Unimor Capital Corporation

Category: News

7 Ways to Avoid Credit Card Fraud
Credit cards are convenient — until someone else gains access to your account. Credit card fraud is on the rise, and is becoming a real concern that can affect any Canadian. In fact, in 2012, the RCMP reported that 541,580 accounts nationwide had been compromised in some way. Here’s how you can protect yourself from credit card fraud.

1. Ask for receipts for all of your purchases – If you notice charges that you didn’t make, report them to your card issuer right away.

2. Keep your card in sight at all times – keep your card in sight at all times in order to prevent “skimming” — which happens when a thief passes your credit card through a card reader that records your information from the magnetic strip.

3. Be extremely cautious over the phone – Unless you’ve initiated the phone call, don’t give out your personal information over the phone.

4. Protect your credit cards when travelling – Carry your cards with you at all times, or make sure they are in a secure location such as your room’s safe.

5. Be careful online – Make sure you enter personal information only on secure and reputable websites. Clear your logins and passwords, and be on alert for phishing scams.

6. Use credit cards with enhanced security features – If your credit and debit cards don’t already use chip and PIN technology, you might be putting yourself at risk.

7. Shred old documents – Make sure that you store all of your financial records in a secure place inside your home, and shred any document with your name on it before you toss it in the recycling bin. If you suspect you’ve been a victim of credit card fraud, follow these four steps:
- Contact your credit card issuer to report any suspicious activity.
- Contact your credit bureau to have a fraud alert placed on your credit report.
- Contact your local police.
- Report credit card fraud to the Canadian Anti-Fraud Centre.
According to the RCMP, credit card fraud cost Canadian merchants $365 million in 2012 alone, and more often than not, those costs are passed down to the consumer. Make sure you’re doing your part to protect yourself and your money.
September 9, 2014
How Does an Appraiser Determine the Value of a Home?

An appraiser will use a variety of methods to determine the fair market value of a property. The definition of market value is the highest price reasonably expected at any given time when an interest in land is sold by a willing seller to a willing buyer after adequate time and exposure to the market.

Appraisers are specifically trained and have sufficient experience to develop a realistic opinion of the value of a property. There are three basic methods when determining the estimated value of your home:

Cost Approach: This estimates the cost of building a new home identical to yours at current prices, subtracting accumulated depreciation and adding the estimated land value.

Income Approach: This approach is for income-producing property and is based on the assumption that the current value is the income potential when the property is developed to its highest and best use. The net operating income from the property is capitalized into value by an appropriate method and rate.

Direct Comparison Approach: This is based on the idea that an informed purchaser would pay the same price for acquiring another existing and equivalent property. The estimated value is based on the selling price and listings of comparable properties in the area.

The appraiser uses the most appropriate approach and supports the evaluation with the most reliable, factual and relevant market data. At times it’s advantageous for a buyer or a seller to get an independent appraisal to determine the value of the property. This will ensure you’re not paying too much or, if you are a seller, that the listing price is in line with the market.

August 1, 2014
Debt Fatigue: How Long is Too Long to Be in Debt?

Despite record levels of debt across the country, fewer Canadians than you might think are making moves to reduce the amount of money they owe. According to a new CIBC poll, 25% of Canadians say they haven’t taken any action at all to accelerate debt repayment, while only 16% have talked to a financial advisor about ways to better manage their debt. It all points to signs of debt fatigue – feeling completely overwhelmed by the amount of money you owe but continuing to spend anyway. Six months? One year? Three years? There is no set timeline for when someone reaches debt fatigue, but when you throw your hands in the air and just start spending; you can bet you’ve hit your saturation point.

There’s some nonchalance there, we’ve had an extended period of low interest rates, and the banks and financial institutions have done a very good job at marketing. You’ll see an ad for a car: just $199 every two weeks. People think ‘hey, that’s not bad,’ without stopping to think about the long term. People may think, ‘a bagel and a coffee a day is only five bucks a day. It’s no big deal,’ but when you add it up for a whole year, that’s close to two thousand bucks. Payday loan companies make borrowing seem easy too.

According to a poll, 60% of Canadians currently hold debt. Historically low interest rates have played a huge role in this. People have a lot more debt than they have in the past; because it’s relatively inexpensive debt, debt seems like less of an issue. Although debt repayment has been the number one priority for Canadians, according to CIBC research, less than half of Canadians are taking concrete steps to lighten the load. The latest poll found that 46% of Canadians have cut spending in order to better manage debt, 34% have implemented a household budget, and 20% have made at least one lump sum payment toward debt on top of regular payments.

With debt having become a fact of life for so many Canadians, there are ways to tell when your money woes are growing just as fast as your interest owing. The standard question is: ‘Are you having trouble sleeping at night?’ When it becomes an issue with people’s day to day lives, when you can’t sleep or are worrying too much, when it’s affecting relationships, then it really starts to wear mentally. When you get a credit-card statement that shows you that if you make the minimum monthly payments and it will take you 84 years to pay off the debt – that really starts to hit home.

Seek Support & Make a Plan

Things don’t need to reach a crisis point before you can seek help and start chipping away at debt. For starters, talk to someone, whether it’s an independent advisor, someone at your bank branch, a credit counsellor, or friends and family. Money doesn’t have to be a taboo subject. Don’t be afraid to say to someone, ‘Hey I can’t afford that. If they want to go out for dinner you can say ‘why don’t we do a potluck or we’ll order in pizza’. Everybody struggles with these issues, and you’d be surprised once you start talking about it how other people can relate to where you’re at.

Don’t let terms like budgeting or tracking spending scare you off. Find money-management strategies that work for you, just the way you’d integrate exercise into your routine. If you know you’re not a morning person, it’s unlikely you’re going to commit to going for a jog every day before work. If you don’t have the patience to write down every single purchase you make over a 30 day period, try giving yourself a weekly spending limit instead.

If you find it too easy to use debit or credit cards, use cash. Be clear about what it is you’re trying to accomplish. The thing most people do not do is look at what their goals are. If you have $500 in your account, do you buy the Lululemon hoodie you really like or do you put that money toward your home renovation fund? You have to have goals, because that allows you to make choices. Turn to technology to keep you on track too, most banks have tools where you can receive an alert via text message, phone, or email if you’re getting close to or have surpassed your customized budget.

By Gail Johnson – Yahoo Finance

July 7, 2014
10 Ways to Save Money on Your Credit Cards

Selecting the wrong credit card is a common mistake many people make. There are so many products out there that you have to first identify your needs in order to pick the one that works best for you. Next is reducing the costs associated with using that little piece of plastic.

Here are 10 tips to help you do just that:

1. Pay your balance in full: Every month, every time. It’s the only way to guarantee you won’t spend a cent in interest.

2. Know the interest rate on your credit card: 28% of Canadians don’t know the rate they are paying, according to a 2007 survey of 4,000 Canadians by Credit Canada. Make it your business to find out.

3. Ask your bank about low-rate credit cards: If you can’t pay your balance in full every month, switch to a low-rate card. All it takes is a simple phone call to your bank. These no-frills cards charge 10-12% interest, sometimes even less.

4. Ditch the retail credit cards: Some chain store cards charge upwards of 30% interest, the very top rates on the credit card heap.

5. Don’t make cash advances on your credit card: The interest rate kicks in from the day you withdraw the money – there is no interest-free period. And some credit cards charge a higher interest rate for making these advances.

6. Make sure the reward program offers real rewards: If you aren’t paying your balance in full every month, your rewards are being cancelled out by the interest you are paying.

7. Negotiate the annual fee: Ask your bank to waive this fee. If you’re a longstanding customer with a good credit rating, you just might get lucky.

8. Know exactly when the bill is due: If you miss your credit card payment by even one day, you’ll have to pay full interest for that month. And you don’t need to wait until you get your statement to pay the bill – you can do that anytime.

9. Reduce the number of credit cards you have: If you aren’t paying off your balance each month on all your cards, minimize the damage and carry only one card.

10. Lower your limit: Some people just can’t handle having access to $10,000 or more on their credit card. If you’re one of them, call your bank and simply ask to lower your limit to prevent yourself from overspending.

June 6, 2014
Understanding GDS & TDS: What Can You Afford?

When shopping around for a mortgage, there’s more to think about than simply finding the best mortgage rates. It’s important to also consider the terms and conditions of your mortgage, the size of your down payment, and whether or not you can afford the home (and monthly mortgage payments) you’re considering.

While there are handy tools like a mortgage affordability calculator to help you figure out what you can afford, it’s a good idea to understand how lenders calculate your affordability and the formulas they use to do so.

There are two standard measures of affordability lenders use to determine how much they’ll lend you. First, your Gross Debt Service Ratio (GDS) is calculated. This is the percentage of your income needed to pay all monthly housing costs: your mortgage, property taxes, heat, and 50% of your condo fees (if applicable). The industry standard for GDS is 32%, meaning you typically need a GDS lower than 32% to qualify for a mortgage.

Calculating your GDS

GDS = (Principal + Interest + Property Taxes + Heating + ½ Condo Fees) / Gross Income x 100

Next, a lender will calculate your Total Debt Service Ratio (TDS), which is similar to a GDS but also takes into account your other monthly debts, like credit card payments, car payments, alimony, and loans. The industry standard for TDS is slightly higher than GDS at 40-42%.

Calculating your TDS

TDS = (Principal + Interest + Property Taxes + Heating + ½ Condo Fees) + Other Debts) / Gross Income x 100

May 30, 2014
Understanding Your Credit Report
A credit report is a history of how consistently you pay your financial obligations. It is created when you first borrow money or apply for credit and is built over time. The companies that lend or collect money or issue credit cards (banks, finance companies, credit unions, retailers, etc.) send credit reporting agencies specific and factual information about their financial relationship with you. Details, such as when you opened up your account, timeliness of your payments and if you have gone over your credit limit, are shown in full.

Although this information is confidential, you have the right to see your credit report and no one else can have access to the information in the report unless you allow it. Typically, when you apply for a loan, a credit card or even a mortgage you will need to allow this organization to check your credit history. It will include the following account types:
- Revolving accounts (credit cards & credit lines)
- Installment accounts (loans)
- Other accounts (cell phones)
- Collection accounts
If you would like to obtain a copy of your credit report you can contact a credit-reporting agency such as Equifax or TransUnion Canada. When you receive your credit score it’s important to make sure that the information is correct. If the score is lower than you were expecting, review your history and see where you may be able to improve.

Tips to remember to improve your credit:
- Make sure you have a credit history: you may not have a score because you do not have a record of owing money and paying it back. One way to build a credit history is by using a credit card.
- Always pay your bills on time.
- Don’t go over 50% of the limit on your credit card.
- Apply for credit in moderation.
May 23, 2014
What to Consider Before Your Mortgage Renews

Have you explored all your options?
Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term. But while this may make sense in many cases, your family or financial situation may have changed. We can look for opportunities that could better meet your needs.

Are you comfortable with your payments?
If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more manageable level. On the other hand, if you’re earning more, why not pay down your mortgage faster, saving thousands in interest!

Do you need cash flow for other things?
Your priorities may have shifted since you first bought your home, and your cash flow needs to shift too. Things like paying for a child’s education, planning a career change, or a major purchase may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.

Can you handle fluctuating rates?
Some homeowners are nervous about any hikes in interest rates, while others are comfortable to go with the flow. Rates are tough to predict. It’s best to base your decision on your personal situation, not what you read in the news. We can help you decide whether to opt for fixed or variable rates.

Will you sell soon?
If you are likely to sell soon, consider a shorter term mortgage or one that has more flexible terms so you’re not penalized if you sell your house before the mortgage comes due.

Are you thinking about a major renovation?
You know that projects such as a new kitchen or an addition can make your home more valuable. But the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional line of credit or keeping your mortgage payments low so you can have money on hand to finance the renovations.

When do you want to be ‘mortgage-free’?
If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner, rather than later. While increasing your payments will raise your monthly payments now, ultimately you will save on interest and can prepare for that fabulous mortgage-free lifestyle!

Could you use your home equity to fulfill other goals?
Refinancing a mortgage can be one way to free up cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

Have your insurance needs changed?
If your financial situation has changed since you first took out your mortgage, review whether you need the same level of insurance in place to cover mortgage obligations.

Are you getting the best rates & terms?
In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money saving opportunities.

May 22, 2014