Is this the right time to lock in your mortgage?

Many Canadian homeowners are having problems deciding on whether to choose a fixed rate or a variable rate mortgage. This decision can affect how much your monthly payments are and how much interest you pay over the life of the mortgage.  Here is a breakdown of the advantages and disadvantages of variable and fixed rate mortgages.

 Fixed Rate mortgages

The advantage is you have a fixed mortgage payment over a chosen period.  Since the payments are fixed, you are able to better budget your money. You also know exactly how much interest and principal is paid over the life of the agreement. If rates increase, you are locked at the lower rate.


The disadvantages are you’re locked in a certain rate for a given period. If interest rates decrease and rates lower, your rate stays the same.


Open Mortgages

The advantages are that you have flexibility. Your interest rate is affected by the interest rates set by the Bank of Canada.  You can also lock in, if rates lower.

The disadvantages are your payment is affected by the markets. Even the slightest increase or decrease can affect how much you pay each month. In the 1980’s interest rates drastically increased. Many people were unable to afford their mortgage payments and walked away from their homes.

Most mortgage brokers and banks are able to help you decide on what is best for you. Most offer you free mortgage assessments. Make sure you understand all of the details remember this is the biggest purchase most people will make in life.

Would you pay five dollar to use your debit card?

Big banks are starting to listen to their customers now. Recently Bank of America scrapped its plan to charge its customers a $5.00 monthly fee to use their debit card, after thousands or customers closed their accounts re-opened accounts with credit unions and community banks.

 “When I heard about the fee, it was the last straw for me," said Molly Katchpole, a 22-year-old nanny whose online petition urging Bank of America to drop the debit fee captured more than 300,000 signatures. "I'm living paycheck to paycheck and one more fee was just too much."

 With millions of Americans out of work, the high cost of living, and a record household debt, many American are going through difficult times and are starting to pay more attention to their finances.  More citizens are starting to pay more attention to price increases and fees and refusing to pay these increases. With the exception of the bag fee implemented by the airlines, most companies are having problems introducing fees without consumer backlash. I personally would not stand for paying these outrageous fees, there are always cheaper alternatives in the marketplace.  

Will we ever know when the end will come

 This seems to be a hot topic for 2011. Many people have made many failed predictions over the years. I am sure there will be many more.  I am a true believer that we will never know when the world will end. According to the bible, we will never know when judgement day will occur. It could potentially never occur. I hope it never occurs in my life time. I never seem to be able to be able to figure out, how these are able to find people to support their cause.  They are willing to sell to support the cause. When these events do not occur as planned, many try to hide, commit suicide or develop mental health problems. We need to focus on living and not dyeing. When will we start looking forward to what the future?

Today’s Professional Athletes

When will professional athletes wake up and smell the coffee.   Millions of individuals are struggling trying to feed their children and keep their house. Unemployment is high, forecloses are up and the cost of living continues to increase. We are experiencing the worst recession since the great depression. Professional’s athletes on the other hand are raking in millions and want more. With a shrinking middle class in North America today, when will they wake up? There will come a time when no one will be able to attend games and pay there ever growing salaries. So far the National Hockey League is the only league in North America to cancel an entire season.  Will the National Basketball Association be the next victim?