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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. Continue reading “Darryl Sittler made his fortune in real estate, not hockey.”

Posted 2 Comments on Self-employed and can’t prove all income? There’s a new mortgage solution. Mortgage News

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

Posted 3 Comments on A 2nd mortgage? Yes, this option can save you money. Consumer Debt

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! Continue reading “A 2nd mortgage? Yes, this option can save you money.”

Posted 2 Comments on Is your banker giving you their best rate? Case study

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?

Continue reading “Is your banker giving you their best rate?”