Don’t Let FOMO Affect Your Decision Making

Lately a lot of my clients of had a difficult time deciding between fixed and variable when choosing their mortgage option. I certainly can sympathize with the decision that is not easy one to make. It seems that it all comes down to fear of missing out a relatively new phenomenon that we are experiencing in the world at large. FOMO has become a term popularized by the fear of missing out on interesting events, especially aroused by usage of social media. In my example here, social media does not have anything to do with the choice of fixed vs variable. Rather, FOMO here revolves around getting the best deal and making the best decision.

For example, if someone takes a variable rate today, there are always worries that the rates might go up by too much, too fast. If someone takes a fixed rate, have they really captured the bottom-end of this market?. My opinion this is the totally wrong way of looking at things. You’re not missing out at all, you’re getting the best rates we’ve ever seen in our lives and we may never see them again. Whether you go fixed or variable, neither of these are wrong. The Bank of Canada has made it much more difficult to qualify for variable rate, because it is inherent that the rate that may rise. It wants to make sure that you are able to afford when rates go up and inevitably rates will go up it is only a matter of how fast and when.  I say, don’t let FOMO rule your decision making.  Speak to a financial planner like Shannon Lee Simmons and figure out your budget before you make that choice to buy something.  She can set you straight with what…


So You Wanna Make An Offer…

I got a call today from a client who wants to take out their RRSPs to make an offer on a house, but, we aren’t sure if their offer will go through.  Now what? Will Revenue Canada tax him on the funds he withdrew? Can he put them back if this offer doesn’t go through? What if he finds another house he wants to buy, how does he get his money back again? If he decides not to buy anything can he fund his RRSPs again and not face any penalty? All good questions to which I have the answers!

Revenue Canada is surprisingly accepting of what’s happening in our surreal estate market these days. They know and understand offers come and go, deals fall through, and do not wish to tax someone for a house they did not end up buying for one reason or another within limits of course.

The following are the steps to ensure that if you remove funds from your RRSP via the Home Buyer’s Plan (HBP from now on), and your offer does not go through:

1. Remove from the HBP using theHome Buyer’s Plan Forms.

2. Fund your account and make the deposit on offer.

3. If your deposit does not go through, keep the funds in your account (preferably a savings account so you don’t use them).

4. Should you not end up making any purchases you can then fund your RRSP account again, but (and this is important), keep the receipt that you funded the same amount you took out.

6. Along with the receipt plus relevant paperwork about your lost offers (dates, emails, offers etc), send a letter to Revenue Canada explaining what happened and why you’re funding your RRSP back.

7. This letter must…


Why I Do What I Do

It has been quite some time that I have put some writing on this blog. Simply put, the summer has been exceptionally busy and I have been dedicating my time to serving my clients as well as spending some quality time with my son who his growing up at lightning speed (matter of fact, today was his first day of school!). Since he’s starting that, I thought I would start today’s blog entry with a straight-from-the-heart post:

Why I Do What I Do

I do what I do because I love what I do. Wouldn’t you rather buy a car from someone who loves cars? Someone who loves cars so much they learn all about the cars they sell and also the cars they don’t sell? Someone who you can see their passion for what they sell shine when you meet them? I hope it’s the same feeling with me. Mortgages may seem like a really boring topic let alone a really unsexy word in itself (it really could use a rebranding) but the concept isn’t boring. Imagine bricks and mortar being responsible for your wealth creation? The results are certainly worth waiting for (and investing in).

I do what I do because I want to uncomplicate things for people who find things like this complicated. Finances can be a scary thing to some, and an exciting thing to others.  The ones who are scared of finances are the best clients for me – because I feel like after a 30 minute chat I can empower their lives with amazing options and make their decision-process that much easier. I do what I do because I love seeing equity grow like a tree. There are hundreds of people I have met in low-rent apartments and now I meet them in their…

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