First Time Home Buyer Incentive

This year on September 2nd the first-time buyer incentive will be available.  It is a program designed to reduce mortgage payments for qualifying first-time buyers with a minimum 5% down payment required for a fully insured mortgage.  This is achieved by sharing in the equity of your home.  Canada Mortgage and Housing Corporation (CMHC) will provide you with 5% of the cost of an existing home, or 10% of a new home. 

This does not have to be paid back until you sell the property and there is no interest charged!  Of course no great deal is without some fine details, so please take note of the following:    

1.  If your household income is more than $120,000, you are not eligible for this incentive.    
2. Your total borrowed amount (including the CMHC equity incentive) must not be more than 4  times your household income.

 An example scenario would be if your household income is $120,000, the maximum purchase price would be approximately $505,000 with 5% down and $565,000 with a 15% downpayment.

*You are required to pay the incentive back when you sell the home or after 25 years and the repayment amount is based on fair market value.

To help you secure the best possible rates and terms. Contact us today at 1-416-822-5886. 

Don’t just dream about home ownership! Let us help you make this dream come true!

CLICK FOR FREE CONSULTATION 

Final Expense Insurance!

The price of a funeral in Canada can often be more than $25,000. If you aren’t properly prepared, your funeral can be a large financial burden on your loved ones and a responsibility they don’t need during an already difficult time. Make it easier on your family by planning ahead for the costs that come with your funeral.

* You can obtain coverage oftentimes without a medical exam, and even without needing to answer any health questions.
* You can obtain a $25,000 with guaranteed eligibility for most individuals ages 40 to 80.
* You can take out a policy and get it issued immediately, with no lengthy waiting periods.

$25,000 whole life coverage could cost as little as $20/per month... Based on the average life expectancy of each applicant you will usually see almost a 2 to 1 return on your invested premiums...guaranteed return on your investment.

By partnering with leading Canadian insurers, MoneyValue makes it easy for Canadians to get affordable no medical coverage.

Apply for a quote and discover your options now.

Apply Here for a Quote

How Seniors Can Easily Save Money on Travel During Retirement!

One of the perks of your golden years is being able to get out and see the world. But when you are living on a smaller budget during retirement, you need to find easy ways to save on all those vacation plans. Thankfully, planning a budget-friendly trip from start to finish is pretty simple, so long as you do a little research. If you need some ideas on how to save on your next adventure, look no further than these simple cost-cutting tips.

When you plan a trip, you probably always think about hotels, flights and packing. Using sites like Priceline can help you save money on all your travel plans, and even provide cashback opportunities.

Get Discounts on Cars, Hotels and More

Wherever your travels take you, you are going to need a place to stay. Luckily, discount travel sites like Hotels.com make it easy to find a hotel with all the features you need, at a price you are very comfortable with. Look for last-minute deals or rebate offers, which can give you some additional money back on your bookings for hotels, flights and other travel needs. You can use that money to plan your next big trip.

If you are flying, you can try discount sites like Priceline to help you snag the best deals on every leg of your journey -- you may even be able to snag a coupon if you dig a little deeper. Alternatively, you can use flight tracker apps that send notifications to your phone as soon as prices drop or increase, which can make it much easier to find a flight to fit your budget.

If you need to rent a car for your trip, you can find ways to save there as well. Rental companies like Enterprise typically offer promotions and discounts that can help reduce those rental rates, especially on weekends. You can save even more with cashback offers on rental cars, so be sure to shop around before you book your ride.

Pick a Destination That is Budget-Friendly  

If you are really savvy, and flexible, you can definitely book budget-friendly international trips. For example, if Paris is calling your name, you could always book a cheaper trip to Budapest and experience many of the same kind of attractions at a fraction of the price of traditional Parisian adventures. You can also check sites like Groupon for savings on experiences and dining, even in popular destinations. When you need an easier way to save, however, try choosing a destination that is a little closer to home. There are so many exciting and beautiful places to see in Canada, so consider getting out and exploring areas you have never been to before.

Don’t Forget to Prepare Your Home

It’s important to give some serious thought to preparing your home before you leave. The last thing you want after saving yourself so much on your vacation is to come home to a very expensive problem. Before you go, check around your house to make sure batteries are replaced in smoke detectors and that all your windows are closed and locked. If you are leaving in the winter, you may also want to leave a faucet dripping to prevent pipes from bursting. It’s also always a good idea to have a friend or family member stop by your house to check things out during your vacation. This can be especially helpful if you forget to put a hold on your mail, or if you need someone to help water plants while you are away.

Living on a smaller budget in retirement is no reason to limit yourself from seeing the world. With a little time and some basic planning, you can put together budget-friendly trips that will really add some joy to your golden years. So what are you waiting for? Start planning your next vacation today, and don’t forget to look online for money-saving discounts, promo codes and rebates to help you save.

Hazel Bridges

www.agingwellness.org

Photo Credit: Pixabay

Income Replacement Insurance

Case Study: 85% rental offset on a basement rental.

Purpose

• To purchase a new home with basement rental unit
• Qualify for 80% LTV using the rental unit income

Income

• Stable salaried position earning $75,000
• $800/month rental income as proven by signed lease agreement, and can provide fair market rent analysis with 2 comparables

Credit

• 580 FICO due to missed bills during time of marital breakdown
• Excellent mortgage repayment history
• GDS/TDS is 24/35% with stressed TDS of 44% using the mortgage rate plus 200bps

Property

• $450,000 property value
• Self-contained basement rental unit with own entry, full kitchen and bathroom
• Good condition, well maintained property
• Suburban area with DOM under 30

Down Payment

• $30K from client's own savings
• $50K gifted from family member

Deal Rationale:

Client was offered the following options:

• A 1 year mortgage at 80% LTV for 5.14%
• A 2 or 3 year mortgage at 80% LTV for 5.39%

The client chose the 1 year term at 5.14% offer and we used the client's $800 in monthly rental income to offset the client's expenses:

Mortgage Details
LTV	80%
Property Value	$450,000
Mortgage Balance	$360,000
Mortgage Rate	5.14%
Stressed Rate	7.14%
Amortization	30

85% Rental Offset Salaried Income $75,000 Monthly Expenses (PITH) Stressed Monthly Mortgage Payment $2,403 Heat $75 Tax $458 85% Rental Offset  -$680  $2,256 GDS/TDS 24/37% Stressed TDS 44% Good or bad credit, Call Us for all your Mortgage Needs. Call +1 416 822 5886 Email: contact@moneyvalue.ca Visit www.moneyvalue.ca

Tips on Guiding Seniors Through the Funeral-Planning Process

The death of a loved one is a difficult time for families to endure. There often is confusion, shock, denial, despair, anger, and almost every other possible human emotion. There can be great financial stress as well due to the expense of the funeral itself and uncertainty about the future if the deceased was the primary income earner.

Because of this stress, many people opt to pre-plan their funerals as part of their routine estate planning. A pre-planned funeral can help your family better deal with your death. Here are some ways to make a funeral and other arrangements less of a burden on you and your family.

The Ins and Outs of Funeral Pre-Planning

When a funeral is pre-planned, every aspect can be considered, from the wording of the obituary, type of service, casket model, and more. People tend to have strong personal opinions on such decisions as to whether to be buried or cremated, whether to have an open-casket service, and even what musical selections will play during their funeral. Pre-planning allows individuals to organize the exact funeral they desire. Again, this is not a morbid thought but a way that you can lessen the burden when you pass away. With pre-planning, families can feel assured that they are following the deceased’s wishes.

The financial aspects of a funeral are addressed with pre-planning as well, from payment in full of an amount sufficient for a funeral. Pre-planning my provide you with the option of pre-paying for your funeral, possibly securing lower rates and avoiding the problem of liquidating estate assets to pay for a burial.

Most funeral homes offer pre-planning services, where they can discuss your wishes and create a roadmap in the event of your death. There are some obvious potential problems with a pre-planned arrangement. For example, you might not be living near the funeral home at the time of your death -- you are likely hoping your funeral plans will be long off in the future, and who knows what life you’ll be living then.

Other arrangements for handling the payment portion of a funeral is to take out an insurance policy with a benefit that would cover funeral expenses or to set up a burial trust fund.

When the Funeral Is Not Pre-Planned

Although many are arranging their funerals in advance, most people don’t like to think about their deaths, so they neglect pre-planning arrangements. In the event that you are guiding someone through the loss of a loved one, there are several ways to provide support and help them make choices in a stressful moment.

People grieve in their own way, so it’s not especially helpful to be intrusive during this time. Offer your support in tangible ways, such as helping with funeral arrangements. Offer to speak with the funeral director yourself so that the grieving family member does not have to be inundated with the death process. However, make sure to include the person in decisions and listen to the funeral director’s advice. Since they deal with grief on a daily basis, they often can provide insight, guidance, and assistance during this time.

Beyond planning for a funeral, a grieving person might need your help in navigating the world after the death. When the funeral is over and the shock begins to subside, this person may need to create a new life. Offer to help address long-term decisions and connect with support services that may be available.

Death will bring shock and stress for families and surviving spouses. Consider how pre-planning can lessen that for your family, and when you know of others going through the stress, be there to provide support.

Hazel Bridges
hazel.bridges@agingwellness.org
www.agingwellness.org

Photo Credit: Unsplash

Bad Credit Mortgage

What is a mortgage actually?

It is money borrowed from banks and other commercial lending institutions to cover the cost of a home, and pay the principal back over time with interest. This type of loan is called a mortgage. When it comes time to purchase a home, many people are unaware of all the different mortgage options from which they can choose. Purchasing a new home is stressful enough, which is why it is imperative that you understand all of the different mortgage options you have available. Regardless of whether you are a first time home-buyer or you have been down this road before, it never hurts to have information about the various programs to see if a better option exists for your needs.

Attractive mortgage rates make this an optimal time to improve credit scores. If you have equity in your home but have had credit problems, a bad credit mortgage may provide an opportunity to set things in a rightful way. If you own your home, need bridge financing or have at least 15% toward a down payment, you have mortgage options despite credit blemishes.

Those with blights on their financial records often think a mortgage with bad credit is not possible. But whether you seek a second mortgage, equity line of credit or another type of home financing loan, bad credit mortgage loans are possible and may be the best way to repair and improve credit rating.

In fact, credit rating is not an important part of a loan assessment process for a bad credit mortgage process. The result is that securing home loans with bad credit is possible when a large enough down payment is made, or the credit rating has been improved, as well as meeting the basic criteria.

The greatest long-term benefit for the borrower with bad credit is that by making regular payments on their new loan for a reasonable period of time and it will strengthen their credit score. This better credit rating will then allow the borrower to refinance the bad credit home mortgage loan at a better interest rate in the future.

The process of getting a bad credit mortgage in Canada can seem overwhelming to first time homeowners, which is why it is important to do some research and work with a mortgage broker. Many people in this day and age get by just fine without owning or leasing a car. Some can even get along with no credit cards in their wallet. However, while lots of Canadians are content to rent apartments, there is certainly a large number of Canadians that are striving towards one goal, one of home ownership. Getting a house to raise their family in. However, for those with bad credit, their prospects can seem grim. In fact, bad credit mortgages are also known as “high-risk” mortgages, because of the level of financial risk that the both the borrower and lender are taking.

There are basic concepts that come along with mortgages in Canada.

Open mortgages

It allows you to pay off your mortgage in part or in full at any time without penalties, you can select any time to renegotiate the mortgage, flexible, but comes with a very higher interest rate.

Closed mortgages

It usually has a lower interest rate but does not have the flexibility of an open mortgage. You have a fixed or variable rate for a term, and to break this mortgage before the end of term will incur some costs.

Conventional Mortgage

If you have 20 percent of the purchase price on your new home to use for a down payment, you will be able to apply for a traditional mortgage. You may not have to apply for default insurance when applying for a conventional mortgage.

High Ratio Mortgage
A high ratio mortgage is a mortgage in which a borrower places a down payment of less than 20% of the purchase price on a home. A high ratio mortgage will require mortgage insurance. Mortgage insurance is usually purchased by the lender through one of Canada’s three default insurers.

Have you been rejected by your bank, because of poor or bad credit? Notably, many big banks consider borrowers who do not have a good credit rating to be high-risk.

Moreover, the big brick and mortar lenders have all but stopped lending to clients who don’t have a great income and perfect credit. More so, with the new lending rules in force in Ontario, homeownership is beginning to get elusive for many middle-class families.

Fortunately, there are still lots of options when it comes to bad credit mortgages in Canada. There are many monoline lenders with programs geared in making the dream of homeownership a dream come true. Same is true to those who want to a refinance or renewal of their current mortgage.

Do well to contact us for all your mortgage questions. We work with all major lenders including banks, credit unions and trust companies in Canada. We also provide private lending for clients, working with private lenders with very flexible terms, fees and rates. We will work with you, understand your unique needs and no matter your credit score, provide a solution to your mortgage needs. And our services are free.

MONEYVALUE

200 Consumers Rd, Suite 700
M2J 4R4 Toronto ON
t: 416 822 5886
e: mortgage@moneyvalue.ca

https://moneyvalue.ca