Managing debt while rates growTerry McBride , For Canwest News Service  SASKATOON — Canadians have taken advantage of extremely low interest rates to overextend themselves. The Bank of Canada wants to try to prevent inflation by raising interest rates to slow the economy down. How will debtors manage?Inflation vs. deflationActually, debtors generally prefer inflation (when prices go up) because that can make it easier to repay a debt, which is a fixed dollar amount owing. Loan payments become more affordable when wages keep up with inflation.Debtors usually fear deflation (when prices go down) because it becomes more difficult to repay an obligation when the fixed number of dollars can buy more. Deflation is already a major concern these days in Europe where some governments are raising taxes and cutting back on spending to tackle mushrooming public debts. Businesses there may be forced to cut prices and workers’ wages to cope with the economic slowdown.Debtors fear deflation. How can they handle debt payments after their wages are cut or they lose their jobs? Serious household debt management issues arise.Mortgage termIf your mortgage is coming up for renewal, how do you choose the best mortgage term? If you have had a variable or floating rate of interest tied to the prime rate, should you take the safe route and lock in a fixed, usually considerably higher, interest rate for five years?If your mortgage payments rise, then you will have to look at various ways to manage other debts.ConsolidateOne popular debt management strategy is to combine various loans into your mortgage or a line of credit. Consolidation can eliminate high-interest credit card debt. Free up some cash flow by reducing your interest costs.Talk to a professional debt counsellor. Can you have a single monthly payment? You could continue to make the same level of payments on your consolidated loan as you did before consolidation. Aim to reduce your principal owing and cut interest costs.AmortizationKnowing how amortization works will help you to understand how to properly manage your debts. Amortization is how long you are scheduled to repay an instalment loan.If interest rates rise, consider stretching the repayment period on an instalment loan to reduce the size of your monthly payments. Making your payments smaller seems very attractive at first. However, by making payments over a longer time period you will eventually pay much more interest in the long run.Debt snowballHere is a strategy for cutting down your overall debt level:Make a list of your debts. Add up how much you pay on each loan.Pick the smallest debt to tackle first. Pay the minimum on all debts except for your target debt. Pay whatever is left on your target debt until it is paid off. Then, continue with the debt snowball strategy by choosing the next debt on the list as your target debt. Pay it off.Borrow wiselyThe next time you have to borrow, avoid buying something that drops in value. The only time you should buy something using debt is if it is something that will appreciate in value or generate additional cash flow for you.As a general rule, if you are buying something with borrowed money, make sure that what you buy lasts longer than the debt. Don’t add to your debt burden by going on a vacation financed by credit cards.Emergency fundDo you have to borrow when you have an emergency? Instead you should build an emergency fund with cash held in reserve. You could use a Tax-Free Savings Account, the cash surrender value of a whole life policy or a Canada Savings Bond payroll savings plan, for example. Having cash available to pay for an emergency will give you greater financial security than an untapped line of credit.Terry McBride is a member of Advocis (The Financial Advisors Association of Canada)
Read more: http://www.financialpost.com/personal-finance/mortgage-centre/Managing+debt+while+rates+grow/3136091/story.html#ixzz0qXodyQrw

Mortgage News

EFFECTIVE APRIL 19TH, 2010, the qualifying interest rate used toassess borrower eligibility will change for loans with a loan to value ratiogreater than 80% as follows:

FIXED & VARIABLE RATE MORTGAGES:For loans with a fixed rate term of LESS than 5 years, and for ALL variable rate mortgages, the qualifying interest rate is the greater of the Benchmark Rate and the Contract Interest Rate

For loans with a fixed term of 5 years OR MORE, the qualifying interest rate is the Contract Interest Rate.The benchmark rate can be found at the Bank of Canada link: http://www.bankofcanada.ca/en/rates/interest-look.html. This rate is set every Wednesday, and is item V121764. This rate is currently 5.39%.

CHANGES TO THE CMHC SELF EMPLOYED PROGRAMEFFECTIVE APRIL 9TH, 2010

Annie de la ChevrotiereMortgage Broker/Ownerthe Mortgage Centre, Garibaldi Mortgage Inc.#213-4368 Main Street, Whistler, BC V0N 1B4 Canada/US Toll Free Tel: 1-877-932-2688 ext 10Canada/US Toll Free Fax: 1-877-932-2690Video/Skype: annie.de.la.chevrotiereWeb Site: www.garibaldimortgage.com 

Find us on facebook @ www.facebook.com/garibaldimortgageFollow us on Twitter @ www.twitter.com/GaribaldiMtg Whistler Cell:   604-905-8483Squamish Cell: 604-815-9843

Prime remains at 2.25%

New low 5 year quick close

5 year Closed Variable rate of Prime minus .25%

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Find us on facebook @ www.facebook.com/garibaldimortgageFollow us on Twitter @ www.twitter.com/GaribaldiMtg

Please contact your broker from our website www.garibaldimortgage.com

Your Mortgage Centre Office: Garibaldi Mortgage 213-4368 Main Street Whistler, British Columbia, V0N 1B4 Phone: 604-905-3800 Toll Free: 877-932-2688 Facsimile: 604-905-3801 Toll Free Fax: 877-932-2690 Email: gmo@mortgagecentre.com

We work for you, not the lenders.   Give your clients access to preferred rates. As your Mortgage Specialist, I have access to virtually every major lender in Canada. But as you can see, I’ve reserved my best rates for your clients. What’s more, once I’ve analyzed your clients’ needs and utilized my seasoned negotiating skills on their behalf, it’s entirely possible their rates may be even more attractive than what’s listed. Please contact me today. Rates as of Wednesday, February 3, 2010 Term Ours Banks 6 months 3.85 4.65 1 year 2.25* 4.35 2 year 2.90* 3.95 3 year 3.25* 4.50 4 year 3.74* 5.14 5 year 3.69*- 5.49 7 year 4.45 6.65 10 year 5.25* 6.80 15 year 9.20 9.55 25 year 9.30 9.65 Please talk to me to see if these rates are still current and applicable to your specific situation. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time. www.mortgagecentre.com/garibaldimortgage Each Mortgage Centre office is independently owned and operated.

Yes we are open for business throughout the Games!

Prime remains at 2.25%

- denotes decrease

+ denotes increase

* denotes some conditions apply

Please contact your broker from our website www.garibaldimortgage.com

Your Mortgage Centre Office: Garibaldi Mortgage 213-4368 Main Street Whistler, British Columbia, V0N 1B4 Phone: 604-905-3800 Toll Free: 877-932-2688 Facsimile: 604-905-3801 Toll Free Fax: 877-932-2690 Email: gmo@mortgagecentre.com

We work for you, not the lenders.   Give your clients access to preferred rates. As your Mortgage Specialist, I have access to virtually every major lender in Canada. But as you can see, I’ve reserved my best rates for your clients. What’s more, once I’ve analyzed your clients’ needs and utilized my seasoned negotiating skills on their behalf, it’s entirely possible their rates may be even more attractive than what’s listed. Please contact me today. Rates as of Monday, February 1, 2010 Term Ours Banks 6 months 3.85 4.65 1 year 2.25* 4.35 2 year 2.90*- 3.95 3 year 3.25* 4.50 4 year 3.74*- 5.14 5 year 3.75* 5.49 7 year 4.45 6.65 10 year 5.25* 6.80 15 year 9.20 9.55 25 year 9.30 9.65 Please talk to me to see if these rates are still current and applicable to your specific situation. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time. www.mortgagecentre.com/garibaldimortgage Each Mortgage Centre office is independently owned and operated.

Please note we will be open for business as usual throughout the Olympic Games              GO CANADA!
Prime remains at 2.25%

+ denotes increase

- denotes decrease

* some conditions do apply

Please contact your broker through our website

www.garibaldimortgage.com

Your Mortgage Centre Office: Garibaldi Mortgage 213-4368 Main Street Whistler, British Columbia, V0N 1B4 Phone: 604-905-3800 Toll Free: 877-932-2688 Facsimile: 604-905-3801 Toll Free Fax: 877-932-2690 Email: gmo@mortgagecentre.com

We work for you, not the lenders.   Give your clients access to preferred rates. As your Mortgage Specialist, I have access to virtually every major lender in Canada. But as you can see, I’ve reserved my best rates for your clients. What’s more, once I’ve analyzed your clients’ needs and utilized my seasoned negotiating skills on their behalf, it’s entirely possible their rates may be even more attractive than what’s listed. Please contact me today. Rates as of Monday, January 25, 2010 Term Ours Banks 6 months 3.85 4.65 1 year 2.25* 4.35 2 year 2.95* 3.95 3 year 3.25* 4.50 4 year 3.80*+ 5.14 5 year 3.75*- 5.49 7 year 4.45 6.65 10 year 5.25* 6.80 15 year 9.20 9.55 25 year 9.30 9.65 Please talk to me to see if these rates are still current and applicable to your specific situation. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time. www.mortgagecentre.com/garibaldimortgage Each Mortgage Centre office is independently owned and operated.

Prime remains at 2.25%

- denotes decrease

+ denotes increase

* denotes some conditions apply

Please contact your broker from our website at

www.garibaldimortgage.com

Your Mortgage Centre Office: Garibaldi Mortgage 213-4368 Main Street Whistler, British Columbia, V0N 1B4 Phone: 604-905-3800 Toll Free: 877-932-2688 Facsimile: 604-905-3801 Toll Free Fax: 877-932-2690 Email: gmo@mortgagecentre.com

We work for you, not the lenders.   Give your clients access to preferred rates. As your Mortgage Specialist, I have access to virtually every major lender in Canada. But as you can see, I’ve reserved my best rates for your clients. What’s more, once I’ve analyzed your clients’ needs and utilized my seasoned negotiating skills on their behalf, it’s entirely possible their rates may be even more attractive than what’s listed. Please contact me today. Rates as of Wednesday, January 6, 2010 Term Ours Banks 6 months 3.85 5.20 1 year 2.25* 4.50 2 year 2.95* 5.00 3 year 3.25* 5.15 4 year 3.84* 5.44 5 year 3.84*- 5.84 7 year 4.45 7.00 10 year 5.25* 7.15 15 year 9.20 9.55 25 year 9.30 9.65 Please talk to me to see if these rates are still current and applicable to your specific situation. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time. www.mortgagecentre.com/garibaldimortgage Each Mortgage Centre office is independently owned and operated.

 BANK OF CANADA LEAVES OVERNIGHT RATE UNCHANGED • The Bank of Canada kept rates at their effective lower bound of 0.25% and reiterated its conditional commitment to do so until mid-2010 As widely expected, the Bank of Canada held the target for the overnight rate at 0.25%, and reiterated its commit­ment to keep rates at their effective lower bound through the second quarter of 2010. The Bank’s decision is consistent with a tepid start to the Canadian recovery, as a 0.4% growth rate in the third quarter of 2009 fell short of the Bank’s own projection. The Bank does recognize that developments on the global economic landscape have been slightly more positive than they had anticipated in October. However, these developments did not warrant any revisions to the Canadian economic outlook, and the significant amount of “fragilities” that remain are good justifications to keep rates at their lower effective bound in the near term. On the inflation front, while headline inflation has grown in-line with the Bank’s projections, core inflation has been slightly stronger. However, they continue to believe that the inflation rate will remain below the 2% target until mid-2011. The Bank stated that risks to the inflation outlook remain balanced, and have not changed since October’s MPR. Just to reiterate, the upside risks are stronger than expected global and domestic demand, and the downside risks are persistent strength in the Canadian dollar, and a more protracted global recovery. Even though the Canadian economy edged out of reces­sion in the third quarter, the rate of growth was nothing to write home about, and certainly not enough to encourage the Bank of Canada to move off the sidelines. Much in line with the Bank’s October outlook, the composition of eco­nomic growth has shifted away from net exports, to final domestic demand – a trend driven by the recent strength in the Canadian dollar. As such, the tepid third quarter is a reminder of the challenges that the Canadian economy will face along the road to recovery, in particular due to the nega­tive ramifications of a strengthening Canadian dollar. Like the Bank of Canada we believe that the Canadian recovery will strengthen through 2010, however as long as these fragilities remain the Bank of Canada will not be swayed to move quickly with interest rate hikes. Unlike the Bank we put slightly more weight on the downside risks associated with a mild U.S. recovery coupled with a strengthening Canadian dollar. As such, the Bank’s projection for 3.0% growth in 2010 and 3.3% in 2011 is still slightly more optimistic than our forecast for growth of 2.7% and 3.0% respectively. Our forecast is consistent with an output gap that finally closes – and with inflation reaching the Bank of Canada’s 2.0% target – in the second quarter of 2012, two quarters later than the Bank of Canada’s projection. As such, we believe that the Bank of Canada will stay put past its conditional commitment of June 2010, and the first rate hike will not come until the fourth quarter of next year. Diana Petramala, Economist 416-982-6420 This report is provided by TD Economics for customers of TD Bank Financial Group. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Financial Group and the members of TD Economics are not spokespersons for TD Bank Financial Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially differ­ent. The Toronto-Dominion Bank and its affiliates and related entities that comprise TD Bank Financial Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.

Prime remains at 2.25%

Please contact your broker through our website

www.garibaldimortgage.com

Your Mortgage Centre Office: Garibaldi Mortgage 213-4368 Main Street Whistler, British Columbia, V0N 1B4 Phone: 604-905-3800 Toll Free: 877-932-2688 Facsimile: 604-905-3801 Toll Free Fax: 877-932-2690 Email: gmo@mortgagecentre.com

We work for you, not the lenders.   Give your clients access to preferred rates. As your Mortgage Specialist, I have access to virtually every major lender in Canada. But as you can see, I’ve reserved my best rates for your clients. What’s more, once I’ve analyzed your clients’ needs and utilized my seasoned negotiating skills on their behalf, it’s entirely possible their rates may be even more attractive than what’s listed. Please contact me today. Rates as of Monday, November 23, 2009 Term Ours Banks 6 months 3.85 5.20 1 year 2.25* 4.50 2 year 2.95*- 5.00 3 year 3.25*- 5.15 4 year 3.90*+ 5.44 5 year 3.99*+ 5.84 7 year 4.45- 7.00 10 year 5.25* 7.15 15 year 9.20 9.55 25 year 9.30 9.65 Please talk to me to see if these rates are still current and applicable to your specific situation. Although we strive for accuracy, timeliness and completeness, information quoted is not guaranteed and may change at any time. www.mortgagecentre.com/garibaldimortgage Each Mortgage Centre office is independently owned and operated.