Flex Down

For those who don’t know there are other options to securing your down payment to buy your first home. Sure you can pinch pennies and save your hard earned cash. You can also receive it as a gift from your blood relatives ( mother, father, sister, brother) or incase you don’t know you can borrow it.

Yes you can borrow your down payment. This can come from arms length sources such as your line of credit, a personal bank loan, or lender credit. The loan payments must fit into existing debt service calculations, meaning that your GDS/TDS must not exceed 39/44 which are the existing limits.

You must have strong credit ( above 700 beacon score) and have the necessary 1.5% deed transfer tax from their own resources. This can be used to purchase a single family home or a duplex. However non arms length loans are ineligible. Such as builder or realtor incentives or loans that impact the purchase price of the property.

Please let me know if this is an option that you would like to consider. Remember even though this is a way to get into a home sooner it does come with higher interest rates than if you had saved up the money on your own.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Setting Records

We are setting records all across the country lately. However these seem to be more of the unfortunate records than the ones we can be proud of accomplishing. Records are being set daily now for the amount of Covid-19 cases we are seeing. Records levels of hospitalizations and record levels of restrictions.

Towards real estate the business that I am personally associated with on a daily basis, there are records here as well. We have record levels of home prices, up over 25.3% year over year. We also set a record for the amount of transactions across the country at 630,634 which is an increase of 14.158% versus the previous record year, and this did not include Dec of 2021. All of this while we experience record low levels of listings available for new buyers, which further pushes up the prices.

So now instead of focusing on the records which are not going to serve us, we should focus on setting some personal records of our own. Set a record of focusing on your family during the holidays by putting aside your electronic devices. Focus on getting along and love and compassion as we can all use more of that. Lastly focus on becoming the best version of yourself for now and into the future.

Today I am thankful for a refreshing walk with my dog earlier today, for my friend in Montreal who is celebrating his birthday today and for my gift wrapping helper who made it much more enjoyable.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

No Way Home

First off I have to admit that I am a huge geek or nerd or whatever you call us who love sci-fi and superhero movies. I am extremely lucky as my wife also likes them as well. We went to see the new Spiderman No Way Home last night, yes fully masked and distanced. No spoilers here but just stay till they turn the lights on as there are two post credit scenes.

Now about the home part of my post. There was plenty of talk this week as OFSI ( office of the superintendent of financial institutions) was meeting to discuss any changes to the mortgage qualifying rate, which is currently at 5.25%. Luckily for the future homebuyers there was no change to the qualifying rate today, so it is staying at 5.25%. So any changes to this rate would really effect affordability for future homebuyers.

So although Spiderman came home then went far from home and now has no way home, there is in-fact still a way for you to own your own home. See what I did right there! With the qualifying rate staying the same, this means that there is no changes to affordability. So even though the real estate market is very hot and homes are selling as fast as they are listed, they are not going to try to cool it off by changing how much house you can afford. Covid may in-fact have other plans for the market but we shall see.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Happy Clients

Happy Clients is what drives any successful business. Focusing on the commission may only get you one single transaction, but focusing on exceeding your clients expectations will bring you many many more. Sure the commissions are good in this line of work, but I prefer to focus on building relationships and exceeding expectations.

There are many brokers across the country who spend a considerable amount of time and money to generate leads through internet marketing with Facebook, Google or LinkedIn. This is a very expensive endeavour that gives very poor results. I find it is best to focus on building relationships with referral sources and past clients. That way the people they refer to me are pretty much pre qualified and come already committed to doing business.

We all like to go out to eat, see movies or read great books. These are all much easier to discover when referred by people you trust. This is why it is so great to be referred by all my great clients and referral partners.

Today I am thankful for the nice person who paid for my daughters lunch at McDonald’s yesterday, clients and referral sources who continue to think of me for their friends and family and talking with old friends on their birthday’s.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

The rate game

When the first thing that you talk about with clients is rate, then you have just limited yourself to being a rate broker. I told another broker on our national facebook group that if you do this you have to be prepared to live by the sword and die by the sword.

Actually rate will not dictate your final payment as much as amortization. If you are buying with 20% down or more you have the choice to extend your amortization out to 30 years. This is also available if you are refinancing. Doing this will help lower your overall monthly payments as well.

There is more to a great mortgage than just the rate. You need to consider flexibility like pre payments privilages, portability, and potential penalty to break the contract.

Today I am thankful for the slower pace on the weekends, being able to take a nap and still get what I want done accomplished and it was cool and crisp for an early morning run.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Mitigate your risk

With all the talk about possible impending interest rate increases in the new year, there is still a way to have your cake and eat it too. As it stands today lender are still offering deep discounts on variable rates. For example a AAA client purchasing and putting down less than 20% may get access to prime ( 2.45%) less 1.3%. This means your new mortgage would start at 1.15%. This is pretty sweet considering the same 5 year fixed rate is around 2.59%. So you start off at a discount of 1.44% compared to those who take the fixed rate.

While I have no crystal ball and can not predict what the governor of the bank of Canada may do. It would take quite a few interest rate increases to even meet the current fixed rate of 2.59%. This is because when the bank of Canada has moved the rates in the past they are normally at .25% at a time.

So the best way to mitigate your risk and get access to the best rates on the market ( for those who qualify), is to go variable and set your payment as if you took a fixed rate. So for example a 400K mortgage at 1.15% will give you a payment of $1,534.30 ( 25 year amortization as well). By setting your payment at the fixed rate of 2.59% you will pay 1,809.84. The $275.54 extra that you are paying goes directly towards your principal further reducing your mortgage by 4.3 years and saving you $10,726 in interest. There is a link to my mortgage calculator below, where it says mortgage app.

Today I am thankful for warm chocolate challah bread which was the best post workout snack ever, the opportunity to practice my french yesterday which always makes me feel better and Christmas music in every store.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Meeting Request

Earlier this week on the regular mortgage mastermind group that I attend with Dustan Woodhouse. He asked the group what are you doing different now vs prior to the pandemic. The most common response was that we are not doing any more face to face meetings. 20 years ago when I started it was the common practice. However with that practice comes the down side of lost productivity time.

To meet someone in person requires that you leave the home office up to 30 minutes beforehand to allow yourself to arrive on time and so you can find a place to park. Showing up late is not in my vocabulary. Take a few minutes for chit chat and then talk about the important stuff and lo and behold the meeting takes about an hour. So now with the commute back in possibly rush hour traffic has now resulted in a loss of 2 to 2 and half hours of time. All of which could be accomplished by meeting virtually or over the phone.

I am more productive staying in the office and working on getting my clients files approved and finalized than running all over town. I mean no offence to say this as my clients and referral are wonderful people, it’s just that in 99% of the time we don’t have to meet in person. To meet virtually is actually a very easy process, just click here and pick a time that works for you and make sure that your camera is on so we can connect.

Today I am thankful for meeting up a friend that I have not seen in a very long time yesterday, neighbours homes starting to look festive and options for clients when others had said no.

“The least productive people are usually the ones who are most in favour of holding meetings.” Thomas Sowell

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Google it

If you don’t know something you Google it. Yes the company with the same name has also become a verb describing the action of searching for information online. If you want to learn how to cook, you Google it. The same for working out, learning a new language, buying insurance, buying a new home or getting a mortgage. It ( and countless cat videos ) are all on line for your browsing pleasure.

However like in Captain America Winter Soldier, your life is a digital book and most of it now is online. Your prospective employers don’t just call your references, they also check you out online. The same can be said for your prospective romantic partners. Only the naïve will take what is presented on the dating app or site at face value. If they are smart they are also confirming the details by doing their own research.

All of this brings us to mortgage lending. We frequently know more about our clients lives than their employers, friends or even spouses as we have to have the complete financial picture in order to secure them financing. All of this requires full disclosure on the client’s behalf about their past. So if you think that redacting out parts of your bank statements as you don’t want lenders to know where you have spent your money will help you, it won’t and usually results in an automatic decline. These same lenders are also checking into you online. Sadly Google, Facebook and Twitter don’t forget your past indiscretions, so please disclose them upfront so they can be dealt with properly, and not surprising us at the end when the lender does it.

Today I am thankful for frank and honest discussions with clients, great conversations with other dog owners on my morning walk and to my American friends their Thanksgiving.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Know your numbers

When buying a property which is often your single largest invesment in your life, it’s a good idea to know your numbers backwards and forwards. In this article I am going to talk about deposit on purchase.

Deposits are required on purchase & sale agreements when you become the successful bidder on the property. It shows that you are serious about buying the property and illustrates what you are willing to lose should you break the legally binding contract. While there is no fine line about the amount of deposit required, generally it is between 5-10K and is due shortly after you have become the successful bidder.

These deposits are held by the vendors (seller) agent’s brokerage in a trust account. These deposit are not used by the brokerage for any expenses and are frequently audited to confirm this. Brokerage are required to insure the deposits up to 100K to prevent lost due to the unlikely event of the insolvency of the brokerage.

Lastly your deposit forms part of your down payment and closing costs upon closing. Please confirm this with your solicitor upon closing and check to make sure that it has been recorded as part of the statement of adjustments.

Today I am thankful for underwriters who have gone above and beyond to insure that file close, clients who are patient with the process and the sound of rainy days.

“Nature is written in mathematical language.” Galileo Galilei

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Fixer Upper

In more normal real estate markets, people would look at several homes and then buy the one that was perfect for them. Show up on the day after it closed with all their suff and carry on with their lives. In today’s real estate market with next to no inventory, people are bidding on the first property they find with the hopes that their offer will be excepted.

This is also resulting in getting homes that are less than perfect for them. Kitchens from the the 1970’s, wall to wall shag carpet and general funky design themes. However these home are still selling for top dollar and most if not all cases well over the list price. In addition to these issues people are also wining the bid on homes with some serious issues that in almost any market would cause people to walk away.

Instead of walking away they are closing on these properties. This means that the day after close what ends up happening is a huge dumpster shows up in the driveway so the new owners can gut the property so they can make it perfect for them. Also well, septic and other structural issues are being added on to the purchase price as purchase plus improvements. Cause if you let the house go, it could take you months to find another one. So they just fix what needs to be fixed and carry on with life.

Today I am thankful for my lenders who have such incredible products that allow my clients to purchase and fix their new homes, past clients with new projects and the first snowflakes of the year.

“If you can’t find happiness in the ugliness, you’re not going to find it in the beauty either.” Joanna Gaines

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here