Ok, as weather goes this year has been weird and I guess this week will be no different.
But meteorological weather is in no way reflecting the financial weather we are all facing.
The world's smartest (well one hopes) leaders try as they might cannot seem to wrangle 7 billion people to behave in a way that makes the economy do what they want. Strange how that happens. When I put it that way is it so surprising?
So what is new on the home front?
Well first off the 20 somethings of today are continuing the trend of earning less than the generation before, and the gap is widening. The worst part is that older workers doing the same job, even accounting for experience, are getting paid WAY more than the younger workers. The reason is simple it is corporations and governments gradually pushing down wage expectations so that when older workers, who knew a better life when workers were scarcer and they could make a living wage, will not kick up a fuss and rock the boat (they still have more democratic power), but the younger workers will not know any better and overall wage costs will decline increasing profitability. It is a good business strategy and quite long term thinking for a change, I am just not entirely sure what the final social ramifications will be, but I am sure it will not be good.
So, now younger workers cannot buy new homes, what will that do to prices over time? Older people may not get the money out of their homes that they had hoped, unless they sell to overseas parties hiding money in Canada, so maybe their retirement is not as easy. The other thing I think the western world is waiting for is to see what the generational shift in wealth will do to pull them out of the hole they are digging. I think that will depend on how selfless parents are in terms of spending their hard earned money vs. sacrificing again to leave something to their children, the "ME" generation giving up things...? Still a tough call.
So the government has tightened mortgage rules, debt with solid underpinnings (relatively) instead of credit cards etc. But OOPS we forget TD, and other banks now have all your assets underwriting any debts you have, (read your fine print) so if you get into trouble with an "unsecured" line of credit or credit card, they might dip into your savings accounts to clean up your mess, it might not have been your plan, but it is theirs. I generally suggest keeping debt at one financial institution and assets at another to keep those two worlds from colliding, and maybe undermining your self management. Your call though. I keep reminding people banks are only your friends when they can make money from you, so be careful how you handle that relationship. There is a reason they give you a better rate when you give them more business. FINE PRINT.
The Bank of Canada held its overnight rate for a long time now, with no signs of change for some time. This is great news for variable rate holders. They are predicting rate increases, but no timelines yet. But the increases they are anticipating are not earth shattering, though it may shock young people who have only been borrowing since 2008.
Bond rates are going up so lenders are on the cusp of raising rates again. Not much, and they may come down again, but generally there are optimistic noises coming form economists which is not good news for borrowing rates.
The deals I post today may not hold tomorrow but more often than not I can get you something better than most people can find on their own.
All the best.
Wednesday, September 24, 2014
Thursday, September 4, 2014
Bank of Canada and rates hold steady
Greetings ALL
It is a new school year but the world has not yet decided that it is ready to do great things again. I cannot help but think that the West's reluctance to go to war again, while not a bad choice, because most wars don't solve problems, it does mean continued uncertainty on how to stop a massive ego on one front and "medieval mayhem" on the other. (Modern politics is far from simple.) Harper's reluctance to spend his vote getting pot of money supporting Canada's allies with increased military spending is either a good idea, or a bad one, depending on how big a view you take of all the events going on. As with anything big, history and the victors will decide the true value of these choices.
In the meantime, on the homefront it is still good news for borrowers. With a chance to get 2.79% 5 year fixed mortgage, the BoC announcement is reaffirming for home buyers. They have time.
Things are going as the Bank of Canada expected, economically speaking, which is why the target for the overnight rate is still sitting at 1%.
The Bank announced on Wednesday that, with the global economy performing largely as expected and Canadian inflation settling down again, there doesn't seem to be a need to increase interest rates-for now.
Stronger growth in the second quarter-due largely to surging exports-has brought the GDP almost exactly to the point the Bank projected in July. The housing market continues to perform stronger than expected, but so far it hasn't impacted inflation enough to warrant higher interest rates.
For now, risks contributing to the increase of inflation seem to be balanced, which is why the Bank ultimately decided to stand pat. But it's not making any promises going forward, however, as it says only time will tell what the global and Canadian economies will look like heading into the October 22 announcement.
If you're wondering how this announcement affects your specific situation-or if you have questions about variable mortgages, locking in or anything else mortgage-related—feel free to drop me a line. I'd love to chat! 416.486.1113
It is a new school year but the world has not yet decided that it is ready to do great things again. I cannot help but think that the West's reluctance to go to war again, while not a bad choice, because most wars don't solve problems, it does mean continued uncertainty on how to stop a massive ego on one front and "medieval mayhem" on the other. (Modern politics is far from simple.) Harper's reluctance to spend his vote getting pot of money supporting Canada's allies with increased military spending is either a good idea, or a bad one, depending on how big a view you take of all the events going on. As with anything big, history and the victors will decide the true value of these choices.
In the meantime, on the homefront it is still good news for borrowers. With a chance to get 2.79% 5 year fixed mortgage, the BoC announcement is reaffirming for home buyers. They have time.
Things are going as the Bank of Canada expected, economically speaking, which is why the target for the overnight rate is still sitting at 1%.
The Bank announced on Wednesday that, with the global economy performing largely as expected and Canadian inflation settling down again, there doesn't seem to be a need to increase interest rates-for now.
Stronger growth in the second quarter-due largely to surging exports-has brought the GDP almost exactly to the point the Bank projected in July. The housing market continues to perform stronger than expected, but so far it hasn't impacted inflation enough to warrant higher interest rates.
For now, risks contributing to the increase of inflation seem to be balanced, which is why the Bank ultimately decided to stand pat. But it's not making any promises going forward, however, as it says only time will tell what the global and Canadian economies will look like heading into the October 22 announcement.
If you're wondering how this announcement affects your specific situation-or if you have questions about variable mortgages, locking in or anything else mortgage-related—feel free to drop me a line. I'd love to chat! 416.486.1113
Monday, April 1, 2013
What Mortgage Brokers do - FAQ
What is a Canadian Mortgage Broker?
Canadian Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Why deal with a mortgage broker in Toronto?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.
Other than rates, why should I use a mortgage broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do mortgage brokers find the best rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a mortgage broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Do mortgage brokers only do residential mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
How do mortgage brokers get better deals than many banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds.
In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.
Can I still go through my bank with my mortgage broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better mortgage rate than you could get on your own.
Canadian Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Why deal with a mortgage broker in Toronto?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.
Other than rates, why should I use a mortgage broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do mortgage brokers find the best rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a mortgage broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Do mortgage brokers only do residential mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
How do mortgage brokers get better deals than many banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds.
In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.
Can I still go through my bank with my mortgage broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better mortgage rate than you could get on your own.
Monday, March 25, 2013
Buying a Place for Your Student
Granted the ability to buy a place for your children as they head off to College or University is not for everyone, but for some people it is a great way to launch their kids and make sure they do not come back.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
Monday, March 18, 2013
More People to Please when buying a home?
How to juggle family opinion when buying your first home
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
Friday, December 7, 2012
Shortish Economic Summary
It has been a truly amazing week for economic related news in
Canada. We have the head of Bank of Canada heading off to more
challenging pastures of old the world, England. One of his parting
gifts was a hold of the bank rate which means that variable rate loans
will hold tight for the time being and overall mortgage rates remain as
low as ever.
The Bank has indicated that our economic activity is weak with expansion driven by consumption and business investment. It seems we, households, continue to increase our debt burden. They are predicting a return to 2% inflation, their target, over the next 12 months. If that happens then they will start to increase rates, but there is always the caveat of what might be going on int he rest of the world and our personal debt levels, now sitting at 163% of disposable income. When rates do go up I think there will be a lot of people in trouble. If people can just afford their debts at current rates, tack on 2% and see how affordable the choices become. I am strongly advising people to get their debts to manageable levels over the next 5 years on the assumption that their mortgage rates will be 2% or more higher. If I am wrong about an increase, then good they are ahead. If I am right then they may not loose sleep when the day comes to reset their mortgage. If people do not get debt under control it will affect spending down the road and could drag out the downturn.
The tighter mortgage rules and the higher cost of housing in general is having the expected effect of slowing the markets and the recent reports indicate a slide in sales and a softening in prices. I like that TREB blames the mortgage rules, but really if people are not getting big pay increases and unemployment, while improved, is still quite high in Ontario, even without the mortgage rules there is going to be a point at which people have bought what they can afford and can afford to go no higher. The shift from 416 to 905 is not just about land transfer tax it is about things like a difference in detached housing prices of $184,735 and I bet that amount buys more yard and space. I would love to see comparable figures that included those elements. So for almost $200K people move a little further out. Surprise? No.
So in some cases the bidding wars are past. The condo market however seems to have taken the biggest hit on the resale side with the number of transactions down by 25.5% with the biggest declines in prices being in Toronto. Otherwise the overall seems to be fairly stable.
I think relative stability is probably good for a while then prices can better match overall economic conditions and maybe the debt burden to get into the market can be more proportional to what is affordable over the long term.
The good news is that Stats Can has come out with some nice news for the holidays with improved job numbers with 59,300 new jobs in November. YEAHHHH!!! Economists varied widely in their predictions, i.e., there were a lot of bad guesses, but it does help in the short term. The "BUT" in this one is that there have already been a lot of announcements of pending layoffs and big wigs are not willing to call the good news a trend. They are popping the balloon early this time so we do not get to happy about it. Frankly, whatever happens the new jobs has bought families time and peace of mind and that has got to be good for consumer confidence.
The Bank has indicated that our economic activity is weak with expansion driven by consumption and business investment. It seems we, households, continue to increase our debt burden. They are predicting a return to 2% inflation, their target, over the next 12 months. If that happens then they will start to increase rates, but there is always the caveat of what might be going on int he rest of the world and our personal debt levels, now sitting at 163% of disposable income. When rates do go up I think there will be a lot of people in trouble. If people can just afford their debts at current rates, tack on 2% and see how affordable the choices become. I am strongly advising people to get their debts to manageable levels over the next 5 years on the assumption that their mortgage rates will be 2% or more higher. If I am wrong about an increase, then good they are ahead. If I am right then they may not loose sleep when the day comes to reset their mortgage. If people do not get debt under control it will affect spending down the road and could drag out the downturn.
The tighter mortgage rules and the higher cost of housing in general is having the expected effect of slowing the markets and the recent reports indicate a slide in sales and a softening in prices. I like that TREB blames the mortgage rules, but really if people are not getting big pay increases and unemployment, while improved, is still quite high in Ontario, even without the mortgage rules there is going to be a point at which people have bought what they can afford and can afford to go no higher. The shift from 416 to 905 is not just about land transfer tax it is about things like a difference in detached housing prices of $184,735 and I bet that amount buys more yard and space. I would love to see comparable figures that included those elements. So for almost $200K people move a little further out. Surprise? No.
So in some cases the bidding wars are past. The condo market however seems to have taken the biggest hit on the resale side with the number of transactions down by 25.5% with the biggest declines in prices being in Toronto. Otherwise the overall seems to be fairly stable.
I think relative stability is probably good for a while then prices can better match overall economic conditions and maybe the debt burden to get into the market can be more proportional to what is affordable over the long term.
The good news is that Stats Can has come out with some nice news for the holidays with improved job numbers with 59,300 new jobs in November. YEAHHHH!!! Economists varied widely in their predictions, i.e., there were a lot of bad guesses, but it does help in the short term. The "BUT" in this one is that there have already been a lot of announcements of pending layoffs and big wigs are not willing to call the good news a trend. They are popping the balloon early this time so we do not get to happy about it. Frankly, whatever happens the new jobs has bought families time and peace of mind and that has got to be good for consumer confidence.
Why Use A Mortgage Broker/ Agent?
What is a Canadian Mortgage Broker?
Canadian Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Why deal with a mortgage broker in Toronto?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.
Other than rates, why should I use a mortgage broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do mortgage brokers find the best rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a Canada mortgage broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Do Canada mortgage brokers only do residential mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
How do Canada mortgage brokers get better deals than many banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds.
In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.
Can I still go through my bank with my mortgage broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better mortgage rate than you could get on your own.
Canadian Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Why deal with a mortgage broker in Toronto?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.
Other than rates, why should I use a mortgage broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do mortgage brokers find the best rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a Canada mortgage broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Do Canada mortgage brokers only do residential mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
How do Canada mortgage brokers get better deals than many banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds.
In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.
Can I still go through my bank with my mortgage broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better mortgage rate than you could get on your own.
Subscribe to:
Posts (Atom)