They say the more you earn the more you spend.  And lately we have had clients with big paycheques but with big headaches over debt.

The Big Banks love BIG INCOMES.  If you are making six figures or more, you are a target for your bank.  Let’s face it, they have more money they can grab off your paycheque.  Your bank has products they love to sell, mortgages, line of credit, visa and car loans.  And you will pay as much as the bank feels you will tolerate.  When all is said and done, you find that every cent you earn is going to make payments and it gets more difficult as the compounding interest escalates.

So goes the story for Tarah and Del from Guelph.  They earn 150K per year but were finding their monthly obligations crippling.  Last year, they tried to sell their home but the only offer they got would only pay off their 300K mortgage.  So they struggled through another year with the debt continuing to mount.

The couple were paying  $2,000 per month for a mortgage of 300K at 5.5% and other $1,500 per month in debt payments including their 50K line of credit which was maxed.  Tarah was juggling the credit cards to keep afloat and when she called she was at her wits end.  “I don’t think you can do anything, but I am really afraid we are going to lose our house if we don’t  do something now.  Tarah was embarrassed about her financial situation and she blamed herself for her family’s financial mess.  We assured her that it wasn’t mismanagement of her affairs but more a case of no one looking after her family’s  best interest.  That’s where we come in.

We were able to refinance the Guelph couple’s home and pay off their 80K debt.  Their payments are a comfortable $1,500 per month and with the 20% pre payment options they can use some of their monthly savings and pay their mortgage down.  Tarah couldn’t be happier.  “For once I feel we can finally get ahead,” she added.

DON CHERRY UPDATE:  Don was spotted last week at The Goofie Newfie by David Meyer amongst others, who won a dinner for two and eligibility to win our Grand Prize, a one week summer vacation in Port Elgin to be drawn on Canada Day. Doug Kenny was the winner of Stone Creek’s dinner for two prize. Congrats to both.  By the way, WE FOUND OUT WHO STOLE DON CHERRY and will let him know that it will be in his best interest to bring Don back by Friday, voluntarily.

Attention small business owners. Need working capital? We now offer Merchant Cash Advances from Dominion Lending Centres Leasing.

It’S FLEXIBLE: There are no fixed payments

IT’S FAST: Funds for your business in ten days

NO COLLATERAL: Your Sales Are Your Security.

There are no limigtations on how you spend the money. Purchase inventory, Renovations, Advertising & Marketing, Acquisitions, Debt Management, Emergency Cash Flow.

Don Cherry Update: Don was spotted at Stone Creek Tap & Grill and the Goofie Newfie last week. Obviously he is having a great time this sumer in fergus. Get your ballot in to win our grand prize, a one week summer vacation at a beautiful log home/cottage, Lantern Lane in Port Elgin

As mortgage professionals with 25 years experience, we see it all. In the present economy we are seeing more and more people selling their homes, not because they want to, but because they ‘believe’ they have to. If you have approached your bank and have been turned down and put your home on the market, you still have several other options to consider before giving up the house you love.

The Bank is ‘Not your friend, especially when you have any ‘issues’ such as job loss, job injury, prolonged illness, separation/divorce, even death of a spouse who was the main bread winner. The banks think and operate ‘inside the box’ whereas we do so ‘outside’ the box. The banks will only tell you that ‘your credit is not satisfactory’ or ‘sorry we cannot help you’ without going into any detail with you, leaving you in the dark, confused and stressed. Most of all, you must understand that all the banks are out ‘for themselves’ first, foremost, and always.

We on the other hand, have your best interests in mind, and we use our experience and ingenuity to structure deals that we can get approved though more ‘common sense’ lenders when you have issues. Even if you are in a consumer proposal, bankruptcy, or prepower of sale circumstance, we can still help you keep your home. We have over 40 institutional lenders(and private lenders) and products that meet a multitude of circumstances.

Call ‘The Price Team’ today, consistent Award Winners with Dominion Lending Centres, Canada’s largest and most respected mortgage brokerage company. Look for our Don Cherry Ads on hockey night in Canada and our weekly column in the Wellington Advertiser, and Guelph Mercury. Hear us on Magic 106.1 FM. Visit our website:www.ronandtracy.ca. Better yet, you can call us at 519-843-5854 or Toll Free 1-866-244-3289 we will be delighted to hear from you.         

Buying a place for your children is a good alternative to paing thousands of dollars towards residence fees or rent. Here’s the math. Rent $500/month=$6,000 a year=$24,000 over 4 years of school. This money could go towards a mortgage instead as an investment for you, as opposed to paying the landlord’s mortgage.

We have owned a 3 bedroom townhouse condo in London for the last 6 years, first housing our daughter and later our son who is graduating later this year. By renting out 3 bedrooms to other students with 1 extra bedroom in the basement, our kids actually lived rent free. With summer jobs they were also able to avoid any student loans and avoid debt repayment.

It has been a great investment for us. Every year, even with improvements, all our costs were covered while the property has appreciated and the mortgage is now less than half the original amount. Our equity is quite substantial. Even with a capital gains tax we will make a nice profit in addition to not having to move(with your help)every summer either.

Over the years we have arranged many mortgages like this. Some are parents and some are professional investors who buy properties suitable for student rentals. Did you know that all student rents are guaranteed by the parents and cover the full year not just the school year?

For the inside track on buying and financing an investment property for your child’s post secondary education, please call us.

Don Cherry is on the move in Fergus. Spot him and fill out a ballot to win one of many prizes from local businesses and grand prize, a one week summer vacation at beautiful ‘Lighthouse Lane’ log cottage in Port Elgin.

Last weekend Don Cherry, our celebrity spokesperson, was stolen from our front door on Tower street. Thieves actually cut the wires that held the life size poster of Don. People have called to ask where this most recognizable celebrity has gone.

Who could do this dastardly deed?

Kids are crying, Women are wondering and men are hopping mad that Don has been kidnapped, especially with the playoffs on. We want our Don Cherry back. The latest scuttlebutt is that he is moving around Fergus, frequenting various local businesses. Please help us find him. If you spot Don please fill out a ballot to win one of many local(rewards) prizes and become eligible for the grand prize, one week summer vacation at Lighthouse Lane, a beautiful log home/cottage in Port Elgin on Lake Huron. Certain conditions apply. Listen daily for the latest sighting of Don Cherry on Magic 106.1 FM or check out his whereabouts in both the wellington advertiser and the Guelph Mercury. Prize winners will be announced weekly. The contest will run until Friday July 1st, Canada Day.                                                                                                                                  

                                            WHO STOLE DON CHERRY-CONTEST

We had a life size cut out of Don in our front door window on Tower Stret that was stolen on the May 24 weekend. We have decided to turn that ‘lemon’ into ‘lemonade’ with contest/promotion, and have fun with it.

When:June 3rd to July 1st Canada Day

Where:Local Fergus businesses;Bredalbain Inn, Tandori Grill, Stone Creek, Brew House, O’Briens, Goofie Newfie, DJ’s Pub, Remax, Freshco, Home Buildng Centre, Zehrs, Van Gali’s; locations subject to change.

What:A new life size cut out of Don will be left at the above locations for one to two days each this month. Final schedule to be determined. Each sponsor will post a ‘WHO STOLE DON CHERRY’ sticker in a prominent place (ideally front window)when Don is there. Patrons will submit ballots to win one prize from each establishment and be eligible for a Grand Prize on Canada Day, a one week summer vacation at Lighthouse Lane, a beautiful log home/cottage in Port Elgin on lake Huron.

How:Staff should be apprised of the contest and can give a ballot to every patron who asks about Don being there. Each sponsor will draw the winner of their prize when we arrive to move Don to another location. Since the real Don likes to have ‘a few pops’ now and then, we have placed emphasize on local pubs and restaurants for fun. Staff are not eligible. Balloters must be at least 21 years of age or more.

Promotion:The contest will be promoted daily on Magic 106.1 FM and carried weekly in the Welly and Guelph Mercury starting Thursday June 2nd. Locations will be revealed, with humour, and the prize winners will be announced. Four vehicles will also carry ‘WHO STOLE DON CHERRY’ decals around town throughout the contest. The contest will also be promoted on ‘ronandtracy.ca’ and Magic 106.1 FM websites.

Thank you to all participating sponsors.

Warmest wishes,

Ron & Tracy Price

The Price Team

The cornerstone of all relationships is truthful communication, especially when it comes to finances. Despite the fact that an overwhelming majority of Canadiands agree that a couple getting married needs to share financial information and goals, a surprising number of newlyweds do so. Less than half have discussed key financial matters prior to marriage, including debt, savings goals and establishing a financial budget/plan and 57% of newly married or engaged coiples have or are planning to purchase a home in the next two years.

Because there is no formal education in the school system teaching young people about credit and finances, the above statistics are not surprising. However, knowing that financial stress is a major cause of marital problems and can ultimately lead to divorce, makes the stats scary indeed. The biggest reason for mortgage default and bankruptcy is financial problems.

‘Managing credit is also very important. Knowing not to let balances exceed half the limits, not to seek new credit on a regular basis, understanding that is important not to apply for all credit jointly, and having one’s credit remain separate are basic tenets of maintaining a good credit rating.

With new home buyers, Tracy and I emphasize how important it is for both spouses/partners to plan and manage their finances together. It is a mistake to allow one spouse to be responsible for paying the bills, leaving the other in the dark. Ideally, everyone should allocate part of each paycheque towards savings. Five to ten per cent is common. This important discipline lays a foundation for responsible ‘spending’ which we see as the biggest cause of financial problems due to the availability of easy credit.

Buying a house changes everything. Finances become so much more complicated than before. So many new things are needed. So many new and unplanned expenses just ‘happen’. Buying a new car, furniture and appliances are the three most common purchases that put heavy pressure on one’s budget. Before you know it you are over your head. The wife gets pregnant, her income drops adding more pressure.

Call us today to help you plan your home purchase. We will help you get a solid understanding of your credit position,(the banks won’t do this for you)your finances and your ‘affordability quotient’. We will also help you cooridinate your home buying team of professional service providers saving you time and money.