As seen in the Financial Post:

When dividing up family property, if one spouse owes the other a hefty payment, they may be able to dodge it through a bankruptcy claim.

In a unanimous ruling, the Supreme Court of Canada said a claim for equalization in divorce proceedings is a provable claim under the Bankruptcy and Insolvency Act. If the spouse entitled to payment doesn’t pursue the claim as a creditor in bankruptcy, it will be released along with most other claims.

This is unlike claims for spousal support and child support, which cannot be avoided through a bankruptcy claim.

The Court said the matter is “ripe for legislative attention so as to ensure that the principles of bankruptcy law and family law are compatible rather than being at cross-purposes.”

But absent Parliamentary action to change the federal bankruptcy law, the Court warned that spouses owed equalization payments should keep the pitfalls of the legislation in mind.

The couple in Schreyer v. Schreyer were in the midst of divorce proceedings in Manitoba when the husband filed for bankruptcy, unbeknownst to the wife, who was not listed as a creditor. When he was discharged about a year later, the husband remained the sole owner of the family farm, which was exempt from creditors.

Meanwhile, the two had gone through the process of valuing their assets to divide them up under the family law regime in the province and the husband owed the wife about $40,000.

The Supreme Court noted that had she made a claim as a creditor in the bankruptcy, the wife, unlike other creditors, could have sought an ownership interest in the farm and enforced that even after he was discharged.

The Court also said if the wife has an outstanding support claim, a family court could take into account the fact that she never received the property payment and award her more support. But that would be up to the judge hearing the case.

The seven-member panel of the Supreme Court dismissed the wife’s appeal from the Manitoba Court of Appeal but ordered no costs in the case.

What’s more, the Act applies differently to litigants depending on what province they live in. In places like Manitoba and Ontario, where the distribution of family assets upon marriage breakdown is done through an equalization payment based on the value of what both spouses’ own, the claim can be extinguished through a discharge from bankruptcy.

But in provinces that follow a division of property scheme, such as British Columbia, divorcing spouses are entitled to a ownership interest in the assets themselves, not just a monetary claim. In those provinces, a bankruptcy discharge could not destroy that interest.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

604-273-2002 or on the web

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

Here are some tips to create a captivating kitchen:

You can cut down on visual clutter by removing items you normally store on the counter.  This will help your kitchen look more spacious.

Your eat-in kitchen should have a table and chairs in it.  Buyers like to see an eat-in kitchen, but often don’t have the vision to see it as such without the furniture.

Remove window screens in the kitchen.  Screens take away from allowing natural light inside.  Plus, no one will notice they are missing.

It’s a good idea to keep some toll-house cookie dough on hand, and bake up a few cookies just before a showing…but don’t overdo it.

Keep the exotic spices and fish to a minimum when cooking the night before a showing.  Work towards achieving a “clean” smell.

Thoroughly clean all your appliances and cupboards, including the inside of your oven and microwave.

Set the dinner table with your best china to stimulate your buyers’ imagination of the dinner parties they’ll host.

Many buyers will look inside your cabinets, so make sure the inside is organized and clean.  Also store non-essential items elsewhere to make the cabinets look more spacious.

Clean as much as possible off the countertops.  Items such as the coffeemaker, toasters, can openers, salt and pepper shakers, recipe boxes, and dish draining rack can be put away.

Make sure that your counter is spotless and shiny.

If you keep fruit or flowers on your counter, be sure they are always fresh.

If your cabinets show wear and tear, you might want to paint them.  A simple trick to update the look of your cabinet doors is to replace your current knobs with new ones.  It’s much cheaper than getting a new kitchen, and it sure can make a difference.

Shine your faucets and knobs and use spot remover to prevent water spots.

Remove notes, pictures, and coupons from the refrigerator door.

Empty your trash cans.  Garbage and recycling bins must be out of sight.

You may want to make your home more attractive by having us approve a rate hold on the home you’re selling.

That way if rates rise, your buyer gets a lower rate!

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

That’s exactly what the caller in the video below stands to lose.

All because she didn’t know the difference between a Pre-Approval and a Pre-Qualification.

It’s a common story.

Client attends a showroom, likes what they see, writes an offer, gives a deposit and anticipates closing 2 years down the road.

Speculators were purchasing condos by simply putting down deposits with no intention of ever closing.

The market was so hot, they would simply flip the paper.

In the old days that may have been true.

But, many are finding out the hard way that those days are gone. Even more concerning is how they got lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage, it means that they’ve been pre-approved for the purchase.

That couldn’t be further from the truth.

In fact, there’s a BIG DIFFERENCE between those terms.

A Pre-qualification simply calculates the amount of mortgage you can qualify for based on your total combined household income and debt. It does not take into consideration your down payment, where it came from, your source of income and most importantly, your credit history.

A Pre-approval, on the other hand, takes into consideration all of those things.

Banks will often do a pre-qualification over the phone. Unfortunately, it can be as worthless as the paper it’s written on.

If you or someone you know is in a situation like this, we may have some alternatives for you.

Contact us at 604-273-2002

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

Don’t get me wrong, I’m not saying don’t apply.

I’m saying, don’t apply yet.

Do you suspect there may be an issue with your credit, if so, you’re better off pulling your bureau yourself. Your score will not be harmed by inquiries into your own credit report. Whereas, if you apply on line or in person, you have pretty much agreed to have your credit bureau pulled by a third party.

To have your credit pulled today only to be told that your credit’s not up to snuff, is less than productive. As per my previous blog on credit, frequent inquiries can have a negative effect on your score.

So what should you do?

Regardless of whether you suspect an issue or not, you should pull your credit at lest once a year. You may be surprosed to learn that almost 80 percent of people have errors on their credit reports, 25 percent of which are serious enough to cause a person to be turned down for a job or a loan.

Though your payment history accounts for about 35 percent of your credit score, late payments within 6 months have the greatest impact on your score. You might also be surprised to hear that collection companies are notorious for keeping poor records. If you have an account in collections, you might want to send a letter to the collection company asking them to provide verification that the debt in question is yours. If a collection company is unable to verify your debt, they must remove the item from your credit report.

If you think you may have a late payment or collection on your credit bureau, instead of applying, go to www.Equifax.ca and follow along with the video below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

Sure, you wish there were a few more zeros on there, but it’s the vanishing act that’s the killer.

Tax time is the worst, you can see how much money you made, but your credit card is still maxed and you don’t have much to show for all your hard earned income.

Are your credit cards floating near max?

Are you dipping into you overdraft?

Have you checked the interest rates on those cards lately? Add it up. You may be surprised how much interest you’re paying each month to carry that debt.

Imagine the 28% or higher interest that these credit card companies are charging, it’s highway robbery.

These types of debts are UNSECURED, hence the wickedly high rates.

Your house on the other hand is considered a very reliable security, so mortgages offer some of the best rates around. (Especially NOW)

You may already be seeing the benefit of taking advantage of these historically low rates to save a ton of interest charges. Do the math, compare current mortgage rates with the interest rate on your latest credit card statement.

Now imagine rolling all that debt into your mortgage. You consolidate your debt into ONE payment, save a TON of cash in interest and improve your cash flow.

And the kicker, you’re credit score will go up faster than ever before.

As an example, if you have a $250,000 mortgage at 5.5% plus high interest credit cards and other loans of say $30,000; your total monthly payment could be $2,426. Now if you took that $250,000 and added on an approximate $5,000 penalty to refinance your mortgage, you may be able to potentially roll it all into a new $285,000 mortgage at 3.64%.

AND if you do it before the new rules kick in, you may still take advantage of the extended 35 year amortization.

This will reduce your overall monthly payment to $1197.00.

That’s a monthly savings of $1229.

Your monthly payment has been reduced, you’re saving a ton on interest charges, and all of your high interest rate credit card debts are gone. Imagine if you funneled some of that cash flow back into your mortgage or invested it!.

You may want to call me before these rules change.

Remember, when it’s gone, it’s gone.

You will no longer be able to take advantage of the 35 year amortization or refinancing up to 90% of the value of your home.

Call me today at 604.273.2002

PS – This type of refinance can also be used to withdraw cash for investment purposes.

Please leave your comments below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

I was at the gym this morning with my wife and we were both observing one of the personal trainers with their client.

Watching him train his client with obvious poor technique, made me think about clients who walk into a bank, ask for a mortgage specialist and also get poor advice.

The problem is, as with the member at the gym, if you don’t know any better, it’s easy to believe that what you’re getting is expert advice.

Simply having a certificate doesn’t make you an expert.

A client called me the other day. He made it clear that he was shopping around for a mortgage, and was only interested in rates.

I explained that I didn’t discuss rates on the phone, and we ended the conversation.

Two days later he called again, this time to tell me he’d contacted five Banks, gotten rates and fees from four of them – and now he wanted to meet with me.

At our Initial Consultation Jack started by asking about rates and fees, but I advised how it would benefit him to first learn how I worked.  Then we’d decide if I was the right Mortgage Consultant for him, and if he was the right client for me.

As our meeting came to a close, Jack said, “I’ve purchased or refinanced over 20 homes in my life and have never worked with a Mortgage Broker who does what you do.”  He said he was pleased to choose me as his consultant, and then, when we discussed my rate, he was even more pleased!

You can reach me at 604-273-2002

Please leave your comments below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

That is, if you can get it.

The credit bureau doesn’t make it easy.

In fact, one might even say, they make it slightly hard

So YES, you can get a free credit report and I’ll show you how below, BUT the free report DOES NOT include a very important piece of the puzzle -

One of the MOST important parts of your credit – YOUR BEACON SCORE.

Sure, all the information is important, BUT most lenders look at your beacon score FIRST. If the score doesn’t meet their guidelines, they look NO FURTHER.

I encourage all my clients to pull their credit bureau AT LEAST ONCE A YEAR.

You may be surprised to learn that almost 80 percent of people have errors on their credit reports. Errors that have a NEGATIVE effect on your score.

You also probably didn’t know that many employers consider your credit score to be a sign of your character, and some companies (especially those hiring employees responsible for money) will check your credit report.

Landlords look at your credit score as well.

One thing to remember, NO ONE can legally look at your credit UNLESS you give them authorization. Read the fine print whenever you’re filling in any type of application.

In the video below, I outline how to pull your credit report – WITH a beacon score.

It isn’t free. Will cost you about $25

If you’re looking for the free copy that DOES NOT include your score, you’ll need to photocopy both sides of two pieces of identification:
driver’s license, MSP card, signed credit card, social insurance card etc…

Equifax free credit request form

Mail the form and the photocopied identification to the address listed on the form and you’re done.

Once you have it, you may want to discuss it with me.

I have many tips & tricks to increase your score.

Call me to discuss 604-273-2002

Vancouver Mortgage Broker, Mark Fidgett

In fact, you may have read some of his books.

If you haven’t, you should.
Easy reading, short to the point chapters & GREAT advice!

More importantly, earlier I shared his 60 TIPS FOR A STUNNINGLY GREAT LIFE

I invite you to follow along as I implement these tips in my life .

I encourage you to watch Robins follow-up video below on how to make 2011 the single best year of your life yet.

ENJOY, HAPPY HOLIDAYS  & ALL THE BEST

Click Here for my 2011 goal setting log sheet

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

To receive a Free copy of Phils book -
“7 Steps to a 720 Credit Score”
Click Here

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret

A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.