Tag Archive for: refinance

You Suck!

Yup you heard that right, You Suck! Don’t take it too personally, we all suck in some shape or form. However in this instance it is about how you manage your money, and specifically your debt. Here are some indicators that may apply to you.

1)You have used your credit card to pay for a small ticket item. (something less than $10)

2)You make only the minimum payment on your credit card statement.

3)You consistently carry a balance on your credit card(s).

4)You have used one credit card to pay another credit card’s monthly payment.

5)You have occassionally gone without making your minimum monthly payments.

6)Last but certainly not least, you have next to nothing in a long term savings plan.

This is not the end of the world, but it should be a wake up call. There is still time to put yourself on the right track. All it takes it a plan, and believe it or not, it may be possible with the money that you are currently making and spending. Please contact my office today so we can help you develop a plan that works for you.

Cheers,

Pat

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Topping up your RRSP with cheap money!

Right now, your house is the best piggy bank you’ll ever own. Even in our current market conditions. If you’ve got some money in that piggy bank, you may want to take some out for your RRSP. Get it before the RSP season is upon us and you are pulling your hair out wondering how to maximize your contribution room or even catch up on all the unused room that you have left over. Markets are due for a comeback, home values are still pretty steady in most Canadian markets and mortgages are your lowest borrowing costs, “Carpe Diem”, as they say, seize the day!

Top off your RSP with the lowest borrowing costs available today, a mortgage. Even if your mortgage isn’t scheduled for renewal any time soon, it may be worth your while to call me to see if can work our in your best interest, no pun intended! With today’s great rates, a mortgage restructure may be just what the doctor ordered.

Canadians are a cautious lot when it comes to finances and we typically do not like to borrow money. However special consideration should be given to doing it for sake of your financial future. Remember you could be looking at a good tax refund almost immediately. If possible you can turn around and put that money back against the loan as soon as it arrives.

So borrowing for your RSP can make good financial sense. But if you are a homeowner, the special RSP loan option offered by some of the banks may not be your best option. The cheapest money you can get is the money under your own roof. Why you may ask is because a house is considered sound security and lenders assume lower risk lending money secured against your house.

Here are two possible scenario’s:

1) You need money to take advantage of all your unused contribution room. Call a mortgage professional like myself and I can show you how to use a mortgage refinance or a second mortgage to reach your retirement goals. Make your new money really work for you, and heck while you are at it get all your debt cleared up too. Combine your high interest loans and credit cards into one low interest payment. 

2) Want to boost your RSP and leverage your non registered assets to do it? While the interest on an RSP loan is not tax deductible, you could discuss the following strategy with your financial advisor: First, if you sell your non registered investments and you contribute the proceeds to your RSP. Then, arrange a mortgage and repurchase your non registered investments. The interest should now be tax deductible because the money is used to purchase the investments. 

Both strategies depend on your own personal situation, so be sure to consult both your mortgage professional and your financial planner before proceeding. Call me today, this could be in your best interest!

 

Cheers,

Pat