The Power of Education

Michael Hallett • Jul 18, 2016
Knowledge is power! With education comes limitless possibilities.

Are our kids learning the essentials in life? Are they being empowered to make life-changing decisions when they enter into the real world of economics?

The education that most kids in senior secondary school receive these days focuses on biology, math, physics, chemistry, English, physical education, social studies, mechanics, wood-working and home economics, not real life!

What about personal finance? We need to teach our kids about everyday economics.

Most people remember when they got their first credit card. What a disaster that was (for some people). If we aren't taught about how to use credit, it can quickly get out of hand. Most people think that if they have a $1,000 limit all is good as long as they don't exceed the limit —FALSE! Credit scores strengthen and increase if balances are at or less than 30% of the limit. There you go, you may have just learned something. What are most teenagers more concerned with, the growth of one's mutual fund or the latest and greatest Apple product.

Why not educate our kids about credit, day-to-day banking, mortgage financing, stocks, mutual funds etc... before leaving the protective confines of the International Bank of Mom and Dad. 

My entire mortgage practice is based solely on information and education — just look at the title of this monthly email. ALL of my clients are provided options in order for them to make an informed choice. I encourage all my clients to ask as many questions as possible, if there are unanswered questions then I am not doing my job correctly.

It's never too late to learn. The brain is a muscle that constantly needs exercise and craves new data. Keep feeding it. Ask questions, even if the answer seems obvious. Maybe the person answering will put a slightly different twist on the topic and reveal something new to you. This business I'm involved in yield new information on a daily basis, I thrive on it and it's a necessity of survival.

Here is an open invitation to all of you that made it through this blog. If you or your teenage child(ren) want a FREE comprehensive tutorial about how CREDIT REPORTS & SCORES are determined — more importantly, how bad credit and habits created now can affect your livelihood in the future — please contact me. I'm easily accessed by phone 604-616-2266 or by email michael@hallettmortgage.com.

Education is a priority for me, it should be for you too!

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Amazing stats about learning

  • 25% of children starting kindergarten in Canada lack the skills needed to learn how to read.
  • Every time 350,000 Canadians learn to read, our GDP goes up by $32 billion (i.e., a 1% increase in the nation’s literacy rate translates into a 2.5% GDP increase).
  • On average, Google processes over 40,000 search queries every second, over 3.5 billion searches per day and 1.2 trillion searches per year worldwide… whatever it may be, we are always learning.

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MICHAEL HALLETT
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Bridge Financing and Deposit Lending

By Michael Hallett • 24 Apr, 2024
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Understanding the Recent Housing Affordability Measures in Canada

By Michael Hallett • 18 Apr, 2024
In recent years, housing affordability has become a significant concern for many Canadians, particularly for first-time homebuyers facing soaring prices and strict mortgage qualification criteria. To address these challenges, the Canadian government has introduced several housing affordability measures. In this blog post, we'll examine these measures and their potential implications for homebuyers. Increased Home Buyer's Plan (HBP) Withdrawal Limit Effective April 16, the Home Buyer's Plan (HBP) withdrawal limit will be raised from $35,000 to $60,000. The HBP allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards a down payment on a home. By increasing the withdrawal limit, the government aims to provide young Canadians with more flexibility in saving for their down payments, recognizing the growing challenges of entering the housing market. Extended Repayment Period for HBP Withdrawals In addition to increasing the withdrawal limit, the government has extended the repayment period for HBP withdrawals. Individuals who made withdrawals between January 1, 2022, and December 31, 2025, will now have five years instead of two to begin repayment. This extension provides borrowers with more time to manage their finances and repay the withdrawn amounts, alleviating some of the immediate financial pressures associated with using RRSP funds for a down payment. 30-Year Mortgage Amortizations for Newly Built Homes Starting August 1, 2024, first-time homebuyers purchasing newly built homes will be eligible for 30-year mortgage amortizations. This change extends the maximum mortgage repayment period from 25 years to 30 years, resulting in lower monthly mortgage payments. By offering longer amortization periods, the government aims to increase affordability and assist homebuyers in managing their housing expenses more effectively. Changes to the Canadian Mortgage Charter The government has also introduced changes to the Canadian Mortgage Charter to provide relief to homeowners facing financial challenges. These changes include early mortgage renewal notifications and permanent amortization relief for eligible homeowners. By implementing these measures, the government seeks to support homeowners in maintaining affordable mortgage payments and mitigating the risk of default during times of financial hardship. The recent housing affordability measures announced by the Canadian government are aimed at addressing the challenges faced by homebuyers in today's market. These measures include increasing withdrawal limits, extending repayment periods, and offering longer mortgage amortizations. The goal is to make homeownership more accessible and affordable for Canadians across the country. As these measures come into effect, it's crucial for homebuyers to stay informed about the changes and their implications. Consulting with a mortgage professional can help individuals explore their options and make informed decisions about their housing finances. If you're interested in learning more about these changes and how they may affect you, please don't hesitate to connect with us. We're here to walk you through the process and help you consider all your options and find the one that makes the most sense for you.
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