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CategoryMortgage News

Is the COVID-19 emergency over? An economists prosepective.

I recently participated in a conference call with Scotiabank’s Chief Economist & SVP, Jean-Francois Perrault and John Webster President & CEO Scotia Mortgage Corporation.   It was good to hear real financial experts make sense of what has happened and what will most likely happen.

Here are of some of the highlights:

Continue reading “Is the COVID-19 emergency over? An economists prosepective.”
Bridge financing the what and why

Bridge Loans… the what and why!

Bridge financing the what and whyBridge loans are short-term loans that bridge the gap between two different closing dates. More commonly used when an existing homeowner sells their home, and buys another home, with two different closing dates. But bridge loans have become a very popular way to take possession of that new home while it’s empty for 2 or 3 weeks to allow for renos. Best of all, it’s really inexpensive!

THE OLD WAY

In the past, most homebuyers would have their selling and buying dates match. It’s always been a bit of a juggling act as you have to pack your moving truck and unpack it, all in less than a day. Somehow, everyone manages to get it done… but talk about one of the most stressful days in your life, moving ranks right up there! Throw in some kids, maybe a dog, and a house full of stuff and you have a real chore on your hands.

THE NEW WAY Continue reading “Bridge Loans… the what and why!”

mortgage brokers the travel agentsof finance

What’s a Travel agent got to do with a mortgage?

mortgage brokers the travel agentsof finance

Some years ago, I did a study on the benefits and disadvantages of online shopping.  Sure, you can order food from your favourite restaurant, buy a new set of earbuds, book a hotel or flight…  but can you get a mortgage online without speaking with your banker or mortgage broker?

Continue reading “What’s a Travel agent got to do with a mortgage?”

Navigate through these uncharted waters in 2020

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In 2009 and 2010, for the first time ever we saw mortgage rates under 2.00%.  That’s right, if you were in a variable rate mortgage, you had a rate under 2.00%. We were coming off the catastrophic US sub-prime mortgage crisis. The financial US scam that cost the world trillions of dollars in lost pensions and investments. Tens of thousands of people lost everything they had. It was horrible. While we, in Canada, were largely untouched. We weren’t smarter, we were just lucky not to be exposed to the subprime mortgages to the extent the rest of the world was. As they say, Canada is five years behind the US, and in this case, we got lucky.

That said, let’s get back to mortgage rates and fast forward to 2020.

Continue reading “Navigate through these uncharted waters in 2020”
Beware of Mortgage Penalties

Beware of Mortgage Penalties

Beware of Mortgage Penalties

I originally posted a breakdown of how mortgage penalties are calculated by different lenders on January 4, 2011.

A recent article outlining how TD Bank charged a $30,000 mortgage penalty to a woman forced to sell her home due to the Covid-19 pandemic shows how this remains relevant today.

WE TOOK THE MYSTERY OUT OF HOW PENALTIES ARE CALCULATED

We decided this needed a more detailed explanation… but a strange thing happened when we started to answer these questions. We made a startling discovery. We caution you – the results could get your blood boiling if you’ve had to pay a penalty!

We found that the banks have shrunk or reduced the spreads between their Posted and Discounted rates on shorter-term mortgages over the past few years… and this has had a huge impact on Interest Rate Differential (IRD) penalty calculations. Continue reading “Beware of Mortgage Penalties”

Financial Outlook with Jean-Francois Perrault, Chief Economist Scotiabank

Following are the highlights from a telephone conversation with Jean-Francois Perrault, Chief Economist Scotiabank and John Webster, President and CEO Scotia Mortgage Corporation which took place on Thursday, April 9, 2020 at 4:30 p.m.

First, it’s not all bad news. While I’ll have to include some unpleasant information in order to provide a complete picture, that is not the focus.

Continue reading “Financial Outlook with Jean-Francois Perrault, Chief Economist Scotiabank”

Dont Panic

How are things?

Dont Panic

Hope this update finds you well.   First, let’s make sure you are okay.  We will get through this.  I guarantee it!  I’ve been through the 2008-09 US subprime mortgage crisis, the SARS 2002 crisis, and the 1990 real estate collapse.  We recovered from all of those terrible times and we will recover from this. I am here to help you in any way possible.  Don’t hesitate to call on me for assistance.

The government has been announcing new programs to provide financial assistance almost daily.   And there have been just as many amendments to those programs as they work to fine tune the programs. 

I want to make sure you are informed with accurate info.  There’s been so much junk articles posted in the mainstream and social media outlets.  Let’s block out that junk and focus on reality.

Continue reading “How are things?”
Q and A | Jenelle Cameron of Remax Hallmark In Conversation with Steve Garganis of Mortgage Architects

Q & A | Jenelle Cameron of Remax Hallmark In Conversation with Steve Garganis of Mortgage Architects

Q&A | Jenelle Cameron In Conversation with Steve Garganis of Mortgage Architects

I participated in a Q & A with one of my good realtor friends, Jenelle Cameron of Remax. We had a chance to discuss the current impact of COVID-19 on mortgages and the real estate market in general. Find out the latest on mortgages, what’s happening with closings during this time, and more!

Continue reading “Q & A | Jenelle Cameron of Remax Hallmark In Conversation with Steve Garganis of Mortgage Architects”
6 month mortgage deferral

6 month mortgage deferral will help, not harm, despite what media say.

6 month mortgage deferralWe’ve all heard about the 6 month deferred mortgage payment option.  It was thrown out there by the government in an attempt to help property owners.  We now have some more info that I’d like to share.

I’m getting a little sick and tired of the media being so negative and pessimistic.  The banks and other financial institutions are offering to defer mortgage payments for 6 months. This is GOOD news. While it might not seem that way if you read some of the media posts, let’s clear things up:

  •  NO, it won’t harm your credit rating.
  •  NO, it isn’t expensive. Read on…
  •  NO, this isn’t automatic. Your mortgage payments will not be forgiven for 6 months without calling anyone. But most lenders are happy to postpone your payments without much fuss.

Continue reading “6 month mortgage deferral will help, not harm, despite what media say.”

Help for small and medium sized business owners

Help for small and medium sized business owners

Help for small and medium sized business owners

The Business Development Bank of Canada (BDC) is devoted exclusively to entrepreneurs.

Here is a quick outline of some BDC Financing Options

Online Financing:

  • Been in business for more than 2 years (at least 24 months of sales)
  • Looking for a loan of $100,000 or less
  • They can fill in the application using the link below.  If they don’t have a rep, leave it blank 

https://www.bdc.ca/en/financing/pages/default.aspx

If you require more than $100,000, there is another program being offered by BDC which the details have yet to come out. Rumor has it will be based on completion of (a) statement of personal affairs form by each shareholder (b) application for financing and (c) last 2 years of financials prepared by a CPA

Support for entrepreneurs impacted by the coronavirus COVID-19

Effective March 18, 2020, new relief measures for qualified businesses include:

  • Working capital loans of up to $2 million with flexible repayment terms such as principal postponements for qualifying businesses;
  • Postponement of payments for up to 6 months, free of charge, for existing BDC clients with total BDC loan commitment of $1 million or less;
  • Reduced rates on new eligible loans;
  • Additional details regarding Business Credit Availability Program (BCAP) measures, including industry specific support, to be announced in the coming days.

View BDC.ca special support initiative to learn more.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Your best interest is my only interest.

Important Mortgage Updates Thursday March 19

Mortgage Updates 03-19-2020

Important Mortgage Updates Thursday March 19

Welcome to today’s update.  

Canada and the banks announced a six month deferral of mortgage payments.  I have been fielding many calls on how this works and the answer is different for each financial institution.  I will be posting updates as they become available. Some of the financial institutions have not yet come out and said they will give a full six months of deferred payments, while others have. It’s still early but I will keep you informed as the details roll out.

Another update on the rates. Fixed rates are up again slightly. Variable rate pricing for new applications has increased as well. Most financial institutions are now offering variable rates at prime (Prime: 2.95%) or just minus .05%. No surprise as stock market jitters is spooking everyone.

This will pass and we will come out okay on the other side of this. That’s my message.  We’re all in this together and we will come out of it together. Call or message me if you need anything. My team and I are here to help.  

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Important Mortgage Updates

Important Mortgage Updates 03-18-2020

Important Mortgage Updates

There have been many changes lately and there will be many more to come. As this is a critical and fast-moving situation, I wanted to get these updates out and will be updating you regularly as we all work through this.

We’ve all heard about the Bank of Canada rate cuts.  Two one-half percent rate cuts in less than two weeks. Unprecedented. And while common logic would dictate that mortgage rates would fall, that’s not exactly happening.

Continue reading “Important Mortgage Updates 03-18-2020”
STOP Beware of Special Offers

Beware of those so-called 'SPECIAL OFFERS' from your Banker or Mortgage Lender

STOP Beware of Special Offers

Stop… don’t sign any mortgage renewal, refinance or other mortgage offer from your banker. It is important to remember that they are not your friend. They are employees of a huge corporation paid to push you into the most profitable product for the bank.  

Here’s what you need to know…

Continue reading “Beware of those so-called 'SPECIAL OFFERS' from your Banker or Mortgage Lender”
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