Sometimes, you are
your own worst enemy when it comes to stress. Susan Fletcher, a
practicing psychologist and stress management expert, teaches these
valuable techniques to help alleviate stress in your life:
Don't read into things so much. "Sometimes a look is
just a look and a dirty coffee cup is just a dirty coffee cup. It's not a
passive-aggressive way to say you are not appreciated," Fletcher says.
Don't make things bigger than they need to be—with people or work. Some
people make a project bigger than it needs to be in an effort to
increase their own value, but they are increasing their own stress as a
result.
Learn how to transfer trust. "I really like Stephen M.R. Covey's stuff from his book Speed of Trust.
He says people have to be able to trust before they feel it. Just like
with your kids when you give them a little rope. And with someone who
works for you, you have to let them fail because failure is feedback,"
Fletcher says. "Don't just say, 'It's easier to do myself.'"
Recognize when you are being inefficient. "People
who are stressed get stuck answering e-mails for two hours at the
expense of higher-value items that need to be taken care of," Fletcher
says. "Don't get lost in inefficient behavior. Ask yourself, 'What's my
ultimate outcome I want here and what do I need to get there?'"
Find an accountability partner to help you meet
goals. "Choose a friend or a family member—probably not someone who
lives with you because you don't want to muddy the waters. It has to be
someone you will listen to but who will hold you accountable."
Say no sometimes. "You have to say no to things you
might enjoy, but are not in line with where you are professionally or
personally at the moment," Fletcher says. Then you can spend your time
on what matters to you most.
from "Seeds of Success"
Monday, September 10, 2012
Wednesday, September 5, 2012
Bank of Canada sticks to rate-hike message
As expected the Bank of Canada has held steady again. May be another year still until we see any hikes.
OTTAWA (Reuters) - The Bank of Canada doggedly stuck to the message on Wednesday that it may have to raise interest rates despite a global slowdown, predicting the domestic economy would gain momentum this year and next and inflation return to target within a year.
The central bank held its key overnight rate at 1 percent, as expected, extending a two-year freeze on borrowing costs. In 2010 it became the first Group of Seven country to lift rates from emergency lows following the recession.
But as the U.S. Federal Reserve and other global central banks contemplate further rounds of easing, Canada repeated on Wednesday what it has been saying for months - that the time for removing stimulus could be near.
"To the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 percent inflation target over the medium term," the bank said in a scheduled policy announcement, using language identical to its last two rate statements.
The Canadian dollar trimmed losses against the U.S. dollar after the rate announcement. The currency strengthened to C$0.9874 versus the U.S. dollar, or $1.0128, shortly after the announcement. It was trading at C$0.9884, or $1.0117 just before the bank's statement.
There was no sign of backpedaling by Bank of Canada Governor Mark Carney even as he highlighted the weak U.S. recovery, the European debt crisis and decelerating growth in China and other emerging economies.
"(The bank) retains a hawkish bias, with really quite limited changes since July, so those that were expecting a significant shift and more dovish tone are going to be disappointed," said Camilla Sutton, chief currency strategist at Scotiabank.
SKEPTICS IN THE MARKET
Still, analysts believe the bank will put off raising rates until the second quarter of 2013, according to a Reuters poll of financial institutions released on August 28.
That view is likely intact.
"There wasn't much meat on these bones ... And I think that's exactly what the bank wants. I don't think they were trying to send any big message here," said Doug Porter, deputy chief economist at BMO Capital Markets.
Despite the bank's rate-hike bias, markets reduced their bets of an increase this year slightly following the bank's statement, according to overnight index swaps, which trade based on expectations for the policy rate.
"We've had some interesting periods over the last few months where what Governor (Mark) Carney has said in terms of a hawkish bias has been totally discounted by markets in the sense that the market just doesn't believe he'll have the ability to tighten policy. I would suspect we continue to see a bit of that," Sutton said.
The bank judges the economy's underlying momentum to be roughly in line with its growth potential.
The bank has said the economy's growth potential is about 2 percent, despite being held back by global headwinds and growing only by an annualized rate of 1.8 percent in the second quarter.
"Economic growth is expected to pick up through 2013, with consumption and business investment continuing to be its principal drivers, reflecting very stimulative financial conditions," the bank forecast.
Since the economy is operating near its potential, the bank said it sees core inflation, softer than expected in recent months, returning to its 2 percent target over the next 12 months along with total inflation. Core inflation was 1.7 percent in July and total inflation was 1.3 percent.
Household spending is showing tentative signs of slowing, the bank said, although the overall household debt burden continues to rise. The bank has raised the alarm over a record high household debt-to-income ratio, which has been fueled in part by high housing prices and cheap lending rates.
Source http://money.ca.msn.com
OTTAWA (Reuters) - The Bank of Canada doggedly stuck to the message on Wednesday that it may have to raise interest rates despite a global slowdown, predicting the domestic economy would gain momentum this year and next and inflation return to target within a year.
The central bank held its key overnight rate at 1 percent, as expected, extending a two-year freeze on borrowing costs. In 2010 it became the first Group of Seven country to lift rates from emergency lows following the recession.
But as the U.S. Federal Reserve and other global central banks contemplate further rounds of easing, Canada repeated on Wednesday what it has been saying for months - that the time for removing stimulus could be near.
"To the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 percent inflation target over the medium term," the bank said in a scheduled policy announcement, using language identical to its last two rate statements.
The Canadian dollar trimmed losses against the U.S. dollar after the rate announcement. The currency strengthened to C$0.9874 versus the U.S. dollar, or $1.0128, shortly after the announcement. It was trading at C$0.9884, or $1.0117 just before the bank's statement.
There was no sign of backpedaling by Bank of Canada Governor Mark Carney even as he highlighted the weak U.S. recovery, the European debt crisis and decelerating growth in China and other emerging economies.
"(The bank) retains a hawkish bias, with really quite limited changes since July, so those that were expecting a significant shift and more dovish tone are going to be disappointed," said Camilla Sutton, chief currency strategist at Scotiabank.
SKEPTICS IN THE MARKET
Still, analysts believe the bank will put off raising rates until the second quarter of 2013, according to a Reuters poll of financial institutions released on August 28.
That view is likely intact.
"There wasn't much meat on these bones ... And I think that's exactly what the bank wants. I don't think they were trying to send any big message here," said Doug Porter, deputy chief economist at BMO Capital Markets.
Despite the bank's rate-hike bias, markets reduced their bets of an increase this year slightly following the bank's statement, according to overnight index swaps, which trade based on expectations for the policy rate.
"We've had some interesting periods over the last few months where what Governor (Mark) Carney has said in terms of a hawkish bias has been totally discounted by markets in the sense that the market just doesn't believe he'll have the ability to tighten policy. I would suspect we continue to see a bit of that," Sutton said.
The bank judges the economy's underlying momentum to be roughly in line with its growth potential.
The bank has said the economy's growth potential is about 2 percent, despite being held back by global headwinds and growing only by an annualized rate of 1.8 percent in the second quarter.
"Economic growth is expected to pick up through 2013, with consumption and business investment continuing to be its principal drivers, reflecting very stimulative financial conditions," the bank forecast.
Since the economy is operating near its potential, the bank said it sees core inflation, softer than expected in recent months, returning to its 2 percent target over the next 12 months along with total inflation. Core inflation was 1.7 percent in July and total inflation was 1.3 percent.
Household spending is showing tentative signs of slowing, the bank said, although the overall household debt burden continues to rise. The bank has raised the alarm over a record high household debt-to-income ratio, which has been fueled in part by high housing prices and cheap lending rates.
Source http://money.ca.msn.com
Thursday, July 12, 2012
Stop trying to force credit on me
Last night I received yet another call from my local CIBC branch trying to push credit on me.
It is the 4th time the same person has contacted me and the fourth time I have told him to leave me alone. I will not obtain any more unsecured credit nor do I want anything from you.
Here's kind of how the conversation went:
I'm calling today as you've been a loyal client of ours for 13 years and people with good credit like yourself, we are offering you a line of credit and a different option on you Visa.
Sorry sir, I do not need or want anything from you. I've been a Visa holder for 13 years and I do not want to deal with CIBC.
Well we could look at getting your mortgage switched over or investments.
No sir, I'm a mortgage broker and I have very close contacts in the financial planning side of things and am set up far better than CIBC could ever do for me. Now please, do not call me again and please, I do not want anything.
Well then, I beleive you have kids, how about some RESP's.
No, I do not want anything *click
When will the banks stop doing this. This was toned down a bit and made shorter. I can't tell you how forecful he was. Our country has a huge amount of unsecured debt, however, the problem as our law makers tell us, is that we take out too many mortgages and are all high in mortgage debt. This is smoke and mirrors. It's the unsecured debt that's the problem in my opinion. Having mortgage debt is to a lot, good debt as you have an asset to back that debt.
The banks make a killing of this unsecured debt and I swear they have some butt kissing they do to the law makers in Ottawa that says we'll allow you to change the mortgage rules and do this and that, however, you can not touch our unsecured debt!
Anyways, that's my rant for the day. I just seriously wish the feds would step up and talk to us in the trenches and make realistic changes. Yeah right, who am I kidding!
It is the 4th time the same person has contacted me and the fourth time I have told him to leave me alone. I will not obtain any more unsecured credit nor do I want anything from you.
Here's kind of how the conversation went:
I'm calling today as you've been a loyal client of ours for 13 years and people with good credit like yourself, we are offering you a line of credit and a different option on you Visa.
Sorry sir, I do not need or want anything from you. I've been a Visa holder for 13 years and I do not want to deal with CIBC.
Well we could look at getting your mortgage switched over or investments.
No sir, I'm a mortgage broker and I have very close contacts in the financial planning side of things and am set up far better than CIBC could ever do for me. Now please, do not call me again and please, I do not want anything.
Well then, I beleive you have kids, how about some RESP's.
No, I do not want anything *click
When will the banks stop doing this. This was toned down a bit and made shorter. I can't tell you how forecful he was. Our country has a huge amount of unsecured debt, however, the problem as our law makers tell us, is that we take out too many mortgages and are all high in mortgage debt. This is smoke and mirrors. It's the unsecured debt that's the problem in my opinion. Having mortgage debt is to a lot, good debt as you have an asset to back that debt.
The banks make a killing of this unsecured debt and I swear they have some butt kissing they do to the law makers in Ottawa that says we'll allow you to change the mortgage rules and do this and that, however, you can not touch our unsecured debt!
Anyways, that's my rant for the day. I just seriously wish the feds would step up and talk to us in the trenches and make realistic changes. Yeah right, who am I kidding!
Tuesday, June 26, 2012
What going from 30 years to 25 years means
Here's is a rough idea of what going back to 25 years as opposed to 30 years will do in regards to purchase power and payments.
This is based on the assumption of good credit and no outside debt.
In the past four years my average mortgage amount is roughly $291,000 (this is kind of the norm south of the Fraser)
You would need an income of $48,500 to qualify for this amount of a mortgage. The payment based on today's 3.09% would be $1,241 with a 30 year amortization.
A 25 year amortization will need an income of $53,000 to qualify for this same amount. It will also increase your payment by roughly $150/m
If you have the income of $48,500 you would now only qualify in the amount of $259,000 which means, $32,000 less of a home.
I'm not entirely for or against the reduced amortization. There's pro's and con's to both and honestly when I started out, all we had was 25 years! Yes, I'm starting to become one of the seniors.
Please note: the above numbers are not perfectly accurate however, are deemed to be very close. Everyone is slightly different and there are other variances that can change the numbers i.e. Insurance premiums, actual property tax payments and strata payments etc.
This is based on the assumption of good credit and no outside debt.
In the past four years my average mortgage amount is roughly $291,000 (this is kind of the norm south of the Fraser)
You would need an income of $48,500 to qualify for this amount of a mortgage. The payment based on today's 3.09% would be $1,241 with a 30 year amortization.
A 25 year amortization will need an income of $53,000 to qualify for this same amount. It will also increase your payment by roughly $150/m
If you have the income of $48,500 you would now only qualify in the amount of $259,000 which means, $32,000 less of a home.
I'm not entirely for or against the reduced amortization. There's pro's and con's to both and honestly when I started out, all we had was 25 years! Yes, I'm starting to become one of the seniors.
Please note: the above numbers are not perfectly accurate however, are deemed to be very close. Everyone is slightly different and there are other variances that can change the numbers i.e. Insurance premiums, actual property tax payments and strata payments etc.
Thursday, June 21, 2012
OSFI Toughens Mortgage Underwriting
OSFI’s final mortgage underwriting guidelines are out, sooner than expected.
There are significant changes on the way for a variety of borrowers. TD’s chief economist Craig Alexander told BNN that the impact of these guidelines is equivalent to “well over a percentage point (increase) in mortgage rates.”
However, these guidelines are less concerning than OSFI’s original draft (which proposed things like requalification on renewal). Moreover, in many ways this news isn’t as market-shaking as today’s Department of Finance announcement.
That said, here is what’s changing (Note: this applies to federally regulated lenders only):
There are significant changes on the way for a variety of borrowers. TD’s chief economist Craig Alexander told BNN that the impact of these guidelines is equivalent to “well over a percentage point (increase) in mortgage rates.”
However, these guidelines are less concerning than OSFI’s original draft (which proposed things like requalification on renewal). Moreover, in many ways this news isn’t as market-shaking as today’s Department of Finance announcement.
That said, here is what’s changing (Note: this applies to federally regulated lenders only):
- HELOCs: The maximum loan-to-value on a HELOC will drop from 80% to 65%. That will sting borrowers who leverage HELOCs for productive purposes (e.g., as substitutes for open mortgages, or as a low-cost borrowing source for income-generating investments or small business). However, lenders can still provide a 15% amortizing mortgage on top of a HELOC, for 80% loan-to-value total. OSFI tells us: “Existing HELOCs are not affected, but future offerings are subject to the limits.”
- Qualifying Rates: The qualifying rate is being toughened for conventional mortgages. For variable rates and fixed terms less than five years, it will be “the greater of the contractual mortgage rate or the five-year benchmark rate published by the Bank of Canada.” This will push a small number of borrowers into 5-year fixed mortgages because they won't qualify for shorter terms.
- Stated Income: Going forward, all self-employed borrowers must provide “reasonable” income verification (e.g., a Notice of Assessment). Most lenders already have such policies. It appears that true “no-income documentation” stated income mortgages are officially a thing of the past at mainstream lenders.
- Down Payments: “Cash back should not be considered part of the down payment,” says OSFI. This effectively eliminates 100% financing, and is one of the most common sense guidelines of them all.
Federally regulated lenders have until “no later than fiscal year-end 2012” to comply with these guidelines. That ranges from October 31, 2012 for major banks to March 31, 2013 for other institutions). However, OSFI expects them to comply sooner if possible, so we may see some of these changes within a few months, if not weeks.
There’s no telling yet if provincial regulators will impose the same guidelines on the lenders they regulate (like credit unions).
Information directly from http://www.canadianmortgagetrends.com
Tuesday, June 12, 2012
Canadian Home Income Plan - CHIP
So, what is CHIP, why CHIP, and why now?
What is CHIP?
- The Canadian Home Income Plan (CHIP) is a reverse mortgage giving seniors access to as much as 40% of their equity, with NO PAYMENTS for as long as they live in the home. Instead of paying monthly, the interest is simply added to the mortgage balance that becomes due when the home is sold.
- CHIP is designed for clients that are 55 or older, lack cash flow, and don’t want to move.
Why CHIP?
- There is no credit check, and no debt servicing. The approval is simply based on the client’s age and the property.
- There are many reasons to take a CHIP mortgage:
-A traditional
mortgage requires a monthly payment that many simply can’t afford, so they
can’t access their equity without selling the home they love. Even an LOC
will eventually run out of the ability to pay itself, still
leaving the client with a payment they truly can’t afford.
-One spouse
has passed away, leaving the survivor with the same monthly debts, but half the
monthly income. CHIP can give the cash flow needed to keep on going.
-The money can
be used for anything: Investing to increase cash flow, paying out of
foreclosure, paying property taxes, debt consolidation, early inheritance so
they can enjoy giving the money without the worry of paying for it, higher
quality of life, etc.
- With a 15 year average home appreciation of 6% in Canada, and the reverse mortgage typically going no higher than 40% LTV, history has shown that equity erosion is really not something to be worried about.
Why now?
- CHIP received bank status in Oct 2009, lowering cost of funds, and allowing the product to be offered at a much more reasonable interest rate. CHIP offers, variable, 6 month, 1, 3 & 5 year terms. Call or email for details.
- The baby boomers are reaching retirement years, and many have arrived with more debt and less income than they had planned for.
- 84% of seniors want to stay in their home, but with limited cash flow, monthly debts, and a dwindling retirement fund, many are forced to sell the home they love and downsize to live.
- Ever tightening mortgage qualification rules are making it harder for people to access their equity, so no credit checks and no debt servicing makes this an appealing product.
Wednesday, June 6, 2012
OSFI nixes requalifying guideline
From CAAMP’s mouth to OSFI’s ear. The federal regulator issued a
letter Wednesday clarifying its position on re-qualifying borrowers at
renewal -- effectively maintaining the status quo and confirming
CAAMP's understanding.
“The following provides a brief description of OSFI’s decisions on key issues, which will be reflected in the final Guideline,” writes the regulator in a letter sent to federally regulated financial institutions Wednesday. “Re-qualification at Renewal – current practice regarding residential mortgage renewals has served FRFIs well. OSFI agrees, for example, that having a good payment record is one of the best indicators of credit worthiness. OSFI, therefore, expects that FRFIs themselves will remain responsible for deciding what level of review to place on borrowers’ qualifications at the time of renewal.”
The letter confirms the message coming from CAAMP CEO Jim Murphy, the association leader telling MortgageBrokerNews.ca last week that OSFI was prepared to hold its fire on the most contentious component of its draft guidelines for mortgage underwriting.
At the same time, the message confirms that the regulator will uphold its guideline reducing the
the maximum loan-to-value ratio for HELOCs to 65 per cent.
Still, brokers appeared most concerned about the possibility of lenders having to re-qualify clients at each and every renewal.
The OSFI decision may leave some room for lenders to do just that, however.
"FRFI renewal practices should be articulated in internal policies governing their underwriting of residential mortgage loans," writes OSFI. "FRFIs, however, will be expected to refresh the borrowers’ credit metrics periodically (not necessarily at renewal) so that FRFIs can effectively evaluate their credit risk.”
http://www.mortgagebrokernews.ca
“The following provides a brief description of OSFI’s decisions on key issues, which will be reflected in the final Guideline,” writes the regulator in a letter sent to federally regulated financial institutions Wednesday. “Re-qualification at Renewal – current practice regarding residential mortgage renewals has served FRFIs well. OSFI agrees, for example, that having a good payment record is one of the best indicators of credit worthiness. OSFI, therefore, expects that FRFIs themselves will remain responsible for deciding what level of review to place on borrowers’ qualifications at the time of renewal.”
The letter confirms the message coming from CAAMP CEO Jim Murphy, the association leader telling MortgageBrokerNews.ca last week that OSFI was prepared to hold its fire on the most contentious component of its draft guidelines for mortgage underwriting.
At the same time, the message confirms that the regulator will uphold its guideline reducing the
the maximum loan-to-value ratio for HELOCs to 65 per cent.
Still, brokers appeared most concerned about the possibility of lenders having to re-qualify clients at each and every renewal.
The OSFI decision may leave some room for lenders to do just that, however.
"FRFI renewal practices should be articulated in internal policies governing their underwriting of residential mortgage loans," writes OSFI. "FRFIs, however, will be expected to refresh the borrowers’ credit metrics periodically (not necessarily at renewal) so that FRFIs can effectively evaluate their credit risk.”
http://www.mortgagebrokernews.ca
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