Slow credit or poor credit? There’s a mortgage solution.

bad credit Life doesn’t always go according to plan.   You’ve heard that saying before.  When you have financial trouble, it can affect your credit score.    Today, that makes qualifying for a loan or mortgage very difficult….. but not impossible.

With all the new mortgage rule changes over the past 5 years, its made borrowing at reasonable rates almost impossible.   Many of us have been forced to borrowing on our high interest credit cards or finance loan companies.   These credit facilities carry huge interest rates and short amortization periods resulting in very high monthly payments.   (by the way, isn’t it ironic that the Federal Govt has tightened mortgage rules every year for the past 5 yrs but they haven’t touched the higher interest credit card companies and finance companies!   Who owns the credit card companies and finance companies?  That’s right.. the BANKS!  Who’s interest are they looking out for?)
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Darryl Sittler made his fortune in real estate, not hockey.

RRSP home buyers planLast week, I had the privilege of attending REIN’s (Real Estate Investment Network) monthly workshop.  One of my childhood idols was a guest speaker.  I’m talking about Darryl Sittler, the former captain of the Toronto Maple Leafs.   In case you haven’t heard of REIN, let me share some details about this group of professionals.

REIN is a group of real estate investors that get together to network and share valuable information that affects real estate in Canada.   The leader of the group is Don Campbell.   If you haven’t heard of him, you should.  His approach to buying investment properties has proven to be very sound and profitable.  His “top ten best cities to invest” is legendary. Read the rest of this entry »

Watch “MortgageLetdown SteveGarganis” on YouTube

MortgageLetdown SteveGarganis: https://youtu.be/nzuK3pG0Oyw

Check out this short video message I call ‘Mortgage Letdown’.   I’ll bet most of us can relate.

Steve Garganis
416 224 0114
Steve@mortgagenow.ca

Self-employed and can’t prove all income? There’s a new mortgage solution.

approvedIT STARTED WITH 2008

In 2008, the world experienced the U.S. sub-prime mortgage crisis.  Financial markets and real estate values nose-dived around the world…. well, not everywhere.    Some countries, like Canada, held their own.   Most of Canada didn’t really suffer like the rest of the world.  Call it luck, govt intervention, maybe being 5 yrs behind the U.S. (that’s personally what I think it was),  or whatever.   Today, property values have never been higher!

Here’s the strange thing.  Our Federal govt has made several mortgage rule changes that makes getting a mortgage tougher.  Yet, those changes were made AFTER the crisis.  In fact, they have made annual changes since 2009, including 2013.   Somehow, our real estate market remains red-hot.  (That’s something to discuss another day).

The govt demanded higher credit scores, more proof of income, larger down payments, shorter amortizations and reduced how much your can borrow against your house.   Yes, all these changes were made AFTER the 2008 crisis and are as recent 2013.  And that’s what so amazing our current real estate market..  it’s resilient.  It’s continued to grow and climb even with all the govt tinkering.   Read the rest of this entry »

A 2nd mortgage? Yes, this option can save you money.

 

loan sharkQuick, what’s the first thing that comes to mind when you think of “second mortgages”?   For some it could be that shady looking character in a smoke-filled pool hall… guys with gold chains and a baseball bat nearby.   Maybe you’re thinking of someone in financial trouble. Or maybe it’s just someone who doesn’t want to pay outrageous costs and penalties to refinance their existing mortgage.

The mere mention of 2nd mortgages conjures up all sort of images.  Most of them, negative.  For many, a 2nd mortgage can be a last resort solution during a financial crisis.   For several others, it can be an opportunity to save money.   That’s right, to save money.

Sure, 2nd mortgages carry a higher interest rate than 1st mortgages but, they can also serve a purpose.    One of those purposes can be to save you money.  Yup, I said it again.  There are some new trends emerging with today’s new mortgage products that are forcing consumers to seek other options.  Two of these trends are INFLATED PREPAYMENT PENALTIES and NO FRILLS MORTGAGES! Read the rest of this entry »

Is your banker giving you their best rate?

greedy banker EVEN THE BANK OF CANADA SAYS MORTGAGE BROKERS WILL GET YOU A LOWER RATE.

The Bank of Canada did a study a few years ago called Competition in the Canadian Mortgage Market.   The study concluded that consumers get a lower interest rate through brokers.    They also said that higher income earners were actually paying higher rates because they are less likely to spend the time to shop around for lower rates.

Last week, I did an interview for the news media about what a broker does.   They also interviewed one of my clients.  This client owns more than one property, he’s an experienced real estate investor and a senior manager for a major corporation.  He uses my service because I save him time and money.   He trusts my advice.  It’s that simple.   Here’s a link to the article.

IS YOUR BANKER GIVING THE BEST RATE?

A simple question.  How many of us can truly answer, yes?    You walk into your branch, you see a posted rate.  Then your banker shows you the “special rate” or “discounted rate”.   And then maybe they tell you they can do a little better.  But how much better?  And why aren’t they giving this up front?   Don’t loyal customers deserve the best?  Does this game sound familiar?

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2.99% is back… does that mean we should take it?

record low rates5 year fixed @ 2.99% is back.   This is NOT a NO FRILLS product (for those of you that saw a similar rate elsewhere earlier this year) but there is tougher qualifying.   This seems to have become an annual event.  For the past 3 years, we’ve seen 2.99% or less, being offered each Spring.   So, why haven’t rates gone up like the Bank’s economists, government analysts and other so-called ‘experts’ had predicted?

There are several reasons but, to sum it all up, the global economies haven’t recovered from the 2008 recession.    The US recovery is slower than expected.   Canada’s inflation rate is below target levels.   There were even concerns we could see deflation, which would cause the Bank of Canada to lower rates… those concerns have gone away…. for now!

WHAT’S THE FORECAST NOW?

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