pololoans Inc.

02/09/2021

ARE YOU READY TO BUY YOUR FIRST HOME?

If you intend to buy your first home this year, you will need to plan for the purchase. As a first-time homebuyer, there are several government programs that can help you achieve home ownership. Here are a few programs that may be available to you:

FTHB Incentive Program:

A First-Time Homebuyer with household income of $120,000 or less can qualify for a government loan of 5% for an existing home or 10% for new homes. The loan is added to your down payment. In return for the 5% or 10% loan, the government will own a proportionate share in the equity of your home.
• Down payment must be less than 15%
• Insured mortgage amount cannot be greater than four times the household income
• Repayment after 25 years or when the house is sold
• The repayment amount is based on the percentage of equity. For example, if you sell your house for 800,000 and the initial loan was 5%. You will need to repay $40,000 (800,000 x 5%)
This addition to your down payment that you qualify will lower your monthly mortgage payments, making home ownership more affordable.
If you are planning on buying a home in Toronto, beginning spring 2021, the Canadian government will broaden the criteria to support homes in this market.
NEW for the First-time Homebuyer in Toronto, Victoria, and Vancouver.
Starting spring 2021, the Government of Canada will make the following changes for homebuyers in Toronto, Victoria, and Vancouver market:
• First-time homebuyers will now be able to purchase a home up to 4.5 times their household income versus 4 times their income
• Household income has increased from $120,000 to $150,000 or less.
As a comparative, household income of 120,000 can qualify for a mortgage of $540,000 ($120,000 x 4.5) versus previously $480,000

Increase your RRSP Contribution to $35,000:

Registered Retired Savings Plan (RRSP) is a special account for Canadians to save towards retirement. There are several benefits to buying RRSP:
1. Contributions are tax deductible: An RRSP contribution is a deduction on your tax return. For example, if you make $78,000 a year, and you contribute $10,000 to your RRSP, your income tax rate will now be based on $68,000.
2. RRSP was designed to help you save money today to fund your retirement. It assumes that when you retire, your income will be lower, and any withdrawal will be at a lower tax bracket.
3. The best reason for First-Time Homebuyers to contribute to an RRSP is to take advantage of the HBP (Home Buyers’ Plan). With the HBP, you can withdraw up to $35,000 tax free that can be added to your down payment. The withdrawal amount must be in your account for at least 90-days.
As part of the HBP, you will need to make annual re-payments back into your RRSP. Your repayment are equal payments for 15 years. For example, if you withdrew 15,000, your repayment schedule will be $1,000 a year.
Reminder: There is an annual deadline to contribute to your RRSP is March 1, 2021. Make sure to contribute before then!
Land Transfer Tax Exemption:
You may qualify for a land transfer tax rebate under the following criteria:
• Canadian citizen or PR of Canada
• You must be at least 18 years old
• You must occupy the home as your primary place of purchase within 9 months of purchase.
• You cannot have owned an eligible home, or have an interest in an eligible home, anywhere in the world at any time. The same goes for your spouse.

More Tips:

Maximize the amount of your mortgage approval by simply doing the following:
1. Save as Much as Possible:
It is crucial that you save as much as possible, to give you the best plan of being able to afford a good part of your down payment.
2. Increase your Credit Score:
Your credit score will be one of the determining factors for your mortgage approval. Ensure you pay your bills on time and ensure that your usage is no more than 50% of the authorized limit.
3. Limit Debt:
It is especially important that you also limit the amount of debt you accumulate. Apart from even reducing your debt level to help boost your credit score, more debt would only mean more monthly payments. You should avoid borrowing for large ticket items such as, a loan or lease for a car. The debt on the or a loan lease payment makes reduces the purchasing capacity.

Stay Safe

01/14/2021

Enough said!

12/30/2020

Homeowners, Financial Resolution for the New Year

The realization that this year is coming to an end soon is one of relief and hope for many. Relief, because we can finally start putting the year behind us and hope for the new year ahead.

The COVID-19 pandemic has affected a lot of things, not least the housing market. As a result, you may not have met your financial goals. As we approach the new year, prepare your new year’s resolution with a solid financial plan.

Whether you are a new homeowner or an existing one, you can look forward to making more strides financially in 2021.

Resolutions for Homeowners

Here are some ideas for you to make your finances work for you in the coming year.

1. Take Advantage of Your Lump Sum Prepayment Privileges

Apply any windfall to your mortgage by taking advantage of the annual lump sum prepayment option may be a feature of your mortgage. These windfalls may be your bonus, an inheritance, a gift from a family member, or a tax refund from Revenue Canada.

You likely will not miss this money because your lifestyle has already adjusted to your current income. “The amount you apply goes directly to the principal," states Ming Wong, COO pololoans. "This will reduce your total interest payment and allow you to pay off your mortgage faster."

2. Prepare for Emergencies

Teachers of personal finance always emphasizes the importance of emergency funds.

Your emergency savings account should be a separate from your retirement account and other saving goals. You will contribute to this account regularly, and while accessible, is not touched for anything except emergencies.

As a rule of thumb, you should put away at least three to six months’ worth of expenses. This amount can seem daunting at first, but the idea is to put a small amount away after each pay cheque to build up to that goal.

3. Paying Off Existing Debt

Financially, these times are quite unprecedented, and debt accumulation is the last thing you want to do going into the new year and beyond. Here are some tips:
• Pay off the most expensive debt first
• Pay more than the minimum balance
• Halt your credit card spending.
“With today’s low interest rates, we can help consolidate your debt into a single low mortgage payment and improve your cash flow,” said Joe Digiambattista, EVP of pololoans.

4. Develop a Budget and Review it Regularly

A budget will allow you to determine in advance whether you have enough funds to do the things you want to do. Once the plan is complete, you would compare with how much you actually spend. Therefore, it is important for you to schedule a monthly review of your budget.

The quality of your financial budgeting going into the new year will determine if you'll meet your financial goals. Setting goals is a great way to ensure your finances are on the up. You'd be able to constantly evaluate if you're meeting them or not, and if you aren't, you'd be able to know what to do.

5. Or…, create a Spending Plan

For some people, the idea of a budget is too restrictive. The don’ts of a budget in your mind can be stifling, and not to mention the fact that a budget review can be time-consuming and cumbersome.
With a spending plan, you can decide how much you can spend on necessities and other needs each month. Everyone likes the idea of spending money, so if you’re uncomfortable with the strictness of a budget, go for a spending plan. You should remember to set aside enough money to cover at least three months’ worth of your expenses in case of an emergency.
In any case, the result is the same, but the journeys are different.

Happy New Year! Stay Safe and Healthy.

12/28/2020

A beautiful tribute to all of our Healthcare Workers. Thank you for creating this lovely homage W***y Valente. 🤗

It's Going to be All Right.There is sadness, but their is faith and there is hope.Rejoice and reunite.

12/21/2020

Wishing you all a wonderful Holiday Season!

12/01/2020

Is it too early to look for a Vacation Homes now?

The housing market in spring 2020 was negatively impacted with the COVID-19 lockdown. Since August, some of the restriction has loosening and we saw a bounced back to a spring like housing market.

During the pandemic, travel has been limited, and people have been forced to cancel their vacation. As the cities started to loosen up, there has been upsurge in interest for vacation home properties. Home buyers were searching for a domestic escape. In addition, the work style has also been changing. A portion of the work force were forced to work from home. Many employers are now giving their employees the option to work from home permanently that has prompted home buyers to reassess their living conditions. The idea of having a home as a place to work and relax has become more appealing.

While the idea of owing a vacation home is appealing, it will take a greater amount of time and planning. If you start now, you could be taking advantage of the summer weather in your vacation home. Here are some factors to consider when you are looking at financing a vacation home:

1. Is it a second home, rental, and primary residence? Your down payment will be different depending on the usage of the property. For example, if the property is used as primary residence, the down payment can be as low as 5% as long as the property value does not exceed $1M.For rental properties down payment can be anywhere between 20-35%.

2. If the property is in a remote area, you may be required to have either higher down payment and/or higher rates. Some lenders will only lend up a capped amount (i.e. $600,000), independent of location of the vacation home.

3. Year-round access, also known as 4-season property, on public road is required.

4. The zoning of the property must be residential. It is important that you confirm the zoning because agricultural properties require a different set of approval guidelines and lenders.

5. If the property has well and septic, you should make sure that the seller provides you with the well and septic certification. Properties with well and septic tanks may require a higher down payment.

“For those that currently have a property, you also have the opportunity to leverage your current home to either make up any shortfall or finance it completely”, states Joe Digiambattista, EVP pololoans.

It is difficult to get mortgage on the following type of properties
• Homes on privately leased land
• Native land
• Time shares, fractional interests, and life leases
• Rental pools, hotel-condos, Airbnb-style and rooming houses
• Heritage homes.

“Looking for a vacation home can be very exciting”, say Ming Wong of pololoans. “However, you should speak to a mortgage specialist before to ensure that you can get the financing that you need”.

Stay safe!

Ming Wong
Mortgage Broker
License #: M11000309
C: 647.229.8990
E: [email protected]

Joe Digiambattista
Principal Broker
License #: M08001230
C: 416.624.3643
E: [email protected]

09/23/2020

We are looking for motivated Mortgage Agents and Mortgage Brokers to join our ever-growing Mortgage Family across Canada.

WHO YOU ARE:
A mortgage professional who thrives in an entrepreneurial setting. Self-motivation is second nature to you, in not only accomplishing but exceeding your goals. You put your Clients first, always going above and beyond, enabling them to secure their homes and their futures. You take pride in leveraging, developing and nurturing relationships with your Clients, colleagues, and communities. Trust, integrity, and accountability are key pillars to your success and are highly valued by you.

WHO WE ARE:
Pololoans Financial, is currently among the fastest growing mortgage brokerages in the Ontario. We are currently looking to expand our team. Our management/ownership team have decades of experience working at senior levels of the banking industry in Canada and are some of the most recognized in the business.
Our industry leading systems, tools and processes allow new and seasoned agents and brokers an opportunity to focus on the growth of their business and revenue while putting the power back in the agent hands.
Our on-boarding process and support will provide help for you to familiarize yourself with our company processes and business practices that are required to be successful in this role.
Becoming a mortgage agent with us with is like becoming family with us. From day one we are here to ensure your success; for we are 100% invested in you as your success and our success is tied together.
At pololoans Financial, we’re dedicated to creating a positive environment where our team and family have growth and development opportunities, a healthy work/life balance, opportunities to give back to the community, and a focus on doing what is right for our clients. pololoans Financial offers a competitive total compensation package including a 100% commission structure.

WHAT WE OFFER OUR MORTGAGE AGENTS AND MORTGAGE BROKERS:
• Mentor Training Hands On
• 5 Day in House Training Program on all elements (Business, Marketing, Branding, Networking, Business Set Up)
• Leading Edge Tools (CRM, Email Campaigns, Client Loyalty Program, Marketing Tools, Social Media Program)
• Best in Class Commission & Bonus Programs
• Leads! YES LEADS! We Give Our Agents Leads (Very Few Brokerages Offer Leads)
• In House Insurance & Investment Lending Division
• In House Mortgage Investment Division
• Training, Guidance, and Direction from successful Brokers and Agents!
• Access to dozens of funding sources: Banks, Monolines, Co-Branded Products, Trailer Fee Options, Trust Companies, Credit Unions, MICs, Private Lenders, you name it we have got it!
• Direct Access to Dedicated Underwriters to Get Your Deals Done!
• Regular Updates on Current Rates, Policies and New changes
• Access to Multiple Offices
• Senior Brokers --- Take Advantage of Our Strength to Grow Your Own Team!
• Independents --- Stop Carrying Your Own Licensing & Cut Your Overhead!
• Weekly Ongoing Training Seminars
• Access to Private Lenders - We get more deals done!
If you are joining the industry from a banking or mobile/agent background, don’t hesitate to reach out to us as well!
• Flexible Hours, Work from Home or Your Own Satellite Office.
The important stuff:
• Building long-lasting relationships with clients and lenders.
• We do what is right for the client, not only because it's the right thing to do but it's the best thing to do for the long-term success of everyone involved.
• Being a self-managed, goal-oriented mortgage sales professional interested in the unlimited earning potential of commission sales.
• An entrepreneurial spirit and being up to the challenge of delivering incredible results.
• Contagious enthusiasm and ambition to succeed despite obstacles.
• We want our agents to build their own brand and book of business, we are invested in your success.

Most of our top mortgage agents have joined our organization from totally different career backgrounds and they have taken our training, tools and support and applied it to their own career goals, to give them a satisfying and rewarding career.

ARE YOU OPEN TO OPPORTUNITY?
Join our team of respected mortgage agents and enjoy the feeling that comes with helping Canadians realize their financial goals and dreams.
Your work will be recognized and rewarded with industry leading competitive compensation, comprehensive training and countless opportunities for professional growth and advancement.
Are you ready to discover what we have to offer?
We are all about you and your success we invest in you as much as you invest in us! Join our team today!

09/23/2020

Credit Score: What You Need to Know:

Your next big goal is to get a house, and you are planning to use credit for your purchase. Getting the amount of money required from financial institutions is mainly based upon your credit score.
If your credit score is high enough, it is one of the key parameter lenders will use to make a decision on whether or not you qualify for credit and the interest rate that for the finance. Because of this, it is important that you take your credit scores very seriously.
An important step in taking your credit score seriously is knowing as much as you need to know about it. In this article, we have explained what you need to know about credit scores.
Ready? Let’s go.

How Do Credit Scores Work?
Credit scores are basically numbers that tell lenders how creditworthy you are, and what chances they have that you will repay the credit you get from them. The system of using credit scores was invented by the Fair Isaacs Cooperation, and as a result, their FICO model of credit scoring remains the most widely used by lenders. There are others, such as VantageScore, TransRisk, etc, but this article will be focusing on the FICO model.
The FICO model of credit scores ranks creditworthiness in a range of 300 to 850. The following table shows the different breakdowns within the range.

Credit Score Rating
300-579 Very Poor
580-669 Fair
670-739 Good
740-799 Very Good
800-850 Excellent

If your credit scores are below 650, your options of lenders will be more limited. This is because the lenders view anyone with a credit rating of 650 or lower as a high risk client, and as such, they will be subject to higher interest rates along with a lender fee..
The FICO scores used are calculated by a weighting system. This weighting system has five main factors, and they all have different impacts on your score.
They are listed below;
• Payment history
• Amounts owed
• Length of credit history
• The types of credit in use
• New credit in use

1. Payment history
This accounts for the largest percentage in the weighting system of FICO. 35% of your score is based on how well you’ve been able to pay up your debts, and if you paid up the right amount or not. Paying up a smaller amount than you owe will see your FICO credit scores dropped.

2. Amounts owed
This is the weighting factor with the second largest percentage, going in at 30%. Also called credit utilization, it is a way to gauge how much of your credit you utilize.
It can be calculated by dividing your credit balance by your credit limit and multiplying the totals by 100.
For example, if you have a credit balance of $400, and your credit limit is $2000, then you have a credit utilization rate of 20%. The higher your utilization rate, the lesser your chances of having a high credit score.

3. Length of credit history
How long you have credit can also work to your favor in the calculation of your credit score, but this only works if you pay up promptly. This is factored in at 15% on the FICO scoring scale.

4. The Types of Credit in Use
This is worth 10% as far as the FICO scoring model is concerned. It’s basically how many forms of credit you use and how creditworthy you are with them.
Having a variety of credit cards and loans on your credit report is always a good idea. Don’t apply for many credits within a short period of time. .

5. New Credit in Use
This is the last factor in the calculation of your FICO credit scores, and it comes in at 10%. FICO is interested in knowing how much new credit you have and how you’re using it.
Again, it is therefore not a very smart thing to do if you apply for a lot of credit within a short period of time, as the credit bureaus will take that to mean you’re desperate for credit.

Importance of Your Credit Score
Financial institutions will rely on your credit score when making a decision on whether or not they will offer you credit, and at what rates. If you have good credit scores, the chances that people and businesses will do business with you are quite high.
The following are a few advantages of having a good credit score;

1. Credit cards
Getting a credit card isn't a complicated process, even if your credit history isn't good enough. The only caveat to that would be that you would likely have very limited options.
On the other hand, having a high credit score will make it easier to obtain a credit card that provides you with perks that suits your lifestyle.

2. Car Financing
Getting a car is a large purchase, and having a good credit score will help with this purchase.
Having a good credit score will help you at the car dealership and will get you a very good rate on your car loan, saving you a lot of money in interest.

3. Loans from Traditional Financial Institutions
Large loans such as a business loan or mortgage are usually gotten at a bank, and a key part of your application is how high your credit score is.
How high your credit score is will determine if you'll get your application approved, and at rates you'll be offered.

4. Insurance
Having a high credit score will help you get a better and more affordable insurance premium. This is because insurance firms base their decision on whether or not you will become delinquent with payments on your credit score.
As a result, a high credit score tells them you are a low risk applicant, and that will get you lower rates in line with your level of risk.

Errors that Adversely Affect Your Credit Score
There are a number of things that if you do, it could negatively affect your credit scores. These errors are listed below;
• Late or missed payments
• Using too much credit at the same time
• Short credit history
• Using just one line of credit
• Frequently Requesting New Credit

1. Late or Missed Payments
Missing your credit payments, or even delaying them will cause a serious dent to your credit scores, as it signals to the credit bureaus that you are likely to become a delinquent to prospective lenders.

2. Using too much credit at the same time
If you are using a lot of credit at once, it will also affect your credit scores, as it is a signal that you might be using one to pay another.
This is especially bad if you are struggling to keep up with the payments.

3. Short credit history
Having a short credit history also counts against you, as lenders won't be able to gauge properly your credit history over a period of time. The only thing you can do is to build your credit history steadily over time, making sure to manage it properly.

4. Using just one line of credit
Using just one of credit also works against your credit scores. For instance, if you are trying to get a bank loan, and all you've been using for a long period of time are credit cards, your application might be knocked back. This is because the lender won't have any metric to judge your creditworthiness with regards to a bank loan.
This can be helped if you have a high credit score. Having a low credit score in this scenario won't do you any favors.

5. Frequently Requesting New Credit
It’s normal and expected that you'll apply for credit from time to time. When lenders and others ask a credit bureau for your credit report, it’s recorded as a credit checks.
If there are too many credit checks in your credit report, lenders may think that you’re:
• urgently seeking credit
• trying to live beyond your means

How to Improve Your Credit Score
Advice from FICO on this issue is that you have to rebuild your credit responsibly over time. Yes, a low credit score won’t do you any favours with lenders, but it is also possible to raise your credit score, if you follow the right steps.
To improve your credit score, you need to take the necessary steps to correct whatever errors you might be making. Such steps are included below;

1. Ensure you pay your bills promptly.
2. Ensure you pay off your debt and keep your credit utilization ratio as low as you can.
3. Get new credit only when you need it.
4. Go through your credit report thoroughly, and make sure you dispute any inaccurate info.

How Long Does It Take to Rebuild a Credit Score?
There is no specified time frame for this. Once you have negative information stated on your credit report, all you can do is to pay your credit bills as at when due and wait. There are no quick fixes for bad credit scores.
Also, the time it would take to get your credit scores back up depends on the reasons why it went down in the first place. For example, bankruptcies can remain on your credit report for up to 8 years, and delinquencies can remain on your report for up to 7 years.

Rounding Up
Having a great credit score will open up a lot of doors for you, and it would also ensure you get access to credit facilities you might not have access to ordinarily.
Keeping your credit score in tip-top shape isn't really difficult, and the benefits to that are numerous and worthwhile.

06/24/2020

Important news from pololoans!!!!

05/18/2020

05/18/2020

Some great information, well worth the read.

05/16/2018

Thanks for this Cindy Brooks-Miller

TD lowered its five-year variable closed rate to 2.45 per cent, or 1.15 per cent lower than its prime rate, for the month of May