Have you ever put off doing something so long that it became embarrassing, but you had to jump in and do it anyway? That’s how I felt about writing this months newsletter, embarrassed because it has been so long. Sure, I’ve sent out announcements, but not an actual newsletter. You must be wondering where Jacquie is? What going on with the Solvent Family? How’s Linda? What’s happening in the mortgage industry?
I’m going to give you the Coles notes:
In August of this year, Linda decided it was time to retire. I can’t tell you how much I miss her, and the way she kept me and the office organized and on track. I know she is enjoying a more relaxed day without the demanding days of the mortgage industry. She is missed by many.
For myself, it’s been an eventful summer and fall. My stepdaughter married her longtime beau. Darby moved out on her own leaving Klaus and me with a kid free home. I celebrated turning 50. With the absence of Linda, I’ve been challenged by doing things on my own until I find a suitable replacement. Its been a challenging experience. In short, if I have not been as responsive as usual, this is why.
The mortgage industry; the last two years have been a rollercoaster ride. I can’t keep up with the changes, the rate movement and the rules. Rates have been rising, but all indication says that it should start to slow down now. We can expect to return to the days of the 4% area. If you have not heard from me, you will. Please see below for a promotion you may want to consider. Again, I am here to support you, if you would like to discuss your mortgage, rate protection for an upcoming renewal or you want to ensure you are still in the right mortgage for you at this time, please give me a call.
I start the email by asking, have you ever delayed something until it was so uncomfortable but you knew you had to deal with it? This happens more often than you think when it comes to finances. If you or someone you know it having trouble keeping up with the bills and your not sure what to do, call me. Today, it is so important to look at your finances before you go into default or before the credit becomes too damaged. Call me, if I can’t help, I will point you in the direction of someone who can.
Please remember, I am only a phone call, text or email away.
Understanding Mortgage Rate Increases
As your mortgage broker, it is my job to inform you when industry changes can affect your home financing. That is why I am reaching out.
How does this affect you?
If your mortgage is coming due in the next 18 months you can expect to pay 0.75% to 1.0% higher than today’s current 5 year fixed rate mortgage of 3.59%.
What does this mean?
It means you have the opportunity to stay ahead of the rate increases and save money. I’m sure you’ve heard this saying before, “The numbers don’t lie.” Well, they don’t. Check out this simplistic scenario below:
|Maturity date||June 2019|
|Penalty to discharge||$2,104.37 (3 months interest)|
|Today’s 5 year fixed rate||3.59% (estimated 5 year fixed rate in 2019 – 4.59%)|
|Estimated interest savings by calling me today||1.00 x $325,000 = $3,250.00 per year x 5 years = $16,250.00|
$16,250.00 of savings in this calculation isn’t something to be ignored. But these aren’t your numbers…
How much will YOU save?
If you reply to this e-mail I can certainly calculate your potential savings for you and start the process. Please include your current mortgage balance, maturity date and interest rate in the body of the e-mail. If you prefer to speak over the phone, then please contact me on my direct line: 613 882 3201
Alright, so you’ve made it this far. Great! If you are interested in learning more about why the mortgage rates are increasing, check out these links: Benjamin Tal (Deputy Chief Economist at CIBC Capital Markets), CBC Analysis and Global News.
The Solvent Family
When we last left off the Solvent family was leaving for summer vacation. It was more of a staycation to keep the spending down as they were focusing on paying down consumer debt and saving to purchase a home.
This summer offered up lots of opportunities to spend time with children and do fun and free things, but that’s not what happened. Mom and dad gave in as the children wanted, demanded to go to summer camp. One child wanted horseback riding lessons. The cost of the course and the equipment was well over $2000.00 per month. The other two also went to summer activity camps, less expensive but still wearing on the budget. By the end of the summer, the family had spent over $7000.00 in camp fees. In addition, the family car that had already been in for repairs several times called it quits and the family had to find funds for a new car, the bank of mom and dad came to the rescue as the family savings were depleted. Lastly, bad luck seems to always come in threes. Just as the family got the children back to school and into their routine, Mrs. Solvent, lost her job and returned to smoking after 4 months of being cigarette free.
Sadly, 2018 has not been a seller year for the Solvent family; they can’t wait to see the backside of this year.
Over the last month with all that has taken place, the Solvents have decided to revisit their budget, spend time with the whiteboard they had outlined their debt repayment plan they were so proud of and see how they can get back on track.
When times seem tough, are tough, remember you are not alone. There are many fee-free agencies that are available to help. If you experience a job loss, try to keep motivated by volunteering to fill the time, take on a job that is not your ideal job, to keep you busy and connected with people. You never know when and where your strike of good fortune is going to come from. There are all sorts of resources and support agencies available, use them. They do help. If you are struggling similarly as the Solvent Family, call me, I’m happy to help.