We are all connected

Whether you believe it or not, we are all in this together so it works best for each of us if we help each other out. I know that we are all fighting internal battles that nobody really knows anything about. However you have to realize that you are probably not the first in your particular situation nor will you be the last.

In regards to my field, as a mortgage broker there are probably thousands of us across the country. Many more if you add the mortgage specialists who work directly for the banks. Yet even though we work mostly by ourselves and for ourselves a little cooperation can go a long way. I had a file that I was having a challenge getting it approved and funded, I reached out to one of my friends who is a mortgage specialist for a bank and he was able to get it done. Simple as that.

A few years ago I reached out to Dustan Woodhouse a prominent broker in BC who wrote a series of books called “Be the better Broker”. Not only did he take the time to talk with me, someone he didn’t know from Adam, he actually sent me copies of his book. I was blown away by his gesture.

We need more people like Dustan who go out of their ways to help other people. The world will be a much better place if we all turned the focus less on ourselves and more toward others. A cool little side benefit is that the more you give the better you will feel.

With the theme of today’s post you really need to check out Sam Roberts singing We’re all in this together with his kids.

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

Pat

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).

My business runs on Zoho

While using a web-surfing tool called Stumbleupon about 12 years ago, I landed on a page about Zoho and it’s products. I had been searching for a great CRM for my business and all the competitors that I had found were much more expensive and not as user friendly.

So here is a run-down of what I am using and hopefully you will find something of value can help you or your business.

I use Zoho CRM to run my day to day business. It helps me track every stage of my clients journey from prospect through to funding. It’s great for keeping in touch with my referral sources as well.

I use Zoho Books for all my accounting needs. It connects to many of the common payment processors links like Stripe or PayPal so you can send out invoices with a built in link and get paid much faster.

I use Zoho Bookings to schedule all my client meetings. I just send my clients a link, they pick the time that is convenient for them and then we meet through Zoho Meeting their video conference tool.

I use Zoho Mail for all my correspondence. It links seamlessly with my CRM so all my client communication is automatically saved to their contact profile.

I use Zoho Campaigns for any email marketing with my clients and referral sources. It syncs beautifully with my CRM and sends out amazing emails with all the back end analytics that you need to know what’s working and what’s not.

The chatbot on my website is also Zoho product called SalesIQ. It pings my Apple Watch, then my iPhone and my computer when I have a new visitor using chat on my website. This gives me the opportunity to communicate timely & effectively with those who visit my page. The Form that is on my website was created by Zoho Forms. That brings everything directly to my Zoho CRM.

I use Zoho Sign for all my clients mortgage approval documents. Now in the age of Covid where almost everything is done virtually this has been an amazing tool to have.

I am most likely leaving some products out of the mix but this should give you a pretty good idea about what is possible with their expert suite of products. What really makes this attractive for me is the fact that they have all these products bundled together as a package called Zoho One and what’s even better is the cost, which is only $30us per user per month! This is a tremendous value, compared to what you may already be paying for your CRM, your Zoom, your accounting program and all other similar products. So if you like any of these products please subscribe through my Zoho One Link and it will give you the most bang for the buck.

I really hope that I was able to add some value to your day and just make life more organized and structured. You won’t believe how much more effective these products make me.

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

Pat

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).

Plan B!

Sometimes our best made plans go astray. Things don’t always turn out as you have planned so you need to be prepared with alternative solutions to help you reach your goals. Planned to go to Florida for vacation but could not get a flight, but still intend on going so look at other options to get you there. Gyms are closed due to covid but you still want to workout, take up running like so many more of us have done over the past year. Can’t go out to see a movie, consider picking up a great book.

This can also apply to the world of financing. You finely found your dream home but the big bank lender or AAA lender turned you down. There are still options to make your dream a reality. As long as you are open to other possibilities we can help you achieve your goals. No’s are not forever as long as you are open to other options.

I have some wonderful alternative lending options available for you to help you make your home ownership dreams come true. That no from the big bank might just be a no for right now, with a little work and help from one of my alternative sources we can get you where you want to go.

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

Pat

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).

24 Hour Service!

You have to admit that we live in a busy non-stop world. As long as you have internet service you can shop on-line 24 hours a day, stream the latest tv show, movie, do general banking or in most cases get tech support if you needed it.

However our modern connected world does have it’s limitations at what you can do at 2am on a Tuesday or 8am on a Sunday. Craving for a burger at those hours it isn’t going to happen. Same goes for getting your dry-cleaning done. Can’t have a consultation with your lawyer or your accountant either. In my business there are things that I can or can’t do if I happen to be available to chat during those hours.

Thanks to my chat bot that I have on my website, I get a notification on my phone, my watch or my computer if I have a new visitor. Now like most people I do have down time, but I am generally awake, near my phone or have my watch on from 6am till 10pm most days. This means that before and after regular banking hours I can and will happily answer general enquiries or respond to client questions. However note, that outside regular banking hours I am unable to get your mortgage approved or issue unconditional finance letters without first consulting with the lender.

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

Pat

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).

38 Months in

Doesn’t mean anything to you? Well it should if you are planning on signing a 5 year fixed mortgage rate in the near future. 38 months is the average when people break their five year fixed mortgages. They could be broken for any number of reasons, marriage, divorce, job loss, job transfer or big promotion. The point is that I want to make the experience of you breaking your mortgage ( if you choose to do so) as painless as possible.

So there are a few things you need to know and I will then explain them a little bit further. Interest rate differential, posted rates, discounted rates and three months interest.

The penalty to break a five year fixed mortgage is either 3 months of interest or interest rate differential, which ever is greater. The formula to calculate out this penalty varies greatly between lenders, where most of the big 5 banks using posted rates in their calculation and the broker channel using discounted rates.

Since variable rates are tied to the Bank of Canada prime lending rate and these are short term investments, the penalty to break a variable is based on three months interest.

Five year fixed mortgages on the other hand are based on bond yields. Your lender takes the five year bond yield marks it up then sells it to homeowners as either 5 year posted or discounted rates. Then packages up these mortgages sells them to investors as mortgage backed securities with a guaranteed rate of return over the 5 years. If you break your contact prior to the end of the term you will still owe the bank the missing return, thus the reason the the penalty.

However as I have said not all lenders calculate out the penalty the same way. The big 5 banks use posted rates in their calculation. So I have just run two examples: 1st from big bank blue ( you know who they are), and the 2nd from one of my broker based banks First National. I have used an imaginary start of your mortgage of Feb 26th 2018, 5 year fixed with a rate of 2.79 from both lenders, and a balance of 225,000. Now because they use different rates in their calculation you will have an estimated penalty from big blue bank of $9,925 and an estimated penalty of $2,750 from First National. That’s a difference of $7,175 and yet you both started with the same rate.

This is because the rate you received from Big Blue bank was the posted rate minus a discount, giving you your rate of 2.79. So to figure it out take the non discounted rate from the date your mortgage was advanced, say there is 24 months remaining so the lender will get the rate for the remaining term, and now they get the difference between your non discounted rate and the rate for the remaining term, divide that by 12 to get monthly interest rate and multiply that by 24 the number of months remaining on your term and multiply this by the mortgage amount to get your penalty.

Long story short, if you really must go with a fixed rate then do it with a broker channel lender, if not then variable is defiantly the way to go.

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

Pat

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).

Fix your Variable

Most people like the fixed mortgages for peace of mind it gives them knowing that their payments will be the same every month. Those who go variable or adjustable rate mortgage like that they paying less than those on fixed rates 9 times out of 10. However there is a way to give you both the peace of mind of knowing that your payments will not change while still staying on a variable rate mortgage.

To do this simply contact your lender after your mortgage closes and request to increase your payment. Depending on the lender they will allow you to increase it by as little as $100 per payment or up to 20% of your principal amount. So for example say that your mortgage payment was $1000/month as set by the lender. This payment includes principal and interest. Because you’re so smart you have requested to increase your monthly payment by $200 to $1200/month. This means that your extra $200 per month works out to $2400 a year or $12,000 over 5 years that goes straight towards to principal balance of your mortgage.

This will allow you to become mortgage free faster, and who doesn’t want to do that. You see mortgage are just a tool to help you get into your first home or your dream home. You shouldn’t have one forever. Make extra payments and pay it off sooner.

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

Pat

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).

Dig deep!

Often with clients it’s necessary to ask them tough questions about their personal and financial situation. This is because we need to know in advance of sending their file off for approval if there are any possible roadblocks or issues that need to be addressed. You see I would prefer to know of anything that may prevent the client from getting approved so it can be dealt with prior to getting any surprises from a lender.

Getting to know my clients and getting as much as possible upfront allows the process to be much smoother for the client, the broker and the lender. Sure there are lenders who will approve files with just the application and the credit bureau but why run the risk of getting into trouble as you move toward funding.

In most cases this is the largest financial decision of your lives. So dealing with a competent broker is in your best interest. So if you have had past bankruptcies, consumer proposals, was married but now divorced, gifted down payment, co signed a loan for a friend or just started working for your self. These are all things that could impact your ability to get a mortgage.

My goal is to help you get into your first home or your dream home. Getting to know the real you is part of the process to making this happen.

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

Pat

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).

#TuesdayVibe

Well after several months of mortgage rates going down, they turned the corner and started going back up yesterday. As fixed mortgages are tied to bond yields, they hit a 10 month high on Monday with the 5 year bond closing at 0.67% forcing lenders to pass the increase on to borrowers.

The bond yields are increasing because there is belief that the US inflation with rise much quicker than initially expected. Thus taking our Government of Canada bonds up with them. While I have no crystal ball, we have been very fortunate lately with our current rock bottom fixed mortgage rates. Nothing stays low forever, so if you have been on the fence about buying a property then now is the time to get pre approved and lock in your mortgage rate in advance of future increases.

While these increases have only affected fixed mortgages. The variable rate is based on Bank of Canada Prime Rate. Which after their last meeting in January 2021, they kept their overnight rate at .25% and said that it will likely stay unchanged till 2023. So if you are comfortable with a variable rate, and 9 times out of 10 people have saved more money that way, then I would highly suggest sticking with a variable rate mortgage. As an added bonus even if you every break it, your penalty is only 3 months interest vs a much larger penalty for breaking a fixed rate.

Irregardless of slight changes in the 5 year fixe rate, don’t forget that to get a mortgage these days that you must qualify based on the 5 year posted rate of 4.79%. Also known as the stress test. So while your overall potential payment may have increased by a small amount your buying power remains the same.

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

Pat

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).

Plan Ahead!

As the common expression goes ” If you fail to plan, then you plan to fail”. Since today is Sunday, it is the day the highly organized plan for their upcoming week. Athletes that I know call this meal prep Sunday where they prepare the meals for the upcoming week so it’s just one less thing to worry about during the week. They also plan their training for the week ahead.

Burnout is just another way of saying decision fatigue. You get to a point in your day where you are mentally spent from having made too many unplanned decisions. Steve Jobs notoriously wore the same outfit so it was one less thing that he had to decide on for his day.

Start slowly by planning what you will be wearing for the next day by laying it out the night before. I have been doing this for years and it saves a lots of time. Then if you are so adventurous plan the start of your morning. Including the time you will get up, your morning meditation or exercise routine, meal then right up till you start work.

By planning your day, it will make it easier for you to hit the objectives for your week, your month and your year. What every your objective it, plan ahead and break it down so it is more obtainable.

If your plan is to buy your next home, your dream home or refinance your current home let me know as I would love to help you reach your goal.

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

Pat

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).

Work in progress

Let’s face it, we are all in some way or another a work in progress. Always striving to improve and better ourselves. We want to be in better shape, make more money, have a better relationship, get out of debt, learn a second language, travel the world or better yet learn more and faster.

If you believe you are the way you are and nothing can change that, you need to read Mindset by Dr Carol Dweck. We all have the capacity to grow and improve, you just have to learn the right strategies.

You want to run a marathon, start by walking, then jogging then running short distances and build up from there. The best way could be to do it for a good cause like this one.

You want to make more money, focus on being excellent at what you do now. Excellence has a way of getting noticed and getting promoted.

Want a better relationship, love yourself first then treat others how you want to be treated.

You want to get out of debt, you need YNAB. Nothing is better at helping you get in control of your money.

If learning a second language is on your list, consider starting with Duolingo. It’s great and helping me keep my french alive.

If traveling the world is on your bucket list, I would seriously wait until our current COVID-19 pandemic is behind us. In the mean time you can go to the local book store and start picking up travel guides.

This one is easy if you want learn more and faster, then stop watching tv and replace that time with reading. Start with a few pages or 15 minutes a day and go from there. Pretty soon you are reading a book a week. There is nothing better.

Now if you want to get into first home or your dream home, then I am your guy. In my 19 years of doing this I have encountered almost every type of scenario.

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

Pat

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).