Building Wealth Starts When You Stop Making Poor Financial Decisions

You Don’t Need To Be Embarrassed By The Way You Manage Your Money If You Do It Right.   Building wealth seems to be the target for just about everyone unless you don’t mind struggling for money to pay the bills and retire comfortably. At least once a week I get an email from a fan who tells me they are tired of being broke, have lots of debt and want to start building wealth now rather than later. Not only is that a smart idea it’s the beginning of a journey back to square one where you get to clean your financial slate and do it right. Are you embarrassed by the personal finance decisions that you are making? You should be if you’re making simple mistakes that are causing you to spend more money than you should be especially when you have technology at your finger-tips. Rate comparison for everything is available to us but when it comes to financial rate comparison it takes a back seat to everything else. Related: Stop blaming the government for all of your debt problems. Not having money and surviving on a low-income or struggling with a high debt-ratio can be embarrassing […]

How Should We Budget $5000 of Discretionary Income?

PLAYING WITH SPARE CASH   Not many people can say they have extra discretionary income kicking about every month where they have to drum up ideas about how to spend it.  For those of you that do you can still manage that money with a budget if you want to stay on track with your financial goals. When Mrs. CBB and I paid off our mortgage in April 2014 it was a grand time for us. We managed to break down our mortgage into pieces and pay it off far sooner that we had ever dreamed of. The reason that happened was due to perseverance and a drive to be successful at whatever we did. I guess in a way we were pushing ourselves to earn more money but we knew in the back of our minds that it was all stepping-stones for our dream career roll. Now that our mortgage is paid we have lots of discretionary income which we just recently worked into our budget. Lots of people would be more than tempted to start spending money especially if they’ve hit it big time and the money is rolling in.   What is Discretionary income vs. Disposable Income? […]

Our mortgage amortization schedule is going in the bin: March 2014 Net Worth Update (+0.75%)

 NO SWIFFER NEEDED JUST A FIRE PIT   Yes, that’s right no more checking the amortization schedule on our mortgage to see how far we have come and costs involved with our mortgage. The time is very near where we start the fire and light up those mortgage papers to say good-bye and good riddance. Although the last few months of our budget have been filled with unexpected expenses we are still on target to say goodbye to our mortgage, for good. Next months Net Worth update should be titled, Mortgage free at last…. or something to that effect lol. It’s been a long 5 years in this house but it was worth the sacrifices of using the budget (which is free if you want to download it) to save the money for all the necessities we’ve needed so we can be mortgage free before 40 years of age. Although we’ve had the money for close to a year to pay the mortgage the exchange rate for the UK is at an all-time high since I moved to Canada back a few years ago now. I’m pulling the money I have over there while I can. The last thing I […]

Emigrating to Canada ~ Should I Rent Out My House

THINGS TO CONSIDER BEFORE THE MOVE   Canada seems to be a popular destination for UK citizens looking to start a new, more fulfilling life. Over the past few years I’ve known 3 or 4 different couples who’ve taken the plunge and made the tough decision to leave their life in the UK behind and start a new one living in Canada. As a former mortgage advisor some of those friends have questioned me regarding the biggest dilemma they face, after hiring an international moving company as they organize the big move to Canada, ‘What Should I Do With My House?’ Should I sell or rent out my house? If you’re a homeowner the decision of whether to sell or rent out your house has likely been plaguing you as you progress toward emigrating. In this article we’ll take a closer look at the option of renting and hopefully it will help you decide if becoming a landlord is the right option for you.   Emigrating Is No Ordinary Move   As you’re going to be moving to the other side of the world to live in Canada, renting out your home becomes more complicated than it would ordinarily be. Unless you can arrange […]

What Are Bad Credit Mortgages?

What are Bad Credit Mortgages? Before you look at any type of financing you need to make sure it’s right for you, and bad credit mortgages are no exception! Here we’re going to go over the benefits of these kinds of mortgages. Bad credit mortgages are great for people with bad credit, no credit, or just people who need to work on their credit. Just because you have bad credit doesn’t mean you can’t get a mortgage. What is Bad Credit? Bad credit can be a highly subjective term, but for most mortgage lenders it will be a FICO score under 600 points. If you have anything less than that you could have trouble getting a mortgage, even from bad credit mortgage lenders. You’ll want to first think about credit repair like debt consolidation; even if you do qualify for a bad credit mortgage you could wind up paying much more in interest where it doesn’t make sense to take the mortgage. Is a Bad Credit Mortgage Right for You? You’ll need to talk to a mortgage broker to make sure that this is the right kind of financing for you. There are many ways that a bad credit mortgage can go wrong; you’re going […]

What Is the Difference Between a Mortgage Lender vs a Mortgage Broker?

What’s the Difference between a Mortgage Lender vs a Mortgage Broker? There are so many terms thrown around in the finance world that it can be hard to figure out what means what. A mortgage lender lends money, while a mortgage broker finds money. Here we’re going to talk about the differences and roles that these two play when you’re trying to finance or refinance your home, and you’ll be able to enter the process with your eyes wide open. You’ll be able to see through the curtain and different tactics so you make the right decision for your financial future instead of theirs. Let’s get started. What Does a Mortgage Lender Do? Unlike your local Toronto mortgage broker, a mortgage lender lends you money. This could be a bank, a credit union or a private mortgage lender. You’ll have to fill out a mortgage application with them, then you’ll have to go through a whole process where they tell you they either want to work with your or not. This can be a stressful process, but in the end you’ll either get the financing that you need to buy a home or you won’t. It’s a very binary procedure. Depending […]

Save Money On Your Next Mortgage Transaction

Buying a home is not a “buy now deal with it later” process rather one that should be researched properly before you get yourself into hot water. There is so much to learn and the buyer and seller that are best prepared are the ones that come out on top. Any time you are ready to make potentially one of the biggest investments of your life such as a mortgage loan take a moment to invest in yourself and your wallet.  Buying a home is a confusing, ever-changing process, with a lot of steps along the way.  All of those steps can end up costing you in cash and stress, so know where you are headed before you start the house hunt. Whether buying your first home, refinancing, or selling and buying, the following tips could help to save you money on your next mortgage transaction.  Speak to your Home Insurance person ahead of time; Lawyers/Notaries are required by the lender to prove you have Fire Insurance, most Insurance Agencies will charge an “Insurance Binder Fee” to supply the lawyer that information.  Call ahead and make sure they don’t charge you…or go to a different agency. When shopping for the […]

Should You Be Breaking Your Mortgage?

Are you thinking about breaking a mortgage early? Most people assume that when they sign up for a 5 year fixed rate that they have to stay in that mortgage for the next 5 years…that isn’t true in most cases.  While there are a few lenders out there who have “closed” mortgages that are not breakable without a bona fide sale of the property, the vast majority are breakable. So how does that work?  If you decided that the rate you were paying was too high or you wanted to add funds in a refinance or various other situations that made you want to break the mortgage you were in, how can it be done?  If your current mortgage rate is less than lender’s rate on the equivalent remaining term, you simply pay a 3 month interest penalty…for example: Current mortgage of $150,000 @ 3.25% with 3 years remaining Lender’s 3 year rate is currently 3.45% 3 Months interest = $1,219 approximately ($150,000 x 3.25% /12 x3) What if the opposite is true, the current rate you have on your mortgage is higher than the current available from the lender?  Now we enter the world of IRD, or Interest Rate […]