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Your Doctor Uses a Mortgage Broker!

Blog Image, Doctor, September 2018

Would it surprise you to learn that your doctor uses a mortgage broker? Well, it’s true – doctors use mortgage brokers all the time.

In fact, I personally have an extensive list of medical professionals as clients, including family doctors, specialists, dentists, veterinarians… and the list goes on.

So, why would these high-income earners use a mortgage broker?

Continue reading “Your Doctor Uses a Mortgage Broker!”

Looking to boost Cash Flow? New Flexible Mortgage could be a game-changer!

Blog Image, Interest Only Flex, July 2018There’s a great new flexible interest-only mortgage product that could prove beneficial for a number of borrowers, including first-timers, real estate investors, professionals, seasonal workers and others looking for lower monthly mortgage payments.

Designed to help borrowers increase monthly cash flow by providing maximum flexibility, this product can be used for both purchases and refinances.

I recently tried this product out and was really impressed!

Continue reading “Looking to boost Cash Flow? New Flexible Mortgage could be a game-changer!”

Looking back 5 years.. which mortgage product did your Banker recommend in 2008?

greedy bankerRemember 2008?  It was almost 5 years ago that the U.S. sub-prime mortgage scandal erupted.   October 2008, to be exact.  That’s almost 5 years ago…  And with October and November 2013 renewals being less than 120 days away, we can now lock in some rates for those upcoming renewals.  So I thought this would be a great time to see what sort of advice and recommendations the Banks were giving to their mortgage customers.

THE BANK’S ADVICE

The funny thing is, Banks have never changed their advice or strategy.  ‘Take a 5 year fixed rate’.  That’s all the Banks seem to want to promote.  And with good reason… it’s the most profitable product FOR THE BANKS.   But historically, it’s NOT the best product to take.   There is no historical data that I am aware of that shows taking a 5 year fixed is the best strategy.  But I’ll get into that in more detail later. Continue reading “Looking back 5 years.. which mortgage product did your Banker recommend in 2008?”

Mortgage Broker vs. Mortgage Specialist

Getting calls on this topic once again so I thought I’d clear the air on this very important topic.   So what’s difference?   They both arrange mortgages…. and both can offer advice and product select, right?  WRONG!!!.   The differences are a plenty….I’ll cover the more relevant ones here.

I’ll start with the a quote from a recent Bank of Canada study that tells the story very clearly: “… borrowers who use a mortgage broker pay less, on average, than borrowers who negotiate with lenders directly.”   click here for the entire study.

I can probably stop writing after that statement but I wanted to point out a few more things:

  • A Specialist works for one Bank or a single Lender.    They are employees of the Bank or Lender.   They can only offer you one brand of products.
  • A Broker is independent.  They are not employees of any Bank or Lender.  They can offer products from several different Lenders.
  • More Lenders competing for your business means betters terms and rates.
  • A Specialist isn’t required to be licensed to arrange mortgages.   There are no standards for educational requirements (although most Lenders do provide some in-house training).   
  • A Broker must successfully complete a Provincially regulated Broker course and continue to maintain their good status to keep that license.
  • A Broker can provide unbiased advice.  They work for you, the borrower.

Look, you wouldn’t ask Burger King who makes the best burgers and expect them to say Harvey’s?   So why would you ask a Bank Mortgage Specialist to tell you which Lender has the best mortgage product for you?   Enough said.

Banks and Lenders are great suppliers of money, but they can’t give unbiased advice.  They can only offer you their products…and they will try to charge the highest rate possible…  but that’s okay.  They are a business.  And they will always try to maximize the profit for their employer, the Bank.

If you would like to compare mortgage products and rates, call your Mortgage Broker.

Don’t have one?, then call me.  I’d be happy to help.

Steve Garganis

416 224 0114

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