Your Cellphone Account can Impact whether you’ll be Approved for a Mortgage

Equifax and TransUnion are the two main credit reporting agencies in Canada. They collect all the data on your loans, lines of credit and credit cards to create your credit report and calculate your credit score. This information is then used by lenders—including mortgage lenders—to determine whether you're a good credit risk. Recently, both credit reporting agencies started including cellphone accounts in their credit reports. This means if you make a cellphone payment after the due date, it appears on your credit report and reflects negatively on your borrowing profile. Even worse, if you allow your cellphone account to go delinquent and it's sent to a collection agency, not only does this appear on your report, it can also reduce your credit score. Mortgage lenders use this information to make underwriting decisions. Therefore, having a negative record with your cellphone provider can actually impact your likelihood of being approved for a loan and increase the interest rate you'll pay. If you've recently walked away from a cellphone contract, it's a good idea to get the company to put in writing that the contract has been fulfilled and is now closed. This can help prevent any damage to your credit rating. For more information on how to preserve or improve your credit rating, call us today. Mark Kupina  |  www.KupinaMortgage.com

The Art of Giving: How to Cultivate Joy this Holiday Season, and Beyond!

'Tis the season for giving. But with all the marketing, financial pressure and expectations at this time of year, sometimes giving doesn't feel so good. Sometimes it feels like an obligation. Or something you can't really afford. Or something designed to make you look good. In those cases, are you really giving anything at all? This holiday season—and throughout next year—instead of giving till it hurts or to outdo everybody else or to avoid feeling guilty, give something that makes you and the recipient feel happy. As an added bonus, this kind of giving rarely costs much! Here are some suggestions:

• Give your time. Visit a loved one you      don't see very often. Call a few special people on the phone—not a text or email—and spend some time finding out what's really going on in their lives.
• Give your skills. Give some lessons on      social media, a couple of hours of landscaping, paint a room, or babysit.
• Give gratitude. Tell someone how much they add to your life, how      they help make you a better person, how they make you smile—and thank them for it.
• Give your "Top 10" list.      Make a list of all the books, stores, service providers, movies, etc. that exceeded your expectations, and pass it on. Everybody likes to go with proven choices.
• Give a giggle. Save up the stories,  jokes or quotes that make you laugh and share them with loved ones. Again,      use the phone so you can hear each other laugh!
• Give forgiveness or an  apology. If you or someone close to you has caused pain, ask for      forgiveness or grant forgiveness. There's nothing more healing and      life-affirming than genuine forgiveness and reconciliation.
• Give random acts of      kindness. Put money in expired parking meters, pick up litter, hold the door      for somebody. The more people you help feel good, the sooner your whole world will feel great!

 

Annual Mortgage Review: How you can Benefit from a Mortgage Tune-up

Most people have regular checkups for their health, car and investment portfolio. But when's the last time you had a checkup for your mortgage? Your mortgage is likely the biggest financial transaction you'll ever make. It deserves as much—or more!—attention as all those other things. As your local mortgage professional, I'm happy to offer a no-cost annual mortgage review. It doesn't matter whether you're a current client of mine or not. This free service is offered without obligation of any kind. Why is an annual mortgage review so important? In a word, "change". Your family may be changing (new additions, kids going to university, retirement approaching), your financial situation may be changing (a raise, job loss, new investment goals, new debts), your plans may be changing (moving, getting married, starting your own business), interest rates are constantly changing, and new mortgages are constantly being introduced with potentially valuable new features. With all this change happening, it definitely makes sense to see if your existing mortgage is still working as hard as it can and providing maximum value. I'll sit down with you, review your mortgage, total debt picture, investment goals and current plans, then present you with professional advice about mortgage strategies that can help you achieve more while paying less. For more information on this free service, call me today! Kupina Mortgage Team | www.KupinaMortgage.com  

Interest Rate Differential: What you need to know before Breaking your Mortgage

It's tempting to look at today's historically low mortgage rates and consider breaking out of your mortgage early to get a better rate. Certainly, if your existing rate is significantly higher than today's rates, this might make economic sense. But before you decide, consider what you might have to pay in IRD (Interest Rate Differential). An IRD is a prepayment penalty charged by a bank when you break out of your mortgage early. When a bank lends money, it borrows those funds from investors and guarantees to pay the investors a certain return over time. If you break out of your mortgage early, the interest the bank was earning is no longer coming in, so it doesn't have enough funds to continue paying investors the agreed-upon rate. To make up the difference, it charges an IRD. Current interest rates affect how much IRD you pay. If rates are rising—which means the bank can replace your mortgage with one at a higher rate—the IRD is generally lower. And if rates are dropping, the IRD is generally higher. Another consideration is that if you break out of your mortgage to go to a new lender, you usually also have to pay about $1,000 in legal fees. The way banks calculate IRDs is complicated and takes into account your existing rate, what current rates are, how big your balance is and how much time is left in your term. Some people feel that if your balance is at least $250,000 and the difference between your existing rate and the new rate is at least 0.5%, then it makes sense to break out of your mortgage, since the IRD will be lower than the interest you'll save in the future. However, the only way to know for sure if it makes sense to break your mortgage early is to have an analysis done of your specific situation. Please call me today if you'd like to take advantage of this free service. Mark Kupina - www.kupinamortgage.com  

Today's Bank of Canada Announcement

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 October 23, 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 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.    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: "The global economy is expected to expand modestly in 2013, although its near-term dynamic has changed and the composition of growth is now slightly less favourable for Canada. The U.S. economy is softer than expected but as fiscal headwinds dissipate and household deleveraging ends, growth should accelerate through 2014 and 2015. Overall, the global economy is projected to grow by 2.8 per cent in 2013 and accelerate to 3.4 per cent in 2014 and 3.6 per cent in 2015.    In Canada, uncertain global and domestic economic conditions are delaying the pick-up in exports and business investment, leaving the level of economic activity lower than the Bank had been expecting.   The Bank expects that the economy will return gradually to full production capacity, around the end of 2015". Based on this news and slower level of economic activity in Canada, the Bank does not expect to increase their rate in the foreseeable future with any change most likely to occur well into 2014 or even 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 did go up but then have gone down a bit since at around 3.59% to 3.79% 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 December 4th, 2013 at which time I'll be in touch again. I wonder if I can ask a favour – this is a great time for home owners that have significant high interest credit card or other debt to consider their options for refinancing.   If you know of someone that is looking for advice on their mortgage options and strategies on how to save unnecessary interest, would you mind passing my contact information on to them – this is very much appreciated. Mark Kupina | Kupina Mortgage Team www.KupinaMortgage.com

Retirement got you SPOOKED?

Find out how you can retire with peace of mind – at an enviable age – using a safe, secure investment plan! With almost another year behind us, this is a perfect time to starting thinking about creating a retirement plan or reassessing the one you already have. Are you certain that you're on track to reach your retirement financial goals? Do you have a plan in place? These are the kinds of questions you need to be asking yourself now before it's too late. Most people spend more time planning their next holiday than they do in planning their financial future.  Sad but true. As the old saying goes, "Most people don't plan to fail, they simply fail to plan." Don't let that happen to you. With the right plan and the right advisors, you can position yourself, and your family, on the path to financial freedom. If you're not already working with a financial planner, or if you're not happy with the one you're using, I have a top-notch financial planner that I'd be happy to recommend. They can provide you with a free, no obligation consultation to help you analyze your current situation and map out a solid plan to help you achieve your financial goals. Whether you're looking to plan for retirement, reduce your taxes or increase and protect the wealth in your current plan, here's your chance to consult with a trusted financial advisor at no cost. For more info, call us today! Kupina Mortgage Team | www.kupinamortgage.com  

Dividend Tax Credit: a Legal Way to cut your Taxes

When you're building savings for a long-term goal like retirement or education, keep in mind the tax implications of your investment. If you're earning bank interest, you pay income tax on that interest. But if you invest in stocks that pay a dividend, you can reduce taxes and keep more money for financial goals. Dividends are payments made by corporations to their shareholders. Since dividends are paid out of the corporations' after-tax profits, the government recognizes that those dividends shouldn't be taxed again when a shareholder earns them. To avoid double taxation, the federal government subjects dividends to a gross-up, which is then offset by federal and provincial non-refundable dividend tax credits. As a result, dividends end up receiving about the same preferential tax treatment as capital gains. In some cases, you can end up with enough tax credits left over from your dividends to apply to tax from other sources. It's important to remember that the gross-up and dividend tax credits don't apply to RRSPs. All the dividends earned within your RRSP are taxed as income when withdrawn, so it doesn't make sense to invest registered funds in dividend stocks. If you'd like some easy-to-understand advice about benefiting from the dividend tax credit, I'd be happy to introduce you to one of my trusted financial planner partners. Kupina Mortgage Team | www.kupinamortgage.com