Tag Archive for: mortgage broker

Financing your commercial project

How to Secure Financing for Your Next Commercial Property in Canada

Securing financing for a commercial property in Canada can be a complex process, but with the right approach and guidance, it can be an achievable goal. Whether you’re an investor, developer, or business owner looking to acquire a new property, understanding the steps involved in obtaining commercial mortgage financing is crucial. In this guide, we’ll walk you through the process and show you how to maximize your chances of approval.

Step 1: Understand Your Financing Needs

Before approaching lenders, clearly define the purpose of your commercial mortgage. Ask yourself:

  • What type of property are you purchasing? (e.g., office building, multi-family residential, industrial space)
  • How much financing do you require?
  • What is your expected return on investment?

Having a clear financial plan will help you determine the loan amount and type of financing that suits your needs.

Step 2: Assess Your Financial Position

Lenders evaluate commercial mortgage applications based on financial stability and risk. You’ll need to provide:

  • Business and personal financial statements
  • Credit history and credit score
  • Proof of income and cash flow projections
  • Details of existing assets and liabilities

A strong financial profile improves your chances of securing favorable terms.

Step 3: Gather the Required Documentation

Lenders will require key documents to assess your application, including:

  • Property details (location, size, zoning, and market value)
  • Lease agreements (if applicable)
  • Business plan or investment strategy
  • Down payment source and proof of funds
  • Bio’s on the principals 
  • Company financials and personal net worth statements 

Being prepared with these documents will expedite the approval process.

Step 4: Choose the Right Type of Commercial Mortgage

Different loan products cater to varying needs, including:

  • Conventional Commercial Mortgages: Offered by banks and lenders, typically requiring a 25-35% down payment.
  • CMHC-Insured Loans: Available for multi-family residential properties, offering lower interest rates and higher loan amounts.
  • Bridge Financing: Short-term loans for transitional projects or quick acquisitions.
  • Private Mortgages: Ideal for borrowers who need alternative financing solutions due to credit issues or unique property types.

Understanding these options allows you to choose the best fit for your investment strategy.

Step 5: Work with a Commercial Mortgage Broker

Navigating the commercial mortgage market can be challenging, but working with an experienced broker simplifies the process. A broker can:

  • Assess your financial situation and recommend suitable lenders
  • Negotiate competitive rates and terms
  • Guide you through the application and approval process

Step 6: Submit Your Application and Negotiate Terms

Once you’ve selected a lender, submit your application along with the required documentation. Be prepared for lender due diligence, which may include property appraisals and financial analysis. Negotiating key terms like interest rates, loan amortization, and repayment structures can significantly impact your bottom line.

Step 7: Finalize the Loan and Close the Deal

After approval, review the loan agreement carefully before signing. Work with legal and financial professionals to ensure the terms align with your business goals. Once finalized, the lender will fund the loan, allowing you to proceed with your property acquisition or development.

Why Work With Me?

Securing commercial mortgage financing requires expertise, market knowledge, and strong lender relationships. As a seasoned commercial mortgage broker, I specialize in helping investors and business owners secure the best financing solutions for their projects. Whether you need funding for a multi-unit residential development, office space, or industrial property, I am here to guide you every step of the way.

Ready to take the next step in your real estate investment journey? Contact me today to discuss your goals and find the perfect apartment building for your portfolio. Together, we can turn your investment dreams into reality.

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 (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Don’t miss out on this opportunity to secure the best financing terms for your next multi-unit development. Contact me today!

With my experience and industry connections, I’ll ensure you get the most competitive terms to make your commercial property investment a success.

Read before shovel ready

Why Real Estate Developers Should Use CMHC’s MLI Select Program for Multi-Unit Construction

The Canadian real estate market is evolving, and real estate developers are constantly looking for ways to improve affordability and sustainability while securing the best financing options available. One of the most effective ways to achieve these goals is through CMHC’s MLI Select Program. Designed specifically for multi-unit residential construction, MLI Select offers preferential financing terms to developers who focus on energy efficiency, affordability, and accessibility.

If you’re a developer planning a new multi-unit construction project, leveraging CMHC’s MLI Select program can provide significant financial and strategic advantages. Below, we’ll break down the benefits of the program and why now is the perfect time to take advantage of it.

What is CMHC’s MLI Select Program?

The Multi-Unit Mortgage Loan Insurance (MLI) Select program by the Canada Mortgage and Housing Corporation (CMHC) is a game-changing initiative for real estate developers. This program provides insured financing to incentivize the development of multi-unit residential properties that prioritize one or more of the following:

  1. Affordability – Projects that ensure a percentage of their units remain at below-market rental rates.
  2. Energy Efficiency – Buildings designed to exceed energy performance standards, reducing long-term operational costs.
  3. Accessibility – Housing designed to accommodate people with disabilities, ensuring inclusivity.

Under this program, developers can qualify for higher loan-to-value (LTV) ratios, longer amortization periods, and lower insurance premiums depending on how many of the above criteria their project meets.

Why Real Estate Developers Should Leverage MLI Select

1. Access to Higher Loan-to-Value (LTV) Ratios

One of the biggest advantages of MLI Select is that it allows developers to secure higher LTV ratios—up to 95% in some cases—reducing the amount of upfront equity needed. This frees up capital to reinvest in other projects and improve cash flow management.

2. Extended Amortization Periods

MLI Select provides amortization periods of up to 50 years for projects that score high on affordability, energy efficiency, and accessibility. A longer amortization period means lower monthly debt service payments, making projects more financially sustainable.

3. Reduced CMHC Insurance Premiums

Developers who qualify for MLI Select benefits can access significantly reduced mortgage insurance premiums or even premium refunds. Lower insurance costs translate to immediate savings, improving the overall financial viability of a project.

4. Lower Operating Costs Through Energy Efficiency

Energy-efficient buildings reduce long-term operational costs, making them highly attractive to both developers and investors. By incorporating energy-efficient designs, such as enhanced insulation, high-performance windows, and renewable energy sources, developers can:

  • Reduce heating and cooling expenses
  • Qualify for government grants and incentives
  • Increase the long-term value of the property
  • Appeal to environmentally-conscious tenants

With energy efficiency requirements tightening across Canada, integrating these features now will future-proof developments against regulatory changes.

5. Meeting Market Demand for Affordable Housing

The demand for affordable rental housing in Canada has never been higher. MLI Select incentivizes developers to dedicate a percentage of units to below-market rents, making them eligible for better financing terms. This not only aligns with federal and provincial housing goals but also provides developers with long-term tenant stability and occupancy rates.

6. A Competitive Advantage in the Marketplace

A project developed under MLI Select isn’t just more sustainable and affordable—it’s also more marketable. Tenants, investors, and municipalities favor developments that align with energy efficiency and affordability goals. By building under MLI Select, developers can attract socially responsible investors and qualify for additional municipal incentives.

How to Qualify for CMHC MLI Select Benefits

To maximize the benefits of the MLI Select program, developers should incorporate features that align with one or more of its three priority areas:

  • Affordability: Dedicate a portion of units to below-market rental rates.
  • Energy Efficiency: Reduce energy consumption by at least 25% below the national building code standard.
  • Accessibility: Ensure a percentage of units meet universal design and barrier-free accessibility standards.

Developers receive a score based on how well their project meets these criteria. The higher the score, the better the financing terms available.

Why I Am the Perfect Broker to Help You Secure MLI Select Financing

Navigating the MLI Select program and securing the best financing requires expert guidance, industry knowledge, and strong lender relationships—and that’s where I come in.

✔ Deep Expertise in CMHC Financing: I have extensive experience structuring financing solutions that maximize MLI Select benefits.

✔ Tailored Loan Strategies: I work closely with developers to align project plans with CMHC criteria to secure optimal terms. 

✔ Access to Lenders & Investors: My strong network includes CMHC-approved lenders and private investors, ensuring the best rates and funding opportunities.

✔ Hassle-Free Process: I handle the paperwork, negotiations, and approvals so you can focus on developing high-quality multi-unit housing.

Let’s Get Started on Your MLI Select Project Today!

If you’re planning a multi-unit residential development, now is the time to take advantage of CMHC’s MLI Select Program. By incorporating affordability, energy efficiency, and accessibility into your project, you can reduce costs, improve financing terms, and increase long-term profitability.

📞 Let’s discuss how MLI Select can work for your project!


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 (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Don’t miss out on this opportunity to secure the best financing terms for your next multi-unit development. Contact me today!

Trade War

The U.S.-Canada Tariff War: A No-Win Scenario for Both Nations

The recent imposition of a 25% import tariff by the United States on Canadian goods, followed by Canada’s retaliatory duty on American goods, has escalated tensions between the two nations. While tariffs are often framed as tools to protect domestic industries, the reality is that they create a lose-lose situation for both countries. Below, we explore 10 ways this tariff war harms Americans, 10 ways it harms Canadians, and why this is ultimately a no-win scenario for both nations.

10 Ways the Tariff War Harms Americans

  1. Higher Consumer Prices: Tariffs on Canadian goods, such as lumber, aluminum, and dairy, increase costs for American manufacturers and consumers. These added expenses are passed on to consumers in the form of higher prices for everyday goods.
  2. Job Losses in Dependent Industries: Industries reliant on Canadian imports, such as construction (which uses Canadian lumber), may face layoffs or reduced hiring due to increased costs.
  3. Reduced Export Opportunities: Canadian tariffs on American goods make U.S. exports less competitive in Canada, one of America’s largest trading partners. This could lead to reduced sales and revenue for U.S. exporters.
  4. Supply Chain Disruptions: Many U.S. industries rely on seamless cross-border supply chains. Tariffs disrupt these networks, leading to delays, inefficiencies, and increased operational costs.
  5. Agricultural Sector Suffering: Canadian tariffs on American agricultural products, such as soybeans and pork, hurt U.S. farmers who depend on the Canadian market for a significant portion of their income.
  6. Increased Inflation: As tariffs drive up the cost of imported goods, inflationary pressures could rise, affecting the purchasing power of American households.
  7. Strained Diplomatic Relations: The tariff war undermines the long-standing U.S.-Canada alliance, potentially weakening cooperation on critical issues like national security and climate change.
  8. Uncertainty for Businesses: Tariffs create an unpredictable trade environment, discouraging investment and long-term planning for American businesses that rely on cross-border trade.
  9. Retaliation Beyond Tariffs: Canada could respond with non-tariff measures, such as stricter regulations or reduced cooperation on shared initiatives, further harming U.S. interests.
  10. Damage to Global Reputation: The U.S. risks being seen as an unreliable trading partner, which could discourage other nations from entering into trade agreements or partnerships.

10 Ways the Tariff War Harms Canadians

  1. Higher Costs for Imported Goods: Canadian consumers and businesses will face higher prices for American products, from electronics to machinery, due to the 25% duty.
  2. Economic Slowdown: Reduced trade with the U.S., Canada’s largest trading partner, could slow economic growth and lead to job losses in export-dependent industries.
  3. Hurt Manufacturing Sector: Canadian manufacturers relying on U.S. components will face increased production costs, making their products less competitive globally.
  4. Decline in Exports: Canadian exporters, particularly in sectors like steel, aluminum, and agriculture, will suffer as American buyers seek cheaper alternatives.
  5. Increased Unemployment: Industries hit hardest by U.S. tariffs, such as lumber and automotive, may be forced to cut jobs, leading to higher unemployment rates in Canada.
  6. Weakened Dollar: Trade tensions could lead to a depreciation of the Canadian dollar, increasing the cost of imports and reducing consumer purchasing power.
  7. Reduced Investment: Uncertainty caused by the tariff war may deter foreign investors from putting money into Canadian businesses, stifling innovation and growth.
  8. Strained Provincial Economies: Provinces heavily reliant on trade with the U.S., such as Ontario and Alberta, could face significant economic challenges, exacerbating regional disparities.
  9. Impact on Small Businesses: Small and medium-sized enterprises (SMEs) with limited resources may struggle to absorb the additional costs imposed by tariffs, leading to closures or downsizing.
  10. Damage to Bilateral Relations: The tariff war could erode trust between the U.S. and Canada, making it harder to resolve future disputes and collaborate on shared goals.

Why This Is a No-Win Scenario

The U.S.-Canada tariff war is a classic example of a lose-lose situation. Both nations are deeply interconnected, with billions of dollars in goods and services crossing the border annually. Tariffs disrupt this symbiotic relationship, creating economic pain on both sides without addressing the underlying issues that led to the trade dispute.

For Americans, the tariffs mean higher prices, job losses, and reduced export opportunities. For Canadians, they result in economic uncertainty, higher costs, and weakened industries. Neither country gains a competitive advantage; instead, both suffer from reduced trade, strained relations, and long-term economic damage.

Moreover, the tariff war undermines the spirit of cooperation that has defined U.S.-Canada relations for decades. Rather than fostering growth and innovation, it creates barriers that hinder progress and prosperity for both nations. In a globalized economy, where supply chains and markets are interconnected, protectionist measures like tariffs are counterproductive.

Conclusion

The U.S.-Canada tariff war is a stark reminder that trade disputes rarely have winners. While tariffs may be intended to protect domestic industries, they often result in unintended consequences that harm consumers, businesses, and economies on both sides of the border. Instead of resorting to punitive measures, both nations should focus on dialogue and collaboration to resolve their differences and strengthen their economic partnership. After all, the U.S. and Canada are stronger together than they are apart.

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 (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Shush it’s private (Mortgage that is)

Unlock Your Development Potential: Why Canadian Real Estate Developers Should Turn to Private Mortgage Funds

The Canadian real estate market is booming, but for developers, securing the financing needed to get projects off the ground can be a daunting challenge. Traditional lenders often come with rigid requirements, lengthy approval processes, and limited flexibility, leaving many developers struggling to bridge the gap between vision and execution. Enter private mortgage funds—a powerful, often overlooked financing solution that can be the key to unlocking your next development project. If you’re a real estate developer in Canada, here’s why private mortgage funds should be on your radar, and why I’m the perfect broker to help you navigate this game-changing option.

The Challenges of Traditional Financing

Real estate development is a capital-intensive business. Whether you’re building a residential subdivision, a commercial complex, or a mixed-use development, the costs can be staggering. Traditional lenders, such as banks, often require extensive documentation, strong credit scores, and a proven track record of successful projects. Even if you meet these criteria, the approval process can be slow, delaying your project timeline and potentially causing you to miss out on lucrative opportunities.

Moreover, traditional lenders may not fully understand the unique challenges of your project. They might undervalue the potential of a development in an up-and-coming neighborhood or hesitate to fund a project with unconventional elements. This lack of flexibility can stifle innovation and limit your ability to bring your vision to life.

The Power of Private Mortgage Funds

Private mortgage funds offer a compelling alternative. These funds are typically backed by private investors or investment groups who are looking for higher returns than those offered by traditional investment vehicles. Because they are not bound by the same regulations as banks, private mortgage funds can offer more flexible terms, faster approvals, and tailored financing solutions.

Here are just a few reasons why private mortgage funds are an ideal choice for real estate developers:

1. Speed and Efficiency: Time is money in real estate development. Private mortgage funds can often provide funding in a matter of days or weeks, rather than the months it might take for a traditional loan to be approved. This speed can be critical in securing a property or meeting project deadlines.

2. Flexible Terms: Private lenders are often more willing to work with developers to create customized financing solutions. Whether you need a short-term bridge loan, funding for a unique project, or a loan with interest-only payments during the construction phase, private mortgage funds can accommodate your needs.

3. Focus on Potential, Not Just Credit Scores: Private lenders are more interested in the potential of your project than your credit score or past financial history. If you have a solid business plan and a promising development, private mortgage funds can provide the capital you need to get started.

4. Access to Larger Loan Amounts: Private mortgage funds often have deeper pockets than traditional lenders, making it easier to secure the larger sums of money required for major development projects.

5. Less Red Tape: Without the bureaucratic hurdles of traditional lenders, private mortgage funds can streamline the approval process, allowing you to focus on what you do best—developing exceptional properties.

Real-World Applications

Imagine you’ve identified a prime piece of land in a rapidly growing area. You know that developing a mixed-use residential and commercial property there could yield significant returns, but traditional lenders are hesitant due to the project’s complexity. A private mortgage fund, on the other hand, sees the potential and offers you the financing you need with terms that align with your project timeline. With the funds in hand, you can move forward quickly, securing the land and breaking ground before your competitors even have a chance to react.

Or perhaps you’re in the middle of a development project and unexpected costs arise. Traditional lenders might balk at providing additional funding, but a private mortgage fund can step in with a bridge loan to keep your project on track.

Why I’m the Perfect Broker to Help You

Navigating the world of private mortgage funds can be complex, but you don’t have to do it alone. As an experienced broker specializing in private financing solutions, I have the expertise and connections to help you secure the funding you need. I understand the unique challenges faced by real estate developers and can match you with the right private mortgage fund to meet your specific needs.

My deep knowledge of the Canadian real estate market, combined with my strong relationships with private lenders, allows me to negotiate favorable terms and secure financing quickly. Whether you’re a seasoned developer or just starting out, I’ll work tirelessly to ensure your project gets off the ground.

Don’t let financing hurdles stand in the way of your next great development. Contact me today to learn how private mortgage funds can help you unlock your project’s potential. Together, we can turn your vision into reality.

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 (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Timing the 2025 Real Estate Market

Why Now is the Perfect Time to Buy or Refinance Your Mortgage in Canada’s Shifting Economy

The Canadian economy has been navigating a complex landscape over the past few years, shaped by global uncertainties, inflationary pressures, and evolving monetary policies. As we move further into 2025, the Canadian mortgage market is experiencing significant shifts, driven by changes in the Bank of Canada’s lending rate and bond yields. For homeowners and prospective buyers, these trends present a unique opportunity to make strategic financial decisions. Let’s dive into the current state of the economy, the mortgage market, and why now is an ideal time to buy or refinance—and how I can help you make the most of it.

The Current Canadian Economic Landscape

Canada’s economy has shown resilience despite global headwinds, with steady growth in key sectors like technology, renewable energy, and natural resources. However, inflation remains a focal point for policymakers. After a period of aggressive rate hikes by the Bank of Canada (BoC) to combat inflation, the central bank is now adopting a more cautious approach. The BoC’s overnight lending rate, which influences borrowing costs across the economy, has stabilized in recent months, following a series of incremental decreases.

This stabilization has brought a sense of predictability to the market, which is crucial for both consumers and investors. With inflation mostly under control, the BoC’s measured approach suggests that further rate changes may be unlikely in the near term. This has created a favorable environment for borrowers, particularly in the mortgage market.

The Impact of Bond Yields on Mortgage Rates

Mortgage rates in Canada are closely tied to government bond yields, particularly the 5-year bond yield. Over the past year, bond yields have experienced volatility, reflecting market reactions to inflation data, geopolitical events, and central bank policies. However, recent trends indicate a gradual decline in bond yields, which has translated into lower fixed mortgage rates.

For homeowners with variable-rate mortgages, the stabilization of the BoC’s lending rate means fewer surprises in their monthly payments. Meanwhile, those considering fixed-rate mortgages can take advantage of the current dip in bond yields to lock in historically competitive rates. This combination of factors makes it an opportune moment to explore your mortgage options.

Why Now is the Time to Buy or Refinance

  1. Lower Fixed Mortgage Rates: With bond yields trending downward, fixed mortgage rates have become more attractive. Locking in a low fixed rate now can provide long-term stability and protection against future rate hikes.
  2. Stable Variable Rates: If you prefer a variable-rate mortgage, the BoC’s pause on rate increases offers a window of predictability. This is an excellent time to secure a variable rate before any potential future rate changes.
  3. Refinancing Opportunities: Homeowners who purchased properties during the peak of rate hikes may benefit from refinancing at today’s lower rates. This can reduce monthly payments, free up cash flow, or even allow you to pay off your mortgage faster.
  4. Increased Buying Power: For prospective buyers, the current mortgage rates enhance affordability. Combined with a stabilizing housing market, this creates a favorable environment to enter the market.

Why I’m the Ideal Broker to Guide You

Navigating the mortgage market can be overwhelming, especially with the constant fluctuations in rates and policies. That’s where I come in. As an experienced mortgage broker, I have a deep understanding of the Canadian economy and the mortgage landscape. My goal is to help you find the best solution tailored to your unique financial situation.

Here’s what sets me apart:

  • Expertise: I stay ahead of market trends and leverage my knowledge to secure the most competitive rates for my clients.
  • Personalized Service: I take the time to understand your goals, whether you’re a first-time buyer, looking to refinance, or investing in property.
  • Access to Lenders: With access to a wide network of lenders, I can offer a range of options that suit your needs.
  • Commitment to Transparency: I believe in clear, honest communication, ensuring you’re informed every step of the way.

Take Action Today

The Canadian mortgage market is in a unique position, offering opportunities for both buyers and homeowners. Whether you’re looking to purchase your dream home, refinance to lower your payments, or explore investment opportunities, now is the time to act. With my expertise and dedication, I’ll help you navigate the process with confidence and ease.

Don’t miss out on this favorable moment in the market. Contact me today to discuss your mortgage needs and take the first step toward achieving your financial goals. Together, we’ll make the most of this exciting time in the Canadian economy.

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 (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

It’s getting Hot

Now that we are past the Canada day weekend it seems that summer is now in full swing. This has also brought the onset of the higher temperatures and high humidity. So I thought it would be only fitting to write up a few tips to help getting through those hot days a little more bearable.

  • Stay inside ( hopefully air conditioned ) during the peak times of the day from 10-4.
  • Drink plenty of fluids, buy this I mean water as coffee is a diuretic which means it takes water from your system.
  • Wear lightweight light coloured loose fitting clothing
  • Don’t overdo it when it’s really hot and humid. Take lots of breaks and pace yourself.
  • Make sure that your pets have plenty of fluids available as they get hot too
  • Check on family members, neighbour and seniors who live alone as they may be having a hard time.
  • Lastly this is a great time to feast on fresh produce like strawberries & watermelon. They taste great and help keep you hydrated.

With records being broken last week for the hottest average days on the planet, we may be experiencing more of the hot hot hot weather. With a little preparation we can get through them and hopefully some of the tips may help you.

Today I am thankful for a few enjoyable days off last week with my family, a sort of cool basement office and getting a workout and dog walk done before the sun even came up.

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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Population Booming

Unless you have been living under a rock, you should know that Canada’s population is booming. In fact for the first time ever Canada’s population hit 40 million people as of June 16th. We are growing at a rate of 2.7% which matches the rate of some of the developing nations, and last year alone we added a million people to our population. This makes us the fastest growing industrialized nation, and a place that I am proud to call home.

All this growth has improved the labour pool helping fill the labour shortages but it also puts pressure on consumption and the already hot housing market. All these new people have helped us diversify or economy from mostly finical services and energy to boosting growth in technology and industries.

Diversification is our strength, with 95.6% of the growth coming from external immigration. While other countries have more of a closed door approach to immigration by calling new people to their country undocumented or unwanted. Canada on the other hand is much more welcoming and appears to be a breath of fresh air. It is this mindset and approach that is helping fuel the growth that we are seeing all across the country.

Today I am thankful for all the new people coming here who have needed my services to help them finance a home, a long weekend and another reason to celebrate our great country.

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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Credit building tips

I am often asked for ways to build your credit if you are new to Canada or just starting out and would like to soon purchase a home of your own. These tips also apply to those who have had some credit issues in the past and need to focus on improving their credit. So here are some tips that I give my clients.

  • Apply for a credit card with at least a $1,500 limit. Use it and make that it is paid on time and in full.
  • Apply for a small personal loan of a similar amount and make sure that your payments are made on time and in full
  • Keep the balances of your existing cards well below their limits.
  • Fixing mistakes on your credit report. Sign up for one of the free credit monitoring services out there and if you discover any problems then report them right away to Equifax or Trans Union to have them corrected.
  • Keep your credit inquiries to a minimum. This is one of the advantages of using a broker as we pull it once and then have access to multiple sources of financing.
  • Contact the credit agencies and make sure that your cellphone and rent are reporting regularly.

Last but not least you should know how your credit score is determined so you have more control of it in the future. Your score is a three digit number ranging from 300-900. The higher the score the better the credit and the lower the score the more of a risk to any potential lenders. AAA Mortgage lenders are typically looking for a score of 680 and up to qualify for the best rates and terms.

  • 35% of your score is based upon your payment history. This is why it is necessary for you to pay your bills on time.
  • 30% of your score is based upon your total debt utilization. The higher your balances are in relation to your limits then the lower your score could be.
  • 15% of your score is based upon your credit history. The longer that you have had good credit then the better chance you have of having an excellent score.
  • 10% of your score is based upon public records. This could be past bankruptcy’s, collection issues or other derogatory public records.
  • 10% of your score is based on recent inquiries. Anytime you apply for credit that request is logged with the credit agencies. The more you keep applying then it could appear that you are in financial distress.

Note if you are new to Canada then remember that it may take a few months before these items start to appear on your credit file. Be patient and follow the steps and soon you will be well on your way to developing and keeping an outstanding credit file.

Today I am thankful for the fellow drivers that waved to me this morning with all of their fingers, the sudden downpour during my workout this morning and a daughter who shares my love for reading.

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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Clickbait headlines

You see these headlines all the time on tabloids in the checkout line, on entertainment websites and most recently on a national newspaper talking about mortgages. The article in question has the headline of “lenders now seeing 60,70 or even up to 90 year mortgages as Canadian’s struggle with rocketing interest rates”. If you have only read the headline like a certain political leader then you are missing the whole story behind this.

The thing is that many Canadians opted for a variable or adjustable rate mortgage ( based on prime rate) when they either purchased their new home recently or renewed or refinanced their mortgage. Those on a variable rather than an adjustable rate mortgage and have their mortgage with one of major Canadian banks, then they have had their payment set for the term of the mortgage at the start.

While this was an attractive option just over two years ago when prime rate was 2.45% and most lenders were offering steep discounts on the prime rate up to -1% to 1.25%. If you did not adjust your payment when the prime rate changed (8 times last year) and a few this year, then you are most likely now only paying interest. Thus this is reason for the above headline as it would now take you much much longer to pay off your current mortgage if you did not re adjust your payment.

There are may options with variable or adjustable rate mortgages. Although the biggest which was the cost which has disappeared, you still have greater flexibility to lock into a fixed rate at any time and traditionally penalties have been less if an when you had to break your contract, but those may be gone now too with the higher interest rates.

The point is if you are on a variable rate mortgage with a lender who had not increased your payment as prime has changed, then it certainly time to contact them and increase it. This is so you are paying more than just interest .Otherwise you will be in for a big surprise once your term is up and you have received your renewal notice with a much higher payment.

Today I am thankful for the fact that I have been proactive in increasing our mortgage payments as prime has increased, that my favourite Peloton instructor got a good report on her health and the sound of the rain this morning.

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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

CPI update for June 23

Well the CPI ( Consumer price index) numbers are out for the month and it has been reported that inflation for May has gone down a full percentage point from 4.4% to 3.4%. This has been the biggest monthly change since the inflation hit the peak of 8.1% in June of 2022, and the lowest rate since June of 2021. So it now give me some confidence that we will soon hit that 2% target.

The slowing of inflation in May, led by a significant drop in gasoline prices, according to Statistics Canada. The deceleration was down from 4.4% last month, with gasoline prices being the key factor in the data. Removing gasoline, the inflation rate was 4.4%. Despite the slowdown, many facets of living costs are still increasing sharply, such as grocery prices, which rose almost 9% in May, and the cost of housing, with mortgage interest costs skyrocketing to a record 29.9% increase. Shelter costs rose 4.7%, and rent increased by 5.6% in the past year.

The decline was largely due to base year effects from the impact of Russia’s invasion of Ukraine on international energy prices. The result was in line with the Bank of Canada’s baseline scenario, which expects inflation to slow to 3% by summer. The slowdown was attributed to a decline in energy prices, particularly gasoline, and eased supply chain bottlenecks for durable goods. However, mortgage interest costs saw the sharpest hike in history, driven by the high interest of the Bank of Canada. The core inflation rate also slowed more than expected to 3.7%. On a monthly basis, the CPI rose 0.4%.

The next up in this economic chess match will be the Bank of Canada’s next policy meeting on July 12th. Despite the decrease, some economists are warning that the Bank of Canada may still raise interest rates again in July. While the cooling in inflation may ease the pressure on the bank, more information is needed to determine the effect of inflation, with June’s job data and the Bank’s own business outlook survey among the metrics to be considered. Let’s take today’s good news with a grain of salt.

Today I am thankful for some pleasing economic news, a great early morning run and a new book discovered hidden away 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 Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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