20 Mar

Selling Your Home in the Spring

General

Posted by: Jennifer Koop

Selling Your Home in the Spring.

Are you looking to sell your home? We have a few tips to help you make the most of the spring season!

  1. Hire an Experienced Realtor: Before preparing your home for the Spring market, you will want to hire an experienced realtor! A good realtor will serve as your guide through the entire sales process, helping you get your home ready for listing, showing potential buyers and finalizing the eventual sale. This is even more important given the changing landscape in relation to additional safety protocols with viewings and even virtual viewing options. Now, more than ever, the expertise of a realtor will help you navigate the sales process.
  2. Prioritize Repairs and Improvements: Before listing your home, it is important to go through room-by-room and address any issues such as chipped paint, small holes in the wall, broken fixtures, old appliances, etc. Correcting these minor issues will help your home truly shine when buyers walk through.
  3. Clean and Stage Your Home: Now that you have made the necessary minor repairs, you can start staging your home! Start with the exterior of your home and ensure you tidy up the yard, remove any junk and wash your windows! When it comes to the interior of your home, you will want to declutter and do a deep clean (a professional cleaning service can come in handy for this!). Once your home is decluttered and clean, your real estate agent can help you stage it so that it appears spacious and inviting.
  4. Consider a Pre-Listing Inspection: Once you are ready to list your home, it can be a good idea to consider a pre-listing inspection. The inspector would conduct a complete visual inspection of all interior and exterior elements (including HVAC systems, wiring, ceiling, chimneys, gutters, etc.), which would help put prospective buyers at ease.
  5. Organize The Paperwork: There is a lot of paperwork when it comes to selling your home. Having all of these documents organized and together for potential buyers will help to speed up the process and allow them to address any questions before the deal is finalized. Permits, renovation or repair receipts, warranties, rental agreements and copies of your utility bills are all good records for potential buyers.

Whether you are looking to buy or sell, it is important to work with a trusted real estate and Jennifer Koop, Dominion Lending Centres mortgage expert in Huntsville, Muskoka to ensure the best outcome for you and your family!

Contact us today 705-349-0502

Published by the DLC Marketing Team

13 Mar

4 Financial Myths

General

Posted by: Jennifer Koop

4 Financial Myths.

Enriched Academy was launched back in 2013 after a successful appearance on the TV show Dragons’ Den by co-founders Kevin Cochran and Jay Seabrook. Although they would have loved to appear on the hit TV show MythBusters as well, fact-checking financial advice just didn’t have the mass appeal of learning whether one could survive on a desert island with only a pallet of duct tape.

Undeterred, Kevin and Jay set out to investigate the issue and educate the Canadian public about the most common financial myths out there. After many years on the case, here are their top four.

Myth #1: You need money to make money.
Careful investing is the secret to building wealth and you do need an income to get started, so this myth is not entirely untrue. However, what most people don’t realize is that the amount of money you need to make money can be surprisingly small. Financial guru Dave Ramsey’s research group found in their survey that 70% of millionaires never earned a 6-figure income. Former BC school teacher Andrew Hallam wrote an entire book devoted to how he leveraged a modest teacher’s salary with some basic investing principles to fund an early and very comfortable retirement. Check out his best-selling financial bible the Millionaire Teacher if you are wondering how he did it!

This myth is busted!

Myth #2: Money is too complicated.
Managing your money isn’t complicated, it just that having too little (or too much) leads to a lot of issues that make it seem complicated. Enriched Academy offers plenty of free webinars where you can easily pickup all kinds of financial knowledge with just one-hour of your time. While one short webinar may just get you started, the fact is that mastering a wide variety of money skills doesn’t take as much time or effort as many of the other things we spend time trying to learn. A lot of us spend more time learning how to use some app on our phone or make the perfect pasta sauce than we do learning how to manage our money.

The knowledge required to effectively manage your money is not difficult to learn — this myth is busted!

Myth #3: Investing is too risky.
It might be easy to say this one is true given the abysmal performance of most financial markets in 2022. Investing can be risky, but you can learn how to monitor and adjust your risk to suit your targeted returns, life stage, and other factors affecting your risk tolerance.

Your investing timeline also plays a huge role. Investing for the short-term is always going to be a lot more hit and miss than holding a well diversified portfolio of equities and other financial assets over a number of years. Financial markets have a long history of proven resiliency, and they will recover. Given current inflation and interest rates and the chance they will persist for some time makes investing and even greater priority these days

This myth is busted!

Myth #4: Earning money is more important than saving money.
Careful field research by an endless stream of bankrupt athletes, actors and reality TV has-beens has proven that when it comes to cash, “the more you earn, the more you burn!” The belief that more income is a sure-fire solution to your financial difficulties is busted! Carefully tracking your spending, making wise spending decisions, and adjusting your spending appropriately to “enjoy life more” as your income rises is the golden rule, regardless of how much money you are making.

Money myths can be debilitating and can put all sorts of mental obstacles in your path that just don’t need to be there. Financial literacy will help you separate fact from fiction and give you the right mindset to overcome whatever money beliefs may be holding you back.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

For all your Mortgage needs contact us today 705-349-0502.

Published by DLC Marketing Team

9 Mar

10 “Must Know” Credit Score Facts

General

Posted by: Jennifer Koop

 10 “Must Know” Credit Score Facts.

If you are in the market for a home or a new car, you are probably very familiar with your credit score. Lenders are one of the primary users of credit scores and it can have a huge impact on whether you get approved for a loan and just how much interest it is going to cost you. What isn’t well known about credit scores is where they come from, what makes them go up (or down!) and who else besides potential lenders uses them to make decisions? Your credit score is going to be with you for life, so why not take a couple of minutes to get the facts.

  1. There are two credit-reporting agencies in Canada: Equifax and TransUnion. Your credit score may vary between the two. Lenders may check one or both agencies when you apply for credit.
  2. Your credit score is actually derived from the data in your credit report — which can be had for free once per year from Equifax and TransUnion. Some banks, credit unions, and other financial services companies provide your credit score for free as part of their services.
  3. Credit scores range between 300 and 900 with the Canadian average being 650.
  4. Your credit score is used for a lot more than just borrowing money; insurance companies, mobile phone providers, car leasing companies, landlords and employers may all require your credit score to make decisions.
  5. Five factors affect your credit score: length of credit history, credit utilization or how much of your limit you have used, the mix/types of credit you hold, the frequency you apply for credit, your payment history.
  6. Mistakes and omissions are not uncommon and is a good idea to check the details of your credit report. Both agencies have a process to report errors and get them corrected.
  7. Credit scores of 700+ are considered “good” and offer a higher chance of loan approval, greater borrowing limits, and lower or “preferred” interest rates and insurance premiums.
  8. Credit scores are continuously evaluated and adjusted. If you have “errored” in your past, the damage is not permanent! Your score can be raised/rebuilt by using credit responsibly (see #10).
  9. Checking your credit score regularly is a good idea and will help detect errors, monitor improvements, and identify fraud. This is a “soft” enquiry and will not affect your score.
  10. To increase your credit score: make payments on time, pay the full amount owing, use 35% or less of your available credit, hold a variety of credit types, apply for new credit sparingly.

Don’t make the mistake of ignoring your credit score. Even if you aren’t looking to borrow money anytime soon, there are a lot of reasons to keep an eye on it.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

For all your mortgage needs contact Jennifer Koop, Mortgage Agent Huntsville, Muskoka today, 705-349-0502.

Published by DLC Marketing Team

27 Feb

How can homeowners protect themselves against title fraud?

General

Posted by: Jennifer Koop

How can homeowners protect themselves against title fraud?

With news stories surrounding title fraud breaking weekly, more homeowners are asking what they can do to protect their homes before they become the next headline. Daniela DeTommaso, President of FCT, addressed the issue in a recent interview on CBC’s Metro Morning with Ismaila Alfa.

“We’re seeing a level of sophistication in these frauds we’ve never seen before,” Daniela explains. “[Fraudsters are] falsifying identification, but to the human eye, you would never know that they’re not the person they’re pretending to be.”

Title fraud impacts both homebuyers and homeowners. Someone whose title has been stolen, or who purchased a fraudulently listed property has few options for recourse. “We’re seeing innocent people on both sides [of transactions] just devastated by something they could never have even imagined could happen to them,” says Daniela.

Industry experts are urging homebuyers to purchase title insurance as part of closing. Tim Hudak, CEO of the Ontario Real Estate Association (OREA) recently described title insurance as “the best safeguard” for homebuyers.

title fraud protection for existing homeowners

Title insurance is still an option for homeowners after they take possession, even years later. But once an issue like fraud is discovered, it can be too late to provide coverage. According to Daniela, the best time to purchase a title insurance policy is now.

“There’s no reason you shouldn’t be getting title insurance, just like you wouldn’t buy a house without property and casualty insurance,” she explains. When a homeowner with a title insurance policy learns their title has been stolen, they benefit from more than just their coverage.

“The title insurance company also has a duty to defend,” says Daniela. “That means that the minute we find out [title fraud] has happened, we step in and we protect [the insured]. We pay all of the costs.”

Those costs include the legal fees to restore a homeowner’s title, which can be in the tens of thousands, as well as the costs of investigating the fraud and handling all the legal processes.

“It’s not only compensating for that significant loss,” Daniela continues. “It’s also just providing that peace of mind knowing that someone’s going to navigate this process for you, and any costs […] having to prove that you are who you say you are.”

If you aren’t insured yet, don’t wait for your home to make headlines. Protect yourself and your property with an existing homeowner’s title insurance policy from FCT.

 

Published by FCT

29 Nov

Second Mortgages: What You Need to Know

General

Posted by: Jennifer Koop

Second Mortgages: What You Need to Know.

One of the biggest benefits to purchasing your own home is the ability to build equity in your property. This equity can come in handy down the line for refinancing, renovations, or taking out additional loans – such as a second mortgage.

What is a second mortgage?

First things first, a second mortgage refers to an additional or secondary loan taken out on a property for which you already have a mortgage. This is not the same as purchasing a second home or property and taking out a separate mortgage for that. A second mortgage is a very different product from a traditional mortgage as you are using your existing home equity to qualify for the loan and put up in case of default. Similar to a traditional mortgage, a second mortgage will also come with its own interest rate, monthly payments, set terms, closing costs and more.

Second mortgages versus refinancing

As both refinancing your existing mortgage and taking out a second mortgage can take advantage of existing home equity, it is a good idea to look at the differences between them. Firstly, a refinance is typically only done when you’re at the end of your current mortgage term so as to avoid any penalties with refinancing the mortgage.

The purpose of refinancing is often to take advantage of a lower interest rate, change your mortgage terms or, in some cases, borrow against your home equity.

When you get a second mortgage, you are able to borrow a lump sum against the equity in your current home and can use that money for whatever purpose you see fit. You can even choose to borrow in installments through a credit line and refinance your second mortgage in the future.

What are the advantages of a second mortgage?

There are several advantages when it comes to taking out a second mortgage, including:

  • The ability to access a large loan sum (in some cases, up to 90% of your home equity) which is more than you can typically borrow on other traditional loans.
  • Better interest rate than a credit card as they are a ‘secured’ form of debt.
  • You can use the money however you see fit without any caveats.

What are the disadvantages of a second mortgage?

As always, when it comes to taking out an additional loan, there are a few things to consider:

  • Interest rates tend to be higher on a second mortgage than refinancing your mortgage.
  • Additional financial pressure from carrying a second loan and another set of monthly bills.

Before looking into any additional loans, such as a secondary mortgage (or even refinancing), be sure to speak to your DLC Mortgage Expert, Jennifer Koop! Regardless of why you are considering a second mortgage, it is a good idea to get a review of your current financial situation and determine if this is the best solution before proceeding.

28 Nov

Selling Your Home in Winter

General

Posted by: Jennifer Koop

Selling Your Home in Winter.

While you might think selling your home in winter is harder, with the right considerations it doesn’t have to be! When selling your home during warmer months, the focus is typically on curb appeal and gardening, as well as having bright colors and patterns to draw out different rooms.

While curb appeal should not be forgotten in winter months, the focus should be centered on creating a warm, comfortable and welcoming space. You can do this through the following:

  1. Curb Appeal – If you live in an area that receives high amounts of snow, be diligent about keeping your sidewalk and driveways clear for visitors, and to keep your home looking clean for viewing. Always make sure to sweep any fallen leaves or debris.
  2. Keep it Cozy – Ensuring your home is sufficiently heated during showings will also go a long way to making it feel more comfortable; a steady 20 to 22 degrees Celsius during showings is ideal.
  3. Light and Inviting – With days being shorter and darker during winter, ensuring your home is light and inviting can make a big difference. In some cases, you may consider repainting the walls before listing your property.
  4. Declutter – When selling, it is important to declutter your home so that it looks its best and gives room for people to imagine their own belongings in your space.
  5. Define Property Boundaries – If you are showing your home in the middle of snow season, be sure to mark the four corners of your property so that potential buyers can see exactly what they are getting.

While there is some extra work with selling your home in the winter due to the weather conditions, it can pay off! Buyers tend to be highly motivated and often there is less competition for sales during this time giving more focus to your home.

Ask us about Realtors in our area, we would be happy to direct you to someone that would be just right for you.

14 Nov

What to Know about Porting Your Mortgage

General

Posted by: Jennifer Koop

What to Know about Porting Your Mortgage.

When it comes to getting a mortgage, one of the more overlooked elements is the option to be able to port the loan down the line.

Porting your mortgage is an option within your mortgage agreement, which enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. Thereby allowing you to move or ‘port’ your mortgage over to the new home. Plus, the ability to port also saves you money by avoiding early discharge penalties should you move partway through your term.

Typically, portability options are offered on fixed-rate mortgages. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate. When it comes to variable-rate mortgages, you may not have the same option. However, when breaking a variable-rate mortgage, you would only be faced with a three-month interest penalty charge. While this can range up to $4,000, it is much lower than the average penalty to break a fixed mortgage. In addition, there are cases where you can be reimbursed the fee with your new mortgage.

If you already have the existing option to port your mortgage, or are considering it for your next mortgage cycle, there are a few considerations to keep in mind:

  1. Timeframe: Some portability options require the sale and purchase to occur on the same day. Other lenders offer a week to do this, some a month, and others up to three months.
  2. Terms: Keep in mind, some lenders don’t allow a changed term or might force you into a longer term as part of agreeing to port you mortgage.
  3. Penalty Reimbursements: Some lenders may reimburse your entire penalty, whether you are a fixed or variable borrower, if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand-new term of your choice and start fresh. Keep in mind, there can be cases where it’s better to pay a penalty at the time of selling and get into a new term at a brand-new rate that could save back your penalty over the course of the new term.

To get all the details about mortgage portability and find out if you have this option (or the potential penalties if you don’t), contact me, Jennifer Koop, today for expert advice and a helping hand throughout your mortgage journey!

Published by DLC Marketing Team

17 Oct

10 Ways to Plug Money Leaks

General

Posted by: Jennifer Koop

10 Ways to Plug Money Leaks.

It can sometimes be hard to keep track of your finances. Fortunately, we have some tips to help you review your financial situation and plug unwanted money leaks!

  1. Be Wary of Impulse Spending: While it can be easy to think that picking up a few extra items here and there won’t affect your overall budget, it does. When you make a purchase of $10 here or $8 dollars there, it all starts to add up! This is why it is so important to track your spending at grocery and convenience stores or gas stations. Make a list or be aware of what you intend to purchase – and stick to it.
  2. Carry Cash: It can be way too easy to spend money unintentionally or over budget when you’re simply swiping your credit card. For some, taking spending money out as cash is a much easier way to manage your budget and know when you have used up your weekly funds!
  3. Examine Your Bills: As money leaks go, the best way to avoid spending extra funds or paying too much for a service is by examining your bills. Perhaps there are some that you can get rid of entirely or some you can reduce (by changing your phone plan, for example).
  4. Ask The Question: If you’re making a new purchase (whether a new internet bundle or car), it is a good idea to always ask “is this the best you can do”? In some cases, you may get a further discount. In addition, be sure to always do your research before any large purchases.
  5. Manage High-Interest: One of the biggest places you will find financial leaks are with high-interest rates. If debt is getting in the way of your cash flow (and you still have equity in your home), you may be able to refinance your mortgage and consolidate your debt for one easy monthly payment and a better rate.
  6. Renew With Confidence: When you receive the letter from your lender about your mortgage renewal, consider shopping the market or reaching out directly to your mortgage expert before signing the renewal. You may be able to get a lower interest rate or better mortgage terms.
  7. Renovate vs Relocate: If you’re finding yourself falling out of love with your home, consider a renovation! It is much more cost-effective than moving and can be a great way to breathe new life into your spaces.
  8. Don’t Leave Money on the Table: Be sure to take advantage of rebates and incentives at your disposal! From first-time homebuyer tax credits to energy rebates, there are plenty of opportunities.
  9. Change Your Mortgage Payments: Depending on your monthly cash flow situation, you might also want to consider switching up your mortgage payments. Moving from weekly to biweekly can help you reduce your overall monthly bills. If you have extra income, moving to a weekly or accelerated biweekly payment schedule can help you pay off your mortgage faster.
  10. Know Your Pre-Payment Penalties: Avoid spending unnecessary money on your mortgage by knowing your pre-payment terms and penalties! If you ever find yourself needing to get out of your mortgage early, you’ll want the option of pre-payment.

If you’re looking to plug money leaks in your finances, reach out to Jennifer Koop, Mortgage Expert to discuss your mortgage payments, debt consolidation and more.

 

Published by the DLC Marketing Team

8 Aug

5 Ways to Renovate your Home to make it safer for Canadians 55+

General

Posted by: Jennifer Koop

5 Ways to Renovate your Home to make it safer for Canadians 55+.

While 86% of Canadian baby boomers prefer to age in place in the homes they love, not many plan for home renovations that simplify their lives during these golden years. It is not just about preparing for a disability or mobility issue. It is about including standard components and amenities that boost the accessibility and comfort of all ages and making your day-to-day living more pleasurable.

Here are some helpful home renovation ideas for Canadians 55 and over:

  1. Reposition electrical switches and outlets: Re-arrange your light switches at a height that does not require you to stretch your arms excessively above your shoulders. Try to keep electrical outlets high enough that you do not need to bend down to reach them.
  2. Make your life in the kitchen a breeze: Consider lowering the height of the countertops and cabinets to make the space more comfortable. Within the cabinetry, install shelves for ease of use and organization. Getting close enough to the prep spaces can add to your comfort while working in the kitchen.
  3. Plan for safer bathrooms: Replace one bathroom shower with a curb-less or walk-in model. Fold-down shower seats, elevated toilets, or grab bars are other home improvement opportunities for people requiring minimal investment and can make your bathroom safer as you age.
  4. Focus on flooring: One of the essential items on the home repairs checklists for Canadians 55+ should be fixing and updating your flooring to remove any height changes, dips, odd transitions, or curbs. Look into slip-resistant materials, such as textured tiles or gentle-on-the-feet cork flooring. If you prefer area rugs and carpets, try to have a non-slip rug pad underneath to prevent slips.
  5. Plan features that enable single-level living: Some carefully prepared home renovations for aging in place could allow single-level living even in a multi-level home. This includes:
  • Moving the laundry space to the main floor.
  • Remaking an existing guest room or unused dining room on the main floor into the primary bedroom.
  • If space permits, then extend the powder room into a 3-piece with a shower stall.

Other home renovations for aging in place that will make living at home a lot more comfortable are:

  • Extending the width of doorways
  • Installing ramps for entranceways
  • Adding stair lifts or home elevators
  • Maintaining threshold-free doorways
  • Switching to lever handles for your interior doors for a better grip while entering or leaving the rooms.

Even with grants or provincial loans, you may need extra money to renovate your home for your future needs. If you’re a homeowner aged 55-plus, the CHIP Reverse Mortgage® from HomeEquity Bank is a great option to provide you with the funds you need. You can borrow up to 55% of your home’s appraised value and never have to make any regular mortgage payments. When you move out or sell your home, you only pay what you owe.

Contact  Jennifer Koop, mortgage expert to find out how the CHIP Reverse Mortgage by HomeEquity Bank can be a viable option to help you live your best retirement!

 

Published by HomeEquity Bank

11 Jul

Financial Advice that Never Gets Old.

General

Posted by: Jennifer Koop

Financial Advice that Never Gets Old.

It’s difficult to find timeless advice in the ever-changing world of personal finance but these five are about as close as you can get.

1. Start small and start early with investing
Only around 5% of Canadians under 25 have a TFSA, which means 95% have already missed out on 7 years of compounded returns. Starting small could be as little as $100 month… and starting early means now! Invest what you can and don’t think a $100 monthly will never amount to anything.

Investing $100 month at 5% for 47 years (age 18 to 65) will give you $68,754 more than someone who did the same starting from age 25. Time really is money when it comes to compounded returns, so get started as soon as possible.

2. Make more or spend less?
Our advice is to do both, but there are limits on how much income you can generate and cutting back on expenses has a bigger impact on your bottom line. If you’re lucky, you may find some expenses you could easily do without, like that lightly used gym membership or seldom watched 200-channel cable package.

A part-time job or side hustle isn’t a bad idea, but you will spend more time working and less time enjoying life. Don’t forget that any extra income is fully taxable — you might need to earn $10 in order to get the same result as a $7 spending cut.

3. Re-evaluate your wants and needs.
A 1200 sq ft bungalow was the standard for most families in the early 1970’s. These days, houses are now over 2000 square feet on average and come with plenty of high-end finishes. Lifestyle creep is not limited to our housing needs and now influences what we drive, how often we eat out, and where we go for vacation. Being able to satisfy your wants later in life will only come from making smart spending decisions on your needs earlier in life and freeing up the cash to start saving and investing.

4. Understand credit and debt.
131 months! That’s how long it takes to pay off a $1000 credit balance paying the minimum amount — and it will cost you almost $1000 more in interest charges! Many people carry a credit card balance and are blissfully unaware of just how much it is costing them each month. Car loans are another area where the financing costs add up to a lot more than most people realize.

The key is to be knowledgeable about your debt. Track what you owe and how much that debt is costing you as well as any alternatives that may lower that cost. For example, refinancing your mortgage or drawing on home equity to pay off higher interest loans or credit cards.

5. Get financially literate.
Managing your money has become more difficult as we have a lot more spending, saving, and investing options, but we also have access to a lot more information and tools to help us. For example, diving into the real impact of those investment fees on your mutual funds (it’s a lot!) can easily be investigated online in just a few minutes.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Published by the DLC Marketing Team