Psycho-Cybernetics: How your Subconscious "Set Point" Determines your Financial Future

Psycho-Cybernetics is a way to define our self-concept so we can attain personal goals. Many of the training methods used for elite athletes are based on this proven concept—and it can also help us reach financial goals. Each of us has a blueprint or "set point" that guides our experience. Studies show that regardless of how much they win, lottery winners usually return to their original financial circumstances. Similarly, self-made millionaires who lose their money usually earn it back quickly. In both cases, they're simply returning to their natural set point. So how do we change our set point? By changing our attitude! To achieve a positive outer goal we have to set a positive inner goal. Lack of money isn't the problem—it's a symptom of underlying attitude. To change that attitude, start by visualizing and really FEELING what it's like to be a millionaire, who your friends would be, what you'd do each day. Then move on to affirmations that declare your intention and send a powerful message to your subconscious. Here's an example, "I release my non-supportive money experiences from the past and create a new and rich future." For best results repeat out loud morning and night in front of a mirror. Gradually, you'll begin to shift your set point and start to achieve your goals faster and easier than ever before! Kupina Mortgage Team | www.kupinamortgage.com

Stricter Debt Ratio Standards on the Way

When CMHC tightened mortgage rules last year, among the changes were stricter debt ratios and income confirmations. For typical borrowers, these are key factors in determining whether or not you'll get a mortgage. If you're close to the line on debt and income, last year's changes have made it more difficult for you to qualify. And unfortunately, things are about to get even more difficult! On June 27, 2013, CMHC issued new guidelines for calculating debt ratios and confirming income documents. While most lenders have already been following these rules, CMHC is now closing the "loopholes" that allowed some lenders to offer easier approval for borrowers with tight debt ratios. Here are some of the rules that have been clarified:

• *If you have variable income from things like bonuses, tips and investment income, lenders must use an amount not exceeding the average income of the past two years.
• *If you own other non-owner-occupied rental properties, the principal, interest, property taxes and heat on those properties must be deducted from gross rent revenue or included in "other debt obligations" when Total Debt Service ratio is calculated.
• *For unsecured credit lines and credit cards, no less than 3% of the outstanding balance must be included in monthly debt payments.
• *For secured lines of credit, lenders must factor in "the equivalent" of a payment that's based on "the outstanding balance amortized over 25 years."
• *For heating costs, lenders must obtain the actual heating cost records of a property or use a set heating cost formula. This can double or triple the cost factored into debt ratios on larger properties, and reduce it on smaller ones.

Since the new rules take effect on December 31, 2013, it's important to talk to your mortgage advisor today. Until that deadline, I still have access to a select group of lenders who may be able to provide the mortgage approval you need. For more information, call us today! www.kupinamortgage.com  

How the Rich use their Minds to Attract Wealth

Yes, it's possible to think and grow rich. That's what wealthy people have been doing for generations. By developing the right mindset, they attract abundance into their lives—and a key form of abundance is wealth! Here's how to do it:

• *Envision that you're already rich. Picture it. Feel it. Behave as though you've  already accomplished it. Give thanks for having received such wealth. Once you've thoroughly conditioned your mind to this new reality, you will eventually achieve it.
• *Focus on openness and possibility, not need and obligation. Instead of working because you have to and taking courses because you're required to, allow yourself to be attracted by opportunities that offer obvious rewards. It's a lot easier to engage in wealth-generating activities when you really want to do them!
• *Trust your intuition. Your subconscious mind is constantly collecting data and noticing signs. If you're unexpectedly drawn to an opportunity, explore it and check out the potential. Maybe your intuition knows more about getting rich than your conscious mind.
• *BUT  remember, getting rich also requires more than thinking—it requires action. Don't just wait for it to happen. Set goals, make a plan, talk to      mentors, reduce debt, only make major purchases that deliver a return on investment. By changing your thinking and taking action, you WILL become rich!

 

Slow, Steady Economic Growth, with No Rise in Bank of Canada Rate until Next Year

There's still lots of turbulence in the global economy, with Europe in recession, the US growing at a modest pace, and China's demand for commodities slowing. But in Canada, there's reason to be modestly optimistic. After slowing in the second half of 2012, our economy recovered somewhat in the first quarter of 2013, and the Bank of Canada is forecasting growth of 1.5% for the year as a whole. We added 95,000 jobs in May, retail sales rose strongly in February, housing starts jumped 13.8% in May, and core inflation has remained at the low end of the Bank of Canada's target range for the past nine months. Of course, the stock market took a beating in June, but that's actually the result of a good news story. What triggered investors to sell was the US Federal Reserve suggesting that it may soon stop adding stimulus to the economy since the US is beginning to show more signs of growth. Investors took that as a signal that interest rates may soon start rising, which would raise the cost of money. The fact that the US economy is growing in spite of the massive government cuts that were triggered in March (known as the sequestration) is remarkable. This demonstrates that there's underlying strength south of the border, which is always good news for Canada. However, our economic growth is likely to lag behind the US. It's unlikely that our inflation rate will rise beyond Bank of Canada targets until late 2014 or early 2015. Also, thanks to tighter mortgage rules, growth in mortgage and consumer credit has slowed significantly. These factors give the Bank room to maintain the current overnight rate of 1.0% for the rest of this year, with rates unlikely to start creeping up until the second half of 2014. If you'd like a free analysis of how these forecasts might affect your mortgage, please feel free to call me today. Kupina Mortgage Team | www.kmortgage.ca

Here's a great way to ENHANCE your Employee Benefits

Let's face it, employee benefits are hard to come by nowadays. In today's tough economy, companies are cutting their spending on "non-essentials" and are looking for low-cost ways to increase employee moral, retention and productivity. Here's how you can help your current employer do exactly that... Does the company you work for have 25-700 employees? If so, how would you like it if your company could provide you with an exclusive benefits program that allowed you to $AVE BIG when buying, selling and refinancing your home? Introducing our new voluntary Employee Mortgage Benefit Program! With this exclusive program, you and your fellow co-workers can save TIME, ENERGY and MONEY when buying, selling and refinancing. If that sounds good to you so far (and it definitely should), let me ask you this... Would you be open to helping us "get a foot in the door" at your company? All we need is the contact info for the key decision maker and we'll take care of the rest! If you'd like us to send your company a FREE "Discovery Package" with more information about our Employee Mortgage Benefits Program, call us today! Kupina Mortgage Team | www.kmortgage.ca

How to Become Mortgage-Free Faster without Breaking the Bank

To pay off your mortgage sooner, you need a plan right from the start. Here are some important steps in that plan.

• Be realistic about mortgage size. Don't talk yourself into paying more than you can comfortably afford, or you'll end up being "house poor".
• Reprioritize your budget. Analyze where all your money is going. Cut back on things that lose value immediately (like that big screen TV!) and invest in your mortgage instead.
• If you get a raise, increase your payments by the same percentage.
• If you get a bonus, make a lump sum payment.
• Make accelerated bi-weekly payments. This is a fairly painless way to make an extra payment every year.
• Put aside savings for annual lump sum payments. These can have a HUGE impact on total interest paid.
• Round up your payments. Take a number like $1,437.93 and round it up to $1,450. Even that tiny amount has a big impact over time.

For a free, no obligation Financial Analysis, where you can find out exactly how much interest you can save and how much faster we can help you become mortgage-free, without changing your household budget, call us today! Kupina Mortgage Team | www.kmortgage.ca

Today's Bank of Canada Announceme​nt

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and, as promised, 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 May 29^th, 2013, 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 of course is fabulous news but as always, I like to remind you 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.    Maybe you are thinking of saving for a special occasion or expect a large expenditure in the near future (car, college/university, cottage or investment property purchase), and 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: "In the United States, the economic expansion is progressing at a modest pace, with continued strengthening in private demand partly offset by fiscal consolidation. Japan's economy is beginning to respond to significant policy stimulus. Europe, in contrast, remains in recession. Growth in China has continued to ease from very strong rates, weighing somewhat on global commodity prices.   In Canada, recent economic indicators suggest that growth in the first quarter was stronger than the Bank projected in April. For the year as a whole, growth is expected to remain broadly in line with the Bank's forecast. Over the projection horizon, consumer spending is expected to grow at a moderate pace, business investment to grow solidly, and residential investment to decline further from historically high levels. Growth in total household credit is slowing and the Bank continues to expect that the household debt-to-income ratio will stabilize near current levels. Exports are projected to continue to recover, but to be restrained by subdued foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar." Based on this news and still the ongoing slack in the Canadian economy and the muted outlook for inflation, the Bank does not expect to increase their rate in the foreseeable future with any change most likely to occur possibly as late as late 2013 to early 2014!   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 haven't changed at all since the last announcement, at around 2.89% to 3.09% 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 July 17th, 2013 at which time I'll be in touch again. I wonder if I can ask a favour – rates are still so low right now and we are well into the Spring market and it is a great time for first time home buyers and those planning their University or college accommodation to start considering their options.  Do you have a friend, family member or colleague that is looking at University College for their son and daughter and might want to chat about purchasing a property rather than renting with as little as 5% down payment?   It is a perfect time to work with me to not only hold rates for up to four months while they go house hunting but also work on their action plan to make dreams of homeownership a reality!  If you know of someone that is looking for advice on their mortgage options, with no obligation, would you mind passing my contact information on to them – this is very much appreciated. Yours truly, Kupina Mortgage Team | www.kmortgage.ca