On Goals and Commitments!

Most people know there are differences between goals and commitments but they may not know exactly what they are. You could have a goal to run 5K, but if you don’t make the commitment to getting up and putting your running shoes and going for the run you will never get there. Goals are the objectives and commitments are the actions that make them happen.

I made a goal of reading 25 books in 2021, so to make that happen I have cut out TV almost entirely and have committed to reading at least an hour a day. Now as we enter the 2nd week of February, I have finished 5 books and am mostly through my 6th. If you are on Goodreads feel free to connect with me and share what you’re reading. Similarly I have a goal of helping 3 times as many clients get the mortgage that is perfect for them as I had over the past 2 years. In part of the process to make that happen I am committed to writing a bog post every day. It doesn’t matter if it is one sentence, one paragraph or one page, as long as I publish something.

So if your goal is to finally make the move into home ownership this year, then you will need to get committed about saving money, improving your credit if necessary and finding that dream home. Once you are ready let me help you get the mortgage that is perfect for you.

I look forward to hearing from you.

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).

p.s.s.s- I couldn’t resit adding this piece, when a lender approves your mortgage request it comes by way of a commitment. You don’t have a goal of making your mortgage payments, you are committed to following through and doing so.

Regrets, I’ve had a few

We’ve all made mistakes in our lives from time to time. I am a married man, just ask my wife she can probably give you a list of my many mistakes and shortcomings. Like a lot of people I view most if not all mistakes as learning opportunities. However I think it is of vital importance to have few to no regrets if possible.

Try to picture you’re 95 and looking back on your life. That time you took your Dad’s classic car out for a spin, well it was more like a trashing. It was a huge mistake according to my Dad, but was it a regret? Hell no! It was a lot of fun, and I am sure the decision would be repeated if one was put back in time and in the same situation.

I’ve had jobs and relationships that haven’t worked out but none of those were regrets, as I have grown from all those encounters. The only thing I can say that I regret and would change if I had a time machine and could go back and do it differently was selling my shares of Apple in 2014. I had a few hundred shares, and that if I had not sold them ( yes it was a very stupid reason) would now be several thousand shares thanks to their recent stock splits and worth a heck of a lot a money.

When you think about it, if people have regrets they tend to be about love or money. I want to help you not to have any regrets about the biggest purchase of your life which is your home. Let me help you get the mortgage that’s perfect for you.

I look forward to hearing from you.

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).

Who Am I?

When I started in this field 17 years ago, I tried my hardest to serve all sorts of clients. It didn’t matter if it was for your commercial project, you had a prior bankruptcy, you were self employed or new to Canada. I did it all. After all of those years I will still do all of those things but I won’t do it all for everyone.

It all boils down to one thing, we have to be a fit for each other. There are enough other people doing the same thing, if we are not a fit there is one out there.

If I have to buy the rate down to win your business, I am not your guy.

If you expect a split of my commission because you referred me some business, I am not your guy.

If you need me to turn my head the other way so you qualify for financing, then I am not your guy.

I am your guy if you want someone to go above and beyond to get your financing complete. I am your guy if answering the phone or getting back to you quickly is important. I am your guy if service matters, finding the right product matters and making this process as stress free as possible.

Today’s post was inspired by listening to Tim Ferriss’s podcast with Seth Godin. Seth is wonderful and full of all kinds of great ideas. For more you should check out his latest book.

Make today a great day, and reach out if you have any questions.

Cheers,

Pat

What is your “Endgame”?

Recently my wife and I took our son to see Avengers Endgame. It was awesome and I highly recommend that you see it. The movie was the cumulation of 11 years and 22 movies to get this point. The head of Marvel Studios Kevin Feige was the mastermind behind all of this success as he saw the big picture. The secret is that he had a plan and he got to work to making that happen.

The truly great people in this world have a plan. They know where they want to go and take consistent action to move them in the direction of their target.

In regards to your personal finances what are your goals?

Do you want to continue renting or buy your own home?

Do you want to invest more for retirement?

Do you want to take a fancy vacation every year?

If your goal is to buy a house and you currently rent, you should start with the following: How is your credit? Do you know how to improve it if it’s poor? Do you have a down payment saved up? If not, do you know how much you will need or how to get one if you don’t have one?

To start you should check your credit. Here are some ways to do it.

If you want to know how to improve your credit score, you can check this out.

Here are some ways to save up for a traditional down payment and improve your finances.

As for your other downpayment options and qualification, just reach out to a mortgage professional like me.

I look forward to hearing from you.

Cheers,

Pat

Entrepreneur’s Wanted

Hey Business Owner!

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Congratulations you’ve done it, you have started your own business. You have taken the 1st step. This could of been years in the making or a recent spark of inspiration that pushed you to it. Irregardless congratulations I am happy for you.

Now get your business registered, set up your banking and start making some sales. If you are boot strapping your early growth that is great as it shows that you have some skin the game. Once you have some preliminary success and you have proven your concept, now the future is starting to look bright. It may now become time to start thinking about financing your future growth.

We have years of experience in assisting entrepreneur’s finance and fund the future growth of their businesses. Whether you are looking for working capital or a private equity investment we can help you achieve your goals. We have a network of private equity, angel investors and institutional financing to get you to the next level.

Feel free to contact me to see how the various financing programs may help you. Whether you are looking for 100K or 50M we can help.

Sincerely,

Pat

David Bowie said it best

It was very sad to get up this morning to read about the passing of a rock legend David Bowie. I have always loved his music. The news reports talked about the impact his life has had on rock music, fashion, art and even financial securities with Bowie bonds.

I don’t know how many hundreds if not thousands of times I have listened to his song changes. Singing along and not realizing until today that I ( like many) was singing it wrong. He talked about “time may change me, but I can’t trace ( not change) time. I did not really get what he meant till today, and his career summed it up perfectly. You can’t go back in time. Bowie was always changing, and that’s what made him interesting.

Change is the one constant that we have in our lives. It’s how we adapt to it that determines our fate. You don’t listen to the same music at 2 as you would at 15, sorry Raffi. You don’t work at the same type of job at 15 as you would at 30, sorry Mc’D’s. Your finances also change along each stage of your life. We must adapt to meet these changes.

Are you spending more that you are earning? Are you paying down your debt? Are you saving for retirement? Are you working just to make bill payments or are you truly designing your life? Time may change you, but you can’t change time.  The choice is yours, cause you can’t go back in time and change your decisions of the past. Make some better decisions today so that your future is one that you have designed.

Thanks for the memories and the inspiration Mr Bowie.

Sincerely,

Pat

New Year New You, or Same Old Story?

Happy New Year, I hope 2015 was a great one for you and that 2016 will be even better. What are your plans for improving your life in 2016? Or are just content in just doing the same old thing day after day and getting the same results? You know that’s the definition of insanity right!

Most people including myself have been no different, use the new year as a time to write down their goals for the year. However what happens for most ( I am guilty of this as well)  is that they write them down then they forget about them. Once you have written them, that’s a great 1st step accomplished. Now you must detail a plan for accomplishing them.

The reason that I am writing about this is because I want to make 2016 the best year ever and I want this for you as well. It really doesn’t matter if you want to quit smoking, lose weight, get in shape or pay off debt. The process is all pretty much the same.

Write down what you want to achieve as if you have already achieved it. This tricks your brain into thinking it’s possible. Do not doubt for one second that it can be done. If you do then you are as they say – toast. Review your goals morning and night. Keep them top of mind so you stay focused on what you want to accomplish. Break them down to tiny bite sized pieces and set mini daily goals that will lead you to achieving the bigger goal.

Jerry Seinfield has a great story about his approach to goal setting. He treats his daily actions as links on a chain. Where all he has to do is to stay consistent in his daily actions and that will bring him closer to his goals.  Break from your success habits and you break the chain. If you want to write a book, commit to a small goal a writing a page a day, by the end of the year you will have 365! The same applies to paying off debt, getting in shape or learning a new language. A little goes a long way.

Consistency is the key. I just found 2 new apps for my iPhone that are helping me with my 2016 journey. The 1st is called “productive”- habit tracker. It does just that, gives you reminders to make sure that you do the little things that will lead you in the right direction. The 2nd one is called Pomodoro. It is based on breaking your productivity down to 25 minutes chunks of time with no distractions. None, zip, zero, nada. So this means no facebook, no instagram, twitter or playing or answering your phone. The goal for most people is to do 8 to 10 pomodor’s daily and you get a whole lot done.

I had forgotten that I had made a goal of writing a blog post till about 25 minutes ago, the reminder popped up, I set my timer and got to work.  It also helps that I don’t like undone reminders on my phone.

So what ever your goal is, write it down, believe you can do it, take small consistent  daily actions and you will get there. See you at the finish line.

Cheers,

Pat

 

P.S- Also here is a good book that I just stared reading. There is a lot of great idea’s there to jump start your progress to help you make 2016 the best year ever.

Get off the treadmill, you’re not a hamster

As the year is winding down, I have been thinking of what I have accomplished this year. What I worked on and did not finish, and what I just did not get around to doing at all. How did you do with your scorecard? Sadly if you are like most, you may not even of kept score.

It turns out that only 5% of the population actually set goals, and more importantly only a smaller percentage of those actually write them down. Are you getting up day after day, doing the same thing and expecting different results. You know that’s the definition of insanity right!

What are your personal goals? Your health goals? Your financial goals. Do you know what you want to achieve today, this week, this month and this year that will help you come closer to their achievement. Don’t get caught up in the day to day rat race of doing the same old things. Have a clear vision of where you want to go, and sit down and create a step by step plan for it’s achievement.

Weather you want to pay off all your debts, lose 30 lbs, run 5K, pass the bar exam or find your soul mate, it doesn’t matter the goal, you can do it. Just write it down as if you have already achieved it. Now ask yourself what can you do today to move you in the right direction. Start before you are ready, the perfect time is now.

The hamster’s view from his treadmill never changes as he never goes anywhere. Change your view of where you want to go, believe that you can do it, take daily small actions toward it’s achievement but always keep in mind where you want to go.

I look forward to hearing about your journey.

Sincerely,

Pat

P.S- if paying off your debt is one of your goals, you should give YNAB a try. I have a coupon code that you can use as well to save some money on the purchase of the software.

 

The 5 C’s of credit and how they impact your buying decision.

You have scrimped and saved and with the help of your Realtor you have picked out your house. Now comes the fun part, getting you approved for your mortgage. With the help from a experienced mortgage broker, you will be able to put your best foot forward and get approved for your purchase.  This involves telling the facts about who you are and where you work and how much you make, but it also involves telling a story about why you deserve and are able to pay back this loan. The right broker will help you do this.

It is like the old tale of a group of blind men (or men in the dark) touching an elephant to learn what it is like. Each one feels a different part, but only one part, such as the trunk or the tail. None of them get the complete picture. The 5 C’s of credit is the way lenders use to get a complete picture. Individually they only tell one part of the story, but together they help paint the complete picture of your financial situation.

Character:

What determines strong character in the lender’s eyes are things like how long you have been at the same employer and at the same address. The longer you have been at the same places shows stability to the lender.

Credit;

The credit bureau stores your credit repayment history from the past 7 years. This shows how well or how poorly that you have paid your bills. Creditors that report to the credit agencies ( Equifax & Transunion in Canada) are auto loans, lines of credit, student loans, credit cards, mortgages and now mobility providers. Your repayment history shows how well live within your means and is a good predictor toward future repayment.

Capacity:

This is normally the 1st thing that the lender looks at, as it determines your ability to afford the payments. In other words this is all about debt service ratio. Lender are looking for the potential loan to be less than 40% of your total income. This would make the probability of you repaying the loan would be fairly high.

Collateral:

This has everything to do with the security being pledged for the loan. In this case the real estate, where it’s located, what it looks like and how much it’s worth. The important part here is the loan to value, or how much your are borrowing in relation to how much the property is worth. It’s important to note here that the most expensive home in an area surrounded by lesser quality homes will hurt the perceived value of your home in the lenders eyes.

Capital:

Is the money you have invested in the purchase also know as your downpayment.  The more of your own money invested in a property means that you are more likely to do all you can to maintain your payment obligations. Another side of capital is shown as your ability to save money and accumulate assets.  The higher net worth a person, the more of a cushion they have for repayment if they are hit with a financial set back.

So to sum this all up, as a  knowable broker I  tie these all together in the submission to get your financing approved. Your story is important, make sure the proper person is on your side to tell it for you. I look forward to hearing from you.

Sincerely,

Pat

All you wanted to know about mortgages but were afraid to ask, part I

 

Not that it’s keeping you up at night, but I thought you should know

To some the idea of financing your first home may be daunting. Really it shouldn’t be. It’s just that the banks and other brokers or lenders may use finance terms that you don’t know what the heck they mean.

Downpayment: This is the cash that you have saved up to buy your home. This can come from your savings, your RRSP’s or from your family. Some situations as I have discussed in a previous article allow you to borrow it from your own existing credit, however this does not apply to all situations and all lenders.

LTV: Also know as loan to value. This one gets a lot of people confused if you are new to the game. It is the amount of your mortgage loan in relations to the value of the property. For example the house you want to buy is worth 100K and you have 5K of your own money to use as downpayment, and you will need a 95K mortgage. So the bank looks at it as 5% down on a 95% LTV.

Default Insurance: This is insurance provided to the lenders ( sorry not you) to protect them in case of default. It is provided by Canada Mortgage & Housing (CMHC), Genworth and Canada Guaranty. This allows us to purchase properties with as little as 5% of the purchase price. It can be avoided in most cases if you put down more than 20% of the purchase price. However ultimately it is the lender who decides if they will charge it when you put more then 20% down.

Term: This is the length of time that you lock in your current interest rate, or discount to prime rate if you chose to go with the variable rate. Terms are available from 6 months to 10 years. If you feel that rates may go up in the future then go longer term, and shorter if you feel they may go down. Most consumers have tended to go with the 5 year term when choosing their mortgage.

Amortization: Just a fancy way of saying how long it will take to pay off your mortgage. Most residential mortgages in Canada are provided with 25 year amortizations.  30 year amortizations are still available for those with down payments greater that 20% and who do not require default insurance. One simple method for paying off your mortgage faster is to pay it bi-weekly accelerated. This is because you end up paying 26 times a year versus 24 times if you chose semi monthly, and it amounts to an extra mortgage payment a year. You end up paying off your mortgage in just over 21 years instead of 25.

Tune in soon and I will tell you about the 5C’s of credit and how they impact you.

As always let me know if you have any questions,

Cheers,

Pat