31 May

TIME FOR BANKS TO BE HELD ACCOUNTABLE

Bank Industry News

Posted by: Tracy Price

An article in The Financial Post Saturday May 28th entitled, “THE FIXERS”, referred to the manipulation of the gold market worth trillions of dollars per year where bankers collude and conspire to manipulate the price of gold stock before they place buy and sell orders designed to maximize profit. Folks, we need to wake up and understand that as Canadians we need to stop living up to our stereotype as mild mannered, polite, law abiding, and naïve citizens who continue to put trust in our banks. We are the envy of much of the world, but more and more we get the short end of the stick. We are being taken advantage of in almost every way by our big powerful, self serving banks who too many of us continue to put on a pedestal and with blind faith continue to believe that they are good and to be respected.

Banks Profits Continue to Increase, Canadians Continue to Struggle

Let’s face it. The banks represent an ‘oligopoly’ which by definition is a small group with like interests who band together for maximum results. Canadians are being taken advantage of to the nth degree as the banks have acquired a permanent hunger for ever increasing – record setting – profits, year after year.  This is true with investing, lending and banking in general. It has gone too far and nothing is being done about it. Our federal government has no resolve in this matter.

What Can We Canadians Do to Help Our Financial Well-Being?

It would appear that class action lawsuits are the only thing that can work as a tool to force the banks to behave more responsibly and within limits that are just and fair. Three areas that should be brought to action by us Canadians and that will make a large impact to our financial well-being are: ‘Collateral Mortgages’ which we continue to warn about; ‘Mortgage Penalties’ which have become unconscionable; and ‘Life Insurance’ which is little more than a scam, all these are documented by CBC Marketplace. It takes awareness and anger for that matter, to muster up the energy to look for a resolution. Unfortunately, at times the only resolution is a class action lawsuit, and it all starts with a petition against such wrongdoing.

Having published articles weekly now for almost 12 years, we have taken on the role of consumer advocate. We are doing our best to expose and bring awareness to ‘the people’ about bank practices which we have witnessed the troubles encountered first-hand dealing with our clients. But it is not enough. The injustices we are seeing must be stopped and made right going forward for us Canadians so that we can rest assured that our hard earned dollar does not continue to be eroded by usurious fees and non-transparent banking practices.

24 May

HOME IS AT THE HEART OF LIFE

Mortgage Tips

Posted by: Tracy Price

We are born into this world into a home with our parents. Home is where the heart is. Home is where we feel safe, a place where we can let our hair down, have fun and be ‘us’. Home can be in an igloo, a wigwam, a cottage, a rental or a home that we own.

What is Home Ownership?

Home ownership means owning an asset through which we can create ‘tax free’ wealth. This for most of us if not all of us, in the beginning, means obtaining a mortgage to acquire a home with a minimum down payment.  What a huge benefit, being able to obtain the home of our dreams, be it the first or the last one, with leveraging.

How does Home Ownership Benefit You?

The immediate benefit of home ownership is appreciation of the entire asset, not just appreciation on the money you put in, like most other investments in this world. This is a huge opportunity for us to create wealth. But only if we are smart about it. Some are. Many are not!

The ‘wealth’ y people know how to leverage their capital to maximize their returns. This is what the banks do (to us) every single minute of every single day, to unsuspecting and uninformed Canadians. The rich have learned to use other peoples’ money to their advantage, while the masses have not and remain in the struggle of not getting ahead, or worse for many, living paycheck to paycheck.

Be Informed, Be Savvy

If you want to overcome your struggle and you want to get ahead in this increasingly crazy but still beautiful amazing world of ours, our advice is to become informed and savvy about your mortgage. If you do not educate yourself, you are unwittingly letting the banks take advantage of you, to put it mildly.

The Best Advice from Trusted…Respected…and Loved Professionals

Simply put, we give heartfelt informative advice; advice, that we would give to our own children. We care deeply and feel tremendous gratitude in helping our peeps get ahead financially and otherwise. We continue to be blessed with wonderful appreciative clients and now friends and acquaintances.  It’s a beautiful experience each and every day to be able to meet and provide guidance to such great people, especially those who have hit a ‘bump’ in the road and need to get back on track.

At Price Team Mortgages we love what we do, and now Tracy and I are so incredibly blessed to have two of our amazing daughters, Jennifer and Melanie, both moving, both building and bringing our two granddaughters to Fergus to make this community their new ‘home’. We are over the moon excited to announce they are joining us to make ours a true family business going forward which will continue with the passion and love we bring to you folks from our hearts.

5 May

GET THE BEST FINANCING WHEN BUYING FROM A BUILDER

Mortgage Tips

Posted by: Tracy Price

New subdivisions are popping up all over Ontario but many unsuspecting buyers are getting trapped by the financing available by the builder. The longest ‘Hold’ period on mortgage rates for resale housing is 120 days / 4 months.

For new build housing the banks offer ‘Capped Rate’ mortgages to buyers for 6 months or more. We recently toured several new home sale pavilions and noticed bank financing is very prominent but what is concerning is the lack of details provided. Incentives such as free appraisals, down payment help, and free giveaways were being offered.  BEWARE! And read the fine print! Many of these mortgage products and incentives offered end up costing YOU by:

  • Paying a higher rate
  • Getting stuck in a mortgage with harsh penalties
  • Finding yourself in a bank collateral mortgage.
BEWARE! Did you know that 4 in 10 homeowners break their mortgage during the term? You do not want to get stuck in a bank collateral mortgage, with harsh penalties. See for yourself. Bank collateral mortgages and insurance have been chronicled in the news and on TV as SCAMS. Please GOOGLE the following CBC Marketplace episodes: COLLATERAL MORTGAGES – WHAT YOU NEED TO KNOW; THE POSTED RATE SCAM & IN DENIAL – MORTGAGE INSURANCE CANADA.

 

Don’t Get Stuck with a High Down Payment

With new construction, builders typically require a 10%-20% down payment. However, mortgages in Canada allow a minimum 5% down when purchasing. Although the builder may require a higher down payment to secure the home, on closing you can put a minimum of 5% down. This strategy could help you eliminate debt while getting you the home of your dreams. You need a solid strategy to present to your builder that works for you.

Understand your Financial Capacity

It puts you in the best position if you sit down with a professional mortgage broker and review your credit report and entire financial position to ensure you are buying comfortably and knowledgeably. You cannot get this depth of review from the bank which is DANGEROUS because it is imperative that you fully understand your financial capacity going forward. Two items that we consistently find biting the homeowner long after committing to purchase is HST and upgrade costs. As experts, we help to ensure this does not happen.

Strategize for the Extra House Expenses

New homes come with many extra expenses after closing. Examples are decorating, window coverings, a lawn mower, garden tools, small appliances, landscaping, decks, furniture, patio furniture, barbecue etc. etc. etc, and the list goes on. What happens is that much of these get purchased on credit cards and on ‘time’ with deferred payments of 12 to 15 months into the future. All of this needs to be planned for, otherwise you may find yourself in financial difficulty in which you to look to refinance and find that the amazing mortgage product you signed up for with all the incentives advertised by the builder ends up costing you thousands in penalties.

Contact The Price Team for Invaluable Advice

Folks we are the number one mortgage source for many reasons, one of the most important being that WE ARE TRUSTED MORTGAGE ADVISORS! We look out for your best interests. We offer more mortgage options and professional advice than the banks. Invaluable advice about how to ensure your initial mortgage approval does not get derailed just before closing. We have new home buyers coming to us all the time literally days before closing because the bank suddenly declines their financing at the eleventh hour. How stressful is that? YOUR APPROVAL WITH US IS GUARANTEED! WE ALSO GUARANTEE TO GET YOU A BETTER RATE THAN WHAT THE BANK OFFERS YOU. Even if you get your initial financing at time of purchase from the bank, you can still come to us for a better rate prior to closing. Please remember, we are on your side, we are here to protect you and to obtain the best rate, terms and strategy for you going forward.