Friday, November 6, 2009

You're looking for a mortgage and you're declined by the bank...



If you are receiving this feed as an e-mail and don't see the post, please click back to the blog page http://mortgagemensch.blogspot.com/ as it is probably a video that has been posted. Thank you for subscribing to this blog! For more information call David Grossman at 416 876 2031 or go to http://www.mortgagemensch.ca to visit website.

Fixed or variable rate mortgage discussion with singer Limore




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How to get a mortgage after a bankruptcy



If you are receiving this feed as an e-mail and don't see the post, please click back to the blog page http://mortgagemensch.blogspot.com/ as it is probably a video that has been posted. Thank you for subscribing to this blog! For more information call David Grossman at 416 876 2031 or go to http://www.mortgagemensch.ca to visit website.

First time buyer mortgage requirements



If you are receiving this feed as an e-mail and don't see the post, please click back to the blog page http://mortgagemensch.blogspot.com/ as it is probably a video that has been posted. Thank you for subscribing to this blog! For more information call David Grossman at 416 876 2031 or go to http://www.mortgagemensch.ca to visit website.

Friday, October 16, 2009

Monday, June 8, 2009

Consolidating Debt: When is the Right Time?

I've heard a lot of people give advice about why you should consolidate debt. The reasons are obvious; to lower your overall interest cost and to improve cash flow. However, I've never heard anyone talk about when you should consolidate debt. I frequently get calls from people experiencing some kind of financial difficulty who are thinking about taking out a mortgage. Trouble is, they’re already maxed out on their credit cards and in some cases they’ve started missing payments. The time to access funds is before you are maxed out on your credit cards -- avoid missing payments at all costs! Anytime you are more than 30 days late making a payment on anyone one of your credit cards, loans, etc. your lending institution will send the information to the credit bureau and your credit will become tarnished. Once your credit is tarnished it will be more difficult and more costly to get the funds you need. Therefore, the time to access mortgage funds is before you are maxed out and before you have started missing any payments!

BoC will shift gears on rates: Scotiabank

World economy 'has begun to turn the corner'

Eric Lam, Financial Post
Published: Friday, June 05, 2009


The Bank of Canada may not be able to live up to its promise to keep interest rates at a rock-bottom 0.25% until the end of June next year, the Bank of Nova Scotia said yesterday.

In an global forecast update yesterday, Warren Jestin, chief economist at the Bank of Nova Scotia, said Mark Carney, the central bank governor, will act when economic growth raises inflation concerns. BNS, previously one of the more bearish banks on Bay Street, also revised up its forecasts for growth.

"They'll have no trouble shifting gears," he said. "Once they see signs of recovery they won't be sitting on their hands."

Yesterday, Mr. Carney and the Bank of Canada repeated their plan to hold the overnight rate at 0.25% until June, 2010. The central bank made the unusual declaration at its last announcement in April, in an effort to help the economy recover from the worst global recession since the Second World War. There was one caveat: It was conditional on the inflation outlook.

"The Bank of Canada has become more pessimistic than we are," Mr. Jestin said. He predicts Canada's benchmark interest rate will hit 2% and the U. S. rate 2.5% by the end of 2010.

The slumping dollar and increasing U. S. bond yield rates will also force the Fed's hand, adding further pressure for Canada's central bank to raise its rates.

Mr. Jestin knows he has also raised a few eyebrows by predicting a global turnaround in 2010.

"It's not rocket science. I often describe it as throwing horseshoes in the fog," he said, acknowledging that his bank has been bearish on the economy since 2007.

However, there are structural signs that the world has "begun to turn the corner," particularly in the United States.

Investors are returning to the equities market, stimulus packages are working, and after the housing and auto markets have bottomed out there will be a bounce back for consumers.

"The U. S. and world economies are starting to fill the hole we dug between September and April," he said.

A projected 2.2% drop in GDP growth in Canada this year will give way to a 2.5% increase in 2010, while the United States will cancel out an expected 2.6% GDP loss in 2009 with 2.8% growth next year. The U. S. forecast is a full percentage point higher than the bank's previous projection.

However, Mr. Jestin cautioned that the breakthrough 2010 recovery would be followed by a long period of "muted" growth.

The U. S. GDP will be hard pressed to grow more than 2.5% per year until at least 2015, and Canada will not fare much better. Globally, annual GDP growth is expected to max out at about 3% to 3.5%.

Right now, world GDP is on track for a 2.7% drop in 2009, with Japan (-7.5% expected) and European countries the hardest hit.

Canada's $50-billion deficit is also a key stumbling block, but not at the level of our southern neighbour.

"The United States deficit of US$2-trillion is 13% of GDP. We're not even in the same ballpark," Mr. Jestin said. Even so, he expects Canada to run deficits for at least the next five years.

As well, much of Canada's success will be depend on the strength of the loonie.

Mr. Jestin said recent market musings of quantitative adjustments and currency interventions should remain just that.

"I lived through the earlier period when the Bank of Canada routinely made currency interventions, in the old days back in the 1970s," he said. "They found out very quickly the market has a lot more money than they do and that interventions are futile."

Mr. Jestin also predicts the price of a barrel of oil will hit US$75 in 2010.

erlam@nationalpost.com

Saturday, May 23, 2009

Don't Send Your Mortgage Application to the Wrong Insurer

Earlier this month one of the mortgage insurers changed their debt servicing guidelines making it tougher for borrowers to qualify for a mortgage. One of the advantages of dealing with a mortgage broker is that since we deal with so many lenders, we get your application to the right lender; who will get your application to the right insurer, improving the likelihood of getting you an approval!

Do you need help qualifying or prequalifying your client for a mortgage? When you call me I guarantee you will get front of the line service. I will make sure your clients know everything they need to know about the financing process and promise to keep you in the loop!

Thursday, April 30, 2009

Zero Down Mortgage Still Available and Don’t Be Shy About It Using It

You thought the zero down mortgage was gone. Eliminated. Didn’t the Department of Finance eliminate zero down mortgages in Canada along with forty year amortizations last October after observing how improper mortgage lending standards could lead to catastrophic consequences in the US?

They did. However many major financial institutions are still offering what are effectively zero down mortgages by offering a product called the cash back mortgage. Here’s how it works; the bank loans you up to 95% of the purchase price of the property (plus insurance premiums -- in Canada a mortgage must be insured when the down payment is less than 20% of the purchase price). In addition, they give the borrower 5% of the mortgage amount on closing to be applied towards the purchase of the property. To be exact, that amounts to 99.75% financing which is basically zero down. Assuming you’re buying a $300,000 property under this program, you’ll have to come up with a $750 down payment plus closing costs. Why does the lender give you 5% cash back? That seems rather generous. Simply, they plan to get the money back over the term of the mortgage by charging a higher than normal mortgage rate.

For example, in comparing the rates at one of Canada’s banks on April 29th 2009, the rate for a 5 –year fixed rate mortgage with a traditional 5% down payment was 3.95% vs 5.25% under the 5% cash-back program.

The cash back product isn’t given a lot of attention today and I think that’s because of the negative stigma attached to anything that seems like aggressive mortgage lending. The thing is, given the slowdown in our economy, we need to do what we can to get our economy moving. The Bank of Canada has put billions of dollars into our banking system to ensure that our lending markets remain fluid. The cash back mortgage is a great product for first time homebuyers who have stable income but who have not had a chance to save for a traditional down payment. It is nothing like a subprime mortgage because you must have a steady job with provable income and a good credit history.

Saturday, April 18, 2009

Market at Bottom: Rates Still Falling

Last Friday one of our lenders announced they were raising rates. Given the more positive economic signals we have been hearing about in the media, I assumed we had turned the corner and expected to see other lenders follow with rate increases of their own.

Turns out the only reason this lender increased rates was that they were swamped and couldn't keep up with the volume of applications. The fact is, mortgage rates continue to fall.

This evening I received an email from one of our lenders; they are offering a 5 yr fixed rate of 3.69% on deals closing by May 29th.

Though rates are still dropping, my sense is that real estate has hit the bottom and there is no better time to get into the market. Anyone in this business knows that the market is heating up and despite wider economic issues, we have a very strong real estate market in the GTA.

If you want a great rate for your customer AND excellent mortgage service give me a call. I can be reached anytime at 416 876 2031, promise to return phone calls promptly and will be sure to keep you in the loop.

Sunday, March 8, 2009

Is Now a Good Time To Refinance Your Mortgage?

With mortage rates down, a lot of people who have fixed rate mortgages at a higher rate are wondering if now is a good time to refinance their mortgage to get a lower rate. Generally I believe it is NOT, but the first thing you need to do is find out what your penalty will be to get out of your current mortgage. To get out of your mortgage, most institutions charge three months interest or the interest rate differential, whichever is greater. The interest rate differential (IRD) takes into account the difference between your contract rate, the number of months remaining in the contract and current rates. Note that the lower rates get the bigger the penalty (IRD) gets. Don't make the mistake of comparing your fixed rate mortgage with variable rates. No-one can tell for sure where rates will be in one or two years. If you choose to go with a variable rate, know that there are risks and be sure you are prepared to live with potential fluctuations in rates.

Once you know what your penalty will be, it's worth asking your lender what alternatives, if any, they are willing to offer you. You might be able to get a lower rate by negotiating an early renewal. By blending and extending your contract with today's lower rates you might be able to avoid the penalty altogether.

It might be worth refinancing if you have other debt outside the mortgage at higher rates that you would like to consolidate into your mortgage. Find out what your bank is willing to do for you, then seek the advice of an independent mortgage specialist to make sure you're getting your best deal.

Bank vs. Mortgage Broker

I recently spoke with some new clients who didn't understand why they would want to use a mortgage broker to arrange their mortgage when they could qualify for a mortgage at a bank. More and more people are turning to mortgages brokers for choice, service and competitive pricing.

I put together the following matrix to summarize the differences and advantages of using a mortgage broker.

Click here to view the matrix in PDF.

Rate Advisor

Want to have my weekly rate updates delivered to you inbox? Click here to view rates on my Mortgage Alliance Rate Advisor page and sign up for weekly rate updates.
Do you need help with a mortgage? Call me at 416 876 2031.

Saturday, February 21, 2009

The Self Employed Mortgage

You’ve worked hard to get your business off the ground. It’s taken months or years but you’re finally enjoying a steady return. One of the many benefits of being self employed is that you have an opportunity to reduce the tax you pay because you can write off business expenses. Any accountant worth his (or her) weight will help you develop strategies to reduce the amount of income your report, to minimize the tax you pay.

Now you want to apply for a mortgage. The only problem is, the first thing the bank asks you for is your tax returns. “Show me the money” they say. And so it goes.

Self employed people are advised to seek out the services of a mortgage broker who will match your mortgage application with the right lending program. There are lenders out there that will either gross up the income you report by some margin if you are self employed, or waive the requirement to prove income altogether.

At Mortgage Alliance we have fifty six different lenders to choose from when matching your application to a lender. There are many lenders that you can only access through a mortgage broker, and since they don’t have a massive network of branches to support as the banks do, their rates are lower than the banks.

With as little as 10% down, a self employed applicant can obtain a mortgage without any proof of income. The application must be reasonable however. For example, if you are a self employed mechanic it is reasonable that you could afford to carry a $300,000 mortgage, but not an $800,000 mortgage. Your credit should also be excellent and the lender will also want to see that the down payment is coming from your own resources.

Monday, February 16, 2009

Service vs. Price: Service is the only sustainable way to differeniate yourself

As a mortgage specialist, one of most common questions I get when a prospect calls me is what are your rates? Through Mortgage Alliance we have access to very competitive rates, but I think that is one of the least important questions. First of all, most mortgage agents have access to the same lenders, rates and programs. In addition, rates change daily and sometimes by the hour. Fortunately we have access to Mortgage Alliance's Rate Advisor (click here to visit Rate Advisor now), which gives you current rates and automatically sends you weekly e-mail updates if you sign up; however, even Rate Advisor is not 100% accurate. It doesn't change everytime a lender announces a new promotion. The number of variables that will affect your rate are too numerous to capture in a chart. While I will always do my best to give people my best estimate as to what their rate will be, I usually have to get back to them after checking for the latest updates.

How do I differentiate myself?
In a word, SERVICE. Anyone in business for themselves knows that your business will not be sustainable if you try and compete on price alone (unless you are Walmart or somebody like that). There will always be someone willing to give their service away at a lower price. That's is why I put most of my energy into figuring out how I can offer better service than my competitiors. I want to be they guy you know you can count on to get things done, the guy who answers all your questions and explains everything to you until you have no more questions, they guy who ALWAYS gets back to you and your clients and who keeps you and your clients in the loop in terms of what is going on with the mortgage. That is how I compete. Knowing how to do, what you do, better than anyone else, being more helpful and more diligent than anyone else is in our industry is, in my opinion, the only way to complete. Oh yeah, and having a good marketing idea once in a while won't hurt either.

Friday, February 6, 2009

Rate Specials: Rates Continue to Drop

Lower prices and rates continue to drive affordability. Don't miss this great opportunity to to buy. Here's a look at some of the great specials out there:

1-year fixed (60 day closing) - 3.70%
1-year fixed (insured) - 3.89%
2-year fixed (insured) - 3.99%
3-year fixed (45 day closing, income qualified) - 3.75%
4-year fixed (30 day closing, insured) - 4.09%
4-year fixed (insured) - 4.19%
5-year fixed as low as 4.25% depending on mortgage amount, length of closing and prepayment allowance
5-year variable 3.75% (P+.75%) with privilege to lock in anytime at lenders best discounted rate

* Prime is currently 3% and may drop further when the Bank of Canada meets again March 3rd.

SELF EMPLOYED? BRUISED CREDIT? NO PROBLEM. CALL ME FOR A QUOTE ON YOUR MORTGAGE.

Rate Advisor

Want to have my weekly rate updates delivered to you inbox? Click here to visit my Mortgage Alliance Rate Advisor page and sign up.
Need help with your mortgage? Call me direct at 416 876 2031.

Have a great day!

David Grossman MBA
Mortgage Alliance Mortgage Loans Canada Inc.
Tel: 416 876 2031
Fax: 416 987 5631

Thursday, January 29, 2009

Zero Down Has Bad Stigma But Still Available

It's not the same zero down mortgage your used to. It's a cashback offer which, for all intents and purposes, amounts to the same thing. The lender finances 95% percent of the purchase price, plus they advance 5% of the mortgage amount as cashback to the lawyer on closing. The total financing is actually 99.89%. The lender charges a higher than normal mortgage rate (currently 5.8%) in order recoup the cashback over a 5 year period.

Given the scandalous lending practices that has lead to the US. subprime disaster, I realize that some of you may find the idea of a zero down mortgage (or anything close to it) appauling. If you are one of those people, I would ask you to consider the following:

1) To qualify for this mortgage, you need to have very good credit and prove that you have sufficient income to carry this mortgage (no hanky panky when it comes to proving income).

2) Do you think it's better to loan 95% on a $400,000 purchase that a person can't afford or 99% on a $200,000 purchase that a person can afford? What matters is that the borrower can afford to make the payments on his/her mortgage. In the US., when their market peaked before the crash, they were loaning 100% with no proof of income and with weak credit. So people were taking out bigger mortgage than they could afford to carry. Not the case here.

3) We need a stimulous to our economy, and there are still people out there who although they haven't been able to save for a down payment (they'll still have to come up with closing costs of course) have good paying steady jobs. If they can afford to carry the payments, I say give them the loan!

Rate Advisor

Want to have my weekly rate updates delivered to you inbox? Visit my Mortgage Alliance Rate Advisor page to sign up.

If you need help with a mortgage, call me directly at 416 876 2031.

Have a great day!

Thursday, January 22, 2009

What is a News Fast?

Good morning everyone,

Rates have been trending down nicely with the recent drop in the Bank of Canada’s overnight night. Our best 5-year variable rate is Prime plus .6%. Prime is now at 3% (that would put you at 3.6%) and rates may drop further when the Bank of Canada meets again March 3rd.

What is a News Fast?

Last month when I was getting ready for a presentation I delivered at YCR head office Finding Opportunities in a Down Market, I found that had to stop reading the newspaper because I couldn’t stand reading all the bad news. I needed to be in a positive mindset for the presentation and all the bad news just wasn’t helping. I casually mentioned to a friend that had started avoiding the newspaper. He said “Oh yeah, you’re on a news fast!” I didn’t know there was a term for it but I was intrigued, so I looked it up on Google and found this great article. The author, a personal development coach, talked about his news fast and I felt better knowing that I wasn’t the only guy avoiding the lousy news. I have since started reading the newspaper again in limited doses. To read the article, click here http://www.stevepavlina.com/blog/2006/09/overcoming-news-addiction/ to visit the author’s blog.

Rate Advisor

Want to have my weekly rate updates delivered to you inbox? Visit my Mortgage Alliance rate page at http://www.mortgagealliance.com/davidgrossman/default_Agent.asp?ContentTypeID=&PageID=10 to sign up.

If you need help with a mortgage, call me directly at 416 876 2031.

Have a great day!

David Grossman MBA
Mortgage Alliance Mortgage Loans Canada Inc.
Tel: 416 876 2031
Fax: 416 987 5631

Tuesday, January 20, 2009

Tips for Realtors and Others needing a does of inspiration

I recently attended a teleseminar with Bob Proctor from The Secret on The Science of Getting Rich. If you could use a dose of inspiration I recommend you listen to it. Click on the following link http://www.ordinarywords.com/bobproctor/ (or open copy and paste the link into a new browser) to listen to a recording of this teleseminar with Bob Proctor hosted by Ash Silva & Danish Ahmed free on the web.

A couple of weeks ago I told you about marketing guru Seth Godin. Coincidentally, he recently delivered this tip for real estate agents and brokers. "What should not so busy real estate brokers do?" Click on the following link http://sethgodin.typepad.com/seths_blog/2009/01/time-to-start-a.html to read the article on his blog.

Do you want the best service and rates for your clients? At Mortgage Alliance, we deal with 56 different lenders including banks, trust companies, credit unions and more. We can find your client a great mortgage and a great rate.

For help arranging your next mortgage, call me at 416 876 2031.

Have a great week.
Sincerely,

David Grossman MBA
Mortgage Alliance Mortgage Loans Canada Inc.
Tel: 416 876 2031
Fax: 416 987 5631

Saturday, January 10, 2009

Save Money: Get the Mortgage Features You Need

The Right Mortgage (TM) is a Mortgage Alliance brand that allows borrowers to design their mortgage with the features they need. When you remove features you don’t need, you save money.

For example, most banks offer a standard mortgage prepayment allowance 15%. That means you can pay your mortgage down by up to 15% every year, if you have the money. Studies show that less than 20% of borrowers actually use this feature, so what’s the point of having it?

With the Right Mortgage you choose the features you need, including prepayment allowance that suits you.

Do you have clients that like the security that is offered by a long term fixed rate mortgage ? The Right Mortgage currently has very competitive 3 and 5-year fixed term rates.

Contact me for help designing the Right Mortgage for you!

David Grossman MBA
Mortgage Alliance Mortgage Loans Canada Inc.
Tel: 416 876 2031
Fax: 416 987 5631

Show us Your Superman

Last year’s holiday season is now behind us and 2009 is upon us. If you are wearing a Superman suit underneath your regular clothes, now would be a good time to step into a phone booth, strip down and show us what you got!

I subscribe to a great marketing blog by author and marketing guru Seth Godin. He sends out regular tips and observations about which you might enjoy. The URL is http://sethgodin.typepad.com/.

I wanted to share his recent comments about leadership and 2009...

“Like an empty Moleskine notebook, the possibilities are exciting. Why not exceed them?
The place where expectations are lowest: leadership. Everyone expects you to get in line and follow, not lead.
The opportunity this year is bigger than ever: to lead change, to create a movement in a direction you want to go. While the rest of your world huddles and holds back, here's a golden chance to use cheap media, available attention and great talent to make something that matters.” - Seth Godin.
Make 2009 a great year!

Do you need help with a mortgage? Give me a call direct at 416 876 2031.

David Grossman MBA
Mortgage Alliance Mortgage Loans Canada Inc.
Tel: 416 876 2031
Fax: 416 987 5631

http://www.mortgagealliance.com/davidgrossman
http://www.youdeserve.ca
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