Tuesday, December 23, 2014

Pay down your mortgage or invest is not an easy question, but you should...

The personal finance debate over whether you should pay off your mortgage or invest your savings, some take a firm stand.
"Eliminating debt, high interest debt is one thing and paying off mortgage debt, low interest obligation is another one" notes Konstanting Kuligin of myrrsp.com 
Kevin O’Leary says maximizing your mortgage payments will be the safest investment you’ll ever make, but again, he was only in the mortgage lender business for only a few months, so his statement might not been well funded.

Real experts don’t always agree. Many will tell you: “It is more complicated than that” What, for example, is your earnings, your risk tolerance or your level of discipline when it comes to save? Which direction will you go for greater tax advantage? Yes, tax advantages are one of the main components of every investor to consider.
If you use the $5,000 to pay down the mortgage principal over the next 16 years while (4% interest) maintaining the normal monthly payments, you will have the whole amount paid off in 16.4 years (shaving off almost 9 years) you save more than $56,000 in interest
$5,000 in a portfolio that returns 6% annually in a tax-free savings account, your portfolio would be worth $136,064.40 after 16 years.
Than think about what can you make in a double digit return environment, when your investment funds create double digit return, tax free and the unpaid tax portion will also bring new profit.
 “Assuming mortgage rates will stay at 4%, what is for sure not guaranteed”  says Kuligin.“Double digit return, though it carries some risk, can weather some fluctuations and still be better use of your RRSP funds than paying down your mortgage, the cheapest money you will every borrow” he says.
The bottom line is that the pay down is the best option if you are the conservative type and/or don’t have a lot of investing acumen. If you are comfortable with investing into deals with protected capital and great return, secured by prime real estate– but be sure the money is 
tax-sheltered.” president of MortgagePRO Ltd. Zoltan M. Padar a mortgage brokerage head quartered in Calgary, Alberta, explains the ins and outs of investing into real estate backed mortgages, where you are the bank, "beat the bank, be the bank, it is not a secret, banks most favorite investment vehicles are mortgages, as well as the most lucrative" he added.Visit us and learn more on the best arm chair investment ever been invented, rather you using you own capital, you borrow to invest and write off the cost, how to retire earlier, as smart investor retires early. Are you one?

Tuesday, March 11, 2014

Best networking team you have ever joined...

You are invited!
I am the organizer and managing Private Mortgage Lenders Canada a Network of Realtors, Real Estate Investors, Mortgage Brokers and Private Mortgage Investors Have you ever added all the expenses your business requires to advertise, promote your business? You would wonder wouldn't be a better world if you keep all those hard earned dollars? Networking cost you nothing, our membership is free and when you sign up we will approve you in a short time. Join us 

Tuesday, February 18, 2014

More lenders will come on line soon! Not a secret?

There was some great news in the federal budget that could have positive outcomes for anyone looking to purchase a home, refinance or renew their existing mortgage. The Department of Finance expressed their commitment to increasing the competition of mortgage lenders.

Many of the smaller lenders who focus on mortgages, offer us very competitive consumer rates and deal exclusively through mortgage brokers will be given preferable access to better allocation of portfolio insurance and securitization.

This will fuel more competition which means more mortgage options and choices when dealing with a mortgage broker instead of the banks. Canada Mortgage Housing Corporation considering additional “alternative funding options” for smaller lenders which is great for us!

A recent Bank of Canada survey found that using a broker at the time of your mortgage renewal may result in getting a lower rate and saving money because mortgage brokers have the widest access to mortgage lenders.

The same survey found that loyal customers may not get as good of a deal with their bank as they would if they went to a different institution as a new customer. So dealing with a professional mortgage broker for all your mortgage needs just makes sense.

More choice, more convenience and more great counsel.

One of the benefits are using MortgagePRO, besides best rate, low rate custom fitted to your needs and not of the lender, we have all the lenders across Canada in our list of lenders, so we can look at more and better products than any other brokerage. Also we can combine bank and private funds if we need to accommodate request coming from people with age, job and or credit issues and they are either self employed, new to the country. We are connected and we do not leave you behind.