Using Home Equity to Your Advantage

To speak to a mortgage professional contact Greg Barrow at Ontario Mortgages

Canadians on mortgage "binge"

[Source - MortgageBrokerNews]

Canadians are taking out mortgages nearly eight per cent faster than they did a year ago, according to a report in the Globe and Mail, sparking concern that highly leveraged borrowers will be in over their heads when interest rates rise.

"We know that cheap money in the past caused some problems. This is a time to be prudent," CIBC economist Benjamin Tal told the Globe, adding that household debt in Canada rose 3.4 per cent in the first half of the year and the debt-to-income ratio rose to 140 per cent. In the meantime, U.S. consumers have been steadily increasing their rate of savings.

The report warned that borrowers' decision to take on bigger mortgages is not consistent with larger paycheques and could be problematic if housing prices take a hit once the buying frenzy cools down. There are also concerns of a housing "bubble" due to the high number of sales and the pace of price increases.

"It's environments like these that breed bubbles," ING Direct Canada CEO Peter Aceto told the Globe. "There is what feels to be a little bit of irrational behaviour in the real estate market, and I do think it's in a large way fuelled by how low interest rates are."

Mark Carney downplayed the risk of a housing bubble in a recent speech, saying he expects the real estate market to cool down by 2011. He added he will take necessary measures if low interest rates continue to spur out-of-the-ordinary activity.

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If you have any questions or concerns regarding your current mortgage, please feel free to contact me for a free mortgage check-up.

If you are a first time home buyer and are getting ready to make your first purchase, have you done enough research and budget analysis? I would be more than happy to speak with you to make sure you are well-informed and are confident that you will be making educated and sound decisions with respect to your purchase.

Tampa Bay Mortgage

I haven't wrote a post lately as I have been on holiday with the family.

We were lucky enough to spend some time in Treasure Island, Florida, which is on the coast just outside of Tampa Bay.

The weather was amazing and very hot. The beaches are beautiful, the people are very nice and we all had a great time.

One thing I did notice was a lot of for sale signs, and the media mentioned the mortgage crisis quite often. Here is a link to a website dedicated to the mortgage crisis in the bay area.

It is unfortunate that so many Americans are in the position that they find themselves in with regards to their mortgages.

It reinforces the fact that we are in much better position here in Canada when it comes to our residential financing, our banking systems, and our economy.

It sure is tough getting back to work after a week away, however I am looking forward to helping homeowners and first time home buyers with their mortgage needs here in Ontario.

Top 5 Mortgage Mistakes

Obtaining financing on a new or existing home can be a stress-free, straight-forward process if you’re prepared. But if you’re not prepared, there are many common mistakes you can make. Most of these mistakes are easily avoidable with some preparation and informed advice – feel free to call me with any questions/concerns.

Below are the Top 5 Mortgage Mistakes people make when trying to secure financing for their home:

1) Failing to choose the best product for your situation
There are many different types of loans out there. There are fixed- and variable-rate products, hybrid and no-frills mortgages, lines of credit, 1-10-year terms, up to 35-year amortizations, and more. And although choice is great, it can be quite overwhelming without expert advice. While one person would benefit from a variable-rate product, their neighbour may be better suited to a fixed-rate product. The key is to always explain your current situation and future goals in detail to me so I can select a product that best meets those needs.

2) Automatically renewing with your existing lender
Although you may feel an allegiance with the current financial institution that holds your loan, they may not be able to offer you the best products. When refinancing or renewing, I will always shop the market for your best available option, much like I do when securing your first mortgage. This ensures you end up with the best mortgage rate and terms customized to your unique situation. In many cases your bank will offer you the posted rate in hopes of you signing the commitment without shopping around. Make sure you do your due diligence when refinancing and renewing. After all, this is your home, your mortgage and your money!

3) Signing documents without reading them
Never sign documents without reading them. If you are unsure about your understanding, always ask me for clarification. Remember that you are the one entering into the agreement, so you need to understand and agree with what you are committing to.

4) Taking your credit to the limit
Make sure that your credit balances are in your favour when it comes to your mortgage application. Lenders are looking for an appropriate debt-to-income ratio. In other words, you need to have more income than you have debt. Avoid running up a balance on your credit cards and pay down existing debts as much as possible.

5) Failing to plan ahead
If you know that you will need to obtain, renew or refinance a mortgage, it’s essential to plan for it by ensuring your credit is in order. If it’s not, start preparing. Do not make any purchases on your credit cards that you cannot pay off and if you carry a balance on your credit cards, start paying them down. Refrain from making any large purchases before securing your mortgage. If you’re planning to buy a car, wait until after you have secured financing, as your debt-to-income ratio will rise and you don’t want this while trying to secure a mortgage.

Understanding how the mortgage process works and how lenders qualify your loan will help you avoid the above mistakes. As always, if you have any questions or concerns, I’m here to help!

[Source - Dominion Lending Centres]

Pay off your mortgage faster

Saving thousands of dollars and shaving years off a mortgage is easier than you think. Follow these tips below and if you have any questions, please feel free to call me so I can explain.

#1) Increase the frequency of your payments
If you're paying your mortgage on a monthly basis, you can arrange to switch your payments to half of the monthly payment amount on a bi-weekly basis. As a result, you'll actually make 26 payments a year.Most homeowners don't miss the extra amount they pay but always notice the savings that add up from this simple strategy.

#2) Take advantage of increased payment options
Most lenders allow allow a certain percentage increase to your monthly or bi-weekly payments throughout the term of the mortgage. The additional amount you pay goes straight to principal and it is not that difficult to make the adjustment in your lifestyle to afford the extra amount.

#3) Take advantage of lump-sum payments
In addition to increased payment options, most lenders offer the opportunity to make lump-sum payments on a mortgage. Annual bonuses or tax refunds provide a great opportunity to take advantage of this option. An annual lump-sum payment of just 2% is all it takes for many homeowners to pay off their mortgage years ahead of schedule.

#4) Take a shorter amortization
In addition to the strategies listed above, some home buyers choose to shorten their amortization period from the industry-standard 25 years to 10, 15 or 20 years instead. The result is slightly higher mortgage payments but significant interest savings over time.

Is now the time for you to Refinance your Mortgage

I was recently quoted in an article that appeared in The Liberal. The Liberal is a local newspaper in Richmond Hill, Ontario.

To read the entire article online, click here: Is now time for you to refinance your mortgage?

Yes, now can be an ideal time for you to refinance your mortgage. Whether you live in Richmond Hill , or anywhere in York Region, or Toronto, or Ontario!

All it takes is a quick call your lender to find out what your pre-payment penalty is. Then you call me to find out how much you can save on your monthly payments, and how much you'll save in interest for the remainder of your current term.

Today's historically low interest rates are:

Terms Posted Rates Our Rates 1 YEAR 4.20% 2.99% 2 YEARS 4.70% 3.69% 3 YEARS 4.90% 3.50% 4 YEARS 5.14% 3.80% 5 YEARS 5.45% 3.69% 7 YEARS 6.30% 5.15% 10 YEARS 6.70% 5.25% Rates are subject to change without notice. *OAC E&OE

Prime Rate is 2.25%. Greg Barrow, Mortgage Agent 416 807 7123 gbarrow@dominionlending.ca

First Time Home Buyers Toronto

Finally!!!!
The nice weather has arrived, what a beautiful day! If you are a first time home buyer this will certainly encourage you to start looking for your new dream home. Before you do be sure to contact a Mortgage Professional so you know everything you need to know to be prepared for one of the biggest purchases you'll ever make.

On Wednesday April 15th, 2009 I held a First Time Home Buyers Seminar in Richmond Hill. We had many first time home buyers attend, as well and many Realtors with their first time home buyer clients.

We covered all aspects of the home buying process including:
1) Is Home Ownership right for you?
2) Are you Financially Ready?
3) Building Your Team of Experts
4) Arranging your Mortgage
5) Making the Offer
6) Closing the Sale

Download a PDF version of our seminar by clicking on the image below

We will be holding more seminars in May, so be sure to subscribe to my blog to be notified of the upcoming dates. If you can't wait for the next seminar, then please call Greg Barrow at 416 807 7123 to arrange a time to meet, where I will go over all of the same information with you in a one on one setting where you can ask all the questions you want!

Have a great weekend!

Mortgage Interest in Canada

Most Canadians’ largest liability is their mortgage. Because mortgages accrue interest every month, it is important to every homeowner’s financial well-being to understand how interest works, and to implement and execute a smart payoff strategy, minimizing the amount of interest paid. Here are a few key pieces of information to know about mortgage interest.

When looking to reduce their monthly payments, many homeowners choose to lengthen their mortgage amortization from 25 to 30, or even 35 years. While this makes the monthly budgeting easier, mortgagors should be aware that it will also dramatically increase the total paid on the mortgage. In fact, most homeowners are shocked to hear the even if they take 25 years to pay their mortgage at an average interest rate of five percent, they will pay approximately 75 percent interest on the original sum borrowed!

Mortgage interest in Canada compounds twice a year, which means that twice a year borrowers are being charged interest on the interest on their mortgage. It adds up fast.

It is my job to properly educate my clients about every aspect of their mortgage and take the fear out of the process of borrowing large sums of money. Please give me a call (416.807.7123) to answer any questions or concerns you may have about the interest you are paying on your mortgage, or any other mortgage related topic.

You can also try emailing me at gbarrow@dominionlending.ca or visit my website (www.gregbarrow.ca) for more information, mortgage calculators or to sign up for my monthly newsletter.

What the New Federal Budget Means to Homeowners

The January 27th federal budget was chock full of goodies for homeowners and first-time homebuyers. Below are some highlights from the budget that you may find useful.

Home Renovation Credit
If you’ve been thinking about doing some home renovations, a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010 that was proposed in the new budget may help in your decision to invest in improvements to your home.

The credit will apply to expenditures in excess of $1,000, but not more than $10,000, for the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. The credit will, however, not be available in respect of expenditures for work performed or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28, 2009. Individuals may claim this credit (including expenditures made in January 2010) in their 2009 income tax returns.

Eligibility for the HRTC will be family-based. For this purpose, a family will generally be considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner, and their children who were under the age of 18 throughout 2009.
Two or more families that share ownership of an eligible dwelling will each be eligible for their own credit. Each family’s credit will be determined by their respective eligible expenditures in excess of $1,000, but not more than $10,000.

Individuals will be able to claim the HRTC on eligible expenditures made in respect of dwellings that are eligible at any time after January 27, 2009 and before February 1, 2010 to be their principal residence or that of one or more of their other family members under the existing tax law.

In general, a housing unit is considered to be eligible to be an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, the individual’s spouse or common-law partner or their children.

In the case of condominiums and co-operative housing corporations, the credit will be available for eligible expenditures incurred to renovate the unit that is eligible to be the individual’s principal residence as well as the individual’s share of the cost of eligible expenditures incurred in respect of common areas.

Individuals who earn business or rental income from part of their principal residence will be allowed to claim the credit for the full amount of expenditures made in respect of the personal-use areas of the residence. For expenditures made in respect of common areas or that benefit the housing unit as a whole (such as re-shingling a roof), the administrative practices ordinarily followed by the Canada Revenue Agency (CRA) to determine how business or rental income and expenditures are allocated between personal use and income-earning use will apply in establishing the amount qualifying for the credit.

Expenditures will qualify for the HRTC if they are incurred in relation to a renovation or alteration of an eligible dwelling (including land that forms part of the eligible dwelling) provided that the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits.

Expenditures will not be eligible if the related goods or services are provided by a person not dealing at arm’s length with the individual, unless that person is registered for Goods and Services Tax/Harmonized Sales Tax purposes under the Excise Tax Act. Any eligible expenditure claimed for the HRTC must be supported by receipts.

ecoENERGY Retrofit – Homes Grants
The new budget also proposes an expanded ecoENERGY Retrofit – Homes program, and Natural Resources Canada is currently working to finalize the details.

The new expanded program includes a $300 million increase over two years for support to property owners looking to make their homes more energy efficient. It is estimated that additional funds will extend the reach of the current program to an additional 200,000 homeowners.

Under the current program, ecoENERGY Retrofit – Homes provides home and property owners with grants of up to $5,000 to offset the cost of making energy-efficient improvements. ecoENERGY Retrofit grants apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace.
Only homes that have undergone a residential energy efficiency assessment by an energy advisor certified by Natural Resources Canada will be eligible for grants.

Detached homes, row housing, duplexes, triplexes and mobile homes on permanent foundations and some small apartment buildings of three storeys or less may qualify for ecoENERGY Retrofit – Homes grants.

The ecoENERGY Retrofit grant is based on the type and number of energy improvements that have been made and how much the efficiency of the home has been improved. The grant is based on how effective that upgrade is in saving energy, not on the cost of the upgrade.
The maximum grant one can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000. The average grant is expected to be more than $1,000 and will yield an average 25% reduction in energy use and costs.

RRSP Home Buyers’ Plan Increase
The budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

Tax Credit for First-Time Homebuyers
Also proposed in the new budget is a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence no later than one year after its acquisition.

To discuss any of these budget highlights, please contact Greg at gbarrow@dominionlending.ca

Great opportunity for first-time homebuyers

If you’ve been thinking about purchasing your first home, but haven’t yet made up your mind, now is an ideal time to think about taking the plunge into homeownership. Since Canada’s currently in a buyers’ real estate market and interest rates have been dropping to historic lows as of late, now is the perfect time to consider your mortgage options.

Your first step in the home-buying process should be to talk to a licensed mortgage professional. These experts have access to a vast array of lenders – up to 90+ institutions, including big banks, credit unions and trust companies – which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice – namely, their own products.

Mortgage professionals can get you pre-approved for a mortgage so that you know how much you can afford to spend on a home before you start shopping.

And thanks to the latest federal budget, there are a couple more reasons why now is the optimal time to purchase your first home.

First, the budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

The budget also proposes a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date).

An individual will be considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

[Source - Dominion Lending Centres]

Examining revenue property options

[Source - Dominion Lending Centres]

Given the current national credit-crunched lending environment and the slowing real estate market – which has shifted to a buyers’ market – coupled with lower interest rates, now is an ideal time to invest in the purchase of revenue property.

After all, although the real estate market slowdown has seen prices drop and interest rates dip, rental income has not wavered – making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

In order to take advantage of this opportunity, the key is to work with a mortgage broker who is an expert in this niche and can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decisions and feel at ease throughout each purchase.

Mortgage brokers offer an invaluable service to real estate investors because, if the mortgages on your investment properties are not set up properly from the on-set of each venture, you will not be able to get future financing – a necessity for continuing to build your portfolio of revenue properties.

Mortgage brokers who are experts in dealing with real estate investors know that a portfolio approach must be taken to ensure future financing for those looking to purchase revenue properties. An experienced mortgage broker will ask you in detail about your specific property investment goals and develop a game plan for the next five or 10 years based on these goals.

Your mortgage broker can work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals and the steps involved to get you there.

Keep in mind, however, that your plan should be revisited with your mortgage broker at least annually to ensure you’re still on track.

A team of experts
A mortgage broker who specializes in helping clients acquire revenue property is also likely to partner with other investment property experts, including real estate agents, lawyers, accountants, insurance agents and contractors, to name a few, which enables your broker to provide valuable information to you through this knowledge network they have created.

By forming ties with other trusted experts, your mortgage broker is able to provide you with a one-stop shop for meeting all of your real estate investment needs.

Your mortgage broker can also help direct you to other organizations that will offer you further insight into your real estate investment needs. If you join groups such as the Real Estate Investment Network (REIN) or even a local Rental Owners and Managers Society (ROMS), for instance, you can receive a wealth of added knowledge catered to your revenue property needs.

While REIN can provide market insight and investing tips through years of experience, ROMS helps with credit checks for potential tenants, keeps you abreast of changes to the Residential Tenancy Act and other topics/concerns often faced by landlords.

So before you begin building your revenue property portfolio, ask your mortgage broker what they can do to cater to all your real estate investment needs.

Homebuyers urged to beware mortgage policy tied to secure line of credit

[Published: Thursday, January 22, 2009 3:23 PM ET - Canadian Press NewsItem / NewsComponent / NewsLines / ByLine]

Homebuyers are being urged to read the fine print and to recognize the potential consequences of tying their mortgage to a grossly inflated secure line of credit - an increasingly common practice that's only now raising eyebrows as people review their finances in tough economic times.

Recently divorced and just two days away from closing on her new home, Sherryl Nickel was shocked when she arrived at her credit union to sign the paperwork and realized the institution had registered a home equity line of credit worth $750,000 when she'd requested and been approved for $200,000.

"They just said, 'It's complete. It's done. We're doing this as a service to you' when I questioned it," said the Vancouver retiree, noting the home was worth only $535,000.
"You don't have time to say, 'Whoa, whoa, whoa, send this back to your head office and get the paperwork redone.' You just don't have that opportunity."

Her lawyer later told her the practice is common and is billed as a boon for consumers who won't have to go through the process of hiring a lawyer again should they need additional credit down the road.

But the practice is also raising questions about the impact it might have on one's creditworthiness and ability to shop around with other lending institutions.

Read Entire Article Here: http://www.cbc.ca/cp/Money/090122/J012204AU.html

Renting vs Buying

At some point in their lives, most Canadians have probably asked themselves whether it is better to buy or rent a home. And purchasing a home is one of the biggest decisions most people ever make in their lives.

Ultimately, the decision is a personal choice, but it helps to look at the pros and cons of buying to determine whether home ownership is right for you.

Some advantages of buying a home
Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.

Each month when you make your mortgage payment, you are building equity in your home.
Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender.

At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.

Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.

There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity. As you build up equity, it’s usually easier to upgrade to a more expensive home in the future thanks to the profit you’ll make when selling your current home.

As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community.

If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams.

Since we’re currently in a buyer’s real estate market and interest rates have been dropping, now may be an ideal time to enter into home ownership for the first time.

Some disadvantages of buying a home
Since it’s easy to get caught up in the excitement of buying a home, it’s important to remember that home ownership has some additional responsibilities as well.

For one thing, a home can be expensive. Chances are, your monthly payments will be more than what you are currently paying in rent when you factor in such things as your mortgage, property taxes, repairs and general maintenance.

Owning a home ties up some of your cash and is likely to reduce your flexibility to move to a new location or change jobs.

While your home might increase in value as time goes by, don’t expect to get a big return quickly. There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees, and moving, renovation and other selling costs.

Real estate is, however, usually considered a good investment over the long term.

When making the decision about whether to buy or rent, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership but, ultimately, it’s a personal decision based on your own priorities.

As always if you would like to discuss your options with a Mortgage Expert, please contact Greg Barrow, Dominion Lending Centres Perfect Mortgages, at 416 807 7123 or by email, click here.

Have a great day!

Have you considered refinancing your mortgage?

If you’re trying to determine if now’s a good time to refinance your mortgage and free up some extra money, speak with a qualified mortgage expert. They will help you determine if refinancing is the right option for you and your family.

If you’re looking to reduce your costs and lower your monthly mortgage payment, then now may be a great time to do just that. Mortgage rates are currently low and switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the extra money you could acquire through a refinance.

If you’re able to lower your fixed-rate mortgage, or change from a fixed-rate to variable-rate mortgage, you could be putting more money in the bank each month. Make sure you speak with a mortgage broker about variable-rate mortgages, however, as this product adjusts with the bank rate and can fluctuate up or down.

With access to more money, you will be better able to manage your debt. Refinancing your first mortgage and taking some existing equity out could also help you pay off some of your high-interest rate credit card debts. You could also take some extra money out to invest, go on vacation, do some renovations or even invest in your children’s education. Refinancing your first mortgage is typically more cost effective than taking out a second mortgage.

Don’t forget that by refinancing you are extending the time to pay off your mortgage. That being said, there are many ways to pay down your mortgage sooner. Most mortgage products have prepayment privileges that allow you to pay up to 20% of the principal per calendar year. You may not be able to use any extra money you have now to take advantage of these extra payments but, once you are in a position to do so, it is highly recommended to try and make some additional payments to reduce your principal (the true value of your mortgage minus the interest payments) and the amortization period (length of your mortgage).

If homeowners fail to take the time to thoroughly research their options and simply sign the renewal offers they receive from their bank, credit union or other lender, they could end up paying thousands of dollars more per year in interest.

In the current credit-crunched lending environment, now more than ever it’s important to take the time to contact a mortgage agent to find out your options.

By refinancing now and paying off some debt, you can put yourself and your family in a better financial position. It’s very important to not rack up your credit cards after refinancing, however, so set your goals and budgets, and stick to them!

[Source-Dominion Lending Centres]

Mortgage brokers offer choice

The next time you’re looking for a mortgage for that new house or you’re up for renewal on your existing mortgage, think about using a mortgage broker – their services are free and they offer you an abundance of choices the banks simply can’t compete with.

Mortgage brokers have access to a vast array of lenders – up to 90+ institutions, including some of the big banks – which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice – namely, their own products.

Mortgage brokers do their homework on available mortgage products and keep themselves abreast of any new products, or changes to existing products, to ensure they find the best mortgage to fit your specific needs.

Unlike the banks, mortgage brokers can also cater to self-employed borrowers as well as those who have suffered credit blemishes due to life experiences such as divorce or illness. Brokers will listen to your story, whereas the banks have a very narrow view of what fits into their financing box – and this is nonnegotiable.

Top Reasons for Using a Broker:
1. Choice – access to multiple financial institutions
2. Costs – using a broker is free and they can negotiate lower rates for you
3. Knowledge – brokers stay up-to-date on available products and services
4. Flexibility – mortgage products are even available for the self-employed or those who have credit blemishes

Please call (416.807.7123) or email me any time.

[Source-Dominion Lending Centres]

Think your borrowing costs are cast in stone? Maybe it's time to ask

The following article in yesterdays Globe and Mail is a great article on the recent changes to the Manulife All-in-One product which has most of their clients seeing red. This product which is sold through financial advisers (not available through mortgage brokers) was sold by the financial advisers as a "prime rate" product and that the rate would never change. This selling feature written in the content of product details on the Manulife website has since been removed from the Manulife website.

[Source - ROB CARRICK - globeandmail.com 18/11/08]

When you deal with companies in the financial sector, you run the risk that their pain will turn out to be your pain.

This is what's happened recently to clients of Manulife Financial, Canada's biggest insurance company, and Envision Financial, a large credit union in British Columbia. Affected in various ways by the global financial crisis, both have made changes that resulted in higher borrowing costs for some clients.

In the past few years or so, virtually all financial institutions have bumped up the cost of mortgages and lines of credit. But Manulife and Envision differ in that it's not just new clients who will pay more. Existing clients who may have thought they had a particular arrangement in place are now paying more as well.

Before the financial crisis, you could get away with signing up for a mortgage or line of credit without asking about your lender's ability to change the rules determining your interest rate. Now, it's clear that you have to ask, or risk a surprise increase later on.

Read Full Article Here: http://www.theglobeandmail.com/servlet/story/LAC.20081118.RCARRICK18/TPStory/Business

Similar All-in-One products are offered by mortgage brokers through other lenders. Be sure to speak with a professional mortgage agent and get all the details on these types of products before going into them.

Canada's mortgage consumers 'remarkably positive'

[Source - Eric Beauchesne, Canwest News Service]

Canadians are still in a mood to mortgage.

Nearly four in 10 still think that now is a good time to buy a house, even though the proportion who expect home prices to fall has soared and the proportion expecting higher housing prices has plunged, according to survey results published yesterday.

"Residential mortgage consumers remain remarkably positive as they weather the financial storm," the Canadian Association of Accredited Mortgage Professionals said in releasing the results of a mid-October survey.

Attitudes toward area conditions have shifted only slightly, with 38 per cent of Canadians believing now is a good time to purchase a house, compared to 32 per cent who believe it is a bad time.

Read Full Article: http://www.househunting.ca/buying-homes/story.html?id=a282684c-a28f-48ec-9a0a-747882181c2c

Rate Your Mortgage Broker consumer survey

[Source - Canadian Mortgage Professional - October 2008]

In the first annual Canadian Real Estate magazine (CRE) Rate Your Mortgage Broker consumer survey, an astounding 94% of respondents said they'd use a mortgage broker again. Cindy Freiman talks to consumers to unveil the ins and outs of their recent mortgage experiences.

What brokers did well
Of the consumers polled, 38% revealed that they were happy with the overall experience offered by their broker and could not come up with suggestions on how to improve the relationship moving forward.

When it came to product knowledge, an astonishing 90% of consumers said they strongly agreed or agreed that their broker had a strong grasp on the available products to meet their clients' needs.

Brokers also received a favourable grade on product choice, with 73% of respondents saying the broker offered a wide variety of mortgage products from which to choose.

Where specific needs were concerned, 84% of participants felt their broker quickly understood their particular needs.

When asked the ever-popular rate-driven question of whether the broker found them a better-than-expected deal on a mortgage (regardless of whether they took the brokers up on these mortgages), 70% of consumers said they strongly agreed or agreed.

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Condo hunting: 5 advantages of resale

5 advantages of resale: no surprises, if you do your homework

Yesterday we reviewed the advantages of buying a new condo, here are the advantages to buying resale. Up for sale by the current owner, resale condos are usually available in older buildings and have already been occupied.
"What you see is what you get with resale condos," says our expert. "You can see exactly what you're paying for — the unit, common elements, amenities, location and neighbours." That can be a big comfort to some buyers. Other benefits:

1) Established neighbourhood. "You already know what to expect from a neighbourhood and who your neighbours will be," informs Mr. Hill. New condo buildings, on the other hand, may be in an up-and-coming neighbourhood that may change substantially in the next few years. "Speak with condo board members and owners in the building," he also advises, to get the feel of the condo community.

2) Books to review. "You can also review the condo reserve fund and other documents to get a sense of whether or not the condo has sufficient funds to see to repairs and replacements," adds Mr. Hill. "That will help ensure that you don't get hit with an unexpected charge for repairs to common elements such as elevators, balconies, parking garages and roofing, for example."

3) A firm moving date. Your closing agreement firmly determines when the place will be yours, unlike new developments, where move-in dates can be rescheduled.

4) More predictable costs. You don't have to pay GST on a resale condo (unless the unit has been substantially renovated). You'll also have a firmer grasp of maintenance fees, current utility bills and property taxes.

5) Spacious floor plans. In many cities, new condos are getting smaller and smaller. Older condominiums may offer larger units.

For more information on buying a new or older condo, download the CMHC's Condominium Buyers' Guide.

Source: The Smart Life - August 2008 - TD Bank]

If you have any questions on obtaining financing for a condominium, please call Greg at DLC Perfect Mortgages.

Have a great day and happy condo hunting!