BMO Drops 5 Year Fixed “Low-Frills” Rate

Maximizing the Resale Value of Your Home…

How? Stategic Landscaping.

When planning renovations, don’t overlook the value of your yard. Nothing adds more immediate curb appeal than attractive landscaping. Choosing the right plan will definitely make your home more salable. But even if you’re not planning to sell anytime soon, you can enjoy the benefits of enhanced landscaping and be confident they have lasting value—according to a recent SmartMoney article, the right landscaping can add up to 15% to a home’s value.

Here are some landscaping strategies that offer the highest return:

• Concentrate on the entryway of your house—that’s what buyers see first. Replace worn-out stairways with decorative concrete blocks. Make it staggered or curved for extra impact, and edge it with raised planters. Continue the raised planters along the front of your home to enhance drainage and tie the landscaping into the architecture.
• Xeriscaping your yard—a style of landscaping that requires little irrigation or maintenance—is inexpensive to do, saves ongoing costs and appeals to today’s time-squeezed buyers.
• Adding a deck is an inexpensive way to increase the apparent floor space of your home. Make outdoor and indoor space blend seamlessly by using French doors and indoor-style light fixtures and furnishings. The deck shouldn’t be more than one-third of the square footage of your home’s main floor.
• Replace hard-to-maintain slopes in your yard with terraces that feature plantings or mini patios with furniture.
• Add lush vegetation, but don’t go overboard. Everyone—including you!—enjoys green, leafy surroundings. But few buyers—including you!—like high-maintenance gardens. Choose hardy perennials and shrubs, and use ground cover planting to reduce weeding and watering.

To cover the cost of a strategic landscaping investment, talk to me today. Chances are you already have enough equity in your home to pay for everything—and with today’s record-low mortgage rates, you’ll probably end up with lower mortgage payments too!

Your Credit Score

Your Credit Score: What Is It and How’s It Calculated?

Your credit score is a three-digit number that lenders use to predict your creditworthiness. Credit reporting companies calculate your score based on your payment history, how much you owe, how long you’ve had credit and how often you apply for new credit. In general, the higher your score, the less likely you are to become delinquent on credit. If it’s above 650, you’ll probably qualify for a standard loan. If it’s lower, you may have trouble getting new credit.

Because your credit score and credit report are constantly changing, it’s important to review them on a regular basis, at least once a year. Since there are two main credit reporting companies in Canada—Equifax and TransUnion—it’s a good idea to check your records with both companies. This helps you identify and correct any inaccurate information, detect any fraudulent activity and gauge your overall credit health.

If you’re planning on applying for a mortgage, it’s especially important to check your report a few months in advance. If your credit score is a little low, here are some actions you can take to improve it:

• Pay all your bills on time. Paying late or going into collection can reduce your score.
• Don’t max out your credit limits. Keeping balances below 65-75% of your limit can increase your score.
• Don’t apply for credit you don’t need. Too many inquires over a short period can reduce your score.
• Don’t close old credit accounts, even if they’re inactive. This can make your credit history appear shorter which can reduce your score.
• Correct any negative inaccuracies on your credit report. This can increase your score.

Still have questions? Don’t hesitate to give me a call 250-477-7555 to learn more!

Budgeting Towards Homeownerships

Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. It can also be a stressful experience if you don’t plan ahead by building a budget and saving prior to embarking upon homeownership.

Budgeting is a core ingredient that helps alleviate the stress associated with money issues that can sometimes arise if you purchase a home without knowing all of the associated costs – including down payment, closing expenses, ongoing maintenance, taxes and utilities.

The trouble is, many first-time homeowners fail to carefully think about their finances, plan a budget or set savings aside. And in this society of instant gratification, money problems can quickly escalate.

The key is to create a realistic budget based on your goals. Track your spending and make your dollars go further by sticking to your budget once it’s in place. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to invest in homeownership.

Start by listing your household income, then your household expenses, and review your spending habits. All of this can be done on a pad of paper or on a computer spreadsheet.

Keeping receipts for everything that you purchase will enable you to accurately keep track of where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis.

Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.

If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.

Budgeting provides you with the opportunity to re-evaluate your needs and wants. Do you really need the magazine subscriptions, the gym membership and all the other things you may spend money on each month? Although everyone needs some “me time” to wind down, could you not get that by taking a walk or reading a good book you borrowed from the library?

If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.

Following are three top tips to help you prepare for the purchase of your first home:

1. Set up a savings account. You can deposit a predetermined amount into this account each pay period that you will not touch unless it’s absolutely necessary. This will enable you to put money aside for a down payment and cover closing costs, as well as address ongoing homeownership expenses such as maintenance, taxes and utilities.

2. Save up for big-ticket items. As you accumulate money in your savings account, you will be able to also save for specific purchases to help furnish your home – avoiding the buy now, pay later mentality, which can have a negative impact on your credit when you’re seeking mortgage financing.

3. Surround yourself with a team of professionals. When you’re getting ready to make your first home purchase, enlist the services of a licensed mortgage professional and a real estate agent. These experts are invaluable to you as you set out on the road to homeownership because they help first-time buyers through the home purchase and financing processes every day. They will be able to answer all of your questions and set your mind at ease. A mortgage professional has access to multiple lenders, and can help you get pre-approved for a mortgage so you know exactly what you can afford to spend on a home before you head out house hunting, while a real estate agent will be able to match your needs with a house you can afford. Both parties will negotiate on your behalf to ensure you get the best bang for your buck. And, best of all, these services are typically free. They will also be able to refer you to other reputable professionals you may need for your home purchase, including a real estate lawyer and home appraiser.

Maybe Your Mortgage Needs A Check Up

Andy Holloway, Financial Post · Friday, Jun. 11, 2010

While about 80% of Canadians visit a doctor at least once a year to help ensure they remain physically healthy, the number of people who check their financial health by regularly reviewing their mortgage is far less.

Read the full article by clicking here.