Skip to content

CategoryMortgage Products

Posted Bank News

Collateral Mortgages… a different 50 shades of grey!

handcuffs In 2010, TD announced they would begin registering ALL new mortgages as a collateral charge.  The sale pitch was that it was good for the consumer.  It would allow TD clients to borrow more, in the future, without having to incur new legal fees.  Yes, that part is true.

But they’ve left out a lot stuff, too!   For years, Mortgage Brokers and other unbiased financial professionals, cautioned the public about collateral mortgages.    And in 2013, CBC Marketplace did an expose on TD and their retail branch’s lack of knowledge and disclosure.   Is this where you want to go for your mortgage?TD

By the way, TD wasn’t the only Bank to go with collateral charge only.   ING made the same move in Dec 2011.  And they used a similar sales pitch.   But my readers have been hip to this and aren’t getting fooled.

The federal govt was pressured into taking action to protect consumers.  In Sept 2014, the federal govt announced ‘more disclosure.  But have the Banks really given us more disclosure?   Continue reading “Collateral Mortgages… a different 50 shades of grey!”

Posted Bank News

NO SET UP COSTS!! Secured line of credit at Prime plus 0.50%!

canadian-money-giftA few months ago, I announced a special promotion.  A secured line of credit, at Prime plus 0.50% (2.85% plus 0.50% = 3.35%) with NO set up costs.  The response has been so overwhelming that I’m publishing this promotion once again.

FREE legal fees and FREE appraisal fees.  The Bank is covering both these costs.   You pay nothing.  $0.00.  It’s just that simple.  AND, this Bank will go in 2nd position behind your existing 1st mortgage if necessary.

You must qualify, of course.  Good credit, stable income, qualify real estate, etc.   If you are interested in this product, contact me for details.   This is a limited time offer.  We do not have an expiry date but it can be terminated at any time.

Brokers and Agents, please do not call.  I am not able to share this offer with you.  Sorry.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

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 1 Comment on Long term is almost always more expensive. Mortgage News

Long term is almost always more expensive.

long term contractsEver wanted to change cell phone providers?  How about internet providers?  Move your investments or rrsps?  Cancel that hydro or gas contract because you moved?

And how about mortgages?  When interest rates started heading down about 4 years ago, thousand of borrowers in fixed rate mortgages wanted to get out of their higher rates and start benefiting from the record low interest rates.

But borrowers were shocked to hear of unbelievably high early prepayment penalties…   Penalties of $15,000, $20,000, $30,000.    One recent situation had CIBC charging a $33,000 penalty on a $500,000 mortgage.  I’ve seen dozens and dozens of situations like this.   Almost all of these high penalties were from one of the BIG SIX BANKS…    Continue reading “Long term is almost always more expensive.”