Tag Archive for: mortgage professional

It’s about the numbers

Buying a home can sometimes be a very emotional decision. This is where you will be spending a great deal of your time so you want to get as many things right as possible. However it is also a good idea to take a step back and examine the numbers, because long after the initial honeymoon phase wares off you will need to be able to pay your mortgage and take care of the upkeep.

This is more important today as most listings are going with multiple offers and for well over asking prices. So buying that 399K listing for 525K will only make sense if you plan on staying there for a long time. This will give you ample time to pay down the morning in the event there is a market correction suddenly leaving you owning more than your property is worth. These corrections will not matter so much if the plan is to make it your forever home.

So look at everything from your mortgage payment, see if there is any deferred maintenance that needs to be tackled in the next few years and how much that will cost you. As well look at creating a home repair emergency fund as things do happen from tree’s falling on your roof or springing a leak in the basement. Are you planning on starting a family and the costs associated with that and will this be the perfect place to raise your kids and or pets. Lastly that vehicle that you are driving is it getting up there in Km’s and what will it cost you to replace it. The last thing anyone wants to be is house poor so look at all the numbers.

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

Rate increased

Just incase you were not watching the 5 year fixed insured AAA rate went up yesterday from 3.84% to 4.09% or an increase of 25 basis points. This is an increase of 120 basis points or 1.2% since the first of February. So it’s no wonder that the core inflation rate in Canada increased by 6.7% for the month of March. The costs of everything from fuel, food, housing and now mortgage rates have increased drastically.

So what are you doing to protect your self against the rising costs everything all around you. Are you cutting back on using your vehicle as much, have you stopped eating out, have you trimmed back some of the streaming services that you subscribe to for your entertainment or have you just buckled down and focused on working harder and putting more money away in the bank. The thing is the government wants us to continue to spend to keep the economy moving but also to cut back so we can tackle inflation.

We can’t have it both ways, something is going to have to give and if the rates increase too steeply and too quickly it may just push us into a recession as consumers and businesses cut back on any and all unnecessary spending. The next few months may be a bumpy ride so make sure that you are prepared the landing on the other side.

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

Blind Bidding

Blind bidding as it refers to real estate is when you put in an offer on a house with no idea what others have offered on the same property. You don’t see blind bidding at art of luxury car auctions yet they still seem to be getting record amounts for both of those products. So would a change to this rule and or ability help cool the housing market here in Canada?

Before I attempt to answer that, let me tell you a few things about blind bidding. In our current hot housing market, keeping the process of blind bidding in place will help property sellers get the top dollar for their property. Also Realtors get paid more as they earn a % fee of the sale as their commission. Since we are putting this all on the table, us mortgage brokers are paid a % of the total loan amount. So all three of these parties make more money by keeping blind bidding when homes are selling for top dollar.

However there are jurisdictions where there is no blind bidding such as Sweden, Australia & New Zealand. All three of these places have experienced dramatic increases in real estate prices as compared to Canada during the pandemic. So will removing the blind bidding process really help cool our hot real estate market? I don’t think so as the recent price growth has more to do with overwhelming demand in our real estate sector and very limited supply.

As always I welcome your comments and feedback.

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

March 2022 Inflation numbers

Well the inflation numbers for March 2022 just came out this morning and we are now at 6.7% ( up from 5.7 for February) or the highest rate since January of 1991. All the categories that Statistics Canada tracks from food, energy, shelter and transportation were all up. The largest increase is the 11.2% increase in transportation due to the rapid increase of the price of oil. Which is up 39.8% year over year, and now mostly due to the Russian invasion of Ukraine.

It’s this increased transportation costs that are pulling up the cost of food, durable goods and plane tickets. Economists are predicting that the inflation rate will remain higher than the Bank of Canada’s target range of 1-3% till 2023. Lowering your purchasing power as interest rates rise to try to offset the inflation rate.

If you are on a variable rate you can either sit tight and ride it out or pay slightly more and convert it over to a fixed rate.

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

Soft Landing

With the spike of interest rate increases the Bank of Canada is hoping for a soft landing to our economy instead of a recession. They want people to gradually slow their spending as rates increase so demand for products and services will decline and the prices of these commodities can reduce as a result.

That is the ideal result but it also fails to address the reasons for the inflation in the first place. Which most economists point to the supply chain issues caused by the pandemic and then with the Russian invasion of Ukraine which further jacked up fuel prices thus effecting the costs of anything that is shipped.

However there is a downside risk of a recession. This happens when there is a decline in economic activity from reduced spending and increased unemployment as companies costs dramatically increase as a result of higher costs of borrowing. If this happens then our famously low unemployment rate will increase rapidly and pulling us toward a recession.

One way to protect yourself is lock in your mortgage rate from fixed to variable. Doing this will automatically increase your monthly mortgage payment by about 1.5% as that is the difference between the variable rate discount and the current fixed rate. We all knew that the low rates would not last forever, just make sure that you understand all the risks before you make a decision.

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

Best Medicine

Sometimes when I am feeling off for some reason, whether it be physically or mentally the thing that always makes me feel better is a good workout. To get rid of what ails you as long as it is nothing serious it’s always best to move your body. Emotion follows motion as Tony Robbins always says. That little hit of endorphins is usually always what the doctor ordered.

It doesn’t have to be an all out workout, just something to shake off the funk. A nice walk or a short 10K bike ride are great examples. The best thing about exercise is that it helps clear the head along with making you feel better. Since most of us are off on this Easter Monday, take a few minutes for your self so you can shake off what the bad vibes and get some good ones.

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

Cart before the horse

I thought of this today as this is what you get when a salesperson try’s to sell you a product or service before knowing what you really want. When this happens we just end up with buyers remorse as most times we like to buy but nobody wants to be sold. Otherwise we would all be driving the same car, live in the same kind of house and dress the same way.

However I believe that there is a simple fix, and it’s all about listening and asking questions. Smart and intelligent questions will more often than not discover the motivation and or the pain that they are facing. Figuring that out you will know if they are just kicking the tires or if they have a genuine need to solve their problem.

Not everyone wants or needs a mortgage but most will need the access to the capital that the mortgage provides. Once that has been determined then we can go about finding product that works for you. For you this may be a fixed rate, others may want a variable or some may want and or need a HELOC. Getting to know you and your situation will help us both determine the best solution for your borrowing needs.

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

Good Friday

For those who are going to church to do the station’s of the cross, eat your fish and have a good Friday. To everyone else just try to enjoy your day off of work.

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

Personalization

As those who have read my posts before you know that I have read and attended the Dale Carnegie’s programs. In fact I have written about his first principal the 3 C’s before, and you can check it out here. Today I am going to touch on another one of his principals and how I am adapting it to my mortgage business.

His 6th principal in working to become a friendlier person is to remember that a person’s name is to that person the sweetest and most important sound in any language. This is why I strive my best to remember and use people’s name when I am taking with them. It is in that vein that I have signed up for a service called Hyperise that will look to personalize your visit to my website.

Whether you are surfing on your phone or your computer at home, most people are also logged into either their Google account, Facebook or Linkedin. This new service recognizes your name from one of your logged in services and places it throughout my website in the aim of personalizing your experience. I would love to get your feedback on your experience, good, bad or indifferent. Also if you want to try it out on your site just let me know and I can set you up with a free trial.

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

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