20 Jul

IMAGINE IF THERE WAS NO COMPETITION…

General

Posted by: Ron Price

 

…And you could only get a mortgage through ‘THE BIG BANKS’. Boy would things be different. Would the Banks charge you whatever the heck they wanted to? Absolutely they would!

You know what? We keep the banks on their toes. Without the mortgage brokerage industry, people would pay much much more than they do today, and many would not qualify for a mortgage at all. The banks have 75 per cent of the mortgage market, and we have 25 per cent. Most Canadians still do not understand the true value of our services, and have little idea what they are getting into when you get a bank mortgage any more.

The public at large continues to be ‘The Great Unwashed’ a term used many decades ago to describe those who were ignorant, and who believed in what their mothers and fathers before them did and still tell them to do. Most still blindly ‘flock’ to the bank first, and only when they have a problem, do they come to us. It’s a good thing there is another choice.

Don’t get us wrong, there are many bank personnel who are great people. But they are skillfully trained to do what’s best for the bank, and extract as much as they can from you, so if you think your bank is looking after your best interests, think again. A mortgage (usually the biggest investment of a lifetime)  is a lot more than about rate. Yes ‘rate’ is very important, but the terms of a mortgage, and the advice you receive are equally so.

You know what else? The big banks are winning the game. Anyone who takes a bank collateral mortgage is letting the bank have almost complete control over their finances, and will ‘absolutely’ end up paying more. Does it sound right to you that a mortgage is registered well above the price/value of your home, that your unsecured credit cards effectively become ‘secured’, and the bank can increase the rate at their discretion? That’s only the tip of the iceberg folks.

We look out for your best interests in an unbiased way, and we put you in mortgage products that are best for you. We educate, advise, strategize and find solutions every day that save Canadians thousands upon thousands of dollars, and we help you achieve financial well-being and financial security.

We are passionate professionals who care about you, and who simply want to get the truth out because you should be aware about what is really going on.

 

 

11 Jul

TODAY’S MARKET REQUIRES NEW STRATEGIES

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Posted by: Ron Price

 

With the new maximum 25 year amortization,  and refinances now restricted to 80 per cent, mortgage financing has become both more difficult and expensive* with higher payments, and more income needed. The above applies to high ratio mortgages only. Note we still have 35 year amortizations for conventional mortgages. The silver lining is that although payments are now higher, the interest is not and you will be paying down your mortgage sooner, and building equity faster.

On the weekend we drove the entire Fergus/Elora market and it was ‘spooky’ how few For Sale signs we saw. Many streets had ‘no’ homes for sale at all, and it just felt weird. We checked out 3 listings, 2 MLS and 1 Property Guy private for sale and guess what? They were all sold, just waiting to firm up the financing. Inventory is way down. People have been spooked by all the negative press and have hunkered down. We just hope that if you are one of them,  you have taken yourself to financial safety.

Folks if you are buying, it has never been more important to make sure not only that you qualify but how much you qualify for. If you go to a bank, unfortunately because they only do a superficial check, the pre-approval may be of little value. If you come to us, you will receive a ‘GUARANTEED’ pre-approval you can ‘bank’ on …LOL…and we likely will not finance you with a bank because of the collateral mortgage products they have…look out.

We had a couple buying a home last week who planned to get the smallest mortgage they could by putting down the entire inheritance they received. He works in the auto industry and she was self employed. This spelled ‘Caution’ to us from an employment standpoint, so we suggested they take a comfortable mortgage and bank and invest the rest. We convinced them to keep reserve cash in the event of another down turn and potential job loss.

Have you planned ahead for a possible downturn or a drop in house prices? If not we suggest you do. Leveraging your mortgage to generate a financial ‘safety’ cushion at today’s rock bottom rates…(we now have a 3.89% ten year fixed rate mortgage…unbelievable)…offers potentially huge savings of tens of thousands of dollars over the next decade, and it will keep your payments low, low, low.

Call us today to make an appointment for a mortgage (financial) check up, and learn what options and strategies are available to you. We have many more than the banks do.

 

6 Jul

HOW TO SAVE $70,000 IN 5 YEARS

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Posted by: Ron Price

 

Ross and Marie bought a home 4 years ago with zero down and an interest rate of 5.79%. They have two young kids, a car loan and other debts of around $25,000. that they were having trouble paying down, and were paying mostly interest.

They approached us two years ago to see if we could help. Because the value of the house was not sufficient to enable a refinance and the penalty was considerable, they had to wait.

This time the value came in higher and the penalty was modest enabling us to get them a new 5 year fixed rate mortgage at 3.14% and to pay off all their consumer debts which alone were costing them $746 a month. Since the new mortgage payment was only $35/mth higher and they no longer had any debt payments, they will now save a net $42,660 over the next years. Not only that but they will pay less mortgage interest because of the great rate we got them. We also suggested that they consider taking a 25 year amortization which they could readily afford, saving them 11 more years in mortgage payments. The total savings is in excess of $70,000 over the next 5 years.

They were absolutely shocked at how much our new mortgage was going to save them and Ross said “You just saved me two years wages in the next 5 years, I can’t believe it.” Not only that but their  mortgage balance is going to be that much less too, at the end of the term.

Folks the above ‘success story’ is based on a small $125,000 mortgage. Just imagine the savings with a bigger mortgage. The average mortgage we do is over $225,000. If you are carrying ANY consumer debt, shed it now. Call us today for a mortgage checkup, and please please avoid getting into the new bank Collateral Mortgage product unless you are fully aware of all the pros and cons. We deal with over 40 lenders (including the banks) but we try not put anyone into one of these mortgages.  

Call us today for an appointment to learn more. We are open from 8 a.m. to 8 p.m. weekdays, and Saturday from 9 to 5 to serve you.