Tag Archive for: Halifax Mortgage rates

Backtracked!

This past week Canada Mortgage and Housing (CMHC) backtracked on an unpopular policy move they made at the start of the pandemic last year. They tightened underwriting guidelines to limit debt service ratio’s for insured mortgages to 35/42% of GDS/TDS. This is because last year CMHC incorrectly estimated that the pandemic would cause a softening in the housing market. What happened was exactly the opposite. Instead of home values dropping by up to 18-20% they increased by the amount that they thought we were going to lose.

The other two insurers Canada Guranty and Sagen ( previously know as Genworth) who normally follow in lock step with whatever CMHC decides to do decided to keep their policy the same and allow for ratios up to 39/44. So what happened is that they ( Canada Guranty & Sagen) had a rapid increase in market share of the insured mortgage business as the housing market heated up.

So CMHC with their new leader, Romy Bowers decided that they could no longer live by Evan Siddall’s erroneous policy change and thus shrinking market share and changed back to 39/44%. Only time will tell if this will do anything to help them recapture their lost market share.

“We are products of our past, but we don’t have to be prisoners of it.” Rick Warren

Today I am thankful for a storm that passed quickly and left no damage in it’s wake, a expected rainy day that turned out quite nice and fresh strawberries and cream for snack.

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

I am that guy

I don’t go out drinking with the boys, or play a round of golf a week, or take two hour lunches or even take two week vacations. 9 times out of 10 if you call you will get me unless I am talking on the other line. My job is to get your mortgage approved, sleep, eat, workout early but that’s it.

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).

Why you will not see mortgage rates on this site!

At least two-dozen times a week we have people call us and ask, “What’s your rate on a 5 year fixed rate?” Most times when we try to get additional information from the potential borrower. Unfortunately, for both the caller, and us they don’t want to tell us anything. “I already know what I want, just give me a rate,” is the usual response.

Now, I’m not encouraging you not to shop-around for the best rate.

But, asking for a rate without giving more information is a bad idea. Why? Because frankly, anybody can give you any rate quote they want to over the phone, there is no way you can hold them to that rate. You see, there are two kinds of mortgage companies out there, those that are only interested in you as a loan customer and those that look at you as a client for life.

Those companies that want a fast buck know that they can quote you anything they want to just to get you in the door, then they can use whatever excuse to “convert” you to a different loan with a different rate.

Those companies that want you as a client for life, will take the time to ask for as much information as possible, up-front, so they can not only give you the best rate possible, but they can also quote you the best loan program for your situation.

Additionally, far too many people think they already know what loan program is best for them.

You may think you already know what you what, but unless you know all of the options in the marketplace you may miss an opportunity for a better loan program or situation that you didn’t know existed.

Let me ask you, have you ever gone into a store to buy a specific product, but came out with something entirely different?  If you did it was probably because you didn’t know the new product even existed or a knowledgeable person in the store gave your new information that helped you make a better decision.

That’s they job of a competent loan officer, to use their years of expertise to help you select the best option for your situation.

Please, don’t assume you know what’s best for you.

Now, I’m not saying that you shouldn’t make the final decision. After all, it is your money, your home and your financial future. However, there is no harm at all in letting a competent, well trained mortgage professional give you several options, then you select which you believe is best for you.

Cheers,

Pat