Sandra Riedlinger Mortgage Broker

Let's talk Mortgage Plus Improvements!

The biggest desire and challenge of home ownership is “making it your own”. New flooring, new paint, new kitchen or maybe that dream patio with a fireplace! The biggest barrier is taking the big gulp and outlaying the cash that may take years to replace in that investment fund or line of credit. Did you know there is a Mortgage Product that rolls those renovations into the overall mortgage? It’s called a Purchase Plus Improvements! Check it out: Purchase Plus Improvements Your Way to Happiness

It is amazing how different the results can be if we simply change our perspective! Let’s make the next 7 days about shifting where we need to and consciously changing perspective! Challenge out there!!! Now let’s come back and share how you changed perspective this week.

Christmas is a time to celebrate all that we love and the community that surrounds us. May your Holiday be filled with love, laughter and the gift of time with those you hold closest.

Happy November everyone. We are just 2 months to the end of 2023 and I am sure a lot of folks are feeling like it can’t come fast enough and others are feeling anxious. You know your budget is going to have to adjust. Well, you are not alone and doing a little planning ahead of your mortgage renewal is the best way to meet this challenge head on and come out the winner. When it comes to renewal-time I have three basic steps: Step One – Plan Ahead Think future first. Mortgage renewal is about planning the next 1-5 years of your financial picture, so make sure you put some thought into what your renewal needs to include to work within that picture. 1.      Do you see yourself staying in this home? If not then what kind of timeline do you see for leaving? Maybe taking a 5year closed is not a great idea if you think you will need to upsize or downsize sooner rather than later? 2.      Are there big ticket items, like a furnace or roof that need to get done in the near future? Is there wiggle room in the equity of the home to help pay for that? Perhaps a flex mortgage is a good idea? Think Financial Planning. Many people purchase a home but never really think o fit as part of their larger financial plan. We make the mortgage payments monthly and we are providing a safe place to live for our families. Your home is a much bigger piece of the puzzle: 1.      Equity built in this home is part of your future financial security, most likely a part of your retirement plan in the long term. 2.      Strategize how this investment works, interest accrual and reduction, prepayment strategies and leverage. Step Two – Start Early Think Best for You. Not all mortgages are equal, in fact most people are not even aware of how many options are available to consumers today. To be prepared you need to start looking 6 months prior to your renewal date 1.      Do not sign the offered renewal without consultation. Yes, it is convenient but how much does this convenience cost? 2.      Shop the market for a product that fits your needs. Match the product to your future needs. Step Three – Get a Mortgage Broker Your current mortgage provider has access to one product – theirs! They offer rates within their level of comfort of flexibility. Your financial picture has most likely changed over the last few years and life is moving along – Get a mortgage Broker to make sure your mortgage reflects those financial and life events. Let me know how I can help – sandra.riedlinger@mtgarc.ca

To Life insure or not to life insure- that is the question. As a mortgage broker, I understand the hesitation to add a financial commitment at a time when you are feeling stretched to your limit. Home ownership is a big deal- financially and emotionally so by the time you get asked about mortgage Life/Disability insurance, you are tapped out! This is often validated during the signing of final papers and the financial advisor says “and then we have the life/disability insurance” Usually the conversation is short and has a waiver in front of you faster than the words “no thank you” escapes your lips. In my past career path I was in pre-need sales and after-care representative for one of Canada’s largest funeral homes/cemeteries. The after-care expertise provided assistance with paperwork to the executor of the estate to ensure they had someone to ask questions of and direct them to the right resources. One of the questions I asked was “Did you have life/disability insurance on the mortgage?” Over 80% of the time the answer was “No, we signed a waiver” ☹ ·      A mid 20’s couple said no- he left behind a 3 month old baby, a 23 year old wife, no life insurance and a mortgage payment on a newly built home they had taken possession of only 6 months before he passed. ·      A mid 50’s woman left behind two adult children, no will and a mortgage payment on the only asset she owned. As next of kin they paid that mortgage until the estate was settled and they could move forward. ·      A late 40’s couple bought their forever home as a blended family, 3 years later cancer claimed the life of one partner and life insurance through work benefit was no longer applicable. The financial picture was changing dramatically. Discussing mortality is a tough conversation, no one wants to think about their potential passing when they are in the process of closing on a happy purchase. Before you say no -here is a simple question to ask yourself : ·      If one of us where to pass can the surviving spouse/partner make the mortgage payments and stay in the home without causing financial stress? If the answer is ‘No” take the Life/Disability Insurance It is really that simple. If your passing will require the home to be sold and your family to move because they cannot afford to stay without financial hardship – take the Life/Disability Insurance No matter your age, home ownership was always intended to provide for a lifetime of home security. Make sure it stays that way for your family.

Choosing the Right Mortgage Product When you are searching for your home, you have this list of things that are “must have’s” and “nice to have’s”. Things like location, number of bedrooms, kitchen size, garage or no garage, fenced yard and does it have room for the dog to run. Your Realtor uses this information to narrow down the homes he/she chooses to show you to get you as close as possible to the right fit for you and your family. Finding the home is only ½ of the equation.         Right Home + Right Mortgage = Long term Financial Success Let’s face it, making a commitment to a home is not a short-term game. You are committing to the vision of a long-term goal and for each family that goal might be different. Consideration needs to be given at all stages of the your home ownership lifecycle: Starter Homes, Renewing a mortgage, refinancing a home, buying that little fixer upper - a forever home in disguise or considering a reverse mortgage in late stages of your lifecycle to enable you to stay at home with out the financial commitment, every stage needs consideration. Mortgage questions to consider to pick the right product: ·      How long do I see myself in this home? ·      Do I want to pay this down sooner? How might I do that? ·      Is a portable mortgage important to me? ·      Can I mortgage the larger projects – like Kitchen or bathroom renos? ·      How much do I need to put down and what kind of a budget does that leave me? ·      Is this a short-term mortgage to gain equity for another property? ·      How much do I really know about reverse mortgages? Don’t commit to 50% of the the home buying process- find the home and find the right mortgage product for your life-stage and goals. Mortgages can cost thousands if the wrong decision is made so make sure you are clear about what the must-have’s and nice to have’s are for a mortgage decision. Your Mortgage Broker will appreciate it. Got questions - I can help www.sandrariedlinger.com

You might come from a big company, a small compnay or maybe you own the company and work all by yourself. No matter what your story there have been many people, who have contributed to your success. I think Thanksgiving is the perfect time to Stop - Drop your shoulders- Breathe -Reflect. We all have a story and the characters we share it with are the people we can be truly grateful for. To everyone in my network, I am truly grateful for your comments, your likes and the knowledge you share along the way. If I were to pick one experience/person who left a positive impression and shaped the way I think about my business it would be Yves Millette, who at the time was CEO Intuit Canada. He asked great questions, challenged my thinking and gave me the tools to create a vision. When ever I think of my goals I always ask myself "How will I know when to throw the party?" I will never forget the importance of measuring and celebrating success. Who taught you something that, even today you are truly thankful?

How many of you are struggling to save at least 5% down and sweating about whether or not you could even qualify for a mortgage? If this is you, I can 100% say you are not alone. I get calls everyday from people who worry – just like you. Down payment is a pillar to home ownership, lenders want to know that you have some equity in the property and that you have made an effort to put aside/save each month to achieve the goal. There are a couple of ways to save: Budget Monthly to Save In a perfect world 10% of your monthly income should be put aside in savings – money you can use of needed for a lot of reasons. Can you take daily coffee at Starbucks out of your budget? Average coffee $6 x 5 days a week x 4 weeks a month = $120 per month in savings. It is a start. Not sure if this will work read The Latte Factor by David Bach – It works! Top up Savings Account This is simple solution to add quickly to the savings pool. Set up a top up savings account in the app for your primary bank account. Have the system automatically round up to the nearest dollar and put the difference into the top up account. RRSP Account RRSPs are a great way to save and get interest over time and leverage for the downpayment on a house. Take your monthly savings and put it into an RRSP. If you have an employer with a matching program that significantly increases your RRSP savings amount. Let’s say you put 5% of your monthly wages into an RRSP savings and your employer matches that and contributes 5%. That is 10% savings per month (Best Practice). If you are a first-time home buyer you can withdraw, with no tax implications up to $35,000 from RRSP to put as a down payment for a house. You save the tax hit by agreeing to pay back the amount you withdrew over 15 years. You get the house with a good down-payment, your Retirement savings fund is still safe a secured so win all around! Home ownership is a marathon – not a sprint. The first step is committing to start saving, then build your team of professionals to guide through the process. Make your Mortgage Broker the first member of your team…You got this!

Food and housing security are important for our future generations. Education is an important part of the puzzle for success.