Bernadette Laxamana & Team’s Home Newsletter

Welcome to the March Edition of our Newsletter! 

This month we provide some background on when interest rates will increase and some tips for Boomers.  Spring is just around the corner so we’ve provided some home tips as well.

Enjoy!

-Bernadette, Charen & Leonor

IN THIS ISSUE:

When will Interest Rates go up?

Sping into Action:

Protect your home

Debt reduction tips for Boomers

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Phone: (604) 436-4600

Web: www.bcloansinfo.com

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When will Interest Rates go up?

To make a prediction you must first understand our current economic situation, then look to what makes mortgage interest rates fluctuate and why.

Current Economic Situation:

The United States has been printing money.

Printing US $ = US $ value decreases

Commodities (wheat, cotton, lumber, oil) are traded in US $

US $ Value decreased = Price for commodities increases

When the cost of purchasing commodities increases people have less to spend, therefore slowing our economy.

Spending decreases = Government decreases rates to stimulate spending

Why are rates so low?

Right now everyone thinks the sky is falling because of negative messages in the media.

Fear in market place = People looking for safe investments (bonds)

The more people buying bonds drives the bond yields down.

$ Out of stock markets > $ Safe bond investments>Bond yields decrease and mortgage rates decrease

It is important to note that fixed rate mortgages follow bond yields.

When will rates change?

When people start to realize the amazing opportunity in our market.

S & P 500 returned 3.71% over last 10 years in totalBased on the average house price in Canada, over the same 10 year period; real estate went up 232%

House prices are low, and people are starting to see the value in investing in a tangible asset (real estate)

$ Out of bond market > $ Into real estate > Bond yields increase and mortgage rates increase

Once the market place catches on to this, it’s only a matter of time before prices and rates go up.  Don’t miss out!

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Spring into action: Protect your home

The flowers are blooming, the birds are singing and our homes have a bad case of the winter blues. But before you tackle those dirty chores, remember that spring cleaning is a tradition that serves a very useful purpose – to rid the home and exterior property of the build-up that has occurred during the winter months.

Here are four simple tips to help make exterior spring cleaning a breeze this year:

• Inspect your property: Frozen ground can cause shifts in your landscaping and patios which, if left unattended, can result in costly repairs and injuries. Be sure to inspect your walkways and driveways for cracks.

• Remove debris from your gutters: Ensure that leaves and dirt are removed to prevent water blockage.

• Repair damage to your roof: Replace missing or damaged shingles to prevent leaking roofs.

• Examine fences around your property and pool: Ensure fences are still sturdy and lock properly to prevent injury and intruders from entering your yard.

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Debt reduction tips for Boomers

As Boomers get closer to retirement age, many are still loaded down by debt. This is an issue because their income will be greatly reduced during retirement and paying down debt will be increasingly more difficult. The best idea is to clear the debt first. The experts from Desjardins Financial Security suggest that while you’re still working, that it’s important to look at your financial situation seriously and start making the necessary adjustments now.

Never too late to set up good financial habits

According to Statistics Canada’s “Retiring with debt” publication, one in three retirees have some form of debt, and that’s equally true for couples and single people. The debt can be in the form of loans, credit cards and lines of credit. But the good news is that these retirees owe less than Canadian workers aged 55 and up. Their median debt is $19,000, as compared to $40,000 for workers. The ideal plan is to develop good financial habits during your working life to ensure that you have plenty of savings and few liabilities at retirement.

Understanding your liabilities and paying them off

There are two types of debt: one increases your assets like a mortgage and the other reduces your assets like credit cards. Credit in and of itself isn’t the problem, so long as it’s managed well. To know exactly where you stand make a list of all your liabilities:

• Bank and store credit cards tend to have the highest interest rates, so you should focus on paying this off first

• Lines of credit

• Car loan

• Investment loans

• Student loans

Once you’ve paid off the debt with the highest interest rate, consider trying paying off your mortgage next. You can reduce the amortization period for your mortgage by increasing your payment amounts, payment frequency (e.g. weekly rather than monthly) or by making a prepayment.

As an added protection, consider credit insurance and term life insurance. In case of illness, disability, or death, these types of insurance will protect your family by covering off your debts and securing your assets.

(Source: News Canada)

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Bernadette Laxamana & Team’s Home Newsletter

Welcome to the February Edition of our Newsletter! 

Don’t forget to spend some special time with your loved ones this Valentine’s Day.

Enjoy!

-Bernadette, Charen & Leonor

IN THIS ISSUE:

Living for today, saving for tomorrow

The legend of St. Valentine

4 RRSP Tips to maximize your benefits

KEEP IN TOUCH:

Phone: (604) 436-4600

Web: www.bcloansinfo.com

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Living for today, saving for tomorrow

Saving for retirement may not be number one on your list of 2012 intentions, however it’s important to start saving as early in the year – and your lifetime – as you can. Canadians who haven’t yet set up their retirement savings can help secure their financial future by making this the year to begin saving in earnest, Saving money isn’t about giving up what you enjoy when you are young; it’s about planning wisely so you can afford the lifestyle you want in the future.

We suggest the following tips to help you save for your retirement easily and effectively.

2012 tips to help you save for retirement:

Determine your goals:

Consider building a plan that highlights your short- and long-term goals and priorities.

Contribute regularly to your RRSP:

Consider weekly, bi-weekly, or monthly contributions – this may be easier for you to do than making one large annual contribution.

Go automatic:

Consider taking advantage of an automatic RRSP contribution program or other regular investment program– this is a good way to establish a savings habit.

Manage your debt wisely:

Liberate funds for your savings goals by reducing your total interest costs – for example, consider paying down highest interest debt first, such as credit card balances.

(Source: News Canada)

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The legend of St. Valentine

The history of Valentine’s Day–and the story of its patron saint–is shrouded in mystery. We do know that February has long been celebrated as a month of romance, and that St. Valentine’s Day, as we know it today, contains vestiges of both Christian and ancient Roman tradition. But who was Saint Valentine, and how did he become associated with this ancient rite?

The Catholic Church recognizes at least three different saints named Valentine or Valentinus, all of whom were martyred. One legend contends that Valentine was a priest who served during the third century in Rome. When Emperor Claudius II decided that single men made better soldiers than those with wives and families, he outlawed marriage for young men. Valentine, realizing the injustice of the decree, defied Claudius and continued to perform marriages for young lovers in secret. When Valentine’s actions were discovered, Claudius ordered that he be put to death.

Other stories suggest that Valentine may have been killed for attempting to help Christians escape harsh Roman prisons, where they were often beaten and tortured. According to one legend, an imprisoned Valentine actually sent the first “valentine” greeting himself after he fell in love with a young girl–possibly his jailor’s daughter–who visited him during his confinement. Before his death, it is alleged that he wrote her a letter signed “From your Valentine,” an expression that is still in use today. Although the truth behind the Valentine legends is murky, the stories all emphasize his appeal as a sympathetic, heroic and–most importantly–romantic figure. By the Middle Ages, perhaps thanks to this reputation, Valentine would become one of the most popular saints in England and France.

(Source: History.com)

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4 tips for slashing your tax bill and maximizing your RRSP benefits.

1. Contribute to your spouse’s RRSP and benefit from income-splitting at retirement. The tax paid by a couple is often reduced when retirement income is evenly split, rather than being claimed by one spouse who would incur a higher tax rate.

2. Invest now but claim the RRSP deduction when you need it. RRSP deduction amounts can be accumulated and taken in future years. If you’re currently in a low tax bracket, make your investments but postpone claiming your deduction until you’re in a higher tax bracket.

3. Don’t wait until the deadline. The sooner you contribute, the longer your investment earns tax-deferred income. Early contributions may also allow you to have your source tax deductions reduced. The deadline for contributing this year is February 29.

4. Turn your contribution into a down payment for a home. You can borrow up to $20,000 from your RRSP to buy your first home. If you already have $20,000 and enough unused RRSP contribution room, make your contribution and receive your tax refund. Then borrow the $20,000 back from your RRSP and add your refund money to create a substantial down payment!

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Don’t forget…We’re never too busy for your referrals!

Bernadette Laxamana & Team’s Home Newsletter

Happy New Year and Welcome to the January Edition of our Newsletter! 

This month we have some tips for first-time home buyers, some home improvements ideas for 2012 and some basic budgeting tips for your family.

Enjoy!

-Bernadette, Charen & Leonor

IN THIS ISSUE:

Tips for First-Time Home Buyers

Put these Home Improvements on your 2012 Calendar

Family Budgeting 101

KEEP IN TOUCH:

Phone: (604) 436-4600

Web: www.bcloansinfo.com

  Join us on Facebook

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Tips for First-Time Home Buyers

You have finished school and you’ve managed to land yourself a decent job. Finally in a position where you are financially stable, and you may be ready to take the next step in your life and buy a house. No more having to deal with crazy roommates or strict landlords. But first, you have to find that perfect house.

It is often easy to narrow down the specific elements you want in a house, besides providing a roof over your head. How many square feet is it, does it have a lawn, is it in a great location; but it is important to consider your budget when dreaming up your ideal dwelling. Since this is your first house, you can take advantage of the Home Buyers’ Plan which allows you to withdraw up to $25,000 from your registered retirement savings plan to buy or build a qualifying home.

Once you’ve finally chosen a house and put down the deposit, all that’s left to do is pack up your belongings. Then, once tax season rolls around, you may be able to claim $5000 as the first-time home buyer’s amount. This is a non-refundable tax credit representing tax savings of up to $750.

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Put these Home Improvements on your 2012 calendar

With the deepfreeze factor at its annual high, the potential benefits of making energy saving improvements really hit home. Yet saving energy and money and adding comfort to your home should always be in season.  Put these home improvement tips on your 2012 calendar;

Winter

• Install affordable plastic window-sealing kits, especially where you feel drafts.

• Install foam gaskets behind electrical outlets and switches to reduce air leakage.

• Close the fireplace damper tightly when it’s not in use. If you use your fireplace regularly, consider adding a well-designed insert.

• Replace or clean furnace filters at least once every three months.

Spring

• Consider larger home improvements like replacing windows that are best completed when the weather is nice. Consider adding spray foam insulation (like innovative Icynene) to your attic or in other areas of your home where the summer heat can infiltrate. You can start saving up to 50 per cent in energy costs all year long.

• Is your air conditioner old or on its last legs? Before things heat up, consider investing in an energy efficient Energy Star-rated unit. Consult an expert to ensure the size of the unit is properly matched to the needs of your home.

Summer

• Add window coverings to block sunlight during the day, so your air conditioner doesn’t have to work as hard.

• Replace inefficient incandescent lighting with more efficient compact fluorescent or LED lighting that also produce less heat.

• Check your hot water tank. If it’s warm to the touch it might need some extra insulation. Check your home improvement store for inexpensive pre-cut tank jackets or blankets.

Fall

• Check insulation levels where you can, like the attic or the floor of a room over the garage. If you didn’t get to it in the spring, install spray foam insulation to seal around openings and penetrations that let air flow in and out of your home.

• Use caulking, sealant and weather-stripping to create a barrier against air and water around doorframes, windows and baseboards. Choose the right caulking for the surface.

• Insulate your hot water pipes to reduce heat loss. It may enable you to reduce the temperature setting on your hot water tank.

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“Family Budgeting 101″

From groceries to the hydro bill, every family needs to watch their pennies.

“A family needs a budget that everyone can follow,” “Ensure you track expenses and plan for costs. This will help you save more and spend less.” 

Here are a few ways to get your family budget on track:

Recurring expenses.Track your monthly spending on your home, food, transportation, utilities and loans. Consider giving to charity on a regular basis too.

Occasional expenses. Birthday gifts, entertainment, dining out, school trips and clothing can quickly add up. Ensure you watch these expenses closely.

Emergencies.

Build up some savings in an emergency fund. A rule of thumb is three months of your income.

Save for the future.Put some money aside for a new home, car or family vacation. Remember to contribute to an RRSP and RESP. Paying off debt should be a priority too.

Consider asking a financial advisor to help you plan and budget friends.

(Source: News Canada)

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Don’t forget…We’re never too busy for your referrals!