Be cautious when using your credit card at gas station pumps

On a recent trip to Toronto, I had to gas up my rental car. To avoid an umbrella-less dash to the store during a rain storm, I thought I'd just use my credit card at the self-serve pump. I inserted my MasterCard and the clerk chimed in over the loud speaker, "the credit card option isn't working - you'll have to pay inside."

So I did, paid with cash, thought nothing of it and went about my day. Until, I received an email alert (my MasterCard sends me an email alert when there's a transaction on my account) for a $100 purchase. I called MasterCard to find out what the charge was and they told me it was ESSO, the gas station putting a hold on my account. Even though the machine supposedly didn't work.

Again, I thought nothing of it and went about my life. Today, I logged onto my account and saw there was a $25 charge from the date in question. I called MasterCard and after a reasonable amount of time (but still a wasted 20 minutes of my life), they're reversing that charge with follow-up proof of my cash paid receipt.

I'll definitely think twice about using my credit card at a self-serve pump in the future and also a reminder to keep all receipts.

Apartment hotels offer a home away from work

Major hotel chains are expanding their all-suite or extended-stay brand lodgings.

Great article by BERT ARCHER. Check it out here - http://www.theglobeandmail.com/life/travel/apartment-hotels-offer-travellers-a-home-away-from-work/article1540787/

Mark Carney signals interest rates to rise

‘With recent improvements in the economic outlook, the need for such extraordinary policy is now passing,’ Bank of Canada says.

Read the full article here in today's Globe and Mail online - http://www.theglobeandmail.com/report-on-business/economy/mark-carney-signals-interest-rates-to-rise/article1540317/

If you haven't pulled out and dusted off your mortgage statement recently, now is a great time to have a look. Do you have an interest rate high enough that it might justify breaking your mortgage, paying the penalty and getting in at a lower rate? Perhaps you've been sitting on the variable vs. fixed rate fence and might be wondering if you should lock in?

Call your banker for options and remember to shop around. There's a few banks out there offering 2% plus cash back if you bring your mortgage to them. But of course, they've capped the offer and have their limits, so make sure to read the fine print as always and crunch the numbers.

You'll have to call your bank to find out what your penalty would be if you broke your existing fixed term mortgage, but you can get online and play with different interest rates and even do some pre-remortgage shopping.

A few calls could potentially save you thousands of dollars. Have a look at your mortgage details today.

Finding the motivation to melt your mortgage

April 9, 2010

JENNIFER WILSON-SPEEDY

YOURHOME.CA EDITOR

Who wouldn’t love to shave a few years off their mortgage payments? Burn My Mortgage aims to do just that, casting families in the GTA to participate in the new W Network series, billed as “home finance meets The Amazing Race.”

Check out the full article at: http://ow.ly/1wsm6

Why are Canadians taking on more debt?

The recession, depending on where you lived in Canada, was tough for many, but I think opened our eyes to one's true needs vs. wants. I was proud of the many articles and conversations eliciting chats about watching our spending, cutting back or what I like to call, "intelligent frugality". Apparently though, the lessons were short lived.

According to the Globe & Mail this morning, CIBC economist Benjamin Tal said, "As of February, household credit was up by more than 7 per cent from a year earlier – more than three times faster than income growth.

The debt-to-income ratio, as a result, hit a record 147 per cent in December, and is accelerating at the fastest rate since the mid 1990s." Here's the full article: http://www.theglobeandmail.com/report-on-business/economy/debt-will-bite-consumers-report/article1520029/

Consider this the next time you're thinking of buying something on credit that you don't absolutely need - how long do you want to be a slave to your lender? When I was in the financial industry, I'd ask my clients a question: What does more money, less debt mean to you? Of the thousands of answers I received over the decade I was in the biz, the answers varied (more vacations, putting the kids through school, being able to retire, etc.), but there was one common theme as I questioned further. Every root answer was the same - freedom.

So, if we all want more freedom - what money can buy - why then, do we continue to fall prey to financial slavery?

Is this a good time to lock in or refinance your mortgage? (from the Globe)

In case you missed yesterday's mortgage rate hike announcement (by three of Canada's banks), check out the Globe at:

www.theglobeandmail.com/report-on-business/mortgage-rate-boost-signals-rock-bottom-era-is-over/article1516497/

Also, there's an interesting forum with many thoughtful points on the fixed vs. variable debate at:

www.theglobeandmail.com/globe-investor/forums/globe-investor-1_personal-finance_this-good-time-lock-refinance-mortgage/?plckFindPostKey=Cat:e528746c-3414-401a-b14b-50247e3bdf01Forum:726cb897-65e7-4529-a1da-c5192c9aa85aDiscussion:cc7f909c-5c02-4956-b7c8-b98ab2b316dfPost:24b2cdda-159a-44e7-b70b-39586574d225

Mortgage basics - understanding fixed vs. variable rates

With all the mortgage options these days, you as the consumer have more flexibility than ever. But with choice can come confusion and the importance to fully understand the terms and definitions.

Someone last week told me they could get a 5 year mortgage for 2.75%. That's sort of true.

Right now, a five year fixed, using RBC and BMO as an example, you could lock in at 3.95%. It's a fixed rate and no matter what happens to interest rates, you're guaranteed the same rate for five years; thus the term "fixed".

Here's where it can be a bit confusing. You can have a five year "term" with a variable rate. Basically, if you chose this option, your interest rate would float with prime (right now 2.25% plus or minus the deal you get from your bank) and if interest rates increase or decrease, your rate also increases or decreases. The five years in this example pertains to not being able to leave that bank or change your options (some banks do allow you to lock in your variable rate - some options don't). However, your rate is not fixed in this example. Plus, there's "closed" or "open" terms. The latter means that you could fully pay off your mortgage, move it or change it without penalty - but you'll pay a higher term to do so.

So back to my friend's comment - yes, you could get a "five year mortgage" for under 3%, but remember, that rate would not be "fixed".

Make sure to read the fine print and understand what each term means before signing on the dotted line. Still confused? Check out your bank's website. All the big lenders have fantastic sites with explanations of their products, calculations, comparisons of options and more.

Check back shortly and I'll discuss the advantages and disadvantages of fixed vs. variable rate mortgages and how to choose which is right for you.