Question: Why does everyone tell you NOT to pay your Taxes with your mortgage? Are you paying more to the bank if you do so???
Answer:This is a question or concern that comes up with almost every transaction that I am involved in. It’s a valid concern, especially when most consumers are not given a choice when they enter into a high ratio mortgage, now that insurers are insisting all high ratio mortgages must have property taxes included in their monthly payments. So, myth dispelled!! Firstly, a consumer that pays property taxes with their mortgage payment is not paying any interest on this portion of the payment to the bank. Consumers will pay 1/12th of the annual taxes on their monthly payment and nothing more. Does the bank make money?? Absolutely, YES, but not from the consumer directly! All lenders enter into negotiations with municipalities to pay property taxes on behalf of the consumer quarterly or yearly. Therefore, they collect 1/12th of every consumer’s payment, invest this money in an interest bearing account, and thus make interest on all the money accumulated until such time as the payments are made!! I must caution you. When your property taxes increase, please advise your lender. If you do not, by the time the lender learns of the increase, you may be several months behind and the lender will request the difference in full, which may catch you off guard!!!!
HUMAN RESOURCES EXPERT, Annette GrantBranch Manager
Question: How do employers get employees to re-engage in 2010?
Answer:In a recent online survey by Express Employment Professionals, readers were asked if they would “job hop” for a better job opportunity. Of nearly 800 respondents, 81 percent said, “Yes,” they would job hop in 2010. Attrition cost companies thousands of dollars per lost employee. If these surveys are indications of what is to come, employers could see profits disappear. If employers want a chance to rebound in 2010 and avoid turnover, they must refocus their efforts on employee engagement. One tried and true method for rebuilding trust and increasing employee engagement is…communication. That’s honesty about where the company stands financially, plans for the future, and the necessary steps to get there. Employers should avoid sugarcoating the truth about the situation and making promises they can’t deliver. When employers give employees opportunity to feel connected to the rise and fall of a business, workers feel personally involved and are usually willing to do whatever it takes to help. An open door policy is a great strategy to keep the lines of communication flowing. Employers should encourage their employees to ask questions, no matter the topic, and address concerns honestly. Employees are more inclined to stay loyal and engaged to a company when they feel their concerns are being considered. 2009 had a huge impact on the workforce, those who have lost jobs, as well as those who are worried they’ll be next. It’s critical to remember that the real reason companies are successful is because of their people. Businesses that invest in and value engagement will achieve higher levels of employee satisfaction, loyalty, and in turn, success.
Answer: You can’t always avoid risk, but you can insure against those situations. A business insurance agent can help you identify the risks your business may be exposed to and provide customizable insurance solutions to cover these risks. To ensure that all your obligations are covered, it’s important to consider separate policies for the business and your family. Some important kinds of business insurance coverage to consider include: General Liability Insurance protects your business from lawsuits due to injuries or damages to others or their property cause by your products or while on your premises. Trade Credit Insurance to protect your accounts receivable from losses due to a customer’s inability to pay or insolvency. Commercial Property Insurance protects property owned by the business against situations like fire and theft. Error and Omissions Coverage protects you from lawsuits made due to a mistake or oversight in the performance of professional services. Commercial Auto Insurance covers vehicles owned by the business in the event of an auto accident. Business Interruption Insurance helps cover lost earnings and other expenses if there is a temporary shutdown of your business due to an insured situation. You could also consider a business owner’s package that bundles your most essential insurance coverage into one convenient, cost-effective policy. Group Benefits Insurance, financial protection for common health-related expenses for you and your employees. Business Creditor Insurance, to help cover insured outstanding balances on common business lending products.
Question: What are some of the warning signs of serious financial debt?
Answer:If you are lying awake at night worrying about money, you may be in a serious debt situation.
What are some of the warning signs of serious debt and financial risk? • The total amount of your debt increases each month. • You have not reduced your total debt for six consecutive months. • You have accumulated debt without a plan to be debt free. • You are unable to make routine minimum monthly payments on credit cards and loans. • You are at or over your limit on credit cards. • You skip paying some bills in order to pay others. • You are receiving phone calls and letters from collection and credit agencies. • You are making day-to-day purchases like groceries and movie tickets on credit cards because you do not have the cash to pay for them. • You write cheques that bounce. • You argue with your spouse or family about money or are afraid to talk to your spouse or family about money. • If you are experiencing just one of these stressors...
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