Are you jeopardizing your retirement?

While retirement may not seem like a priority today, the longer you delay planning – the longer you delay retirement.

Mistakes you can avoid:

1. Random RRSP contributions

Are you contributing the maximum of your RRSPs? This is not a tax efficient plan for everyone’s situation. Are you contributing in lump sums days before the RRSP deadline? Frequent or monthly payments let you dollar cost average your contributions which in turn gets your RRSPs to grow more quickly. Are your RRSPs in several different financial Institutions? You need an investment strategy to make sure that your RRSPs are well diversified which decreases your risk in the long run.

2. Not having a plan.

Do you know how much you need to save for retirement? The younger you are, the less you have to contribute. You need to know how your work retirement plan (if you have one) will impact your individual retirement plans. Do you know how much you need for retirement? People are retired for 20 to 30 years now, so it is very important to calculate the impact of inflation and lifestyle during your retirement. Have you started? Even starting small now can dramatically improve your retirement income.

3. Sacrificing your retirement to pay for the kid’s education

Have you asked your children to apply for the Canada Student loan? Some of the loan may not have to be paid back as bursaries are often given out to students. Also – the money is interest free until 6 months after graduation. Have you cashed in RRSPs to pay tuition? If so – then you better get an agreement in writing that you can live with your children in your old age!

4. Not being prepared for emergencies

Do you have the right amount of insurance if you become sick, disabled or if your spouse dies? Retirement dreams can be slashed when an unexpected health issue comes up. Review your work and personal plans on annual basis and buy individual plans if the work plan is not enough coverage. Do you have an emergency fund? A savings account is the solid base of your financial plan. An emergency account can save you from cashing in RRSPs and jeopardizing your retirement.

One of the main questions people wonder when buying a home is "how will I come up with the down payment?" Most people don't realize how many options are available to them for down payment and the list gets even bigger when dealing with a mortgage broker! 5% of the purchase price of a home is the minimum down payment required by all lenders in Canada for a mortgage. Here is a list of the Top 5 down payment options:

1) SAVINGS - Savings need to be accumulated gradually in a bank account, tax free savings account or investment account. Lenders do not allow savings as an option if you have only had the money in your account for a few weeks. Most lenders usually ask for 90 days of your bank statements to verify if all or most of the savings for down payment have been in your account for at least that long.

2) RRSP's - The Government has a program in place called the 'Home Buyers Plan' that allows First Time Homebuyers to use RRSP's for the down payment. Each person/first time homebuyer can withdraw up to $25,000 without penalty. The funds withdrawn for the down payment have to be repaid back to your RRSP account within 15 years.

3) GIFTED FROM FAMILY - You can use part or all of your down payment from gifted funds received from immediate family members such as parents, grandparents or siblings. The person(s) that gifts you the funds will sign a letter for the lender that states the amount of gifted funds and that they never have to be repaid. The lender will also ask for proof of the exact amount of gifted funds deposited into the home buyers bank account.

4) BORROWED FROM CREDIT - Only a select number of lenders will allow you to borrow your down payment from credit sources such as a line of credit. Other credit conditions may apply so if this is the option you would like to go ahead with, I can help find the available lenders to offer this and see if you qualify.

5) LENDER CASHBACK - Mortgage brokers deal with a very select few lenders that offer this type of product. Lenders will offer up to 5% cashback that can be used for down payment, also sometimes referred to as a $0 down mortgage. Usually a minimum credit score is required to qualify for this type of mortgage. The cash back is free from the bank but the interest rate you pay for this product is usually 2% higher than a regular mortgage rate. So, in the end you end up paying that amount back to the lender in interest costs but it is still a great option for those that don't have the above 4 options available to them for a down payment. For more information on these down payment options, please contact Tamara!

Find Trusted Saskatoon Mortgage Brokers here in the SASKATOON MORTGAGE Category on THE Saskatoon directory of excellence.

Marla Janzen is an award winning SASKATOON REALTOR she takes action to sell her client's homes and find them the perfect new place to live while negotiating the best terms and price possible. She loves what she does and takes great pride in providing excellence in customer service to all of her clients. She is one of our TRUSTED SASKATOON REAL ESTATE EXPERTS listed on the SASKATOON DIRECTORY and loves to provide Trusted Tips that help the public!

10 Mistakes to avoid when purchasing a home!

1. Making an offer on a home without being pre-qualified. Pre-qualification will make your life easier – so take the time to speak with a lender. Their specific questions in regard to income, debt, etc., will help you determine the price range you can afford. It is an important step on the path to home-ownership

2. Not having a home inspection. Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.

3. Limiting your search to open houses, ads or the Internet. Many homes listed in magazines or on the Internet have already been sold. Your very best course of action is to contact a Realtor®. I have up-to-date information that is unavailable to the general public and is the best resource to help you find the home you want.

4. Choosing a real estate agent who is not committed to forming a strong business relationship with you. Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving your needs – before, during and after the sale.

5. Thinking there is only one perfect house out there. Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask me for a Comparative Market Analysis (CMA). This compares similar homes that have recently sold, or are still for sale.

6. Not consider long-term needs. It is important to think ahead. Will the home suit your needs 3 – 5 years from now?

7. Not examining insurance issues. Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

8. Not buying a home protection plan. This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.

9. Not knowing the total cost involved. Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Legal fees, Property transfer Tax and HST are just some of the extra costs involved. Remember to carefully examine your Buyer’s Statement of Adjustments.

10. Not following through on "Due Diligence". Buyers should make a list of any concerns they have relating to issues such as; crime rate, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

Find Marla Online at http://www.century21.ca/marla.janzen   she is a Century 21 Fusion Realtor Sakatoon based at 703 Circle Drive, Saskatoon..or checkout her listing in REAL ESTATE SASKATOON here on www.trustedsaskatoon.com   , Marla Janzen is TRUSTED SASKATOON REAL ESTATE EXPERT.

Stay Trusted my friends..SAFE AND TRUSTED SASKATOON

Trusted Tip, Asphalt Shingles

When our trusted inspectors perform a home inspection, we commonly find issues with Asphalt shingles. Typically asphalt shingles last about 20 years however this can vary based on the type. It can also vary based on conditions found at the home such as trees near the house, poorly ventilated attics, sunlight exposure etc. They are classified by the warranty offered by the manufacturer, 10 year, 15 year, 20 year, 25 year, 30 year, 35 year. An Asphalt roof is much more likely to leak at the flashings around pipe penetrations, roof vents, chimneys, wall intersections and valleys than it is to leak in the field of the roof. Even a brand new roof with improperly installed flashings can be leaking.   

When looking at a home you are considering purchasing, have a quick look at the roof from the ground. If you see the shingles curling, loosing the coloured granules, patches, roof tar or growing vegetation you should be suspicious that the roof may need replacement. It is also a good idea when inside the home to look up at the ceiling for signs of water damage or patching.

Replacing a roof on a home is a significant expense and can be more costly if the home as been affected by water damage. Of course it is still always recommended to have the roof looked at during a prepurchase home inspection from a trusted inspector.

Here is a CBC Marketplace investigation on Asphalt shingles ..be wary!

Marla Janzen is an award winning SASKATOON REALTOR she takes action to sell her client's homes and find them the perfect new place to live while negotiating the best terms and price possible. She loves what she does and takes great pride in providing excellence in customer service to all of her clients. She is one of our TRUSTED SASKATOON REAL ESTATE EXPERTS listed on the SASKATOON DIRECTORY and loves to provide Trusted Tips that help the public!

Marlas Real estate Tip: What are closing costs when buying a home?

As exciting as it is to purchase a home, many home buyers are also always looking at the bottom line: how much is this home going to cost me? And while looking at the listing price is a good place to start forming an idea of just how much exactly you’re going to pay for a home, you need to also figure in some additional costs. These are the closing costs, the money you will have to pay in addition to the price of the home, just to make the sale of the home happen.

Knowing about closing costs, and which ones you’ll have to pay, is a huge help when it comes time to make that final purchase. Here are some of the closing costs you can expect to pay, although there may be others that are specific to your deal.

• Home Inspection Fee: This is crucial, especially if the home is not new construction. You need to get a professional home inspector to look over the property so that they can make you aware of any existing or potential problems. Although a home inspection usually costs $300 – $400, getting one can save you thousands in the long run.

• Legal Costs: You will most likely need to hire a lawyer to draft a title, perform searches, and assist the mortgage broker with handling the mortgage.

• Disbursements: Out-of-pocket expenses, such as title searches and registrations are known as disbursements and must be paid by the buyer.

• Appraisal Fees: In order to obtain a mortgage most Canadian mortgage brokers will require that you get an appraisal of the property so that they can have a good understanding of how much the property is actually worth. An appraisal usually costs $100 – $250.

• Land Survey Fee/Title Insurance Fee: A land survey will also be required by any Canadian mortgage broker and if one is not available, you’ll need to get a new one at a cost anywhere from $600 – $900. If a survey is not available some mortgage lenders will accept a title insurance fee, which usually costs a much cheaper $250.

• High Ratio Mortgage Insurance: This is another fee that Canadian mortgage brokers require if your down payment is less than 20%.

• Land Transfer Tax: All provinces and territories in Canada have a land transfer tax associated with all property purchases; the rate varies by province. Residential homes in Ontario carry a land transfer tax that can be anywhere from 0.5% to 2.0%.

• Fire Insurance: Any Canadian mortgage broker is also going to need verification that fire insurance has been purchased for the home before a mortgage is approved.  

Find Marla Online at http://www.century21.ca/marla.janzen   she is a Century 21 Fusion Realtor Sakatoon based at 703 Circle Drive, Saskatoon..or checkout her listing in REAL ESTATE SASKATOON here on www.trustedsaskatoon.com   , Marla Janzen is TRUSTED SASKATOON REAL ESTATE EXPERT.

Stay Trusted my friends..SAFE AND TRUSTED SASKATOON