Teamwork

Your mortgage like most things in life takes a team to make happen. It is more than just you and me. Here are some of the players on our team.

Myself your broker- I help you complete the application and assist you in getting your documents together. Review all the supporting documents ( credit, income, down payment, purchase & sale and employment confirmation) to make sure that we have everything that is required. Present client mortgage & lender options. Submit to the lender for approval. Communicate with the lender & fulfilment specialist at the bank to make sure all the documents are signed off on for the loan request. Order your appraisal if necessary. Get your approval package prepared and signed by you the client. Make sure your file meets compliance standards. Touch base with your solicitor or notary to make sure they have received the closing documents.

Underwriter- reviews (& hopefully approves) your loan request to make sure it meets the lender’s guidelines for credit, income & location. All of which I would confirm in advance as well.

Fulfilment specialist- they review and sign off on all the supporting documents for the loan. This includes income, down payment, commitment and purchase & sale agreements. Conduct verbal employment confirmation with employers.

Reator- In this market they are superstars. Once you are official pre approved they then proceed to show you every available listing in your price range and then run you all over town & province if necessary to show you the properties. Present offers ( in this market clients have been know to have placed upwards of 15-20 offers before getting one to stick). The forward me the offer, listing cut, amendments and taxes once they have an accepted offer so I can get it approved. Assist coordinating the property inspection if necessary ( some are waiving this to secure the offer but I don’t think that is wise). Final walk through inspection with client prior to close.

Solicitor- Receive mortgage documents from the lender. Review with clients at signing appointment. Collect down payment, deed transfer and property taxes. Register the new mortgage.

I am sure I am leaving people and roles out of this process but I just wanted you to know the teamwork that is required to get your file across the finish line and into your dream or forever home.

Today I am thankful for all the great team players that I work with on a daily basis, the Realtors in this competitive market are really superstars for their work and patience and for the clients for persisting till they finely find a home. Thank You.

“None of us, including me, ever do great things. But we can all do small things, with great love, and together we can do something wonderful.” – Mother Teresa

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

Be Caring

In a very competitive fields like mortgage brokering, car sales, financial planning or real estate sales, where most of the established agents have a similar level of knowledge. Clients are attracted and retained not by how much you know as the playing field is pretty level after you have been doing it for a while but by how much you care.

I tell prospective clients upfront that I want them to be comfortable dealing with me. There are many choices in this marketplace and we all have access to similar rates and lenders but what truly separates us is how we care for our clients. This is why I treat my clients how I want to be treated, and have been very fortunate to work with those I have worked with and am thankful for all their 5 star google reviews.

Today I am thankful for all the kids and their costumes who came to visit us last night, my clients and all their great reviews and the bowl full of left over halloween candy.

“Nobody cares how much you know until they know how much you care.” Theodore Roosevelt

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

All said and done

When all is said and done then you can put your guard down and celebrate. However beware of premature elation. You financing is not complete when the vendor accepts your offer. It’s not complete when your mortgage request has been approved. It’s not complete when all financing conditions have been approved.

It is only complete when your solicitor/lawyer/notary has received the funds from the lender and dispersed them and you have received the keys. Only then can you finely celebrate and then look at getting the new car that you have been putting off or the appliances that you needed. Not before.

This is because there have been so many horror stories about clients going and financing a new car after they have gone firm on their home purchase thinking all was said and done. Only to find out the the lender does a second credit check just prior to closing and now their debt service was out of whack. Don’t let this happen to you.

Today I am thankful for seeing deer for the 2nd morning in a row on our morning walks, calls from friends overseas just as my day was starting and their’s was finishing and what was perceived as a mountain of a problem turned into a molehill.

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” ~ John Quincy Adams

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

Mortgage Math Revised

A few years ago I wrote a post about how you can calculate out your own debt service and figure out on your own how much house you can afford. A lot has changed since I published that in 2015, so today I wanted to update a few key components to that prior post.

Insurer’s ( CMHC, Sagen & Canada Guranty) have revised the debt service requirements ( GDS/TDS). See the prior post for the definitions. What was once the limit at 32/40 has now changed to 35/42 and up as high as 39/44. Note that these new limits are based on your credit score. If your beacon score is between 650-680 you can now qualify for 45/42 and those over 680 beacon scores can now qualify for 39/44.

Also one must not forget the fantastic qualifying rate of 5.25% that all mortgages must qualify for even though the current rates are much much less.

So here is a quick example. Say that your engineering job pays you 70K per year and you have 750 beacon score. Let’s assume for now that there are no other outside debt to make the example easy. 70,000/12=5,833.33 X .39 = 2,275. This is now your maximum mortgage payment for GDS before household expenses.

Now for TDS the process is the same but with a different ratio. 70,000/12 = 5,833.33 X.44 = 2,566.66. This is now your maximum payment for TDS before household expenses and debt payments.

To figure out what your maximum mortgage you can afford, you take the lesser of the two ratio’s which in this case is 2,275 and divide that by the the qualifying rate of 5.25 and multiple that by 1000. So 2,275/5.25 = 433.33 X 1000 = 433,333.33. This is your maximum mortgage amount.

“Pure mathematics is, in its way, the poetry of logical ideas.” Albert Einstein

Today I am thankful for the beautiful fall colours, the crispiness in the air and the feeling of euphoria after a great 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

Get it in writing

Important events in your life should always be received in writing. A handshake is good for a greeting not for a formal agreement. I had a prospective client call me yesterday and tell me that the previous broker they worked with got them pre approved but that they had never received it in writing.

Job offer’s for any reputable company are always received in writing. Part of the marriage ceremony is to sign your marriage certificate. If you go into business with someone you enter into a partnership agreement. When I take on commercial clients I have them sign a mandate agreement. Most importantly when you buy real estate you need to get it in writing.

Also to illustrate this is that your pre qualification is only a rough calculation of what you can afford based on what the clients disclose. A pre approval is NOT a pre approval unless it is received in writing. In writing it will have the rate that is being offered, for how long it is held for and the amount of the pre approval.

Today I am thankful for crisp cool nights and still some warmth in the afternoons, getting to practice my french during my daily calls and the new licensing process is almost complete.

“Do one thing every day that scares you.” Eleanor Roosevelt (she was awesome)

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

Sales process

One of my colleagues recently told me an interesting stat. He said that 74% of people find their realtor because they called them back after they made several calls to agents to enquire about their services. I find that surprising for a service that is 100% commission. I know we are in a very busy real estate market but wouldn’t you want to call everyone back?

If one were to simplify the sales process, it would be down to prospecting, following up and following through to close. It has historically always been harder to find the prospect then to make the sale so why are so many people not returning phone calls or email enquiries? My wife and I went though this a few years ago when we were shopping for a new car, we must of visited 8-9 car lots and test drove a few different models. However we went with the person who followed up with us and seemed to want our business.

Whether you are looking for a realtor, mortgage broker, financial advisor, insurance agent or heck even a new car. In every major centre you have your pick of where to go so make sure that the person that you are dealing with truly wants to help you and has your best interest in mind.

Today I am thankful for the people who have called me back after I have called enquiring about their services, the clients who take the initiative to make the first call and the time and energy that is saved by having people reach out to you.

“Diligent follow up and follow through will set you apart from the crowd and communicate excellence.” John C Maxwell

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

It’s not over till

It’s not over till the fat lady sings, or in the case of your mortgage till your lawyer receives the funds. So just because you have received a file complete on the purchase of your new home, it does not mean that it is time to go on a shopping spree and go wild. The lenders continue to work on your file behind the scenes up until your closing date.

Any material change that you make from the date you received word that all your conditions were met until the closing date may in-fact effect your ability to close the transaction.

Here are a list of 10 things in no particular order of what NOT to do prior to closing on your new home.

  1. Don’t quit your job.
  2. Don’t suddenly become self employed
  3. Don’t commit a crime or get arrested
  4. Don’t finance your furniture
  5. Don’t finance a new vehicle
  6. Don’t get divorced
  7. Don’t go on a spending spree on your credit cards
  8. Don’t close any credit accounts
  9. Don’s apply for new credit
  10. Don’t increase the limits on existing cards

“Before you attempt to beat the odds, be sure you could survive the odds beating you.” Larry Kersten

Today I am thankful for a smooth closing, a starry sky during our morning walk and new applications that come in while I was asleep.

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

Rate change

Last night I received notification from several of my lenders that they were reducing their 5 year fixed rate. Depending on the lender reductions were anywhere from 10 to 40 basis points. Remember one hundred basis points = 1%. However you know what did not change? The variable rates did not change. This is because the variable rates are based on the bank of Canada prime lending rate and the fixed rates are based on bond yields.

If you are renewing your mortgage or buying a new home, I always ask my clients if this will be your forever home. If the answer is yes then there is nothing wrong with the fixed rates. However most 5 year mortgages are broken around the 38 month mark of the 60 month term. If you are on a fixed rate this will possibly trigger a large interest rate differential penalty.

Since the Bank of Canada meets only 8 times a year to discuss monetary policy and the last time they increased the prime lending rate was Oct 30th of 2018, I am putting my own mortgage on variable this time. This along with the fact that if I needed to break it at any time the penalty will be only 3 months interest. The choice is yours to make, as your trusted advisor I supply you with the information you require to make the best decision.

Today I am thankful for the kindness of strangers at Costco this morning, my dog seeing his favourite other dog on our morning walk and funny texts from my brother on his birthday.

“The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking.” -Albert Einstein

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

Trusted Advisor

To me it hasn’t seemed that long ago when if you had car trouble someone always had a guy who could fix it at his place. It didn’t matter if it was as simple as brakes or a complicated as major motor work, it was all possible in someone’s back yard. Now vehicles are so complicated it is in your best interest to trust the repairs to the experts at the dealerships or major garage networks.

The same can be said for your taxes. If you were self employed like I am you kept all your receipts in various shoe boxes and worked through them at the end of the year in the hopes that everything made sense. Now it is best to seek the expert advice of a competent tax specialist or accountant. Also no more shoe boxes, everything is tracked with state of the art online accounting software and filed electronically.

Also some times you think that you know the right thing to do but in hindsight you didn’t. Dealing with a trusted advisor or expert is in your long term best interest, whether it be for your car repair, taxes, financial planning or yes even your mortgage. There is more to consider when deciding on your mortgage than just the interest rate. You need to consider term, fixed or variable, amortization, pre payment privileges, post closing support or portability.

“From my experience, the best advisors help in three ways: encourage you to look at the problem or opportunity from multiple angles; help you balance the tug of the short-term with important long-term priorities; and ask the tough questions you need to know to reach the best solution.” Margo Georgiadis

Today I am thankful for the advice of experts for challenges that came up recently, for how much better I feel knowing I have competent people to help me and for the change of pace the weekend brings.

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


Request Declined

Sometimes it happens that your mortgage request has been declined. More often than not this is an opportunity to restructure the request and start again. See if any debts can be repaid, have you included all the assets and properly explained the sources of income and all your debts? Can you increase you down payment or have someone co-sign with you to strengthen the file. Or better yet does it qualify for an exception?

Don’t give up hope just because you ran into a brick wall with one lender as there are plenty of other lenders who may be able to assist you with your mortgage request. There are lenders for the self-employed, high net worth, less than perfect credit or if you have foreign assets or income. I have frequently found that persistence does pay off so don’t take the 1st no as tragic or permanent.

“It is during our darkest moments that we must focus to see the light.” – Aristotle

Today I am thankful for the fact that there are always more options than problems, that rejections and failures are not fatal as they are opportunities to learn more and better for next time and that the traffic jam on the bridge had cleared up by the time I need to go back to Halifax.

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