1-877-744-3436 Apply Now

Income Tax Deadline 2015 is April 30th what happens if you didn’t file a return?

By | Blog, How To.... | No Comments

Income taxes are due April 30th at midnight for most Canadians,

but what if you missed it or skipped it?

Tax Time 2015 This answer varies depending on whether or not you owe taxes.

 

You can still file them after the deadline but penalties may apply. As well you can mail or Netfile taxes returns usually up to September 30th.

  • Don’t owe taxes then there are not penalties but you will not receive your refund until your taxes get filed.
  • Don’t owe taxes but you haven’t filed; there might be a delay in receiving benefits like, GST or Child Tax Benefits

Tax Time 2015If you owe taxes and have not paid or filed by May 1st penalties & daily compounding interest will begin.

  • Penalties start at Five percent of the amount owing
  • Penalties can double for Individuals that file late more than once in a four-year period
  • Fail to report an amount on your return in pervious years within a four year period you could be hit with a repeated failure to report income penalty of 20%

Tax ArrearsWhat if you owe more than you can pay for in income tax?

Experts say you should still file your income taxes.

Check out this article by Susan Ward: What Happens If I Can’t Pay the Income Tax That I Owe?

Mortgage BC

 

Income Tax Blog 2015

Tax Time 2015

I have helped many individuals that for one reason or another are years behind in their personal income tax. When your bank will not assist you due to tax arrears I have lenders that will lend sole on the equity in your home. Call today if you require assistance.

Mortgage Loans

Home Equity Loan Rate Shopper DIY Mortgage Specialist

By | Blog, Debt Consolidation, How To...., Mortgage Solutions | No Comments

DIY Mortgage Rate Shoper

Mortgage Rate Shopper or Work with a Mortgage Professional?

Mortgage BrokerRate Shopper “What is the lowest home equity loan rate you have” is a question I get every day. As rate shopper looking for a BC Home Equity Loans (this does not apply to Home Equity LOC’s to 65% LTV at a bank or financial institution) you are dealing with a product that means for  one reason or another you do not qualify under conventional mortgage criteria. Although rate should play a part in every transaction your Mortgage Brokers knowledge in lenders & negotiating terms and conditions is going to be the major factor in determining costs associated with arranging the financing now and possible costs in the future.

mortgage broker BCLet’s look at a few scenarios, why you do not qualify for conventional financing and why you should use a mortgage expert rather than becoming a rate shopper and get a better understanding of your needs and the difference between Home Equity Loan rates & lenders:

  • Self-Employed Rate ShopperYou are self employed and do not want to claim all your income due to the cost savings in taxes. This is true in some cases but if you are stuck with a very low max mortgage (lets say $150,000) and you have to top this up with a larger home equity loan (lets say $150,000) at a higher rate of interest this might be a good time to start paying the government and stop paying the high rate home equity loan. An experienced mortgage professional can help you run the numbers and make an informed decision. A direct lender may not work with you to better your current situation because they do not provide conventional financing options to their clients. It is not about rate it’s about dealing with a true professional mortgage broker independent from the lenders that can show you the cost associated with the mortgage rather than being just a rate shopper.
  • BC Debt Consolidation Equity LoansYou have bad credit and you are looking to borrow money to payoff debts. That is great!! But do you know some of the pitfalls or techniques to do it correctly? Credit can recover quickly if you do it right, for example sometimes it is best to pay off and entire card and other times it is good to just pay the balance down under 50% of the limit. Paying off cards or other loans and closing accounts can have devastating impact on your credit. Trade lines tell a story about your payment history over time, like it or not. But bad credit is sometimes a moment in time and not a reflection on you over a long period of time. Deleting that history can have a larger impact than the missed payments. For many DIY client rate shopping for home equity loan does not take into account the costs they incurred when not taking a look at the whole picture.
  • How Much is Too muchHow much is too much to borrow? Great you were approved for $100,000 2nd mortgage to pay off credit card debts pay your property taxes and do some home renovations. Will you be able to refinance your 1st mortgage to include this $100,000 in the future? Credit and debt servicing ratios (TDS & GDS Ratio) play a massive roll in your future financing options. Borrowing too much now can affect your future refinance, but equity lenders only look at equity to qualify your approval. There is more to consider and a mortgage professional can provide options for you to consider.
  • Interest Rate Lender FeeIs the interest rate you have affected by a lender fee? Lender fees may affect your financing at the end of the term. Many lenders use a lender fee as well as a broker fee when providing an offer sheet. While the practice is not bad in all cases, in some it can be a surprise if that lender fee was to offset your rate to appear lower. For example a $100,000 home equity loan at 6% with a $2,000 lender fee is 2 % higher than a rate without a lender fee. At the end of the term what if the lender wants to yield 8% on the loan again? That means a lender fee of 2% is required to renew that mortgage. A $2,000 cost to the borrower at renewal can be a shock and may not be manageable leaving you to refinance your mortgage again to pay for those costs. In those cases focusing on rate doesn’t prepare you for the true cost of borrowing money.
  • Equity Loan Bad CreditYou have bad credit and you always have had bad credit, that’s just the way you are. Ya there are people like this and there are bad credit mortgage lenders that are better to use for late payers than others lenders. The management of a home equity loan is un-measurable costs and many private lenders that offer great home equity loan rates do not want to see late payment, held payments or any other sort of management of the mortgage. These lenders may not a renewal at the end of the term to people with payment issues. So understanding a client’s history by a complete review of their credit history and setting the client up with a lender at a rate they are comfortable managing payment delinquencies at can be a significant cost saving to you the borrower. You might think “why pay for a higher rate if I don’t have to for a home equity loan”. Well being matched with the right lender at the right interest rate can be far less expensive than the cost of refinancing your mortgage every year if the lender does not want to deal with payment issues. Be honest with yourself if you lose track of payment dates constantly you need someone that understands you, and there is a cost associated with that.

Don’t try to be a DIY Mortgage Professional When dealing with Home Equity Loans. Leave it to independent mortgage experts!

Home Equity Mortgage Specialist BC

DIY Mortgage Rate Shoper