28 Aug

DON’T BE A MORTGAGE ‘ZOMBIE’

General

Posted by: Ron Price

 

According to ‘Moolala’ author Bruce Sellery who was recently on the ‘Lang & O’Leary Exchange’ TV program, “Going back to your bank for a mortgage, primarily because you’ve been a customer ‘Forever’ is “Zombie Behaviour”. “A lot of people would say it’s loyalty. I would say it’s lazy” he added. Sellery offered his guidance on picking your next mortgage originator and said “Mortgage Brokers work for you, versus the bank mortgage specialist who works for the bank and offers only bank products and rates.”

“You can be loyal to a restaurant you love because they treat you right, but don’t be loyal to your bank because you like the person there” or you feel you will get a better deal because you have been a good customer. He went on to say “It can make a profound difference in the rate you pay.”

Moreover Sellery knows that ‘Bank reps/specialists rarely highlight their product’s negatives vis a vis the competition, because they have to push ‘one brand’ (their banks’ brand) to make a living’. Reactions from our industry on ‘Canada Mortgage Trends’ web site, echoed Sellery. One said “Is there anyone that still doesn’t know NOT to take a bank’s first offer? The sales games banks play are straight out of a car dealer’s playbook.”

Even if you negotiate with your bank, how do you know (when you are not an expert) if there is a better rate out there.  Folks that’s where we come in. We give you the best rate, PERIOD, end of story, the first time every time AND at no cost to you OAC, on approved credit.

Equally as important, is for you to get ‘Objective, Unbiased Advice’ that is in your best interests that will save you thousands, sometimes tens of thousands of dollars. This is where our service becomes invaluable in addition to rate.

We had a new client come in the other day. She and her husband split up and she told us that her bank would not let her out of a loan that they both co-signed for. The bank kept renewing her mortgage every six months at a high rate (above 6%) despite the fact she never missed a payment and despite the fact that they knew she has worked for minimum wage for years and was struggling. The bank did not tell her that she needed to improve her credit score so she could get a better rate. So there she was year after year paying mostly interest and not reducing principal. Fortunately she had good equity in her house, so we are getting her a short term second mortgage to pay out the loan and her first mortgage reducing her total monthly outlay by $500/mth and we are coaching her improve her credit as quickly as possible, so she can qualify for a low rate prime institutional mortgage.

Why didn’t the bank come up with a similar solution or at the very least give her a much lower rate to her get ahead. They know she earns minimum wage, yet they kept taking as much as they could from her. The answer is that they just do not care, and bank reps are training to maximize bank profits.

So should there really be any question who the best mortgage source is? I often scratch my head when I think that if Canadians really understood the benefits of using a top notch mortgage broker versus the banks, that our market share would not be at 25%, it would be at 75% which is the market share the banks still enjoy. People have the power and you can change this dynamic in your favour.

28 Aug

RANKING ‘BLOWS US AWAY’

General

Posted by: Ron Price

 

The Canadian Mortgage Professional Magazine (CMP) recently ranked us as one of Canada’s top Mortgage Professionals on the CMP top 75 Brokers list and we want to share this fabulous news with our valued clients. In fact we placed 49th in overall mortgage volume when compared to all other Canadian Mortgage Professionals in our industry. This ranking includes all cities and metropolitan areas with considerably larger mortgages. Since there are over 21,500 mortgage broker/agents from coast to coast, our standing literally ‘Blows Us Away’.

We also placed 10th on the Small Markets Top 20 List, which celebrates Mortgage Professionals who work in markets where the average home price is $290,000 or less.

Of course production/volume is only one measure of success. Two other important factors are Customer Satisfaction and Loyalty which are more difficult to measure. However all three do in fact go hand in hand, and we take great pride in knowing our business is growing based to a large extent on ‘Referrals’ and ‘Repeat’ business from satisfied clients, many of whom have become friends.

Our sincere and heartfelt thank you goes out to all who have referred loved ones, friends and acquaintances to us for their mortgage needs over the years. We greatly appreciate your patronage and thoughtfulness.

For those of you whose mortgage is currently with a bank, we invite you to check us out and call us for your next mortgage need. Aside from a level of service that will make you smile, we have so many more products and solutions than a single bank can give you and our unbiased professional advice, will be invaluable to you. 

Call ‘The Price Team’ Dominion Lending Centres, Fergus, Elora, Rockwood to Mount Forest today. We look forward to meeting you in the near future.

 

 

 

 

 

14 Aug

WHEN YOUR BANK SAYS ‘YES’!…

General

Posted by: Ron Price

 

…You may still end up getting a ‘NO’.  Some things never change. People continue to come to us after they get declined. It’s the same old story. Initially they are told ‘No Problem’ only to end up disappointed. Why does this happen so often? Because a ‘verbal’ bank approval is just that, verbal.  It has no ‘teeth’. Unfortunately no credit or employment/income check is done, initially. The customer then proceeds perhaps to purchase a home and put their home up for sale, or advise creditors they will be paid out, or make arrangements to do a major renovation etc. And often they have committed to other parties only to end up embarrassed that they cannot go ahead.

Folks, for almost 9 years now, we have chronicled a multitude of our new client’s experiences at their bank.  Our business has grown based on ‘Referrals’ from satisfied clients, many of whom have become friends. They know we care about them, and they learn that our ‘Word’ is our ‘Bond’.

When we tell you, that you are approved, we guarantee it. Our clients realize that we have many more lenders, mortgage products and solutions than the banks. So when they refer a son or daughter, a friend or neighbour, they tell them to come to us first.

We do not offer ‘Posted’ rates as the banks do, to give you a big discount, only to end up actually not giving you the lowest rate (to make more profit) that they hope you will be satisfied with. We offer you the best rate from the ‘Get Go’.

We also protect you in so many ways.  We make sure that we put you in a mortgage product that is both suitable for your needs and flexible as well, meaning you can get out of it if necessary with the smallest penalty possible. Did you know that the main reason the banks use ‘Posted’ rates? So they can charge you a maximum penalty based on the difference between ‘Posted’ and your discounted rate. Our ‘non-bank’ lenders only charge the difference between the discounted rate you received and the current discounted rate at the time of change, for the balance of term.

In addition, if you get a bank mortgage today, it is likely a ‘Collateral’ mortgage which as we have said before, leaves you with very limited options (to put it mildly) in future.

So ask yourself this question. Why would I go to the bank first before I come to you? When you do a mortgage through us, you lose no banking privileges. They are still happy to maintain your bank accounts, credit card accounts etc. When people ask us why they should try our services, we simply say ‘Why Wouldn’t You’ and of course we go on to give many examples. This is not arrogance. It is confidence, and it is the truth. There are many many more advantages and benefits if obtaining a mortgage from ‘The Price Team’.

For your next mortgage needs, please call us first. You’ll be so glad you did.

 

14 Aug

TIME FOR A REALITY CHECK FOLKS

General

Posted by: Ron Price

 

Just imagine if you could only get a mortgage through ‘THE BIG BANKS’ and they had no competition from the mortgage brokerage industry. An industry that looks out for your best interests.

The Banks could charge you whatever the heck they wanted to, wouldn’t they? Of course they would.

You know what? We keep the banks on their toes. But you know what else? They are winning the game.

Yup, they have 75 per cent of the mortgage market, and we have 25 per cent. We have done well, so far.

Except for one thing. The Canadian consumer still does not understand or realize the value of our services. And they/you have no clue what you 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 believed in what their mothers and fathers before them told them to do.

Well times have changed, and if you think your bank is looking after your best interests, well think again

Some may see us as out spoken, but in reality we are passionate professionals who simply want to get the ‘Truth’ out.

There are many bank personelle who aretgreat people who do not realize that they are working for an intstitution…

 

 

 

14 Aug

SAM & MEL ALMOST LOST…

General

Posted by: Ron Price

 

…Their new home. Like many others before them, Sam and Mel went to their bank to get pre-approved for a mortgage to buy a new house. The bank told them they were good to purchase for up to $350,000., quoted them a rate and they began their search for a new home.

They spent considerable time with their realtor looking at many homes over approximately two months and finally found one that matched their needs. Once the offer was accepted, they went back to their bank that, by the way, they had been customers with for over 15 years and knew the mortgage officer very well from a previous home purchase.  They submitted the offer of $349,000. and assumed they would receive a quick approval.

The bank did not respond for almost a week and they began to worry so they called to ask about the delay. To their horror, they were told that they had been declined for the mortgage. The reason stated was ‘Mel’s credit was unacceptable’. Apparently as a result of losing her job over two years ago, some of her credit card payments were missed and noted as R3’s, 60 days overdue.  The cards had been current for some time but the bank decided she was not credit worthy despite having a good mortgage repayment history with this bank. They were in shock and called their realtor with the bad news.

The realtor suggested they come to us. We got them approved within 24 hours and at a rate over one half per cent below the bank’s offer. They were fuming at the bank at the embarrassment caused them. Their realtor asked them initially if they had been pre-approved and they told her they had been.

You see folks, the banks actually do not do mortgage pre-approvals contrary to what most people think. What they do is a ‘prequalification’ which is simply a calculation based on income, and that’s it. There is no credit check.

Our pre-approvals are much more thorough and are based not just on ‘stated’ income but ‘proof’ of employment and income. We also review your credit history to make sure it is acceptable and act accordingly. We then proceed to book a mortgage through one of our over 40 lenders, assuring you of a mortgage and a guaranteed rate. When we give our pre-approval in writing, it is only conditional on one thing; the real estate being acceptable. You are fully protected, and there will be no nasty surprises.

When you buy your next home, make sure you call The Price Team/DLC for a mortgage pre-approval you can count on.