Helping the Self-Employed during Tax Time

General Trevor Bumstead 16 May

With the deadline for self-employed tax filing less than a month away, let’s take a moment to discuss how I can help you leverage the equity in your home to save money.

  1. Pay the CRA for any taxes owed to avoid costly penalties and fees.
  2. Repayment of the Canada Emergency Business Account (CEBA) loan to take advantage of the $20K in partial loan forgiveness being offered by the Canadian government. (forgiveness = free money)
  3. Improve cash flow through debt consolidation while freeing up funds for future investment and growth opportunities.
  4. Protect your investment portfolio by avoiding the costly tax implications of “cashing out”.

At first glance you may be opposed to changing your mortgage as you think you are saving money but you may be surprised. Let me run the numbers showing you how I can save you thousands of dollars compared to the lost value and cost of cashing out investments, or compared to the other high interest products you are using.

I’m here to help, so please don’t hesitate to give me a call for a no-obligation review or to answer your questions.

Be well and talk again soon.


Choosing a Payment Frequency

General Trevor Bumstead 11 May

When it comes time to select the frequency of your mortgage payment there are several factors to consider which will determine what option is right for you. When making that decision, here are a few things to remember.

  1. Select a payment frequency that best aligns to your household budget and lifestyle.
    • If you’re used to paying monthly (ex: rent) then a monthly schedule could be best for you.
    • If you are paid bi-weekly, matching your mortgage payment may help with budgeting and cash flow.
  2. Monthly, Semi-Monthly, Bi-Weekly, and Weekly all pay the mortgage down at the same rate. Despite what you may have heard, there is no interest advantage compared to each another.
  3. If your intention is to pay your mortgage off faster, there are two options.
    • Utilize the lender’s Prepayment Program while keeping your monthly payments low; Frequent or lump some payments are applied directly to the principle.
    • Increase your regular payment’s using accelerated bi-weekly or accelerated weekly options; Payments are increased to a higher locked in amount where you are making an additional 1 months worth of payments over the course of the year, evenly spread throughout the year.

In the end, it all comes down to personal preference and how you manage your household budgeting. There is no wrong choice.

If you have questions about mortgages or would like to discuss payment options in more detail, please don’t hesitate to reach out for a no-obligation review. I’m here to help.

Be well and talk again soon.