Stress Test

The purpose of a stress test is see if you have any weaknesses that need to be addressed. Like those who have heart disease and are required to jump on the treadmill to see how their heart responds to exercise, we have a stress test( since Jan 2018) for those looking to purchase a home or refinance their mortgage.

The purpose of the stress test for your mortgage is just to make sure that you will still be able to afford the payments in the event that mortgage rates increase rapidly. Until rather recently the rate used for qualification was 4.79%. While fixed and variable rates are much lower than this rate, it is used as a benchmark to make sure that you can still afford a mortgage if rates were to increase to that point. Now the government ( more specifically The Office of the Superintendent of Financial Institutions or OFSI) took action and changed the qualifying rate to 5.25% or the mortgage contract rate +2% whichever is greater. These changes take effect as of June 1st/2021.

What this essentially does is decrease your buying power by about 5%. Now I don’t think it will do anything to address the overheated real estate market. The problems that we are facing today have to do more with a overwhelming lack of supply rather than people spending more than they can afford to get into a home. Yes I know ( cause I am doing one for a client right now) that CMHC has programs available for developers of multi unit properties where they will finance up to 95% of costs if a certain percentage of units are deemed affordable housing units. However at the rate that these new developments are coming on the market it may take years for our real estate market to balance out. So tit tight, hang on and enjoy the ride.

Today I am thankful for a refreshing light rain during my morning run, reminders that come up in my calendar just in time to make sure that I don’t miss important events and a wonderful sales book written by an author that left us far too early.

The greatest weapon against stress is our ability to choose one thought over another. –  William James

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

Liar, Liar

What’s the age old expression, liar liar pants on fire. Let’s face it as humans we have all told a white lie from time to time. From did you do this to who ate the last cookie. I am not suggesting that you lie, exactly the opposite I am going to show you the consequences if you do. I am going to cover three areas and how lying can effect you and those around you.

People lie to impress a potential mate or flat out lie to someone that they are in a committed relationship with. The end results of either situation are the same whereby you lose their trust and now are no longer in a relationship with them.

People lie to gain employment. They lie about past experience on their resume, hoping that nobody will notice and that if they get their foot in the door they can prove their worth and it will all work out. Companies protect themselves by screening applicants and if hired placing them on probationary periods so they can prove that they are good fit for the role and culture.

People lie to get a loan or a mortgage. In this instance it’s called fraud. People try to create their own job letters, alter their bank statements or tax forms. All this in an effort to get a loan that they would otherwise not qualify for. This is why I underwrite each file prior to sending it to the lender. Lender’s also google applicants and call each and every employer to verify information that was provided.

“If you tell the truth, you don’t have to remember anything”. Mark Twain

Today I am thank for for my wife picking me up just after the lighting started flashing last night as I was out on a tree covered trail walking our dog, wonderful neighbours with great advice and having several “Rock Star” referral sources they know who they are. Rock on!

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

Hurry Up, and Wait!

The mortgage business like many others is filled with moments of hurry up and wait. Hurry up I need you to take my mortgage application, but have to wait to receive the supporting documents in order to submit it for approval. Hurry up and get me approved, but have to wait for the underwriter to review the file and approve it. Hurry up and get all the conditions met so I can advise my realtor, but have to wait for the fulfilment specialist to review all the documents.

As much as we and clients want things done yesterday, things take time. I find that the process proceeds much more smoothly when expectations are set in advance and advised what the timelines are for various stages. This is also why I request a full document package up front and upon submission so this minimizes any potential surprises and allows for a much smoother transaction.

Today I am thankful for receiving my 1st shot of the Pfizer-BioNTech vaccine, actually having access to a vaccine at all to fight this pandemic and being up before all the jackhammers started going this morning.

“Sure enough even the waiting will end…if you can just wait long enough.” William Faulkner

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

Bridge the gap

Private loans or often called bridge loans help bridge the gap between your current situation to a better situation. Weather this be because of less than stellar credit, the sale of a property or the completion of construction. Private mortgage financing serves a valuable purpose to help make financing possible when everyone else is saying no.

What private mortgages are not are long term loans. They are called bridge loans for a reason. They are priced based on risk and also the pricing is an incentive to exit the private loan as quickly as possible. With interest only payments and hefty renewal fee’s, if left unchecked you could be eating up what equity you did have if your situation did not improve enough to pay them out. This is why it is fundamentally important to know your exit strategy ( how you pay them off) upon entering into a private loan.

If you need access to private mortgage financing for whatever reason, please reach out to me so we can determine if that type of financing is a good fit for you or your situation.

“Risk comes from not knowing what you are doing”. Warren Buffett

Today I am thankful for a great new podcast that I discovered from NPR called “How I built this“, my son’s class which the project was to make a healthy breakfast, private lenders who know how to turn around important files very quickly.

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 about the mortgage!

Yes I am a mortgage broker and have been one for just over 19 years now. When clients come to me they aren’t just looking for a mortgage ( which translates to roughly death pledge from old french). In actuality they are not coming to me for an interest rate either, although some are steadfast that it is very important to them.

What they really want is access to capital to allow them to purchase or refinance a home. The mortgage is just a tool to make that happen. It’s similar to people who go to the hardware store looking for drills, they don’t really want a hand held machine but they really want is something to make holes of certain sizes.

The same can be said about the general public’s fixation on interest rates. Yes great rates are important, but isn’t what you care about the most is the amount of the payment coming out of your bank account? Amortization or the length of the life of your loan has a greater effect on the size of your payment that just the interest rate.

Financing your home is an important decision, don’t leave it up to people who may give you substandard advice. Talk with an expert who just does mortgages so you will get the best advice possible.

Today I am thankful for a dark raining morning where even the birds slept in, a quiet walk with my dog as most of the walker and runners took the day off and an ethernet adapter that arrived quickly from Apple.

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 Surprises!

Let’s face it there are people who like surprises and those who don’t. There are also good surprises and then there are bad surprises. Good ones include surprise birthday parties, surprise gifts, promotions and winning lotto tickets. The bad ones include but are not limited to larger than normal power bills, flat tire on your car the day or your big interview, in-laws showing up un announced and the worst one in my industry is mortgage discharge penalty surprises.

The best way to avoid these bad surprises is to be prepared. Have an account with 3 months pay for emergency expenses like your surprise power bill or your flat tire ( sorry I can’t help you with the in-laws). Now as for your mortgage discharge penalty. The best way to avoid an interest rate differential penalty is to have a variable rate mortgage as they come with only a 3 month interest penalty. In declining rate market like we have been for the last 10 years or so you are more often than not be hit with an interest rate differential penalty when going to break your fixed rate mortgage.

To lessen the blow of a whopping high penalty stay in touch with your lender leading up to a potential break of your fixed mortgage as IRD penalties will change from month to month. But as I have said if possible go variable so you can protect yourself from any potential sudden surprises when you need to break that mortgage.

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

Pay the price

There is a cost for everything . You want to be in better shape, are you willing to pay the price of the hours of training and nutrition planning. You want to run a marathon, are you willing to do the training required to do that. You want a better ( or to be in a) relationship, are you willing to put in the time and effort that it takes to have a great relationship.

Free is for losers. You don’t want free, you want and the best of everything. There is a reason why it takes so many years to become a Doctor and only 3-4 for your average degree. Those people pursuing their doctorate are paying the price with their work ethic and their dedication.

The same applies to mortgage financing. Not everyone qualifies for the lowest rates. You must have above average credit scores to do that, and to get those you have to work at it. That is only one part of it as you also need the income required to qualify for that rate and that too requires work.

When you are willing to pay the price and put in the work almost anything becomes possible.

Today I am thankful for the rush of endorphins from a good workout, great conversations with people I am calling through the day and early morning sunrises when everyone is still asleep in my house.

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

Gratitude

To say that we are in the midst of a challenging time in our lives is without question. However when you really think about it, there is still so much to be thankful for. My friend Steve Foran has a company called Gratitude at work. He works with companies helping them incorporate gratitude into their daily operations. He also sends out a wonderful day newsletter with new things to be thankful for everyday.

In no particular oder here are just a few things I am thankful for today:

I am thankful for the health of my family and friends specially during this challenging time.

I am thankful for the ability to work from home as well as my wife.

I am thankful for waking up to the sounds of the birds.

I am thankful for rewarding and meaningful work.

I am thankful for a 50K bike ride with friends on Saturday ( yes less than 5)

I am thankful for seeing such a large turnout for asymptomatic testing this weekend in Nova Scotia. All our family got tested. Together we can all do our part to beat this virus.

I am thankful that we do have vaccines that will help end this pandemic.

I am thankful for my dog, when ever I may not be in the best mood he always smiles and wags his tail at me.

I am thankful for kind and compassionate people that I have met in the mortgage finance industry here in Canada.

I am thankful for my clients who have entrusted me to help them finance their current home or their dream home.

I would love to hear what you are thankful for as well.

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).

Condition free offer’s

In a normal world real estate purchase and sale agreements come with conditions. Typically there are conditions for a property inspection, window coverings, air conditioning or heating equipment and of course financing. However since 2021 real estate market is unlike any other year, many people are writing condition free offer just to improve their changes of becoming the winning bidder.

However as I wrote about back on March 11, this may not be the best idea for most people. There are exceptions to this when your net worth far exceeds the amount of your new purchase. However other than that I would not advise it as there are too many potential landmines.

So when clients and or Realtors ask if they can submit a condition free ofter, my answer is the same if they asked to play blindfolded in traffic. I can’t make that call for you, nor will I be held responsible if you place a condition free offer. Just because you are pre approved does not mean that the lender will in fact like the property that you have picked out. While I can’t prevent you from going condition free, all I can do is help you get your financing secured as quickly as possible.

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).

Time Flies

How does the expression go, “Time Flies when you’re having fun”. But you know what, it also flies when you are hard at work. Plan your day and work your plan and it will go much better. Start each day with an objective and it will also make it more fun and challenging at the same time.

The past is gone and the future hasn’t happened yet so put all your attention on your present moment and make the best of it.

Think of all the years passed by in which you said to yourself “I’ll do it tomorrow,” and how the gods have again and again granted you periods of grace of which you have not availed yourself. It is time to realize that you are a member of the Universe, that you are born of Nature itself, and to know that a limit has been set to your time. Use every moment wisely, to perceive your inner refulgence, or ’twill be gone and nevermore within your reach. Marcus Aurelius Roman Emperor 161-180 AD.

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

Cheers,

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).