7 Nov

3 STEPS TO KEEP YOUR CREDIT IN CHECK

General

Posted by: Shari Letsos

 If you have overextended yourself with credit card debt, or have consolidated all of your consumer debt into your mortgage, or are at the point where you just want to cancel your credit cards, we have the 3 steps for you to follow to get your credit back in check.

  1. DO NOT CANCEL ALL YOUR CARDS

It may seem tempting, but money lenders want to see that you can handle your credit responsibly. Instead keep your 2 oldest credit cards (trade lines). The longer you have had your trade line, the better it is for your credit.

  1. FOLLOW THE 2/2/2 RULE

The 2/2/2 rule means that money lenders what to see 2 trade lines, for 2 years with a minimum of a $2,000 limit. These cards need to be paid on time each month, and they also need to stay within that $2,000 limit!

  1. USE WITH CARE-REGULARLY

The 2 trade lines you keep need to be actively in use. If you are concerned about consumer debt, then have a monthly bill such as your cell phone, cable, or even Netflix charge billed to your credit card. Then have that credit card paid automatically each month from your bank account.

Follow these steps to keep your credit in check and growing.  When it is time to renew or revamp your mortgage, or purchase a new home, your credit won’t hold you back—And you can bet Dominion Lending Centres is here to help you get the sharpest rate and the best product.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

7 Nov

3 STEPS TO KEEP YOUR CREDIT IN CHECK

General

Posted by: Shari Letsos

 If you have overextended yourself with credit card debt, or have consolidated all of your consumer debt into your mortgage, or are at the point where you just want to cancel your credit cards, we have the 3 steps for you to follow to get your credit back in check.

  1. DO NOT CANCEL ALL YOUR CARDS

It may seem tempting, but money lenders want to see that you can handle your credit responsibly. Instead keep your 2 oldest credit cards (trade lines). The longer you have had your trade line, the better it is for your credit.

  1. FOLLOW THE 2/2/2 RULE

The 2/2/2 rule means that money lenders what to see 2 trade lines, for 2 years with a minimum of a $2,000 limit. These cards need to be paid on time each month, and they also need to stay within that $2,000 limit!

  1. USE WITH CARE-REGULARLY

The 2 trade lines you keep need to be actively in use. If you are concerned about consumer debt, then have a monthly bill such as your cell phone, cable, or even Netflix charge billed to your credit card. Then have that credit card paid automatically each month from your bank account.

Follow these steps to keep your credit in check and growing.  When it is time to renew or revamp your mortgage, or purchase a new home, your credit won’t hold you back—And you can bet Dominion Lending Centres is here to help you get the sharpest rate and the best product.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

5 REASONS A MORTGAGE BROKER IS YOUR BEST CHOICE

General

Posted by: Shari Letsos

So it seems that there are still Canadian consumers who have reservations or misunderstandings about why a mortgage broker is their best choice. Time to take a quick look at 5 reasons you should use a broker.

1. Almost always free to use. 41% of consumers polled for the June 2016 Mortgage Professionals Canada “The Next Generation of Homebuyers” report seem to have the misconception that they are the ones paying somehow for the mortgage broker’s services. Here are a few things you should know:

· Bank branch reps and mobile specialists are paid bonuses for being able to get you to sign at a higher rate. It’s true. Ask them.

· The banks and broker lenders avoid the costs of having another in house employee with benefits and all that when they go through a mortgage broker who pay all those cost themselves.

· A mortgage broker will only charge a fee on an alternative deal where the client has blemished credit or on a commercial deal and in both cases the amounts are very upfront and are agreed to ahead of time.

2. Professional and carefully watched. Mortgage brokers only do mortgages. That means we know what we are talking about and can advise you properly. You can also rest assured that your privacy is well protected given that we are watched carefully by governmental agencies. As we should be really.

3. Choices! A mortgage broker is exactly like an insurance broker. We have access to a large number of lenders so if your application does not quite fit with one bank we have many others we can try it through. It is our job to know that you are getting the best mortgage and rate for your situation. Often we can even get better rates for you at your own bank given the very high volume we do with them.

4. Avoiding nasty pitfalls. Do you know how your bank calculates the penalty on the mortgage? Do they use posted to discounted rates? Are you getting put into a collateral mortgage? That’s OK if you have no idea what any of that means. I know, it’s my job and that can save you a ton of money down the road.

5. Convenient. Mortgage brokers pride themselves on their exemplary service. We can work with you remotely or face to face. We use the latest technology to make things as easy as possible for our clients.

So there you have it. We are free to use, full of professional advice, offer wide variety of choices, help you avoid pitfalls and we are convenient too! Oh, and did I mention that just over 50% of first time home buyers use mortgage brokers these days? Come find out why Dominion Lending Centres is where you should go for your next mortgage. You’ll be so glad you did.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

5 REASONS A MORTGAGE BROKER IS YOUR BEST CHOICE

General

Posted by: Shari Letsos

So it seems that there are still Canadian consumers who have reservations or misunderstandings about why a mortgage broker is their best choice. Time to take a quick look at 5 reasons you should use a broker.

1. Almost always free to use. 41% of consumers polled for the June 2016 Mortgage Professionals Canada “The Next Generation of Homebuyers” report seem to have the misconception that they are the ones paying somehow for the mortgage broker’s services. Here are a few things you should know:

· Bank branch reps and mobile specialists are paid bonuses for being able to get you to sign at a higher rate. It’s true. Ask them.

· The banks and broker lenders avoid the costs of having another in house employee with benefits and all that when they go through a mortgage broker who pay all those cost themselves.

· A mortgage broker will only charge a fee on an alternative deal where the client has blemished credit or on a commercial deal and in both cases the amounts are very upfront and are agreed to ahead of time.

2. Professional and carefully watched. Mortgage brokers only do mortgages. That means we know what we are talking about and can advise you properly. You can also rest assured that your privacy is well protected given that we are watched carefully by governmental agencies. As we should be really.

3. Choices! A mortgage broker is exactly like an insurance broker. We have access to a large number of lenders so if your application does not quite fit with one bank we have many others we can try it through. It is our job to know that you are getting the best mortgage and rate for your situation. Often we can even get better rates for you at your own bank given the very high volume we do with them.

4. Avoiding nasty pitfalls. Do you know how your bank calculates the penalty on the mortgage? Do they use posted to discounted rates? Are you getting put into a collateral mortgage? That’s OK if you have no idea what any of that means. I know, it’s my job and that can save you a ton of money down the road.

5. Convenient. Mortgage brokers pride themselves on their exemplary service. We can work with you remotely or face to face. We use the latest technology to make things as easy as possible for our clients.

So there you have it. We are free to use, full of professional advice, offer wide variety of choices, help you avoid pitfalls and we are convenient too! Oh, and did I mention that just over 50% of first time home buyers use mortgage brokers these days? Come find out why Dominion Lending Centres is where you should go for your next mortgage. You’ll be so glad you did.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

THINKING OF SELLING? COSTS YOU SHOULD KNOW ABOUT!

General

Posted by: Shari Letsos

Often times it’s the simple math that will betray you when selling a property. In your head you do quick calculations, you take what you think your property will sell for and then subtract what you owe on your mortgage, and the rest is your profit! Well… not so fast, there are several costs that have to be taken into consideration when selling a home. It’s especially important to get these costs right when you are selling one property, and using the proceeds from that sale as a downpayment for another property.

So here is a fairly comprehensive list of costs you may incur when selling your home.

REAL ESTATE TRANSACTION COSTS

Although it may seem odd that you have to pay money to sell your home, that’s the reality, and selling a property isn’t cheap. If you use the services of a professional REALTOR®, the total commission cost is going to be anywhere between 4-6% of the purchase price, divided between the listing agent (the REALTOR® who represents you) and the buyer’s agent (the REALTOR® representing the buyer). It’s also good to note that GST is added to real estate commissions.

If you are looking for a way to get around paying real estate commissions, you might consider selling your house privately. To list your property with a FSBO company (for sale by owner), you are going to be anywhere between $400-$1,500 just for setup and a bit of marketing. From there, you may still have to negotiate a commission if potential buyers are working with a buyer’s agent.

MORTGAGE DISCHARGE FEES

If you have a mortgage on your property, there will be a cost to discharge it, the question is how much?

If you are breaking your mortgage in the middle of your term, you will be responsible to pay a penalty. On a closed mortgage, that penalty will be either 3 months interest or an Interest Rate Differential penalty, known as an IRD. Each mortgage contract is written up differently lender by lender, so it’s impossible to simply explain the math here and have you calculate your penalty on your own. In order to figure out your IRD ahead of time, you can either contact your lender directly, or you can contact me and I can help you through the process.

The IRD penalty is the wildcard in the whole process, because depending on how the lender calculates the penalty, penalties can range from $3,000 to $30,000. It is very important to know what you are dealing with here.

If you are currently in a variable rate mortgage, your penalty will be equal to 3 months interest. Even if you are in an open mortgage, or have a home equity line of credit secured to your property, there might not be a penalty to discharge, but there will most certainly be some kind of lender fee, usually between $250-$500.

LAWYER’S FEES

In order to discharge the title of your property, and to verify that the buyer is going to receive a clear title of your property, you are going to incur legal fees to sell your property. In a straightforward discharge, expect to pay between $500-$1000, less than when you purchased the property, but an expense none the less.

UTILITIES AND PROPERTY TAX

Although this might not come as a surprise, when you are selling your property, you are responsible for paying all the property taxes and utilities up to the day you no longer have possession. If you close in the middle of the month, you will be responsible for half the months taxes and utilities. If you are on equalized payments, and you have run a deficit with the utility company, expect to bring that bill current before your lawyer can discharge the mortgage!

CAPITAL GAINS TAX

If you’re selling your primary residence, you are in the clear. In Canada we don’t pay tax on the appreciation of our primary residences, however, if you are selling an income property, you will be responsible to pay taxes on half the gains at your marginal income tax rate.

PROPERTY REPAIR

If you are looking to sell your house quickly, you will want to make sure that it is in tip top shape, don’t underestimate the growing costs of fixing your property up before trying to sell it. It has been said that sellers should consider spending up to .5%-1% of the asking price on getting the property ready, making sure the small things are looked after will give people the feeling like the property was looked after . Low-cost, minor improvements like

  • Patch drywall and nail holes, repaint.
  • Fix or replace damaged flooring.
  • Repair plumbing leaks.
  • Replace burnt out light bulbs.
  • Replace outdated light fixtures.
  • Clean out and reseal gutters.
  • Keep up with the yard and garden.

MOVING

Don’t forget that once you do sell your house, it’s gonna cost you money (and time) to move. Depending on how much stuff you have, you are looking at some gas money and pizza for friends, or a few hundred to a few thousand for movers.

There you have it, by understanding these costs hopefully you will have a better idea of how much money you will actually have in your jeans after selling your house! Of course if you’re looking for a new mortgage for a new house – give me a call!

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

THINKING OF SELLING? COSTS YOU SHOULD KNOW ABOUT!

General

Posted by: Shari Letsos

Often times it’s the simple math that will betray you when selling a property. In your head you do quick calculations, you take what you think your property will sell for and then subtract what you owe on your mortgage, and the rest is your profit! Well… not so fast, there are several costs that have to be taken into consideration when selling a home. It’s especially important to get these costs right when you are selling one property, and using the proceeds from that sale as a downpayment for another property.

So here is a fairly comprehensive list of costs you may incur when selling your home.

REAL ESTATE TRANSACTION COSTS

Although it may seem odd that you have to pay money to sell your home, that’s the reality, and selling a property isn’t cheap. If you use the services of a professional REALTOR®, the total commission cost is going to be anywhere between 4-6% of the purchase price, divided between the listing agent (the REALTOR® who represents you) and the buyer’s agent (the REALTOR® representing the buyer). It’s also good to note that GST is added to real estate commissions.

If you are looking for a way to get around paying real estate commissions, you might consider selling your house privately. To list your property with a FSBO company (for sale by owner), you are going to be anywhere between $400-$1,500 just for setup and a bit of marketing. From there, you may still have to negotiate a commission if potential buyers are working with a buyer’s agent.

MORTGAGE DISCHARGE FEES

If you have a mortgage on your property, there will be a cost to discharge it, the question is how much?

If you are breaking your mortgage in the middle of your term, you will be responsible to pay a penalty. On a closed mortgage, that penalty will be either 3 months interest or an Interest Rate Differential penalty, known as an IRD. Each mortgage contract is written up differently lender by lender, so it’s impossible to simply explain the math here and have you calculate your penalty on your own. In order to figure out your IRD ahead of time, you can either contact your lender directly, or you can contact me and I can help you through the process.

The IRD penalty is the wildcard in the whole process, because depending on how the lender calculates the penalty, penalties can range from $3,000 to $30,000. It is very important to know what you are dealing with here.

If you are currently in a variable rate mortgage, your penalty will be equal to 3 months interest. Even if you are in an open mortgage, or have a home equity line of credit secured to your property, there might not be a penalty to discharge, but there will most certainly be some kind of lender fee, usually between $250-$500.

LAWYER’S FEES

In order to discharge the title of your property, and to verify that the buyer is going to receive a clear title of your property, you are going to incur legal fees to sell your property. In a straightforward discharge, expect to pay between $500-$1000, less than when you purchased the property, but an expense none the less.

UTILITIES AND PROPERTY TAX

Although this might not come as a surprise, when you are selling your property, you are responsible for paying all the property taxes and utilities up to the day you no longer have possession. If you close in the middle of the month, you will be responsible for half the months taxes and utilities. If you are on equalized payments, and you have run a deficit with the utility company, expect to bring that bill current before your lawyer can discharge the mortgage!

CAPITAL GAINS TAX

If you’re selling your primary residence, you are in the clear. In Canada we don’t pay tax on the appreciation of our primary residences, however, if you are selling an income property, you will be responsible to pay taxes on half the gains at your marginal income tax rate.

PROPERTY REPAIR

If you are looking to sell your house quickly, you will want to make sure that it is in tip top shape, don’t underestimate the growing costs of fixing your property up before trying to sell it. It has been said that sellers should consider spending up to .5%-1% of the asking price on getting the property ready, making sure the small things are looked after will give people the feeling like the property was looked after . Low-cost, minor improvements like

  • Patch drywall and nail holes, repaint.
  • Fix or replace damaged flooring.
  • Repair plumbing leaks.
  • Replace burnt out light bulbs.
  • Replace outdated light fixtures.
  • Clean out and reseal gutters.
  • Keep up with the yard and garden.

MOVING

Don’t forget that once you do sell your house, it’s gonna cost you money (and time) to move. Depending on how much stuff you have, you are looking at some gas money and pizza for friends, or a few hundred to a few thousand for movers.

There you have it, by understanding these costs hopefully you will have a better idea of how much money you will actually have in your jeans after selling your house! Of course if you’re looking for a new mortgage for a new house – give me a call!

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

TWO BIRDS, ONE STONE: HOW A REVERSE MORTGAGE HELPED FINANCE A POST-GRADUATE DEGREE AND A PURCHASE OF AN INVESTMENT PROPERTY

General

Posted by: Shari Letsos

I recently met a couple that took out a reverse mortgage to purchase a house in Vancouver, BC. Their daughter was attending University, and was just starting her post-graduate degree.

After spending close to $25,000 over 4-years in rent, her parents decided to get into the landlord business!

Here’s how the numbers worked out:

  • Clients 58 & 60 years old
  • $3M home in Vancouver, BC
  • Approved for $600K reverse mortgage
  • Rental Property – $2375 monthly rental income (daughter lives rent free), or $28,500 rental income per year
  • CHIP Reverse Mortgage Interest – $28,500 (4.75%)

Now at first glance, it looks like these freshman landlords will simply break-even as interest expense is equal to rental income.

But there are a few considerations:

  • Daughter is living rent-free – parents are saving $5700/year in rent
  • CHIP Reverse Mortgage Interest is tax deductible against total taxable income
  • $3M Oakville home – if it increases in value long-term, by only 1% per annum, this will cover the interest expense & more
  • The flexibility of deciding how much or how little interest payments to make on their reverse mortgage puts these clients in an enviable cash-flow position.

House rentals are not for everyone as they tend to be a “hands on” investment. But for the right client, rental properties can be a lucrative opportunity as part of a diversified investment portfolio.

Contact me to learn more about how this CHIP Reverse Mortgage can work for you.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

TWO BIRDS, ONE STONE: HOW A REVERSE MORTGAGE HELPED FINANCE A POST-GRADUATE DEGREE AND A PURCHASE OF AN INVESTMENT PROPERTY

General

Posted by: Shari Letsos

I recently met a couple that took out a reverse mortgage to purchase a house in Vancouver, BC. Their daughter was attending University, and was just starting her post-graduate degree.

After spending close to $25,000 over 4-years in rent, her parents decided to get into the landlord business!

Here’s how the numbers worked out:

  • Clients 58 & 60 years old
  • $3M home in Vancouver, BC
  • Approved for $600K reverse mortgage
  • Rental Property – $2375 monthly rental income (daughter lives rent free), or $28,500 rental income per year
  • CHIP Reverse Mortgage Interest – $28,500 (4.75%)

Now at first glance, it looks like these freshman landlords will simply break-even as interest expense is equal to rental income.

But there are a few considerations:

  • Daughter is living rent-free – parents are saving $5700/year in rent
  • CHIP Reverse Mortgage Interest is tax deductible against total taxable income
  • $3M Oakville home – if it increases in value long-term, by only 1% per annum, this will cover the interest expense & more
  • The flexibility of deciding how much or how little interest payments to make on their reverse mortgage puts these clients in an enviable cash-flow position.

House rentals are not for everyone as they tend to be a “hands on” investment. But for the right client, rental properties can be a lucrative opportunity as part of a diversified investment portfolio.

Contact me to learn more about how this CHIP Reverse Mortgage can work for you.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

GET IN FRONT OF A BAD SITUATION

General

Posted by: Shari Letsos

Financial difficulty can happen. Marital breakdown, economic downturn / job loss, health issues are all realty.

If I can give one piece of advice it’s this – in the face of financial difficulty the worst thing that a person can do is to go dark on their creditors.

In my experience, being 100% upfront and honest with creditors is by far the best 1st step in face of a cash crunch. CALL YOUR CREDITORS. EXPLAIN YOUR SITUATION. ASK FOR A TEMPORARY REPRIEVE. BE PROACTIVE WITH LOOKING AT A SOLUTION EARLY.

Trust me – most creditors DO NOT want to foreclose on homes, send you to collections or push you over the brink of financial ruin. Many will actually work to help you get back on your feet if you let them know early on that you are in a crunch. I have seen some of our lenders make amazing concessions for customers who hit a stumbling block financially when they have gotten in touch BEFORE they fall behind.

It’s when a person stops making minimum payments, avoids calls from creditors and just gives up on their situation / assumes they are up the creek or are too embarrassed to admit that they may not be able to meet obligations.

This looks to creditors that the person has abandoned the debt and is now looking to stick it to them.

Unfortunately, many times people call us at Dominion Lending Centres when they are already months behind and been served with collections / seizure notices and credit is ruined. At that time, they are too far gone and lenders/creditors are normally not able to help.

Any time a person calls to advise that they are looking for a solution to help with a cash crunch, the first question I ask is “Have you spoken to your creditors?”

Don’t be embarrassed, be proactive!! Save your credit standing, your assets and your future. Short term pain is much better than long term ruin any day.

I have seen it all in my 10 years of experience and I am here to help! No shame, lets get you pointed in the right direction!

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca

6 Nov

GET IN FRONT OF A BAD SITUATION

General

Posted by: Shari Letsos

Financial difficulty can happen. Marital breakdown, economic downturn / job loss, health issues are all realty.

If I can give one piece of advice it’s this – in the face of financial difficulty the worst thing that a person can do is to go dark on their creditors.

In my experience, being 100% upfront and honest with creditors is by far the best 1st step in face of a cash crunch. CALL YOUR CREDITORS. EXPLAIN YOUR SITUATION. ASK FOR A TEMPORARY REPRIEVE. BE PROACTIVE WITH LOOKING AT A SOLUTION EARLY.

Trust me – most creditors DO NOT want to foreclose on homes, send you to collections or push you over the brink of financial ruin. Many will actually work to help you get back on your feet if you let them know early on that you are in a crunch. I have seen some of our lenders make amazing concessions for customers who hit a stumbling block financially when they have gotten in touch BEFORE they fall behind.

It’s when a person stops making minimum payments, avoids calls from creditors and just gives up on their situation / assumes they are up the creek or are too embarrassed to admit that they may not be able to meet obligations.

This looks to creditors that the person has abandoned the debt and is now looking to stick it to them.

Unfortunately, many times people call us at Dominion Lending Centres when they are already months behind and been served with collections / seizure notices and credit is ruined. At that time, they are too far gone and lenders/creditors are normally not able to help.

Any time a person calls to advise that they are looking for a solution to help with a cash crunch, the first question I ask is “Have you spoken to your creditors?”

Don’t be embarrassed, be proactive!! Save your credit standing, your assets and your future. Short term pain is much better than long term ruin any day.

I have seen it all in my 10 years of experience and I am here to help! No shame, lets get you pointed in the right direction!

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca