Break my mortgage. Is now the right time?

Posted on May 13, 2012 by

Greetings Kevin,

I have 18 months left on my current five year, fixed term 5.65% rate mortgage. I’m paying $2005.88 per month currently. Our original balance was $350,000.00 amortized out over 30 years with a current balance of $332,555.72. They tell me if I break my mortgage now, we would have to pay a $5,000.00 penalty fee.

Is it worth it for us?

Great question so let’s take a closer look at your situation today and then compare the numbers to see if it makes sense for you.

You first need to know exactly how much of the “interest portion” only you will have to pay over the next 18 months. This does not include the principle portion or the amount that you are actually paying out each month to pay off your house.

Based on your numbers above you will pay $29,044 over the next 18 months in interest only. Currently we are writing five year fixed term mortgages in the 3.19 to 3.35 percent range. Mortgage rates are at historically low levels and they do change daily so these numbers will be an “estimate”. Full Story on Burlington.net

Posted in Business

Practical Advice about RRSP’s, TFSA’s, RESP’s and Your Debt. Options?

Posted on February 29, 2012 by

RRSP TFSA RESP and Debt What to do?

Hi Oakville Advisor

Should I contribute to my RRSP, TFSA, and RESP if I have Credit Card Debt too?

Thank you for your question.  It’s not uncommon to be overwhelmed by all the decisions and options to choose from this time of year. When your money is tight, it is almost if not impossible to act so you end up being frustrated and just do nothing.

 

Today you hear all kinds of professionals taking up one program and telling you to forget about the other as if one is better than the other.  That’s just not the right answer of course as each program such as your RRSP TFSA and RESP all have special unique features plus they are all beneficial to you and your family.

First you must pay very close attention to your own debt obligations, especially those high interest credit cards and your current mortgage rate for those of us who still have a mortgage.  Finally there is the RESP program which you can’t even put a monetary value on your child’s education today. That’s simply not an option to put off.

The right answer is to take care of them all!

Continue reading →

Posted in Banking, Estate Planning, Mortgage, Portfolio Management, Retirement Planning | Tagged , , , , , , , , , , , , ,

Video: RRSPs and paying down your mortgage.

Posted on February 14, 2012 by

Paying of the Mortgage and contributing to your RRSP. Video John Heinzl offers three reasons why you should pay down down your mortgage instead of making a RRSP contribution. John Heinzl of the Globe and Mail offers three reasons why you should pay down your mortgage instead of making a RRSP contribution. (Video below)

http://www.theglobeandmail.com/globe-investor/personal-finance/rrsp/video-forget-rrsps-and-pay-down-your-mortgage/article2334047/

We utilize strategies that enable you to make full RRSP contributions plus receive a refund fund from Revenue Canada and then use your refund down towards paying off other high interest debt or you can apply to paying down your mortgage. Many Canadian have ample room in their RRSP and are unable to take advantage of the contribution room available due to the inability to apply the funds at the time of year when required. Talk to us today to see if this strategy is suitable for you.

Posted in Business, Debt, Home Equity, Mortgage, Mortgage News, Real Estate, Retirement Planning, Video | Tagged , , , , , , ,

Optimism drops as Canadians struggle to save

Posted on February 9, 2012 by

Canadians have managed to pay down debt in the economic downturn, but the majority feel they aren’t getting ahead financially, according to a bank study that will be released on Thursday.

The RBC Consumer Outlook Index, which tracks quarterly economic trends through a survey of consumers across the country, suggests confidence about a recovery in the Canadian economy has dropped. Even as the economic situation in the United States begins to show encouraging signs of improvement, the mood in Canada remains decidedly pessimistic. Read more via Globe and Mail

Posted in Business, Debt, Globe and Mail | Tagged , , ,