How Our Financial Calculators Can Help You in Creating a Budget

The main purpose of a budget is to determine where your money is coming from and where you want it to go. For a budget to show the picture clearly, you need to gather financial statements, record your income sources, list your monthly expenses, categorize your expenditures and make necessary calculations to suit your goal. Creating a budget can be boring and tedious if you don’t enjoy collecting data and crunching numbers. Since the process requires a lot of calculations, you can make the task easier, faster and more accurate by using our financial calculators.

We have five different financial calculators to help you perform all your finance related calculations fast, easy and accurate. Each of these calculators is designed for a specific purpose. However, you can use all of them to assist you in creating a budget. Here is how each can help you create a budget.

Student Budget Calculator:

This calculator is designed to assist students to create their budget when attending a college or university. It allows you to input your income and expenses in categories such as school expenses, professional fees, food and groceries and living expenses. The budget automatically assumes the school year to be of eight months starting from September and ending in April.

How much do you owe?

When creating a budget, it is very important to take into account every penny you owe the bank or any other lender. This calculator lets you enter all your credit cards, loans, other existing installment loans (such as car loan), interest rates and payments. It helps you get a clear picture how much you owe and how long it will take to be free of debts.

Mortgage Loan Calculator:

If you have an existing mortgage or planning to take out one, then this calculator will come in very handy. Once you enter the mortgage amount, interest rate, amortization period and other relevant data, it generates an amortization schedule for your mortgage. It lets you see at a glance your principal balance and how much interest you will have to pay. If you are planning to make any prepayment, it even shows you its impact on your mortgage, including the total saving you will be able to make on the interest. It helps you state your mortgage loan clearly in your budget.

Savings Goal Calculator:

One of the main purposes of creating a budget is to save money by prioritizing the important expenses. This calculator helps you do just that. Once you enter the number of years to save, your savings goal, the amount you have in current savings, savings per period, expected rate of return and the expected rate of inflation, it shows you graphically the current status of your saving and how far from your goal you are.

Line of Credit and Loan Payments Calculator:

Loans and repayments play a big part in every budget. This calculator lets you enter the loan amount, annual interest rate, term in months and other relevant data and gives you a clear picture of your loan or line of credit payment.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

The Benefit In Dealing Mortgage Broker/Agent: One Inquiry

As a mortgage broker/agent, we can use the same inquiry to shop for the best mortgage lender for you. If you shop on your own, too many inquiries will flag you as a potential credit risk, and end up lowering your credit score.

CREDIT SCORE BOOT CAMP: BOOST YOUR CREDIT SCORE FAST!

So may be you let a few bills slide when things were tight. Or maybe you haven’t seen a zero balance on your credit card in longer than you can remember. Then there was that temporary line of credit … that somehow became permanent. It’s amazing how many things we do that weaken our credit score.
A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. Sometimes, that’s how we first discover there’s a problem. That’s why it’s so important to stay on top of your obligations.

A few missed bills and a sky-high credit card balance could send your score plummeting – and your lending costs soaring. The good news is that there are lots of things you can do to whip your credit score into shape.

Whether you’re looking at buying your first home, thinking of your next mortgage, or just looking for ways to improve your financial fitness – take the time to put yourself through the paces!

GET YOUR CREDIT REPORT : SEE WHAT YOUR LENDER SEES

You might think that lenders make decisions based on some intricate financial calculation. In fact, lenders can easily pull up your credit report and see your credit score, which is based on how well you pay your bills on time, how much debt you’re carrying, how long your credit history is, your pursuit of new credit, and the types of credit you have.

If you’re going to whip your credit score into shape, you’ll want to know what you’re working with. Get a copy of your report and see what your lender sees.

Credit reports can be ordered for free through the mail, or for a small fee you can download your credit report – and your score – online. Scores range from 300 to 900. You’ll want to target a score of 650 to 680 or higher to access the best credit rates and terms.

First, check your credit report carefully for any errors. If you spot a problem, contact the agency immediately to have the issue corrected.

Next, look carefully at the factors that are pulling your score down. It takes some time – and some good habits – to build up a low score, but you can probably boost your score by several points fairly quickly by addressing your top credit issues.

PAY THE BILLS ON TIME: YOU’LL NEED A FOOL-PROOF SYSTEM

The single biggest factor in your credit score is having a timely bill payment history. Credit agencies keep track of every late payment. And each one impacts your score. The good news is that recent late payments are factored more heavily than old ones: so you can start today with a commitment to NEVER let a bill get past due. In as little as six months, you’ll look more credit worthy to a lender. The longer your “good” history is, the higher your score.

The hardest hits on your credit score are bankruptcies or accounts that have been sent to collections. Even for a small amount – and even if it is in dispute – being “sent to collections” will create a serious, long-term stain on your credit reputation. Don’t let it happen.

Develop a fool-proof system for bill paying. It doesn't have to be elaborate. Put your bills on an automatic payment plan. Or take an inexpensive monthly calendar and make it your “bill tracker”. As bills come in, mark the amounts and due dates on the calendar. Be sure to pay at least the minimum required amount (more or all if you can!) a few days ahead of time – as it can take time to process payments!

MANAGE YOUR CREDIT CARDS WEEKLY: SHOW YOUR CREDIT WORTHINESS!

Many people make the mistake of rushing to cancel credit cards – in an effort to improve their credit score. Bad idea. High balances are the problem – and your credit score is based on your balances relative to your available credit. Those cancelled cards represented “available credit”- so cancelling then could actually hurt your score!

Ideally, you would have a few credit cards with reasonable interest rates, and you would use them regularly and pay them off promptly. Look at your credit care limits, and calculate what 30% of your limit would be. Consider that your upper spending limit and stay within it. Same goes for any lines of credit. Follow the 30% rule and stay on top of payments.

Paying down your debts to under 30% is a great way to boost your credit score. If you need to carry a balance, it’s better to be below the limit on one more than one card, than at or over the limit on one card.

BUILD CREDIT HISTORY: ALWAYS KEEP YOUR OLDEST CREDIT CARD.

Wasn't it exciting? Your first credit card? For most of us, it was our introduction to the real financial world: the privilege of borrowing, and the responsibility to pay back.
Perhaps you've changed your financial institution since you got that first credit card. Here’s an important piece of advice: keep that credit card. Even if you now do most of your banking with another institution, that old credit card is valuable to your credit score. If you can, you should always keep your oldest card, and use it a little so it remains active. That long credit history is a valuable asset.

Someone who has no credit history is usually viewed as riskier than someone who has credit and manages it responsibly. If you are thinking of cancelling a card, get some advice first, even if you aren't using it.
Simply put, use credit wisely. Keep your oldest card, use it regularly, and keep it paid up-to-date. Remember the 30% rule, and fight hard to get your overall debt to under 30% of your available credit … and keep it there!

PROTECT YOUR CREDIT RECORD: PLAY IT SMART

You know how you’re always asked at the checkout counter: “would you like to apply for our fill-in-the-blank Store Card? You can save $X dollars on your purchase today …”

Don’t do it. These pitches – a common part of the retail experience – are a potential credit pitfall. Applying for these store cards generates a “hard” inquiry that goes on your record, and is visible to lenders looking at your report. Every time you seek credit by applying for a credit card, store card, or loan – you generate a hard inquiry. Too many inquiries will flag you as a potential credit risk because it signals credit desperation. You should keep these to a minimum.

There are exceptions, of course. If you are shopping for a loan or a mortgage, a lender will expect to see a short burst of inquiries against your credit score. It’s best if these happen fairly quickly and around the time of a loan event.

There’s also such a thing as a “soft” inquiry; only you can see these, and they do not impact your score. Potential employers might make an inquiry, for example. And when you check your own credit report, your inquiry is both invisible and irrelevant to your credit score.

Make a habit of checking your credit score each year – and watch how those good credit habits push your credit score skywards!

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Consolidating Debts Can Be Effortless With One Of These Tips

Consolidating debts applications can be a wonderful alternative in case you are in fiscal stress, however they are not the same. In order to choose the best one, you want a standard comprehension of precisely what the applications can offer, what to take into consideration and what phrases are in your very best monetary attention. This article offers you most of that information and facts. Read more to find out more.

Do your homework in your possible debt consolidation loans firms.

Not each one of these businesses is right for your situation. Some usually are not even trustworthy—there are tons of “take flight by night time” operations in this particular marketplace. Don’t get caught in the trap. Check out the firms completely before making any judgements.

Find a debt consolidation agency that hires competent staff members.

Advisors needs to have a qualification from a professional business. Will be the firm genuine with the support of well-known and very trustworthy institutions? This can help you kind the great organizations in the bad.

Find out whether a debt consolidation loans organization will take your specific condition into mind.

A one size fits all technique generally is not going to operate when it comes to these sorts of financial matters. You need to deal with someone that will take the time to determine what is going on along and work out how best to street address the specific situation.

You can pay off your debt by borrowing dollars underneath the correct terms.

Talk to financial loan providers to find out the costs that you simply be entitled to. You may have to set up security, such as a car, to find the dollars you need. You should make sure your loan is paid back promptly.

Recognize why you are in this article to begin with.

Consolidating debts is only 50 % the combat. You must make changes in lifestyle for so that it is a highly effective means to boosting your monetary well-being. It means going for a tough look at your credit history and bank accounts. Determine what resulted in this circumstance.

With regards to handling debt consolidation loans, make sure that you chill out.

This practice is quite typical and can help improve your financial situation when all is claimed and carried out. You have the opportunity to lower fees each month, reduce great curiosity, get rid of late costs, placed a stop to people harassing phone calls, and ultimately come to be debt cost-free. You can bounce back with this, nevertheless, you should always keep relax and take note of your payment plan.

Lots of debt consolidation loans specialists offer home equity loans but do not present these items as a result.

If you work with your own home as being a security for a mortgage loan, you will be trying to get a residence value bank loan. This may not be a great choice unless you are self-confident about spending this loan again promptly.

For those who have a number of bank cards, consider merging your entire accounts into one.

You can save a great deal on your passions and charges if one makes one particular big transaction once a month rather than giving dollars to several credit card banks. Handling the debt is going to be much simpler in the event you blend your accounts.

Have a loan to support consolidate the debt.

Though, this is dangerous for that relationship should you never pay for the money-back. This might be your only opportunity to get a keep in your condition, but handling the debt with debt consolidation will only function if you’re capable of handling the relation to new debt consolidation financial loan.

It is usually much better to try to restoration your debts with out delivering on extra debts, say for example a debt consolidation personal loan. When you can discover ways to pay off whatever you are obligated to pay, even should it be with the help of a credit history consultant, get it done! You will save time and expense.

While engaging in a consolidating debts means a smaller bill for the short term, do not forget that furthermore, it means your instalments will pull on for considerably longer. Is it possible to pay for that in case one thing were to take place later on? Some individuals discover that repaying one of their smaller outstanding debts performs greater for these people. Think about your choices.

As has become stated, not all debt consolidation loans applications are appropriate for everybody. To discover the a single which fits your life-style, assess the advice in the following paragraphs once again. Think about it cautiously when analyzing your options, and ensure to continue having a advanced level of caution. In this way, you can expect to come up with a great fiscal decision which will help to help you get out of debt.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

BMO Releases 30 Tips for 30 Days During Financial Literacy Month

TORONTO, ONTARIO—(Marketwired - Oct 31, 2013) - To mark Financial Literacy Month in Canada, BMO Financial Group is releasing a financial tip for each day of the month during November. Part of ‘Making Money Make Sense’, BMO’s tips are designed to help individuals and families gain a better understanding of their finances, save money and manage day-to-day finances more effectively.

"We recognize the importance of promoting financial literacy across North America and applaud the efforts of the federal government," said L. Jacques Ménard, Chairman of BMO Nesbitt Burns and Financial Literacy Task Force Vice-Chair. "BMO strives to help our customers and Canadians gain the knowledge, skills and confidence to make responsible financial decisions at all stages of their lives, and we’re confident that Financial Literacy Month will have a positive, long-term impact on the overall financial knowledge and skills of Canadians."

BMO’s 30 Tips for 30 Days in November:

Tip #1: Understand your needs and look for an investment advisor who takes an interest in your specific life situation to help you meet your financial goals.

Tip #2: Open a Registered Retirement Savings Plan (RRSP) as early as possible and making regular contributions will ensure financial stability during retirement.

Tip #3: Investing in an RRSP is a great way to save for retirement in a tax-efficient manner. No tax is paid on investment growth in an RRSP so investments compound far more quickly than they would if invested outside of an RRSP.

Tip #4: Familiarize yourself with the wide range of investments that can be held in an RRSP, including bonds, equities, exchange traded funds (ETFs), guaranteed investment certificates (GICs) and mutual funds.

Tip #5: Spousal RRSPs can be an effective income-splitting strategy to help defer taxes right away and reduce overall taxes in retirement.

Tip #6: Invest in a Tax Free Savings Account (TFSA) to save thousands of dollars in taxes over the long term and to help you grow your savings faster.

Tip #7: Diversify your portfolio by including a mix of investments spread across several sectors to reduce volatility without lowering expected returns.

Tip #8: Consider preferred shares as an investment choice in today’s low interest rate environment. They are a hybrid of equities and bonds and offer guaranteed fixed dividends with stable share prices and predictable distributions.

Tip #9: Create a comprehensive household budget and revisit it often to help keep your overall finances in check.

Tip #10: Track your day-to-day spending habits and take advantage of rewards programs to make the most out of every dollar spent.

Tip #11: This holiday season, encourage friends and family to contribute to your child’s RESP to help pay for his or her education.

Tip #12: Donate securities to benefit from tax savings while supporting a cause that you believe in.

Tip #13: Ensure you are covered with travel medical insurance to avoid financial risk before going on vacation.

Tip #14: Use a combination of a credit card, debit card and cash for added security, convenience and flexibility when travelling to or shopping in the U.S.

Tip #15: Take advantage of credit cards that offer affordable emergency medical and travel insurance to save money and have peace of mind when you travel out-of-country.

Tip #16: Students should pay off credit card balances in full each month and take advantage of rewards and discounts associated with their student-specific credit card to save money.

Tip #17: When planning for a new home, housing costs - including mortgage payments, utilities and taxes - should not take up more than one-third of your total household income. If you can land safely within these parameters, then homeownership is an affordable and realistic option.

Tip #18: Under the federal government’s Home Buyer’s Plan, use your RRSP to help make a down payment on your first home.

Tip #19: Use the tax refund generated from your RRSP contribution to pay down your mortgage.

Tip #20: Before getting married, have an open dialogue about your current finances including your respective saving and spending habits. The “financial talk” will help with the transition from “my money” to “our money.”

Tip #21: Establish a realistic budget for your wedding day and identify ways to minimize costs.

Tip #22: Re-visit your financial situation and budget accordingly when “expecting” a new addition to the family.

Tip #23: Save for your child’s education by investing monthly Universal Child Care Benefit (UCCB) cheques in a Registered Education Savings Plan (RESP).

Tip #24: Create a payment schedule, which includes spaced-out payments and planned financial commitments, to manage day-to-day finances.

Tip #25: Use trusted online financial tools and resources to make smart financial decisions and set yourself up for financial success.

Tip #26: Pay yourself first and put 10 per cent of your income into a high-interest savings account to boost your savings potential.

Tip #27: Bring your lunch to work and put the dollars you save towards retirement.

Tip #28: Include an emergency fund in your financial plan to help ensure you are prepared for unforeseen expenses and to avoid incurring high interest debt.

Tip #29: Consolidate high-interest debt into a line of credit to save on interest costs and become debt-free sooner.

Tip #30: Small business owners should implement year-end tax strategies that will reduce costs and help save money.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Apply With More Than One Mortgage Lender?

Unlike applying for a credit card or auto loan, there is little benefit in applying to more than one lender for a mortgage loan. You might believe you are increasing your chances of getting the best available deal or giving yourself “insurance” that you will receive an approval. But, there are reasons that it is usually not in your best interest to do this.

• In addition to filling out lots of paperwork, it will cost you money to apply (credit report, property appraisal, and, possibly, an application fee).
• A full credit report, usually a “tri-merge” (reports from all three major credit reporting agencies) is required. This will cost you money (around $15) and also bring down your credit score, as each inquiry takes some points off.
• You will end up paying for more than one property appraisal (from $200 to $450).
• You may be required to pay one or more application fees (around $200 each).
• If you want to lock (guarantee) a rate at application and a fee is involved, more than one application will involve multiple fees, only one of which will benefit you.

If you locate an experienced, honest mortgage professional and provide him/her with the correct information, he/she will advise you of the best available terms for which you qualify. Therefore it is usually unnecessary and always costly to make more than one application with multiple mortgage lenders.

Information You Need to Apply for a Mortgage
Since the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) purchase the majority of home loans in the U.S., their standards are followed by most mortgage loan buyers. 

This means most lenders will require the same information from you. The differences relate to either the type of property being financed or the specific type of loan being used. The most common information all lenders require:

• Credit report : The mortgage source will get your report, but you should get one of your own BEFORE you apply so you know your current status in advance.
• Income verification : Keep your pay stubs for at least two months prior to making application. Also have copies of your last two years’ personal income tax returns in the event you need them, including W-2’s. If you earn overtime or other additional compensation, be prepared to prove that it is regular and consistent over time. To verify this, you will need more pay stubs, as many as you can collect. The same rules apply if you earn a significant portion of your income from commissions and fees. You must justify the level of income you wish to get credit for.
• Liquidity (Cash) : Regardless of the type of mortgage you receive or the property you’re financing, there will be costs to close your new loan. In all cases, you will need third party verification of the cash you claim to have. Have your bank or credit union statements for the past twelve months handy. Also gather up all information on investments, mutual funds, and other “cash equivalents”. If some of your cash is coming in the form of a gift, have the giver sign a “gift letter”. You can find appropriate wording from the Internet or you can probably get a demo letter from your mortgage source. Be aware that most lenders will allow a gift letter ONLY from an immediate family member (mother, father, sister, brother, son, or daughter).
• If you’re buying a property, you will need a Purchase & Sale Agreement : Once you make an offer that is accepted, your real estate broker will prepare a formal agreement to purchase the property. Most lenders will require this agreement before they will accept a formal application, since there is no deal without it.
• If you’re refinancing a property, have your current tax bill, hazard insurance information or policy, a copy of your deed and/or legal description of your home: This will greatly facilitate the processing of your application and result in a faster approval.
• If you’re purchasing or refinancing a condominium : Have your condominium documents (e.g., bylaws, budget, master insurance policy declaration page, homeowner’s dues information, etc.) ready.

There may be some other information you need to provide for different lenders but your mortgage source will make you aware of anything further they want.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

10 Tips About Mortgages And Refinancing In 2013

If you’ve been sitting on the sidelines, waiting for the best time to refinance or get a mortgage to buy a home, think of 2013 as your last chance to act.

With good credit, persistence and some shopping skills, you can still snag phenomenal deals this year — even if you are underwater on your loan.

Here are 10 mortgage tips to help you with your mortgage decisions in 2013.

Tip 1: Stop procrastinating and refinance

If you haven’t refinanced recently, you’re probably paying a higher interest rate on your mortgage than you should. Take advantage of today’s record-low mortgage rates while they last. Rates are expected to remain low during the first few months of the year, but they should gradually increase. When they do, many borrowers will regret having missed the opportunity to grab the lowest mortgage rate in history.

Tip 2: Buyers, get moving

With rates near the bottom and home prices on the rise, it’s still a perfect time to buy a house. If you can afford a home and qualify for a mortgage, this may be your last chance to take advantage of the market and own a home for less. To speed up the homebuying process, get a mortgage preapproval before you start shopping.

Tip 3: Compare FHA vs. conventional loans

Many homebuyers opt for a Federal Housing Administration mortgage because it allows them to buy a home with as little as 3.5 percent down. But the already costly FHA fees that are added to your loan will increase again in 2013. As the costs of FHA mortgages rise, some buyers may consider saving a little extra for a conventional loan. Buyers need at least 5 percent down to get a conventional mortgage, depending on their credit. If you can afford the slightly higher down payment, get quotes for FHA and conventional loans, and compare the costs.

Tip 4: Ensure that your credit is golden

Credit standards remain tight. As new mortgage rules are unveiled in 2013, the standards are not expected to loosen. If you plan to get a mortgage anytime soon, you must treat your credit as one of your most valuable assets. Most lenders want to see a spotless credit history of at least a year on your credit report. You’ll need a credit score of at least 720 to get the best rate. Borrowers with a credit score of 680 or more can still get a good deal, but the lower your score, the harder it will be to get approved.

Review your credit report before you apply for a mortgage. Sometimes, paying part of your credit card balances can boost your credit score quickly. Generally, if you are using more than 30 percent of the available credit on your cards, you may be hurting your score. Also, check for credit errors and have them corrected before you apply for a loan.

Tip 5: Want to pay off your mortgage earlier?

If you are one of those homeowners who dream about being mortgage-free, the low-rate environment may be a good opportunity to refinance your 30-year mortgage into a 15- or 20-year loan. But make sure you can really afford the slightly higher payments on the shorter loan and that you have some money saved for emergencies.

Tip 6: Underwater refinancers: Don’t take ‘no’ for an answer

If you owe more than your home is worth and have tried and failed to refinance, why not give it another shot in 2013? The Home Affordable Refinance Program, or HARP 2.0, was revamped to allow homeowners to refinance regardless of how deeply underwater they are.

Even after revisions to the program, many borrowers still found obstacles when refinancing. But the situation is improving. Lenders are much more open to HARP 2.0 refinances these days than they were a few months ago. If one lender says you don’t qualify for a HARP refi, don’t take “no” for an answer, and try to find a lender willing to do it.

Tip 7: Give your lender a chance

If you have trouble paying your mortgage, don’t ignore your mortgage servicer. There are new programs available for borrowers who struggle to keep up with their mortgage payments, including forbearance for those with FHA mortgages. Lenders have been more willing to work out delinquent loans through loan modifications and even short sales for homeowners who can’t afford to stay in their homes. It can be a frustrating process to deal with your lender, but communication is still your best tool.

Tip 8: Shop for a low rate and good service

Even with rates hovering near record lows, you should still shop for the best mortgage deal. Get quotes from at least three lenders and compare not just the interest rate but closing costs and the quality of their service. Favor lenders that have a reputation of closing on time. Start with referrals from friends and relatives when shopping for a lender and read online reviews from other borrowers about the particular lender or mortgage broker you are considering.

Tip 9: Approved for a mortgage? Leave your credit alone

Most lenders order a second credit report for the borrower a few days before closing. Don’t open new accounts or charge up your credit cards at the furniture store while you wait for closing day. New credit lines and maxed-out cards may hurt your score. If you were on the edge when you qualified, your mortgage loan could be rejected at the last minute.

Tip 10: It’s not over until the loan closes

You’ve submitted your mortgage application and locked a rate. The race has just begun. Submit any documents requested by your loan officer or mortgage broker within 24 hours, if possible. Any delays in responding to the lender or in letting the appraiser into your house are wastes of valuable time. Lenders will remain overwhelmed with the large volume of refinance applications at least through the first few months of 2013. It doesn’t take much more than lost paperwork or last-minute requests from your lender to delay your closing. If that happens, you risk losing the locked rate. Follow up with your lender or mortgage broker at least once a week to ensure the process goes smoothly.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

20 Questions To Ask Before You Pick a Home Loan

Home loans can be complicated. But choosing one that meets your needs can be much easier if you gather enough information before you make a decision. Here are 20 questions that might apply to your situation.

Rate, term and payment

The most fundamental questions about any loan concern how long you’ll have to repay the amount you borrowed, how much interest you’ll be charged and whether the interest rate and payments are fixed for the entire term or subject to periodic adjustments as market interest rates fluctuate.

Here are four questions to ask:

1. What is the term of this loan?
2. What is the initial interest rate?
3. Is that rate fixed or adjustable?
4. How much would my initial monthly payments be?

Adjustment periods, caps and negative amortization

If the interest rate on the loan is adjustable, your monthly payment likely will change in the future and could be much higher than your initial payment.

Here are some questions to ask on this topic:

5. When can the interest rate be adjusted?
6. How will the interest rate be calculated?
7. What is the maximum interest rate increase for each adjustment period?
8. What is the maximum interest rate increase over the lifetime of the loan?
9. How much would my payment be today if the interest rate were calculated as it will be at the first adjustment period?
10. How much would my payment be at the maximum interest rate?
11. Could the amount I owe increase over time?

Costs and fees

Along with the interest rate and payment, you’ll want to consider the upfront and ongoing fees and costs you’ll be charged in connection with the loan.

Here are some questions to ask regarding costs and fees:

12. Can I see a Good Faith Estimate (GFE) for this loan?
13. Which of the costs on the GFE might change and by how much?
14. Are there any other costs that aren’t on the GFE?
15. Does this loan have a prepayment penalty?
16. Would this loan require an escrow account for homeowner’s insurance and property taxes?
17. Would I need to pay for mortgage insurance on this loan?

Needs and qualifications

Not all loan products are available to all borrowers, so you’ll want to explore your options before you decide which loan would be right for you.

Here are three questions that may help:

18. What are the qualifications for this loan?
19. Why would you recommend this loan for my needs?
20. Which other loans might also meet my needs?

These 20 questions can help determine if a loan is right for you. Don’t be afraid to ask your lender these and any other questions you may have. The more you know, the better equipped you’ll be to choose your loan.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Committing To A Mortgage With Your Honey? Consider These House Hunting Essentials

House-hunting couples have many important decisions to make together – from deciding on a new-build condo or century-old bungalow to agreeing on the ideal neighborhood and the type of mortgage that will work best for them.

According to research from TD Canada Trust, 73% of Canadians bought or expect to buy their first home with their significant other. Since a home is the biggest purchase most couples will make, Farhaneh Haque, director of mortgage advice at TD Canada Trust, provides her top three tips to ensure couples are on the same page before hitting any open houses.

Air out financial closets – Couples should be open and honest about their current financial situation and financial history. If anything could affect the ability to secure a loan together, afford monthly mortgage payments or interest rate increases, be upfront about it.

Start on the same foot – From a home office to a kitchen made for entertaining, couples should set a budget and discuss the key characteristics they want in a home, and what they are and are not willing to compromise on.

Saying ‘I do’ to a mortgage – Couples need to give as much thought to their mortgage as they do to their dream home. This includes discussing the size of the down payment, amortization period, type of mortgage and payment schedule.

“The last thing couples want is an unwelcome surprise when they’re about to sign on the dotted line,” Haque said. “By speaking with a mortgage specialist well before you’ve entered the pressure-cooker of the house hunt, couples can make informed decisions that can save money and stress in the long run.”

Tips To Paying Your Mortgage Down Faster

Everyone knows they should make extra payments on their mortgage, but life tends to get in the way and make it a low priority on the overall budget.  Most of us will have something they could pay towards the mortgage, yet it doesn’t seem like much compared to the balance, so we spend it on other things…and let’s face it, paying down your mortgage isn’t sexy!

So is it important?  Let me show you an example of the impact of even small extra payments on your mortgage.  For example on a $250,000 mortgage over 30 years at 3.99%, 2 years into the mortgage if you were to start making $100 extra payments alone, you would knock 3.7 years off your mortgage and save $23,468!

So how do make this happen?

One of the easiest ways is to have your Bank or Credit Union deduct a small amount from your pay and have it automatically added to your mortgage or a savings account.  This makes it easier than having to remember every time you get paid to make that extra payment.  If your mortgage is with another institution, you will likely have to use the Savings account to save it up and then contact them to have the money transferred to the mortgage.  Most lenders can take out the extra payment automatically from the account your normal payments come out of.
The other way is to ask the lender to increase your payment amount by $x amount…obviously this is a more permanent solution.

What about Biweekly Payments, or Weekly Payments?
The sooner you make your payment the better.  As well, by paying in an accelerated manner, more money is being paid onto the mortgage, reducing your principal and interest costs.  For example:
$1,000 x 12 (monthly payments) = $12,000/year
$500 x 26 (biweekly accelerated) = $13,000/year
$250 x 52 (weekly accelerated) = $13,000/year
If you can manage this, it makes a significant impact on your mortgage!
Here we see just changing from Monthly to Biweekly accelerated alone knocks 4.1 years off of a 30 year mortgage!

Please note!  Some Bank’s offer weekly & Biweekly payment options which are not accelerated!!  This is useless, as it does not reduce your principal any more than Monthly payments…beware!
Other ways to pay down your mortgage faster!

•    Use your tax return to pay down your mortgage…this can make a big impact on your mortgage over the long term!
•    When you get a pay increase, increase the payment on your mortgage by the same amount.
•    If you receive any “extra” payment or gifts, put them on your mortgage asap!
•    Instead of gifts or presents on your Birthday, your spouse’s Birthday etc, pay extra down…a free & clear home is a much better gift!
•    Check with your lender consistently and ask for a new Amortization Schedule based on your new balance and payments…when you start to see the end date is getting closer (What we call Mortgage Freedom Day!) you will be able to focus on it more.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Top 7 Mortgage Tips For Newcomers

After you have immigrated to Canada, making the decision to buy a home can be an exciting but perhaps unfamiliar journey. As a mortgage broker who has worked with many newcomers, here are my “top 7 tips” to help you on your way to home ownership:

1. If you have not done so already, apply for credit. It is very important that you establish a credit report. When considering a new mortgage application, Canadian lenders will look at your credit standing.

2. Gather relevant overseas documents. Depending on your immigration status, you may need to provide copies of your work visa/permit. Make contact with your overseas bank in the event that you may need to provide a bank reference letter.

3. Get organized. Canadian lenders will need a job letter, pay stub or other forms of proof of income like income tax documents. If you are planning to transfer money from overseas for your down payment, you should also allow plenty of time to complete this.

4. Become informed. Research the basic procedures of buying real estate in Canada. For example, are you aware of the rules when buying a stratified property like a condo?

5. Create a budget. Housing costs in Vancouver and Toronto, for example, can be high. A financing budget can ensure your anticipated housing costs are manageable.

6. Get pre-approved. By providing a short application, a banker or mortgage broker can let you know exactly how much of a mortgage you can qualify for. the loans officer will review the mortgage payments, the interest rate and a closing cost budget with you in advance.

7. Use professional services. Rely on professional guidance, not the advice of friends or family members. Buying your first home can be time-consuming and frustrating at times, and the right guidance from realtors, mortgage brokers/lenders and lawyers/notaries can reduce some of the stress and the risks.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

6 Tips To Get Approved Of A Mortgage

Go to any mortgage lending website and you’ll see images of smiling families and beautiful homes accompanied by text that makes it sound like lenders are standing by just waiting to help you find the loan that works for you no matter what your situation. (To learn more about mortgages, see Mortgage Basics.)

But the truth is that lending such large amounts of money is a risky business, and that money isn’t handed over to just anyone. If your home ownership fantasies have been rudely awakened by loan officers denying your application, it’s time to take control of your situation and learn what you can do to turn that rejection into an approval.

What Are Your Options?
Everyone’s financial situation is unique. With that in mind, here are six different options for making your homeownership dreams a reality.

1. Get a Cosigner

If your income isn’t high enough to qualify for the loan you need and if you can find a cosigner with enough disposable income, part of that person’s income can be considered toward your loan amount regardless of whether the person will actually be living with you or helping you pay the bill. In some cases, a cosigner may also be able to compensate for your less-than-perfect credit. Overall, the cosigner is guaranteeing the lender that your mortgage payments will be paid.

If you decide to go this route, just make sure that both of you understand the financial and legal obligations the cosigner takes on when he or she signs the loan documents. In the event that you default on your mortgage, the lender can go after your cosigner for the full amount of the debt. What’s more, not only will your credit score plunge, but your cosigner’s will too.

Of course, you shouldn’t take this route if you know you aren’t responsible enough to pay the mortgage on time or can’t afford the monthly payments, but if you have income that a lender isn’t willing to consider (such as self-employment income from a new business that has been very successful) and you and your cosigner are both confident that you can make the payments on your own, then getting a cosigner may be a good option. (Find out more in Getting A Loan Without Your Parents and Mortgages: How Much Can You Afford?)

2. Wait

Sometimes conditions in the economy, the housing market or the lending business make lenders less generous with loans. If you’re in a climate where everyone is panicking, then it may be best to wait things out. When conditions improve, lenders may become more accommodating.

In the meantime, you can work on improving your credit score, reducing your debt and increasing your savings. While you’re waiting, home prices or interest rates could drop. Either of these changes could also improve your mortgage eligibility. On a $290,000 loan, for example, a rate drop from 7% to 6.5% will decrease your monthly payment by about $100. That may be the slight boost you need to afford the monthly payments and qualify for the loan.

3. Set Your Sights on a Less-Expensive Property

If you can’t qualify for the amount of mortgage you want and you aren’t willing to wait, switching to a condo or townhouse instead of a house, accepting fewer bedrooms or bathrooms, or moving to a less attractive or more distant neighborhood may give you more options. As a more drastic option, you could even move to a different part of the country where the cost of home ownership is lower. When your financial situation improves down the road, you might be able to trade up to the property, neighborhood or city where you hope to end up.

4. Ask the Lender for an Exception

Believe it or not, it is possible to ask the lender to send your file to someone else within the company for a second opinion on a rejected loan application. In asking for an exception, you’ll need to have a very good reason, and you’ll need to write a carefully worded letter defending your case. Your letter should avoid excuses and sob stories and focus only on the facts. Explain how the incident that is preventing your loan from being approved, such as a charged-off account, was a one-time event that will never occur again. This one-time event should have been caused by a catastrophe such as a large and unexpected medical expense, natural disaster, divorce or death in the family. The blemish on your record will actually need to have been a one-time event, and you’ll need to be able to back your story up with an otherwise flawless credit history. (If your credit history could use some house cleaning, see Five Keys To Unlocking A Better Credit Score.)

5. Try a Different Lender

Sometimes one lender will say no while another will say yes. If the first lender you approach rejects you, there’s no reason not to try out a few other options. If every lender rejects you for the same reason, though, you’ll know that it’s not the lender that’s the problem, it’s your financial situation. Your only choice at this point is to fix the problem.

When shopping for a second opinion, don’t give lenders any inkling that you are feeling even remotely desperate for a loan or they may take advantage of you by tacking higher fees onto your loan or raising your interest rate. Of course, if you are a higher-risk borrower, you may encounter some of these fees no matter what.

Be careful to avoid loan sharks, too. Remember, you don’t want just any loan, you want a reasonable loan. One major potential benefit of homeownership is the financial security it can bring, but if you get a bad loan, that aspect of homeownership disappears. In a worst-case scenario, a bad loan could result in your losing the home, as it did for many who bought homes during the carefree lending days of the housing bubble. (To learn more about the housing bubble, see Why Housing Market Bubbles Pop.)

6. Team Up With Someone Else

Two incomes are better than one, so if you can’t qualify on your own, perhaps you have a family member or friend that you trust enough and like enough to make a major purchase with and live with. It won’t be enough to just put them on the loan, of course - they’ll need to actually help with the mortgage payments to make it work, and chances are they won’t want to pay half the mortgage unless they’re living in the new home with you.

Conclusion

To go from rejected to preapproved, it’s important to know what lenders are looking for in an applicant. If you’ve been turned down for a mortgage, make sure to ask the lender plenty of questions about things you could do in your specific situation to make yourself a more attractive loan candidate. With time, patience, hard work and a little luck, you should be able to turn the situation around and become a residential property owner.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Mortgage Rates Stay Flat to Begin Busy Week

Mortgage rates stayed in line with recent 4-month lows today.  In some cases, there was a slight movement in the closing costs associated with prevailing rates, but the rates themselves didn’t change.  The most prevalent Conforming 30yr fixed quote (best-execution) remained at 4.125%.

Every day since last week’s jobs report has been relatively calm for mortgage rates.  Even then, there was reason to believe that we could be lacking some direction until the next major round of economic data came in.  That culminates in next week’s jobs report (which is occurring so close to the previous report due to shutdown-related rescheduling), but the current week can certainly play a role.

Economic data is an important factor in mortgage rate movement for 2 primary reasons.  First, there’s the basic deductive logic that a stronger economy can support higher interest rates, thus stronger economic data tends to push rates higher, all other things being equal.

The second reason has to do with the Federal Reserve’s current role in bond markets.  While market participants no longer expect the Fed to reduce asset purchases soon, the longer-term assessment of Fed policy still affects rates.  If markets think the Fed will continue to push back the eventual end of their buying program, it gives rates more room to stay or move lower.

These two factors both suggest the same movement in the same circumstance, i.e. weaker data suggests lower rates and stronger data suggests higher rates.  But as far as the Fed policy component is concerned, some of the economic data is significantly more important than others—namely the big jobs report next week.

That’s not to say that the other data can’t have an impact, but it has to be fairly unified in its suggestion or the report has to be one of the more important ones.  Tomorrow’s Retail Sales data is a good example of a non-employment-related report that has the power to move markets.  It’s joined by several other reports that together, stand a much better chance to ensure we don’t end tomorrow in relatively unchanged territory for a 5th straight day.

Loan Originator Perspectives

"Good start to the week, auction today was well received, overall lack of any action is a net positive. Keep a close eye on the data Tuesday and Wednesday, auctions, and earnings for some of the big boys this week. FOMC on Wednesday is probably the most important piece of the week.  Safe to stay floating as long as you are closely monitoring the data.  Rates at multi month lows warrant strong consideration to lock." -Constantine Floropoulos, Quontic Bank

"Plethora of data unfolding this week, from Fed Statement on Wed to weekly unemployment, housing starts, and ADP’s October unemployment report (Labor Dept’s report released next week). Will be interesting to see Fed’s take on the DC drama’s impact on the economy and housing. By week’s end, we should have a decent indication on whether our two month bull bond market will continue." -Ted Rood, Senior Originator, Wintrust Mortgage

"Nothing has changed with my current outlook. I like floating loans and only locking when within 15 days of funding. Today’s rates opened pretty similar to Friday and MBS have gained since the weak housing data at 9am. I recommend to float all loans over night, unless your lender has repriced better today, then I would lock if within 15 days." -Victor Burek, Open Mortgage

Today’s Best-Execution Rates

30YR FIXED - 4.125%
FHA/VA - 3.75-4.0%
15 YEAR FIXED -  3.25-3.375%
5 YEAR ARMS -  3.0-3.50% depending on the lender

Ongoing Lock/Float Considerations

• Uncertainty over the Fed’s bond-buying plans and more recently over Fiscal Policy has been making for a tough interest rate environment.

• A lack of data due to the government shutdown caused rates to experience moments of paralysis while headlines suggesting the shutdown might/might-not end, as well as a seizing-up of short term funding markets caused unexpectedly high volatility—enough to be felt in longer term rates like mortgages.

• After a deal was reached to avoid going over the debt ceiling, funding markets thawed and rates returned to the same ‘wait and see’ range that existed before the Fiscal drama.  

• Markets continue to be most interested in economic data and it’s suggestions about the longer term trajectory of the economy.  This will shape expectations for Fed policy in the coming months, and thus inform the direction of interest rates.

• The stronger the data the more likely the Fed is seen as reducing asset purchases.  Rates would rise under this scenario, but the most recent FOMC Meeting (and more importantly, the Fed’s decision to hold off on tapering) suggests that they’ll attempt to keep the pace of rising rates moderate as long as inflation isn’t adversely affected.  The delayed release of the September jobs numbers on October 22nd helps confirm that.

• (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario.  There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Canadian House Hunters, Weigh Your Mortgage Options

Before we move into our new house this summer we have a really big decision to make. Do we go with a fixed or a variable rate? The answer to this question varies for everyone depending on their financial situation and tolerance for risk.

According to a popular study by Moshe Milevsky, choosing a variable rate has saved home owners money nearly 90 percent of the time. Sounds like an easy decision then, right? Not exactly.

This Time it’s Different
Interest rates are still at historic lows, with most experts predicting that rates will increase at least 1-2 percent over the next two years. Five-year fixed rates are currently under 4 percent, which is definitely an attractive rate to lock into and protect against the risk of future interest rate hikes.

But if the math favors choosing a variable rate mortgage over time, why are people so divided on this issue?

The vast majority of Canadians still choose the five-year fixed term. Proponents of fixed interest rates enjoy the peace of mind knowing that their payments won’t change and they also feel that we are in one of those rare situations where locking into a five-year term will save home owners money.

Since variable rates are always initially cheaper than five-year fixed mortgage rates, the decision ultimately comes down to saving money now vs. the potential of saving money in the future if interest rates go up.

What Options To Consider?
Let’s take a look at some real numbers to help make our decision. These are the current interest rate options for us, along with some pros and cons to consider:

Five-year variable interest rate = 2.20 percent (prime minus 0.80 percent) – As I mentioned, this is likely the smart choice since the variable rate has saved money nearly 90% of the time vs. a fixed rate. However, this time could very well be different, and if interest rates climb quickly back to historic levels this can become a losing proposition.
Five-year fixed interest rate = 3.89 percent – All things considered, a five-year fixed term under 4 percent is extremely low and would give us the peace of mind knowing that our payments wouldn’t increase even if interest rates soared. On the downside, by choosing this option we would be paying $260 more per month than if we went with the variable rate.
Three-year fixed interest rate = 3.54 percent – This option would give us the flexibility of not locking into a five-year term and also benefiting from a 0.35 percent discount over the five-year term. The monthly payments would still be $200 more than the payments on the variable rate.
1 year fixed interest rate = 2.64 percent – This option might be the best for us if we feel this is still a period of uncertainty. We would maintain our negotiating power after just one year and we also benefit from a 1.25 percent discount off the five-year fixed rate. But if interest rates were to rise quickly over the next 12 months we would still have to renew our mortgage at a higher rate when it came due.
As you can see, the five-year fixed rate has a built-in premium of 1.69 percent over the best variable interest rate. If the Bank of Canada decided to raise interest rates fairly quickly and aggressively over the next few years, the five-year fixed rate would likely be the better option.

Economic Factors at Work
The Bank of Canada meets eight times a year to make interest rate announcements and historically will move the rate by 25 or 50 basis points (0.25 or 0.50 percentage points) at a time. There is definitely the potential for interest rates to move between 2 – 3% in a single year.

The problem is, we are not very good at predicting where interest rates are headed. When it comes to monetary policy, there are a lot of moving parts to consider. It’s not as simple as just trying to contain inflation or trying to prevent a housing bubble.

Think of the soaring Canadian dollar. If interest rates were to rise sharply, the loonie would continue to climb vs. the American dollar, which puts increasing pressure on our manufacturing sector that relies heavily on exports.

Interest rates are indeed at historic lows but, with the outlook of the world economy still very uncertain, it is likely that the Bank of Canada will continue to move cautiously to avoid triggering another recession.

The Affordability Factor
Ultimately, whatever we decide to choose will carry some risk. Often the fixed vs. variable interest rate question is more about affordability than anything. Can your budget handle a 2 percent – 3 percent hike in interest rates? If not, then the fixed rate gives you that peace of mind to know that your payments won’t change for five years. If you can handle an increase in mortgage payments then you might find a great opportunity to save thousands of dollars in interest over the life of your mortgage by choosing the variable rate.

In our case, I think we are leaning toward the five-year variable rate, but with a twist. We will set our payments as if we were paying a 4.5 percent interest rate. This way we will be knocking years off of the overall amortization of our mortgage while saving thousands of dollars of interest. And we will still have the peace of mind knowing that we have built in a 2.3 percent cushion into our monthly payments in case interest rates rise.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

5 ways to pay off your mortgage faster

Want to get relieve yourself of mortgage stress? Check out our tips for paying off your mortgage faster and saving more money.

Purchasing a home is a major accomplishment, but paying off your mortgage as early as possible will be the best investment you can make. A 2010 Canada Mortgage and Housing Corporation (CMHC) survey indicated that 68 per cent of recent homeowners felt there was a strong chance they could pay off their mortgage earlier than their current amortization schedule, and 27 per cent have either made additional lump sum mortgage payments or have increased their regular payment amounts.

How to pay off your mortgage faster
Ready to save some serious money? Here are a few easy ways you can pay off your mortgage faster:

1. Accelerated bi-weekly payments
Instead of paying your mortgage on a monthly basis 12 times per year, pay your mortgage every two weeks for a total of 26 payments each year.

Example: A $300,000 mortgage paid on a monthly basis with a 3 per cent interest rate over 25 years will cost you $125,920.44 in interest. However, if you increase your payment frequency to accelerated bi-weekly payments, you will shave nearly three years off of your amortization schedule, and save $16,058.57 in interest.

2. Round up your mortgage payments
Make no mistake: Every dollar counts when it comes to paying off your mortgage. The quicker you can pay off your loan, the more you will save in interest. A painless way to make your mortgage disappear faster is to round up your mortgage payments. So if your accelerated bi-weekly mortgage payments are $543, consider rounding up to $600 instead. The extra $57 will do wonders for your mortgage and chances are you will barely notice a difference in your monthly budget.

If you receive a raise, instead of increasing the cost of your lifestyle in the short term, consider throwing the extra amount you make onto your mortgage instead.

Example: Bi-weekly payments on a $230,000 mortgage with a 2.75 per cent interest rate over 30 years would be $468.53. Increase those bi-weekly payments by just $31.47 to $500, and you’ll shave nearly six years off of the amortization schedule.

3. Put ‘found’ money towards your mortgage payments
Unexpected sources of money such as a birthday cheque from a relative or a bonus at work are considered sources of ‘found’ money.

'Found' money can be easily applied to your mortgage without any impact to your budget because it wasn't money you were expecting or counting on.

Consider increasing your RRSP contributions, and then put your tax refund directly towards the principal of your mortgage.

Example: A one-time payment of $5,000 on a $250,000 mortgage at 3.75 per cent over 30 years will decrease your mortgage amortization by over 12 months.

4. Make a lump sum anniversary payment

Most banks will allow you to make an extra mortgage payment each year, which is applied directly to the principal. Taking advantage of this by making a lump sum payment — even if it’s as small as $50 a year — is a great way to chip away at your mortgage.

Example: An annual lump sum payment of $250 on a $400,000 mortgage at 3.50 per cent over 25 years, combined with a bi-weekly payment frequency will decrease your mortgage amortization by over 3.5 years.

5. Stay informed
Once you have a mortgage and start making your payments, it can be easy to just forget about it because it’s an automatic payment. But don’t stick your head in the sand. To be an informed homeowner, you need to keep up-to-date on interest rates and new mortgage options. You could potentially save a ton of money just by understanding what your options are.

Example: Let’s say that interest rates have dropped since you took out your mortgage a few years ago, but you are in the middle of a five-year fixed term with your bank. By understanding what the penalties are for breaking your mortgage, and reapplying for a lower interest rate, you could potentially save thousands of dollars over the long run.

While paying down your mortgage early will mean less interest paid over the lifetime of the loan, and a shorter amortization schedule, it’s not always the best decision for every homeowner. For example, if you have high interest debt on a credit card, no emergency fund savings, or haven’t started saving for retirement yet, the interest you would save on your mortgage will not be as beneficial to you as dealing with other financial issues.



Armed with information and commitment, these tips will help you pay off your mortgage faster. The freedom that being completely debt-free brings is a dream for many Canadians, so take the time to do some calculations and figure out what options are right for you.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Great Advice For Every Kind Of Home Improvement Project

Making home improvements can really change your whole home. It could also be something involving your landscaping or one of your outdoor structures. The tips in this article can help your home look amazing after your next project, as well as more functional too.

Don't overlook the addition of storage space to your new or existing home. Most homes are substantially lacking in storage space. Add built in bookshelves to the living room or dining room. Turn a broom closet near the kitchen into a food pantry. Small changes and additions will really add up.

Boring, simple lampshades have no personality. Buy some cheap stencils at your local craft store, and using some acrylic paint or dye based ink pad, dab around the designs, transferring them to your lamp shade. You could literally create any design you can think of and give more personality to your home.

If you are taking on your project alone, consider hiring a interior designer for a consultation. An hour with a professional can help clarify what you want to do and help steer you away from those projects that sound good in your head but would be a nightmare to complete.

Place a nice centerpiece on your dining room table to create a sophisticated look. Your arrangement doesn't have to be floral in nature. You can mix celery sticks or different vegetables with flowers, or use wildflowers growing outside to create an arrangement pleasing to the eye. You can place your centerpiece into a basket or a vase.

You now know what home improvement is all about and know some fantastic tips that can help you make a home look great. When you are starting a home improvement project, you should make it enjoyable. You're sure to enjoy your return home at the end of each work day when you have invested some time in making your home more beautiful and inviting.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Follow These Tips To Make Essential Home Improvements.

Remember these items before attempting a home improvement project. Continue reading this article to learn some excellent advice on how to succeed with your home-improvement projects. It will benefit you regardless of your level of experience, and give you the tools you need to get the job done.

Always comparison shop for contractors when you need to fix up your home. Later, if you decide to sell your house, it is almost certain you will need to have some repair work done. If the work you require is extensive enough, you will have to hire a contractor. This is not something to do on the spur of the moment. Not all contractors are created equal; shop around before engaging one!

Venetian blinds can be vacuumed but at some point, they need to be washed. One way to wash them is to put them in the bathtub and use a brush and solvent to clean off the accumulation of dust. An easier way, may be to wash them while still hanging. Put a plastic drop cloth underneath to keep water off the floor.

Make your home feel like a home by adding a doormat. A lot of people tend to overlook the addition of a doormat in front of a door. It not only serves a purpose of making a home feel complete, but also serves to keep your floors clean. Putting out a doormat where people can wipe their feet will cut down the amount of time you spend cleaning your floors.

As you have seen, in order to succeed at your home-improvement project, it is crucial that you are knowledgeable about it. The advice found in this article will help those who are new to this topic and those who are experts on it. Utilize these tips when the time is right!

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Rule The Roost With These Fun And Creative Home Improvement Tips

Almost every homeowner has thought about starting an improvement project sometime in their life. Anyone who has attempted a home improvement project can tell you that things do not always go exactly as planned. Continue reading for some helpful tips on how you can plan your home improvement projects to be successful.

Wires and cords can be a safety hazard and unsightly. When doing home improvements, consider adding your home surround sound and networking wires into your attic. If everything is ready to go and wired for these amenities, you will be able to use this as a selling point for your home later.

Don't overlook the addition of storage space to your new or existing home. Most homes are substantially lacking in storage space. Add built in bookshelves to the living room or dining room. Turn a broom closet near the kitchen into a food pantry. Small changes and additions will really add up.

If you're tired of running out of hot water, consider getting a tankless water heater. Tankless heaters give you hot water only as you need it, without having to have a holding tank. By only heating the water you'll immediately use, you can also save money on energy. They also take up much less room than traditional tank heaters.

When it comes to home improvement, leave the big jobs to the professionals. You may end up getting way over your head with expenses, fines, and patchwork if you try to do more than you are actually capable of. Professionals will know the ins and outs regarding permits and regulations. They also will be bound to a contract so it will be them that lose out if the project takes longer than expected or ends up costing more.

When you hire a contractor to work on a home improvement project, make sure that he is holding a current license and that he has insurance for his employees. This is important for your protection, in case you have a legal dispute about the quality of the work. In addition, if his employees are not covered by his insurance, you might be financially responsible for any injuries that an employee incurs, while he is on your premises.

If you are working with someone else on a home improvement project, make sure to have clear lines of communication. It is important that everyone be assigned a role that caters to their strengths. It is also important that all members of the team understand the role they will have in the project. Clear communication will ensure that the project is completed in a timely fashion.

TV entertainment stands cost quite a bit of money. A great viable alternative to those expensive stands is buying a nice dresser. You can put your TV on top and use the dresser drawers to store your DVDs and CD's. Your remote controls and electronic manuals can also be stored in a drawer preventing it from being an eyesore.

Take your trash out at least once a day. Don't let your trash pile in the kitchen because it attracts flies and ants as well as mold. Make sure that you don't let your trash take over your kitchen and set aside three minutes a day when you throw it out.

If you live in a rural area, consider purchasing a power back up generator. When the lights go out and sometimes your heating even depends on it, you can be without power for hours or even days in seriously harsh weather. A power generator can help you take care of the necessities that you can't do without when the electricity is out.

This article mentioned that not knowing how to go about home improvement the right way can be costly and confusing. If there is no help from a pro, there can be one fine line between failure and success. Use the tips in this article to start a project and carry it out effectively.