One Stop Mortgage Corp Blog

Are Canadians getting better at paying off their debts?

Jan 10, 2012 by @OneStopMtgCorp

in debt

With household debts reaching all-time highs, the need to reduce spending and pay down debt is a necessity for Canadians.  But how does one do this?


The global economic downturn has made many of us question our spending, and as a result Canadians are beginning to pay down debt faster. Equifax Canada released a promising report on January 10th showing that credit card debt had fallen by 3.4% in 2011.  While the report also stated that overall debt was still growing although bankruptcies are down.  Yet the average household still carries a great deal of debt and it is time to start addressing this issue.

One way that many Canadians reduce their credit card debt is to seek credit help and get advice from financial experts on how to manage their money better.  Rather than risking credit collection companies and potential bankruptcy, it is a good idea to get some solid advice about how to deal with the issue of debt. 


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Reassess your Mortgage and Debts

Jan 3, 2012 by @OneStopMtgCorp

debtload

With the beginning of a new year, it is an excellent time to reassess our spending, debts and mortgage.  After an interesting year around the globe, it is going to be an important year to watch our finances.  If you haven’t thought about your mortgage or the extra spending you did over the Christmas season, it is a good time to reflect.

The Canada Mortgage and Housing Corporationhas released its 2011 Canadian Housing Observer report with some interesting new stats to give us insight into how our housing market is performing.  There are many interesting trends included in the report, and it is worth a read if you are thinking about refinancing your home or are curious to learn more about the Canadian housing market.

 

Consult a Mortgage Broker

With mortgage rates forecasted to remain low and fairly stable over 2012, it is a good time to consult a mortgage broker to see if you can secure a good deal on your home mortgage or loans to improve your financial stability over the next year.  If you reassess your finances and discover that you are paying far too much interest and are paying more than 5% on your mortgage, it is time to get a better deal. 

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Real Estate Investment Opportunities in Alberta and BC

Dec 21, 2011 by @OneStopMtgCorp
invest in real estate

Growth in Real Estate sales and value expected for Alberta

The Canadian Real Estate Association reported on Dec 15, that resale housing activity rose in November 2011, despite ongoing global financial uncertainty. This is good not only for the Canadian economy but also for the real estate investor.  The association predicted that the province with the strongest growth in sales in 2012 is going to be Alberta, with a potential growth rate of 6.7%, according to a December 12th article in the Calgary Herald.  With an increase in sales comes an increase in prices expected to be 1.6%, based on the continued job growth and balanced economic performance of Alberta.

Real Estate as an Investment

Investing in real estate is an excellent way to get a positive return on your money through a rental property.  Investors put a small percentage of their own money into a house, shop with a mortgage broker and find excellent mortgage rates to provide a solid return on investment.  Since real estate generally appreciates by at least 5% on average, with that number changing dramatically in high growth areas like Calgary, Edmonton and Vancouver, the investment is further leveraged by tenants paying off the mortgage.  This enables you to save money, take advantage of growth in equity and have the maintenance of your mortgage paid by renters.  In times of economic uncertainty, real estate is a safer place to invest your money than the stock market.  There are also a host of tax benefits and many other benefits to investing in real estate.

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Reorganize your debt with a second mortgage

Dec 12, 2011 by @OneStopMtgCorp

second mortgage

A Second Mortgage is an excellent loan alternative

Anytime the holidays come along and our expenses increase, it is important to think about our debt as well.  When the year ends and we begin to review our finances, think about new business projects and begin to assess how we did during the year.  If we are carrying a high debt load on credit lines or credit cards, a 2nd mortgage is a good alternative.

A second mortgage can be used to pay off high interest debts, consolidate financing issues, provide money for renovations or can be used to buy additional property as an investment.  It is another mortgage on your property and is secured by the value of your home and the amount of equity you have built up over the years. 

There are many advantages of a 2nd mortgage, when compared to other loan types besides the fact that you can pay off your high interest debts. 

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How to Survive Holiday Spending?

Dec 5, 2011 by @OneStopMtgCorp

credit card debt

It's the season to spend

It’s the season to rack up the credit card debts through shopping for that “perfect gift” for your loved ones and participating in numerous social events over the holidays.  This coupled with fewer working hours in December and increased costs as retailers try to increase their year-end and take advantage of stressed-out last-minute shoppers, can lead to a serious financial hangover in January when the bills come rolling in.  Yet there is hope for the Canadian consumer to manage his/her debt and survive the holiday spending.

With increased costs of living, it is tempting to make up the balance by using credit cards to buy us some time so we don’t have to wait to buy something, or have to say “no” to social events.  Despite the fact that many Canadians have slowed down their borrowing, according to TransUnion, the average consumer debt for 2011, not including mortgages, was $25 594, which is slightly higher than it was in 2010.   This may be due to global economic issues and uncertainty, but since 2004 according to an article published in The Star last week, Canadian consumer debt has reached record levels.  While interest rates are set to remain stable for at least another year, if they do increase, this can mean huge financial troubles to those with high credit card debt. 
It can seem normal to have credit cards, unsecured lines of credit and mortgages, since we have been spending more than ever before, but in uncertain times this is dangerous, particularly if you carry debt on credit cards.


Financial Tips to survive the holidays

Here are some tips to get you through the holidays and maintain your financial health:

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Is it a good time to buy a home??

Nov 28, 2011 by @OneStopMtgCorp

Interest to remain low

On November 24th, Mark Carney, the governor of the Bank of Canada announced buy a housethat the central bank will keep lending rates low to limit the impact of the global economic downturn, as financial troubles in Europe increase.

This is good news for those who want to invest in a home or in real estate.  With interest rates at near historic lows, and rental rates increasing, it is a good time to buy a home.


Why invest in real estate?

While buying a home is a huge investment, there are many reasons to consider investing in real estate.

Consider the following:

  • Investing in real estate means that you are putting money into something that has value
  • Homes can go up in value, particularly if you are in a market with strong growth potential, such as Calgary, Edmonton, Vancouver, Surrey, or  Abbottsford as well as many other cities in Alberta and BC
  • It is possible to live in your investment.  Why pay rent so that you pay off someone else’s mortgage? 

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