Mortgage and Financial Advice

Jan 10…Do you need a personal paydown plan for your holiday bills? www.robertfloris.com

webmaster — Tue, 19 Jan 2010 17:56:55 +0000

For many of us, the warmth of holiday gift-giving has suddenly been replaced by a mailbox stuffed with fat VISA and Mastercard statements, reminding you what a fabulous time you had over the holidays. It can be enough to make you want to crawl under a fleece blanket and wait for spring.

We have a better plan. Most Canadians suffer with their highest debt load in the winter – as their holiday bills come home to roost. That’s why it’s the perfect time to talk about a personalized Paydown Plan. It doesn’t cost you anything; in fact, it could save you thousands of dollars in interest. We can help you consolidate and restructure your debt so that every payment you make actually goes further.

This may be the year to do it; we’re still benefiting from one of the best mortgage environments in memory. Take a look at the interest rates on mortgages these days. Now look at what you’re paying on your credit cards and other debts. You can actually power up your debt paydown by rolling your credit cards, car loans, or any other high-interest debt into a new or existing mortgage.

Consider a situation where your current mortgage is $155,000 at 5.5% and you have a monthly payment of $946. In addition to your mortgage you have a car loan of $20,000 and credit cards maxed out at $20,000. You are paying $920 a month on the car loan and credit cards for a total monthly payment of $1,866. Your mortgage planner presents a scenario in which you get a new mortgage for $202,000 to cover the original $155,000, the $40,000 in credit cards and car loan, and $7,000 to break your mortgage. Your new mortgage is at 4.10% and you now have a much lower overall monthly payment of $1,074.

With this new scenario, monthly payments are $792 less each month; a great improvement in cash flow! And if you put $450 of that cash flow into your monthly mortgage payment, you reduce your amortization from 25 years to 15. We’re a fortunate generation of homeowners. We can benefit from low mortgage rates to enjoy our lives and our homes – and to manage our debt wisely.

Home equity debt consolidation is a golden opportunity, especially if the holiday season further added to your debt burden. Aside from the debt stress relief and interest savings, restructuring your debt will also give you a fresh start at responsible financial housekeeping. If this debt consolidation exercise gives you new financial comfort, you’ll want to maintain that ease by living within your means.

Homeowners are recognizing that they need to get smart about debt. Canadians pay a shocking amount of money on their high-interest debt, whether it’s credit cards, unsecured loans, or tax bills. It all adds up. But if you have equity in your home, there’s no good reason to be carrying high-interest debt.

Independent mortgage planners – who have access to more than 50 different lenders, including most of the major banks – have become specialists in helping Canadians restructure debt. In addition to offering access to a broad range of mortgage options, these experienced planners provide credit advice and debt management tips that can help save thousands of dollars. t’s a great place to start.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Jan 10…Your 2010 Mortgage Blueprint. What’s ahead? www.robertfloris.com

webmaster — Tue, 19 Jan 2010 17:53:24 +0000

It’s time to get into the new year’s groove, that fresh-start feeling we always get at this time of year. Be sure to harness that energy and whip your finances into shape, particularly looking at the role of your mortgage in your overall financial plan. Building a secure financial future is a new year’s resolution with some big rewards.

As we do every year, here are some sensible strategies that take into account what’s ahead, so you can be sure your mortgage is the cornerstone of your financial future:

1. To take advantage of the $1,350 home renovation tax credit, you need to get your renovations done by February 1, 2010. Or, you can buy supplies up to that date and then get the work done later. Today’s low rates and this tax credit make it a great time to extract equity for a renovation project. Renovations may also qualify for EcoEnergy Retrofit Grants of up to $5,000, which don’t expire until March 31, 2011.

2. Prepare for rising rates! The Bank of Canada has said that rates won’t rise until the latter half of 2010, which is fast approaching and means you need to take higher rates into consideration. If you are buying a new home, you may not want to borrow your maximum amount. Variable mortgage holders can set their payments higher than required to create a cushion to absorb any rate increases. Lenders offer generous prepayment options that allow you to increase your regular payment amount. Another way to create a cushion is to make a lump sum payment on your principal, using your tax refund for example.

3. Another way to speed up your mortgage pay-down is to change from monthly payments to weekly or bi-weekly payments.

4. While the worst of the recession seems to be behind us, unemployment is still a concern. If you’re worried that your household income could decline this year, contact your mortgage planner to discuss the possibility of building a financial buffer using today’s low mortgage rates. It’s a good idea to apply while you are still employed because it’s easier to access your equity when you actually don’t need it.

5. If you’re carrying high-interest consumer debt that is eating into your cashflow and racking up large interest costs, this is a great time to deal with it, especially while rates are still low and if you’ll be adding your holiday bills to your overall debt load. You may want to take a close look at rolling all of your debts into a new mortgage, which can boost your cashflow and help you save thousands in interest costs.

6. Take a look at re-advanceable mortgages, an excellent way to access equity for investing, renovations, or emergencies, without having to re-apply. This type of mortgage is often used to create a tax deductible mortgage alongside a wealth building portfolio.

7. In managing debt, you want to make sure you don’t need to use credit to get you through a financial emergency. Make a point of putting a small sum from every paycheque into a special emergency fund.

8. When you are four months within renewal, touch base with your mortgage planner so you can review your renewal options and strategies.

It’s always a good idea to get an annual review of your mortgage situation. So take the time to meet with your mortgage planner and get your blueprint that incorporates what may be ahead in 2010.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Financial Update June 24, 2009

webmaster — Wed, 24 Jun 2009 20:52:46 +0000

North American markets turned sharply around mid-day yesterday, closing higher on the day and extending those gains in this morning’s trading. Appetite for US treasury bonds has been the main market mover as capital flooded into the sector ahead of today’s FOMC announcement in which they are likely to try to quell the recent run-up in longer term rates. The OECD raised its GDP outlook for its member countries, while at the same time suggesting that the Bank of Canada should keep interest rates at current levels through the end of 2010. Helping matters this morning was news that orders for durable goods in the US unexpectedly jumped, while earnings at Monsanto and Oracle topped analysts estimates. The TSX is up 215 pts. The Dow is up 93 pts.

The Canadian dollar is 35 bps higher at US$.8731 as the US dollar is noticeably weak. Bond yields are steady with the 5-year Canada at 2.55% and the 10-year at 3.43%. Oil is up slightly to US$69.32/barrel. Gold has jumped $15.20 to US$939.50/oz.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Financial Update: May 20, 2009

webmaster — Wed, 20 May 2009 22:21:48 +0000

The TSX index just touched a new high for the year with every one of its
sectors gaining ground. Energy and materials are leading the way as an
accelerating decline in the US dollar is pushing crude and metal prices
higher.

Yesterday’s inventories report from the American Petroleum Industry was also
supportive of oil as stockpiles decreased from recent highs. Bank of America
is leading US indexes higher after the country’s largest bank shored up its
balance sheet by raising $13.5 billion in a share offering. Of interest, the
TSX index has been quietly outperforming its US counterparts over the course
of this year, and now trades at a 20% premium to the Dow. They were
neck-in-neck just five months ago.

The TSX is up 202 pts (10,303). The Dow is up 60 pts (8,535).
The Canadian dollar has also climbed to a new 2009 high as the greenback
slides and commodities rally. The Loonie is up a full cent to US$.8750 this
morning. Bond yields are also grinding higher, with the 5-year Canada
yielding 2.18% and the 10-year 3.16%. Gold is up $10.50 to US$937.20/oz.
Oil is up $1.34 to US$61.42/oz.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Financial Update - May 15 - 09

webmaster — Fri, 15 May 2009 21:23:45 +0000

North American markets opened slightly higher this morning after a report on
US industrial production showed the decline in output is starting to
stabilize. Inventories have already been pared significantly, setting the
stage for a recovery in production over the second half of this year. The
Canadian Real Estate Association released April numbers yesterday, showing a
strong pickup in home sales across the country. Activity in real estate has
been rising steadily over the last three months. Credit markets continue to
relax with the TED spread (a gauge of credit market health) almost back to
“normal”, reaching levels not seen since last August. The TSX is up 31 pts.
The Dow is up 45 pts.
The Canadian dollar hit the skids this week after steadily climbing most of
the last two months, but is higher this morning at US$.8570. Bond yields
ticked higher after the industrial production report, with the 5-year Canada
yielding 2.13% and the 10-year 3.11%. Gold is up $4.20 to US$932.60/oz. Oil
is off 54 cents to US$58.09.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

When the grass looks greener… should you break and escape your old mortgage?

webmaster — Fri, 01 May 2009 21:41:03 +0000

If you’re like many Canadian homeowners, you’ve got a little mortgage anxiety – and maybe some mortgage envy — right now. With advertised mortgage rates edging lower and fixed-rates at historic lows, the grass might be looking greener on the other side. Not surprisingly, many Canadian homeowners are looking for advice as to when it is worth breaking and escaping their old mortgage.

Until recently, most homeowners could expect to pay a three-month penalty and draw up a new mortgage at a better rate. However, with rates falling, if you check your mortgage fine print, chances are you’ll find the clause that gives your lender the right to charge a penalty based on the greater of three months’ interest or the interest rate differential (IRD), which is essentially the difference between your old rate and current rates for your remaining term. Since rates have fallen so much, the IRD is often now the larger penalty and the amount is surprising some people.

To determine your approximate penalty, you need to know your existing rate, time remaining on your term and the current rate for the remaining term. The three month interest calculation is the outstanding balance of the mortgage multiplied by the existing rate and then divided by four. The IRD is a bit more complicated at the balance of the mortgage multiplied by the rate differential and then multiplied by the remaining term, which may be rounded up or down. The actual number from your lender may be lower if they use a present value calculation. And since lenders can calculate IRD differently, you should always get the actual penalty from your lender.

So back to the question, is it worth renegotiating your mortgage? For some homeowners, it can be an important moment of opportunity, while for others, it may just not be worth the costs involved. Most lenders will include the cost of the payout penalty and other costs into the new mortgage so you don’t have to be out of pocket to complete the transaction, as long as you qualify on the new amount. Typically there are a few rule of thumb measures that you can use:

• If you pay the penalty upfront, then you want to determine if the interest you are saving over the remaining term is greater than the cost of the penalty;
• If you add the penalty to the new mortgage, then you want to make sure your mortgage principal is the same or less at the end of the remaining term;
• If you can blend the penalty into the new mortgage rate and the blended rate is lower than your current rate, then you are typically better off;
• If you are in a term longer than 5 years and you have passed the fifth year, the three month penalty applies and not the IRD.

Of course, the exact terms and conditions of your current mortgage need to be examined closely to determine if there are other factors to consider.

Sound confusing? It absolutely is. That’s why you need to speak with an experienced mortgage planner who can help you make a realistic assessment of your situation. Especially if you have a mortgage of more than 5%, it’s worth a professional mortgage analysis to determine if your benefit outweighs the cost and whether the lower payment and boost to your cash flow is an important benefit to you. There’s no cost or obligation. We’re up-to-date on current rates and all of the new opportunities available – from a wide range of lenders – and if there’s greener grass available… we can help you find it.

There’s never been a better time to talk.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

April 2009 CAAMP Statistics

webmaster — Thu, 30 Apr 2009 22:27:19 +0000

Bank of Canada Interest Rate

January 20, 2009
1.00%

March 3, 2009
0.50%

April 21, 2009
Next meeting date

Source: Bank of Canada

Bank Prime Lending Rate

January 21, 2009 3.00%
March 4, 2009 2.50%
April 22, 2009 Next meeting date
Source: Bank of Canada

US Federal Reserve Board Discount Rate

January 28, 2009 0.00-0.25%
March 16,2009 0.00–0.25%
April 29, 2009 Next meeting date
Source: US Federal Reserve

Government of Canada Bonds
Bond Type February 25, 2009 March 11, 2009 March 25, 2009
1 Year Treasury Bill 0.80% 0.58% 0.61%
3 Year Benchmark Bond Yield 1.72% 1.43% 1.51%
5 Year Benchmark Bond Yield 2.11% 1.88% 1.95%
10 Year Benchmark Bond Yield 2.95% 2.92% 2.96%
Source: Bank of Canada

Total New Housing Starts (Seasonable adjusted and annualized)

Province December 2008 December
2007 January
2009
January
2008 February 2009 February
2008
Newfoundland/Labrador 4,000 2,900 3,600 2,400 2,800 2,900
PEI 900 600 600 500 600 1,000
Nova Scotia 3,000 4,400 2,800 3,300 4,600 4,400
New Brunswick 3,000 4,500 3,800 4,500 3,600 3,600
Quebec 44,000 39,200 45,300 47,900 38,200 57,600
Ontario 63,100 51,700 54,700 72,700 47,300 83,800
Manitoba 6,400 4,600 3,600 5,800 4,100 5,200
Saskatchewan 4,700 5,000 3,800 6,000 4,000 5,700
Alberta 20,000 37,900 17,200 41,700 13,100 38,700
British Columbia 23,100 33,900 18,100 38,900 16,400 54,100
CANADA 172,200 184,700 153,500 222,700 134,700 256,900
Source: CMHC Housing Now – March 2009 and March 2008. This seasonally adjusted data goes through stages of revision at different times of the year.

Average MLS resale price for local markets

City February 2008 February 2009
Halifax $223,579 $229,660
Montreal $244,993 $250,461
Ottawa $283,199 $273,991
Toronto $382,048 $361,361
Hamilton/Burlington $276,279 $265,452
Winnipeg $183,665 $194,588
Saskatoon $264,270 $281,681
Calgary $415,017 $370,198
Edmonton $338,347 $308,347
Vancouver $623,517 $542,641
Victoria $487,696 $442,592
Source: Canadian Real Estate Association

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

April 2009…Qualified homebuyers are enjoying the market of a lifetime.

webmaster — Thu, 30 Apr 2009 00:35:10 +0000

Many potential homebuyers had put their homebuying dreams on the shelf when sky-high prices and a crowd of buyers pushed the home of their dreams out of their reach. But recently now, the market has changed. In fact, the home of your dreams may never be as well-priced as it is right now.

Let’s look at the facts. House prices have become more reasonable in many regions of the country. With a slowing economy, many Canadians are battening down the hatches and have withdrawn from the housing market. Almost overnight, we have moved from a sellers market to a buyers market. And for qualified homeowners looking for their next home, that can translate into exceptional savings.

While the headlines are focusing on the negative effects of the current economic climate, many see that the economic turmoil also creates opportunities. Even Canadian homeowners with a current mortgage are reviewing their opportunities in today’s unusual market. If they had their eye on a new dream home – or were considering a significant renovation or upgrade to their current home – then they are assessing the opportunities available to them.

That lovely new home may suddenly be affordable, or a re-designed mortgage may give them the funds for the media room they’ve always wanted – while tradesman have discounted their services in a slow market and stores are advertising once-in-a-lifetime sales. The home of their dreams is suddenly within their reach.

Some homebuyers, of course, are waiting to see if rates go any lower. Realistically, however, rates are already at historic lows. Potential homebuyers who have job security should consider buying a home now, before this window of opportunity starts to close.

A mortgage rate of 4.25%, for example, translates into a $1,368 monthly payment for a $300,000 mortgage with a 35-year amortization. For a $200,000 mortgage, that payment is $912, while for a $400,000 mortgage it is $1,824.

How did things look just a year ago? If you were looking at a $300,000 mortgage at 5.75% with a 35-year amortization, your monthly payment would have been $1,647. This year, with that same mortgage amount, you could save approximately $279 a month ($1,647 versus $1,368). If you assume that prices have dropped 10% and you now only need a $270,000 mortgage, your monthly mortgage payment is $1,231 and your monthly savings becomes $416! Or, you can purchase more home. With the same monthly payment of $1,647, you can now carry a $360,000 mortgage. Qualified homebuyers are enjoying the market of a lifetime!

Of course you need to add in your utility costs and taxes for the complete all in monthly cost of your new home. Your mortgage planner can help you estimate what your total monthly payment may look like.

Ready to spring for it? You may be surprised – even thrilled – to discover that the home of your dreams is now within your reach, an opportunity that is driving homeowners to visit their mortgage planners for advice. It’s a great place to start!

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Fixed Rate or Variable Rate Mortgage?

webmaster — Wed, 15 Apr 2009 14:17:03 +0000

There are many options available when setting up a mortgage. Many of these options can be discussed with your Mortgage Broker such as Robert Floris. However, there are 2 main categories of mortgages: fixed rate and variable rate. With fixed rate mortgages, you have the guarantee that the rate at which you lock it in today will not change for a period of time - let’s say 5 years. This gives the owner of the mortgage the peace of mind that the mortgage rate will stay constant for that period of time. However, this peace of mind comes at a price. Variable rate mortgages tend to be lower than fixed rate mortgages but they fluctuate with the prime lending rate of the market. So, if the prime rate goes up, so will your mortgage payments OR your mortgage payments may stay the same but you end up paying more towards interest than you do towards the capital.

It may seem like a good plan to go with the fixed rate mortgage but for example, imagine if you can get a fixed rate mortgage at 5% for a term of 5 years and you have the option of a variable rate mortgage at prime + 0.5%. That means today you would be paying 5% on your fixed mortgage or 2% on your variable mortgage. Now let’s say that the prime rate increases. The question you have to ask yourself is this: will the prime rate increase by 3% over the next 5 years? If it did gradually increase to 3% over the next 5 years, you would still be further ahead with your variable rate mortgage because you will have benefitted from lower interest rates early on. And as for the person who locked themselves into the fixed rate, they will have to renegotiate their rate again after 5 years anyway! So they may be “safe” during that period of 5 years but it really only becomes a benefit if the prime rate increases by more than 3%. If the prime rate is increased .25% at a time, that represents 12 increases.

Something to think about…

If you would like to discuss this or any other financial or mortgage topic further, please feel free to call Robert Floris, Mortgage Broker and Financial Planner at 905-574-9200 Ext. 215 for free, no obligation advice.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Can’t Afford A Downpayment?

webmaster — Thu, 09 Apr 2009 03:00:14 +0000

Are you renting to save money for a downpayment on a house? Do you think that you need 25% of the value of the home before you can purchase it? Actually, you might qualify to purchase a home with only 5% down or less. While you are waiting and saving for a downpayment, you could be living in your own home and growing your investment. Imagine, in the 5 years that it takes you to save your downpayment, the value of your home could increase in value by $50! or $100K!

Call Robert Floris to discuss this or any other financial or mortgage topic with no obligation.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Considering Purchasing a Rental/Investment Property?

webmaster — Mon, 06 Apr 2009 21:14:07 +0000

If you are considering purchasing a house to rent as an investment property, now is a great time to invest. Consider that if you purchased a $200K house to rent, with a mortgage rate of 2% you would be paying only $850/month on your mortgage! The rental income would probably more than cover that and taxes etc. Imagine, you could have a little extra cash every month and your investment in that home would be growing at the same time - a win win situation.

If you’re interested in the feasibility of such an investment, contact Robert Floris for free, honest advice.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Is Mortgage Rate or Amortization More Important?

webmaster — Sun, 05 Apr 2009 21:28:57 +0000

Robert often asks his clients this question and the answer is almost invariably “rate”. But there’s more to it than just rate. Here is an example:

Let’s say that you have a $200K mortgage on a home and you are making payments of $1000/month with a mortgage rate of 4%. It will take you a whopping 27 years to pay off the mortgage.

Option A: Now, let’s cut the rate in half. At a mortgage rate of 2%, it will still take you 20 years to pay off your mortgage.

Option B: Even if the mortgage rate is 4%, if you double your payments to $2000/month. You will have that house paid off in 10 years.

Whether you go with option A or option B above depends on your personal needs. Option B will pay off your house more quickly but you will have less cash flow. Option A ends up paying just as much interest to the bank, but you keep an extra $1000 of cash per month for other expenses.

Contact Robert Floris, Mortgage Broker and Financial Planner in Hamilton, Ontario and he will be able to combine both options above. He will get you a great mortgage rate and he can analyze your expenses to determine the best amortization for you.

Robert Floris
Mortgage Broker in Hamilton, Ontario, Canada
Financial Planner in Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
Rob’s Blog

Good Time to Upgrade your Home

webmaster — Sat, 04 Apr 2009 18:23:40 +0000

Did you know that more expensive houses drop in price more quickly than cheaper houses in a depressed market? That means that now is the best time to upgrade your home.

If you think you may be in a position to upgrade, please contact Robert Floris, Mortgage Broker and Financial Planner in Hamilton, Ontario. He will advise you to help you with your decision, see if it will be feasible and a good move for you and if you would like, he will help you find the best conditions for your mortgage. He will do all of this with absolutely no obligation. You can take the information and advice and leave and make your decision.

Robert Floris
Mortgage Broker in Hamilton, Ontario, Canada
Financial Planner in Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
Rob’s Blog

Loan Payback Schedule

webmaster — Wed, 01 Apr 2009 22:48:16 +0000

There are a lot of factors that influence how long it will take to pay back your mortgage (or any loan) including the frequency of your payments, your payment amounts, the interest rate and the amount of money that you have borrowed.

If you click on the following link, you can download a very useful Excel spreadsheet that instantly summarize all these factors. It shows you how many payments you will be making over the course of your loan, how much of each payment is going towards the principle and interest, what you balance remaining is at each payment etc. You can change the rate or principle or frequency of payments and it instantly recalculates everything in a chart. It is really VERY useful. Download it and try it out. You can use it to evaluate mortgages and also any other loan such as a car loan. Have fun!

Loan Calculator

Contact Robert Floris, Mortgage Broker and Financial Planner:

905-574-9200 Ext. 215
Hamilton, Ontario, Canada
mortgages@robertfloris.com
Rob’s Blog

How Much Mortgage Can I Afford?

webmaster — Mon, 30 Mar 2009 17:13:48 +0000

Everyone should look at their debt-to-income ratio and make sure that it is reasonable. This can be calculated by adding up all your payments that you make monthly on debt (house, car, student loan etc.) and also add in home insurance and property taxes. Take this number and divide it by your gross monthly income. Multiply that number by 100 to get a percentage. There is a certain limit that this number should not exceed and it varies from person to person and with different institutions but preferably, this number should be lower than 30%.

If you would like to discuss this or other mortgage or financial related topics with Rob, please feel free to contact him in any one of the following ways:

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario, Canada
905-574-9200 Ext. 215
mortgages@robertfloris.com
My Blog

Refinance Your Home

webmaster — Mon, 30 Mar 2009 03:46:19 +0000

Did you know that if you have owned your home for a while, it has probably increased in value? Especially if you have paid down some principle on your mortgage, there may be a big difference between what you owe and the current value of your home (this is the equity). If you are paying a low rate on your mortgage, there is probably no good reason to be paying high rates on your other debts. You should consider refinancing. You could also refinance for other purposes such as investing.

You can contact Rob to discuss this or other financial topics at the contact information below.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario
905-574-9200 Ext. 215
mortgages@robertfloris.com
Rob’s Blog

Mortgage Insurance - Do I Need It?

webmaster — Sat, 28 Mar 2009 19:50:34 +0000

Mortgage insurance will pay off the remainder of the mortgage on your house in the event of your death. It is “required” by the banks if they are to lend you the money for your home.

Does this sound familiar? It’s life insurance. The banks offer it but usually you can get a better deal if you shop around yourself. Use a broker to do the shopping for you (or you can search for quotes online which is essentially also a broker). You are probably better off cancelling your mortgage insurance or waiving it and rather having a life insurance plan that covers all aspects of your finances.

Normally term life insurance is called for. You make small monthly payments early in your life to cover your family in the even of your death and later in life when you have gained some wealth and you no longer need it, you can cancel it or not renew it. This makes more sense than a “universal” plan where the company pretends that it is an investment and you pay a lot more into it for a longer period of time. Yes, you will get some money back at the end (hopefully) but in the meantime, the insurance company has taken that money and invested it for themselves. You should keep that extra money each month and invest it yourself or in your home.

Call Robert today to discuss this or any other of the other topics below.

Robert Floris
Financial Planner
Mortgage Broker

Mortgage and Financial Advice Blog

Should I Pay Down My Mortgage?

webmaster — Sat, 28 Mar 2009 02:39:48 +0000

Mortgage rates are at an all time low so there are 2 trains of thought on this topic. You could take advantage of the low rates to pay off more of the principle amount owing on your home or you could look at it as an opportunity to borrow at an extremely low rate to invest at a presumably higher rate. You could also see a benefit in your tax return if you take this money that you would have placed on your mortgage and invest it into tax sheltered vessel instead. Probably the best decision is a combination of the 2 principles - spend some of your resources to pay down your mortgages and take a portion to invest.

My Blog

Is it a good time to buy or sell your home?

webmaster — Thu, 26 Mar 2009 23:05:34 +0000

When the real estate market is high, your friend and family tell you that it is a bad time to sell your home because you will pay too much for the home you’re considering buying. On the other hand, when the market is depressed (like it is today), your friends and family advise you not to sell your home because you won’t get enough for it. Following this advice, nobody would ever buy or sell!

The fact of the matter is that if you own a home and you wish to sell it and purchase a new one, no time is a “bad” time. The reason is that everything is relative. You may sell your home for less in this market, but you will also pay less to buy your new home. Likewise, if you sell your home in a high market, you will get more for your home but you will also pay more.

However, if you are moving from renting into a home or from a home to start renting - that’s a different story. Clearly in this depressed market, it is an ideal time to make the move from renting to owning your own home. Feel free to call Robert to discuss this option and see if it is right for you. If you own a home and you are considering to start renting, now would NOT be the best time because you would want to get the maximum return on your investment.

Lastly, to get back to the scenario of moving from one home to another and carrying your mortgage with you - you could actually BENEFIT from this depressed market if you are UPGRADING to a better home. The reason to keep it simple is that the discount on the upgraded home is far greater than the discount on the home you are selling. Let’s say your home is worth $100K (just to keep the numbers simple) and in this market, you will only get $95K for it (a 5% decrease). It follows that the new home you are buying for let’s say $200K (which is also down by 5%) is available for $190K. That’s a $10K savings on your upgraded home.

If you would like to discuss mortgages with Robert, he is located in Hamilton, Ontario at 651 Fennell Avenue East. Alternatively you could write to him at mortgages@robertfloris.com or call him at 905-574-9200 Ext. 215.

My Blog

How much of a downpayment do I need?

webmaster — Wed, 25 Mar 2009 21:29:30 +0000

Normally lenders are looking for a downpayment of 25% of the appraised value of the home. However, it is possible for you to pay much less than that (or even no money down!) to get you into a home and start growing your investment. The reason the banks want 25% is because it is a safe bet for them. Mortgage brokers can shop around and tailor your mortgage to your needs to get you into a house. There is also insurance that is available that will allow the banks to lend you a larger percentage of the money because the insurance reduces their risk.

If you would like to discuss this further or to find out if you qualify, please call Rob at 905-574-9200 Ext. 215. If you would like to own your own home, chances are you can if you take this first step. Remember you can apply for a mortgage online at www.robertfloris.com

My Blog

What Does Subscribe RSS Mean?

webmaster — Wed, 25 Mar 2009 01:53:22 +0000

RSS stands for Really Simple Syndication. Basically, if you find this blog interesting, you can “subscribe” to it using an RSS feed reader like the latest version of internet explorer or webclips (that is available as a gadget on Windows Vista):

If you are using the latest version of internet explorer, all you have to do is click on the Subscribe RSS link to the left and then click on “Subscribe to this feed”:

Then when you click on the RSS feed button in internet explorer, it will display the posts.

If you have Google gadgets on your desktop (as shown above), then it’s even better. You can choose to add a gadget, select WebClips (for example) or any other RSS reader and new posts will come through as a news feed on your desktop. You can remove it at any time so there is no commitment.

If you have questions, please feel free to comment on this post and we will explain further. This applies not only to Rob’s blog, but to other sites where you would like to keep up to date on new information.

My Blog

Testimonials

webmaster — Tue, 24 Mar 2009 23:16:33 +0000

If you refresh your page, you can see random testimonials to the right. These are actual testimonials from people who have used Rob’s services. If you know Rob or he has arranged your mortgage, please click on the testimonials link to the left and your testimonial will almost immediately be added to the pool! Good or bad - he wants to hear from you.

Robert Floris specializes in finding the right mortgage for you in the Hamilton area and beyond.

My Blog

Why Talk to a Mortgage Broker?

webmaster — Tue, 24 Mar 2009 15:13:55 +0000

Mortgage brokers are there to represent you. If you walk into a bank - they have one product to sell you - theirs. And if you’re lucky, you may be able to negotiate a reasonable deal. A mortgage broker will shop around to many different banks and lending institutions to find you the best deal. They negotiate on your behalf and give you options. The best part is that their service is free! The lending institutions are the ones who pay the mortgage broker in return for sending the business their way. You may think that you could get a better deal by going direct but that is usually not the case because of the negotiating power of the mortgage broker. Feel free to contact Rob at the following email address or telephone:

mortgages@robertfloris.com
905-574-9200 Ext. 215

My Blog

Mortgage Calculators

webmaster — Tue, 24 Mar 2009 03:04:14 +0000

Have you had a chance to check out our financial calculators. Just click on the link on the left and you will have access to powerful financial calculators with graphics. They can help you make critical decisions such as whether or not to refinance. Check them out or if you prefer you can call Rob to discuss. 905-574-9200 Ext. 215

Robert Floris
Mortgages
My Blog

Why Pay Rent?

webmaster — Tue, 24 Mar 2009 02:20:29 +0000

With interest rates at an all time low and low necessary downpayments, it may not make sense for you to be renting. You could take that money that you are spending monthly and apply it to a mortgage on a home. In this way, you are growing the equity in your home. Think about it - you may spend thousands of dollars a year on rent. Why? Because you want to save for a larger downpayment on a house? Think about it - in the 3 years that you are saving for a downpayment, that home may have increased in value by $50K. In other words, the equity in your home will probably grow faster than your savings for the downpayment. Call Rob to discuss these or other topics with no obligation at 905-574-9200 Ext. 215. Or you can email him at mortgages@robertfloris.com.

Robert Floris is a mortgage broker and financial planner serving the Hamilton, Ontario area and beyond.

My Blog

Credit Card Debt

webmaster — Tue, 24 Mar 2009 01:53:46 +0000

Are you making the minimum payments on your credit cards? Consider consolidating your debt and taking advantage of historically low interest rates. Call Rob today at 905-574-9200 Ext. 215 and take advantage of his expertise. He offers no obligation and honest advice. It’s free so you have nothing to lose.

Robert Floris is a mortgage broker and financial planner located in Hamilton, Ontario.

My Blog

Tax Deductible Mortgage?

webmaster — Tue, 24 Mar 2009 01:47:39 +0000

Consider the Smith Manoeuvre to make a portion of your mortgage tax deductible. For more details, call Rob at 905-574-9200 Ext. 215 for free, no obligation mortgage and financial advice.

Robert Floris
Mortgage Broker
Financial Planner
Hamilton, Ontario

My Blog

Renew Early!

webmaster — Tue, 24 Mar 2009 01:44:53 +0000

Consider renewing your mortgage early. It may be worth the penalty to take advantage of record low interest rates. If you’re interested, call Rob at 905-574-9200 Ext. 215 for free, honest and no obligation financial advice.

Robert Floris
Mortgage Broker
Hamilton, Ontario
My Blog

Robert Floris is featured guest on the MoneyProblems Radio Show

webmaster — Fri, 20 Mar 2009 03:28:58 +0000

Click on the link below to have a listen:

MONEY PROBLEMS SOUND CLIP

My Blog