Be Aware of Mortgage Penalties

Sometimes the deal is just too good....

Remember when people keep telling you to ALWAYS read the fine print? This is just such an example. Danny Kellman recently relayed a story about a mortgage client who did not read the fine print, sold their house based on a job transfer and then was shocked to find that the pay out penalty was 10's of thousand of dollars and not the three months interest that they were expecting.

Danny Kellman went on to say some mortgages carry a full payment of interest until renewal of term, so that in those cases 2 or 3 years of interest payments may be due as a penalty to the lender on discharge. Read your contract carefully is the advice!

Danny then directed my attention to a recent CBC video on this exact topic. This video is available here; http://www.cbc.ca/national/blog/video/consumer_watch/mortgage_contracts_the_

fine_pr.html and is from the Consumer Watch with Reporter Reg Sherren taking a closer look at the fine print on many mortgage contracts, and finding many Canadians don't realize how costly it can be to renegotiate.

Danny stressed the importance of having a Mortgage Specialist in your corner and reflected on the success of her group Mortgages 4 Women and their focus on an entirely female based clientelle. Danny remarked "with more women working in the financial district in downtown Toronto, we decided to relocate our offices to Bay Street to be closer to the clientelle we serve.

Be careful out there, as it was not the case for this particular situation but these clients signed a contract which allowed the bank to get their money. The issue was that the couple did not get professional advice before signing the contract. This types of advice is priceless as they could have saved thousands. Call Danny or Marcy for all your mortgage explanations or needs.

Danny D. Kellman, MBA, AMP, EPC [ddkellman@mortgages4women.ca] is a principal with

The Mortgage Diversity Group Their blog is Mortgages 4 Women, Toronto, Ontario. Danny Kellman and Marcy Berg concentrate their efforts on bring information and knowledge to the growing base of women only mortgage business.

Danny Kellman can be contacted at 300 - 40 Wynford Dr., Toronto, ON, M3C 1J5

Phone: 647-929-5346 Toll-free: 1-888-372-7367 ddkellman@mortgages4women.ca

First time buyer? Time to divorce your landlord and say, "I do" to real estate!

We understand how difficult it can be when you've never purchased a home before. For women especially, it can be a real internal struggle. If you are single, you must make all of the important decisions alone, so you need to seek as much information as you can find about the whole process. You want to deal with people you can rely on and who have the knowledge and experience to cut through all the gobbledygook and give you the information you need for peace of mind.

Let us help you. Being women, we understand the needs of women. We have years of experience in mortgages and with over 40 lenders, we can find you the mortgage that offers you security and the best rate. Call us now at 1-888 372-7367 and see why Mortgages for Women is a woman's best choice for mortgages.

I was graciously invited to a morning meeting with Marcy Berg of Mortgages4Women this morning at the Grenedier Restaurant in High Park in Toronto. The entire conversation was consumed with the benefits of women dealing with Trusted Business Advisors with their life plan, goals and decision making process.

Marcy shared some interesting details with me about the demographics of the group she serves. They are; an average of early 30's with property ownership aspirations but tend to live in the 905 and work in the 416. They are aware that real estate is the best form of equity acquisition in the long term.

Marcy Berg has assembled an entirely female staff of Financial Planners, Mortgage Brokers, and Lawyers, to advise you correctly about what is proper and appropriate for you as a five and ten year plan. Those especially effected are women with nearly college age children that need post divorce financial understanding and explanations.

Marcy and I met during the course of one of my video's about; Common Law Do you need his permission to sell the house. No you don't. This was a candid conversation, Q&A with Stan Gelman Lawyer Mississauga

This relationship has developed to "How can we jointly provide value to Readership and Ultimately our Clientelle". Marcy has recently acquired commercial space at 401 Bay Street, Toronto to be in heart of the Financial District of Toronto. With onsite staff and financial planners readily available for appointments, women can slip in during the work day to have their matters attended to.

The Mortgages 4 Women Group will attend with your financial planning assessments, portfolio reviews, mortgage applications and choices, assistance with First Time Buyers, Debt Consolidation and Business for Self.

David Pylyp works in the west sections of Toronto including Bloor west Village, Roncesvalles Village, the Humber Bay Shore Community and points west into Mississauga and Oakville. David be reached directly at 647 218 2414

6 Tips to Pay off Your Mortgage Debt

Practical Advise to Pay off your Mortgage Faster

Most homeowners would love nothing more than not to have that mortgage debit in your account every month. But trying to pay off your mortgage ahead of schedule is not something to be undertaken lightly. You must make sure you are financially secure, with no other significant debt, and have money in reserve for emergencies. Above all, IT will take discipline.

There are also compelling arguments for not paying off your mortgage ahead of schedule. If you are inclined to take some risks, you could invest the money instead. Your investment could conceivably earn enough money to offset the benefit of paying off the mortgage.

In your haste to be rid of your monthly mortgage burden, you cannot afford to mortgage your financial future. Make sure you will be able to finance your children's college education and your own retirement, Investigate the newest (TFSA) Tax Free Savings Account.

If you are in a debt-free financial position where you can pay off your mortgage more quickly without sacrificing other aspects of your life, there are a few ways to accomplish this. Naturally, you will have to consult your lender to see what you can and cannot do. Here are a few of the most used options.

1. Increase your payment schedule. Biweekly mortgage payments have become increasingly popular as a way to pay off a mortgage more quickly. OK OK... we all know that one. One extra payment a year.

2. Make lump sum payments. Depending on the terms of your mortgage agreement, you may be able to make lump-sum payments at specific times. For example, you could earmark your bonus cheque of $5,000 to pay off part of your mortgage. Let's approach this a touch differently. Let us suppose we open a credit line of $10,000, (pay it on the mortgage Day 1) that we then use to deposit our income/payroll cheques, then pay our regular bills. The goal here is to retire the entire credit line with a 12 month period and borrow an additional $10,000 again to pay against the mortgage. Most mortgages contain a 10 or 15% annual prepayment priviledge without penalty.

3. Shorten the time frame of your loan. You could elect to refinance and change your 30-year mortgage to a 15-year mortgage. Bear in mind, though, that your monthly payments will be considerably higher. Lets try this concept in smaller bites. With a mortgage at year 30 you just bought the house. On the Anniversary Date, shorten the mortgage from 29 to 28 years. By making modest adjustments over the next 15 years you will have retired your entire mortgage.

4. Increase your payments. If your financial situation has improved and you are making more money, you may be able to make higher payments or balloon payments. Most loans will allow you to increase your payments in this manner with certain restrictions.

5. Refinance at a lower interest rate, but pay the same amount each month. If you maintain a 30-year mortgage, but the interest rate drops from 6.25 percent to 5.00 percent, the money you were paying in interest can now go toward the principal. Should You Refinance Your Mortgage Loan? If you are approaching a renewal I recommend that you schedule an interview with a Personal Banking Representative in your home to discuss your options.

6. Use your RRSP-driven tax rebate religiously as a mortgage prepayment method. Even if you can only prepay annually, make sure these funds are set aside for that purpose. Many Canadians will borrow (at prime) to buy an RRSP to ensure the maximum rebate. When applied to the mortgage principal, this refund is a "gift that keeps on giving". Combining the refund with the tax-free interest earned on the RRSP over the subsequent years will quickly outpace the short-term interest costs of the RRSP loan.

I welcome your input if you have additional ideas to add to this plan of debt reduction. Add your ideas in the comments section.