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Tag: consolidate debt

  • Toronto Housing Market Cooling? Now’s the Time to Get Mortgage Financing Locked Down

    Back in April, after much discussion and prompting from outside sources, the Ontario government instituted several measures to cool a continually hot Toronto housing market. These measures are an attempt to temper rising prices which are becoming more and more prohibitive for the average Canadian and to reduce the impacts of a potential crash.

    As noted in a recent CTV News article, “the 16-point Fair Housing Plan to tame the Greater Toronto Area’s expensive real estate market, including measures such as expanded rent control and a foreign buyers’ tax,” has already had an impact.

    Furthermore, back in June, the Toronto Real Estate Board reported that “active listings in the GTA surged 42.9 per cent from a year ago and sales plunged 20.3 per cent in May compared to the same time last year. Although the average selling price for all properties for the month of May was $863,910, up from $752,100 last year, it was still down from $919,614 in April, according to the real estate board.”

    The data suggests that a cooling has already started and is likely to continue. With the market cooling, now’s the time to think about getting mortgage financing locked down.

    Why? As it currently stands, the Toronto housing market supports high home values. However, if it continues to cool and home values fall, homeowners will have less home equity to take advantage of.

    This is a particularly sensitive issue for those considering refinancing to consolidate debt – an option which has become very popular with the current housing values. More equity typically means more access to funds in order to consolidate, and often a better interest rate.

    Moreover, if Canadian interest rates continue to rise, and thus mortgage payments rise, more equity may not necessarily cover what you need it to.

    If you want to borrow money, borrowing while the market is high is your best bet. As mentioned, if the market cools significantly and that equity is no longer available, or the interest rate increases again, you may have fewer options to deal with the debt.

    A second mortgage is a great way to borrow against your assets without the penalties associated with breaking your first mortgage. If you’ve been considering a financial move to strike while the iron is still hot, don’t take too long to do so.

    At DebtCare, we can help you discover how to make your home work for you.

    Get in touch with us today by calling 1 (888) 890-0888.

    Source: CTV News, “Cooling measures already affecting hot Toronto housing market: survey,” http://www.ctvnews.ca/business/cooling-measures-already-affecting-hot-toronto-housing-market-survey-1.3473582.

     

  • What a 1% Increase in Interest Rates Would Mean to Canadians

    We’ve been hearing reports for months now that the Bank of Canada is likely to raise the Canadian interest rate in the coming months, and just a few weeks ago it finally happened. As it stands, Canada’s interest rate is sitting at 0.75%. The previously low rate made it possible for many Canadians to enter a turbulent housing market that continues to grow. However, amidst speculation that the rate could be set to rise again in the near future, many are questioning their ability to hold steady financially.

    What many Canadians don’t realize is that a 1% rate increase, for example, does not signify a 1% increase in payments. The reality is far more troublesome. In fact, a 1% rate hike could actually result in a 10%+ increase in mortgage payments. For instance, if you have a $200000 mortgage, at 3% interest, you’re paying $6000 in interest per year. However, if that rate increases to 4%, the interest grows to $8000 per year, which means you’re actually paying 33% more.

    A recent study done by Manulife Financial highlights how worrisome an increase to interest rates could be for a large portion of Canadian homeowners. According to the study, nearly 75% of Canadian homeowners interviewed said they would have difficulty making their mortgage payments if those payments were to increase by more than 10%.

    A further 38% said they could handle a mortgage payment increase of between 1 and 5% before they would have financial difficulty, while 20% said they could sustain an increase between 6 and 10%, and an additional 14% said that any hike would be a problem.

    As you can see, the study highlights just how unprepared many Canadians are if their debt repayment responsibilities were to increase.

    Furthermore, the Manulife survey found that millennial homeowners would be in the most trouble. This group would have the most difficulty, with 45% saying making their mortgage payment would become impossible within three months or less if the primary income-earner in the family were to suddenly become unemployed.

    If these numbers are cause for concern, perhaps you’re best served by examining the options to reduce or realign your current debt. For example, refinancing your mortgage to consolidate debt while interest rates are still low can significantly reduce your monthly payments and make even a 10% increase far more manageable. With housing prices high, this results in significant equity, meaning refinancing is usually far more feasible. If housing prices drop, this equity will also drop.

    With interest rates already going up, there’s no telling what’s to come. If you’re worried that a further rate increase could drastically impact your financial situation, don’t wait – get things sorted now while the market is still in your favour.

    At DebtCare, we can help you discover how to best situate yourself for financial stability.

    Call us today to discuss a solution: 1 (888) 890-0888.

     

    Source: The Huffington Post, “Canadian Homeowners Would Be Screwed By 1% Interest Rate Hike: Poll,” http://www.huffingtonpost.ca/2017/05/24/canadian-homeowners-rate-hike_n_16782802.html.

     

  • DebtCare Services May Be Covered Under Your EAP Program

    debtcare-services-ftDid you know that DebtCare Canada is a service provided through many Employee Assistance Programs?

    If you are having trouble rehabilitating your credit report or are struggling with debt and only getting by on minimum payments, you know that these things can take their toll. Financial issues have long been known to impact productivity levels at work, put stress on one’s family, not to mention cause trouble sleeping and constant anxiety which can both lead to overall health issues.

    It is for this reason that DebtCare exists – to help you deal with those financial issues that are keeping you up at night.

    At DebtCare, your consultation and information is completely confidential. Your coverage may include up to 3 hours per year for the following issues:

    Debt Relief Program

    The accumulation of debt usually happens over time, and by the time we finally start to realize the trouble we’ve gotten into, it is too late to turn things around on our own. Thankfully, there are programs out there that can help get rid of that debt and get you back on a strong financial foundation.

    Debt relief programs will:

    • Consolidate your payments into a single monthly payment
    • Reduce your debt up to 70%
    • Stop interest
    • Stop collection action
    • Stop enforcement like frozen bank accounts, wage garnishments and more…

    Loans & Financial Products

    If your credit isn’t quite where you’d like, it can be tough to obtain financing for various items. Even if the bank says no, that shouldn’t be the end of the line – and with DebtCare, it isn’t.

    If you want to consolidate debt, pay off taxes or even finance home renovations or your child’s education, DebtCare offers some of the most competitive financial programs, even when credit is less than stellar.

    Programs:

    • First mortgages
    • Second mortgages
    • Home equity lines of credit
    • GIC loans – credit rebuilder
    • Secured credit cards – credit rebuilder

    Credit Fix Program

    When you have errors on your credit report, these can be major inhibitors to your ability to obtain financing and can significantly impact your credit score. Having them removed can be a hassle, but DebtCare’s credit repair program deals with the following credit issues:

    • Errors on your credit report
    • Old items continuing to report
    • Duplicate items reporting
    • Disputes
    • Past bad credit – late payments, defaults, bankruptcies
    • Rebuilding credit after bad credit history and more…

    If you are interested in learning more about any of these programs or to find out if they are covered.

    Contact DebtCare to find out what services we can offer you – your first consultation is always free. 1-888-890-0888.

     

  • The Best Valentine Ever – A Clean Financial Slate

    debt2It is almost Valentine’s Day, and that means that everywhere you look, love seems to be in your face. If you are in a relationship that is rosy, this may just put a smile on your face and make you giddy inside. If, however, you’re at the other end of the spectrum, struggling with relationship stress, this may just make you feel down in the dumps.

    If you and your partner are having trouble, Valentine’s Day is not usually something that sparks a flame of passion. It can sometimes have the opposite effect, working to highlight how ‘happy’ everyone else is in comparison to you.

    Ok, so far this hasn’t been the happiest of articles, but we are going to try and help, we promise. This does have an optimistic point.

    A number of studies done in Canada over the last few years have narrowed down the top 5 reasons for divorce:

    • Growing apart
    • Abuse – emotional or physical
    • Infidelity
    • Mid-life Crisis
    • MONEY

    Some of these may not be workable as far as fixing an issue, but since our business is helping people with financial problems, we can at least work with one!

    Money is a major cause of strain in many relationships, so if you are constantly arguing over money, know that you’re not alone. According to CBC News, “The recent economic downturn has proven to be a stressor for families. The higher cost of living means most families now require two income earners to achieve an average standard of living. More families are also struggling with debt and poverty.” People are dealing with financial pressures on a daily basis, and this is causing pressure on relationships.

    Ok, we said we were going to help, and so far we’ve just given more bad news. That stops now. If money is a cause of concern in your relationship, leading to stress and strain, we can help. If money has been the root cause of marital problems then it should be a top priority.

    1. Sit down together and make a realistic budget. Include everything and take a positive approach to setting goals for the next year – this will give you something to work on together.
    2. Consider using your home to clean up those financial issues that are causing problems in your relationship. If you own your own home, you’ve got access to a consolidation product that can save you a lot of money and time. Using your home equity is one of the cheapest ways to consolidate debt, provided that the instrument is handled more like a loan with shorter terms and therefore lower interest.
    3. Speak with a financial specialist to get a plan in place to conquer your debt and clear up your financial stressors.

    Debt and financial issues will put a strain on any relationship – just don’t let it ruin what you’ve worked so hard to build. Remember, you are not alone.

    Call DebtCare today and make Valentine’s Day a day to celebrate again. 1-888-890-0888.

     

     

  • How to Consolidate Debt and Start the New Year Fresh

    debt12016 is fast approaching, and that usually means setting goals for the year ahead and making plans to get certain things back on track. For many Canadians, this means taking a good, hard look at finances and often attempting to take control of unruly debt by consolidating it. Often the first thing people wonder when considering this option is how to consolidate debt to best suit their own needs.

    There are different ways to consolidate debt depending on your credit, assets and cash flow. Each offers its own pros and cons. If you are considering debt consolidation to help start 2016 on fresh financial footing, here are a few of the most popular options:

    Mortgage Financing

    Mortgage financing usually means taking out an additional mortgage alongside the one you currently have.

    • Pros: One low payment, lower interest than a loan or line of credit.
    • Cons: Expensive closing costs, uses up equity, stretches out debt repayment over a really long time, harder to get for those with bad credit, home ownership a prerequisite.

    Personal Loan/Line of Credit

    This option usually involves heading to the bank or a private lender and taking out a personal loan or line of credit to consolidate.

    • Pros: Usually easy to get compared to a mortgage, not a long process, no upfront fees to borrow.
    • Cons: Generally higher interest rates, and if revolving can become a temptation that is hard to resist for many.

    Consumer Proposal

    • Pros: One payment, no interest, stops collection action, reduces debt, often a lower monthly payment
    • Cons: Temporary impact to credit.

    Bankruptcy

    • Pros: One payment, significantly less debt, stops collection action, no interest
    • Cons: Reporting obligations to the trustee, impact to credit, the amount to be repaid in bankruptcy can change – for example, if you make more money or acquire something the trustee can ask you to repay more surplus income.

    When debt consolidation seems like the best route to take to re-establish your finances and achieve financial stability, these may be the options you consider. Each of these has some important advantages, and the choice will largely depend on your own circumstances and future goals.

    Our best advice – get professional advice. A financial consultant with experience helping people regain their financial footing is the best person for the job – take advantage of their knowledge and expertise and get a plan in place that helps you achieve your goals.

    Want advice you can trust? Call DebtCare Canada today at 1-888-890-0888. We can help you get ready for 2016!

     

  • Debt Relief 101: Refinance Your Mortgage to Consolidate Debt

    Consolidate DebtWhen your debt begins to climb at a rate that seems to be spiraling out of control, or if you are just tired of shelling out money without seeing totals decrease, it might be time to consider a different approach. Making minimum monthly payments is not actually going to get you out of debt – and realizing this, many Canadians have chosen to refinance their mortgages as a way to consolidate debt – but is this the right option for you?

    There are several reasons why refinancing your mortgage to consolidate debt can be a smart option. Firstly, because you are consolidating you are getting rid of that laundry list of monthly payments and consolidating them into one, tidy payment. This can make keeping track of payments far easier – and less stressful. Secondly, you can save huge on interest. If you are carrying a number of different credit products, all with varying interest rates, all applied at different periods, you are paying out far more than if you have one larger total at a single interest rate.

    With these major positives, there have to be some negatives, right? Well, as appealing an option as mortgage refinancing may be, its benefits are only open to those who qualify. What do we mean? Well, since mortgage refinancing requires upping the lending limit on your current mortgage, you have to actually have a mortgage to qualify (so renters are out). You can’t get a mortgage to consolidate debt, so unless you own your home, this option is not available.

    Another issue that many have when attempting to refinance is the fact that your credit needs to be great – but if you are maxed out or have missed payments, the lending institution isn’t necessarily going to have much faith in your ability to repay your debt. Yet another deals with the fact that stricter CMHC lending guidelines have decreased the total refinancing limit to 80% of a home’s value, so if your debt will put you over this threshold, a total consolidation is not feasible.

    So, is mortgage refinancing to consolidate debt the best option for you? Despite the downsides associated with qualifying, if you can secure funding it may very well be the most intelligent option. It is also better for your overall credit versus a consumer proposal or bankruptcy – so that is also very attractive.

    When you are considering the various options available to get out of debt, mortgage refinancing is one that should be on your list – just be prepared if your credit isn’t stellar or if there is no equity in your home.

    For more about mortgage refinancing to consolidate debt please contact DebtCare by calling 1 (888) 890-0888.

  • Debt Consolidation Companies in Canada

    DebtCare Canada is a financial consulting company in Canada that helps Canadians consolidate debt and achieve financial relief. Before contacting debt consolidation companies, consider DebtCare. Watch this short video where Michael Goldenberg, president of DebtCare Canada, discusses the services and solutions offered by debt consolidation companies in Canada including DebtCare Canada.

    If you need more information about debt consolidation companies in Canada or need a debt consolidation, please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Debt Consolidation Options in Ontario – We List the Different Types of Debt Consolidations

    In Ontario, when consumers or businesses finds themselves in financial trouble there are a number of financial options available to help deal with their debt. In this article, we list the different types of debt consolidation to help you understand which options are available to you if you are having problems managing your debt.

    Debt consolidation option number one – use your home to consolidate debt. If you have some equity in your home, it is a very effective choice for consolidating debt. Refinancing your first mortgage, taking out a second mortgage or a home equity line of credit will enable you to obtain low  interest financing to consolidate your debt. Mortgages enable you to amortize your monthly payments so you will often have more flexibility when negotiating the amount of those payments.

    Debt consolidation option number two – an unsecured loan or line of credit. Where this option is concerned, do lots of research. There are finance companies that offer unsecured consolidation loans at sky-high interest rates. Interest rates that are higher than what you may be paying on your credit cards. They may try to sell you on the benefit of a single monthly payment, which may be lower than what you are paying now – but this could cost you big time in the long run. If you cannot pay your minimum monthly payments any longer and your bank does not approve you for a prime rate loan or line of credit to consolidate your debt, take time to think about your choices before jumping into a high interest consolidation loan with a finance company.

    Debt consolidation option number three – credit counselling. Credit counselling agencies are not for profit organizations who obtain funding from the big banks. They will offer you a single monthly payment and pay your debts on your behalf. While you may think that you have received a debt consolidation loan because you are making a single monthly payment, this is not a consolidation loan. Your creditors will receive significantly less than what you owe and these credit counselling programs will cause major damage to your credit report. The repayment could be over 5-6 years and the credit counselling program will be reported on your credit report for 3 years from the date it is paid in full.

    Debt consolidation option number four – consumer proposals. Like credit counselling this is not a consolidation loan but many trustees in bankruptcy promote them as though they are because they involve a single monthly payment lower than what you have been paying on a monthly basis. They are a better choice than a credit counselling program because, if negotiated properly, they can significantly reduce the overall amount of debt that you owe. Like credit counselling, a consumer proposal will stay on your credit report for 3 years from the date it is paid in full, however, they do often offer shorter repayment terms. They also offer you protection from your creditors and will stop a wage garnishment or other enforcement option because they are federally mandated whereas credit counselling is not.

    How do you know which debt consolidation option is the right one for you? For starters, consider a debt consolidation the same way you would a big ticket purchase. This truly is an example of buyer beware, because when you go to a bank, finance company, credit counselling agency or Bankruptcy Trustee, their objective will be to sell you their products and services. When working with a financial consultant or debt counsellor you can determine the right option and obtain professional guidance to secure the best outcome.

    For more information about debt consolidation options in Ontario or to obtain advice with respect to your personal financial situation contact Michael Goldenberg at DebtCare Canada by calling 416 907 2582 or visit www.debtcare.ca