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 29, 2009
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
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
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
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
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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