Blog Post

Finding Money For Closing Costs!

Katherine Martin • Oct 14, 2016

If you are planning on purchasing a property in the next couple of years, here is a really good video that will explain how you can find some extra money to put away into savings without impacting your lifestyle. Maybe you can even find enough money to cover the legal fees of buying your next home, that would be a nice challenge.

Transcript

Hey guys welcome to mostly money, I hope you like what I’ve done with the place, and if not keep your comments to yourself.

So this week, I thought I’d talk about how you can find the money to save in the first place because I think a lot of people are on board with the idea that saving money is in fact a good idea but sometimes they struggle with finding that money to put away. So here’s one quick idea that I think anyone can put into practice, convert automatic expenses into automatic savings. Here’s what I mean by that, when it comes to automatic savings it works well for people because they forget how much they’ve been saving automatically but it’s the same with your expenses after a while you forget all the expenses that you’ve committed to. So there is the potential that you could reduce or eliminate some of these regular expenses that you haven’t looked at in a long time.

Here’s what you do, simply take a look at all your credit card statements and bank statements for the last two months. Go over it line by line and take a look at all the regular recurring automatic expenses and write them down. I’m talking Netflix subscriptions, TV packages, internet service, insurance premiums, subscriptions you have to magazines and newspapers anything that occurs on a regular basis on those statements. Write each of those items down, next write down how much you’re spending per month for each of these items. The next thing you’re going to do is take each of these expenses and figure out if there’s any way to reduce or eliminate them. For example, Netflix subscriptions have three tiers: basic, standard, and premium .The premium services $11.99 per month and it gives you access to stream in ultra HD but if you don’t even have an ultra HD capable device you’re paying for something you don’t even need. Or maybe you can settle for regular HD and if you do that you can downgrade to the middle tier, the standard package which is $9.99 per month so that’s only $2 in savings but bear with me. Maybe it’s been a while since you first signed up for streaming service and back then you thought there’s no way i can get rid of cable just yet but fast forward two years and all you do now is Netflix and chill. Now is a great time to see if maybe you can reduce your cable package and easily save $30 per month or more.

When was the last time you looked at bank fees? If you haven’t looked at your banking package in the last couple of years, I’m going to bet it’s pretty easy to see that at least $5 per month. If you go through this simple exercise for all your regularly recurring expenses, I don’t think it would be a surprise to find that a lot of people can find $50 per month in savings, but now here’s the trick. Whatever savings you find you have to immediately commit to an automatic savings plan, for the exact same amount so if you find $50 in savings, you actually have to save the savings and put that $50 away into a savings account. You’re not going to notice a big change to your cash flow, but after 12 months of saving $50 per month that’s going to add up to $600! If you want to find a $1000 in annual savings you need to find $83.33 per month in expenses to cut out. The point is if you take a few hours to go through this exercise you can make a big positive change to your finances without having a big change to your lifestyle.

So to recap:

Make a list of all your automatic regularly recurring expenses.
For each of those items figure out if you can reduce or eliminate them.
Most importantly, whatever savings you find you have to direct either into a high-interest savings account or towards accelerating your high interest debt payments and that’s it!

If you’ve done this exercise before or you were inspired to do because you watch this video I would love to see what your results were. Let us know in the comments section down below how much money you freed up and thanks for watching!

Hey guys, thanks for watching Mostly Money. I hope you enjoyed today’s show don’t forget to subscribe to my channel by clicking on the button in the bottom right hand corner of your screen a
little thing that says Subscribe. There are lots of videos to explore my channel like this one. So, if you want to learn more about money and personal finance in a fun way check those out! If you have any questions for me you can reach out to me on Twitter at Preet Banerjee or you can leave your questions and comments down below in the comments section. That’s it for today see you next time.

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Mail

Katherine Martin

Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842

How to Handle Missed Payments

By Katherine Martin • 17 Apr, 2024

If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, this article is for you. But before we get started, if you have an overdue balance on any of your credit cards at this exact moment, go, make the minimum payment right now. Seriously, log in to your internet banking and make the minimum payment. The rest can wait. Here’s the good news, if you’ve just missed a payment by a couple of days, you have nothing to worry about. Credit reporting agencies only record when you’ve been 30, 60, and 90 days late on a payment. So, if you got busy and missed your minimum payment due date but made the payment as soon as you realized your error, as long as you haven’t been over 30 days late, it shouldn’t show up as a blemish on your credit report. However, there’s nothing wrong with making sure. You can always call your credit card company and let them know what happened. Let them know that you missed the payment but that you paid it as soon as you could. Keeping in contact with them is the key. By giving them a quick call, if you have a history of timely payments, they might even go ahead and refund the interest that accumulated on the missed payment. You never know unless you ask! Now, if you’re having some cash flow issues, and you’ve been 30, 60, or 90 days late on payments, and you haven’t made the minimum payment, your creditworthiness has probably taken a hit. The best thing you can do is make all the minimum payments on your accounts as soon as possible. Getting up to date as quickly as possible will mitigate the damage to your credit score. The worst thing you can do is bury your head in the sand and ignore the problem, because it won’t go away. If you cannot make your payments, the best action plan is to contact your lender regularly until you can. They want to work with you! The last thing they want is radio silence on your end. If they haven’t heard from you after repeated missed payments, they might write off your balance as “bad debt” and assign it to a collection agency. Collections and bad debts look bad on your credit report. As far as qualifying for a mortgage goes, repeated missed payments will negatively impact your ability to get a mortgage. But once you’re back to making regular payments, the more time that goes by, the better your credit will get. It’s all about timing. Always try to be as current as possible with your payments. So If you plan to buy a property in the next couple of years, it’s never too early to work through your financing, especially if you’ve missed a payment or two in the last couple of years and you’re unsure of where you stand with your credit. Please connect directly; it would be a pleasure to walk through your mortgage application and credit report. Let’s look and see exactly where you stand and what steps you need to take to qualify for a mortgage.

Bank of Canada Rate Announcement Apr 10th, 2024

By Katherine Martin • 10 Apr, 2024

Bank of Canada maintains policy rate, continues quantitative tightening. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario April 10, 2024 The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening. The Bank expects the global economy to continue growing at a rate of about 3%, with inflation in most advanced economies easing gradually. The US economy has again proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending. US GDP growth is expected to slow in the second half of this year, but remain stronger than forecast in January. The euro area is projected to gradually recover from current weak growth. Global oil prices have moved up, averaging about $5 higher than assumed in the January Monetary Policy Report (MPR). Since January, bond yields have increased but, with narrower corporate credit spreads and sharply higher equity markets, overall financial conditions have eased. The Bank has revised up its forecast for global GDP growth to 2¾% in 2024 and about 3% in 2025 and 2026. Inflation continues to slow across most advanced economies, although progress will likely be bumpy. Inflation rates are projected to reach central bank targets in 2025. In Canada, economic growth stalled in the second half of last year and the economy moved into excess supply. A broad range of indicators suggest that labour market conditions continue to ease. Employment has been growing more slowly than the working-age population and the unemployment rate has risen gradually, reaching 6.1% in March. There are some recent signs that wage pressures are moderating. Economic growth is forecast to pick up in 2024. This largely reflects both strong population growth and a recovery in spending by households. Residential investment is strengthening, responding to continued robust demand for housing. The contribution to growth from spending by governments has also increased. Business investment is projected to recover gradually after considerable weakness in the second half of last year. The Bank expects exports to continue to grow solidly through 2024. Overall, the Bank forecasts GDP growth of 1.5% in 2024, 2.2% in 2025, and 1.9% in 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026. CPI inflation slowed to 2.8% in February, with easing in price pressures becoming more broad-based across goods and services. However, shelter price inflation is still very elevated, driven by growth in rent and mortgage interest costs. Core measures of inflation, which had been running around 3½%, slowed to just over 3% in February, and 3-month annualized rates are suggesting downward momentum. The Bank expects CPI inflation to be close to 3% during the first half of this year, move below 2½% in the second half, and reach the 2% inflation target in 2025. Based on the outlook, Governing Council decided to hold the policy rate at 5% and to continue to normalize the Bank’s balance sheet. While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months. The Council will be looking for evidence that this downward momentum is sustained. Governing Council is particularly watching the evolution of core inflation, and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians. Information note The next scheduled date for announcing the overnight rate target is June 5, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 24, 2024. Read the April 10th, 2024 Monetary Policy Report