MORTGAGE TUBE CANADA

MORTGAGE BROKER SHOPS AND SHOPS AND SHOPS FOR MORTGAGE — AND FINDS BEST DEAL

2011-09-20T19:59:00.003-04:00

When I first got into the mortgage business eight years ago, my mentors talked a lot about funding ratios, the number of mortgages you close with a lender compared to the number of applications you send that same lender. “Don’t apply to more than one lender for a mortgage” they told me, “lenders keep track of the number applications you send them, and if you don't close enough of them, they will

Mortgage Broker Gets You More Money

2011-04-14T19:09:00.003-04:00

After applying for a mortgage at their bank, a couple were told they would need a 35% down payment to qualify. Since this was more money than they could manage, their real estate agent referred them to me for a second opinion. Having recently been transferred to Canada from another country, the couple were now living and working in Canada on Work Visa's. After researching the mortgage

Watch this Video and find out who is Lending Money

2011-04-01T17:43:00.001-04:00

Find out who is lending money from David Grossman on Vimeo.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.

Up to 85% Financing on Owner-Occupied Commercial Properties

2011-04-01T17:42:00.000-04:00

What else is there to say about 85% commercial property financing?Oh yeah... Call Me! @ 416-876-2031 I want to hear from you! David Grossman MBAMCC Mortgage Loans CanadaTel: 416 876 2031If 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

Episode #2: Keepin it Real

2011-02-18T06:34:00.003-05:00

Today's guests; Harley Gold, Penmor Mortgage Capital Corporation; Greta Tachdjian, Unique Stagers; Michelle Risi, V.P. Business and Project DevelopmentRoyal LePage Your Community RealtyIf 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

The Sales-Gods at work

2011-02-18T06:33:00.001-05:00

A colleague once told me he believed in the Sales-Gods. "In the game of selling, the Sales-Gods were always at work" he would say. Funny as it sounds, I think he was right. Let me explain. Let's say you're hard at work farming territory 'A.' Suddenly, an opportunity bubbles up in area 'B.' Ever wonder why this happens? It's the Sales-Gods, rewarding you for your work. I have a

Carrying the Ball

2011-02-18T06:30:00.001-05:00

There are different reasons why people drop the ball. Sometimes the ball is hard to carry. That's no excuse though, because if you agree to carry it, you must take responsibility for it. If you can't carry it, pass it to someone who can and introduce the original handler to the new carrier. The other day a realtor called me because a mortgage broker dropped the ball on her buyer. I

148% Debt to Income-Ratio Has Long Way to Go

2011-01-04T16:35:00.002-05:00

A couple of weeks ago Mark Carney, from the Bank-of-Canada, said the average Canadian's debt to income-ratio was 148% -- "much too high" he said, "we need to tighten our belts." Since that press release, every time I turn on the radio or the TV somebody's talking about 148% this or a 148% that. Even P.M. Stephen Harper weighed in, "we've tightened mortgage rules before" threatened the Prime

A Holiday Greeting for You

2010-12-23T22:23:00.002-05:00

I'd like to take this opportunity to wish you all a happy holidays and successful 2011. Thank you for reading my emails this past year, and for all your mortgage referrals. I am grateful having had the opportunity to serve you. Whatever holiday you celebrate, there's no denying this is a great time of year for all to wind down and spend time with family and friends, despite the cold weather.I

A Preapproval is a Promise; And a Promise is a Promise

2010-12-20T10:14:00.002-05:00

Chris Kringle was about to sign on the dotted line - a firm offer - no room for error. "My bank preapproved me for this mortgage last week" Kringle boasted to his realtor, "let's go in firm." Kringle was ever shocked later when he learned he was, in the end, declined by the bank. "You said I was preapproved" complained Kringle to his banker. "How could you?" ------Although this isn't a true

Mortgage "Outside the Box"

2010-11-26T14:12:00.002-05:00

Have you been working mainly in the domain of residential real estate but would like to expand your business? Store and Apartment Financing @ 4.99% Does your client need a storefront or office space to run their business? Why not consider a multi-unit investment, with a storefront or office space for the business, plus one or more apartments. Financing on a store and apartment with 25% down is

BANK TOLD MORTGAGE APPLICANT HE WOULDN'T QUALIFY FOR A SOFA AT THE BRICK

2010-11-11T15:20:00.003-05:00

After being declined for a mortgage at the bank, some potential buyers won't even bother to apply again elsewhere. Fearing a drop in their credit score with every loan application and credit check, they don't want to compound the problem by applying for a mortgage with every Tom, Dick and Harry, so they give up altogether. "What happened?" I recently asked a buyer who arrived at my office after

Wow, 50 Lenders - Who Cares!

2010-11-11T15:16:00.002-05:00

There's one super-broker who used to advertise they could arrange your mortgage with any one of more than 50 different lenders. Wow, fifty lenders! Seems impressive, doesn't it? In reality, it's of little or no value to have that many lenders to send business too. In my years of experience, I've learned that typically, borrowers are looking for the 3 things: 1) Great service2) Competive rates3)

Mortgage Talk/Real Estate Call in Show - Nov 1, 2010- Garry Shapiro & James Watters

2010-11-03T20:34:00.005-04:00

Mortgage Talk - Nov 1, 2010- Garry Shapiro & James Watters from David Grossman on Vimeo.In this episode of Mortgage Talk, host David Grossman, aka the mortgage mensch (http://mortgagemensch.blogspot.com/), talks to real-estate and business lawyer Garry Shapiro from Shapiro & Cho (http://www.shapirocho.com/) and James Watters from Canspec Building Services Inc (http://www.canspechome.com/). The

Line of Credit/Mortgages for Self Employed

2010-10-14T05:28:00.004-04:00

(Video Below!!!)In business, as in life, we've all experienced good times and bad. You will know this to be especially true if you are self employed. If you're in a business that is cyclical, how do you manage your financial obligations during slower times? Answer: Get a Line of Credit The best time to arrange a line of credit is when times are good, but if don't have that prearranged, I would

Consolidating 3 mortgages into 1

2010-09-23T11:12:00.001-04:00

This applicant 1st came to me two years ago to arrange a 3rd mortgage on their property in order to pay off some debts. They ended up paying a high rate - 13% - on the 3rd because their credit was badly bruised. With some credit coaching, now, 2 yrs later, I was able to arrange a single mortgage to consolidate all 3 mortgages at a low of 4%. Call me, David Grossman at 416 876 2031, if you need

The Mortgage Mensch trailer

2010-09-23T11:03:00.005-04:00

I recently connected with a very talented, young film student named Lior Khananaev who created a video commercial for me posted above on Youtube. I'm sharing it with you not only because the video does a great job communicating what I do, but also because Lior is now doing video production professionally, and I would like help him out. I also think he is a valuable contact for those of you who

Building Your Business in the Month of August (Tips for Realtors)

2010-08-23T17:15:00.003-04:00

August is traditionally a slow month in the real estate market. This August is no exception. A lot of people are on vacation and taking time off to be with family. But just because fewer people are buying real estate, doesn't mean you have to shut down your business. Sure, it's a good idea to take some time off too, to enjoy the warmer weather and spend some time with the kids before they go back

Just because you've been declined for a mortgage at the bank, it doesn't mean you'll end up paying exhorbitant rates and fees...

2010-08-15T18:18:00.008-04:00

Watch the video below for the full story...Call David Grossman at 416 876 2031 or visit http://www.mortgagemensch.ca for more information. Get the service and attention you deserve!I've said it before - "just because you're declined for a mortgage at a bank, doesn't mean you'll end up paying exhorbitant rates and fees to get a mortgage." This self-employed applicant was unable to prove income (he

With as little as 5% down, regardless of credit, "lease to own" may be your solution

2010-08-14T19:12:00.002-04:00

Purchase or refinance with as little as 5% down, regardless of credit. Lease to own while you rehabilite your credit. For more information call David Grossman at 416 876 2031 or visit http://www.mortgagemensch.ca.David arranges mortgage, and Lease to Own solutions, in Ontario Canada.I recently had several queries from realtors about lease-to-own financing so I decided to send out a product

Get Unbiased Financial Advice from EES Financial Services

2010-08-13T19:15:00.002-04:00

The vast majority of "Investment Advisors" in Canada are also "salespeople" who stand to make a buck everytime you buy an investment product. EES are different. They sell time only, Watch this video to find out more. Contact Jason Heath, CFP, B.A. (Hons) Econ. Consultant at:Tel. (905) 471-1337 ext. 240 or Toll free 1-866-590-0001 ext. 240http://www.ees-financial.com* Mention you saw this video on

Canada's 1st Bankruptcy Museum w/trustee Cyril Sapiro

2010-08-12T19:18:00.002-04:00

What is the difference between a consumer proposal and a bankruptcy? What is the long term impact of a bankruptcy on your credit? Trustee Cyril Sapiro discusses these topics and more on The Money Show with David Grossman a.k.a The Mortgage Mensch. To contact Cyril call 416-486-9660 or visit http://www.csapirotrustee.ca/ for more information.For mortgage information call David at 416 876 2031 or

Who Needs the Bank

2010-08-11T19:21:00.001-04:00

The Bank told the client he had bad credit, but they didn't explain what the problem was or how to fix it. The client felt dejected and didn't know what to do...When it comes to something as important as your mortgage, are you getting the service you deserve? Call me, David Grossman, The Mortgage Mensch, for the service and the personal attention you deserve, at 416 876 2031, or visit my website

Who Needs the Bank #2; This is how the bank treats its employees?

2010-08-09T21:20:00.000-04:00

"If this is the kind of service the bank gives its employees, what kind of service does it give its customers?" For the service and personal attention you deserve, call David Grossman, The Mortgage Mensch at 416 876 2031 - licensed to arrange mortgages in Ontario, Canada. For more information visit http://www.mortgagemensch.ca

How to get a mortgage after a bankruptcy

2010-08-08T21:26:00.000-04:00

David Grossman is licensed to arrange mortgages in Ontario, Canada. Call 416 876 2031 or visit http://www.mortgagemench.ca for more information.

First time buyer mortgage requirements

2010-08-07T21:29:00.000-04:00

David Grossman MBA is a mortgage specialist in Toronto, Canada. Visit website http://www.mortgagemensch.ca for more info or call 416 876 2031.

Mortgage basics / terminology

2010-08-06T21:31:00.000-04:00

For more information call David Grossman at 416 876 2031 or go to http://www.mortgagemensch.ca to visit website.

6 Benefits of Canadian mortgage refinancing

2010-07-07T06:36:00.001-04:00

Canada mortgage refinancing is the process of taking another home loan in order to pay back your original mortgage loan with potentially different interest rates, terms and even amortization. The CMHC or the Canada Mortgage and Housing Corporation are a corporation owned by the Government of Canada.Traditionally, the CMHC did not allow the additional funds to be used for debt consolidation. But

More Important to Have a Mortgage Broker Than Ever

2010-03-16T21:41:00.001-04:00

Among other recent changes to insured mortgage lending guidelines, the Dep't of Finance has announced a change starting April 9, 2010 that will make it tougher for self-employed people to qualify for a mortgage. In the past it was understood that some self-employed people, while they weren't necessarily reporting significant income, might still be operating profitable businesses. Starting April

Recent Dep't of Finance Changes: Much ado about nothing

2010-03-02T12:47:00.004-05:00

By now you have seen many reports - I am sure - about the Dep't of Finance's recent changes to insured mortgage lending guidelines set to take affect April 19, 2010. However since I'm still receiving questions on the topic, I thought I'd share my views on the subject. In a nutshell, as far as I'm concerned, it's business as usual. Breaking it down in order of impact: 1) Qualifying for a

THE TEN COMMANDMENTS OF MORTGAGE LENDING

2010-02-26T04:05:00.006-05:00

When it comes to getting advice on something as important as your mortgage, are you getting the service you deserve?I've come up with a list of commandments or 'rules of engagement' - how I think a mortgage broker or agent should engage his/her customers. Check them out below... • Thou shalt not charge exhorbitant fees • Thou shalt not push a borrower into a mortgage they cannot afford • Thou

The Bank told the client he had bad credit...

2010-02-26T03:56:00.003-05:00

The Bank told the client he had bad credit, but they didn't explain what the problem was or how to fix it. The client felt dejected and didn't know what to do...For the full story, watch the video below...When it comes to something as important as your mortgage, are you getting the service you deserve? Call me, David Grossman, The Mortgage Mensch, for the service and the personal attention you

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

2009-11-06T21:14:00.001-05:00

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

2009-11-06T21:12:00.001-05:00

How to get a mortgage after a bankruptcy

2009-11-06T21:09:00.001-05:00

First time buyer mortgage requirements

2009-11-06T21:04:00.001-05:00

Mortgage basics/mortgage terminology

2009-10-16T09:21:00.000-04:00

Contact David Grossman MBA, mortgage specialist visit www.mortgagemensch.ca or call 416 876 2031

Now that recession is over, is it time to buy?

2009-10-16T09:14:00.002-04:00

visit http://www.mortgagemensch.ca for mortgage information. MENSCHLife airs live on Tuesdays from 11AM-noon EST on http://www.thatchannel.com or go to http://www.menschlife.tv to watch past episodes.

Where is the best place to get a mortgage in Canada

2009-08-28T17:45:00.000-04:00

Are mortgage rates going up or down?

2009-08-28T17:40:00.000-04:00

Customer Testimonial

2009-08-19T15:58:00.000-04:00

Fixed or Variable Rate

2009-08-19T15:53:00.001-04:00

Consolidating Debt: When is the Right Time?

2009-06-08T10:21:00.001-04:00

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

BoC will shift gears on rates: Scotiabank

2009-06-08T06:50:00.001-04:00

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,

Don't Send Your Mortgage Application to the Wrong Insurer

2009-05-23T13:24:00.000-04:00

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!

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

2009-04-30T18:47:00.000-04:00

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

Market at Bottom: Rates Still Falling

2009-04-18T15:40:00.001-04:00

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.

Is Now a Good Time To Refinance Your Mortgage?

2009-03-08T08:20:00.006-04:00

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

Bank vs. Mortgage Broker

2009-03-08T08:07:00.007-04:00

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

The Self Employed Mortgage

2009-02-21T05:59:00.003-05:00

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,

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

2009-02-16T09:47:00.004-05:00

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

Rate Specials: Rates Continue to Drop

2009-02-06T00:26:00.002-05:00

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

Zero Down Has Bad Stigma But Still Available

2009-01-29T04:25:00.002-05:00

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

What is a News Fast?

2009-01-22T04:11:00.000-05:00

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

Tips for Realtors and Others needing a does of inspiration

2009-01-20T17:57:00.002-05:00

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

Save Money: Get the Mortgage Features You Need

2009-01-10T08:54:00.002-05:00

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

Show us Your Superman

2009-01-10T08:51:00.001-05:00

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://

Dropping rates

2008-12-16T20:41:00.004-05:00

Fixed rates are steadily lowering. Hopefully this will breathe some life into our soft market...Residential rates:1 yr fixed – 4.00%4 yr fixed - 4.895 yr fixed - 4.99 5 year variable – 4.1% (Prime +.6%)• Prime is currently 3.5%Click here to sign up for weekly rate updates.Need a quote on your mortgage? Call me at 416 876 2031.

Stuck with two properties: Investor mortgage may be the solution to your problem

2008-12-12T22:17:00.011-05:00

It’s a fairly common scenario nowadays. You bought a new property and arranged financing that was conditional on the sale of your old property. And now with the market having fallen off, you’re under pressure to reduce the price of your original property but you hesitate to do so because you don’t want to realize a major loss. Enter the investor mortgage, available with as little as 5% down.

Q&A: Improving Your Credit Profile

2008-12-12T06:45:00.003-05:00

I just received the following e-mail from an interested real estate investor about credit. I thought others might find the information useful so I am posting the Q&A...Question: "As a mortgage broker are you looking at credit cards and there balance? The reason I'm asking is that I have 7 credit cards. Over the years company's just give them to me..I don't have a balance on any of them. And I

Is now a good time to lock in your mortgage?

2008-12-09T19:52:00.013-05:00

I just received an e-mail from a client asking the following question... "Given today's large Bank of Canada interest rate cut of .75%,should we be thinking about locking in our mortgage?" I think a lot of people might be wondering the same thing so I thought I'd share my answer. "Long term fixed rate mortgages ie. 3-5 year terms, are currently around the 5% mark. Fixed rates do not move

Investment Tip: You Can Buy a 5 unit apartment building w/as little as 15% down

2008-12-07T03:08:00.001-05:00

With stock markets down, investors are looking for solutions to make up for steep losses. Here’s a tip for people open to looking at a real estate investment as a way repair their badly bruised stock portfolios. With a 5 + unit rental property, you can reduce your investment risk in comparison to a 1 or 2 unit rental property... in the event that you have a vacancy, you can count on the other

Mortgage Investing Attractive Option to Stock Market Investing

2008-11-25T07:06:00.005-05:00

Given the recent upheaval in the global stock market, many of us who thought their investments were safe because they own balanced mutual funds and blue chip stocks have of late, found that a substantial amount of their life savings has eroded. If you’re one of these people, what should you do? Should you cash in your mutual funds, sell your stocks and instead buy bonds and GICs? Selling low

Changes to Mortgage Lending in Canada

2008-10-27T10:00:00.005-04:00

This past summer, Canada’s department of finance announced they would be making changes to insured mortgage lending guidelines, making it harder for prospective homebuyers to get a mortgage. In Canada, when you buy a property and you have less than 20% down, the mortgage has to be insured by one of the nation’s mortgage insurers. Since mortgage insurance is backed by the government of Canada,

David Grossman talks about improving your credit on CBC's Living in Toronto

2008-10-14T15:59:00.004-04:00

Several changes to mortgage insurance will be taking place on October 15th 2008 which will impact Canadian homebuyers. Among the changes mandated by the department of finance, the minumum beacon/credit score requirement will be going up from 600 to 620.Given these changes, it makes it that much more important that people know what is being reported on their credit report and how to build a good

Some Good Economic News for Canadians

2008-10-14T15:50:00.003-04:00

The economy is suffering worldwide in what now appears to be a global credit crisis however there is some good news in Canada which might make you feel a little better. Yesterday it was reported that a survey by the World Economic Forum found Canada to have the soundest banking system in the world. On a list of 134 countries Canada was ranked number one. Click here if you would like to read

Canadian Government Throws Wet Blanket on Mortgage Market

2008-07-11T15:31:00.006-04:00

On Wednesday this week the Department of Finance announced that some of the mortgage products created in the last two years including 40 year amortizations and zero down mortgages would be eliminated effective October 15, 2008. They also announced they would change some of the documentation requirements (I anticipate more strict requirements for self employed/no income qualifer mortgages) and

Should You Go with a Variable or Fixed Rate Mortgage?

2008-06-24T15:44:00.008-04:00

I recently got into a discussion with a client about whether he should go with a fixed or variable rate mortgage and I shared with him a copy of a paper that was written by Associate Professor Moshe Milevsky at Schulich School of Business in 2001. The paper is called 'Floating Your Way to Prosperity' and you can find a copy of it and other papers written by Professor Milevsky at http://

Mortgage Tip: Ask about your Lender’s Variable Rate Mortgage “Lock-in Privileges”

2008-06-10T10:11:00.002-04:00

Not all variable mortgages are created equal. In the current mortgage market, the spread between fixed and variable rates is very wide. Fixed rates are around 5% while variable rates are closer to 4%. As a result, most borrowers are opting for variable rate mortgages. When trying to decide which variable rate mortgage to go with, one of the most important things you need to find out about,

Complaining About Property Tax Like Crying with a Loaf of Bread

2008-03-21T10:47:00.014-04:00

A lot of people were very upset when the Toronto Liberal government recently announced a proposal to increase property taxes. You may disagree, but I don't think the proposed property tax increase is a big deal. Based on the average price of a home in the city of Toronto, which is around $365,000, the proposed increase would amount to a total of $81 per year. But to be fair, when you consider all

How to Lose a Deal in Ten Days

2008-03-15T15:15:00.007-04:00

Losing is never easy. And just because you lose, as you will some of the time, it doesn't mean you're a loser. So when you know you're going to lose, do it like a winner. People aren’t out to get you. They just do what they think is in their best interest and they aren’t thinking about how they can 'get' you. So don’t take it personally. The trick is to learn whatever you can and move on.I

Why Mortgage Lenders Care About Where Your Down Payment Comes From

2008-03-04T08:03:00.006-05:00

When people are applying with me for a mortgage and I ask them where their down payment is coming from, they often give me a confused look. They don’t understand why their lender would care where their down payment comes from. After all, a down payment is a down payment. Who cares where it comes from? Actually, it matters a great deal where your down payment comes from.The source of your down

Condo Financing 101: Financing for Condo Buyers

2008-03-04T07:50:00.006-05:00

There are many reasons people buy condos. For some, it’s a lifestyle decision. When living in a condo you are not directly responsible for the upkeep of the property. No more snow shovelling or grass cutting! You still pay for these services, but the cost is shared among all the condo owners. For others, especially if living in the city is an important factor in your decision about choosing where

Critics of Longer Amortizations Need to Consider More Than Just Interest Cost

2008-02-29T06:49:00.020-05:00

The Royal Bank of Canada recently issued a report that 50% of borrowers of insured mortgages are opting for extended 35 and 40 year amortizations (a mortgage is insured when the down payment is less than 20% of the purchase price). Critics of the longer amortization argue that borrowers will pay more interest in the long run. In a recent National Post article on the topic, an example of a

Fixed rate mortgages up in the U.S. -- that was unexpected

2008-02-25T04:16:00.007-05:00

The best explanation I could come up with for why this happened is as follows...With the Fed lowering the prime rate dramatically in the last few months, investors have started moving their money out of the bond market and into equity markets where higher returns are expected. To attract investors, bond sellers must offer a higher rate of return. Since bonds are used to fund fixed rate mortgages

How To Make Your Mortgage Tax Deductible

2008-02-08T15:41:00.000-05:00

You've heard about the Smith Manoeuvre and you want to make your mortgage tax deductible. Here's an example of how the Smith Manoeuvre works...Assume you take out a $250,000 mortgage at 5.84%. On a 25-year amortization, the monthly payment on this mortgage would is $1576. Let's also assume that for 25-years, you don't have any extra cash to invest and all you pay is the monthly mortgage payment

RRSP strategy: Creating a down payment

2008-01-14T10:17:00.001-05:00

Thinking about buying your first home but you don’t have a down payment? Here’s an RRSP strategy you can use to create one. By taking an RRSP loan and buying RRSP’s, you’ll get a tax refund once you file your taxes. The refund is found money you can use as a down payment for your new home.If a husband and wife each buy $18,000 in RRSP's, the total refund could be as much as $16,500 -- you should

Are rates going up or down?

2007-12-20T20:24:00.000-05:00

In the past couple of days, several lenders have announced mortgage rate increases including CIBC, Firstline, President’s Choice Financial and TD. Other’s may soon follow suit. Why are rates going up you ask? Weren’t they supposed to be going down?Earlier this month, the Bank of Canada reduced the overnight rate by a quarter of a percentage point. The overnight rate immediately impacts the prime

How I learned to recycle

2007-12-13T14:56:00.001-05:00

I was the king of garbage. I am not proud of it, but it's true. And when throwing out garbage was in fashion, I was the best at it. Every one or two weeks, I would grab a big green garbage bag and digging deep into our fridge, I pulled out leftover food. Then I went around from room to room, filling up the bag. You name it, it went into the garbage. And then something changed and suddenly I

Is it Ethical for Lenders to Offer Stated Income Mortgages?

2007-12-13T14:54:00.002-05:00

In the U.S. some people refer to them as 'liar loans'. They are called 'stated income' mortgages and not everyone knows this, but they are also available, and very popular in Canada. With a stated income mortgage, the applicant is not required to provide proof of the income amount stated on the application. Mortgage lenders consider a number of factors when

Shop around for the best mortgage deal at renewal time

2007-10-10T04:19:00.000-04:00

It's important to shop around before your mortgage renews, to make sure you're getting the best deal. It's free to transfer your mortgage to another institution, but you'll have to do paperwork all over again, credit checks and provide income verification to the new lender. Unless your very unhappy with your present lender/bank, it's usually easier and makes sense to renew with your current

Eliminate virtually all market risk with a 15-year fixed rate mortgage

2007-09-10T18:21:00.002-04:00

In the past couple of weeks, given the fallout in the U.S. mortgage and real estate markets, a couple of prospective home buyers who were considering purchasing a property this fall, have asked me whether they should hold off on their plan to buy a property. Should they "wait and see", they asked. My short answer is no -- in my opinion, it's still a good time to buy real estate in Canada.First of

Attractive mortgage solutions still available for borrowers who don't qualify at their bank

2007-09-01T22:42:00.000-04:00

Now that Canadian sub-prime lenders have increased rates, if you don't qualify for a mortgage at your bank, does that mean that you are in serious trouble? In a word, no. There are many institutional lenders that offer mortgages at about the same rates as banks, and many have more flexible lending guidelines than banks.When it comes to insured mortgages (a mortgage needs to be insured if

Canadian real estate and mortgage market unlikely to follow U.S. example

2007-08-28T22:25:00.000-04:00

Last week several Canadian subprime lenders announced rate increases and a general tightening of lending guidelines, making if harder and more expensive for subprime borrowers to get loans. This was the result of an increase in lender's cost of funds due to problems in asset backed commercial paper market -- a direct impact of the collapse of the subprime mortgage market in the U.S.At this time

Save your credit: Avoid missing payments at all costs

2007-08-27T21:36:00.001-04:00

I frequently get calls from people who for various reasons have found themselves unable to meet their payment obligations. Whether they are having trouble making their mortgage payments, paying credit card or telephone bills, my advice is ~ avoid missing payments at all costs!So how do you make the payments if you are short of cash? Take out a loan, borrow from a friend or family member. If you

Canadian subprime lenders increase rates and tighten lending guidelines

2007-08-25T10:42:00.000-04:00

Last week was uneventful in the 'A' mortgage market -- no significant changes to rates.The story in the 'B' (subprime) mortgage market however, was quite different - we saw rate increases and a general tightening of lending guidelines, making it harder for subprime borrowers to get mortgages.What are the differences between the A and B mortgage markets?The A mortgage market is for people who can