So How Much Do You Owe?

Payment to CRA of your balance owing for 2007 personal income tax was due yesterday for all personal income tax filers including self-employed.

If you did not pay your 2007 taxes on time or if there is a balance owing for 2007 on your Notice of Assessment, CRA will charge compound daily interest starting May 1, 2008, on any unpaid amounts owing for 2007.

This includes any balance owing if they reassess your return.

In addition, CRA will charge you interest on any penalties, starting the day after your return is due. The rate of interest they charge can change every three months.

Currently, the interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums is 8%.

If you have amounts owing from previous years, CRA will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

If you owe tax for 2007, and do not file your return for 2007 on time, CRA will charge a late-filing penalty.

The penalty is 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

If they charged a late-filing penalty on your return for 2004, 2005, or 2006 your late-filing penalty for 2007 will be 10% of your 2007 balance owing, plus 2% of your 2007 balance owing for each full month that your return is late, to a maximum of 20 months.

As you can see, it is in your best interest to pay them as soon as possible and I may be able to help you with that.

Just go to my website www.joemalek.com , click to get started and then click on 2nd mortgage link to complete your online request and please, don’t hesitate to call me with any questions.

Thank you

Joe Malek, AMP
www.joemalek.com

Bank of Canada Cuts Rate

Your line of credit rates will be reduced by another 0.50% due to another reduction in Bank of Canada rate. This is great news but I think there will be further reductions to stabilize this slowing economy.

If you are buying a new home or refinancing your mortgage then consider adjustable rate mortgage to ride the wave. It looks like rates will remain low until fall 2009 or early 2010.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

More rate cuts likely says Bank of Canada

Article from Canwest News Service Published: Wednesday, April 02, 2008

OTTAWA -- More interest rates cuts may be necessary to buffer Canada from the impact of the U.S. economic slowdown, according to the senior deputy governor of the Bank of Canada.

Paul Jenkins said "the risks surrounding the Canadian economy have shifted to the downside, resulting in our decision to lower our policy interest rate by 50 basis points to 3.5%."

"We also said that further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to achieve the two per cent inflation target over the medium term," according to the text of a speech delivered Wednesday morning to the London, Ont., Chamber of Commerce.

The Bank of Canada's next interest rate decision will be made at its April 22 meeting.

Jenkins said the economy faces three key challenges -- a U.S. downturn and the related financial turbulence, global trade imbalances and competition from emerging-market countries.

"The most immediate challenge facing the global economy is the marked slowdown in the U.S. economy. This slowdown involves several interconnected elements, and, given our close trade links to the United States, has very direct consequences for Canada," he said.

"What we are now confronting is a marked slowdown in global economic growth, emanating primarily from the sharp correction underway in the U.S. housing market and the associated tightening in credit conditions linked to the collapse of the U.S. subprime-mortgage market."

Mr. Jenkins added that "it's important to note that some slowing in global economic growth was necessary. After five to six years of nearly unprecedented growth, levels of economic activity around the globe were straining capacity limits and beginning to put upward pressure on inflation.

"With global economic growth slowing, it is unlikely that the higher prices of food and energy will spill over into prices and costs more generally, but this risk is something central banks are watching closely. In other words, central banks are focused on keeping inflation expectations well-anchored."

Eric Lascelles, chief economics and rates strategist at TD Securities, said that while Mr. Jenkins' speech "did not signal any sharp change in perspective by the Bank of Canada, it did very firmly reinforce the bank's distinctly dovish interpretation of recent events and of the prospects for the future."

"Recent healthy economic numbers for January and robust job gains appear to have done nothing to boost the Bank of Canada's confidence, and we remain comfortable in our call for several more consecutive 50-basis-point eases from the bank."

Avoid Foreclosure!

Happy Easter!

I am back from Florida where I spent the last 2 weeks looking at about 40 foreclosed properties and over 100 pre-foreclosures.

I couldn’t believe my eyes when I saw the countless for sale signs on virtually every street I drove through.

It certainly looks like America is up for sale!

Thousands of people were already kicked out from their homes and hundreds of thousands will follow them soon unless they start doing something about it very quickly.

In one of the homes, one unlucky homeowner left all belongings behind, including all furniture, TV’s and kitchen stuff. All they were able to grab was their clothing.

It is heart breaking to see how many people are loosing their homes, especially knowing that many had good options available to them.

If you are getting behind on your mortgage payments, taxes or you have unpaid liens and judgments then please don’t ignore your situation and avoid foreclosure today!

Give me a call or visit my website where you can complete the on-line application form and I’ll do all I can to help you.

Thank you

Joe Malek, AMP
www.joemalek.com

Cash in on Bank Owned Properties!

I am looking for a couple of key business partners who are interested in making extra cash by investing in Florida pre-foreclosures and bank owned properties.

You are probably aware of the mortgage crisis which hit the U.S. housing market resulting in mounting foreclosures. While this is a bad news for the economy, it is a great news for real estate investors who already started snapping properties at 35-50% of assessed value.

Of course 35-50% discount on a Detroit property doesn't excite me right now but 35-50% discount on a bank owned waterfront property in Florida is a different story.

I have access to hundreds of bank owned properties in Florida and I am getting ready to start making deals... and you could be making 50% of every dollar I make.

If you have at least $100,000 cash available then feel free to visit my www.privateinvestor.ca to complete a short form and I'll get back to you with details.

What Is Mortgage Default Insurance

There are two types of mortgage insurance people often confuse. One is mortgage default insurance and the other is mortgage life insurance.

MORTGAGE DEFAULT INSURANCE
One of the first decisions to be made in the mortgage application process is whether or not the mortgage needs to be insured.

Mortgage lenders like banks, trust companies, credit unions and insurance companies are regulated by either the Federal or Provincial governments. Generally speaking, regulations state a maximum loan-to-value ratio of 80% or more.

This means that these institutional lenders cannot normally make a loan that is more than 80% of the market value of any property unless the mortgage is insured. Mortgage loan insurance may be available for loans up to 95% of the property value.

This mortgage insurance provides protection for the lender in case of the borrower default. Thus, mortgage insurance acts to transfer risk from the mortgage lender to the mortgage insurer. The mortgage lender pays a mortgage insurance premium to the insurer in exchange for assuming the risks of the borrower defaulting and generally passes that cost onto the borrower.

There are three mortgage insurance firms in Canada, Genworth Financial, CMHC (Canada Mortgage Housing Corporation and AIG United Guaranty.

In general, the process of obtaining mortgage loan insurance is similar for the mortgage insurance program offered by all three companies. The prospective borrower applies for a mortgage loan and loan insurance at the same time. If both applications are accepted, the lending institution will calculate the amount of mortgage premium the borrower pays.

High ratio mortgages are subject to a graduated mortgage insurance premium based on the loan-to-value ratio. The higher the loan-to-value ratio is, the higher is the premium.

The lender pays the insurer a single premium, the cost of which is generally passed on to the borrower. The premium is paid at the time of closing. The borrower either pays the premium in a lump sum payment, or more commonly, adds it to the loan amount and repays it with the regular mortgage payment.

If the premium is added to the loan amount, the amount of the premium is not included in the calculation of the loan-to-value ratio. However, the gross debt service ratio (GDS) applies to the full amount of the mortgage payments, including the amount that repays the insurance premium. As well, if the premium is added to the loan, the full face value of the loan, including the premium, is insured. No additional fees or premiums for loan insurance are charged annually, or upon renewal of a mortgage at the end of the term, even though the insurance is in force for the full amortization period.

If a borrower defaults on an insured mortgage loan, the lender begins the legal process of Power of Sale and makes a claim against the borrower on the personal covenant. Also, the lender makes a claim with the insurer. Once the Order for Sale is granted at the end of the redemption period, the lender lists the property for sale. If the sale proceeds are insufficient to repay the mortgage balance, the insurer pays the lender the difference. At that time, the lender assigns the personal claim against the borrower to insurer. (Note: the legal process may differ depending on the province where the property is situated.)

Genworth and CMHC both have default management programs to provide lenders with the necessary tools to make timely and cost effective decisions to assist their customers in dealing with temporary financial setbacks.

Joe Malek, AMP
Accredited Mortgage Professional
http://www.joemalek.com/

Benefits of Refinancing

There are a number of benefits which may be associated with refinancing a home. While there are some situations where refinancing is not the right decision, there are a host of benefits which can be gained from refinancing under favorable conditions.

Some of these benefits include lower monthly payments, debt consolidation and the ability to utilize the existing equity in the home. Homeowners who are considering re-financing should consider each of these options with their current financial situation to determine whether or not they wish to refinance their home.

Lower Monthly Payments

For many homeowners the possibility of lower monthly payments is a very appealing benefit of refinancing. Many homeowners live paycheck to paycheck and for these homeowners finding an opportunity to increase their savings can be a monumental feat.

Homeowners who are able to negotiate lower interest rates when they refinance their home will likely see the benefit of lower monthly mortgage payments resulting from the decision to refinance. Each month homeowners submit a mortgage payment. This payment is typically used to repay a portion of the interest as well as a portion of the principle on the loan.

Homeowners who are able to refinance their loan at a lower interest rate may see a decrease in the amount they are paying in both interest and principle. This may be due to the lower interest rate as well as the lower remaining balance.

When a home is refinanced, a new mortgage is taken out to repay the first mortgage. If the existing mortgage was already a few years old, it is likely the homeowner already had some equity and had paid off some of the previous principle balance. This enables the homeowner to take out a smaller mortgage when they refinance their home because they are repaying a smaller debt than the original purchase price of the home.

Debt Consolidation

Some homeowners begin to investigate refinancing for the purpose of debt consolidation. This is especially true for homeowners who have high interest debts such as credit card debts. A debt consolidation loan enables the homeowner to use the existing equity in their home as collateral to secure a low interest loan which is large enough to repay the existing balance on the home as well as a number of other debts such as credit card debt, car loans, student loans or any other debts the homeowner may have.

When refinancing is done of the purpose of debt consolidation there is not always an overall increase in savings. Those who are seeking to consolidate their debts are often struggling with their monthly payments and are seeking an option which makes it easier for the homeowner to manage their monthly bills.

Additionally, debt consolidation can also simplify the process of paying monthly bills. Homeowners who are apprehensive about participating in monthly bill pay programs may be overwhelmed by the amount of bills they have to pay each month.

Even if the value of these bills is not worrisome just the act of writing several checks each month and ensuring they are sent, on time, to the correct location can be overwhelming. For this reason, many homeowners often refinance their mortgage to minimize the amount of payments they are making each month.

Using the Existing Equity in the Home

Another popular reason for refinancing is to use the existing equity in the home. Homeowners who have a considerable amount of equity in their home may find they are able to cash out some of this equity for other purposes. This may include making improvements to the home, starting a business, taking a dream vacation or pursuing a higher degree of education.

The homeowner is not limited in how they can use the equity in their home and may refinance a home equity line of credit which can be used for any purpose imaginable. A home equity line of credit is different from a loan because the funds are not disbursed all at once. Rather the funds are made available to the homeowner and the homeowner can withdraw these finds at anytime during the draw period.

If you would like to refinance for any reason then I may be able to achieve your goals quickly. Go to my http://www.joemalek.com/ website and complete the on-line application to get started.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional
http://www.joemalek.com/

Foreclosure Help

Property foreclosures are at record levels across the United States and Canada. In some areas of United States they're up 1,000 percent over last year. The owners of tens of thousands more properties face imminent default as they struggle to cope with their mortgage payments and economic woes.

In Canada, almost half of mortgage applications I received in 2007 were from homeowners with mortgage arrears and this trend continues today.

So what should you do when you receive your first foreclosure notice of sale?

Your best option is not to ignore the foreclosure notice and workout an agreement between you and your current lender to reinstate your delinquent loan through the payment of a lump sum or a schedule of payments over a period of time.

If you got behind in your payments because you lost your job and now you are working again, your lender may allow you to pay the money back through installment payments over three to six months.

Your lender may also allow you to pay a reduced monthly payment until you have the opportunity to get back on your feet and pay any remaining arrears in one lump sum.

This is called forbearance and it may be an oral or written agreement.

If you are not able to work out forbearance agreement then try a loan modification. A loan modification is a change in the terms of your current mortgage loan including decreasing the interest rate and re-amortizing your remaining balance resulting in lower monthly payments.

Generally, your lender will consider a loan modification when your income has been decreased and you are unable to make your mortgage payments on the existing terms, but you will be able to keep the loan current after the loan modification.

Now what if you are not able to workout an agreement with your lender?

Well, you do have more options…

Mortgage refinancing is a good option when a new lender would allow you to refinance existing mortgage, wrap in any late payments and fees, and cash out part of the equity in your home so you can regain control of your deteriorating financial situation.

But that’s easier said than done.

This option may be only work if you had an outstanding credit history in the past and you can prove that you can support the new mortgage payment.

If you are not able to refinance then consider a second mortgage loan to make up any back payments, late fees and other charges necessary to reinstate your loan.

You will be required to make an additional mortgage payment to cover the principal and interest payments on the second loan.

Of course you have other options which include selling your home or bankruptcy but that should be your last option!

I could help you to avoid loosing your home by refinancing your current mortgage or arranging a short term second mortgage loan.

To get started please click here to complete your request online and I’ll get back to you quickly!

Thank you

Joe Malek, AMP
Accredited Mortgage Professional
www.joemalek.com
1-888-292-2156

How To Avoid Foreclosure?

Enhanced plan will be introduced today for people who are in trouble with their mortgages.

It’s called “Project Life Line” and it is going to involve giving homeowners who are 90 days late with their mortgage payments extra 30 days break.

These homeowners will get extra 30 days to work out a payment before the bank starts foreclosure.

Usually after 90 days of missed mortgage payments banks institute foreclosure matters but now people are going to get extra 30 day break to work out better terms with their banks.

Here are the banks involved and others may get involved but this deal was made with:

Bank of America
Countrywide Financial
JP Morgan
Washington Mutual
Wells Fargo

This is basically going to force the homeowner discussion with their bank because what typically happens is that banks call and tell homeowners that they got to make their payment fast to avoid foreclosure but people avoid these calls and the big discussions don’t happen so banks have no choice but to start foreclosure matters.

It is crucial that you don’t avoid these calls. Make arrangements with your bank to bring those payments up to date to and avoid losing your home.

This new “Project Life Line” is available only in U.S. but if you are a Canadian homeowner facing foreclosure then I urge you to click here and apply for a second mortgage at my website today because I have private lenders who may be able to help you fast.

If your property is in United States than click here and get a quote from 4 different lenders.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional
www.joemalek.com

Are You Considering Refinancing?

If you are considering refinancing your home you may have a wealth of options available to you. However, you may find yourself feeling overwhelmed by this wealth of options.

This process doesn’t have to be so difficult though. You can greatly assist yourself in the process by taking a few simple steps.

First, you should determine your refinancing goals. Next, you should consult with a refinancing expert and finally you should be aware that refinancing is not always the best solution.

Determine Your Goals for Refinancing

The first step in any refinancing process should be for you to determine your goals and why you are considering refinancing. There are many different answers to this question and none of the answers are necessarily right or wrong. The most important thing is that you are making a decision which helps you to achieve your financial goals. While there are no right or wrong answer to why refinancing should be considered there are, however, certain reasons for refinancing which are very common. These reasons include:

* Reducing monthly mortgage payments
* Consolidating existing debts
* Reducing the amount of interest paid over the course of the loan
* Repaying the loan quicker
* Gaining equity quicker

Although the reasons listed above are not the only reasons why you might consider refinancing, they are some of the most popular reasons. They are included here for the purpose of getting you to think. You may find your mortgage refinancing strategy fits into one of the above goals or you may have a completely different reason for wanting to refinance. The reason for wanting to refinance is not as important as determining this reason. This is because you, or even your financial advisor, will have a difficult time determining the best refinancing option for you if he does not know your goals.

Consult with a Refinancing Expert

Once you have figured out why you want to refinance, you should consider meeting with a refinancing expert to determine the best refinancing strategy. This will likely be a strategy which is financially sound but is also still geared to meeting your needs.

If you feel as though you are particularly well versed in the subject of refinancing you might consider skipping the option of consulting with a refinancing expert. However, this is not recommended because even the most educated homeowner may not be aware of the newest refinancing options being offered by lenders.

While not understanding all the options may not seem like a big deal, it can have a significant impact. Homeowners may not even be aware of mistakes they are making but they may hear of friends who refinanced under similar conditions and receive more favorable terms. Hearing these scenarios can be quite disheartening for some homeowners especially if they could have saved considerably more while refinancing.

Consider Not Refinancing as a Viable Option

Homeowners who are considering refinancing may realize the importance of evaluating a number of different refinancing options to determine which option is best but these same homeowners may not realize they should also carefully consider not refinancing as an option. This is often referred to as the “do nothing” option because it refers to the conditions which will exist if the homeowner does not make a change in their mortgage situation.

For each refinancing option considered, you should determine the estimated monthly payment, amount of interest paid during the course of the loan, year in which the loan will be fully repaid and the amount of time you will have to remain in the home to recoup closing costs associated with refinancing. You should also determine these values for the current mortgage. This can be very helpful for comparison purposes. You can compare these results and often the best option is quite clear from these numeric calculations. However, if the analysis does not yield a clear cut answer, you may have to evaluate secondary characteristics to make the best possible decision.

If you are considering refinancing your mortgage for whatever reason then feel free to apply on-line at my website.

I will evaluate your current situation at no charge and will present you with up to five financing options in less than 24 hours.

Click here to get started.

To Your Success!

Joe Malek, AMP
Accredited Mortgage Professional
http://www.joemalek.com/

Welcome to my blog

It has been a long time coming but it is finally here… a place where I can share my random thoughts, ideas, insights, etc. as they land in my head with you, my website visitors, my clients and subscribers, wherever I am in the world, no matter what I am doing (as long as there is an Internet connection ;-)

So what can you expect from my blog? Great question… glad you asked!

Every month, as often as possible, I will share with you my personal opinions, thoughts, and insights on numerous different credit topics and mortgage strategies.

If you want to get to know me and what is going on in the mortgage industry then this is the place to be!

So once again, welcome and please check back on a regular basis for new mortgage strategies and ideas so you can be debt free faster!

Thank you

Joe Malek
www.joemalek.com