Financial Planning

Regardless of your current job security level and your overall financial wellness, taking a proactive approach to your finances by putting mortgage payments aside while you’re doing well can help set any homeowner’s mind at ease for the future. It’s a wise move to set money aside each pay period so you can accumulate six to 12 months’ worth of mortgage payments in a short-term GIC as security for a possible job loss. Planning for the future and things such as illness or potential job loss is one of the most important undertakings homeowners can make to ensure you can pay your mortgage in uncertain times. And, best of all, if you remain healthy and your job remains secure, you can take the money out of your GIC and make a prepayment back on your mortgage on your anniversary date (or whenever your prepayment options permit you to do so), which can end up saving you thousands of dollars in interest payments and trim down the amount of time it will take to pay off your mortgage. But if it’s not plausible to save money each pay period, refinancing to access the equity you’ve

already built up in your home is another valid option for planning ahead in uncertain times. In addition to freeing up money to store future mortgage payments in a GIC, some of the money can also be used to pay off high-interest debt – such as credit cards – and get your New Year off to a fresh financial start. You will find that taking equity out of your home to pay off high-interest debt can put more money in your bank account each month. And since interest rates are at historic lows, switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are often penalties associated with paying your mortgage loan out prior to renewal, but these could be offset by the extra money you save through a refinance. With access to more money, you will be better able to manage your debt. Refinancing your mortgage and taking some existing equity out could also enable you to do some home renovations, take a vacation or even invest in your children’s education.

Must have Real Estate Apps for 2012

	Crumbtracks This is a real estate journal for buyers.  Buyers  can take video, photos, make notes, comments and rate every home they view.  It stores and organizes it all for the client and realtor.  Even includes a working mortgage calculator!
	TourNarrator This captures buyer's comments as they view the listing.  It is captured in a PDF and can be emailed to your buyer or the listing Realtor for instant feedback on your showing of their listing.
	Real Alert Safety device for agents that can set off an alarm on your phone, insta-dial 911, locate hospitals on GPS, records suspicious data, instant alerts a friend via email with your location and has a flashlight built in.
	Magic Plan The only app that measures, draws, and publishes interactive floor plans of homes just by taking pictures.  Create floor plans of your listings in minutes!
	Photosynth A very simple app that creates 360 degree virtual tours of your listings from a series of shots taken by your smart phone.
	Milebug Full GPS tracking on your phone and reporting of all your mileage in categorized by work or pleasure.  One of the most sought after audit areas with Revenue Canada and Realtors.
	My Measures & Dimensions Lets you take any photo and quickly draw dimensions on top of objects or spaces in the photo. After photos are marked up with measurements, they can be emailed to anyone, or added to the iPhone's photo library.
	Courtesy of GoMax Solutions www.gomaxsolutions.com

Hybrid Mortgages: Consider a 50/50 mortgage?

Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate. Although there was a time in recent years when mortgage experts considered a variable rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you. In essence, since it’s extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk. If you opt for the Dominion Lending Centres 50/50 Balanced Mortgage, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty.

As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge. The 50/50 mortgage product is well-suited to a variety of borrowers, including those who: Would normally go fully variable but are afraid prime rate is at its bottom Aren’t comfortable being locked into a fully fixed rate Can’t decide between a fixed or variable mortgage Savvy first-time homebuyers Some features of the 50/50 mortgage include: 20% annual lump-sum pre-payment privileges 20% annual payment increase ability Portability (the option to transfer your existing loan amount to a new property without penalty) As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!