Plan Ahead

Now that my annual filing is complete for my license here in NS, it’s time to shift the focus from the past and plan for a prosperous future. That’s not to say that the past year wasn’t good, it was, however like with anything in life the goal is to constantly improve.

The standards that the province put into place last year gave me a view of my business that I had not seen before. It was both startling and eye opening. It is sort of like when your doctor asks you to step on the scale during your annual check up. Part of you wants to know and part of you doesn’t.

The best way to plan for changes ahead is to get an accurate picture of exactly where you stand. You want to make more money then you should know how much you currently make, want to spend less then you need to know how much you are currently spending, want to lose weight then know what is your current weight, you want to improve your business then know exactly where you stand today regarding your current sales & expenses.

Knowing a clear picture of where you stand today is half the battle, then it’s up to you to decide how much you want to improve and be dedicated to the work that is required to get there. You can’t improve what you can’t measure. This is why I like digital marketing, you know exactly where your clicks or leads come from compared to your ad spend. You can’t get that from a billboard or a bus sign.

Today I am thankful for my persistent friend who got me out for a bike ride today, the four hours I spent yesterday getting my annual filing complete and receiving confirmation that I am now approved and ready to go for another year.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

To Stay or go?

Most of us are familiar with the classic song by The Clash ” Should I stay or should I go”. Well right now that applies to those of us in variable rate mortgages. There has been a lot of nervousness about staying in a variable rate and riding out the Bank of Canada rate announcements or bailing and going for a fixed rate.

There are a few things that you should look at if you are deciding to convert to a fixed rate.

  1. What is your current discount to the prime rate, and is the rate for a comparable fixed rate higher than what you are currently paying.
  2. Look at your mortgage statement and see if you are still paying interest & principal. If you’re not because of the recent rate increases it may be time to either increase your payments or consider the switch.
  3. Lastly it boils down to peace of mind. If you are comfortable with rate movements ( there may still be more) and you like the flexibility then stick with it. Otherwise if you are stressing about it then for your own good it may be time to convert to the fixed.

As with all the advise that I provide to my clients regarding mortgage financing, I can only provide the options for you to consider as at the end of the day it’s up to you decide what you want to do.

Should I stay or should I go now?
Should I stay or should I go now?
If I go, there will be trouble
And if I stay it will be double
So come on and let me know…… 3rd verse from should I stay or should I go which is somehow appropriate when considering your mortgage options.

Today I am thankful for the warm and windy morning, colleagues who are available to help when challenges need to be brainstormed and early morning calls from my daughter telling us about her day.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Market Place

Just this past week CBC Marketplace did an episode on mortgage fraud. To me it showed the lengths that some people would go to get a commission as the instances he demonstrated were initiated by the realtor in cahoots with a dishonest mortgage broker/bank mortgage specialist.

Just so everyone knows we are in a 100% commission business so we get compensated when our files close. If you are ever in a situation where someone in our industry ( realtor or mortgage) tries to show you a short cut then run in the other direction. I don’t personally need a commission bad enough that I would jeopardize my 20 year career.

I also want to offer a little clarity on fee’s. Yes there are times when it is necessary to charge a fee to successfully complete a mortgage transaction. However the majority of fee’s I charge are success fee’s, which means that the fee is only charged when the file has funded ( on alternative & commercial files). The other instance is for a complicated commercial file where a nominal fee may be charge upfront upon signing the fee’ agreement so the file can be prepared for the lender. That’s it, so if someone says they can help you but wants to be paid a substantial amount upfront then that is a clear sign to go the other direction.

Today I am thankful for the people in my industry who are honest and hardworking, CBC Marketplace for doing a great job on sensitive topic and that my referral partners and clients a top notch honest people.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Market Mimic

Canada and the United Stated are pretty much joined at the hip economically. Whatever happens to our neighbours can soon be mimicked in our economy. So while their overall inflationary rate decreased to 8.2 in Sept from 8.3 in August, when you take out the two largest contributors which are energy & food you get core inflation which is now at 6.3% or the highest rate since 1982.

What this means is that the central bankers are pretty much locked in to rate increases in Nov & Dec. Predictions at this point at 75 basis points for each, however sometimes we don’t know the result till it actually happens. So as I have been saying in my recent posts, it’s time to tighten your belts and reign in your excess spending so you can limit the effects of the impending recession.

Just so you know for some reference, when core inflation is stabilized it is running just over 2%. We have a ways to go to there and most economists are predicting a bumpy road to get to that desired result.

Today I am thankful for a great week home with my girls, an energizing garage workout this morning and finding common ground with a new contact immediately upon meeting.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Recession Proof

With all the talk about an upcoming recession in 2023, now is the best time to prepare for the effects of a shrinking economy. While there may not be much you can do to influence the overall economy, there is plenty that you can do to influence your own personal finances.

  • Make sure that you have an emergency fund of at least 90 days of your personal expenses in the event of employment interruption. The best way to do this is to be using YNAB.
  • Sorry to those who work in restaurants & hospitality, but cut back or eliminate unneeded trips and meals out.
  • Trim back or eliminate streaming services that you no longer use, sorry Netflix.
  • Workouts at home were all the rage during the lockdown and may soon be again once people cut back on time spent at the gym.
  • Keep your credit score high by making sure that all your obligations are paid in full and on time.
  • Diversifying your income by taking on a side hustle if possible
  • Keep your debts to a minimum
  • Update your skills so that you are more desirable in the workforce
  • If self employed then 10X your efforts to grow your business by radically increasing your prospecting and client management.

We don’t all feel the same effects of an economic downturn, but if you’re prepared then the effects will be much less severe on you personally. The economy is constantly changing and a downturn next year may also be followed by economic growth the following year. Be prepared for the changes ahead so you can adjust accordingly.

Today I am thankful for the 5K run with my neighbour when I really didn’t feel like going, that my wife is an amazing home cook and that some of the best food I have ever eaten was here at home.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Spoiled Rotten

We have been spoiled rotten with the rock bottom low interest rates that we have had for the past 15 or so years. I am reminded of this fact now that the five year discounted rate is 5.14%. However this sill pales in comparison to high rates of the mid 80’s at 16 or 17%.

People keep asking me when do I see rates coming back down. Well if you listen to the central bankers like Tif Macklem who is the head of the Bank of Canada, it’s going to keep going up before it comes back down. This is because our overall inflation rate is till too high. With the last monthly report from August which had us at 7%. Yes it is coming back down from it’s record high this summer, it’s just not coming back to earth fast enough.

All this means that we will have to suffer out with higher interest rates until the inflation rate comes back down. So the sooner we can reduce our spending, the less action the Bank of Canada will have to take to force us to tighten our belts. Buckle up, it may be a bumpy ride for the next 6-12 months.

Today I am thankful for a trip to the valley with my wife and daughters yesterday to celebrate their birthday, having them home during their reading week from university and the perspective that things are not as out of control as they were in the 80’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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Fight against inflation

Yesterday the Bank of Canada governor gave a speech to the Halifax Chamber of Commerce. He said that even though core inflation started to come back from it’s all time highs, prices on food and other items are still at all time highs. As a result he said that we should expect further rate increases as more work needs to get done to further tame inflation.

What this means for you and me is that we will have increased borrowing costs until inflation finely comes under control. Those of us on variable interest rates will increases as will those with home equity line of credits. The main goal of all the rate increases is to get us to reduce our spending, thus lowering demand and then prices will start to come down.

The rampant need to travel post lockdown has been like gasoline on a fire which has further pushed inflation upward. Yes it sucked being stuck at home not being able to dip our toes in the sand some place sunny, however the resulting inflation from all the demand to travel, buy new vehicles and new homes has caused us to experience inflation that we have not seen in over 40 years. Whether we want to or not, it’s time to tighten our belts and pull back some of the discretionary spending before the overall economy spirals into a recession.

Today I am thankful for the daily motivational texts my buddy in Montreal sends me each day, that my girls will be home tomorrow for a week and for all the great conversations I am having as a result of my increased prospecting calls.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Point of no return

There are still many of us still riding out on a variable rate mortgage, even though there have been 5 rate changes this year and the strong possibility of another one soon. At the time it was the easiest decision out there as rates were low and the fixed rate while still low was about a percent and a half higher than the discounted variable rate.

Now there are a few things that those of us still on a variable rate should be aware of. These are the Trigger Point and the Trigger Rate. Firstly the Trigger Rate is the point that you are no longer paying interest and principal on your mortgage but only paying interest. Meaning that you are no longer paying it down. The Trigger Point is when the balance on your mortgage now exceeds the amount of your original principal due to the increase of mortgage rates.

Hitting the Trigger Rate may not warrant a call from your lender, however hitting the Trigger Point mostly likely will. This is because your mortgage now exceeds the initial principal balance and since you were no longer paying interest & principal your loan was increasing due to the fact that the increasing rates and your set payment no longer covered the new interest on the loan.

Solution now would be to simply increase your payments to bring it back below the trigger point or switch over to a fixed rate so you are paying both interest & principal. Feel free to give me a call if you are in this situation.

Today I am thankful for the schools finely being open again here in Halifax, quick solutions and partners who stepped up to help solve it and invitations from colleges to attend events.

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

August inflation numbers

The inflation numbers for August 2022 for both Canada & the United States came out over the past week. In Canada our inflation rate dropped from 7.6% to 7%, and in the US it decreased from 8.5 to 8.3. While both are retreating from the highs of a few months ago, we are still well off the comfort level of 2%.

As a result of the still too high inflation rate, the US Federal Reserve delivered it’s third straight 75 basis point increase to their interest rates yesterday. To many economists this bakes in with pretty much certainty that the Bank of Canada will follow suit with another large rate increase when it meets next on October 26th. The only thing that could change the amount of the rate change would be the CPI (inflation) numbers that will be coming out on the 19th of October.

So while we are improving and prices of goods and gasoline are coming down, according to the central bankers it is just not retreating fast enough. A lot could happen in the next month to determine the size of the next rate change from the central bankers.

Today I am thankful for a warm muggy fall day which was perfect for a run this morning, the idea’s that come from reading great books and opportunities that come from working long hours.

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.” Sam Ewing

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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


Switching

Over the course of the pandemic when the real estate market was on fire and everything and I mean everything was selling for well above the list price, the majority of people opted to go with the variable rate as opposed to the fixed. You see it was simple math at the time, as fixed rates were about 1% percentage point more expensive.

Well now thanks to soaring inflation and recent moves by the Bank of Canada, that rate disparity has all but disappeared. So if you are getting a bit nervous with your variable rate, then just reach out to your lender and ask to switch to a fixed rate for the remaining term. This is one of the advantage of the variable rate, you switch to a fixed with the same lender with out a penalty. If this will give you more peace of mind, then do it.

Today I am thankful for a quick fix for a credit card issue, a morning call with one of my girls at university and the shorter days of fall which is perfect for sleeping.

“You can only exceed your limits if you’ve discovered them.” Roel van Sleeuwen

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 Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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