A lot of my reading and thinking lately has been along the lines of choices and balance in life. When talking about choices I’m referring to the choices we make in life every day in every area that naturally lead to wherever we currently find ourselves. The big picture thought here is that choices have natural consequences be they good, bad or indifferent. And when I’m talking about balance I’m referring to life balance in particular – that elusive equilibrium of time, finances, schedules, relationships, hobbies, etc.  It seems to me that these two concepts of choices and balance are inseparably linked and worth exploring. It also seems to me that the vast majority of people are becoming more and more frazzled with each passing day whether we are talking about finances, schedules or relationships. 

This month I want to talk about how we use/misuse our time. The concept of ‘Time Management’ is, in my opinion, a tremendous fallacy.  We can no more mange time than we can manage the wind. The whole concept of managing something is that we can gain higher efficiencies or productivity from the same base resources. However, when applied to time, no matter what we do we cannot take an hour and some how squeeze out 63 minutes. It’s not possible.  Time is truly the great equalizer. We are all given exactly the same amount each and every day (86,400 seconds per day) regardless of sex, age, income, religion or any other possible demographic. What an interesting concept

To me it’s not a matter of managing our time as much as it is a matter of how do we spend our time. Just like our financial bank accounts, we must decide how we are going to spend the daily deposits of time that are put into our time bank accounts. The difference is that our time ‘bank accounts’ must be spent entirely each and every day. We cannot carry over a balance to the next day, nor can we save any time for a ’rainy day’. At midnight all of our accounts are reset to 86,400 seconds and we must spend them. So the big question is…How are you spending your time?

As I observe our modern day culture I am quite concerned with what I see in regard to people’s schedules and use of time. It seems to me that now, like at no other time, people are constantly on the run. It’s as though every single minute has to be filled with some form of activity, entertainment or just busyness. The importance of quiet reflection, solitude, meditation or simply thinking seems to be lost on us. And it’s not just our lives – we have our kids running on the treadmill right beside us.

I read an article recently in one of our national newspapers that was talking about the elevated stress levels in our kids. I remember thinking “No wonder”. It seems that parents today are out 4 and 5 nights a week going to this event, that game, this practice, etc. And then there’s more on the weekends! And what if you have more than one child? Yikes! No wonder we feel like there’s not enough hours in a day. In fact, there is really no line drawn in the sand any more that says this is our down-time. Our ‘do nothing’ time. Our ‘rest’ time.  Every day is now fair game for everything – shopping, working, sports, entertainment, you name it. Now, however, it’s not just adults but our kids as well who are dealing with stress issues in their lives.

Do we seriously believe that we can lead these hectic out of control schedules and have no consequences in other areas of life?  If we do not create balance in our schedules and reclaim some of our time for true leisure and relaxation, then sooner or later we are going to blow a gasket somewhere. Maybe it will be in the area of our health.  Perhaps strained relationships?  Or maybe in the area of our finances?  Hopefully not all three.   But sooner or later something will give. At what point do we stop and ask ourselves, “Why all the running?” or “To what end?”  At some point you just have to say “STOP”.  Until then you run the risk of suffering the natural consequences of running, running and running.

I truly believe that our time is our absolute greatest resource. Make sure you are spending yours where you are truly going to get the highest returns. Remember: Yesterday is History, Tomorrow is a Mystery, Today is a Gift…that’s why they call it the Present. Spend it wisely.

By Brian Marling

Interest Rates are Irrelevant…Strategies Are What Matters!

Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

If I were to take a survey and ask the question, “What is the most important component of your mortgage?”,  the vast majority of respondents would likely say the interest rate.  And that’s probably why I get so many interesting looks from my clients when I tell them that the interest rate is irrelevant. Now I must admit that I say that in part just to see their reaction, but primarily because I believe it to be a true statement. Allow me to explain.

When using the services of someone like myself, who has access to over 50 different lenders all competing for your business, the interest rate is going to be competitive no matter what. Therefore, that’s the reason I say it is irrelevant. Certainly not irrelevant from the clients point of view – I get that, but rather from the view point that it will be the best possible rate at the time. Therefore, the discussions I have with my clients centre more on the many different strategies I employ as opposed to the normal “What’s the rate?” discussion that most have with their bank.

The interesting thing is that most of my clients have never had a Strategy Session with their banks before and have only ever been focused on the rate. The irony is that you could very well be losing thousands of dollars due to your myopic focus on rate. So then, what kind of strategies am I referring to?  Well… that depends. It depends on your current situation. It depends on your future goals. It depends on the current and future economic forecasts. It depends on a number of key factors and no two situations are identical – which is why it always floors me that the banks seem to want to put everyone into the same mold.

So, what’s the right strategy for you?  Is it our Cheap Money Strategy? Equity Strategy? Tax Strategy? Inflation Hedge Strategy? Or, perhaps, our Send Your Kid To College For Free Strategy?!!  Now ask yourself – when was the last time your current lender even had a strategy?  Perhaps it’s time to change.

Currently I am employing all of the above strategies with my clients depending on their unique circumstances. If you would like to discuss any of the above strategies please call me to arrange a meeting.  Here’s what a few of our clients have said:

“I enjoyed the face to face communication and the fact that Brian took the time to explain things.  I found the process very simple and smooth.  I was recommended to your office by a friend and found your staff very pleasant and thorough in their explanations.”  -Mike J.

“We found the whole experience really good.  Brian was always available to meet with us and return our calls.  He has a wealth of knowledge about the industry and we picked up lots of little tidbits of financial info through our discussions that have been helpful.  We felt Brian kept our needs and interests in mind and that we could trust him.” – Tim & Carrie M. 

“We appreciated your support through this process, as you always made us feel we had options and eased our anxiety.  We were provided with sound advice and solutions and had an extremely positive experience.  The service was exceptional and someone was always available to answer questions and provide solutions.  We would absolutely recommend you to others.” –Connie M.

“I was tired of the poor service I was receiving from my bank, regarding my mortgage, and was therefore convinced to try working with a Mortgage Agent.  The experience was very satisfying as Brian was available, knowledgeable and trustworthy.  I particularly enjoyed the intelligent conversations with Brian and Andrea’s attention to detail.  I will mention ‘Neighbourhood Dominion Lending, Cobourg’ to anyone in need.  Thank you to both Brian and Andrea.” – Allan S.

“We have worked with Brian for both the refinance of our main residence, as well as the purchase of a second home.  We appreciated the great work that Brian did for us and the loyalty we share.  Our favourite part of the process was being approved and getting the cheque from the refinance to use towards the purchase of our 2^nd property.  The overall process was great.  Happy 2012 and thanks again Brian!” – Jeff T. 

Because of the current debt crisis in so many lives right now I am pleased to announce what The Brian Marling Mortgage Team is doing to help Canadians now. Firstly, Neighbourhood Dominion Lending Centres is proud to announce the launch of EnRICHed Academy’s “Smart Start For Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way! No program like this currently exists, and the need and demand acrossNorth America is at an all-time high! Please call me if you are interested in hosting a seminar or would just like more information.

Secondly, our Financial Coaching Program is really taking off. All coaching is lead by our Certified Professional Coach and owner of Life Catalyst Coaching, Deborah Marling. Deborah can be reached through our office and would be pleased to set up an introductory appointment to discuss your needs and current situation. Deborah is helping many to get out of the debt race and turn their futures around. Here is what just 1 graduating couple had to say,

“Hi Deb I Hope all is well.  I just wanted to let you know how grateful Carl and I are for all the help you gave us.  You gave us the tools to look at our finances and get ourselves above water. Since attending your sessions it has been possible for us to obtain and do the things we want.  In the past we never had a savings account, our accounts were always into the negative.  If something happened and we needed money we were in trouble.  Let me tell you since our session’s things have happened in our family and we were able to help without using a credit card, without going into the overdraft.  Thank goodness we had your training.  From the time we started our sessions we have never been in our overdraft, we have 4 saving accounts which are growing, and our bills are paid on time. When you talk about financial freedom we see that we are on the way.  However we could not have done this without you.  I just want to say thank you for all the support and the belief you had in both Carl and I. Thanks Again.” – Lisa M.

Here at Neighbourhood, & the home of the Brian Marling Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of  FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom. If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.

Living On Less…And Surviving To Talk About It

This article is provided by Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

Blondin was a world famous tight-rope walker in the early 20^th Century. One of his more famous feats was a walk across Niagara Falls. When he arrived at the other side, as the story goes, the crowd naturally went wild with cheers and applause as they chanted his name, “Blondin! Blondin! Blondin!”.   Blondin, being a great showman, played to the crowd as he asked them , “Do you believe I can make it back across to the other side?”  The crowd went nuts and yelled “Yes,Yes”. “This time”, he said, “I am going to carry someone on my back. Do you believe I can do it?”.  At this point the crowd went into a frenzy with their positive affirmations as they couldn’t wait to see it.  Blondin then shouted to the crowd, “And who will be that person?”.  Of course the crowd became uncomfortably quiet.

Not many of us can walk a tight-rope, certainly not across Niagara Falls. However, when it comes to our finances it seems that many have risen to the occasion and quite enjoy performing the High-Wire Act. In fact, recent statistics have indicated that Canadians on average have a debt-to-disposable income ratio of 1:145. This means that for every $1.00 of disposable income we are spending $1.45. How is that even possible!! Enter the wonderful and mysterious world of banking, credit cards, buy now pay later, you deserve it all, blah,blah,blah.  Now that we are in this mess, how does one get out.?

At the risk of sounding repetitive, which is necessary until one ‘gets it’, there are a few simple secrets that I will share with you now.  From a philosophical viewpoint, which is a necessary starting point, I borrow from one of our Ancient scripts which says that the starting point is to be content with what you have. What a simple yet powerful thought.  Perhaps easier said than done especially in a culture which constantly tries to make us feel inferior if we do not have the latest, greatest, fastest, bestest whatever!  However, regardless of whatever the cultural message is, it is a choice we make to be satisfied or not. So then the starting point must be Contentment. Which is not to say that we shouldn’t strive for a better quality of life or that it’s somehow wrong to desire nicer things in life, but if we aren’t first of all content & happy where we are then it is unlikely that more will make us so. This point was driven home to me once again when I went to see the Watoto African Children’s Choir. What an inspirational display of the wonder of the human spirit. Here is a group of orphaned children whose parents mostly died of AIDS displaying the most amazing joy I have seen in a long time. What a tremendous personification of peace and contentment I witnessed. Yet who could have more reason to be discouraged, dismayed or disillusioned with life. Clearly they have chosen a different path and have obviously learned the first secret of contentment, while at the same time striving for  a better life. Not only did I find it inspirational but it also helped me to gain perspective once again.  

Next is to be aware that how much we earn is not as important as what we do with it. That is why the 70/30 Principle works no matter what your income is. What is the 70/30 Principle?  It is the next secret to successful living. The 70/30 principle goes like this: divide your after tax income into 2 parts – 70% in one pool and 30% in another. There are 3 parts to the 30% pool:  10% must go into savings, 10% must go into some kind of investment, and 10% must be given back to your church or favorite charity.  The 70% pool is for everything else – rent/mortgage, food, clothing, insurance, etc.  If you commit to this plan you will create real wealth in your lifetime. The challenge is deciding to live differently than you have been unless of course you have already arrived.

“But I’m barely paying my bills now and almost always run out of money before the end of the month.”, you say.  My response – how is that working for you? Perhaps now is the time that you decide to live differently. The concepts I have shared above are simple to follow. But I never said it would be easy. If you want what most people have then continue to do what most people do. But if you truly desire change then it must start with you.  

Because of the current debt crisis in so many lives right now I am pleased to announce what The Brian Marling Mortgage Team is doing to help Canadians now. Firstly, Neighbourhood Dominion Lending Centres is proud to announce the launch of EnRICHed Academy’s “Smart Start For Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way! No program like this currently exists, and the need and demand acrossNorth America is at an all-time high! Please call me if you are interested in hosting a seminar or would just like more information.

Secondly, our Financial Coaching Program is really taking off. All coaching is lead by our Certified Professional Coach and owner of Life Catalyst Coaching, Deborah Marling. Deborah can be reached through our office and would be pleased to set up an introductory appointment to discuss your needs and current situation. Deborah is helping many to get out of the debt race and turn their futures around. Here is what just 1 graduating couple had to say,

“Hi Deb I Hope all is well.  I just wanted to let you know how grateful Carl and I are for all the help you gave us.  You gave us the tools to look at our finances and get ourselves above water. Since attending your sessions it has been possible for us to obtain and do the things we want.  In the past we never had a savings account, our accounts were always into the negative.  If something happened and we needed money we were in trouble.  Let me tell you since our session’s things have happened in our family and we were able to help without using a credit card, without going into the overdraft.  Thank goodness we had your training.  From the time we started our sessions we have never been in our overdraft, we have 4 saving accounts which are growing, and our bills are paid on time. When you talk about financial freedom we see that we are on the way.  However we could not have done this without you.  I just want to say thank you for all the support and the belief you had in both Carl and I. Thanks Again Lisa M.

Here at Neighbourhood, & the home of the Brian Marling Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of  FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom. If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.

February 2012

“Tax Free SAVINGS Accounts”, “Overdraft PROTECTION”, and other Mis-Leading Product Names!!

This article is provided by Brian Marling, Accredited Mortgage Professional, of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

Have you ever wondered what happens when the general public is lead to believe that financial matters are too lofty and complicated for the masses to understand?  Or what happens when our school system teaches little, if anything, about personal financial management, the power of compound interest (especially when it’s working against you), how credit works, and other related things that we all have to deal with in life? I mean, just ask yourself…did you receive any practical training in these things?  I think I know your answer.  And here is the end result in my opinion – we are left to entrust these important matters into the hands of others who may or may not have our best interests at heart. 

As an example take the now familiar financial product known as the Tax Free Savings Account.  Would it interest you to know that when it was first being introduced it was presented as a Tax free Investment Account?  Hmmm, I wonder why?  Maybe because that’s exactly what it is  (i.e. an investment account and not a savings account.)  So then why call it a Savings Account?  I’m not exactly sure, but I know the big banks don’t mind since most people have been trained to think ‘bank’ when they hear the word ‘savings’.  However, did you realise that any Independent Financial Advisor can also open a TFSA for you and give you independent unbiased advise as to how to best utilize your TFSA? Also, because most have been lead to think of it as a ‘Savings’ Account, they fail to understand that it is probably the best ‘Investment’ vehicle opportunity to come along in a very long time.  Therefore, if you are thinking of it, or using it, as a Savings Account you are missing the boat.  So, what’s in a name you ask?!

Or how about the familiar banking product known as “Overdraft Protection”.  Wow, it sure sounds impressive.  Just wondering what or whom I am being protected from? Well, as it turns out, it seems they are protecting me from myself.  Sound confusing?  Let me explain.  First of all you must realise that this is tied to the above notion that financial matters are really too lofty for us and we couldn’t possibly understand them.  Having said that, let me try and explain.  Overdraft Protection is ‘sold’ to us in a ‘feel good/we’re here to help you’ kind of way.  It is essentially designed to ‘Protect’ you from yourself when you write checks on your account or have automatic payments come out of your account AND there isn’t enough money in the account to cover the payments.  ARE YOU KIDDING ME! ?? I am old enough to remember a time when that was called fraud and you could possibly go to jail….and now we have a Product for such things!!  Is this just a friendly way for your banking institution to help you.  Hardly. Check your statement to see the fees being charged and the interest being charged in order to ‘Protect” you.  God forbid we teach people proper financial management and an even basic understanding of fiscal literacy.   But why would we when we can simply create products to encourage bad behaviour and profit from it??

Once again, it seems to me, that it really boils down to a couple of simple concepts when it comes to our personal financial well being.  First and most important, and this is not rocket surgery (new phrase I like that combines Rocket Science & Brain Surgery for an even more profound emphasis) : you cannot spend more than you bring in.  Duh, tell me something I don’t know.  Well, clearly there are millions of Canadians who live like they don’t know, as we are seeing record highs in consumer debt.  Secondly, if you need help, don’t be afraid to ask.  We would love to help you in any way we can, including pointing you in the right direction if we don’t have the answers you need.

Because of the current debt crisis in so many lives right now I am pleased to announce what The Brian Marling Mortgage Team is doing to help Canadians now. Firstly, Neighbourhood Dominion Lending Centres is proud to announce the launch of EnRICHed Academy’s “Smart Start For Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way! No program like this currently exists, and the need and demand across North America is at an all-time high! Please call me if you are interested in hosting a seminar or would just like more information.

Secondly, our Financial Coaching Program is really taking off. All coaching is lead by our Certified Professional Coach and owner of Life Catalyst Coaching,Deborah Marling. Deborah can be reached through our office and would be pleased to set up an introductory appointment to discuss your needs and current situation. Deborah is helping many to get out of the debt race and turn their futures around. Here is what just one graduating couple had to say,

“Hi Deb I Hope all is well.  I just wanted to let you know how grateful Carl and I are for all the help you gave us.  You gave us the tools to look at our finances and get ourselves above water. Since attending your sessions it has been possible for us to obtain and do the things we want.  In the past we never had a savings account, our accounts were always into the negative.  If something happened and we needed money we were in trouble.  Let me tell you since our session’s things have happened in our family and we were able to help without using a credit card, without going into the overdraft.  Thank goodness we had your training.  From the time we started our sessions we have never been in our overdraft, we have 4 saving accounts which are growing, and our bills are paid on time. When you talk about financial freedom we see that we are on the way.  However we could not have done this without you.  I just want to say thank you for all the support and the belief you had in both Carl and I. Thanks Again Lisa M.”

Since Neighbourhood DLC is Canada’s Largest Mortgage Team, we can offer you the absolute best products, service, advice & pricing. Call me today,Brian Marling 905-372-7222 for a personal, private and free consultation.

Here at Neighbourhood not only do we provide Award Winning Service, and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something, then don’t expect different results.  As always you can call us anytime to discuss how we may be able to help you.

SPECIAL NOTE:  We are now located in our own building and would love for you to drop by and say ‘hello’.  Come see us at The Neighbourhood Professional Centre 9 James Street East in Cobourg – right off ofDivision Street.

HOW TO GET OUT OF THE DEBT RAT-RACE AND ESCAPE FINANCIAL PRISON!!

This article is provided by Brian Marling, Accredited Mortgage Professional, of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

I call it “financial prison” because even though we do live in the greatest country in the world, even people with good incomes, who are buying their own homes, wind up in “financial prison” instead of financial freedom . And that’s mostly because of what bankers and credit card companies never tell them – and hope you never stop and think about. Just for example, the true interest rate on most home mortgages is about 200% and no, that’s not a misprint. I said 200% because if you have a 25 year amortization you’ll pay for the home about 3 times… on a $150,000 mortgage, you’ll end up paying about $450,000 in interest!  Or what about credit card debt that most people take for granted. It can eat away your financial future like a horrible cancer. If you buy $2,000 worth of STUFF with a typical credit card and make the minimum monthly payment, you’ll wind up paying about 3-5 times what it’s worth. Do you think you can get ahead financially paying 5X’s what things are worth? Not only that, but it will take you about 24 YEARS to pay it off at that rate! That’s why ANYTHING you can do to wipe out credit card debt MUST be considered.

For many of us, and our parents, it took a while to dig the debt hole, but we dug it none the less. Today, however, our young people seem to be struggling right out of the gate. Consider this: The Average College Graduate is $23,186 in Debt!  That’s just the average – many come out with $40 – $50K in debt.  Here are some other interesting stats:

• Statistically, 6 out of 10 Canadians live paycheque to paycheque, which means if their income stopped for only one pay period they’d have to rely on a LOC or Credit Card to make ends meet 
• From 1989 to 2006, total credit card charges rose from $69 Billion to $1.8 Trillion; a 2,600% increase 
• Today the average household credit card debt is $16,007
• The yearly savings rate of an average Canadian has gone from over 12% of income in the early 90s to under 2% today
• Household debt inCanadahas more than doubled over the past 10 years
• 84% percent of college graduates inNorth Americaindicated they needed more education on financial management topics. Parents expect the schools to teach financial literacy and schools expect parents to. The fact is, most parents and teachers are ill equipped to teach students and kids on this subject and, therefore, don’t

Because of the current debt crisis in so many lives right now I am pleased to announce what The Brian Marling Mortgage Team is doing to help Canadians now. Firstly, in light of the above stats, Neighbourhood Dominion Lending Centres is proud to announce the launch of EnRICHed Academy’s “Smart Start For Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way! No program like this currently exists, and the need and demand across North America is at an all-time high! Please call me if you are interested in hosting a seminar or would just like more information.

Secondly, our Financial Coaching Program is really taking off. All coaching is lead by our Certified Professional Coach and owner of Life Catalyst Coaching, Deborah Marling. Deborah can be reached through our office and would be pleased to set up an introductory appointment to discuss your needs and current situation. Deborah is helping many to get out of the debt race and turn their futures around.  Here is what just 1 graduating couple had to say,

“Hi Deb I Hope all is well.  I just wanted to let you know how grateful Carl and I are for all the help you gave us.  You gave us the tools to look at our finances and get ourselves above water. Since attending your sessions it has been possible for us to obtain and do the things we want.  In the past we never had a savings account, our accounts were always into the negative.  If something happened and we needed money we were in trouble.  Let me tell you since our session’s things have happened in our family and we were able to help without using a credit card, without going into the overdraft.  Thank goodness we had your training.  From the time we started our sessions we have never been in our overdraft, we have 4 saving accounts which are growing, and our bills are paid on time. When you talk about financial freedom we see that we are on the way.  However we could not have done this without you.  I just want to say thank you for all the support and the belief you had in both Carl and I.”

Thanks Again

Lisa M. 

Because Neighbourhood DLC is Canada’s Largest Mortgage Team, we can offer you the absolute best products, service, advice & pricing. Call me today,Brian Marling 905-372-7222 for a Personal & Private consultation. 

Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something, then don’t expect different results.  As always you can call us anytime to discuss how we may be able to help you.

SPECIAL NOTE:  We have recently bought our own building and would love for you to drop by and say ‘hello’.  Come see us at The Neighbourhood Professional Centre  9 James Street East in Cobourg – right off Division Street.

WHAT YOU DON’T KNOW COULD BE COSTING YOU THOU$AND$!!

This article is provided by Brian Marling, Accredited Mortgage Professional, of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

It never ceases to amaze me the amount of time we spend on some areas of our lives as opposed to the amount of time we do not spend on other areas of our lives. For example, all kinds of surveys tell us that the average person spends somewhere between 6 – 8 hours a day in front of the television, but probably less than half an hour a day on average in some form of physical exercise. Or what about the amount of time we spend on planning our vacations, organizing our homes, being on facebook, programming our iPod, etc etc versus the amount of time we spend on planning our finances and securing our financial futures. In my 15+ years in the financial services industry it has been my experience that most people spend very little time in planning and managing their personal finances. Why is that?? 

The typical answer usually has something to do with “leaving it to the professionals”, and yet never in history have we had more information available to us then we know what to do with. Yet, the area of money or financial management still seems to be a great mystery to most.  Add to that our Canadian reserve and many  don’t even like to talk about it. The problem when it comes to the financial arena is that what you don’t know is likely costing you thousands.

Every week I help my clients save thousands and thousands of dollars by educating them on the things they don’t know – and I love doing it! One of my favourite expressions is, “You don’t know what you don’t know.”  So quit beating yourself up, get your head out of the sand and find out. The key here is to getting professional unbiased advice.  My business, of course, is in the mortgage arena, but our passion is in helping our clients to get out of debt as soon as possible and stay out of debt forever. Most people need help in this area for what I believe are obvious reasons.  Mainly due to the fact that we receive very little, if any, training or education in this area. Combine that with the fact that financial institutions really do not have a vested interest in your becoming debt free – think about it.

More than half of Canadians say they’re making good progress paying down their debt, still many fear it’s not enough, according to a new survey. 

Harris-Decima and CIBC polled more than 2,000 adults and found 72% are holding some form of debt. The good news is 61% say they’re making good progress repaying it with many recently making at least one lump sum payment on what they owe.  The bad news is 42% feel their debt burden is weighing on their financial goals.

The real problem in my opinion is not just the debt itself, but the feelings of helplessness when it comes to trying to figure out how we got in this mess and how to get out of it – easier to just watch TV  I suppose. Some situations are more challenging than others for sure, but the key is to at least start the conversation.  It would be my pleasure to give you a free mortgage check-up and debt analysis to see whether or not there are thousands hidden and just waiting to be unleashed.  What you don’t know could be costing you thou$and$ – wouldn’t you prefer it in your pocket as opposed to your creditor’s??

These are the kinds of things we discuss on a daily basis with our clients – hopefully before mistakes are made. As Mortgage Professionals we care about your entire financial picture and offer expert advise designed to help you become debt-free as soon as possible and on your way to creating real wealth.

Because Neighbourhood DLC is Canada’s Largest Mortgage Team, we can offer you the absolute best products, service, advice & pricing. Call me today, Brian Marling 905-372-7222 for a Personal & Private consultation.  

Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something, then don’t expect different results.  As always you can call us anytime to discuss how we may be able to help you.

At Neighbourhood, & the home of the Brian Marling Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom.  If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.

SPECIAL NOTE:  We have recently bought our own building and would love for you to drop by and say hi.  Come see us at The Neighbourhood Professional Centre  #9 James Street East in Cobourg – right off of Division Street

The January 27^th federal budget was chock full of goodies for homeowners and first-time homebuyers. Below are some highlights from the budget that you may find useful. If you have any questions, please contact your Dominion Lending Centres Mortgage Professional.

Home Renovation Credit

If you’ve been thinking about doing some home renovations, a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010 that was proposed in the new budget may help in your decision to invest in improvements to your home.

The credit will apply to expenditures in excess of $1,000, but not more than $10,000, for the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. The credit will, however, not be available in respect of expenditures for work performed or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28, 2009. Individuals may claim this credit (including expenditures made in January 2010) in their 2009 income tax returns.

Eligibility for the HRTC will be family-based. For this purpose, a family will generally be considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner, and their children who were under the age of 18 throughout 2009.

Two or more families that share ownership of an eligible dwelling will each be eligible for their own credit. Each family’s credit will be determined by their respective eligible expenditures in excess of $1,000, but not more than $10,000.

Individuals will be able to claim the HRTC on eligible expenditures made in respect of dwellings that are eligible at any time after January 27, 2009 and before February 1, 2010 to be their principal residence or that of one or more of their other family members under the existing tax law.

In general, a housing unit is considered to be eligible to be an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, the individual’s spouse or common-law partner or their children.

In the case of condominiums and co-operative housing corporations, the credit will be available for eligible expenditures incurred to renovate the unit that is eligible to be the individual’s principal residence as well as the individual’s share of the cost of eligible expenditures incurred in respect of common areas.

Individuals who earn business or rental income from part of their principal residence will be allowed to claim the credit for the full amount of expenditures made in respect of the personal-use areas of the residence. For expenditures made in respect of common areas or that benefit the housing unit as a whole (such as re-shingling a roof), the administrative practices ordinarily followed by the Canada Revenue Agency (CRA) to determine how business or rental income and expenditures are allocated between personal use and income-earning use will apply in establishing the amount qualifying for the credit.

Expenditures will qualify for the HRTC if they are incurred in relation to a renovation or alteration of an eligible dwelling (including land that forms part of the eligible dwelling) provided that the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits.

Expenditures will not be eligible if the related goods or services are provided by a person not dealing at arm’s length with the individual, unless that person is registered for Goods and Services Tax/Harmonized Sales Tax purposes under the Excise Tax Act. Any eligible expenditure claimed for the HRTC must be supported by receipts.

ecoENERGY Retrofit – Homes Grants

The new budget also proposes an expanded ecoENERGY Retrofit – Homes program, and Natural Resources Canada is currently working to finalize the details.

The new expanded program includes a $300 million increase over two years for support to property owners looking to make their homes more energy efficient. It is estimated that additional funds will extend the reach of the current program to an additional 200,000 homeowners.

Under the current program, ecoENERGY Retrofit – Homes provides home and property owners with grants of up to $5,000 to offset the cost of making energy-efficient improvements. ecoENERGY Retrofit grants apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace.

Only homes that have undergone a residential energy efficiency assessment by an energy advisor certified by Natural Resources Canada will be eligible for grants.

Detached homes, row housing, duplexes, triplexes and mobile homes on permanent foundations and some small apartment buildings of three storeys or less may qualify for ecoENERGY Retrofit – Homes grants.

The ecoENERGY Retrofit grant is based on the type and number of energy improvements that have been made and how much the efficiency of the home has been improved. The grant is based on how effective that upgrade is in saving energy, not on the cost of the upgrade.

The maximum grant one can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000. The average grant is expected to be more than $1,000 and will yield an average 25% reduction in energy use and costs.

RRSP Home Buyers’ Plan Increase

The budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

Tax Credit for First-Time Homebuyers

Also proposed in the new budget is a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence no later than one year after its acquisition.

Where the heck does it all go?” You’re looking at your T4 slip from last year… or maybe your most recent pay stub. Sure, many people wish that those numbers after the dollar sign were a little higher, but it’s the vanishing act that alarms you most. Tax time is especially sobering; you can see how much money you made… but your credit card is still maxed out and you don’t have much to show for a year’s income.

If you’re looking for the holes in your wallet, start by making a list of your debts. Are your credit cards teetering at the top of their limits? Do you make regular use of your overdraft protection at the bank? Do you have escalating tax liabilities? What about any department store cards? And – quick – what was the interest rate on those balances last month? Have you added it up? Many Canadians are startled to see how much they are actually paying to service their debt. Industry Canada, which monitors consumer data, reports interest rates for department store credit cards as high as 28%. Even competitive-rate credit cards will often run at 18% or more. And this is at a time when some mortgage rates are still tipping below 5%. Why do the banks and department stores charge such high rates? These are unsecured debts, meaning that – if you default on the debt – the lender has no easy recourse to recover the money. Not surprisingly, they charge a higher rate – sometimes a MUCH higher rate – to compensate for the higher risk that an unsecured debt represents. A house is considered a reliable security, so mortgages often offer the best rates available anywhere. Consider this, then. If you have equity in your home, you can take advantage of attractive mortgage rates to save a bundle on interest charges. Compare current mortgage rates with the rates charged on your other debts. Get some professional advice on whether it might pay to do some refinancing and roll your other debt, such as credit card debt and tax liabilities, into your mortgage. You can consolidate your debt into fewer payments, save some money on interest, and improve your cash flow. You have a few options: A secured line of credit could provide you with funds up to 75% of the value of your home, minus any mortgage debt on the home. You can look forward to a substantial reduction in the interest rate, and all you need to pay each month is the interest. You can do the math on this comparison yourself, or talk to a mortgage professional. If you are carrying credit card debt, you’ll be shocked at what you can save with a secured line of credit. You could also consider increasing your existing mortgage. If your mortgage is coming up for renewal, this is the perfect time to reorganize and consolidate your debts at today’s excellent rates. Even if you are in the last year or two of your mortgage, it may make sense to renegotiate your mortgage now and roll in your other debt at a low rate. Or, you may be able to benefit from this kind of debt consolidation through a second mortgage. Your best option – have a professional outline your options for using a mortgage to consolidate your debt and increase your cash flow.

This article is provided by Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

In some ways 1996 doesn’t seem that long ago, yet in other ways it seems like another life ago. But then, like now, there were those who were prospering financially and those who were suffering financially.  And like now, those who suffered financially usually did so in quiet obscurity struggling to make ends meet & trying to keep it all together somehow. 

One particular family was about 4 years into a stretch that lasted 5 years of less than full time employment. With 3 children aged 6 and younger it was tough to say the least just to keep everything afloat. I guess it was inevitable that the phone calls would start coming. You know the ones I mean. The ones you wished you hadn’t picked up. The ones asking when payments would be made and suggesting what might happen if they weren’t. Then if that weren’t enough, there were the letters in the mail that just never seemed to end. What great despair that started to set in when eventually the letters didn’t even get opened anymore – what was the use?

In the midst of all of this there were 3 young girls who needed to be protected from the negative fallout caused by financial pressure. Dad knew that things would turn around at some point. After all he was a man of faith and he knew God would intervene sooner or later. The girls were young enough not to notice that gifts at Christmas & birthdays were often bought at second hand shops or yard sales – nothing wrong with that. Mom would clean them up and they would be received with joy. Why did no one seem to notice? Why did no one seem to care?

One thing for certain, when money is scarce we are forced to be creative. Many nights for that family were spent playing board games, reading great stories or going for walks. Picnics and long playtimes in the park were common place. These are the things people do when they don’t have money.  Hmmm, doesn’t really sound that bad, does it?

Anyhow, on one particular outing they decided to go for a drive to a neighbouring town and visit a different park – a change of scenery does good sometimes.  It was early fall and the colours were just starting to change. The sun was shining and it was a beautiful day. They were climbing the play centre, swinging on the swings and kicking around old soccer balls. And of course mom had packed another famous picnic lunch complete with an old blanket to sit on.

As they were enjoying the picnic and the warm sun on their faces, dad happened to look up into the second story window of a hardware store across the street from the park. There hanging in the window and glistening from the sun was a beautiful purple bicycle. In fact it was a girls bike complete with training wheels already attached. The high handle bars and tassles dangling from the hand grips made it irresistible. Immediately dad had the thought that every kid deserves a new bicycle at some point, don’t they. His heart yearned to be able to just go over there and purchase it no problem. His present financial reality however didn’t allow him to go to McDonalds let alone buy bicycles.

Why he excused himself and started walking across the road he wasn’t exactly certain, but something was telling him to at least check it out up close. Up the creaky stairs he went to the second floor showroom and proceeded straight to the little purple bike. His heart started to ache and a tear formed in his eye as he realized there was no way he could afford it. Feelings of inadequacy and despair started to flood his being.  “Can I help you”, came the polite voice from over his shoulder. Oh, if only you could he thought.  When he turned around he realized it was the owner of the store speaking with him, and in the brief moment before he spoke the dad decided that he had nothing to lose by asking, and so for the sake of his little girl he did. With a quiver in his voice that came from the humbling nature of his situation he said, “I honestly can’t afford this. Is there anyway you could accept less?”

It’s hard to expect good things when you’re down & out, but what an amazing act of kindness that was shown to a stranger that day. “How much can you afford”, came the reply?  An amount was mentioned by the dad which the shop owner immediately agreed to. Wow, finally a break. A few tears started to fall – he couldn’t stop them, but they were tears of joy.  What great excitement ensued as dad came back across the street with a beautiful shiny new purple bicycle. Does anything bless a parents heart more than to see a smile of pure joy from the face of their child. What great times were had on that Little Purple Bicycle as each of the 3 sisters eventually learned to ride from the same bike. To this day that Little Purple Bicycle hangs on the wall of his garage as a constant reminder of a strangers kindness & God’s blessing.

So what’s the point of this months article?  Simply this: it isn’t, nor should it be, always about the money. Sometimes all a person needs is to be shown a little kindness.  So go today & show a stranger a random act of kindness. You will probably never know what an amazing blessing you have been. By the way, in case you didn’t figure it out, I was that father and I would like to officially say ‘Thanks’ to that kindhearted shop owner.

Here at Neighbourhood, & the home of the Brian Marling Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of  FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom. If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.

Given the current national credit-crunched lending environment and the slowing real estate market – which has shifted to a buyers’ market – coupled with lower interest rates, now is an ideal time to invest in the purchase of revenue property.

After all, although the real estate market slowdown has seen prices drop and interest rates dip, rental income has not wavered – making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

In order to take advantage of this opportunity, the key is to work with a mortgage professional who is an expert in this niche and can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decisions and feel at ease throughout each purchase.

Mortgage professionals offer an invaluable service to real estate investors because, if the mortgages on your investment properties are not set up properly from the on-set of each venture, you will not be able to get future financing – a necessity for continuing to build your portfolio of revenue properties.

Mortgage professionals who are experts in dealing with real estate investors know that a portfolio approach must be taken to ensure future financing for those looking to purchase revenue properties. An experienced mortgage professional will ask you in detail about your specific property investment goals and develop a game plan for the next five or 10 years based on these goals.

Your mortgage professional can work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals and the steps involved to get you there.

Keep in mind, however, that your plan should be revisited with your mortgage professional at least annually to ensure you’re still on track.

A team of experts

A mortgage professional who specializes in helping clients acquire revenue property is also likely to partner with other investment property experts, including real estate agents, lawyers, accountants, insurance agents and contractors, to name a few, which enables your mortgage professional to provide valuable information to you through this knowledge network they have created.

By forming ties with other trusted experts, your mortgage professional is able to provide you with a one-stop shop for meeting all of your real estate investment needs.

Your mortgage professional can also help direct you to other organizations that will offer you further insight into your real estate investment needs. If you join groups such as the Real Estate Investment Network (REIN) or even a local Rental Owners and Managers Society (ROMS), for instance, you can receive a wealth of added knowledge catered to your revenue property needs.

While REIN can provide market insight and investing tips through years of experience, ROMS helps with credit checks for potential tenants, keeps you abreast of changes to the Residential Tenancy Act and other topics/concerns often faced by landlords.

So before you begin building your revenue property portfolio, ask a Dominion Lending Centres mortgage professional what they can do to cater to all your real estate investment needs.