Payday loans at a comparable cost same day cash advance

Payday loans are relatively small, short-term, and unsecured cash advances. Payday loans are often a better option for people who need a fast and convenient short term loan, and don’t want to go to a pawnbroker or procure a title loan. Most financial institutions can’t or won’t provide loans for small amounts (under $1,000.00) without collateral or credit checks. Payday loans are based on the clients next payday; so their job in essence becomes the collateral for the loan. As long as the client has a steady job and meets the payday lenders minimum requirements, a payday company will loan them money based on the reliability of their job, not on their past credit history or the availability of items for collateral. Quite often the people who use payday loans are established property owners; people who don’t want to put up their house or their vehicle just for the small amount of money they need to borrow. When used responsibly payday loans can provide invaluable assistance in meeting short term unexpected monetary needs. Repeated use or reliance on payday loans can create serious financial difficulties. If you are having to borrow from one payday to the next or are borrowing from one payday institution to pay another, you may need help from a credit counselor or debt consolidation institution, please contact the National Foundation for Credit Counselling at 1-800-388-2227.

Payday loans are an alternative to pawning personal property or borrowing money from family and friends. Clients also use payday loans to avoid paying NSF fees at their financial institution or to avoid their bank account being overdrawn, which can cost substantially more than the fees from a payday loan. If your account is over-drawn and you do not have overdraft protection, the bank can charge a minimum of $5.00 each time your account is over-drawn for as little as $1.00. Fees charged on a payday loan are different for every company, but fees usually range from $15 to $30 on every $100 borrowed. Some companies charge a flat fee regardless of the length of the loan; others base the fee on the actual time you borrowed for. The length of time for a payday loan can be as little as one day or as long as 30 days, depending on when your next payday is: hence the name. You should evaluate the benefits and pitfalls of every alternative before borrowing.
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Reasons to Use a Payday Loan

Non Sufficient Funds Fees are a source of revenue to a financial institution. If you have a few auto withdrawals or cheques (one large one and several small ones) coming out of your account, but not enough money in there to cover them all; the financial institution will clear the largest payment they can. They can bounce all of the rest and charge you a huge NSF fee on each item. For example if you have one $100 cheque and five $20 cheques coming out of your account and you only have $105 in your account, most banks will clear the $100 cheque. This enables them to bounce all of the $20 payments and charge up to a $35 NSF fee on each of the rest of the cheques.
To cover a regular payment that is coming out of your account, which unexpectedly increases. You may not just have NSF fees to worry about. For example: if it happens to be your insurance you are going to be short on you may be looking at real trouble. Insurance companies have been known to cancel your coverage after only one missed payment. If your payment bounces and you get in an accident only a day later, not realizing yet that your payment bounced; they could refuse to cover you, as you have let your insurance lapse. It could cost you thousands of dollars to find new insurance.
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Some Truths about Payday Loans (from the people who use them)

When asked, payday loan users replied that they feel the payday loan industry treats their customers better and more fairly than the credit card industry, cable providers or even the banking industry. Three quarters of payday loan users agree that the fees charged by payday loan companies are reasonable, considering that they do not require credit checks or collateral. A majority of both payday loan users and the general Canadian population agree that, since large financial institutions do not provide short term loans for smaller amounts, Canadians who need the services of payday loan institutions; should have access to them. Payday loan users were more likely to agree that payday loans are a better option than pawnbrokers or title loans; but even among non users 67% of Canadians agree that payday loans are the better option. Payday loan users state that their top reasons for using payday loan company services are for: “emergency” cash to pay for some necessities 36%; second, to help out with an unexpected expense like car or household repairs 24%; and third, to help avoid bouncing cheques and/or late fees on routine bills.
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Nature of the Payday Loan Industry

Payday lending is a relatively new business, introduced in Canada in the early 1990’s. There are now an estimated 1,000 stores across the provinces (excluding Quebec, where payday loans are not legally allowed). Payday lenders usually provide multiple services, including cheque cashing, bill payments, wire transfers and even tax refunds. Most payday loan companies serve their customers through physical locations (store front). However there are a growing number of lenders that are either partially or wholly internet based. Either way, this is a growing business that fills a need for people who do not have an extensive credit history and do not have access to mainstream financial institutions. Its growth shows no signs of slowing down in the foreseeable future.
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References:
Ernst & Young; The Cost of Providing Payday Loans in Canada 2004
Environics; Understanding Consumers of Canada’s Payday Loans Industry June 2005
www.environics.net

Bankruptcy

There are usually warning signs as a precursor of financial problems. You should watch for these signs, so you can catch the problems while they are small. If they become too large your only recourse may be bankruptcy. Sometimes situations are beyond our control, such as divorce, the death of a spouse, health problems or a change in household income. To avoid having to file for bankruptcy, here are the first signs of financial danger that you should look for:

What you can do to stop a bankruptcy:

If you are having problems paying your bills, here are some alternatives before you consider bankruptcy:

What is a Debt Consolidation loan?

Debt Consolidation is a loan that allows you to repay many other debits. (credit cards, payday loans and small unsecured loans.) This is a personal loan from a financial institution.
The advantages of a debt consolidation loan are:

What is Debt Management Plan/Credit Counseling?

Credit counseling offers an alternative to bankruptcy. A credit counseling/debt management agency can negotiate reductions in interest rates or settlements with creditors. They can help you reorganize your debt and pay it off - this is called debt reorganization. Credit Counselors, in general, establish a debt repayment program, allowing for reduced payments over a period of time. Credit Counseling is not a loan, however; many Credit Counseling agencies will allow you to make only one payment a month. The Credit Counseling Company will apportion the payment among your creditors in a fair and equitable manner. This stops all the phone calls from your creditors and collection agencies that can make you afraid to answer your phone.

The credit counseling/debt management staff will help you create a budget you can live with, while also paying down your debts. Some of them offer free seminars to explore financial strategies for balancing a monthly spending and repayment plan to help you manage your living expenses and creditor obligations on your own.

Does credit counselling/debt management work? This is an important question, as credit counselling/debt management is not for everyone. Often, it is simply a matter of budgeting your money better. To be honest, it sometimes takes another pair of eyes looking at your expenses for you to see where you are getting into trouble. Moreover, although credit counselling agencies are non-profit for tax purposes, they often make enough money to be profitable as if they were a for-profit agency. Be leery of excessive fees, or claims that a credit agency can fix all of your problems. If it sounds too good to be true, chances are, it is.

For instance, a credit counseling/debt management agency CANNOT erase a bankruptcy from your credit record. At best, they can help to rehabilitate your credit over an extended period of time by helping you make payments on time. Also credit counseling/debt management does go on your credit record, maybe not as bad as a bankruptcy, but it does affect it. Also, credit counselling remains on your record for three years after you make your last payment to your creditors. Bankruptcy is erased from your record six years after discharge date. So if your debt is so large that you will still be paying after seven years, then bankruptcy might be a better option for you.
To summarize, the advantages of a credit counseling/debt management plan are:

A credit counseling/debt management plan is a voluntary agreement between you and your creditors and is not legally binding. A credit counseling/debt management plan does not need to include all of your creditors, but if you are trying to reestablish your credit, it is best if you do. Your creditors do not have to abide by this agreement; it is entirely voluntary on their part. A credit counseling/debt management plan also does not have the ability to automatically stop a garnishment order - the creditor that brought the suit must agree to lift the garnishment. When a creditor lifts a garnishment, it is a sign of their belief in your sincere desire to pay all of your debts to your creditors. The lifting of the garnishment is usually conditional on your continuing participation in the credit counseling/debt management plan, and on your honoring of all your payments.
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If I have the cash, should I make a proposal?

If a person has the ability to make a proposal (i.e. his or her income exceeds living expenses), then he or she should consider making a proposal.
If any person files for bankruptcy when he or she has the ability to make a proposal, it is the Trustee's duty to oppose discharge of the bankruptcy. In this case, the person may be in bankruptcy up to an additional 12 months beyond the usual 9 months. You would be required to make payments in each of these months.
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What are a Consumer Proposal / Debt Consolidation?

The preceding Debt Management Plan and a Consumer Proposal have one thing in common: you can afford to repay a portion (or all) of your debts; you simply need more time to pay. The difference is: a Consumer Proposal to creditors is a legally binding act administered for the courts thru a licensed trustee in bankruptcy. If you owe $5,000.00 to $75,000.00 in debts, a Consumer Proposal would be your last option before you filed for bankruptcy.
The advantages of a Consumer Proposal / Debt Consolidation plan are:

How does a Consumer Proposal affect my credit rating?

Your credit rating will probably remain at these ratings until the proposal is completed. In addition, after you complete the proposal, a note will appear in your credit record for up to 7 years from the date that you filed the proposal to collectors.
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What is a Bankruptcy Proposal?

This is the last credit option for most. It is the hardest decision and has the longest time effects on your credit history.

One of the main purposes of bankruptcy legislation is to afford a person, who is hopelessly burdened with debt, the opportunity to get free of the debt and start fresh - "to get a new lease on life." To go into bankruptcy it is necessary for a person to be insolvent. To be insolvent means to:

A Bankruptcy in Canada means: you assign (surrender) everything you own to a trustee in bankruptcy, who will work with you and your creditors to eliminate your entire unsecured debts. Your trustee will convert your excess property into cash to assist on paying back your creditors. You are permitted to keep certain property. Exemptions could include clothing, furniture, appliances, vehicles, your home, family heirlooms, medical, dental aids and some insurance. If you can justify to the trustee and creditors the necessity of an item, it can be exempted.

Note: There are a number of differences between bankruptcy in Ontario and bankruptcy in other parts of Canada, so you are required to deal with a local bankruptcy trustee. The property exempt from seizure is set by the provinces and territories individually
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Filing Bankruptcy? Pros and Cons:

How is my Spouse Affected

Your spouse, whether common law or married will not be affected by your bankruptcy, if he or she is not responsible for any of your debt (did not sign an agreement or contract for any of your debt). If you have a joint credit card they are probably responsible for that debt. Your spouse's credit rating will not be affected by your bankruptcy and any assets in the spouse's name will not be part of the bankruptcy.
If your spouse is responsible for any of your debt or has his/her own debt then the spouse may have to file for bankruptcy also.
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Cost of Bankruptcy

In a bankruptcy, assets in excess of your allowed personal exemption, such as, real estate, automobiles and boats that are your property, as of the date of the bankruptcy and anything that you acquire during the bankruptcy, goes to the trustee for the benefit of your creditors. This would include inheritances received or to which you might become entitled, by the death of someone during the time of the bankruptcy. It also includes such things as lottery winnings and anything that you might accumulate, such as assets bought with any surplus income.
Tax refunds outstanding, as of the date of the bankruptcy also go to the trustee for the benefit of your creditors. Income Tax law requires a bankrupt person to file two tax returns for the year of the bankruptcy. The first (pre bankruptcy tax return) covers the period January 1st through to the date of bankruptcy. The second (post bankruptcy tax return) covers the period starting with the date of the bankruptcy and ending December 31st. Pre bankruptcy tax rebates go to the trustee for the benefit of the creditors.
You will be asked to volunteer any refunds, receivable from your post bankruptcy return, to the trustee for distribution to your creditors. While you are not legally obliged to give up these funds, the trustee or creditors may apply for a Court Order or it may be reported to the Court at the time of your discharge.
The Federal Government of Canada set the maximum administration fees that can be applied to a bankruptcy.
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What about my wages during bankruptcy?

Your earnings after the start of a bankruptcy, such as wages and salaries or commissions, belong to you and are not interfered with by the trustee in the ordinary course of events. However, there are limits set on the amount of income you are allowed to keep. This amount is set by the Superintendent of Bankruptcy, who instructs the trustee to collect any monies that you make above what is reasonable, for the number of people in your family.
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What debts are not erased in a bankruptcy?

Student loans if bankruptcy is filed prior to or within ten years after the finish of studies.
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What about student loans?

If the date of bankruptcy is more than ten years after the finish of studies, the debt will be wiped out upon the bankrupt's discharge. A discharge from bankruptcy does not release a student loan if the bankruptcy occurs within ten years after finishing studies. A Court can order the discharge from a student loan at any time after ten years of ceasing to be a student, and after being discharged from bankruptcy, if the person has acted in good faith and the person will continue to experience financial difficulty in paying the student loan.
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What is counseling and do I have to participate?

You must take counseling in order to be eligible for an "automatic nine month discharge". The counseling can be one-on-one, with yourself and your trustee, or if you prefer, it can be in a group consisting of other people in the middle of bankruptcy and your trustee. The first counseling session must be held between 10 and 60 days following bankruptcy; the second counseling session must be held no later than 210 days following the date of bankruptcy.
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When is my bankruptcy over?

For people who have not been bankrupt before, an automatic discharge will take place after nine months if the creditors, Superintendent of Bankruptcy or trustee have not opposed your discharge and you have received counseling. Occasionally, creditors do object and the matter goes to mediation or is heard before a Registrar or a Judge. The discharge is usually granted where the bankrupt is only earning sufficient income to keep himself and his dependants reasonably provided for. It is the discharge of the bankrupt, with minor exceptions, that cancels the bankrupt's debts. In the event that you have been bankrupt before, your discharge will not be automatic and must be heard before a Judge or a Registrar. Don’t forget however, that your bankruptcy stays on your credit record for six years after discharge date.

For people who do not qualify for the automatic discharge, the trustee is required (within one year from the beginning of the bankruptcy) to apply to the court for a hearing of the application for a discharge. Discharge after the second bankruptcy is not automatic.

The court official has several options from which to choose. At the hearing, the court decides whether to postpone the hearing to a later date, refuse the discharge, or issue any of the following orders:

Recovery Tips

Bankruptcy Links per Province

Canadian links for Credit Counseling

Rebuilding My Credit: Where do I go and how do I do it?

Credit cards can be more than a convenient way to make purchases and pay for them over time. Having a credit card and using it wisely helps you build a record that can make it easier for you to apply for other types of credit - car loans
But if you've never had a credit card and you want one, you might be faced with a puzzling fact of life: You need credit to get credit.
Not everyone who applies for a credit card gets one. Often, people who have been denied conventional credit cards can get a secured credit card instead.
What kind of credit do you have?

Credit card issuers look not only at your income but also at your credit history - how you have handle credit in the past. How does your credit history rate?
Good credit - you always pay your bills on time and stay within your credit limits. You manage your overall credit by having only the credit you need and don't max out your cards. You shouldn't have trouble getting the credit you need.
No credit - you've never had a credit card or a loan from a bank or a finance company, so you do not have a credit history on file with any of the major credit bureaus. Almost all secured card issuers accept people who have no credit history. This makes secured cards a good option for young adults who are just entering the credit market, or for married women who have never had credit in their own names.
So-so credit - you make payments late sometimes, but not more than once or twice in several years. Some lenders might grant you an unsecured credit card, but you might pay a higher-than-average interest rate.
Badly damaged credit - you've been seriously tardy (more than 60 days late) in paying your bills several times in the past year, your debts have been referred to a collection agency, you failed to pay a credit card debt in the last seven years or you've filed for bankruptcy in the past 10 years. Some companies offer secured credit cards to people with poor credit or even a past bankruptcy. This makes secured cards a good option for people who are trying to re-establish a positive credit history.
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Secured vs. Unsecured Cards

Secured and unsecured cards can be used to pay for goods and services. However, a secured card requires you to open and maintain a savings account as security for your line of credit; an unsecured card does not.

You may have to pay application and processing fees -- sometimes totaling hundreds of dollars. Before you apply, be sure to ask what the total fees are and whether they will be refunded if you're denied a card. Typically, a secured card requires an annual fee and has a higher interest rate than an unsecured card.
To obtain a secured credit card, you deposit money in a savings account. (Minimum deposits range from $100 to $2000.) The account is frozen while you have the card. If you fail to pay your credit card debts, the funds in the account may be used to cover your obligations.
Some issuers pay you interest - up to 4.5% - on the account. Some don't pay interest on deposits unless they exceed a certain amount.
Secured cards (issued with the MasterCard or Visa logo) look and are used just like unsecured cards. To the rest of the world, they are just credit cards.
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Credit Limits

Most secured credit card issuers will give you a credit line equal to 100% of the amount you have on deposit, but some will grant you credit equal to only a part of your deposit. A few issuers offer credit lines of double the amount you have on deposit - a kind of hybrid account where part is secured and part unsecured.

Some banks may increase your credit line without additional deposits after you have paid on time for several months. Other issuers charge a fee for credit line increases - use caution when accepting such a deal.
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Do secured credit card companies accept everyone who applies?

Some will, and some won't. In general, card companies are more lenient about issuing secured cards because applicants must deposit money in a savings account to guarantee the charges.
Some issuers guarantee that anyone with the money to deposit will receive a card - without checking your credit report. Other issuers require that you fill out a lengthy application, be able to meet minimum income requirements and pass a credit review.
Deceptive Ads and Scams
The ads may offer unsecured credit cards, secured credit cards, or not specify a card type. The ads usually lead you to believe you can get a card simply by calling the number listed. Sometimes the number is not toll-free. A '900' number service, for which you are billed just for making the call, may instruct you to give your name and address to receive a credit application, or give you a list of banks offering secured cards. It also may tell you to call another '900' number -- at an additional charge -- for more information.
Deceptive ads often leave out important information.

How to Avoid the Scam
To avoid being victimized, look for the following signs:

Credit Reporting

If you're considering a secured card as a way to build or re-establish a credit record, make sure the issuer reports to a credit bureau. Your credit history is maintained by companies called credit bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors. If your card issuer doesn't report to a bureau, the card won't help you build a credit history.
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The Home Trust Secured VISA ®

The Home Trust Secured VISA ® card is one of your best chances to get the credit you want. (Open to Canadian residents only)

The Home Trust Secured VISA is a credit card that requires a security deposit for eligibility. Your credit limit is then set at the amount of the deposit. You can put down as little as $1,000, or as much as $10,000. Your security deposit earns interest*, while your Home Trust VISA card is open and in good-standing.

If you decide to cancel your card, you can just pay off your outstanding balance, and you'll get your security deposit - plus interest earned - back from Home Trust. Home Trust is a Member of Canada Deposit Insurance Corporation (CDIC).

Almost everybody who applies is approved (their approval rate is approximately 95%). Applicants must have a stable source of income. People who are currently in bankruptcy do not qualify for a card. Of course, if your application is not approved, your security deposit will be immediately returned to you.

A secured credit card from Home Trust Secured VISA is a product in which the security deposit you provide is equal to your credit limit. It works just like any other credit card. Your deposit will be held in an interest bearing account with interest (currently 2%) payable annually. You are required to make regular monthly payments over and above the security deposit because this is not a "prepaid" card. You may make purchases up to the limit of your Home Trust VISA card or you can use your card to make cash advances at ATMs or at a bank. Your Home Trust VISA card is a revolving line of credit. As you use your credit card, you are continually borrowing against your line of credit and repaying it. The amount of credit you have available at any time will vary depending on your current outstanding balance.

The Home Trust Secured VISA will allow you to build or rebuild a solid credit rating. Many people have been declined by the banks for a credit card due to past bad credit or because they have no credit history. Having a credit card is not a luxury anymore, it's a necessity. The Home Trust Secured VISA allows you to make purchases on-line or by phone, book a flight, rent a car and a multitude of other things, VISA is accepted at over 24 million locations worldwide.

Home Trust reports your file to the credit bureau on a monthly basis. Your file is updated and your credit history begins. Both the primary applicant and the co-applicant's credit bureau can be updated.

Your deposit will be held as long as you have an account with Home Trust. When you close your account, they will return your deposit, plus earned interest once all purchases and fees have cleared.

You can increase the limit on your card by sending additional funds to Home Trust and clearly indicating that you are requesting a credit line increase. If you simply make an overpayment but do not submit a request to have your credit limit raised, your available credit will increase temporarily, but your credit limit will remain the same. Most banks charge between 17 and 21%. Home Trust Secured VISA charges 19.50% on purchases and 21.50% on cash advances. Interest is not charged if the balance is paid in full by the statement date. However, for cash advances, interest is charged from the time the advance is made to the time it is paid off.

The application process takes approximately 2-3 weeks from the time the application and security deposit are received, if you send guaranteed funds (certified cheque, money order, bank draft or payment by Western Union). It will take up to an additional 30 days if you send a personal cheque, as we must wait for personal cheques to be cleared by the bank.

Fill out an application form and mail it to 145 King Street West, Suite 1910, Toronto, Ontario, M5H 1J8 or to the PO Box on the application, along with your security deposit. We will not process an application without the deposit.

You can call Home Trust VISA Customer Service at: 416-777-5851 or 1-888-281-7793
Monday to Friday between 9 am and 5 pm EST or email visa@hometrust.ca

Mortgage: Dream or Nightmare?

Your first home, your last home, or a place to bring up the kids! What ever the reason you have to be prepared!

What is a Mortgage?

It is a loan … a big loan mind you, but it’s still a loan!
It can be used to purchase a home or have one built
It can be used to consolidate debts, for example a 2nd mortgage
It can be used to pay for renovations on your existing property
It can be used to purchase other investments or property

The one thing that all of the above have in common, is a property the bank can hold as security on the loan.

1st Step: You must decide that you are going to purchase a home. No more paying rent!

2nd Step: Send for your credit report. If there is something on your credit report that you wish to dispute and you have written proof, do it right away. Once that has been cleared up; the Credit Bureau must notify anyone who has run a credit check on you in the last few months. They must state that it was an error and has been corrected. (This is required under provincial law) If there is something on your report that you know to be false, but you do not have documentation to prove it, you must give the Credit Bureau all the facts and ask for an investigation. If your statements are confirmed, your record will again be corrected and all parties will be notified of the change. If there is something there that you know is wrong, but you can not prove it, and the investigation has been unable to make a decision, check with your local Credit Bureau about your rights and where you can go from there. Each province has different legislation for Credit Bureaus. When your credit is good banks and trust companies will fight to hold your mortgage! When your credit is not so good, be prepared to need a higher down payment or pay higher interest. When your credit is in trouble, start saving for a down payment, make sure you pay all of your bills promptly, get a credit card and pay on time every time: this will help fix the problem sooner.
Credit quality and debt-to-income-ratio affect the terms of your loan. If you have good credit and your monthly income far surpasses your monthly debt obligations, you will get approved at a lower interest rate. However, if your monthly income barely covers your minimum debt obligations, even if you have a credit report, you will not receive the lowest available interest rate. (For more information on your Credit Rating, please contact your local Credit Bureau, they are listed in the yellow pages of your phone book or you can search online.)

3rd Step: Look at your money. Talk with your bank, your investment agent, and your friends (those with mortgages of their own). Make sure you can afford to take this step.
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Here is a Mortgage dictionary so you will understand what the banker/broker is talking about when you sit down to discuss a mortgage. Now you can say you know another language!

Mortgage Dictionary:

Which Loan Program/Mortgage Should I Choose?

There isn't a single or simple answer to this question. The right type of mortgage for you depends on many different factors:

For example, a 15-year fixed rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. A variable rate mortgage may get you started with a lower monthly payment than a fixed rate mortgage, but your payments could get higher when the interest rate changes.
The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences, with a mortgage professional.
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Open or closed Mortgage?

Buy or Sell?

If it is a seller’s market-sell first. Use the extra money you get from the sale of your home and use it as a down payment on your new home. This will bring down your mortgage payment. If you sell first you will also know what you can afford to spend purchasing your new home. Your down payment can also help decide where you purchase your new home.

If you choose to buy first, make sure the seller is aware that the contract is pending on the sale of your property. You don’t want to be left holding two mortgages!
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Meeting with a Lender

You may prefer to meet with your mortgage company before house hunting to determine in advance how much you can afford and the mortgage amount for which you can qualify. This step is called pre-qualification and can save you time and trouble by making certain you are looking in the correct price range. If you fall in love with a house that is totally outside of your price range, you are going to be quite upset when you later find out you are not going to be able to afford it.
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Amortization and Payment Options?

The amortization period is how many years it will take to pay out your mortgage. This can be as much as 30 years or as little as 6 months. Various things can affect this time line. You could sell another property and pay out your mortgage with the proceeds. You might win the lottery (We all wish that!) or receive an inheritance. If none of these options are in your foreseeable future, you can still pay your mortgage out faster, by adjusting your pay period.
A larger down payment – greater than 20% - will give you the best possible rate. Down payments of 5% or less should expect to pay a higher rate as you are starting with less equity as collateral. If you've got the cash now and want to lower your payments, you can pay on your loan to lower your mortgage rate. It's a simple concept, really: In exchange for more money upfront, lenders are willing to lower the interest rate they charge, cutting the borrower's payments. Closing costs are fees paid by the lender, if you don’t want to pay all of the closing costs, expect a higher rate which will pay the lender additional interest over the life of the loan.

Most people start off with a monthly mortgage; and if you leave it like that, your mortgage will be paid off in 25 years, but you will pay a lot of interest over that term.

If you take the same mortgage and adjust the payments to bi-weekly, paying the same amount of money out as per a monthly rate but doing it in two payments instead of one, you can save a large amount of interest. (Example: $100,000. mortgage at 8% interest- paid Bi-weekly instead of monthly for the length of the mortgage, you will save $30,484.00 worth of interest (approx)).

Now, let’s take that same mortgage and do it weekly, $190.80 per week (app) and your mortgage is paid off in 19 not 25 years and you have saved $30,839 worth of interest. This is the value of a nice new car or a dream vacation for you and your family!

There is also the option of periodically paying a lump sum on your mortgage. This option varies from 10% to 20% a year on the anniversary date. Whatever option is offered, try to utilize it. Hint: You can spread your allowed amount per year over the 12 months, paying that little extra each time. This is easier than saving to make a large lump sum payment.

Increasing your monthly payments and/or doubling up on payments, these options are built into your mortgage. Make sure they are discussed and agreed upon by both you and your lender. Increase your monthly payment as your financial situation betters itself, this will help save interest over time. Doubling up on your payments puts the extra money directly towards the principle. Note: If you are ahead on your payments and you run into some financial problems, ex. off work due to injury. Your financial institution may give you a break and let you skip a monthly payment if needed. Financial planners say you should have enough cash in your account to cover up to 3 months of expenses. We can only hope and try, but knowing the option is there, is a comfort.
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Early Renewal, Portable Mortgage, Assumable Mortgage

These are all other ways to save you money.

Early renewal: Allows you to renew your mortgage when rates are low and log it back in, usually without a penalty.

Portable mortgage: If you decide to move and buy a house somewhere else you can transfer your mortgage and still keep your locked in rates. This is really nice if the rates have increased or are higher in your new area.

Assumable Mortgage: This is a great selling feature. If your rates are lower than current market you can transfer your mortgage over to the new buyer without any penalties. (Buyer has to be approved by your lender first) Get a lawyer to request a release of responsibility from the mortgage to ensure you are no longer liable for it once transfer is finished.
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Conclusion

Now you have some information to start off with…. go get that newspaper or magazine and start looking for your dream home…not your nightmare!
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Checklists

Wedding Check List

12 to 18 months ahead

4 to 6 months ahead

2 to 4 months ahead

1 to 2 months ahead

2 weeks ahead

1 week ahead

Camping Checklist

Packing - Put food on the bottom (you'll need other items first)

Diapers
Wipes
Bottles/sippy-cups
Play pen
Jogging strollers
Backpack carriers
MANY sets of clothing
Extra pair(s) of shoes
Formula
Jar foods
Gerber toddler foods
Hats
Toys,
Snacks
Storybooks
Baby Hammock
Baby Swing
Kid-safe bug spray
Sun-block Current photos of the children in case they get lost
Favorite blanket or stuffed toy (very important!)
Powdered milk(for children that have outgrown formula)

Bring large restaurant pails with lids. Fill with water and laundry detergent before the car ride home and throw in all your laundry. The agitation from the bumps in the road will wash the laundry for you!!
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Moving Checklist

Moving can be a hectic time, but this list can help you stay organized.

One month before your move

Clean out your closets, basement and garage. Donate unused items to your favorite charity or have a garage sale to help pay for some of your move
Get packing supplies; tape, boxes, tissue paper, bubble wrap, markers.
If this is a big move, start packing items of no use prior to your move. Pack up things like photo albums, books, and seasonal decorations.
If you're packing items that will go in storage, make itemized lists of each box and its contents.
Start a log of moving expenses and keep all your move-related receipts. Some items may be tax deductible.
Find a reputable mover. If you’re hiring professional movers get written estimates from at least two moving companies; include their written commitment of pickup and delivery dates. Ask for and check references. Check the limits of insurance they offer and whether or not it covers replacement costs. Purchase additional insurance if you need it.
Arrange to transfer your household insurance to your new home.
Advise regular trade’s people (gardener, housecleaner, and pool service) if you're moving out of their service area. Look into services for new home.

Two weeks before your move

Arrange for disconnection or transfer of your Hydro service.
Arrange for disconnection or transfer of other utilities (gas, cable, phone, Internet, etc.). Get new phone number.
Contact the post office to have your mail forwarded.
Arrange to close or transfer your bank accounts. Order cheques with your new address & phone number.
Stop or transfer newspaper and other home deliveries.
Advise friends, family and professionals of your new address and phone number. (Don’t forget your doctor, dentist and other medical professionals, schools, library, accountant, financial advisor, credit card companies, Canada Customs & Revenue (Revenue Canada), Motor Vehicle Branch, frequent flyer plans, your employer, medical plan, magazine and other subscriptions.)

One week before your move

Clean your home or arrange for a cleaning service.
Confirm delivery address, phone number and delivery date with the movers.
Clean out and defrost the freezer.
If you’re moving to another city, pick up dry cleaning, prescriptions, photos or anything else left outside your home.
Clean out school or gym lockers.
Return library books.
If your new house or the one you are leaving has a sump pump make sure the hydro was never turned off (you might be moving into a house with a pool in the basement)

A few days before your move

Complete packing of all household goods for the move. Make sure boxes are clearly marked with the room they will go in, as well as "Fragile" if necessary.
Place important documents in a safe box that you will carry. Include home purchase/sale papers, will, financial records, passports, birth certificates. Mark "Do Not Move" on the box; move this box yourself.
Prepare an "open first" box with towels, bedding, basic kitchen and bathroom supplies, toys or games for your children, tools (hammer, screwdriver) to set up furniture.
Label all keys for new occupants
Place all appliance manuals & warrantees, etc in one place for the new occupants.

Moving day

Keep phone connected or have a cell phone in case you need to contact your movers, etc.
Inspect the house before the movers come in; if they mess up the house during the move, you should be able to back charge them for the damages.
Carefully supervise the move. If you can, it’s good to have one person at each end of the move to supervise the movers (you and your spouse). Be sure your instructions are understood, and that boxes are delivered to the right rooms.
Check all the rooms and closets to make sure you haven’t left anything behind.
Turn down the thermostat.
Lock up and leave labeled keys with the landlord, new owners or real estate agent.
Arrive at your new home before the movers. Show the movers where to put boxes and furniture.
Check that you've been given keys to every lock in your new home.
Carefully review the movers’ bill of lading before signing. Check for damaged items.
At your new home, make sure the utilities are on and working properly.
Unpack your "open first" box. Set up your bed; unpack the kitchen and bathroom to help you feel at home. Relax, order in dinner, and take a long hot bath.

After your move

Unpack, then donate or flatten and recycle boxes.
Change the address on your driver’s license and car insurance.
Plan your housewarming party!

Home Purchase price checklist

Buying a home costs more than the offer you make. There are numerous other expenses that will add to the amount that you'll need to spend. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.

Purchase Price
Lawyer's Fees
Land Transfer Tax
Registration Fees
High Ratio Insurance
Compliance Letter
Tax Certificate
Provincial "New Home Warranty Program" premiums — New Homes Only!
Mortgage Appraisal and Application Fees
Home Inspection
Land Survey
Title Insurance
Connection Charges
Property Tax and Prepaid Utilities Adjustments
Interest Adjustment

Purchase Price
The starting point in your calculation... if you're like most first-time home buyers, you'll need a mortgage for the majority of this!

Lawyer's Fees
Although fees vary across the nation, it can cost you up to $2,500 depending upon whether you are re-mortgaging your existing home or buying new..

Land Transfer Tax
A tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. This amount is usually not expected by most homeowners. It can be sizeable. The amount varies from province to province and is generally a percentage of your purchase price.

Registration Fees
Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or lien with the local authorities.

High Ratio Insurance
Must be purchased if you are buying a home for less than 25% down. A sliding fee scale applies, depending on the percentage of the purchase price required in a first mortgage (some minor exceptions).

Compliance Letter
Obtained by your lawyer and required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgment from the building department that the property either has, or is clear of outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner is legally required to do, and which must be completed before ownership can be transferred.

Tax Certificate
Obtained by your lawyer at the time of sale to confirm that local taxes have been paid up to date. If they are not up to date, the seller is required to pay them from the proceeds of the sale. If there are insufficient proceeds, then you may be legally required to pay the outstanding taxes. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

Provincial "New Home Warranty Program" premiums — New Homes Only!
A third party (provincial) warranty program between a builder and a buyer. With the exception of Ontario and Quebec, membership in such a program is voluntary for the builder. Through these programs, your home is guaranteed against defects for at least one year. All homes with a high-ratio insured mortgage (greater than 75% loan to value) must be enrolled in such a program.

Mortgage Appraisal and Application Fees
Application fees apply on high ratio mortgages only while appraisal fees are common to most mortgages. Generally $150 — $235 each would apply.

Home Inspection
A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, or select a firm who stand by their work.

Land Survey
The legal written and/or mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction.

Title Insurance
New to Canadian consumers over the last few years is the introduction of title insurance into the home buying process. Title insurance can be purchased by home buyers to protect against potential deficiencies in a number of areas, such as the land survey. There are numerous benefits to this product, and you should consult your lawyer or an INVIS Mortgage Consultant today.

Connection Charges
Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is an extra charge on the first billing.

Property Tax and Prepaid Utilities Adjustments
If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing. If they paid all their taxes by April, expect a large adjustment cost on closing!

Interest Adjustment (IA)
If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle will commence. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days interest on closing and start payments on August 1st.

Don’t let all of these extras change your mind about buying a house. It is better to be cautious and to know all of the facts before you’re past the point of no return. It is a wonderful investment and can bring you and your family joy throughout the years.
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About Payday Loans

Reasons to Use a Payday Loan

Some Truths about Payday Loans (from the people who use them)

Nature of the Payday Loan Industry

Bankruptcy

What you can do to stop a bankruptcy:

What is a Debt Consolidation loan?

What is Debt Management Plan/Credit Counseling?

If I have the cash, should I make a proposal?

What are a Consumer Proposal / Debt Consolidation?

How does a Consumer Proposal affect my credit rating?

What is a Bankruptcy Proposal?

Filing Bankruptcy? Pros and Cons:

How is my Spouse Affected

Cost of Bankruptcy

What about my wages during bankruptcy?

What debts are not erased in a bankruptcy?

What about student loans?

What is counseling and do I have to participate?

When is my bankruptcy over?

Recovery Tips

Bankruptcy Links per Province

Canadian links for Credit Counseling

Rebuilding My Credit: Where do I go and how do I do it?

Secured vs. Unsecured Cards

Credit Limits

Do secured credit card companies accept everyone who applies?

Credit Reporting

The Home Trust Secured VISA ®

Mortgage: Dream or Nightmare?

What is a Mortgage?

Mortgage Dictionary:

Which Loan Program/Mortgage Should I Choose?

Open or closed Mortgage?

Fixed or Variable Rate?

Buy or Sell?

Meeting with a Lender

Amortization and Payment Options?

Early Renewal, Portable Mortgage, Assumable Mortgage

Conclusion

Checklists

Wedding Check List

12 to 18 months ahead

4 to 6 months ahead

2 to 4 months ahead

1 to 2 months ahead

2 weeks ahead

1 week ahead

Camping Checklist

Packing - Put food on the bottom (you'll need other items first)

Lighting - Check batteries!

Shelter/Bedding

Medical

Cleaning & Personal Items

Miscellaneous

Clothing

Cooking

Dishes

Water

Food & Drink

Camping with Children