Welcome to the December issue of my monthly newsletter!

As we near the end of the year, you are probably thinking about your plans for 2021. Scroll down for some great resolutions for your home, and tips on how to make your finances work for YOU in the New Year. Plus, I have included some great holiday party tips to make yours a roaring success!

Thanks again for your continued support and introductions!

 

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Making Your Finances Work For YOU in 2021

After the whirlwind year of 2020, making your finances work for you is already top of mind for Canadians. Why not roll that into a brand-new resolution moving forward into 2021? Here are some ideas to make your finances work for YOU in the New Year:

 

Start a Budget

If you don’t have a monthly budget already, this is the first step in financial awareness. Knowing how much you make per month – and what you spend it on – can help you better manage (and even eliminate) your expenses and free up funds for things that matter.

Purge Expenses

One of the best goals you can have for the New Year, is cutting out all those things that didn’t work the previous year – this can include expenses. While we are not referring to your water or electricity bills, there are still many ways you can cut down on costs. For instance, have you recently looked at your phone plan? Consider decreasing services or comparing costs to get a cheaper plan with the same functionality. Are you someone that buys coffee each morning or goes out for lunch once a week? Consider where and how you spend your money to determine areas to reduce costs!

Make a List of Goals

Once you have made your budget and reviewed your existing expenses for any opportunities to reduce costs, the next step is to make a list of goals! For some people this will include paying off that credit card or loan, but for others it could be saving up for a family holiday you want to take in the next 5 years. Whatever your goals are, be clear about them!

Consolidate Your Debt

Are you dealing with multiple debt sources? From a car loan to a credit card bill, having multiple payments each month can add up and quickly become more than you can manage. If you are struggling with lofty bills and hefty interest rates on your credit cards or other bills, consider consolidating your debt into your mortgage for a single, monthly payment – typically at a lower interest rate!

Pay Fast, Buy Slow

Some great advice when it comes to managing your finances is to pay fast and buy slow! If you pay your bills as soon as they come in, versus waiting, you will have a better idea of where you stand financially at any given moment. You will also avoid any late fees or compounding charges. In coordination with this, you will also want to start buying slower and working to reduce any impulse spending.

(Optional) Increase Your Income

While it may not seem possible, it can’t hurt to look for ways to increase your income in the New Year. Look for promotion opportunities at work, discuss a potential raise or even consider a new job to ensure that you are financially covered!

 

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New Year Resolutions for Your Home

Your finances aren’t the only thing that has room for new resolutions in 2021! Consider these great ideas to make your home feel brand new come January:

 

Purge Your Space

While most people think about purging when Spring comes around, the end of the year really is no better time. While cleaning your home is common around the holidays, purging takes that a step further. Make it part of your New Year’s resolution to purge your home of all the things you don’t need. It may seem daunting at first, but most of the decisions are already made. Look around your home and really catalogue those items you didn’t use in 2020 (or 2019!) and make it your resolution to finally get rid of them. Go room-by-room to ensure the purging remains manageable and you get the most out of the process!

Donate What You Can

Following up on purging your home, this is a great time to donate old items. While purging, make two piles – one for garbage and one for items to donate. During this time of year, those in need can use your help the most! So, while you’re purging, reconsider tossing out old items and instead donate them to someone who would benefit.

Make Sure You Are Safe & Sound

A clean house is only half the battle – you also need a safe one! While your home is going to look fresh and organized after you’ve finished  purging old items from the year, now you will want to put some effort into ensuring safety. Check fire detectors and fireplaces, as well as investigate radon and carbon monoxide also (the hardware for these tests are not particularly expensive). This is a good time to check ventilation as well!

Shrink Your Bills (and Your Carbon Footprint)

Some people think the only way to “go green” these days is buying a hybrid car – but your home is a great place to cut energy too! Everything from switching off the lights when you leave a room, to dialing down your air conditioner and heating, to installing LED bulbs and energy-saving showerheads or toilets, can help you save in the long run and ensure your home is more energy efficient for the New Year!

Plan Out Home Improvement Projects

Heading into the New Year is a super fun time to plan out future home improvement projects! They don’t even have to be on the docket for 2021, but this is a great time to re-evaluate your home for any changes or additions you want to make in the coming years – and to start saving for them now.

 

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Holiday Party Tips!

With the holidays closing in, a lot of us are thinking about hosting holiday parties. While things will look a little different this year, that doesn’t mean you can’t have fun! Whether you’re just celebrating with your household, or hosting a virtual gathering, preparation and ambience are everything.

Here are some tips to create that special holiday feeling:

 

Make a List

While you might not be hosting for 50 people this year, that doesn’t mean that preparations go out the window! The mark of a good holiday celebration is planning, planning, planning! Ideally, you will want to make a list of everything you need before you get started. From food to drinks to decor, having an idea of what you need in advance will make it much easier to get everything in one go. 

Send Out Invitations

If you are hosting a virtual gathering, make sure to send out invitations as soon as possible. This can be a simple e-mail to friends or family with a link to join in or a fun e-card! 

Prep Food in Advance

When it comes to food, simple is best and whatever you can prep in advance is better. With a smaller invitee list, you can easily get away with simple finger foods. From shrimp or tuna rolls to spinach dip and bread to veggie trays or cheese and crackers, the options are endless and don’t have to require hours of prep time. 

Sweet and Simple Decor

 When it comes to the holidays, there are endless options for decor. From traditional red and green to silver and gold or silver and blue, the best choice is one that fits your tastes. Even if you cannot host your entire neighbourhood, that doesn’t mean you can’t enjoy that holiday feeling! A few key pieces here and there, such as a large wreath and centerpiece for the table can go a long way. 

Manage the Mood

To help create a cozy, holiday mood you might consider turning off your overheads and using candles to give off a warm glow and cozy scent. Music is another important factor; try mixing traditional holiday tunes with modern favourites to create the perfect feel, without back-to-back tracks of “Rudolph the Red-Nosed Reindeer” and “Feliz Navidad”.

Welcome to the November issue of my monthly newsletter!

The holidays are just around the corner, as is the new year! With that, now is a great time to start planning for a debt-free holiday and thinking about winter-proofing your home! Plus, all you need to know about fixed vs. variable rate mortgages heading into the New Year.

Thanks again for your continued support!

Fixed vs. Variable Rate Mortgages

If you are new to the world of mortgages, you probably have a lot of questions – such as whether to choose a fixed-rate mortgage or variable -rate mortgage. Even experienced homeowners can sometimes struggle with this and may wonder if they made the right choice or if they should switch.

Before we get to that, let me explain the differences between fixed and variable-rate mortgages. A fixed-rate mortgage is just that – a fixed amount of interest that you would pay for the term of the mortgage. A variable-rate, on the other hand, is based on the current Prime Rate and can fluctuate depending on the markets. Fixed rates are typically tied to the world economy where the variable rate is linked to the Canadian economy.

Why Consider a Fixed-Rate Mortgage?

 First-time home buyers typically love the stability of a fixed rate when just entering the mortgage space. The pros of this type of mortgage rate is that your payments don’t change throughout the life of the term. However, should the Prime Rate drop, you won’t be able to take advantage of potential interest savings. Adversely if prime increases your fixed rate and payment are protected against the hike.

Why Consider a Variable-Rate Mortgage?

Variable-rate mortgages are based on the Prime Rate in Canada. This means that the amount of interest you pay on your mortgage could go up or down as the economy fluctuates. When considering a variable-rate mortgage, some individuals will set standard payments (based on the same mortgage at a fixed-rate), this means that should Prime drop and interest rates lower, the are paying more to the principal as opposed to paying interest. If the rates go up, they simply pay more interest instead of direct to the principal loan. Other variable-rate mortgage holders will simply allow their payments to drop with Prime Rate decreases, or increase should the rate go up. 

If you are presently considering converting your fixed-mortgage to a variable-rate mortgage, it is important to consider potential penalties. If you are currently up for renewal, you should have no issues with switching your mortgage, but it is always important to check your contract before making any changes that could “break” the mortgage. Penalties are determined differently depending on your current rate and term and the lender you signed with.

What about the economy!

If the recent economic instability has you worried, and you want to change your variable-rate mortgage to a fixed one, the penalty will likely be equal to three months worth of interest payments. For those of you who are looking to take advantage of the decrease in interest rates, and want to switch your fixed-rate mortgage to a variable-rate one, you will likely be looking at an Interest Differential Penalty. Depending on your mortgage amount, this may be a small price to pay to achieve a lower interest rate and reduce your payments.

Regardless of whether you are leaning towards fixed or variable, or want to change your mortgage, it is always a good idea to review your mortgage contract and finances before making any changes. I would be more than happy to discuss your current financial situation and review all the options with you to ensure you are making the best choice for your future.

 

How to Enjoy a Debt-Free Holiday

The holidays are coming up! As much as these celebrations bring us joy and harmony, they can also bring us stress. This is particularly true when it comes to your finances! However, don’t lose hope that this will be another draining year on your pocketbook. In fact, with a little planning, there are a few ways you can make sure your holidays are stress and credit-free.

Manage Your Expectations:

Did you find the holidays refreshing last year, or were they somewhat draining and you’re still trying to figure out how to pay off your credit card bills? If you are someone that wants your holidays to be energizing and provide that feeling of togetherness, there is more to it than just spending money. Once you decide your expectations, it becomes easier to work towards things that create that result.

Determine Your Holiday Goals:

Are you looking to plan an extravagant black-tie party or have a more low-key celebration? Maybe you just want to hang out with lots of family and friends and enjoy some good food? Or maybe you usually getaway and are finding yourself homebound this year. No matter how you normally spend your holidays, sharing your thoughts with the family will help determine your goals and come to a decision that works for everyone!

Create a Budget:

Once you have decided your expectations and goals for the holiday, it is time to create your budget. A little planning can go a long way to creating a credit-free holiday and will help you spread out the costs. The first step is to create a list of everything you need, from individual gifts to decorations to baking ingredients and meal items to clothing!             

Start Now:

Early planning can make all the difference when it comes to the holidays. Instead of lumping your entire budget into a couple of paychecks, try keeping an eye out for gift ideas and cute decor all year long. While it may be too late this year, it could be a good strategy to try for 2021! Starting early will help reduce stress and give you more opportunities to scoop up incredible deals throughout the year, which means you can spread your budget even farther!

Accept Help:

While I know many of us try to do everything during the holidays so our families can just enjoy themselves, it is important to remember that the holidays are a time when we are supposed to support each other, and celebrate together! If you are hosting a dinner this year, don’t be afraid to ask your family to bring appetizers or drinks. If you are buying gifts for friends, set a limit or challenge everyone to make something by hand! Homemade gifts can often feel more special and it creates a fun exchange for you and your friends. There are many incredible ways to reduce stress and help get others involved so that the holiday is perfect for everyone.

It is easy to get caught up in the consumerism and expectations of the holidays. Is dinner perfect? Did you buy enough gifts? Did you invite everyone? Is everyone happy? But don’t forget yourself in your efforts to please others.

Even though the holidays can feel hectic, it is important to celebrate YOU and be grateful for what you have – even if you weren’t able to check off all the boxes. Life happens, but the most important thing is that we celebrate when we can.

The holiday is YOURS, so make sure you spend it whichever way brings you the most joy – and the least amount of stress on your pocketbook.

 

Winter Proofing Your Home

With the changing of the seasons, it can be a good time to take stock of your home and ensure you are ready for the colder weather. To help you feel more comfortable, save on bills and prevent future repair costs, there are some simple things you can do to prepare for the coming season. Tending to minor problems yourself, or booking a professional now, will save you time and aggravation later when poor weather makes it harder to tackle home maintenance jobs.

Service Your Heat Source:

Before Winter starts, be sure to have a professional check and clean your heat sources. You should have your chimney cleaned out if using wood heat or make sure to update your oil heater’s filters and service gas furnaces regularly. 

Check Your Pipes:

Checking pipe joints for leaks that could cause rot and damage will save you trouble in the future. Repair any cracks you find, especially those around electrical outlets and alarm system lines. You can also consider foam pipe insulation, which is fairly easy to install and could help prevent energy loss and potential water damage from frozen pipes.

Mind the Gaps:

Search exterior window frames, doors and siding for cracks and gaps where water could get in. Doors and windows commonly have gaps that let cold in and heat out. Some will be easy to fill or fix yourself but could save you money and damage down the line! 

Insulation is Key!

On a snowy day go outside and look at your roof; you should see snow on the roof. If you can see your roof that means the attic is not insulated well and heat is escaping and melting the snow. If this is the case, you will want to have it repaired and packed to ensure you are not losing excess heat during the winter months.

Create a Storm Kit:

A storm kit is a handy source of essential items in the event of losing power. Consider what you and your family might need, such as a flashlight with new batteries, candles, matches, a portable radio, water and snacks. Keep your kit somewhere easy to access!

Welcome to the October issue of my monthly newsletter!

It is hard to believe it is already October. With the holidays closing in fast, many of us are already thinking about our budgets. Check out our tips inside to help you budget for the holidays! Plus, we have included a few ways to save on heating costs this winter. Coming up for mortgage renewal? We have covered that too!

Thanks again for your continued support and introductions!

Renewing Your Mortgage 101

If you are coming up to your mortgage renewal date, you may have already received a letter from your lender. Typically, these are sent out when there are 3 months remaining on your term. While nearly 60 percent of borrowers simply sign and send back their renewal, did you know that this is actually the best time to shop around for better rates and options?

Most standard terms are 5-year terms and, with that much time has passed since signing, the market rates could be very different once the term is up! Despite this, lenders tend to provide higher rates on renewals versus new clients as they are hoping that the ease of renewal will prevent you from seeking out new rates. However, shopping around for a better rate is not as difficult as it sounds – especially with the help of a mortgage broker – and you could end up saving hundreds a month, depending on your situation!

Keeping track of your mortgage

Ideally, you should be keeping track of your own mortgage term end date as shopping for a new rate between four and six months before your expiry will ensure you are able to find the most affordable option for you.

After shopping around, you may find that your bank is actually offering a great rate – in which case you can simply submit the renewal. On the other hand, if you are able to seek out a lower rate, you will be glad you put in the effort to find out! It is also good to note that renewal time is a great opportunity to make an extra payment on your mortgage if you are able.

Up for maturity, maybe it’s time to switch lenders

Beyond renewing your mortgage, homeowners also have the option to transfer or switch the mortgage when the term is up. While this can be done any time throughout the course of the mortgage, there may be penalties associated with changing the mortgage before the term is up as this is considered breaking the contract. Transferring to another lender is generally done to get a better rate, but you will need to go through the entire mortgage process again – including the ‘stress test’ – which makes shopping around at renewal time an even smarter option.

If your mortgage is coming up for renewal and you want to find out if there is a better mortgage product with lower terms out there for you, contact me today! I can help you find the best option for where you are at in your life now and help you to ensure future financial success.

 

Budgeting for the Holidays

Everyone knows that it can be easy to go all out when it comes to the holidays. Unfortunately, this often means that you end up saddled with a bunch of holiday debt. To avoid a sleigh-size tab, plan ahead to save money and maximize the payoff! To help you make the most of the holiday season, I have put together a few tips for you:

Order Online

Most people already order online to avoid getting stuck in the hustle and bustle of holiday shoppers. However, before you do any transactions ensure that you are ordering from a secure and trusted source. Any websites that provide order tracking will also save you stress as you can keep an eye on your package and know when it will arrive!

Be Thrifty

Start early and keep an eye out for special sales! Many retailers have Black Friday and Cyber Monday sales, which can help you get a jumpstart on holiday shopping. Get inspired with coupons and get into the routine of flipping through flyers delivered to your home and online to get the most out of your money.

Trust Your Budget

Your budget keeps you on track during the rest of the year, so why not lean on it now? Starting the season with a plan and a maximum spending limit will help alleviate stress while shopping. There are plenty of free budget-tracking apps that connect right to your bank accounts and can be pulled out of your pocket for reference at any time – especially when you’re feeling overwhelmed at the mall.

Get Crafty

Everyone appreciates the handmade touch in a gift, and DIY-ing this holiday can help you save money. There are wonderful options that can be found online, even for beginners. Examples include homemade wreaths, body scrubs, and fun photo scrapbooks that can be done alone or in a group, and you’ll end up with a gift that money can’t buy. If you’re not sure where to find these clever and cost-effective ideas, Pinterest is a great place to start.

Give the Gift of Time

Instead of buying gifts, spend quality time with your friends and family while you give back to others. Sharing the experience and splitting the cost of hosting a dinner for a family in need will offset the cost of spending money on each person and double the amount of joy spread during the holidays. It feels good to pay in kind.

Whatever you choose to spend this holiday season, remember that the holidays are not solely about the gifts. The holidays are a time for celebration and creating memories; not for going into debt. This year, make the most of the incredible holiday season YOUR way – within your own limits – and enjoy how much more affordable and less stressful it can be.

 

5 Tips to Reduce Heating Costs

Inspect Your Heat SourcesWhen it comes to the winter season, it can be easy to go overboard when it comes to heating – but there is a better way! With a little awareness – and the right preparation – heating your home this winter won’t have to cost you a fortune. To help you save, we have put together a few helpful tips to reduce heating costs:

Regardless of whether you rely on a fireplace, gas or baseboard heating, it is always a good idea to have all heat sources inspected for efficiency.

Check Your Fireplace

It is recommended to keep your fireplace damper closed, unless there is a fire burning. Otherwise, it is the same as having your window wide-open during the winter! For those of you with a fireplace you never use, now might be a good time to plug and seal the chimney to keep warm air from escaping.

Manage Your Thermostat

As tempting as it is to turn your heat all the way up in the winter, proper thermostat management will help you save costs in the long run. A thermostat with a timer is a great option to help you save this winter. Turn it on earlier so the room heats up in time for use, instead of cranking the heat when you need to get warm quickly and have it turn off 30 minutes before bed or before leaving the home. If you find you are chilly at night, a safely positioned space heater and closed door is a far more inexpensive choice.

Close The Door

To keep your heating system from working too hard, close doors when rooms are not in use. This prevents heat transfer in and out of vacant rooms, and will ensure the space you’re currently using remains warm and cozy.

Be Mindful of Drafts

Checking for drafts is another important way to reduce heating costs. If you notice any issues, using a weatherstrip or caulking to seal doors and windows is a relatively inexpensive fix that can have a huge savings impact on your heating bill.