Tag Archive for: mortgage excellence

Bank of Canada policy announcement

At 11am Atlantic Standard Time it is widely expected that the Bank of Canada will introduce the latest change in the overnight lending rate to combat inflation. Although I am starting this post prior to the announcement, I will hold off publishing it till it actually has been announced. It is widely expected to increase by 50 basis points. If this is the case it will change the bank prime rate from 2.70 to 3.20%.

The interest rate change is the bank’s attempt to do what it can to control inflation. This is caused by the cost of every day goods rising or CPI ( Consumer Price Index). Just so you know the inflation rate in Canada hit 5.7% in February up from 5.1% in January, however still shy of 8.5% inflation rate in the United States.

So they want us as a result to go out and spend less money. This is somewhat difficult now that the price of gasoline is up 44% from last year. Not sure the BOC and the American Federal Reserve are aware that the price of gas it tied to the price of oil which is controlled by OPEC. So increasing interest rates may have little to no effect on inflation.

The goal here is by increasing interest rates, will thus dampen the demand and overall economic activity in the country. So with higher rates you are less likely to take vacations, buy a new vehicle or buy your first home or your dream home. So with less people buying new products and services the demand for those things will fall and thus taking prices with it. At least this is the hope of the central bankers.

Breaking news is that the BOC actually did it and increased the overnight rate by 50 basis points. See the details here.

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

Hack the Stress Test

With the cost of housing still increasing by the day, it is vitally important to maximize the amount that you can qualify for when applying for your mortgage. Through most of the pandemic we qualified based on the stress test rate of 5.25%. Now that we are in an interest rate increasing market we have to revert to the other side of that test which is the base rate + 2%. So with the five year discounted fixed rate now at 3.84%, that means that your qualification rate is now 5.84%.

However since the variable rates are still much lower, this may be the way to help you qualify for a little bit more. You see prime rate as of today is still 2.70%. Banks are offering about 1% off of that so you would start at 1.70%. There is many saying that it will increase by .50% tomorrow thus taking you to 3.30% for prime and about 2.30% assuming the discount remained the same. When you add 2% to this you are at 4.3% which is less than 5.25% stress test rate so that is what will be used in qualification.

If variable rates make you nervous in this high inflation market then you always have the ability to lock them in after you close on your mortgage to the 5 year fixed rate. Remember if you do that you will automatically take yourself from 2.3% to 3.84% for the remainder of your term.

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

Unconventional

In terms of mortgages there are basically two types for the standard A banks, there is high ratio and there is conventional which is when you put down 20% or more down payment. However here I want to talk about being unconventional about looking for solutions to uncommon problems that people are faced with today when looking for a mortgage.

There is your standard or typical downpayment when it has been saved over time in your bank account. Then there is the unconventional down payment which is gifted from your parents or borrowed from your RRSP’s. There is the standard file where both applicants are employed by an employer then there is the unconventional where one or more are self employed. There is also the standard file where they have excellent credit then there is the unconventional when the credit is less than perfect.

The thing is that no two transactions are alike. So being able to find unconventional solutions for clients financing requirements is what I have been doing for almost 20 years now. This is why your fist call when you require mortgage financing should be to a broker. Unconventional thinking is vital to succeed in today’s world.

“I am the greatest, I said that even before I knew I was.” – Muhammad Ali

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

Sunday vibes

The best thing about Sunday’s is that you get to unwind from the previous week while at the same time preparing a fresh start on the week ahead. What are some of your Sunday routines to help you unwind and relax.

During the week I get up at 5am, so on the weekend 7am is sleeping in for me. Those golden hours before everyone else in the house gets up are simply incredible. I get to do a 20 min meditation, take the dog for a walk then go for a run before anyone else has had the chance to make any demands or voiced their opinion.

Our lives are stressful enough, it is important to find some time for yourself and relax and just be in the moment. I have found this out first hand recently when stress allowed muscles & tendons in my jaw to flare up. Somethings that may help are but not limited to meditation, exercise, talking with friends & family, reading a good book, listing to music, watching a movie or a nice 20-30 min mid afternoon nap.

Take some time for yourself today, watch some of the Masters and get ready to hit the ground running tomorrow.

“Don’t count on the days. Make the days count.” – Muhammad Ali

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

Redemption

The one constant in life is change. I can guarantee that you are not the exact same person that you were 10 years ago. Experience shapes and changes us all, most times for the better and sadly sometimes for the worse. So there is a very good chance that the person who let you down & disappointed you years and years ago has also changed for the better.

Redemption whether asked for or not is something that we should all allow to happen. Resentment towards someone else because they did you wrong a long time ago, only prevents you from moving forward. Let it go and move on with life. There is a good chance that they have forgotten about it anyway. Once forgiven it will be like a weight has been lifted from you allowing you finally to move on to bigger and better things.

I have always loved this Muhammed Ali quote ” A man who views the world the same at fifty as he did at twenty has just wasted 30 years of his life”.

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

2022 Federal Budget

Yesterday the federal government tabled the 2022 federal budget. While it seems that we are getting away from the spend your way out of the pandemic, this one seems more focused on the need to improve access to housing for Canadian’s. Here is how it is going to effect the real estate sector.

  1. They will invest 4 Billion over 5 years starting this year on a new housing accelerator fund aimed at increasing municipal housing.
  2. $1.5 Billion over the next two years on a rapid housing initiative with 25% aimed at financing for Women focused housing projects.
  3. A $7,500 tax credit to renovate your home or create a back yard suite for family or someone with a disability.
  4. The creation of a new tax free savings account for those under 40, that will allow first time home buyers to save up to $40,000 with tax free investments and tax free withdrawals.
  5. Increasing the firs time home buyers tax credit up to $10,000 with $1,500 in support directly to home buyers and it will be retroactive to home purchased since January 1st/2022.
  6. They are also increasing the home accessibility tax credit to $20,000, this is for renovations or alterations that improve a home’s accessibility.
  7. They are putting aside $475 million to provide a one time $500 payment to those facing a housing affordability challenge
  8. There will be a new rule implemented as of January 1/2023 labeled as the anti flipping rule as it will impose a tax on the profits of a sale of a home if it was owned for less than 12 months. This will focus on those who attempt to flip for profit rather than those who’s family situations require the sale of the home.
  9. They have also announced $5 million towards the creation of a home buyers bill of rights aimed at ending blind bidding. This will also include a legal right for home inspections something buyers have been waiving in favour of winning the bid.
  10. A temporary ban of foreign buyers ( non owner occupied) from buying residential properties here over next two years.

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

Now it’s official

Yes I know that Spring official began just over two weeks ago. However according to many who love sports it officially begins today. This is because the baseball season and the Masters golf tournament both start today.

I know my Dad and my wife’s Dad are both looking down today to cheer on their favourite teams and players. Although our beloved Montreal Expos are no longer playing the love of the game is still the same.

Speaking of the Masters what makes this year’s tournament so much more interesting is the return of Tiger Woods. After a near fatal car accident last January to returning to the Masters where he won the green jacket 5 times is an amazing accomplishment. While I have not heard his name mentioned as a potential winner, I would definitely not count him out.

Are your dreams & goals big enough to overcome any obstacle? A lot of people counted Tiger out from what he has gone though over the past 10 years. However he has never given up and continues to inspire us all with his persistence and his determination to win. Things will come up today or tomorrow that will knock your off your game, the key is the get back up and start over and keep moving forward.

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

Changing Rates Again

Bond yields increased again yesterday so therefor the fixed mortgage rates on which they are based also increased. If you are putting down less then 20% your 5 year fixed AAA rate is now 3.84% which is up by .05 basis points since last week. However if you are putting down 20% or more your AAA rate is now at least 4.09%.

The prime rate on the other hand is still 2.70%, and most lenders are offering discounts of prime less .90% now where last week they were offering discounts of up to prime less 1.10. So if you have a variable rate or are pre approved on a variable rate take note that the bank of Canada meets next on April 13th to announce the next change to the over night lending rate which will then change the prime rate. The prediction is that it will go up by .50% to 3.20%.

To put it in a little bit of perspective the last time that we had rates in the mid to high 3% range was in November and December of 2018. When the 5 year fixed rate got up to 3.69% for two months before going back down slowly. Then with the onset of the Pandemic in 2020 the 5 year fixed rates bottomed out at 1.79%. However bond yields are up due to inflation levels that we have not seen in 30 years and the instability of the War in Ukraine is not helping calm things down much either.

My role as your advisor is to give you the best advice so you can make a knowledgable decision about what to do about your mortgage. There are pro’s and con’s to all the options, it is best to chose the option that will allow you to comfortably sleep at night. Ask me and I will tell you the facts about the 5 year fixed vs the variable vs the short term 1 year fixed. Ask as many questions as you want as this is an important decision to make.

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

Walk the talk

All the best trainers and coaches know that success leaves clues. If you are not getting the results that you want then look to those who are succeeding. While there is no guarantee that doing exactly what they do will make you successful, I am fairly certain that it will however dramatically improve your results compared to what you are already getting.

As we are leading up to the Masters golf tournament this week, I recently read an article about Tiger Woods. There was an event a few years ago that featured Phil Mickelson & Tom Brady vs Tiger Woods & Payton Manning. Tiger being the hyper competitive person that he is really wanted to win the event. Payton on the other hand was prepared to approach it the same way that he has always approached golf which was to show up to the course 20 minutes early, hit a few balls then start. Tiger had him show up early, do his full warm up and prep work and approach it like the pro that he is and they ended up winning.

So if you are feeling a little bit off for some reason today, then just decide to walk, talk and move like someone who has it all together. Be confident that it will all work out and sooner than later you will be pleasantly surprised on how well things have gone for you today.

Today I am thankful for the brighter mornings, the bad weather that did not amount to much yesterday and the feeling of a fresh shave early in the 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 (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Positive feedback

Why is the default feedback mechanism for people to be negative. We don’t learn to improve by receiving constant negative feedback day in and day out. Psycologists and animal trainers both agree that the way to implement a change is through positive feedback. Yet if we receive feedback from 10 people and 9 are overwhelming positive but one was negative why do we only focus on the negative one?

The same goes for the news that we read, stories of war, devastation or financial collapse get more attention that the positive human interest stories. Look at social media, when there is a there is a post about an important topic, controversial or not there is always tons of negative feedback. Why is it that people find it so easy to tear someone apart from their keyboard yet they would never say the same thing to someone’s face?

Try for just one day that if you have nothing good to say then say nothing at all. Find every reason to give someone positive reinforcement, even if it’s something small like holding the door open for you. These little ripples of positive energy is exactly what the world needs right now. Whether Mahatma Gandhi said it or not, “be the change you want to see in the world” is a great quote to live by.

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