RENEWING YOUR MORTGAGE

I was contacted yesterday by a new potential client, who had just received her renewal letter from her current lender.  She was being offered a 5-year fixed at 2.99%.  Being aware that current rates are not that high, she reached out for a second opinion to see if I could do better!

She had great income, beacon score was over 700 and her debt ratios were in line for a lending rates, so why was her current lender offering her a crappy rate? Continue reading

Choices & Rights of Borrower

As a mortgage agent, I not only arrange first mortgages but in many cases second mortgages and in very rare cases third mortgages as well. I can go to non-bank lenders or private individuals who want to lend their own funds. The difference is in the risk that is being undertaken.

As mortgage agents and brokers, it is our job to prove that the borrower can manage the interest only payments and that they have a low risk of defaulting on the loan. Continue reading

magician

I love brokering mortgages but I get frustrated when clients think that we are magicians and can make their deal happen just like that.

Unfortunately the lending climate has changed in Canada and no longer can we get a deal done with limited paperwork and a hand-shake. I think the problem is that while we as brokers have had to adapt to the new guidelines, our clients are unfortunately still in the dark and thus when we request paperwork (NOA, T1, T4, Financial statements, etc) it is very hard to get it from the client as they simply don’t understand the need for it or accept that it is the lender’s requesting it. When we try to explain or educate our clients, they are resistant as they were able to get it done when they bought their house 2-3 years ago, so how can it be so different now? Continue reading

Syndicated Mortgages Vs. Resp

A few years back, my husband and I adopted a little girl.  She was three at the time and has various health issues.  She is now eight and doing well, however my constant worry as a parent is for her financial future.  With her present issues, we are unsure of whether she will be able to work and support herself financially.

When we adopted her, we put in place a RESP and looking back I’m glad I stopped contributing when I did as I could never save enough for her future with the ridiculous interest rates we were getting not to mention the fees.

This last year has been an eye-opener and after doing the math I can definitely be assured that her future will be secure, as I have established a plan by investing in Syndicated Mortgages at a fixed rate of 8% per year.  On top of that, after the 5-year term, there is the possibility of receiving developer profits.  The average per year usually turns out to be 10.25% and the best part is there are no fees! Continue reading

fixed-or-variable

At present thousands of homeowners across Canada are eyeing their options with more than a little trepidation. The majority of Canadians after all, are risk averse and when it comes to our mortgage options many of us have traditionally chosen fixed rather than variable interest rates, in order to allow us to avoid sudden hikes in the Canadian Prime. In fact, even just the idea of being stuck on a variable rate after a hike in the prime leaves many of us on edge. Yes, we can lock the rate in if we think the prime is getting too high, but who is to say we’ll manage to do that right at the right moment? Rate hikes after all, can leave homeowners not just paying less off their principle, but them facing paying more interest over the long run.

All that said, recent studies have demonstrated that historically at least, homeowners on variable rates have actually saved more in the long term when compared to more risk averse homeowners opting for locked in rates. These being the case, between 2008 and the present, variable rate mortgage options have experienced something of resurgence in popularity. Moreover, those who have been part of this resurgence have made significant savings. The Canadian prime has consistently fallen since 2008 in tandem with Central Bank instigated economic recovery measures. This being the case, those who elected for fixed rate mortgages back in the 2000-2008 (supposed) boom years, have been left feeling a little cheated to say the least. Continue reading

Which Payment Frequency Is The Best For You?

Buying your first home can be a daunting process including figuring out the right mortgage and options for you. One part of this is knowing about what Payment Frequency to select. Here let’s talk about its definition and what it really means, the options available and how do you choose the right one for you?

Definition: Payments consisting of both a principal and an interest component, paid on a regular basis during the term of the mortgage. Refers to how often and when you can make these payments. Continue reading

investing-for-financial-freedom

With the paltry returns we are seeing these days, Canadians are seeking other viable ways to get healthy returns through investing.

Some like to invest in properties – preferring a bricks and mortgage asset, while others prefer to look at their statements and see their money grow without dealing with tenants and toilets (so to speak!).

As a mortgage agent and real estate investor I like both, but lately with property prices rising and market rents not rising in relation, cash flow is not as healthy as it once was so I went on the search for a different product and liked it so much that I decided I would go on a mission to sharing what I learned.

Don’t get me wrong, I still like to have my bricks and mortar investments but at the end of the day, I prefer to be a backseat investor over dealing with tenants and toilets – at least for now! Continue reading

building-wealth-syndicated-mortgages

You’ve worked hard all your life. Like most people, you’ve provided for yourself and your loved ones by making smart career choices and financial decisions. Moreover, just like everyone else you want to use the equity which you’ve built up in your home over the years to help better shore up you and your loved ones financial future. However, since 2008, you’ve learned to eye even the best-advertised investment strategies with more than a little scepticism, and rightly so.

Smart Canadians are however, still investing. People just like you are thinking outside of the traditional box of 40% stock, 60% bond financial portfolios, and they’re investing instead in reliable 8% per annum fixed interest earnings in syndicate mortgage options. Continue reading

unleashing-home-equity

Okay, so in my last post I talked a little about different ways to build equity, but what’s the best use for equity, which you might have already?

Well, equity is an asset, one that’s yours to do whatever you want with. Maybe you have outstanding debts, maybe you are thinking about renovating or making your money work for you for a change by purchasing a second investment property or even better by investing your money in second mortgages.

First thing’s first though. In order to unleash any amount of the equity, which you might have in your home, you will need a licensed mortgage agent (like myself), in order to help you find out how much equity you actually have available. Together, we can then calculate how much of your equity is actually accessible to you. (i.e. how much of that equity you can afford to service if you remove it from your property). Remember at any given time, 20% is unaccessible, therefore the most you can access is 80% of your equity. Continue reading