Round Up, Pay Down

There are a few tips you can follow to pay down your mortgage debt sooner that sound so simple, you'll wonder why everyone doesn't follow them.

One tip is to round up an uneven monthly mortgage payment to an even amount, and watch how even a small increase can make a big difference. For example, call and ask how adding just $50 a month to your mortgage payment can allow you to pay off your mortgage sooner, and slash thousands off your interest payments.

Where can you find an extra $50, $100 or more "extra" money a month? As any financial advisor will tell you, it's in the little things – brewing your own coffee before you leave home, reading the news online instead of subscribing to a daily newspaper, packing a lunch and reducing your restaurant or fast-food lunches to a once-a-week treat instead of a daily habit are just some suggestions.

Another tip, if you get paid bi-weekly, is to pay your mortgage on the same schedule. Paying bi-weekly as opposed to monthly is another way to pay off your mortgage faster without even noticing. Again, you can save thousands in interest payments with this little change too!

Please call for more ways to make paying off your mortgage faster, more efficient and cheaper!

Structural Integrity

Few things can lower the value of a house like foundation problems. Whether you're a homeowner or a homebuyer, learn how to spot current or potential problems by looking out for the following signs.

Inside the house:

• Floors slope or have depressions, humps, or soft, spongy spots; tiles are raised or cracked; hardwood is warped.

• Wallpaper is torn, wrinkled, or curling.

• Cabinetry won't stay shut and/or has separated from walls or ceilings.

• Doors or windows don't open and close properly, and/or have gaps between them and the framing; frames are askew.

• Cracks in sheetrock, walls (particularly at joints), ceilings, the basement, moldings; in and around fireplaces; and at the corners of window and door frames.

• A lot of nails popping out of sheetrock or corner frames.

• Bowed basement walls.

Outside the house:

• There are cracks in the brick veneer or mortar, most commonly found in a zigzag or "step" pattern that follows mortar.

• The brick veneer is pulling away from window or door frames, leaving a gap.

• Fascia boards are separating; this is especially common at the corners of the house.

• The roofline is uneven.

• The chimney is cracked and/or tilted.

• Visible cracks in the foundation. Hairline cracks are normal and unlikely to be problematic; larger cracks, which can let water in, are cause for concern.

• Gaps between garage doors and the ground.

If you see any such signs around your current house, don't hesitate to contact a professional – left unaddressed, small problems can become big ones. If you're considering buying a home that exhibits any of these signs, be sure to have it inspected so you have a clear understanding of its condition.

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Down With Debt

A survey resulting in a 2013 Household Debt Report* was recently conducted to measure how much debt Canadian households are carrying, and how that debt is being managed. Highlights of the survey are as follows:

• 83 percent of Canadians have some form of debt, up from 74 percent in 2012.

• The average monthly debt payment made by Canadians has declined, dropping from $1,138 in 2012 to $986 in 2013.

• 44 percent of respondents said their household debt level has decreased over the past five years, while 28 percent said it has increased.

• 34 percent of respondents cited their mortgage as their largest source of debt, followed by car loans (19 percent of respondents) and education funding (14 percent of respondents).

The report indicated that 58 percent of the respondents expect to be debt-free within five years. For respondents who hold a current mortgage, 33 percent expect to be debt-free within five years, while 56 percent expect to be debt-free within 10 years. Of those with other types of debt, 29 percent expect to be debt-free within the next year.

Have you taken the time to evaluate your current debt situation? Today's continued low interest rates make it a great time to review your financial obligations to see if there's a way you can pay down your debt faster. For example, choosing a shorter amortization period for your mortgage will not only allow you to become mortgage-free sooner, but also save you thousands of dollars over the life of your mortgage.

Please call for a no-obligation analysis of your current mortgage loan and to find out if there's a way you can eliminate your debt faster!

* The BMO 2013 Household Debt Report was conducted by Pollara using an online survey of 1,005 Canadians fielded by Pollara between July 12th and 16th, 2013. A probability sample of this size would be accurate to +/- 3.1 percent, 19 times out of 20.

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Your Mortgage Question Checklist

Have you ever gone to the doctor with a list full of questions in your head, only to draw a blank when you finally sit down with the doctor? It's sometimes the same with your mortgage broker, so to make it easier to remember all your questions, tick off the applicable topics on the list below and have it handy!

• How much can I afford to pay for my new home?

• How much do I need for a down payment?

• What other costs should I budget for?

• What are the different types of mortgages, and different types of interest rates?

• What are my payment options, and can changing my payment frequency make a difference to my mortgage balance and term?

• What's the difference between mortgage prequalification and mortgage pre-approval?

• How can I check my credit rating? How does it affect my mortgage rate?

• Does it make sense for me to refinance at this time?

• Am I able to renew my mortgage early?

• How can I pay off my mortgage sooner?

• How can a mortgage broker help me find the right financing?

• How long does the mortgage processing or transaction take?

• Can I get a mortgage to renovate my property, or to pay off other debts?

• I'm self-employed – how will this affect my mortgage application?

• __________________________________________
• __________________________________________

Questions?   Call Thomas Parrish 604-512-8526 or Wanda Holmes 604-512-8527 or email us at info@thomaswanda.com

Please call today with all your questions!

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Go With A Pro

Selling a house – how hard could it be? From the many homeowners who have attempted to sell their houses themselves, the answer is, "Much harder than it looks!"

You may have heard the term "For Sale By Owner" or "FSBO", which means that a homeowner is attempting to sell their home without the services of a real estate sales representative. Doing this presents some unique challenges to the seller, including but not limited to these issues:

• Homeowners tend to overprice their homes. Factoring in sentimental value alone, owners often price their homes as distinct, unique properties – not as one of a number of similar properties in the area. Up-to-date pricing — the kind a local real estate sales representative knows — is key to generating initial interest in the property for sale.

• Education on realty legal matters is crucial for any owner thinking of selling a property, especially for those without professional real estate guidance. Disclosures, legal forms and contracts must be in place and real estate laws must be adhered to in order to avoid any vulnerability to lawsuits.

• Advertising exposure generates significant interest in a property, and sellers going through a real estate sales representative benefit from the wide influence of being included on the Multiple Listing Service®, a powerful tool available to REALTORS®.

Remember, your real estate sales representative only gets paid when your property sells, so we'll do whatever it takes to make sure you achieve your goal – and ours! – by completing your home sale to your ultimate satisfaction.

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Fresh Pumpkin Pie

Ingredients for Pie Crust:

1 1/2 c. all-purpose flour

1/4 tsp. salt

1 tsp. sugar

1 stick (8 Tbsp.) butter, cut into small pieces

4 to 5 Tbsp. ice water

Ingredients for Pumpkin Pie Filling:

2 c. cooked, mashed pumpkin

1 (12 oz.) can evaporated milk

2 eggs, beaten

1/2 tsp. vanilla extract

3/4 c. packed brown sugar

1/2 tsp. each ground cinnamon, salt, ground ginger, allspice, cloves and nutmeg

Directions:

1. Preheat oven to 400° F (200° C).

2. Mix together flour, salt and sugar for pie crust, then cut butter into mixture and combine with hands, adding 1 Tbsp. water at a time, as needed, until dough is moist enough to hold together.

3. Roll dough into flat disk, then take a sharp knife and trim pastry to 1 1/2" wider than an upsidedown 9" pie pan. Gently ease the crust into the pie pan, then refrigerate for 30 minutes.

4. Add all pumpkin pie filling ingredients to a bowl; mix well.

5. Pour pie filling into the pie shell and bake for 40 minutes, or until center is set.

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In Plain Sight

In empty homes, flaws stand out all the more. As buyers will have little else to focus on during showings, you'll need to focus on preparing the following five areas of your vacant home before showings.

• Windows and doors. Replace missing or broken screens and glass panes. Make sure windows and doors open, close, and lock properly, and are clean. Silence squeaks with lubricant. Replace caulking and weather-stripping and repaint as needed. Polish or replace door hardware.

• Walls and ceilings. Remove wallpaper. Sand rough spots, repair popped nails, and patch holes and cracks. Wash your walls, then repaint them in a neutral shade. If your ceilings have water stains, give them a fresh coat of paint too. Replace missing or damaged trim and re-paint it as needed.

• Floors. Damaged or outdated flooring (e.g. stained, worn, an unusual color or passé pattern) should be replaced. Otherwise, repair and revitalize floors as needed: replace missing, broken, or stained tiles; have carpets professionally cleaned; make vinyl shine again with vinegar and water; wash and buff or refinish hardwood.

• Cabinetry. Make sure doors and drawers open smoothly and quietly, and outfit them with new hardware – this inexpensive improvement will go a long way towards updating your kitchen and bathrooms. If your cabinetry's in good shape but looks dated, you can refinish or reface it instead of replacing it.

• Plumbing and electrical. With little else to do in an empty home, buyers will be more inclined to play with switches, taps, handles and such, so ensure toilets flush properly, water pressure is strong, taps don't drip, pipes don't leak, and light switches, dimmers, and appliances work.

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On The List

As a homebuyer, your "needs vs. wants" list is one of your most important documents. Here's how it can serve as a valuable tool at different stages of the home-buying process.

• Creating a "needs vs. wants" list helps you – and your real estate representative – figure out exactly what it is you're looking for in a property, thus narrowing the scope of your home search. Creating that list before you start shopping will save you (and your rep) a lot of time and energy, and make the process shorter and less stressful for you.

• During showings, your list can help prevent you from falling "in love" with (and, as a result, overpaying for) a home by keeping you focused on your priorities and providing objective criteria against which you can measure each property. Take a copy to each showing and use it as a literal checklist to help you remember and distinguish between properties.

• If you feel your home search has gotten off track (e.g. it's taking too long or the homes you're looking at are out of your price range), your "needs vs. wants" list can help you correct your course. You may simply need it to remind you of your home-buying goals, or you may need to reassess and revise your list.

• After signing a purchase agreement, it's not uncommon to get cold feet. Reviewing your "needs vs. wants" list can be helpful here too. Compare the property you've chosen with the list you've made – if this home satisfies all or most of your criteria, and if any compromises you made still make sense, you'll no doubt find yourself reassured in your decision.

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