March 2011

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

Let me start off this month by stating unequivocally that I am not against purchasing new vehicles… WHEN YOU CAN AFFORD IT. Ahhh, there in lies the determining factor from my perspective – affordability.  And how is a car related to your mortgage?? Read on.

The question of whether it’s better to lease or buy a vehicle is a common dilemma. And do you buy or lease a new or used vehicle? The answer depends on the specifics of your situation.

It’s important to realize that many consumers overburden themselves with car leases or loans they simply can’t afford (despite what you were told). While most of us require a vehicle to get to and from many destinations throughout the course of any given week, we don’t need a high-end vehicle to serve this purpose. And if it’s about the new car smell, well get over it – they make spray for that now.

Leases and purchase loans are simply two different methods of automobile financing. One finances the use of a vehicle while the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.

When making a lease-or-buy decision, you must, therefore, look at your financial abilities in terms of your debt ratios. And if you’re unsure about how leasing or purchasing a vehicle will affect your ratios, it’s best to call me prior to making your decision.

When you buy, you pay for the entire cost of a vehicle, regardless of how many kilometres you drive. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company based on your credit history. Later, you may decide to sell or trade the vehicle for its depreciated resale value.

When you lease, you pay for only a portion of a vehicle’s cost, which is the part that you “use up” during the time you’re driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments, and you pay a financial rate, called a money factor, which is similar to the interest on a loan. You may also be required to pay fees and a security deposit. At lease-end, you may either return the vehicle or purchase it for its depreciated resale value.

As an example, if you lease a $20,000 car that will have, say, an estimated resale value of $13,000 after 24  months, you pay for the $7,000 difference (this is called depreciation), plus finance charges and possible fees.

When you buy, you pay the entire $20,000, plus finance charges and possible fees. This is fundamentally why leasing offers significantly lower monthly payments than buying.

Another option is to save and pay cash for a good used vehicle. Many can be purchased now for under $10,000. This is my personal preference – to own outright with no payments. I have better things to do with my money than make payments on a depreciating so-called asset that will always lose money and never recoup the original cost.

What does this have to do with my mortgage?

One of the keys to remember when you’re looking to purchase a home and obtain a mortgage or refinance an existing mortgage is that, if you overspend on a vehicle, it affects your debt ratios and may restrict or negate your mortgage financing ability. I have seen this numerous times where people have simply overspent on vehicles. If your gross income is $35 or $40 thousand a year, why would you be driving a vehicle that costs $40-45 thousand dollars?? Does that make any sense at all? Long after the thrill is gone those $500 dollar payments just keep on comin!

And here is where it really costs you…it’s called opportunity cost. Because you have overspent on vehicles you may be unable to take advantage of todays awesome mortgage rates because your TDS (Total Debt Servicing ratio) is too high.. All of your debt payments go into the mix when lenders look at financing or re-financing your home. Depending on your gross income and the amount of equity in your property, if your car payments are too high they may be keeping you from much better mortgage rates which would possibly save you thousands in interest costs.

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.

June 2011

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. 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.

June 2011

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

Ahh…it’s a favourite daydream of working Canadians: to go into business for yourself! For some Canadians who are self-employed, their situation is the consequence of corporate downsizing. For others, it is a carefully planned decision to leverage their knowledge and experience for themselves and improve their own bottom line.

Typically a very innovative and energetic bunch, the self-employed now comprise approximately 18% of Canada’s total workforce. We like to imagine that these are the lucky folks who are living their entrepreneurial dreams. But talk to self-employed Canadians about getting a mortgage and many will tell you that the dream can have downsides.

These individuals – who may actually be more financially successful than ever – often do not fit traditional bank lending criteria. It can make mortgage shopping a frustrating and, for some, a humiliating experience. Without an established stream of pay stubs from an employer, lenders have none of the traditional assurances that you can meet your mortgage obligations. You may be expected to undergo a long and complicated process to prove your ability to service your debt.

Lenders want to verify your employment and your income – not a simple task for someone who is self-employed. Lenders are also looking ahead; they will want some evidence that payments can be made for the life of the mortgage – not just over the next year. Most frustrating of all, small business owners are usually expected to provide detailed financial statements for their business for the past two years. And what picture do those statements paint for the lenders? An astute business owner with a good accountant will work hard to minimize taxable income for the business: a smart financial management strategy. But when lenders plug those figures into their lending formulas – they may conclude that you are a high-risk borrower.

The problem is not with the self-employed as a category; it is with lenders’ traditional criteria, and their inability to reflect the different income environment of a self-employed homebuyer. Thankfully, the lending landscape has adapted to this market need.  Certain lenders through the mortgage broker channels have designed mortgage products precisely for this very attractive market segment. Naturally, the lender will still need to assess risk, but the criteria are tailor made for the self-employed and essentially take a common sense approach to the definition of income.

You could qualify for your mortgage based solely on what you state your income to be, and after confirmation that your lending ratios, credit and tax liabilities are in good order it can be that quick, that easy! As more lenders enter this market niche, you’ll find that not all products are equal. As a group, the self employed often delegate to other professional service providers and this is a situation where you may want to seek advice from a professional mortgage consultant so you get the best mortgage for your needs. For the self-employed – who build their own success on understanding the needs of their customers – the new mortgages designed for them are good business. And they’re also welcome news to the growing number of Canadians who are building their own success in their own way. You don’t have to feel like a second class citizen any longer.

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.

January 2011

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

I would like to ask you a question… when it comes to all things financial, whether we are talking about Mortgages, Insurance or Investments, who really has your best interests at heart? For most people today life is extremely busy. Often in a household both spouses/partners are working, the kids are involved in numerous extra curricular activities and it seems like we are going 10 different directions at the same time! We can barely get our heads above water long enough to take a breath and a day off or a ‘down day’ is a foreign concept. It’s a real challenge to juggle schedules and maintain any kind of balance in our lives these days. 

On top of all of that we need to manage our financial lives, which has become a critical issue in these times of uncertain economic conditions. So, when it comes to making financial decisions regarding mortgages, insurance, investments, managing debts, etc most do not have the time or expertise to sift through the myriad of choices and options? Take mortgages for example. There are literally hundreds of different products with various options and possibilities. So, how do you decide what is best for you and your family?  Most people, unfortunately, simply settle for the path of least resistance which is probably dealing with whichever lender they are currently with. After all, who has the time and knowledge to visit 10 different lenders and be able to compare all the nuances of the different options and rates? So how do you really know if you are actually getting the best possible scenario for your family? The answer – you don’t!

That’s where an Independent Advisor comes in. Common sense alone will tell you that when you deal with an Independent Advisor, who is NOT an employee of any financial institution, you are going to get the best unbiased advice there is. And guess what – contrary to what some would have you believe, most Independent Advisors do NOT charge you a fee for their services.  Whether you are talking mortgages, insurance or  investments an Independent Advisor has access to many companies products and services and will place your business where it makes most financial sense for you, and not the institution.  This is because an Independent Advisor works for you and NOT for any financial company or institution.

When it comes to mortgages for example, any one lender can only offer you something from their own mix of products. If they do not offer what you need or you do not fit in their box then too bad. Worse yet, what if a better solution exists from a different lender but you simply aren’t aware that it is even available? I don’t think the bank on one corner is going to send you across the street, do you?

Whether you realise it or not,  financial institutions certainly have an agenda. The problem is that you & I are not very high on that list.  We all know lots of lovely people who work across the counter at these institutions, but they must operate under the umbrella of large corporations. And who are these corporations accountable to? You and I as their customers?  No – they answer primarily to their shareholders.  And shareholders are primarily interested in profits. Now I do not have a problem with any company making a profit – how else would they stay in business. The problem for you and I when dealing with only one alternative is in the not knowing whether or not we have actually received the very best solution. Maybe we have, but maybe we haven’t.

Also, have you considered that they really don’t have a vested interest in our becoming debt free. Their very existence is dependent on our remaining in debt. And for how long?  Answer – as long as possible. 

My intention here is not to bash any particular lender. In fact, as far as it goes with my clients, if your current lender is the best possible solution then that is where we will place your mortgage – no question. Interesting to note however is that very few actually end up staying at the same place, which only underscores the fact that there are way more options for you than you probably know.

When you deal with an Independent Advisor like The Brian Marling Mortgage Team we work for you and nobody else.  Also, as part of our mandate, we will work closely with any of our clients to help them become COMPLETELY DEBT FREE including their mortgage.  In most cases this can be accomplished in under 10 years. We actually demonstrate this on paper at our Financial Fitness Seminars, the most recent of which was held on January 12^th .

It’s a new year so why not give your finances a fresh start. If you would like an unbiased and independent assessment of your mortgage and debt situation then please give me a call.  And I promise you won’t be disappointed.

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.

September 2010

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

One of the ongoing discussions I have with many of my clients centres around the idea of reverting back to a cash based budget, or what I like to call a cash based Spending Plan (don’t like the ‘B’ word).  I suppose the idea of reverting back depends on the age of the person I’m speaking with, since many of my clients have never been on a cash based plan.  The alternative to cash of course is credit, and lately, we are told, the trend is starting to change.

In fact, according to recent surveys, more people paid cash this past holiday season to keep spending on track and reduce or eliminate post-holiday debt.  Bryan Eshelman, managing director at Alix Partners comments that, “Consumers are looking for discipline in their spending levels that they can achieve from using cash.”.

Often those struggling with high consumer debt are told to ‘cut up the cards & pay cash’, but that is now becoming a more wide spread philosophy. The cash vs credit card debate has also become popular in the media & with well known financial experts like Dave Ramsey and Gail Vaz-Oxlade who recommend  a more regimented approach to budgeting using envelopes or jars so people can literally see what they are spending – personally I prefer envelopes since they take less space.

Even well known Suze Orman has recently launched her  ‘Back to Cash Movement’ as she urges her television audience to only pay cash for a week or month or more and get “connected” to their finances again.

I have been ‘preaching’ this for years (maybe I can get a TV show) and it is refreshing to see it coming from the main stream now. Perhaps we are finally beginning to admit what the psychologists have known all along and what the bankers hoped we would never realize, namely that when we use credit or debit we are far more likely to over-spend.

Cash has it’s advantages. The thinking behind the strategy is simple: living beyond our means is a recipe for financial disaster, and credit & debit cards make it too easy to spend. Keep in mind also, that you are usually spending money that you haven’t even earned yet! Research has shown that parting with cold hard cash in our hands  is harder to do and the visual/physical reminder makes us think more carefully about our purchases.

One of the illustrations I like to share with my clients in an effort to help them change their thinking about credit use goes like this:  if you have only a $500 balance on a card that is charging 18% interest and you are making minimum payments it will take you almost 7 Years to pay it off.  Usually I will ask them to guess before I tell them how long it will take and normally they are shocked at the answer.  However, what about a more realistic scenario where the debt is more likely to be 10, 15 or 20 thousand dollars.  A little more scary for sure.

Neither experts nor consumers are going to unanimously agree that either cash or credit cards are better. Perhaps a combination of both works for some. So then, what to do? If your current strategies are working for you, there’s no need to change simply because it’s the thing to do. However, if a change is warranted then you may want to try something new. Give the cash only strategy a try and see how it goes.

Regardless of whether you use cash or credit or both, the bottom line remains the same: if you don’t have the money in the bank, you can’t afford it.

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. Our next scheduled seminar will be Tuesday, September 28^th at 7:00 P.M.  If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.

Thanks to Elizabeth Rogers at 50Plus for some of the references in this article.

February 2011

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

On January 17th, Finance Minister Jim Flaherty announced adjustments to the rules for government-backed insured mortgages that will come into force March 18th, 2011.

The new measures will

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value (LTV) ratios greater than 80%
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes

Additionally, on April 18th, 2011, the government will withdraw its insurance backing on lines of credit secured by homes, such as home equity lines of credit (HELOCs).

By paring back the maximum amortization from 35 years to 30, qualification will become harder for some borrowers – particularly first-time homeowners – as mortgage payments will increase. It’s hard to imagine that, not so long ago, Canadians could amortize their mortgages up to 40 years with zero down payment mortgages.

This is the second time in less than a year that the refinancing maximum was reduced – meaning Canadians can access less of their home equity. The first reduction from 95% of the value of your home to 90% came into force in April 2010. Now, as of March 18th, 2011, the second reduction will bring maximum refinance levels down to 85%. By reducing the refinancing LTV to 85%, borrowers are losing options. One of the most effective ways that mortgage professionals can eliminate high-interest, unsecured consumer debt and over extension is to retire this debt by refinancing at today’s low interest rates.

This change will mean that fewer borrowers can consolidate high-interest debt such as credit cards and other unsecured loans into their mortgage at today’s low rates. This may force homeowners who are experiencing job loss, illness, separation, divorce or urgent unforeseen family crisis into having to sell their homes to gain access to their very own equity.  With these two reductions in the maximum refinance amount (totalling 10%) in less than a year, on a $300,000 home, that’s a difference of $30,000 homeowners can no longer access.

Government needs to take a hard look at unsecured debt, specifically credit card issuers. Canadians’ biggest financial struggles, their over extension and record debt levels, are not due to their mortgages (again, we have the lowest mortgage default in the world). They are due to easy access to high-interest credit cards and other unsecured debt.  3-4% mortgages are not the problem – perhaps 25-29% credit card debt is the problem!!

With interest rates sitting at all-time lows – with nowhere to go but up – and looming mortgage rule changes, now is the perfect time to act to refinance your mortgage to pay off bills or free up more cash flow, or purchase a new home.

Now more than ever it’s important for Canadians to practice financial responsibility, as options for reducing high-interest debt payments are increasingly being limited.

It’s a new year so why not give your finances a fresh start. If you would like an unbiased and independent assessment of your mortgage and debt situation then please give me a call.  And I promise you won’t be disappointed.

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. Our next one will be in March.

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

In today’s economic climate of tighter credit requirements and increased unemployment rates taking their toll on some Canadians, there’s no doubt that many people may not fit into the traditional banks’ financing boxes as easily as they may have just a year ago.

Your best solution is to consult your mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery. Either way, there are solutions to every problem.

Mortgage professionals, like Brian Marling,  who are experts in the credit repair niche can help credit challenged clients improve their situations via a number of routes. And if the situation is beyond the expertise of a mortgage professional, they can help you get in touch with other professionals, including credit counsellors and bankruptcy trustees.

 If you have some equity built up in your home and still have a manageable credit score, for instance, you can often refinance your mortgage and use that money to pay off high-interest credit card debt. By clearing up this debt, you are freeing up more cash flow each month.

In the current lending environment, with interest rates at an all-time low, now is an ideal time for you to refinance your mortgage and possibly save thousands of dollars per year, enabling you to pay more money per month towards the principal on your mortgage as opposed to the interest – which, in turn, can help build equity quicker.

Following are five steps you can use to help attain a speedy credit score boost:

1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so you’re only using 40% of your limits. Revolving credit like credit cards seem to have a more significant impact on credit scores than car loans, lines of credit, and so on.

 2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.

3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders may view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you.

Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards.

The best bet is to pay your balances down or off before your statement periods close.

 4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. You should use these cards periodically and then pay them off.

 5) Don’t let mistakes build up. You should always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

 If, however, you have repeatedly missed payments on your credit cards, you may not be in a situation where refinancing or quickly boosting your credit score will be possible. Depending on the severity of your situation – and the reasons behind the delinquencies, including job loss, divorce, illness, and so on – your Neighbourhood Dominion Lending Centres mortgage professional can help you address the concerns through a variety of means and even refer you to other professionals to help get your credit situation in check.  

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

Yes, really!  Now I know that on the surface it may not seem like that is true, especially according to a recent statistic  that says on a National  level every Canadian citizen (from infant to senior citizen) owes approximately $42,000.  That number is a per capita share of our collective Canadian consumer debt which has skyrocketed to north of $1.3 Trillion dollars – yes TRILLION!!

So then, how can I say that most people do not have a money problem? Because it is my firm belief that what most people have is in fact a Spending Problem.  The list of contributing factors is long: we live in a society that breeds entitlement; availability of credit is far too easy; many people are financially illiterate (i.e. do not understand basic financial concepts or financial management); etc.  But the number 1 reason for our spending problem, in my opinion, is that we simply will not exercise any form of self-discipline or self-restraint.

We are really good at “spending money” we haven’t yet earned. The reason I put quotes there is because most are not actually spending cash but rather using some form of plastic and hoping or assuming that some how the money will be there. The reality for many is that the money runs out before the month does.  And guess what, it doesn’t seem to matter how much money you make – I see the same scenarios with people who make $50,000 a year as I do with people who make $150,000 a year.  That fact alone tells me it is a spending problem and not a money problem.

Now it probably doesn’t help that most lenders will give you just enough to hang yourself.  After all is it really any secret that banks are in the business of making profits and satisfying share holders. Therefore, the deeper they can put us in debt and the longer they can keep us there the happier they are.  They seem to know that we have an innate inability to say ‘No’. However, at the end of the day that is still no excuse – when will we stand up and take personal responsibility?

So if it really isn’t a money problem and we can’t blame anyone but ourselves, what are we to do? Start with educating yourself. Libraries and book stores are full of excellent resources on personal financial management and debt reduction strategies – by the way did you know that most millionaires are avid readers.

Track all of your spending for a full 30 days. Most people have no idea where the money went. “It just seemed to vanish” is an oft quoted phrase. If that seems like too tedious a task then carry on the way you are going. However, you can’t plug the leaks until you know where the holes are.  

Try going to a cash only budget. That alone will save you hundreds if not thousands of dollars. Why? Because it is a proven fact that you will spend less when using actual cash as opposed to credit or debit. In fact, recent university studies have shown that the pain centre in the brain is activated when you pay cash for things and NOT activated when you use plastic. Wow. Even our sub-conscious mind can help control spending.

Those are just a few suggestions. For those of you who are serious about getting a handle on your debt you may be interested in one of our seminars that we offer thru our business (see details below).  Among other things we demonstrate how you can become completely debt free including your mortgage in 10 years or less for most people. There’s the challenge – hope you pick it up.  Don’t forget…it’s really not a money problem.

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. Date of the next seminar is Wednesday January 12, 2011.