Healthy Homes Renovation Tax Credit for Seniors

Homes Renovation Tax Credit for Ontario Seniors get $10K Tax Credit for Renovations. Ten thousand dollars in Tax credit will be available for Ontario seniors to renovate and improve accessibility. The bill passed in Ontario government with majority in favor.

It was a promise Premier Dalton McGuinty made a year ago during the last election campaign.  Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada said, “The tax credit is up to $10,000.00 in eligible home renovations or 15% up to $1,500 each year”

Health Minister Deb Matthews says in a press release.This Healthy home renovation tax credit will also help achieve the goals of our Action Plan for Health Care by keeping our loved ones out of hospitals and long-term care, and at home, where they want to be.

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Tax Credit and Savings – Canada Economic Action Plan

Canada Economic Action Plan

“Canadians can take full benefit from the following Tax Credit and Savings provided they are aware of them. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. Claiming these credits by filing online and using direct deposit will, in most cases, help Canadians to receive a refund in as little as eight days, compared to four to six weeks for a paper return” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, the largest Real Estate Investors network group in Canada.

Tax Credit and Savings

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Credit Score Calculation Canada

Credit score, also called as the Beacon score or FICO score is a credit scoring model proposed by Fair Isaac and Company. FICO scores are calculated based on information in your credit report which resides with the three major credit bureaus. The information contained in your file is compared to the information that exists in other consumer credit reports and derives a numerical score called the FICO score calculation canada

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories Payment History, Amount Owed, Length of credit history, new credit and the Types of credit used.

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Canadian Credit Repair Laws

Canadians  make all payments on time. You know your credit limits yet your having difficulties moving in to the ultimate good category you want to be in.   What are you doing wrong to damage your credit? There are so many misconceptions about credit that we often don’t realize how easy it is to damage our credit score.  The main problem is many of us don’t know how our credit score is calculated and therefore have no idea what we’re doing wrong. Payments are such a small ratio of what makes up your credit score.

canadian credit repair law

Before trying to improve our score we got to acknowledge all the steps we are taking when it comes to damaging our credit.

We try to stay away from credit the biggest myth is that credit cards means debt.  Having debt is bad does that mean having a credit card is also?  Not right having little or no credit can be detrimental to your credit score. Main idea of a credit score is to see how you cope with credit.  Bank and lenders have no idea how to deal with you if you have no previous credit history.  A credit card isn’t a bad idea having debt is bad.

 Strategy: Taking precautions on your spending to a small amount of your credit limit and making payments monthly can help out on building a firm credit score.

We stop keeping these cards or often limit our credit.  Canceling the extra card or lowering your credit limit is not a useful strategy to succeed in the credit world.    While these actions may help ease the temptation to spend, they can also hurt your credit score. Here’s how: One of the major chunks of your credit score is a “credit utilization ratio” which measured your limit-to-balance ratio on your cards.  As the ratio goes up, your credit score is likely to be negatively affected. Example: Your credit limit is $5,000 and your balance is $500. You credit utilization ratio is 10 percent. If you cut your limit to $2,500 but your balance remains at $500, your ratio would be 20 percent.

 Strategy: Having a high credit utilization ratio is a bad factor due to the fact it means you are using more of your credit limit.

There is only one type of credit.  We have credit cards, and your payments are on time, so you would think your credit is amazing.  Not entirely true.  Dodging different kinds of credits can affect your credit score negativity.  Despite having a credit card and no loans or mortgage could decrease your score.  Having no credit card and taking a school loan can also hurt your score.  The best way to make sure your increasing your credit score   is to keep a diverse amount of credit in your credit portfolio in addition to paying all of your bills on time.

Strategy:  Keep in mind that adding a mortgage or car loan can actually help your credit score.

We follow all the rumors about good debt.  One of the worst misconceptions about credit is the myth that holding on to a little bit of debt can actually help your credit score. The problem is the total amount of debt that you owe, along with your credit utilization ratio, is a big factor in calculating your credit score. Having debt doesn’t just affect your credit score but it could possible come into additional charges that you don’t pay

  Strategy: The less money you owe the better.

We don’t check on our credit until we want something from it. It’s been a while since you check your credit score.  What’s the point; it was fine where you left it?  Then one day you decide to go buy a car or apply for mortgage and you somehow got denied.   It’s only then that you learn your identify was stolen and somehow someone opened up credit cards underneath your name destroying everything you’ve built with your credit.   Now you’re confused on how to start up again and you’re not able to get that house or car you wanted.

 Strategy: Your credit score can be affected by things outside of it.  Lenders could possibly make a mistake.  Your identity could be stolen with credit opened in your name. Without you acknowledging your credit score can bring you down if not regularly checked.   If you think you’ll be applying for a loan or line or credit you should be motoring your credit scores once a year or even monthly.  Consider a credit monitoring service if you want to regularly keep tabs on your credit.

There are two very important websites where Canadians can learn more.

Credit Reports, Credit Scores and Credit Repair by Federal Government of Canada

The most important piece of the puzzle is making payments on time as all this other advice is helpful.  Timely payments show that you know how to handle your credit without taking on too much debt.

Strategy: A piece of advice, high credit score can be obtained if you have less debt and more credit.

canadian credit repair law

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How to Understand Mortgage Interest Rates in Canada

understand mortgage interest ratesInterest rates are going to rise again. Whether you are a sophisticated Professional Real Estate Investor or a Mortgage Virgin, it is good to have basic knowledge about mortgage financing. The options pertaining to lenders, terms, rates, terminology and new products can be overwhelming and will baffle you. Most Canadians like to do lot of research before signing the dotted line, therefore it is vital that you, the Professional, be well informed.

understand mortgage interest rates

Real Estate prices across the country have skyrocketed in recent years, boosted by rock-bottom interest rates that have made it cheaper than ever for Canadians to finance home purchases. Changes to mortgage application rules and the introduction of harmonized sales tax in Ontario and British Columbia are likely to push people into the housing market before the expected slowdown.
From here forth, you the Mortgage Virgin, will be introduced to new tactics.

Higher Credit Score Requirements

Want a mortgage? You’d better have top-notch credit to get the best deal, or in some cases, to get approved at all. Although mortgages can be arranged in most cases for credit scores down to 620, they often come with a higher rate and/or fees. The sum of your Down Payment can also determine how you qualify for a mortgage. If you are putting down more than 20% the qualifying criteria is different. However, if the sum of your down payment is between 5% to 19.9%, the qualifying criterion is completely different. Be aware of these two options.

Time to obtain Mortgage commitment from the lender

Realtors occasionally push buyers to get preapproved and write “clean” offers without conditions. Unfortunately, preapprovals don’t guarantee a “final” approval. Preapprovals are often just glorified rate holds. Proper financing conditions give you time to arrange an iron-clad approval before you commit to buy.


How long and at what rate?

The term you elect often effects the total interest you pay more than the rate itself. Consult a professional to pick the right term from the start. Have him/her run a rate simulation to show which term would save you the most money over five years. Feel free to shop Credit unions and any other lenders. Please do not allow anyone to pull your credit report. If you’re credit report is pulled more than 3 times a year, your credit rating goes down.

Payments, Privileges & Penalties

Always be prepared for rainy days as well other circumstance life may throw at you. It’s imperative to be prepared for the good, the bad and the ugly. If you are getting paid weekly, make weekly mortgage payments, if biweekly do the same. Would the lender offer you the privilege to increase the payments in case you attained increased cash flow or a raise. Be aware of the penalty cost in case you need to sell your home prior to mortgage maturity and portability clause.


If you have excellent credit, use your local financial institution as a starting point for locating rates. Ask your mortgage planner to find a lender who will beat the best rate in your province. Use a mortgage professional who compares all lenders; not just a handful. Do your own homework as well. Mortgage brokers only deal with the Lenders who pay them if you are qualified Buyer.

Understand Amortization period

Don’t consider a long-term amortization (i.e. 30-35 years) unless you are confident you’ll have spare funds to make prepayments. A 35-year amortization will lower your monthly payments to 16 per cent on a 4% interest rate of $250,000 mortgage. However, the total interest you’ll pay increases 32 per cent versus a 25-year amortization.

Use RRSPs for a down payment as well as a Tax Refund

If you qualify as a first-time home buyer, you and your spouse can each use up to $25,000 from your RRSP as a down payment. CRA will not deem that money taxable income as long as you annually repay 1/15th of the amount withdrawn. Do not forget the big check coming to you as Tax refund from Canada revenue Agency. Use the refund to pay down your debts or mortgage.

Only pay for What you need

Paying extra for an open mortgage, a “capped” variable rate, cash back, large prepayment options, or a 10-year term is often unnecessary. Have your mortgage professional compare the estimated interest cost of alternatives. Check with local credit unions for better terms.
Consider a hybrid Mortgage

Hybrid mortgages are part fixed and part variable. You determine how much of your mortgage goes in each part. Since no one knows how high rates will climb, hybrids nicely diversify your interest-rate exposure. Do your homework and decide based on your comfort level, not the mortgage broker or the Bank.

Mortgage Insurance:

The number one question is who is the beneficiary? Shop, compare and save when purchasing your new home, take the time to shop around for life insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you’ll find a term life insurance policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy

Rule of thumb:

The price of a home should not exceed 15 times the annual rental income for this or a similar house. If you are paying more, there is a good chance you are overpaying.

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understand mortgage interest rates

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