a large significant increase all at once. Fixed rates dropped just slightly since the last announcement to around 3.39% to 3.59% for a five year fixed term. Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I'd recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. The next announcement on any change to the prime rate is March 5th, 2014 at which time I'll be in touch again. I wonder if I can ask a favour – this is a great time for first time home buyers who are thinking of purchasing in the Spring to start with a pre-approval plan now to get them on track and save unnecessary interest. Also if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting and debt consolidation options for them. In either of these cases, would you mind passing my contact information on to them – this is very much appreciated. Yours truly, Kupina Mortgage Team
Tuesday, 21 January 2014
How to Become Mortgage-Free Sooner
Paying your mortgage off the traditional way takes 25 to 40 years and costs about TWICE the purchase price of your home. Here are some effective ways to pay off your mortgage sooner, build equity faster and save thousands in interest.
- Change your payments. Simply increasing your payment frequency to bi-weekly or weekly costs nothing and can save thousands of dollars over the life of your mortgage. If you can afford to pay a little extra, consider accelerated bi-weekly or weekly payments—these are equivalent to making one extra monthly payment per year which results in substantial savings. Or you can make a lump sum payment which can realize savings several times as great over the life of your mortgage.
- All-in-one mortgage. Instead of making extra payments, consider switching to a mortgage that pays off the principal faster without costing you anything more. All-in-one mortgages combine a line-of-credit mortgage with a chequing account to reduce interest costs and pay off your mortgage in as little as half the time, without changing your spending habits. You deposit your pay into the all-in-one account and pay bills as you normally would. While you're not using your money, it's used to reduce your daily loan balance. Over the life of the loan, this can save hundreds of thousands of dollars in interest!
- Merged account mortgage. If you'd rather not refinance your existing mortgage to switch to an all-in-one mortgage, consider a merged account mortgage. This system uses your existing mortgage (any type of first mortgage will work), an advanced line-of-credit (ALOC), and specialized software that makes a connection between your bank account, ALOC and mortgage. Each time you deposit income into your account, the software automatically generates an interest cancellation on your mortgage. The result is that a 30-year mortgage can be paid off in about 8 to 11 years, with no change to your lifestyle or refinancing of your existing mortgage.
Saturday, 4 January 2014
Rate prediction for 2014: Can you survive payment shock?
As the US economy improves, it's becoming less necessary for central banks on both sides of the border to hold down interest rates. Long term fixed mortgage rates have been climbing for many months now. And as the economy continues to improve, it will eventually become necessary for the Bank of Canada rate to rise, which would have a direct impact on variable rate mortgages. Currently, the Bank rate is at 1%, but some economists predict it could start rising by late 2014 and reach as high as 2.25% by the end of 2015. Of course, even if mortgage rates rise by a couple of points, they're still very low historically. But what matters to mortgage holders is payment affordability if they're in a variable mortgage or they need to refinance. Depending on what your rate was when you first took out the mortgage, the new rate you'll be paying could be substantially higher. To see if you're at risk of payment shock, give me a call. I'll do a free analysis of your current mortgage to see how rising rates might impact you. If risks exist, we can discuss the possibility of refinancing now before rates rise further. Rest assured, I'll discuss all your options, offer affordable alternatives and help make sure your financial future is secure. Call me today. Mark Kupina | www.kupinamortgage.com
The secret to attracting more health, wealth and happiness in 2014 and beyond
Like most people, you probably have lots of days when things go wrong and it's hard to feel grateful about what's happening in your life. But researchers are discovering that people who develop a consistent "attitude of gratitude" enjoy huge benefits. Expressing gratitude means always being aware of the good things that happen to you and never taking them for granted. The very act of being grateful puts you in a more positive mood, with more overall life satisfaction and happiness. In one study, participants who wrote down five things they felt grateful for, once a week for ten weeks, reported feeling less stress, and more optimism and contentment. When participants wrote gratitude letters to the significant people in their lives, they experienced greater joy and more meaningful relationships. An attitude of gratitude even promotes better health. Grateful people report fewer headaches, nausea, acne, anxiety, depression, and they spend more time exercising. The good news is that an attitude of gratitude can be cultivated. Here are some simple steps to help you feel more grateful so you can enjoy the many benefits:
- Express gratitude. Make a point of telling others how thankful you are to have them in your life, and mean it.
- Gratitude reminders. When you notice yourself feeling down about something, try to think of 4-5 related things you're grateful for. For example, if you're stressed at work, think of some things you like about your job.
- Strategic comparisons. Instead of feeling inadequate by comparing yourself to others who are more fortunate than you, compare yourself with those less fortunate and feel grateful.
- Journal. Every day, write down 3-5 things you feel grateful for. Not only does this help you focus on the abundance in your life, it gives you something uplifting to read when you're feeling low.
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