Anava
Financing Inc. is a mortgage brokerage firm operating
within the westend of Toronto, Ontario and servicing
all of Canada. With Mortgage Consultants operating from
all over Ontario we thrive in the industry as the number
one in customer service. Our size and deal volume also
allows us to develop special relationships with lenders
so that we can negotiate special low rates for our clients.
With us you are guaranteed the lowest rate on the market,
which means thousands of dollars in savings for you
through the years of home ownership.
As a brokerage we work for you, we shop every lender
out there to get best rates and the most flexible mortgage
around for you, that’s our job.
If you are a first time buyer with no property in mind
we will pre-qualify you and secure your mortgage for
4 months.
Rudy
Lochan, Broker and CEO, has lead the Anava team to success
in the mortgage industry. With over 25 years of experience
in the real estate industry Rudy brings a Smörgåsbord
of financial products to better serve the diverse community
of Toronto.
We
deal with all major and private lending institutions;
we also deal with credit unions. We are dedicated to
finding the best products and rates for our clients.
Our
expertise cover:
1st and 2nd Mortgage Approvals
Credit Advice
Debt Consolidation
Refinances
Business & Personal Loans
Lines of Credit
Visa Cards
We also deal with clients who have poor credit and hard
to place deals.
Kindly 416.410-7501 or anavacentum@gmail.com
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Article
#2:
How To Make Your Mortgage Interest Tax
Deductible
A
mortgage is often the largest debt people incur. The
stress associated with its size often sets people on
a mission of trying to pay it off as quickly as possible.
While not without merit, this goal is often previous
generation’s well intended guidance that actually
lacks financial wisdom and often has negative results.
Advice
is one thing that is freely given away, but watch that
you take only what is worth having. Statistics Canada
tells us that 10% of the population control over 50%
of the wealth. The recent publication by Fraser Smith,
"The Smith Manoeuvre," provides instructions
and quantitative proof showing the benefit to re-think
paying down the mortgage, and to re-consider debt’s
place in a financial plan.
The concept is quite simple; borrowing to invest in
non-registered assets, unlike borrowing for a family
home, allows interest to be tax deductible (according
to CRA - providing there is an expectation of profit).
According to Canada Revenue Agency rules governing interest
deductibility for investing are set out in IT-533 Interest
Deductibility and Related Issues - October 31, 2003
and represents the most current reference at the time
of writing.
The change in reason for borrowing lowers after-tax
borrowing costs as the interest creates a refund at
your marginal tax rate. At a 40% tax rate interest cost
is 40% less. To put this in perspective, a 5% mortgage
becomes 3% after interest deduction. As an investor,
if the after tax rate of return exceeds 3% you are getting
rich with someone else’s money.
Each mortgage payment is a blended portion of principal
and interest – interest incurred to borrow for
the home (not tax deductible), and principal that is
paying off the total mortgage balance outstanding. At
the start, a mortgage payment goes mostly to interest
and less to principal – this reverses over time.
As the mortgage is paid down the home equity can be
re-borrowed to invest. Using the equity to invest, the
interest on this borrowing is tax deductible and unlike
unused home equity, able to grow and compound.
The homeowner who puts $100,000 of equity into an income
producing asset with an ‘expectation’ of
profit can write off the associated interest cost. At
a 40% tax rate the investor’s real cost to borrow
is actually 60% of the face rate of interest as a result.
At the 4.25% prime rate of today the real cost to borrow
is 2.55% (60% of 4.25%). In other words, to be gaining
the after tax return need only be above 2.55%. While
interest rates vary, the long run probability for gain
is clearly strong with numerous investments. As Fraser
Smith points out, since the house is the security the
investment portfolio is free and clear and provides
liquidity if ever required along the way.
Using
home equity responsibly is a powerful tool for asset
accumulation. While you may always have a mortgage -
a six figure mortgage with a seven figure investment
account gives little concern. For advice on this strategy
can be found at www.smithman.net. While what you owe
is important, what you are worth after tax is what ultimately
fulfills most financial goals.
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Useful
links:
Apply
For a Mortgage - Why
a Mortgage Broker? - Contact
Us - Request
a Call Back
https://www.centum.ca/rudy_lochan
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All
articles listed above are courtesy of:
CENTUM
ANAVA FINANCING INC. Your Community
Mortgage Broker.
Kindly
click here
to return to
the main Business page.
