Are you achieving your goals?

Sometimes we set ourselves up for failure! Since we are fast approaching a pivotal time in the year, where many of us tend to set goals for the new year, it is important to be realistic, practical and honest with your goal setting.

Remember this acronym: S.M.A.R.T. It is applicable to short, mid and long-term goals. Short-term goals are tasks that are achievable within a brief amount of time such as a couple weeks. For the most part, these goals are stepping stones for the mid to long-term goals. With that said, mid-term goals are usually attainable inside a few months, while long-term goals are bigger, more challenging and can take more time to complete. For example, if your long-term goal is to buy a house, a short-term goal may be to (ideally) reduce or eliminate your debt simultaneously open a savings account for your down payment or closing expenses or simply to be ready for opportunities that will come your way...only if you have savings!

S.M.A.R.T. Goal Setting

S.  Specific & written

M. Measurable in progress & completion

A.  Achievable outcome

R.  Realistic in time & skill

T.  Time based achievement

Goal setting can be an intimidating process and there are plenty of reasons why people avoid making them. Things to avoid;

1. Setting impractical goals. Set your criteria on reality! For example, be professionally qualified for a mortgage. Know where you stand and stick with that number. If you know you are only able to spend a certain amount of money....don't go over that!

2. Fearing Failure. While some people  set the bar too high, others set the bar too low or don't set the bar at all to avoid let downs. Don't let fear of failure paralyze you. Studies show that the additional effort and motivation required to achieve challenging goals makes them more rewarding than easier goals.

3. Not having a plan. A major part of goal setting is creating a plan of action to initiate, substantiate and complete the task.To improve the chances of reaching your goals, give yourself a deadline and stick to it. Deadlines will hold you accountable to your goal and help you track your progress.

FINALLY!!!!

I have been patiently waiting for this day to come. This is the day where I get to welcome my new partner to my team. Not only is does she have an amazing background in marketing, she is also incredibly vibrant with a lot of passion and energy.

I would like to introduce to you Paula Margulis.

A Business Marketing graduate, Paula has worked at Toronto's prestigious real estate marketing firm P+B Marketing, where she participated in a myriad of high-end projects, including Yorkville Corporation's high profile MuseumHouse, Channington Developments' Electric City, Sentex Developments' Waterways of Muskoka and BrightStar Corporations' Crates Landing. Since then, Paula has worked in retail marketing representing prominent clients such as Proctor & Gamble, Johnson & Johnson, Walmart, Shoppers Drug Mart and Loblaw Company Ltd., as well as online advertising and as a marketing consultant for Realtors.

The icing on the cake? She happens to be my daughter. Double whammy! I really couldn't be more proud or excited to be working with her. With that said; Welcome to the team Paula!

The Magic Number....620+!!

What does this mean?

This is the credit rating that you should have in order to get AAA rates with lenders. How to achieve this? Here are a few pointers;

First of all, you should get familiar with your own credit score. Equifax is one company that keeps track of  your score. This should be checked regularly...every 6-9 months.

You should have at least 2 active trade lines in good standing (meaning no late payments or at least not later than 2 months on making a payment also known as an R2 rating). A trade line is a credit card, line of credit or a loan where you are establishing your credibility at repaying money in a timely and consistent manner.

Don't be afraid to have credit, it is not a bad thing! Even if you prefer to deal with cash, you should establish some type of credit history. Take out a credit card with a small limit and use it once a month for a gas purchase or something to that affect and pay it off immediately at the end of the month.

Lenders don't like you to have multiple cards of the same type so mix it up; Visa, Master Card, AMEX. Don't carry all Visa (for example) or all department store type cards, they like variety.

Most lenders don't like to see clients get MAXED out on their credit line. They don't want you living at the "edge" of your margins...so we strongly advise that people stay under the 75% mark on the available credit limits. An example of this would be; your available limit is $1000, do not spend over $750 as a monthly balance.

Be consistent in repaying. Always repay at least the minimum payment every month, even if it is just $15. It is recommended that people set up an automatic payment system with their banks so they can stay consistent and they never forget to pay at least the minimum balance. Note: minimum is usually 3% of the overall balance on your statement.

If your credit limit is up to the max, it is recommended paying it down ASAP. Doing this would increase your score immediately and / or call up the credit card company (the number is on the back of the card) and ask for an increased limit AS WELL as a decrease in interest charged. Note: most credit cards have a 19 - 21% monthly interest calculation. You have the right to ask for it to be reduced. Don't hold back!

Times are changing! VERY EXCITING!

I couldn't be happier to share with you that my business is expanding and by that I mean I have recruited a new affiliate.

Today I want to introduce you to my network's new addition; Teresa Martin Grier, Federally Licensed Mortgage Agent with Dominion Lending Centers, the largest brokerage across Canada. She has worked in the Banking industry for the past 6 years and the last 2 years as an Industry Train Expert Mortgage Negotiator.

Working with Dominion Lending Centers, the fastest growing and largest brokerage in all of Canada, gives Teresa great privileges and access to full market products. She has access to RATE discounts that no other Brokerage Brand can claim. It is her job to KNOW what is available in the entire mortgage market as well as how to package your deal for quick approval by the lender.

As your "personal Mortgage shopper", Teresa will do all the leg-work in turn saving you time, money and worry. Her service to you will be to present you to lenders allowing them to compete for your business. After all, you compare prices for a vacation so why not compare prices for your mortgage?

The benefits of working with Teresa are two fold:
1. There is no cost for her services - She is a performance based professional paid by the lender who wins your business and trust.
2. Access to exceptional discounted rates - not available to the public for the RIGHT product your personal situation requires.

I am pleased to welcome her to my network and even more so to give you, my highly regarded clients, friends and family...yet another reason to be as comfortable with your real estate decisions as possible.

Disclose, disclose, disclose!!!!!

No matter who you are or where you are (in Canada), you have a legal obligation to disclose any issues pertaining to your home upon selling. Put yourself in the buyer's shoes. Wouldn't you want to know if there was a homicide or a grow op or death caused by a fire? These situations do not only have financial implications but emotional ones as well.

There was an article in a major publication on Tuesday September 13th regarding a home that was used in the past as a grow op that was sold (without disclosure) and in turn left the buyers with a major financial setback having to repair the house. There were legal ramifications to the seller; they had to award damages (a substantial amount of money) to the buyer.

Now, I want to make something clear...if your home was used as a grow up in the past you must disclose this. If there was a crime committed or any illegal action taking place in the home you must disclose this. If there was a fire and the house suffered major damages and you have put thousands of dollars into renos....you still have to disclose this. Let's just say you HAVE to disclose EVEY THING no matter how long ago the event took place. If you know about it....you had better disclose it or the consequences could be quite dramatic (costly and time consuming).

It is for the seller's benefit to do this. The more honest you are, the better the buyer feels and in turn you will be establishing confidence in the transaction. Doesn't that sound good to you?

Did you know...?

I was just having a conversation with my daughter about the reality of smoke alarms. Little did she know that smoke alarms are an essential element to the home. You do not get home insurance without them. I think she was a little taken aback by this but she does have common sense and it did come clear to her why this is the case. Knowing that she probably isn't alone in the world...by not knowing this critical piece of information made me realize that there are many others out there who might now know this, which brings me to my blog for today; the importance of smoke alarms!

The stats are sad; residential fires account for 73% of all fire-related deaths (fiprecan.ca). Whatever the case may be; the alarm didn't go off because the batteries were removed or have died or aren't working properly or maybe it was the wrong kind of smoke detector...it is very important to make sure that you have the right equipment and that it is in working order.

You should have at least one ionization type smoke alarm. These are the first to respond to fast flaming first that consume combustible materials quickly and spread rapidly. These are the kind of fires that produce a lot of heat and not a lot of smoke. These kinds of fires come from cooking meals with a lot of grease or fat or where there are a lot of easily flammable materials, i.e. office (papers), workshops (solvents, paint), etc. With that said; it is wise to put this kind of smoke alarm in these areas.

Another type of smoke alarm is photoelectric. These alarms detect slow smouldering fires. This is the kind of alarm that we are most familiar with...when you burn toast or are frying something. You must remember that when you are in a fit of annoyance due to the noise of the alarm and shut it off by removing the batteries...you are only doing yourself and injustice. You should keep this kind of alarm close to slow burning material like fabrics (living rooms, bedrooms and kitchens), etc.

Some helpful advice for ya....
1. Have one of each detector on each floor of your home.
2. Replace the batteries every year...no matter what!
3. Test the alarms monthly.
4. Replace the alarms every 5 years.

Back in the game!!!!

 

We have been experiencing a pretty low interest rate for a few years now and as far as we can tell (thank you to the finance guys in the head office); we can continue to count on affordable financing. Having said that, I would like to stress how important it is to get a pre-approval for a mortgage whether it is your first, third or fifth.

What can I say about pre-approvals?! This is an understated step when it comes to getting started on the train of purchasing. Why you ask? I am going to tell you right now!

First let me say that I can totally appreciate why this is a tough first step. It may actually feel like a bit of an invasion or even an interrogation HOWEVER, this is far from what pre-approvals are all about. You need to remember one thing and one thing only; this is for your sole benefit. With that said; please don’t look at this stage/step of the process as scary but rather one of reflection of your place in life. That in itself could be the scary part....but hey....we are all human.  This pre-approval business is supposed to demonstrate what you are capable of handling in terms of borrowing. Wouldn’t you want to know where you stand in actuality rather than hypothetically? I would!

Having been in the business for 21 years, I would without a doubt say that this is the most important element to home ownership. Let’s not take this lightly!

Thinking of ways to cut costs when buying a home? Don’t make it with home inspection!

Trying to save money on a home inspection is precisely what you should not do!

There are times when we can exercise a Home Inspection as per a condition stated in theoffer of purchase and sale. This is not happening many times with multiple offers since those offers are usually unconditional. Yet, in these cases we can have a home inspector at the house prior to offer presentation or later on when we successfully win the biding war.

But make no mistake, a home inspection must be conducted by a qualified home inspector and by no means should this be your cousin, extended family member, your neighbour or the handyman specialist your sister recommended!

A home inspector should be a member of a professional home inspector association, must carry errors and omissions and general liability insurance. In other words, he should know what needs to be checked and should have the ability and tools to do so. Furthermore, a home inspector’s report handout can be useful later on should there be a need for clarification.

Please note; if your home inspector shows up without a ladder…then you know you are off to a bad start.

Come out and play....

So...I am celebrating my second year of blogging. Congratulations to me! And today...I want to bring you, my readers, a little something different.

We are in the middle of the winter where we are bombarded by grays, blues, darkness and very cold weather. Not the ideal situation for eliciting happy and cheerful sentiments.

Do we create more tasks or participate in more activities to overload our daily schedules thus not paying attention to the outdoors?
Do we embrace the weather with new accessories?
Do we make an effort to come up for air from our daily routines?
ABSOLUTELY...and probably yes to all of the above.

For those of you who are not able to take a trip; reading by the fireplace, walking downtown with a friend or alone, sitting at a coffee shop enjoying a hot tea are all fabulous solutions to nurturing this need. In my case, a little retail therapy always hits the spot. In essence; stopping to smell the roses, metaphorically speaking...is comforting.

We all need a break to recharge our energy, enthusiasm and spirits...just do what you need to do to feel good during this time of post holiday depression.

Breaking News....the saga continues!

So, here we are yet again...the government stepping in to aid the mortgage market and its record levels of household debt. The Globe and Mail reports that Ottawa has initiated a plan of action to implement a combination of mortgage adjustments.

The Finance Department says that Ottawa will stop backing a 35-year mortgage and reduce government backing of home equity lines of credit. Another adjustment will aim at how Canadians can draw on their home equity. It was just a year ago next month when the Finance Department lowered the maximum amount Canadians could withdraw in refinancing their mortgages to 90% from 95% of the value of their home. That number is now expected to be reduced once again from 90% to 85%.

The last maneuver could be in part a result of statistics published in 2009 showing that debt levels for Canadians has increased to record levels.

It is not clear when these changes may come into effect, but it will certainly continue the recent trend of making mortgage money a bit tougher to come by.