Many Canadians struggle with financial planning for their future. But as we must all retire at some point in our lives and slow down, it’s important to have a plan that allows for a comfortable lifestyle at an older age. 

As a mortgage professional, I always emphasize the importance of not only becoming mortgage free while leveraging real estate to one's financial advantage but also saving sensibly. 

I recently had an opportunity to interview a very well-known financial planner who has worked with insurance companies such as Sun Life Financial and currently Assante Wealth Management, about her take on financial stability. 

Meet Iryne Thian.
 
 
Q. Can you tell us a little bit about yourself? When did you start? How long have you been in the business? What associations are you apart of?
 
A. My name is Iryne Thian, and I am a certified financial planner and wealth advisor. I have been in the financial industry for over 20 years. I manage two things: money and risk.  I assist people in making clear financial choices for investments and insurance.  My clients don’t hire me to make them rich — they hire me to make sure they are never poor.   Most of my clients today come from referrals of satisfied clients. My areas of specialty involve planning for individuals, families and small businesses.     
     
As a member of The Financial Advisor Association of Canada (Advocis) and Financial Planners Standards Council, I have earned several professional designations including Certified Financial Planner (CFP) in 2003, Elder Planning Counselor (EPC) in 2005, Certified Health Insurance Specialist (CHS) in 2011, Chartered Life Underwriter (CLU) in 2014 and Certified Professional Consultant on Aging (CPCA) in 2018.  Since 2005, I have been a qualifying member of the Million Dollar Round Table (MDRT), an international association representing the world’s top sales professionals in the life insurance-based, financial services industry.
 
Q. Where would you say people go wrong with most with their finances? What are they investing in that they shouldn't be? Where could they be getting more returns?
 
A.    One of the biggest challenges today I find is the lack of financial literacy a   and the plethora of options and products out there. People often find it difficult to navigate through all the financial and tax considerations to arrive at what is best for their situation. That’s precisely why it’s important to seek a trusted professional to help assess your current state and needs, along with your future goals, to guide you through this process.
 
As a financial planner, my practice is to: 

1. First Identify my clients goals, dreams and challenges.
2. Help them understand the financial implications of the life decisions that they make.
3. Educate on the products and services needed to achieve their goals.
4. Work out a personalized plan and put them in place.
5. Monitor as time goes by. 
 
No one can promise future investment returns.  What I can offer to my clients is the peace of mind in regards to their (and their family's) financial well being.
 
Q. In your opinion, what is the biggest misconception people have about investing and financial planning? 

A. While investing can impact the success of your financial plan, and sometimes dramatically, it is not the sole determinant. Investing is only one of the many key components to a solid financial plan.  

Investment planning is about creating an investment plan and sticking to it.  An investment advisor will factor in the client’s unique risk profile in recommending a diversified portfolio aimed at maximizing returns given their risk tolerance. An investment advisor can help their client stay the course and/or make necessary adjustments during market volatility.
 
Financial planning involves a holistic approach that takes into consideration every aspect of a client’s financial life. Other than investments, a comprehensive financial plan also involves budgeting, insurance, taxes, estate and retirement planning etc. By taking all these into account, you will be able to create effective strategies for meeting your short and long-term financial goals.
 
"I describe myself as a financial pilot. When I first meet clients, I often find that they are at the wrong airport or about to get on the wrong aircraft. My job is to help the financial traveler arrive at their desired destination safely, on time and with everything they could possibly need - including a parachute. After all, there can be turbulence."
 
Q. Where do you think people struggle in terms of money in the bank/savings...?

A. Revisiting my comment about the general lack of financial education, many risk-averse people believe that “saving” is just regularly setting aside money in their bank’s saving account or spending less money. What they don’t realize is that in our low interest rate environment, the money in our bank accounts are shrinking in value – also known as Inflation risk or purchasing power risk. What you used to buy with $10 you can no longer buy with the same $10 because its shrunk in value or purchasing power. It’s important to be informed of our options based on our unique situations.    

Q. What advice would you give to first time home buyers and people who are already homeowners?
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 A. Be aware of your financial situation and properly assess the impact that a home purchase or any other big purchases would have on you and your family’s financial well-being. Every client and their situation is unique so it is hard for me to give generalized advice. 

I consider Iryne to be a trusted source for financial planning and I would not hesitate to refer her to anyone looking to create a successful investment portfolio. 

Please call my office for more information.
Sarah A. Colucci
Mortgage Agent Lic. M14000929 
Mortgage Edge, Broker 10680 

In partnership with Iryne Thian, Certified Financial Planner. 
 
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The Shared Equity Program targets those who are likely to know very little about real estate, equity and mortgages.


Not many astute homeowners feel 'warm and fuzzy' about sharing their property ownership with anyone let alone the Government of Canada. First-time buyers may not realize that's exactly what CMHC's shared equity program is - it's sharing ownership of property and the profit/potential loss of property value with the Government in addition to having to pay back its second mortgage within twenty-five years.

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Although this program can be enticing for new buyers because it boasts help with affordability, is interest-free and doesn't have to be repaid for a long time, it hasn't been very helpful in the long run as we have seen in other countries where it artificially drove prices up and created problems for homeowners who decided to later sell and/or refinance. And like any second mortgage, it will likely come with plenty of red tape, which can put homeowners in a bind.

By targeting the group of the home buyers who know the least about real estate, equity and mortgages, first-time buyers should be made aware of what this program can mean for them now and in the future.

It's no secret that first time home buyers tend to refinance their mortgage or sell their homes within the first five years of purchasing. Naturally, as their families get bigger, jobs change and lifestyles demand more, it's not unusual for them to either perform a major renovation, debt consolidation or move into a larger home. So it's likely this second mortgage from the Government will have to be repaid much sooner than twenty-five years since refinancing or selling with trigger a mandatory repayment of the loan.

And since the Government will expect their share of the profit, even in a refinance situation, this can hamper plans and dimish gains. So, as you can see, although the program boasts itself as interest-free, it clearly still does come with a price tag when the Government is expecting to share in your profits!

Furthermore, the accessibility to interest-free second mortgages may very well drive up property prices making homeownership all the more unattainable for the cohort of purchasers who need it the most. So think about it. While a purchaser may save one to two hundred dollars on their mortgage payment, they can also expose themselves to red tape and turmoil in the future along with giving away more than they bargained for!

I'm Sarah Colucci from Mortgages by Sarah! Let me know your thoughts! And remember, if you have questions at any time, I'm here to help!
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Sarah A. Colucci
Sr. Mortgage Agent
Mortgage Edge, Broker 10680
Direct: (647) 773-4849
www.coluccimortgages.com

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New Government rules have made qualifying for a mortgage challenging by reducing the maximum mortgage loan amount to five times a person’s income instead of the original seven. 

 Accordingly, after completing a thorough mortgage pre-approval, borrowers may learn they don’t qualify for the mortgage amount they want and wonder whether or not they can use a co-signor to help strengthen their application to obtain a larger mortgage loan.
 
As a side note, the alternative to using a co-signor is waiting until mortgage rules change, a higher income is earned or property prices decrease. All of these situations are certainly unforeseeable which could result in a very long wait for the desired mortgage approval a borrower is seeking. 
 
How can a co-signor help you?
 
If you’re someone who recently started a new job or a business and don’t meet the necessary income requirements, you can use a co-signor or guarantor to add income to the application. In the same way, you can also use a co-signor who has good credit if you have less than desirable or bruised credit.
 
If you’re on the edge of qualifying, it may be beneficial to consult a co-signor like a parent, sibling or other relatives. 
 
There Are Two Ways To Co-Sign A Mortgage
 

1. The first way involves a co-signor to take title to the property. The percentage of ownership can be determined by consulting a real estate lawyer about the best strategy. For example, a co-signor, like a parent, for example, may decide to only take a 1% share while their child will maintain a 99% share of the property both as tenants in common. Should the main applicant default on their mortgage loan, the lender can equally pursue the co-signor for the repayment of the loan. 
2. The second way a co-signor can be used is as a guarantor only. A guarantor uses their income or credit to strengthen the mortgage application but remains off the title to the property. In the event the borrower defaults, the guarantor is still on the hook for the repayment of the loan. Guarantors are usually required to have substantial assets like other property and liquid savings. ​

What Co-Signors Need To Know

Most co-signors of mortgage loans are parents and immediate relatives, and so there’s an innate need to help with mortgage financing. However, it’s equally important to consult a lawyer and mortgage professional such as myself about what it means to co-sign in terms of liability to the lender as well as overall financial health. For example, some parents may need flexibility within their credit tolerance risk to access more loans in the future to help other children purchase property or obtain a student or car loan. If they are tied to another mortgage loan this may prohibit them from being able to co-sign or guarantee other loans or even access more loans for themselves. 

Co-Signors Can Be A Very Short Term Solution

Most buyers take a five-year mortgage loan because of its security and lower interest rate, but that doesn’t mean that a co-signor has to be in the co-signing game this long. I usually coach my clients to get themselves into a position where they can apply to their lender to simply remove the co-signor once they are able to support the loan by themselves. This can be when their credit is within lender requirements or they are earning more income. 

If approved, their lender will then release them from the mortgage debt obligation. 
 
Are you currently looking for a property? Need a pre-approval or want to double-check your pre-approved amount? Call me today for free, without commitment, credit consultation.

Call us directly at (647) 773-4849
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