A Holiday Greeting for You

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 hope you feel fortunate as I do, to live in a great, peaceful and free country like Canada!

And may this holiday greeting bring you whatever it is you wish for most!

Sincerely,

David Grossman

The Mortgage Mensch
Tel: 416 876 2031

Website: http://www.mortgagemensch.ca

Mortgage Specialist (Agent Lic. M08005924)
Mortgage Loans Canada (Broker Lic. 10100)

THE TEN COMMANDMENTS OF MORTGAGE LENDING

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 shalt not arrange a mortgage for a borrower who doesn't understand the risks of the mortgage ie. variable vs. fixed
• Thou shalt not arrange a mortgage at a higher rate of interest than is necessary in order to earn a bigger finder's fee
• Thou shalt not arrange a mortgage for a borrower on a longer term than is desired by the borrower in order to earn additional finder's fees

• Thou shall always return calls promptly
• Thou shall keep clients up to date with the status of their application
• Thou shall give borrowers honest feedback about their application up front, whether it is strong or weak
• Thou shall respect the privacy of borrowers
• Thou shall put the financial well being being of borrowers above all else and treat borrowers as you yourself would want to be treated

If you need my help with your mortgage, give me a call!

I look forward to hearing from you!

Sincerely,

David Grossman
The Mortgage Mensch
Tel: 416 876 2031
Website: www.mortgagemensch.ca

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

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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.

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.

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Do you need help with a mortgage? Call me at 416 876 2031.