I have to say, I am glad I am a mortgage broker, and not an insurance advisor…talking about a tough sell!  As a broker, I always feel obligated to make sure I have the “life insurance” conversation by means of protected their biggest asset.  Many young people don’t see the point yet.  Some of the older generation feels it is just too expensive.  What most don’t realize is how powerful of a tool life insurance can be!  I found this great article demonstrating just this:

Globe and Mail:  8 Way to make life insurance work for you

Financial Post:  “Canadians would feel the squeeze of higher interest rates: BMO”

I know this is starting to get a little redundant.  I keep talking the about the effects or rising interest rates, but the impact could really be that big.  I came across this article that just furthers my point.

What are you doing to make sure you are ready for this?

To no surprise to me, there was no increase to the overnight lending rate by the Bank of Canada.  There have been no significant changes in the economy and although we see modest growth in some sectors; outside of Calgary, the housing market has cooled.

But what I did find interesting was the language Carney used leading to his desire to raise interest rates in the future.  The fact is, neither you nor I  have any control about whether interest rates on mortgages go up or down, but what we can control is if we are prepared or not.

Think about it.  What if your mortgage payments went up $400 per month, could you keep your place?  I think it is a pretty scary thought, but quite frankly, with the government’s desire to curb spending and consumer debt via mortgages and the thoughts of increasing interest rates, this could really happen.

So, what can you do about it?  How can you protect your family and home against such a disaster?  Just like your assets and investments, have an expert review your mortgage on at least an annual basis, and get them to provide you with strategies to protect against such things.

Article:  Bank of Canada keeps rate hike on radar, Financial Post

Okay, this Lance Armstrong thing has been beaten do death.  Let’s face it, the guy was a cheater and got everything he deserved including today, being stripped of his 7 Tour de France titles.  Here is the kicker all the way through he has lied, he claimed he was innocent.  I think the world is a forgiving place.

When the baseball world had it steroid issues, the players that people loathed, are the ones that denied every using.  Andy Pettitte of the NY Yankees and former player Mark McGuire both “came clean” about using either HGH or steroids.  As a baseball fan, and someone that enjoys players that do things the right way…seems to me that most people have forgiven these two guys, and both are still be big parts of baseball.

Lance Armstrong has lost everything.  Relationships, his career and most endorsements.  We can never take away how he beat cancer, regardless of performance enhancing drugs, he is still a warrior.  I just think if he came clean, people would start to forget about “Cheater” Lance, and focus and remember “Warrior” Lance.

TSN:  ICU Strips Artmstrong’s Seven Tour De France Titles

What can I say, life happens.  Unemployment, loss in the family, and struggling business, these things can take a toll on you, and your credit.

When money is tight, sometimes you find yourself struggling to makes ends meet, and things don’t get paid.

If you have been discharged bankrupt, or have gone through a consumer proposal, you can still help you buy a home…and if not, we help you plan to get there.

Alternatively, if you are thinking about bankruptcy or a consumer proposal, call us first…maybe we have a better solution!

Globe and Mail:  How to buy a house when your credit has been trashed

I was having a conversation with one of my realtor partners about the best strategy for one of her clients that is retired and thinking about making one last down size.  She was wondering what was the best strategy and mortgage product for them.

I suggested a big old line of credit.  Why?  Simple, equity is like your dad, you need to ask it permission to use it.  By getting a big line of credit, you will always have access to a big portion of equity.  What I cautioned was that as someone who is retired, cash flow could be an issue, and a line of credit would allow interest only payments.  But the other key is access to funds.  Will their pension really last forever? What if the government stops paying it?  Long shot, right…

Then I saw this article today about the government reinstating pensions for veterans’ affairs.  Globe and Mail:  Ottawa ends claw back on veterans’ affairs pensions.  You know what that means right?  At some point they clawed back on these pensions?  Pension for disabled veterans.  Disability benefits for people who defended our country.  So, you think OAS is safe…think again.

By taking a line of credit out, pensioners and retirees can have access to equity in case something happens to their source of income and with a line of credit you only pay if you use it…never need it, never pay.

Anyone you know, retired or close to…we need to chat.

The title of this article says it all in the Globe and Mail:  “It’s not fun or sexy but life insurance is a must for all families.”

The two things about life insurance that bug me:

1)  Opportunity cost.  Granted we are all going to “call it a day” someday, but what if you took those monthly life insurance premiums, and invested in something with a great return, then where would you be in 25 years.  The kicker for me, is that I have a young family that relies on me, so I need to have life insurance to protect them.

2)  Life Insurance from a bank or credit union generally sucks.  Their premiums are generally higher, but often don’t even pay out on death.  Knowing what you are really getting in to is key.

Bottom line, the younger you are, the cheaper it is.  If you have a family that relies on you, or any thoughts of having a family that relies on you, life insurance is a must.  However, talk to a pro, not the bank.  Here are three guys that knock it out of the park:

Travis Strain

Greg Brown

Ferd Milan

So today I am going to go off the path a bit, and talk about the new waste collection system in Surrey.  Many people are not happy, as they think the containers are too big…or it’s too hard to separate.  I have two thoughts:

1)  Change is never easy, but I also didn’t realize how much stuff I used to throw out, that could have been composted.  So I think this is a good move for the environment.

2)  I love apps.  Really, who doesn’t?  Did you know, there is a app you can download for this new waste system:  itunes:  MyWaste.  It’s is awesome.  It gives you schedule, and set reminders, which is good because recycled goods and garbage alternate weeks.  But the cool part is the search function.  Don’t know if you are supposed to compost something or recycle it, look it up…AWESOME!

In summary, environment good…I love apps.

The title of this article:  Globe and Mail:  Mortgages and loans – harder for the self-employed? can be so true these days.

If you’re self-employed your pay cheques fluctuate, your accountant helps with the greatest tax benefits, which can result that your income you pay taxes on, doesn’t truly reflect what you “took home”.

But I think they really missed the boat, by only interviewing people that work at “institutional” lenders.  One that works at a credit union, and one that works at RBC, who’s “best advice” is to “have a relationship with your bank”…of course that is his advice, that is the only way he makes money.   Wouldn’t RBC like that?  If you just had blind faith that they would take care of you and give you good advice.

I have a better idea, how about the best advice is to work with someone who actually knows what they’re talking about.  Think about this, not only does the person you are talking to at the bank, only have the options of that bank, they also have never been self-employed.  They have no idea what you go though.   Whether they do a good job or not, they get paid, they get their nice little pay cheque each and every two weeks.

Don’t get me wrong, as someone who is self-employed I do value my relationship with my banker…not my bank.  My small business banker is great, he “gets it”.  However, I am not naive to think that my bank (one of the big five) actually cares about me.  If my banker left…I would most likely follow him.

Here is some REAL Advice:

1)  Work with someone who has some experience actually being self-employed.  Someone that understands the ups and downs and that can relate to what you go through every day, and is willing to fight for you.

2)  Just because your banker asks for your financial statements and tax returns, doesn’t mean they actually know how to read them.  Work with someone who has intimate knowledge of financial statements and tax returns, so they can present your case in the best light.

3)  Work with someone that actually has a selection of lenders and products, so if one doesn’t work, you have the peace of mind knowing there are other options.

4)  Have a good accountant.

Financial Post:  Financial Advice from Wayne Gretzky

As a kid growing up in the 80’s and 90’s in BC, we grew up detesting Wayne Gretzky, it seems he broke every record against the Canucks.  It was painful.  As I got older, I could take the emotion out of it, and just appreciate how great he was.  So when there is an article about money and Wayne…I was in.

There isn’t a whole lot to take home here…but the one thing I really appreciate is how he leans on people.  He lets people who know money, help him with money.  Everyone can’t know everything.

It begs the question, if you get your mortgage directly from your personal banker…are you getting the best advice?  Seriously.  How can they really be experts in banks account, investments, insurance, mortgages, etc…take it from Wayne, get experts in each category, not just an all in one.