Mortgage Tips - The Tax Deductible Mortgage Strategy

By: Gregory Van Duyse

If you are interested in

- Paying down your mortgage faster (taux hypothécaire)
- Reducing taxes
- Preparing for retirement

And who wouldn't be? Read on.

Through the use of a specialized mortgage strategy called the Smith Maneuver, you can achieve all of these goals. And you can do them all together! - taux hypothécaire

The strategy is named for a British Colombia financial planner, Fraser Smith. He developed this interesting home loan strategy a few years ago (see the press release). I had the good fortune to hear Fraser give a speech about it at a recent conference in Toronto, where I was one of three mortgage consultants from Quebec.

This strategy, formed for a mortgage product that can expressly use it, allows the mortgage holder to make an investment or pay business expenses and, over time, achieve a tax benefit from the related interest expenses. There are a number of ways in which this works, but if it is approached in the right manner, you can limit your risk while increasing how efficiently the strategy works for you. There are many parts to this strategy, so it is best that you phone and discuss your individual circumstances and how they can be addressed using this strategy. We work with financial planners who can analyze your financial needs and put the right package together for you - taux hypothécaire.

Advantages

• Pay down your mortgage faster
• Reap tax savings
• Save for retirement
• Best for high income people
• Best for self-employed, but can be utilized for salaried employees as well
• Has been approved by tax lawyers, accountants and financial planners
• You can begin the strategy any time, but the sooner the better
• It can be set up on an automated program
• There are no additional fees to be paid

Disadvantages

• It is best for those with a mortgage that is 75% of the value of their home
• The strategy requires that the borrower can increase his payments by 2% per annum
• If the investment component is used (mandatory in the case of a salaried employee), there is always the risk associated with the investment
• In order to lower the risks associated with the investment, this strategy should be used over the longest possible period (10 to 15 years or more)
• It requires a good understanding of certain principles of investment, or the assistance of a financial planner

How to use this strategy for the long term

There are many ways to work with this strategy, applying it to each situation, each type of home loan and each status of employment. The higher your taxes are, the better the strategy works. You can use this strategy in combination with other mortgage strategies depending on your own needs - taux hypothécaire.

What is our conclusion?

Thanks to the work of Fraser Smith, we now have help in addressing three important questions that concern many of us:

- Is there a way to pay down my mortgage more quickly?
- How can I reduce my taxes? - taux hypothécaire
- Are there ways that I can accumulate additional funds for retirement?

This is a wonderful idea, but there are many was the Smith Maneuver can be used, differing from case to case. Your best bet would be to contact us and learnthe way that would work best for you.

Source : www.streetdirectory.com
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How to Pay for Your New Car

By Philip Reed

You're sitting in the dealership when the salesperson asks, "So, how are you going to finance your new car?"

The question leaves you a little confused. What is he really asking?

In the car business, the term financing is loosely used to mean that the dealership will either provide you with an auto loan to buy the car or lease the car to you. The opposite of "financing a car" would be buying it outright with one cash payment.

Although you can take out a bank loan to finance your car, many people like the convenience of getting a loan through the dealership. They can walk in, choose a car, fill out a credit application and drive away in a new car. They can do this at night or on the weekends when banks and credit unions are closed.

In exchange for this service, the dealer will often charge you more for your auto loan. How much more? That depends. If you have sterling credit, you might get a competitive interest rate and be eligible for special programs that lower your cost. However, if you have bad credit, or no credit, the dealer might charge a much higher interest rate for taking what is perceived as a risk on loaning you money.

So, going back to the salesperson's question, "How are you going to finance your new car?" your answer could be one of three things:

1. "I want to buy the car."

2. "I want to lease the car."

3. "I will be paying cash for the car."

Let's look in more detail at each of these financing options so you can know what to expect at the dealership:

"I want to buy the car."

If you decide to buy the car and you want the dealership to help you finance it, you will be asked to fill out a credit application. Based on your credit score, an auto loan will be arranged through the dealership's lending institution based on the negotiated price of the car and related expenses (sales tax, title and licensing fees). Loaning money is big business, and most auto manufacturers have their own companies to arrange car loans. For example, Nissan cars are often financed through Nissan Motor Acceptance Corp.

You will probably be asked how quickly you want to pay off your new car. Most auto loans are from three to five years -- 36 to 60 monthly payments. Different lengths of time can be arranged, if desired. Obviously, the longer you take to pay off the loan, the lower the payments will be. In addition, the amount of your monthly payment will depend on the interest rate, the length of the loan and the amount of your down payment. Keep in mind that the dealership will urge you to make a large down payment.

While you are paying off the balance you owe on your car, the lending institution will hold the car's title. Once all the payments are made, the car's title is sent to you and you finally own the car.

"I want to lease the car."

If you decide to lease the car, you will also be asked to fill out a credit application. Based on your credit score, and the length of the auto lease you want, the dealer will shop for a lease for you. Using a sophisticated computer program, numerous banks will be contacted. Each bank will have different terms and conditions.

You will need to decide how long you want to lease for (we strongly recommend three years). Also, you need to decide how much you want to pay upfront (we recommend you pay as little as possible to start the lease -- tell the dealer you want to pay "drive-off fees only").

Most auto lease contracts allow you to drive the car 12,000 miles a year. If you typically drive more than this, ask that the car lease be written for 15,000 miles or even 18,500 miles. This will raise your monthly payments but save you money in the long run.

Your contract will contain a residual price for the car you are leasing. When you have made all the lease payments, you can then buy the car for this residual price (or you can sometimes negotiate an even lower price to buy the car for). If you decide to return the car to the leasing company, they may charge you for excessive wear and tear to the vehicle. If the car is in great shape, you can get your security deposit back or use it to start the lease of another new car.

"I will be paying cash for the car."

Paying cash for a new car makes the transaction very simple -- all you need to do is negotiate the price of the car and then write the dealer a check for this amount. This removes several variables from the negotiation process: the down payment, the interest rate and the monthly payment. Negotiating in this manner means the dealership can't disguise the true cost of the car.

Wait a second, you say, who has the dough sitting around to buy a new car outright? What we're really saying is to borrow the cash from an outside source so you can be a "cash buyer" at the dealership.

There are many lending institutions that make loans for new cars. Up2Drive.com will even arrange a loan over the Internet. Again, the process begins with filling out a credit application. If approved, you will be given a credit limit and issued a check (sometimes called a draft or bank draft) that can be made out to a dealership. The lending institution will hold the car's title while you make all the agreed-upon payments. When the balance is paid off, you will get the car's title.

Summary

That is an overview of the credit process you are likely to encounter at the dealership. There are several different strategies for buyers to reduce their costs at the dealership. For more information on these subjects, review the other finance and credit stories available on Edmunds.com.

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What Is Business Debt Refinancing?

The basis of business debt refinancing is the conversion of original debt, including outstanding or overdue amounts, into a new debt instrument. By paying off the current debt obligations with the new debt instrument, businesses can consolidate their debt and obtain better interest rates.

Business debt refinancing programs offered by various lenders provide business owners with funding to cover existing debts and start a new debt instrument with new terms. The change in debt instrument can convert short-term loans into longer-term debt, which helps a company improve its cash flow and provides more available working capital. In addition, paying off creditors enhances the reputation of the business, reduces the possibility of litigation, and helps re-establish solid relationships between the business and its key suppliers.

When refinancing a secured loan, lenders will typically refinance up to 80 percent of the value of the collateral. Loan repayment periods will vary depending on the collateral, the size of the loan, and the degree of risk as perceived by the lender. In some cases, the Small Business Administration (SBA) will provide loan guarantees through one of its lending programs.

Before making any debt refinancing plans, make comparisons not only between the interest rates but also between the terms of the various offers. Read all refinancing agreements very carefully.

Source : www.allbusiness.com

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Home Mortgage Refinancing

Home mortgage refinancing is an available option for the consumer who is looking for a way to save money by getting a better rate on their current home loan or choosing an equity line of credit, cash out refinancing or taking out a second mortgage. The first step in researching this process is to do a search on the Internet. There are many lenders online that offer many options for refinance. Homeowners should research lenders for reputable business practices and opt for a free online quote that will show a comparison by lender on rates. With rates still being low, it is a good time to refinance.

Some lenders offering to refinance advertise no fees. If refinancing fees do apply they will consists of appraisal fees, credit report fees, title fees and taxes. Some lenders charge application fees as well. Compare lenders regarding fees to get the best available deal on home mortgage refinancing. There will also be closing costs to take into consideration. Some consumers consider a second mortgage in order to cover closing costs and down payment costs. A second mortgage may also be a consideration to obtain extra cash for college expenses or paying off high-interest credit cards, depending on the needs of the borrower.

Choices involving home mortgage refinancing may include a home equity line of credit. A home equity line of credit is based upon equity being the collateral for the loan. A cash out mortgage is another refinance option. A cash out means borrowing money thus increasing the house payment, which is usually based upon equity in home. A third option involves taking out a second mortgage. The borrower may wish to use this option for debt consolidation or just to acquire cash for home improvements, etc. Do a search online today and find out about the many options. "And how I kept back nothing that was profitable unto you, but have shewed you, and have taught you publicly, and from house to house". (Acts 20:20)

Many information websites offer services that help the borrower to make a more informed decision. A mortgage calculator will be of assistance in assessing income, monthly payment, early payoff, loan comparisons, loan breakdown and an amortization schedule. These will help the borrower get a better idea about the process to refinance. Verification is necessary regarding proof of income. Recent paycheck stubs as well as tax returns for the last two years are required. Any supplemental income will need verification as well, such as, commissions, child support, alimony, and overtime to approve home mortgage refinancing.

Source : www.christianet.com

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Mortgage Tips - The Tax Deductible Mortgage Strategy

by: Gregory Van Duyse

If you are interested in

- Paying down your mortgage faster (taux hypothécaire)
- Reducing taxes
- Preparing for retirement

And who wouldn't be? Read on.

Through the use of a specialized mortgage strategy called the Smith Maneuver, you can achieve all of these goals. And you can do them all together! - taux hypothécaire

The strategy is named for a British Colombia financial planner, Fraser Smith. He developed this interesting home loan strategy a few years ago (see the press release). I had the good fortune to hear Fraser give a speech about it at a recent conference in Toronto, where I was one of three mortgage consultants from Quebec.

This strategy, formed for a mortgage product that can expressly use it, allows the mortgage holder to make an investment or pay business expenses and, over time, achieve a tax benefit from the related interest expenses. There are a number of ways in which this works, but if it is approached in the right manner, you can limit your risk while increasing how efficiently the strategy works for you. There are many parts to this strategy, so it is best that you phone and discuss your individual circumstances and how they can be addressed using this strategy. We work with financial planners who can analyze your financial needs and put the right package together for you - taux hypothécaire.

Advantages

• Pay down your mortgage faster
• Reap tax savings
• Save for retirement
• Best for high income people
• Best for self-employed, but can be utilized for salaried employees as well
• Has been approved by tax lawyers, accountants and financial planners
• You can begin the strategy any time, but the sooner the better
• It can be set up on an automated program
• There are no additional fees to be paid

Disadvantages

• It is best for those with a mortgage that is 75% of the value of their home

• The strategy requires that the borrower can increase his payments by 2% per annum

• If the investment component is used (mandatory in the case of a salaried employee), there is always the risk associated with the investment

• In order to lower the risks associated with the investment, this strategy should be used over the longest possible period (10 to 15 years or more)

• It requires a good understanding of certain principles of investment, or the assistance of a financial planner

How to use this strategy for the long term

There are many ways to work with this strategy, applying it to each situation, each type of home loan and each status of employment. The higher your taxes are, the better the strategy works. You can use this strategy in combination with other mortgage strategies depending on your own needs - taux hypothécaire.

What is our conclusion?

Thanks to the work of Fraser Smith, we now have help in addressing three important questions that concern many of us:

- Is there a way to pay down my mortgage more quickly?
- How can I reduce my taxes? - taux hypothécaire
- Are there ways that I can accumulate additional funds for retirement?

This is a wonderful idea, but there are many was the Smith Maneuver can be used, differing from case to case. Your best bet would be to contact us and learnthe way that would work best for you.

Source : www.streetdirectory.com

Read More...

Euro Nations to Guarantee Bank Refinancing

PARIS: Nations in Europe's single-currency zone have agreed to temporarily guarantee bank refinancing and pledged to prevent banks failing as part of a raft of emergency measures designed to ease the credit crunch.

Sunday's solution was Europe's most unified one so far to the global financial crisis and tackles a key part of the problem: banks' reluctance to lend to each other. That has helped fuel the crisis that has pulled down some of Wall Street's most storied names and is pushing the U.S. and Europe to the brink of recession.

After the Dow Jones industrial average completed its worst week ever, plummeting more than 18 percent last week, world leaders scrambled all weekend for a way to unblock money markets before they open on Monday.

At an emergency summit of leaders of the 15 euro zone countries in Paris on Sunday, European governments agreed to guarantee new bank debt until the end of 2009, allowed governments to help banks by buying preferred shares, and vowed to rescue important failing banks through emergency recapitalizion.

But it stopped short of a one-size-fits-all solution: It's up to individual governments to announce how they will implement the measures.


"I want to tell our compatriots in all the countries of Europe that they can and should have confidence," summit host French President Nicolas Sarkozy said.

Sarkozy hoped the momentum from Sunday's meeting wouldn't stop at Europe's borders, and renewed his call for a summit with major world economies to help rebuild an international financial system "to make European ideas triumph."

European Central Bank Chief Jean-Claude Trichet welcomed the unity of Europe's leaders — but warned there is more work to do.

"The force of unity that we showed today is a fundamental element of confidence," said European Central Bank Chief Jean-Claude Trichet.

But "there are still many things to do," both by governments and central bankers.


European Commission President Jose Manuel Barroso said: "Our analysis isn't of an immediate miracle."

The plan follows Britain's 50 billion-pound (US$88 billion) plan to partly nationalize major banks and promised to guarantee a further 250 billion pounds (US$438 billion) of loans to shore up the banking sector.

But there was no sum given on how much the EU measures would cost, and Sarkozy said each country would decide how much it would spend.

British Prime Minister Gordon Brown, who met with Sarkozy earlier Sunday, said: "I believe that there is common ground now about what needs to be done, that it has to be comprehensive, and it has to be all countries working together to get to the bottom and solve what is a global financial problem."

Sarkozy said the measures — which also include new accounting rules for banks — will be enacted "without delay" in the 15 countries using the euro.

On Monday, the governments of Italy, Germany, France and others will present their individual ways of implementing the measures. The rest of the 27-member EU will have a chance to sign up to the measures when the countries meet Wednesday.

The statement by EU leaders said they agreed to "avoid the failure of relevant financial institutions, through appropriate means including recapitalization."

Governments would guarantee "for an interim period and on appropriate commercial terms" new debt issued by banks for up to five years.

"This scheme would be limited in amount, temporary and will be applied under close scrutiny of financial authorities until Dec. 31, 2009," it said.

Sarkozy said the measure taken by the leaders is "not a gift to banks."


"Banks need to be loaned money," he said. "So that this confidence is restored, states will have the possibility to guarantee the loans that banks take out, guarantee them under different forms."

German Chancellor Angela Merkel said the measures "will allow markets to start functioning again, that was our aim. It is a strong message to the markets."

As the financial crisis drags down the global economy, world leaders are scrabbling for a way to stop the panic. But efforts to agree on a coordinated global response have stumbled as leaders seek to address the unique challenges of their own countries.

"It's not easy," said Sarkozy. "We have different traditions. For some of us we don't have the same currency. We have different regulators."

But, he said, "In a situation of urgency we had to take responsibility."


Even within the 27-nation EU, some countries are facing the collapse of a housing market, some have had to step in to save banks, while others have faced different problems.

Finance ministers from the Group of 20, which includes rich countries and major developing nations such as China, Brazil and India, meeting in Washington this weekend, pledged to intensify their efforts to unblock a frozen financial system before it does more damage to an increasingly shaky global economy — but made no concrete offers of new moves.

Associated Press writers Tobias Schmidt, Elaine Ganley and Emma Vandore contributed to this report.

Source : www.iht.com

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Refinancing Options

Get the best mortgage deal for your dollars

A couple shaking hands with a Buyer's Agent

Refinancing your mortgage could allow you to access cheaper interest rates, new options such as offset accounts or even allow you to unlock additional equity in your home to renovate, buy an investment property or consolidate debt. The most important thing to review when considering refinancing is to identify if there is enough equity available in your property to go ahead. Secondly, a review of your credit history will also be required, so make sure it is in good shape. Thirdly, do the sums carefully.

Why refinance?

People usually want to change loans when they are refinancing or consolidating their debts. Typically they are refinancing to:

* borrow more money to renovate, invest or for business
* consolidate separate loans (car, personal, business)
* take advantage of lower priced loans or better structured loans in the market

Review your position every two years

If you already have a mortgage, you should review your entire finance position every couple of years. If you simply suspect you could be getting a better deal, or a fixed-rate loan term is coming to an end, you definitely should check out your options. You can easily do that confidentially by talking to your local mortgage broker.

The costs of changing from one loan to another

One of the major decisions in refinancing is the cost. Know the cost and do the sums; when you refinance, be prepared for the fact that it nearly always costs you money at the start - to exit your current loan and set up a new one. Costs can range from minimal to thousands of dollars, depending on the circumstances surrounding your change.

Bank/lender fees to watch out for

Apart from discharge fees, some loans do have exit penalties or deferred loan establishment fees. You can pretty much bet that, if your loan had some kind of up-front rate discount or very low interest rate, there will be exit fees. Costs to change could be minimal under a number of good circumstances, especially if the new loan is with the same lender and the amount is the same, with minimal structural changes.

Assess your situation confidentially with a professional

If you are concerned or not sure, the first thing to do is assess your options thoroughly with someone who understands your situation. Talk to your accountant, then talk to your local mortgage broker. A good mortgage broker will have loans assessment software and they will be able to use their technology to do the sums for you.

A competitive market

The home loan market is very competitive. There are literally thousands of home loan options to choose from and the fastest way to get to the best decision for you is to get assistance. So talk to a local mortgage broker before making a final decision.

Source : www.ourbrisbane.com

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What is Mortgage Refinancing?

Mortgage Refinancing is defined as the process wherein the borrower applies for a new loan usually at a lower interest rate in order to pay off an existing loan with a higher interest rate. The other common reason when a borrower opts for a mortgage refinancing is when the borrower wants to change the loan from a variable loan to a fixed loan. The lenders or the loan providing companies are attracting an ever-increasing number of customers by offering a lower interest rate. Majority of the masses prefer to avail a secured loan rather than opting for an unsecured loan as a secured loan can be availed more easily at a lower rate of interest.

A major benefit to avail a mortgage refinance is that it improves the credibility of the borrower. He or she might be facing difficulty in paying of the monthly installments that keep on varying if it is a variable mortgage loan. On the other side, the ability to pay back the loan in a shorter duration of time improves the credit rating of an individual. A mortgage refinance can be availed by an individual offering his or her property as a collateral security to the lender. Property is offered as a security to protect the individual interest of the lender who can claim rights of lien over it in case the borrower fails to pay back the entire amount of the loan or goes bankrupt.

However, it needs to be noted in the light of the above-mentioned benefits that before deciding whether or not to select mortgage refinancing, you must take into consideration various important factors.
These are:

• the penalty clauses mentioned in the terms of agreement
• the degree of risk involved
• the mode of mortgage refinance

For instance, there have been reported situations wherein the borrower ends up paying an increased amount of installment over the periods of time after availing the inaugural discount.

Rest assured, it can be stated that mortgage refinancing is a boon for the borrowers who are bearing unusually higher interest rates charged by the lender and face a higher risk of losing the property they have offered as a collateral.
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