Katrina Bernardino
532 Campbell Street R3N 1C1

When you’re looking over and adding any medical expenses to your tax claim, make sure to only claim the part of the expense that you or someone else have no been and will not be reimbursed for. Generally, you can claim all amounts paid in the last 12 month period ending in 2020, even if they were not paid in Canada .

When it comes to taxes it’s important to understand how everything works, like the principal residence exemption. If a property qualifies as a taxpayer’s principal residence, he or she can use the principal residence exemption to reduce or eliminate any capital gain for income tax purposes,on the disposition of the property.

Another big place for savings is in the grocery isle. Just switching to buy the store brand or no name brand can save you 25% on your grocery bill which can really add up over time.

Often referred to as pay yourself first method, set up an auto withdrawal so that when ever you get a paycheck you have some of that money go directly into another savings account.

Along with a proper budgeting and savings plan, having an emergency fund is a must. The amount this fund should be will depend on family to family but in most cases it’s good to have enough in the fund to allow you to survive for a few months minimum without any new money coming in.

Ok who’s been paying attention ?! On Friday I talked about one of the key benefits of having a mortgage broker negotiate your renewal for you. Remember I work for you, not the banks ! Go two posts back to read more about the buying power of banks and why it’s important to work with a qualified mortgage broker on your renewal!

Here is some of the documents required for a mortgage approval !

Ok I know it’s Sunday which is a rest day but this is really important and I wanted to share ! If you are getting a lower rate at renewal, keep your mortgage payments the same !!! You’re probably thinking WHY go to all the trouble of negotiating a lower rate , only to make the same monthly payment ? But we have a good reason for that ! While lower monthly payments could increase your cash flow , it most likely wouldn’t be my much . However, keeping the same monthly payments at your renewed lower interest rate means reducing the overall amortization and paying your mortgage off sooner- giving you maximum bang for your money . For added acceleration, make sure you are paying accelerated bi-weekly payments to shave a few years off the repayment of your mortgage !

A bank is just like any business-they are in business to make money and the Canadian big five banks make billions of it ! Think of the banks posted rate as the number the banks want to sell you on in order to make the greatest amount of profit on the interest you pay. This number has significant room to negotiate down from so don’t be afraid to negotiate . Working with a mortgage professional gives you buying power when negotiating that very well secure better rates on your behalf!

Did you know that at the time of renewal your mortgage has an open option that can allow you to make a lump sum payment on your mortgage without penalty ? This is your opportunity to make a serious dent in your amortization and save in total interest costs because every dollar goes to paying down the principal and there is no pre-payment limits . Regardless of the amount of the lump sum payment , the principal reduction has a a benefit to you and reduces the interest cost you pay over the life of the mortgage.