Tuesday, October 30, 2012

Is a hurricane going through your finances? Here's Kim's story.

Hearing all of the news reports and the tragedy in New York and the Eastern U.S. seaboard, it reminded me that you can have a plan for your future, but there are circumstances and events you can't control.

Earlier this week, Kim came into see me to get help so that she could get back on her feet financially.  Kim was married and had three great kids. A case study for a family doing well! Until her husband developed cancer and passed away. Much of the family's savings were spent taking care of him and when she returned back to her job, she found that the company had restructured her role and she was now unemployed.  Unfortunately, Kim's husband didn't have mortgage insurance, but just a small mortgage was left on her $400K house.

Fast track 4 years later...(this past week), Kim came into see me on the recommendation of her lawyer.  Kim still hasn't found suitable employment and is having a hard time making ends meet.  She consistently has had problems paying her TD mortgage and some other bills.  Her bank hasn't been kind to her and threatens to reposes her house.

What can be done?

Kim's on the verge of getting a new job and prospects look good for her in the next few months.  This is where a private mortgage can help her financially.  Because many private lenders will work with borrowers and create terms and conditions that will satisfy both parties.  I suggested a private loan to pay out her existing TD Mortgage, her current bills and loans and also to grab hold of $15,000 in equity from her home for personal savings.  The private mortgage that was set up allowed her no payments for a year to get her back on track.  In a year we fast forwarded that her credit score would improve and she would be employed. Without the debt payments hanging over her, she could now focus on getting a job and her life back in order.

Has a hurricane gone through your life and finances? Call or e-mail me if you'd like to discuss your financial situation. Sandra

tel: 5197633900 ext.1001
e-mail: lastovic.s@mortgagecentre.com

Thursday, October 18, 2012

My desk is clean, but I filed everything in the garbage

One of my goals this year fiscal year is to post more regularly on my blog. Over the last month I've had an amazing vacation with my family and attended a great conference that Todd Duncan hosted called Sales Mastery. As a result, things have piled up on my desk at work. I couldn't concentrate on the task at had, with the clutter on my desk. So I filed my clutter into the recycling box under my desk. My plan is to work through the pile later today.

Getting rid of clutter in your life and finances can help you get back on the path that you want. I met with a lady earlier this week that was moving, just to get ride of the clutter in her life and her house! The mortgage financing was tricky. I had to pull Home Trust into the deal. But with their great rates on 6-month open mortgages, the client will be able to purchase her new house first, move, de-clutter and repair her old house and then put it on the market to get a maximum sale price!

One thing I need to keep in mind though, is to ensure I get through my own recycle box today, so when the cleaning staff come that they don't "recycle" the papers in my recycle box, which I still need to review myself.

Please call or email me if you'd like to talk about "de-cluttering" your debt or finances, at tel: 519-763-3900 ext.1001 or e-mail: lastovic.s@mortgagecentre.com. 

How are you de-cluttering your life?

Friday, October 12, 2012

Secured lines of credit: What are they good for?



I’ve recently recommended secured lines of credit (or SLOCs) to a few of my clients instead of a mortgage.  SLOCs are similar to variable-rate mortgages, as the rate changes depending on the prime rate. However, SLOCs are also unlike variable-rate mortgages because: (1) only the interest is due on the payment date (instead of both the interest and principal), and (2) they are fully open (which means that they can be paid off at any time without a penalty).
Here are a few scenarios where it may be more appropriate to get a SLOC instead of going with a more traditional mortgage:

  1. A SLOC could be for you if your mortgage is coming up for renewal and you are planning on purchasing a new house, or if you are not sure what your future plans may be
SLOCs are an inexpensive way to allow yourself more time to decide what you’d like to do with your home.  For instance, if you’re planning on moving within a year but aren’t sure about specific plans, SLOC’s can help bridge the gap until you’ve got a more solid “game plan.” Moreover, speaking with a mortgage professional can further help you plan out your next move – from a financial perspective.

  1. A SLOC could be for you if you are planning a significant renovation on your home
You can incorporate renovations into your home through your mortgage, but if you’re planning a significant renovation you may want to consider a SLOC. A SLOC would allow you to pay your contactors as required, and would put you in control of the money – as opposed to your bank, for instance, which can be inefficient. Once the renovations are complete, a traditional amortized mortgage can be put into place. Your “new” property would then be appraised at that time to confirm the improved value, and an amortized mortgage would help you pay down the renovations in a timely and organized way.

  1. A SLOC could be for you if you are investing equity from your home into a non-RRSP, or real estate
Whenever you use the equity in your home to invest in a non-RRSP or real estate, the interest on that portion of the mortgage, or SLOC, is a tax deduction. Because you may not want to pay off the principal on the investment loan, a SLOC could be a more appropriate loan than a traditional mortgage.



These examples are just some of the ways to best use a secured line of credit. Please contact me directly via e-mail at lastovic.s@mortgagecentre.com or call me at 519-763-3900 ext.1001 to discuss your questions.