Averbach Mortgages Blog

Budgeting Can Actually Be Fun!

August 21st, 2010

I know a few people who always have their finances under control. They know where they have spent their money, they don’t get surprised by their yearly car insurance payment, and they are able to actually pay cash for their next car!

I know even more people who experience the exact opposite. They can’t figure out where the $100 in their wallet disappeared to, they are always surprised by their yearly insurance bills, they can hardly make the car payment let alone even dream of paying for a car outright!

The difference is in the way people think, feel and deal with their money. I know of several people who keep cash in a pile of envelopes. When their “entertainment” envelope runs out of money, that means dining in and TV for the rest of the month. When the “clothing” envelope is depleted that means no more socks, no matter how many holes are in the old ones.
The envelope system has worked for thousands of people for hundreds of years … but in this world of electronic payments, credit and debit cards, it gets a bit challenging keeping track.

So … in marches Mvelopes, which is the electronic, online equivalent of the envelope system.

There are raving fans, some of whom have managed to pay off debt loads of over $30K in a year. And those that are able to pay cash for their new cars. And of course, there are loads of fans who have managed to save up for substantial down payments on a new house, or pay off their mortgages is record time!

Mvelopes.com was named one of “The 100 Best Products of the Year” by PC World and one of “The 4 Best Money Managers” by Success Magazine.

If you want control over your finances, be sure to check them out. Though they are US based, they do support a few Canadian banks. But even if you cannot use all of the “bells and whistles” you will definitely see a difference in how you handle your finances.

Here is a free book telling how it works.

Click here to get a free trial and see if mvelopes works for you.

And be sure to read all the inspiring testimonials. It is amazing what people can pull off when they are inspired and have a system!

Posted in General Info, Save Your Money | No Comments »

Banks Reduce Mortgage Rates

August 17th, 2010

According to the Canadian Mortgage Broker News . . .

Five of Canada’s major banks reduced many of their posted mortgage rates by one-tenth of a percentage point, effective today.

The posted five-year closed mortgage rate is now 5.49 per cent annually for the Royal Bank of Canada, Bank of Montreal, scotiabank, CIBC and Laurentian Bank.

RBC was the first to announce the rate cuts on Monday. It is the second time major banks have trimmed their rates this month, and follows the report from the Canadian Real Estate Association that home sales were down 6.8 per cent in July from the previous month.

Posted in Mortgage News | No Comments »

Babies Are Expensive!

August 14th, 2010

Since we have recently added a new baby Averbach to our family, babies are on my mind!

Yesterday, I read an article from the Globe and Mail, Getting financially prepared for a maternity leave, which focused on how important it is to plan ahead.

The gist of the article is that even if you are eligible for maternity leave benefits your finances will take a hit. Are you planning for that hit?

One of the women interviewed said,

It will probably take two years to get back to our previous levels of savings,” she says. “I don’t stress about it much because overall our finances are okay and this is just something short term. I loved having the time to spend with my babies when they are little and I’m okay with the financial sacrifice.

Babies are expensive … Are you going to be able to make your mortgage payments, without over stressing your budget? Should you refinance? Are you planning on buying a new home or on renewing? How will being on maternity leave affect getting new mortgage financing?

The sooner you plan for the new addition to your family the better! Give us a call if you have any questions about how being on maternity leave may affect your mortgage financing.

Posted in Buying a Home, Mortgage Advice | No Comments »

Home Buyers in the Driver’s Seat

August 12th, 2010

According to the British Columbia Real Estate Association housing sales have declined, and there is a large inventory of available listings.

This means that home buyers are in the driver’s seat. This would be a good time to consider purchasing your first home, or a vacation property. You’ll have time to look around and likely won’t get involved in any bidding wars.

Give us a call and we’ll make sure you are pre-approved for a mortgage so that you’ll know exactly what price range you can purchase within. Pre-approval has the added advantage of letting sellers know you are a serious shopper!

Click here for BCREA’s Full Report (PDF will launch in new window).

Posted in Buying a Home, Real Estate in Vancouver | No Comments »

Vancouver Real Estate Market Update – August 2010

August 2nd, 2010

Here’s a market update from our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason Low, Sandra Ens, and Jenny Stephanson.

August 2010 Market Update

For those of you thinking about selling, it is important to realize how vital the Art of Pricing is to the sale of your home.

All sellers want the highest price possible for their homes, but the strategies to get there are not always intuitive. In certain circumstances, pricing low can be more effective than pricing high, while in others, pricing above market value can be a winning strategy. In most cases, however, the optimum pricing strategy is to price within 10% of market value and let the market decide. After all, the ‘list price’ comes with a caveat: Or Best Offer.

Top Reasons for NOT Pricing High:

You lose out on potential buyers who put a price cap on their property searches
Serious buyers question the motivation of a seller with an overpriced listing.
You provide a strong comparable for your neighbours who are properly priced- You are effectively selling other people’s well-priced homes.
Buyers assume that properties which remain on the market for long periods of time have something inherently wrong with them.
Other agents will be more hesitant to show your home.
In a quickly rising market, pricing strategies tend to matter less, as underpriced listings are bid up to market value and overpriced listings simply wait until the market catches up to them. However, in flat or falling markets, pricing plays a pivotal role in how much you may ultimately sell your house for.

In a flat market, buyers have more time to analyze the market and therefore become more educated about value. Houses that are overpriced will simply sit on the market, as well-priced new listings come on to replace well-priced recently sold listings.

In a falling market, the optimal pricing strategy is actually to price slightly BELOW market value. A simple exercise that pricing experts like to use in this situation is to visualize catching a fly ball. The ball represents the market and your glove represents your pricing strategy. If you price too high, the glove will simply swing across where the ball was. If you price at market, there’s a good chance you will miss it. But if you price just below market value, there’s a greater likelihood of catching the ball. After all, it’s better to take a little bit less than to risk having the ball drop in for a double.