Market Volatility

This is a great read for people wondering what's going on with the market these days. It is sent out to my clients in a monthly e-newsletter.

We are living through interesting times - economically speaking. The latest news surrounding the turmoil in the stock market and a potential "crash" has made some consumers a bit jittery. You may be wondering how what's happening in the stock markets the will impact your life. Here are a few thoughts. Let's put China in perspective. China is considered an emerging market. As such, investing in that country's growth by purchasing stocks when prices are low, may theoretically net a nice profit. But, like any other investment in the equities market, there is always a risk.  Over the past year, investors have poured more and more money into Chinese stocks.  A classic bubble developed. In June, the bubble popped and the Shanghai index lost about a third of its value before rebounding.

Then China moved aggressively to control the crisis. The government gave money to brokerages to buy stocks and ordered company executives not to sell their shares. The central bank cut interest rates to a record low,  which all led to "Black Monday" (August 24).

If you are a stock market investor, you likely have a portion of your portfolio in emerging markets and you may hold stock in some Chinese companies but foreign investors own only 1.5% of all its shares. Since Monday, stock markets everywhere have rebounded. 

Now let's put Canada in perspective. Our stock market has rebounded and it's back to business as usual, or as usual as it can be, given the times. If you're an equities investor, that adage "buy and hold" may still apply, but it's always a good idea to talk to a professional investment advisor.

Oil is still volatile but RBC Economics predicts that those provinces that have felt the slowdown will see increased market activity in 2016, which means a return of jobs and increased housing activity. Prices at the pump are down, which is good news for consumers.

The Canadian dollar is now above 75 cents - it dipped slightly below that with all the negative news.  

One of the key indicators to look at is job numbers. The latest from Statistics Canada show that employment in Canada is steady and hiring remains steady.

Despite the slowdown in the housing market, home values are holding up.  As for the high debt levels in Canada, people are generally managing it.  According to the 2015 WealthScapes analysis, which was just released, Canadians slowed their pace of borrowing and increased their savings in 2014. Household net worth last year increased 6.1 per cent over the previous year, despite a 2.9 per cent growth in debt, the report found.

As for the housing market, we have historically low interest rates, both variable and fixed.  The Bank of Canada rate is sitting at .50%.  People are still buying houses and getting mortgages. Some economists suggest we will be living in a low rate environment for a while as global economies continue to recover. It's like turning a big ship around - it takes time. 

This is all good news for Canadians. That's not to say that there aren't still challenges ahead, but it's clear that Canadians are resilient and are well prepared for whatever comes.

I remain at your service for any mortgage-related questions and enquiries.

Your road to mortgage freedom

I absolutely love these tips that were shared with my clients who are part of my monthly e-newsletter so I decided I should put them on the blog for everyone to benefit from!

Your road to mortgage freedom

Paying off your mortgage may be the best investment you can make. A survey conducted in 2013 by Canada Mortgage and Housing Corporation (CMHC) found that 68% of homeowners felt they could pay off their mortgage early. Last year a Scotiabank poll found that almost two-thirds of mortgage-holders agreed they could pay off their mortgage faster without impacting their lifestyle. Here are some ways to save some serious money and become mortgage-free faster. It only takes a few small steps and saves you thousands of dollars in the process. Accelerate your payment frequency This is popular. If you're making monthly payments on a $300,000 mortgage with a 3% interest rate, amortized over 25 years, it will cost you $125,920.44 in interest. By increasing your payment frequency to accelerated bi-weekly payments, you will shave nearly three years off of your amortization schedule, and save $16,058.57 in interest.

Round up your mortgage payment.

This is pretty painless. Every dollar counts when it comes to paying off your mortgage. If your accelerated bi-weekly mortgage payments are $543, consider rounding up to $600 instead. The extra $57 will save you thousands of dollars in interest over the term of your mortgage and you'll barely notice the difference in your monthly budget.

Refinance to a shorter-term amortization

You may be able to refinance into a mortgage with a lower amortization. Your payments will be higher on a 15-year loan, but perhaps not as high as you think, especially in the current low-interest environment.

Make lump sum payments

Adding just $1,000 extra to your mortgage per year will allow you to pay it off years sooner and, combined with accelerated bi-weekly payments, chip thousands of dollars off the interest you pay for your home. 

A lower interest rate

With mortgage rates at all-time lows it doesn't hurt to negotiate a better rate. The difference between a 2.59% rate and a 3.2% rate adds up to thousands of dollars in interest over the remaining term of the mortgage. 

Interestingly, the Scotiabank poll also showed that 21% of mortgage holders have not taken any steps to pay down their mortgage for the following reasons:

1. Don't have available funds
2. Have other payment priorities
3. Don't know what steps to take 

The freedom that being completely debt-free brings is a dream for many Canadians. If you're unsure of what your next step should be, call me. Together we can review your mortgage, look at your financial picture and devise a mortgage-reduction plan that works for you.

Visit my website at www.anewlovemortgage.com to start your road to financial freedom!

Things to consider before you renew your mortgage

Your mortgage term is coming to an end and it's time to renew your mortgage.  It's easy to simply sign the renewal statement that you receive in the mail but are you going to be receiving the best rates by doing that?  Many people don't realize that there are much better options out there.  In exploring the many different lenders that are out there you can end up saving thousands of dollars, and who doesn't want that?

Here are a few things you may want to consider before your mortgage renews:

Are you comfortable with your monthly payments? If you've been financially strapped each month, this could be the time to extend your amortization and reduce your mortgage payments.  On the other hand, if you've started earning more, you now have the option to increase your payments and pay that mortgage off faster.  Who doesn't want to be mortgage-free sooner?

Do you need cash flow for other things? Your priorities may have shifted since you bought your home and cash flow needs can shift too. You may be able to refinance your mortgage to lump other obligations into it such as lingering student or vehicle loans, or accumulated credit card balances and cut your monthly payments down significantly while paying the debts off faster.

Can you handle fluctuating rates? Some homeowners are nervous about any hikes in interest rates while others are comfortable to go with the flow. Rates are tough to predict but with them being so competitive lately it may be time to decide whether or not you're ready to consider the risk and save some money with a variable rate, or if you're more comfortable to lock in your term with the fixed rate.

Are you considering selling your home soon? If you are likely to put your home on the market soon, you'll want to consider a mortgage that has more flexible terms so you're not penalized if you sell your house before the mortgage comes due.  Sometimes lenders offering the lowest rates aren't always offering the best mortgage portability and you don't want to be stuck paying a huge penalty on possession day.  

Are you thinking about a major renovation? You know projects such as a new kitchen can make your home more valuable, but the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting a line of credit or keeping your monthly mortgage payments low so you have the money on hand to finance the renos.

Researching all of the different lenders can be tedious and time consuming.  Save yourself the hassle and let a knowledgeable mortgage professional do the work for you.  Your time is valuable so let someone else figure out your best options for your mortgage renewal.

For all of your mortgage needs check out www.anewlovemortgage.com.

If you like it then you shoulda put a ring on it

These days it seems like every idiot with a blog seems to have taken to the keyboard to write something they don't like about CrossFit.  Well guess what?  I have a blog toooooo!  Yep, I paid nothing for it and have no one censor it so I guess that makes me the Queen of Knowledge on everything there is to know.  Right about now you're thinking, hey, as lovely as Ashlyn is I don't think she knows everything about everything.  You're right!  I don't.  And I don't pretend to and I don't expect you to take my words as Gospel and spew them about on social media just to make a point about something you may not even have a clue about yourself.  I'm not here to defend CrossFit, frankly I don't give two shits if you don't like it at all.  I enjoy it but that's just my opinion (and as we read earlier, why does my opinion even matter?).

The point of this post is to try and understand why people put the time and effort to try and expose something they don't like or don't know anything about.  I tried Zumba once and my friends love it.  It wasn't for me but I fully support those girls with every shimmy and shake that keeps them healthy and happy.  I'm not going to write a blog to make some crazy false accusation that since the introduction of Zumba that ankle sprains have been on a serious incline.  A) As I said that would be false, B) I have too many other things to do then sit and write a whole article about it, C) I tried Zumba ONE time, what the hell do I know about it really?

That brings me to my next point.  I've tossed the football around in the park from time to time before but I've heard that football players get concussions all the time.  I guess I better lay off the pigskin from now on!  Yes, everyone gets injured doing anything physical.  Football players get concussions, runners damage their knees, gymnasts tear ligaments, dancers injure their backs, frisbee goers can break their ankles and even everyday gym-goers sprain, rip and smash up their bodies.  But they still keep coming back and there isn't a thousand different "know-it-alls" ripping it apart on Facebook.  Because really, whoooooo cares.  It's a by-product of the activity that they enjoy doing and it's not hurting you by not doing it so everyone should be happy, right?

I've seen people fall off the treadmill, get squished in the Smith machine and drop dumbbells on their feet.  I'm not going to rush to the interweb and spew about the safety of the masses.  It happens to the best of us.   Calves are the hardest place to gain mass as you may already know.  And how else are dudes going to get that very specific swell on before they hit the club on a Friday night?  You're doing what you do to feel your best and good for you and your dedication.

It really doesn't bother me if you love or hate this article, if you love or hate CrossFit or if you love or hate string bean casserole.  But for the love of God please love puppies!  Think of the puppies!!  Friends, Romans, countrymen, lend me your ears!  I'm Ashlyn, I enjoy CrossFit, dogs and being sarcastic... and I really don't care if you don't.

Is it worth it, let me work it

Body weight according to Wikipedia (obviously the most reliable source on the internet) is described as: "to refer to a person's mass or weight. Strictly speaking, the body weight is the weight of the person without any items on, but practically body weight is taken with clothes on but often without the shoes and heavy accessories like mobile phones and wallets. Body weight is one way of determining a person's health."

According to the Centers for Disease Control and Prevention I am on the verge of obesity based on my Body Mass Index ("a number calculated from a person's weight and height. BMI provides a reliable indicator of body fatness for most people and is used to screen for weight categories that may lead to health problems") for a female of my weight and height.  So basically I'm probably going to die.  I better say my farewells now friends!

This post is dedicated to people who worry too much about the scale.  Two days ago I PR'd my hang squat clean and last week I PR'd my 400m sprint.  I must be an anomaly of some sort because I weighed myself this morning and I'm the heaviest I've ever been in my whole life (note the sarcasm).  And yet I'm stronger, faster and have better endurance than ever before.  I'm healthier than ever and the waist in my pants is too big.  I'd say I'm doing ok.  

Below are two photos: the photo on the left is from three years ago at this time and the one on the right is one I snapped this morning.  I am 15 pounds heavier in the current photo on the right than I am in the picture from 3 years ago on the left.  Don't get wrapped up in the numbers on the scale too much, you've all heard that muscle weighs more than fat and quite frankly it looks better too.  You've also all heard the "Strong is the new Skinny" saying that has been going around.  This is true, I would rather be strong and look the way I do than weigh 20 pounds less and starving.  Do the work and the aesthetics will come.  Aspire to be fit, work hard at it and you will look it.  You won’t worry about the upcoming beach season if you have been staying healthy and fit all year round.

Heigh-ho, heigh-ho, it's off to work we go

My new, more attainable goal is to try and blog once a month.  Since it's March 31st I'm just barely making this one in time.  Nothing like leaving it until the last minute, Ash.  My January and February posts were all about creating my own destiny and the steps I was taking to make it happen.  After months of contemplating, planning, studying and making life changing decisions I can say I have finally, officially met my goal of starting my new career as a mortgage associate.

There was nothing more nerve wracking than quitting my job and throwing caution to the wind to take this step.  I spent the month of February extensively studying for my licensing exam and got my results back last week that I had passed and could apply for my license.  I spent some days in my new home base at The Mortgage Associates office last week meeting the crew and soaking up all the ins and outs of the business that my mentor, Steel, could start squishing into my brain.  That dude knows his shit.  Like way smarter than I ever thought some barbell slamming gym-junkie could be ;) (just kidding - but seriously the guy has already impressed me with his extensive knowledge on the subject).  That lucky dude gets to spend his days sitting across a desk from me partaking in all my daily antics.

I have already been fortunate enough to have people support my career choice and choose me as the mortgage professional that they want to use.  I'm super excited to help these people save some money and find them the best interest rates and mortgage products to meet their needs.  I'm really grateful to be given the opportunity to show them my dedication, reliability and genuine care that I have to offer them.  I love that previous industries that I have worked in really compliment this new career and I'm able to connect with all of the awesome people that I know.

I hope you are just as happy with your career choice as I am, and if not I hope you find the courage that it took me to make a change that does.

Baby we livin' in the moment

I can honestly say that I've started taking control of my own bus so far in 2014, first with quitting my job. I absolutely hate quitting things. It's the worst feeling to think you're letting someone down. Leaving a job you've been at for a while is even worse when you enjoyed it there. So why leave my job if I liked it there? The work itself was slowly killing my soul, my co-workers were what made coming into the office not complete hell. And who just wants a job? I want a career! I have so much more potential then I was ever going to use in a life time in that position. I appreciate every opportunity management gave me and all of the ways they had adapted the position in an attempt to satisfy my need for more but I was still missing something. I have met so many great people over the last few years and would never have had that without my experience there.

It is time to start my own journey and write the next chapter in my book. I'm looking forward to being 100% accountable for my own income, hours and discipline. That entrepreneurial thirst was passed down to me from my dad and we both enjoy the fact that we can either be proud of our own success or look to see where we have room for improvement.

I would never have entertained the idea of this next career choice without having some really great people in my life. I totally believe that it's not only what you know, it's who you know. Thankfully I know a lot of good people! I'll be spending these next few weeks studying to write my exam for my mortgage brokers license. I have a mortgage rockstar taking me under his wing to show me all the ins and outs of this business he's so passionate about. I'm excited to start this next part of my life and see how far I can take myself and what my limitations are. You're only as good as you let yourself be and I want to leave it all on the table here. Whether you think you can or you can't, you're right. Wish me luck... Or better yet give me a call the next time you (or someone you know) has some mortgage related business they need taken care of (insert shameless plug here).