The Smartest Way to Tap Your Home Equity

Tapping your home equity is often the most convenient way to come up with a significant amount of cash in a relatively fast way. There is no need to sell taxable holdings and incur extra taxes and all you need is an approval.

Here are 3 ways to tap your home equity with secondary home loans:

Apply for a Second Mortgage

A second mortgage also goes by home equity loan and is considered to be the most structured among the home loans, more or less mirroring your primary mortgage.

Second mortgages can have a variable or a fixed interest rate with the rate oftentimes higher than the first mortgage. They can have a set term and are often amortized in the beginning. Note that payments are very much like in primary mortgage with the principal and interest listed separately. A second mortgage also can’t be further drawn upon after being issued.

Get a Home Equity Line of Credit

A home equity line of credit, also referred to as a HELOC, is the most flexible secondary home loan in this list. There is often a minimum amount that has to be dispersed although no funds is usually released upon approval because a HELOC acts like a credit card, not a lump sum loan.

When you are approved for a HELOC, you’ll have the flexibility to just withdraw whatever amount you need as long as it does not exceed your limit. Most HELOCs nowadays come with a debit card and/or a checkbook making your life even easier when it comes to accessing your funds. Another feature is that you can avail of future amortization because of this loan type’s structure. Payment isn’t as strict because you can choose to just pay for the interest each month as long as you can pay for your entire balance at the end of the loan term.

Go For a Cash-Out Refinance

A cash-out refinance is different from the two other secondary home loans above because this option doesn’t necessarily involve a second loan. In a cash-out refinance, the homeowner can just refinance the home for a larger sum and get the difference as a cash-out. A downside would be that this type of loan can have really high closing costs depending on several factors.

Tap Your Home Equity in A Smart Way

Don’t forget that failure to pay any of the 3 secondary home loans above will mean losing your home to foreclosure; so choosing an option that fits your ability to pay, and not just your desired amount to borrow is crucial. Amounts that will be granted to you will also be dependent on several factors such as the desirability of your location, your home’s value, and your ability to pay. You’ll have to have an idea of your future cash flow before signing anything. To be on the safe side, it is best if you can consult with refinancing or second mortgage experts before deciding on one.

Need help and more information about the smartest ways to use your home equity? Contact us and we’ll assist you soonest!

Bank of Canada Expected to Make No Changes on Interest Rates

It looks like the central bank is not going to announce changes in interest rates soon, as can be inferred by economists regarding the matter.

Senior deputy governor Carolyn Wilkins and governor Stephen Poloz of Bank of Canada will provide an update soon; but experts are not expecting them to give an update on the central bank’s outlook that may hint on a future interest hike. This is in view of the cooling Canadian economy in recent months.

Economists Concur

Economists agree that the Bank of Canada is not likely to announce a drastic change anytime soon, and that any changes will be very small. The key target for overnight rate is currently at 1%, already boosted twice this year by 0.25% in July and again in September.

Nomura global foreign exchange analyst Peter Dragicevich shared in a recent research note that they are expecting that the Bank of Canada will give gradually increasing interest rates based on the central bank’s outlook.

Impressive Economic Performance

The strong growth in the Canadian economy is the background by which the bank’s 2 rate increases took place. It was ended in July after 8 strong months of increasing gross domestic product. The latest update was released on October 31 by Statistics Canada.

Economist Benjamin Reitzes of BMO Capital Markets said that there are likely to be changes to the growth outlook in the bank’s monetary policy report because the GDP for the second quarter was way above what the bank expected.

Reitzes shared in a recent commentary that changes in the growth outlook may result to 2017 revised by as much as 3.1%, a figure that will match the best pace in the past 12 years. He added that the GDP for the third quarter is likely to hold steady at 2% and that the same is expected for the last 3 months of 2017.

No Patterns and No Scripts

Bank of Canada governor Stephen Poloz said in a recent speech that the central bank won’t follow a script when it comes to rate hikes, even in view of the Canadian economy’s standing this year. He further said that what the bank will do is just to pay close attention to data changes in the economy to determine possible future changes in interest rate policy. He added too that monetary policy will almost always be data dependent and can swing in either direction with the data.

It should be noted that the bank is equipped to ascertain how things will turn out. They can model how today’s stronger exchange rate and interest rate may impact those with large debts to slow down consumption and housing.

Other factors may affect economic growth. Ontario’s new minimum wage might have a significant impact on inflation rates and the new mortgage rules might switch things around.

Want to know if these recent turn of events can affect your eligibility for getting a home equity loan or a second mortgage? Contact ustoday so we can talk about this with you.

5 Steps to Consolidate Debt

Waiting for magic and hoping your debts and bills will go away won’t happen without a little help from you. Know that although you can’t really make debt disappear, you have the power to make it easier to pay via debt consolidation.

Why Consolidate Debt?

Managing several debts with various interest rates and due dates can be very stressful. Consolidating your debts into one helps you keep track of payments faster and even opt for a lower overall interest rate. Yes, the initial step of documenting what amounts you owe and to whom can be daunting, but the long term benefits outweigh the initial effort you have to put in.

Consolidating debts is a big challenge for most people, that’s why we listed the 5 steps that you can take with the help of a financial expert to make things more manageable for you. Read about them below!

Get to Organizing

Find out what you owe and to whom. This allows you to have a better awareness of your credit status and credit rating, the crucial numbers that you’ll help improve as you pay off your debts after consolidation. Note that fees will usually be involved in this stage.

Start with contacting your credit bureaus and move to taking a detailed inventory of your debts. Take small steps. Don’t forget to keep accurate records more so when you start paying everything off.

Find Available Debt Consolidation Options for You

Depending on your area, you may seek the help of mortgage brokers to guide you in the debt consolidation process. Some options may be better for you compared to other means based on your needs and means. Private lenders, banks, or credit unions may all have solutions for you, the trick is finding the best one to avoid future problems.

Apply for a Loan

Once you already know how much you need and have picked a lender for debt consolidation, the next hurdle is actually getting approved for it. Knowing how the process work counts the most in terms of getting approved.

Make sure that you’ll be applying for a loan that will cover all your debts to avoid future issues. Choose the one with payment terms that you can afford. The last thing you want is to end up in worse financial status after this. Get a mortgage broker to go over your list and the payment terms to ensure you’re not missing anything important.

Bounce Back

Bouncing back can mean the actual process of paying for your debts or reapplying for a loan if you got turned down. If your application wasn’t approved, then note your mistakes and don’t be afraid to ask about what went wrong.

Consolidate Your Debt

Once you get approved, be sure to pay off your existing debts and use any extra money to pay the loan back. Remember that paying your debt on time will ensure you incur only the bare minimum of interest and help improve your credit rating and financial record.

Need the help of a mortgage broker so you can consolidate your debts? Contact us today! We’ll be happy to assist you towards your goal.

How Toronto Property Values Will Benefit from New Public Transport

It is often the case that politicians will clamor to take credit for new transportation improvements such as the opening of a new subway. Though certain figures and political  parties will surely benefit from having better access to cheaper and easier transportation, no one could be happier than the residents of the area who would be reaping the benefits of such an event.

Real Estate Benefits

Easier  travel and commute is just the tip of the ice berg as far as the benefits of a new transport system can bring. Almost all the real estate along the route or the track is sure to gain an increase in value!

It isn’t a secret that properties that have good access to roads and transportation generally are worth more than their less accessible counterparts. In fact, a US-based study showed that even in times of economic crisis, homes that are near public transit are able to maintain more of their value as compared to homes that are in non-transit areas.

The stability of property values is also affected by the types of transit available nearby. A phenomenon called the “transit premium “ is the term for this. This phenomenon is when property values tend to remain higher in areas with consistent public transportation access, such as what is true for properties near train stations and highways. The values usually drop the farther you are away from the train lines or highway. Too often, buyers were observed to follow a deal breaker rule, often considering more than 8 minutes walk to be a deal breaker when renting or purchasing a home.

The Course of Development

It can’t be denied that development follows subways. Although we don’t have the specific numbers for Toronto right now, the fact remains that the most desirable Toronto neighbourhoods are all well-served by transit access. We are well aware that this is just one of the many factors for an area’s desirability but we also can’t overlook the fact that for many homebuyers, especially first time homeowners, a short commute to work is near the top if not the top priority.

How Toronto’s Real Estate Market Is Shaped by Transit

Affordable areas have been known to skyrocket in value as demand surges when said area is made accessible. This is true for both residential and commercial spaces. Rents are known to be normally 40% more expensive in the 500 meters radius around subways or light rail tracks.

Due to  this intensifying urbanization, an 83% population growth is predicted for Toronto by  year 2031. It should be noted though that this intensifying urbanization isn’t just taking place in the middle of the downtown bur rather at ‘outer communities’. Such is the case for communities along Eglinton and Finch, where the demand has been steadily giving rise to further increase in property values.

Curious about what impact urbanization may have a profound effect on the possibility of you getting approved for a home equity loan? Contact us and we’ll walk you through the process.

Your Home Checklist for December 2017

We’re about halfway into the month and it isn’t too late yet to spruce up your home for the awesome holidays up ahead. What better time than now before winter fully sets in or before you’re too busy, right?

Here are some December home checklist for you ranging from the most time-consuming to some that can be done in just under an hour!

Ensure Holiday Home Safety

Making sure your outdoors are well-lighted, that all your locks are working, and that your shrubs and trees are trimmed can deter those with bad intentions from targeting your home. This is a must whether you’re staying or going somewhere for the holidays.

Plan for Winter Storms

The last thing you’d want is to be snowed in without even a shovel. Get yourself some shovels, a window scraper, extra weather stripping, heavy duty winter gloves, some reflective tapes for your driveway, batteries, and don’t forget a few days’ worth of bottled water and non-perishable food. Have a family protocol too if other family members are going to school or at work. You better be sure that you also have an emergency kit with fresh supplies.

Freshen the Guest Room

It is nearly inevitable that you’ll have some guests staying over due to the holidays or bad weather so it pays to be ready. Have a set of fresh clean sheets ready, clean towels, and basic toiletry. Whoever will be staying in your guest room will be delighted.

Liven Up Your Indoor Recreational Areas

The idea is to have a designated indoor area for recreation. You’d be surprised at how much of an impact a new rug or new throw pillows can bring to your ‘chill’ space or how much kids will adore new organization bins for their toys.

Clean Your Chimney

A certified chimney cleaner will ensure you won’t have issues when its time to light your first fire of the season. This will also prevent the likelihood of a house fire.

Decorate for the Holidays

Time to bring out the ornaments and the lights and start decorating! You will want to start as early as possible so that you’ll have a chance to replace broken décor or busted lights. More importantly, you will want to have plenty of time to enjoy and admire your decorating skills.

Address Snow Build Up

Snow can pile up on tree limbs and eaves of roofs so make sure you shake them up after a particularly heavy snow fall. Doing this will make for a safer winter overall.

Shut Off Some Water Supply

This is a must for those who garden and live in Ontario. You will want to disconnect hoses and make sure they have no water to keep them functioning well until next year.

Make Space for Winter Gear

Preferably near your main entrance. You will want to be able to hang your coats, scarves, and other winter clothing for easy access right before heading out.

Have a Designated Gift-Wrapping Station

And be sure you have enough tape, wrapping paper, plain boxes, ribbons, and cards. You want to be ready for a marathon in gift wrapping later in the month. Don’t wait until the last minute!

Just settling in your new Oakville home or looking forward to moving soon? No matter how long have you been living in Oakville, it isn’t too late to get to know your town even better. Who knows? You might even find your ultimate dream home in Oakvilletoo! Browse the available ones in your target Oakville neighbourhoods and contact usshould you want to schedule a viewing.

Auto Insurance System Reform Being Pushed by Ontario to Slash Rates and Fight Fraud

Ontario has the highest auto insurance premiums in Canada despite the province having low rates of collisions and deaths – a big factor to that is the prevalence of auto insurance fraud.

Changes Ahead

Ontario is looking into ways to push for changes in the auto insurance industry to help try to combat fraud and eventually reduce premiums. This is in view of the reported cost of auto insurance fraud totaling to an estimated $1.6 billion a year as shared by Finance Minister Charles Sousa. He said it is now time to put a stop to the fraud, a move that may create new challenges for real crash victims.

Sousa shared that there are plans for the government to develop standard treatment plans for commonplace collision injuries such as whiplash and sprains. They will also create neutral and independent examination centres for the medical assessment of more serious cases and tackle fraud in the system by establishing a Serious Fraud Office. He hopes that getting rid of fraud will significantly reduce costs and subsequently lower premiums.

The Numbers

Ontario found out earlier this year via a government-commissioned report that the province pays Canada’s most expensive auto insurance premiums despite having the lowest numbers of fatalities and accidents. The higher cost is for covering loses due to auto insurance fraud.

All of the above comes at a time when the Liberal government is still working on their promise of a reduced rate. Although they are about halfway of their goal right now, they missed their self imposed deadline in August 2015.

Lawyers Say New Plan Will Unfairly Target Victims

Personal injury lawyers are not fans of the proposal, pointing out that the new process will work unfairly against real victims.

Michael Smitiuch of Smitiuch Injury Law based in Toronto stated that it seems the current government has a talent for punishing people who truly needed help the most as it will create unnecessary  roadblocks for victims. The lawyer also said that a cookie cutter approach like what the province is proposing will not be enough to adequately meet the needs of injured victims. He further voiced out that he sees more problems in the future regarding claiming of benefits and making sure that they are paid out.

Neinstein Personal Injury Lawyers’ consultant Sebastian Gallagher said the proposed system will do the opposite of providing clarity and lessening confusion.

A Different Time for The Same Mistakes?

Critics expressed that the new plan have concerning similarities with the failed Designated Assessment Centres introduced in 1994 and shut down in 2006. The DAC failed because the process was usually long, drawn out, and a sinkhole of resources.

Should the new proposal be implemented, proving fraud or the absence thereof might become even more difficult. Some people will do anything for fraud. Luckily for you, we specialize in uncovering cases of it through the use of our Mississauga private investigation services and techniques. Contact us should you wish to get data on someone or place them under personal surveillance the right way.