Thanks to Jenn Widney from the Erin Kelly Team for this advice
RATE is a 4 Letter Word
When someone asks me “What’s the best rate out there?” I just want to scream! I mean really, before jumping into the RATE, at least buy me dinner!
Seriously though, that is one of the toughest questions that any good mortgage broker has to answer. Don't get me wrong, I can quote the best discounted rate available but that really isn’t the answer to the question people are asking. What they really want to know is: What is the Best Rate for my situation?
There are so many factors that go into determining what RATE is available for a borrower. We first need to get answers to basic questions such as: What is your income? How is your pay structured? How is your Credit Rating? How much do you have to put down on the property or how much equity is in the property?
Next, and most importantly we need to know what your plans for the property are. What are your financial goals for the immediate and long term? What is important to you?
With access to so many products from over 50 Lenders, there are A TON OF OPTIONS. Each mortgage product has different privileges’, penalties and terms. Determining the best product for your situation takes some digging, some understanding and some due diligence. It’s not just a hop into the RATE and hop out kind of thing!
From now on, when you hear RATE here’s what you should think:
READ THE FINE PRINT
· What are the penalties if I break this mortgage and how are they calculated? Can I refinance this or do I have to sell to get out of it (Bonafide Sale Clause) Is it portable?
ASSESS YOUR GOALS
· What is your plan for the property? What is your exit strategy? Can you foresee any life events that may change your financial picture positively or negatively in the next 3 years/ 5 years?
TALK TO A MORTGAGE PROFESSIONAL
· Get some Mortgage Coaching from an unbiased Mortgage Professional that works for you. (That would be us)
EVALUATE YOUR OPTIONS BEFORE YOU EXECUTE
· Look at all the options available to you – different types of mortgages, terms, payment options, pre-payment privileges and measure them against your goals.
Questions? I thought so, contact us!
May 5, 2013
Royal LePage turns 100 this year! To celebrate our 100th birthday, Royal LePage has created a 100th Birthday Cake-Eating Challenge on Facebook.
Here's how it works:
The game challenges players to eat an entire virtual three-layer birthday cake in the shortest time possible. Participants can play as often as they like -- just for fun or to better their score, for a chance to win one of six weekly prizes of $500. Each week will bring a new cake, and a new challenge. As well, each week they play, players will receive one entry into a random draw for a chance to win a $5000 grand prize (maximum 6 entries).
Did I mention that this cake has zero calories? Start eating
May 1. 2013
The Royal LePage Shelter Foundation raised a record breaking $2.08 million in 2012. Part of the funds generated are done through "agent commission donations", in other words every time I sell a home, a portion of my commission goes to to the Shelter Foundation. 100% of our donation goes to a local organization as Royal LePage Canada covers the administrative costs. At Royal LePage Benchmark, the money raised goes to the Children's Cottage in Calgary.
In 2012, I was recognized as being one of the top 10% of donors in Canada. So thank you to all my clients- for allowing me to represent you and helping me to make such a significant donation to the Royal LePage Shelter Foundation.
April 16, 2013
What a great night at the CHBA Calgary Region 2012 SAM Awards. As many of you know, my husband Paul Salmon works for PHBI which is part of Alberta New Home Warranty Program . PHBI was a platinum sponsor this year at the SAMs so we were fortunate enough to be able to attend.
The SAM Awards (Sales And Marketing) recognize builders and other industry members for their achievements over the last year. As a real estate agent who often helps buyers purchase a new home, it is important to have an idea as to which builders are continually recoqnized by their peers ( you don't "win" these awards by fluke). However, the award that I was always most interested in was the "Customer Choice Award" as the winner is chosen by their customers.
April 15, 2013
I had an interesting discussion last week with my AMAZING accountant Teri Tetreault of Pi Business Solutions about whether or not to write off depreciation on my rental property. Of course, the answer isn't black and white and circumstances are different for everyone but here's what he said:
"When you claim the depreciation now, as a dollar-for-dollar expense, you do save that tax, yes. However, when you sell that property, you are required to reclaim that depreciation back into income, dollar-for-dollar. In other words, when the house is subsequently sold, ALL of the prior depreciation is added back into income, and it is NOT a capital gain , so there is no net tax savings whatsoever.
Of course, the amount of profit on the property is still a capital gain, but every cent of the tax you saved depreciating the place is repaid when it sells. Most likely, you end up paying MORE tax upon the sale than you saved because all that income pours into one year, which will almost certainly drive you into the 3rd or 4th tax bracket. As a matter of habit, we never depreciate rental properties for this reason.
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