Tag Archive for: mortgage professional

Limits, labels & expectations

Life would be much better for us and everyone around us if we just stopped putting limits, labels or expectations on ourselves and others. Athletic achievements are being broken almost everyday yet we have not evolved significantly in the last 100 years or so.

People are forming companies and creating more wealth for themselves and others than has ever been thought possible. Yet at the same time, there are still millions struggling to get buy monthly what the average person here in North America spends per day at Starbucks.

Lastly more strife and division has been created in society because we put labels on people or groups because they are different than us. It should not matter if someone is of a different ethinicy, sexual orientation, or religion. We are all just human and we have far more in common than we differ. 

It is when we lift the limits, labels and expectations for ourselves and others that the true magic in life starts to happen. Once you believe that anything is possible, your world will change for the better exponentially.

Let us all strive to remove limits, labels and expectations from our lives and embrace the infinite potential that lies within us all. Let us celebrate our differences and recognize that diversity is what makes our world so beautiful and unique. Let us support and encourage each other to push beyond our perceived limitations and reach for the stars. Remember, anything is possible if you believe it is. So, let us believe in ourselves and in each other, and together we can achieve incredible things.

Today I am thankful for the weekly speed run where I push past my previous limits, that my wife just received her new birthday present two weeks early and the power that comes from thinking that anything is possible.

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

It’s NOT always about the rate!

Marketing people are clever. They know that we will be attracted by the shiny object, the sexy supermodel or the fancy headline. This is why car companies still market cars based on their 0-60 times or their range for the electric vehicles. When all that really should matter is their reliability, safety and that there is a robust charging network for the electric vehicles. 

People use to sell office photocopiers based on speeds and feeds. Computers used to be advertised based on the gigahertz of the processor. When all that really mattered was that it printed or faxed your documents and ran your necessary programs to get your work done.

Mortgates are no different. Watching a few minutes of the Leaf’s hockey game last night I saw an advertisement for one of the new national players in the mortgage space and it was just based on rate. While we all have access to similar low rates, the sad part is that not everyone qualifies for the lowest advertised rate.

The things that impact your rate will be but are not limited to your credit, type of income, size of down payment, amortization, type and location of property and debt service ratio’s. If you have had credit issues in the past and all you see online or on the TV are the lowest advertised rates, then you may end up being disappointed when it comes time to apply for a mortgage.

Sometimes getting your mortgage approved and funded so that you have a roof over your head is more important than the actual rate. As someone who has been a broker for over 21 years now, I never sell or market on rate but always try to get the most competitive rate and terms for each client. 

In the end, it’s not about the rate. It’s about finding a mortgage that fits your unique situation and allows you to achieve your goals, whether that be owning a home or investing in real estate. So, don’t be fooled by shiny advertisements or low rates that may not apply to you. Work with a mortgage broker who will take the time to understand your needs and find the best solution for you.

Today I am thankful for finding options for clients when sources that we wanted to go with said no, that the conversation about rate is always an opportunity to discover what is most important to the client and that variety of clients realy is the spice of 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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

Gordon

The name Gordon is quintessentially Canadian like poutine, hockey or maple syrup. The popularity of the name stems from the Scottish ancestry that was common among many of the early settlers to Canada. While we are much more diverse today, the name is common among many famous Canadians and was even the name of the debut album by Barenaked Ladies. 

Here are just a few of our famous Gordon’s. Mr Hockey Gordie Howe, and if you were lucky enough to have a goal, an assist and a fight in a game you would have had a Gordie Howe Hat Trick. Gordon Sinclair the legendary journalist & broadcaster from CBC’s Front Page Challenge. Gordon Pinsent the “CodFather” famous actor from Newfoundland. Gord Downie who was the lead singer for the Tragically Hip. 

I was inspired to write this today as we just lost another one of our famous “Gordon’s”. Gordon Lightfoot, the iconic signer/songwriter passed away last night at the age of 84. While my kids may never have heard one of his songs, he was one of Canada’s greatest musicians. Leaving us with great songs like “If you could read my mind”, “Carefree Highway” and “Sundown”. Just ask Alexa to play some Gordon Lightfoot today to celebrate his incredible accomplishments in music.

His legacy and contributions in music will always be remembered and cherished. Many Canadian artists have been inspired by his work, and he has undoubtedly made a significant impact on the Canadian music scene. His music will continue to live on, and his name will forever be remembered as one of Canada’s greatest musicians.

Sorry I can’t always write about mortgage & finances.

Today I am thankful for the musical legacy left to us by Gordon Lightfoot, that he was a great songwriter because of a little inspiration and a lot of hard work and that his work will continue to inspire us for years to come.

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

Another one bites the dust

As the great Queen song goes, “another one’s gone, another one bites the dust”. I woke up to the news that another bank has failed today. This time it was another troubled California lender, First Republic Bank. 

Regulators seized their assets early this morning and most of it’s assets and all of it’s deposits were sold to JP Morgan Chase in a bid to stabilize the banking sector. This was the 3rd large US bank to fail this year, 4th large banking failure if we include Credit Suisse who had to be reluctanly taken over by UBS.

What causes this you may ask? Well it all starts with a run on deposits when large sums of money are withdrawn from the bank as people hear rumours that their money won’t be safe. Basically it is an evaportion of confidance that they will be able to protect the money that you have on deposit with them. When the confidance is lost then the bank will quickly fail if enough of the deposits are withdrawn.

Can a bank fail here in Canada? While possible, it is highly unlikely. Since the Canadian Deposit Insurance Corporation was established in 1967 there have been 43 bank failures. However in the US there have been more than 500 since the year 2000. For instance the Canadian banking sector is made up mostly of the big 5 well capitalized banks whereby the US have smaller or mid-sized regional banks spread across the country. 

How do you protect yourself? Make sure that your bank is a member of CIDC. This means that your deposits of up to 100,000 are fully protected. This covers your chequing and savings accounts, TFSA’s, tax free home savings accounts, RESP’s, RRSP’s, Disability savings plans, RRIF’s and trust deposits. There are also calls to increase the coverage as the US FDIC covers up to 250K US or 330K CDN.

It is important to also do your own research on the stability and financial health of the bank you choose to do business with. Check their credit ratings and financial statements to ensure they are not at risk of failing. Diversifying your investments and keeping some cash on hand can also provide some protection in case of a banking crisis. Overall, while bank failures may be a rare occurrence in Canada, it is still important to take precautions and stay informed about the stability of your financial institution.

Today I am thankful that I finely have all my kids home, that my girls has a great 1st year at university and that I made it though running every day in April.

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

Friends with benefits

Friends with benefits after a snow storm are neighbours who have snowblowers who take pity on you while you are shovelling your driveway. I don’t know what you were thinking! Although the fresh air and exercise made me feel much better.

In terms of mortgages, they are family members who are able to help you out either with a down payment or to come on and co sign a mortgage with you if you are having challenges qualifying for the mortgage on your own. If you don’t have any friends with benefits at least you can be there for someone else.

Today I am thankful for those nice people with snowblowers, the enjoyment of seeing my son and his dog play in the snow and the slower pace of a snow 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 (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

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

In the news

Many news outlets have published stories recently about the vast increase in the amount of private mortgages that Canadian’s are taking out in an effort to complete their real estate transactions or stay in their residences, increasing by 72% between 2019 and 2021. Many factors led to the increase in those taking out private mortgages, the boom in the housing market during the pandemic, the implementation of the stress test causing borrowers to have to qualify at much higher rates and not being able to qualify with traditional lenders due to credit or income.

While this is in the news, people have to realize that private mortgages are NOT long term financial solutions. They are short term bridge loans, meant to take you from point A to point B as quickly as possible. That’s it! If advised property and taken with the correct amount of caution then private mortgages are sometimes an ideal solution to help you get to where you want to go.

I have had clients use private mortgages to help them complete multi unit apartment buildings that were under construction, allow them to purchase a home as their current residence had not closed yet and also because their income did not allow them to qualify for traditional bank financing. They are a financial tool and when used wisely will allow people to reach their objectives. However they are not a one sized fits all solution. They are expensive and you are only paying interest payments on the mortgage. Ask lots of questions and know what you are signing up for, and most importantly plan your exit as to how you will pay off the loan in 12 months time.

It pays to have the right advice so contact me when considering whether taking a private mortgage is the right thing for you to do, and don’t forget to have your exit plan ready too.

Today I am thankful for a cool crisp run this morning to wake me up, another opportunity to sign up and do my annual ride for Cancer and private lenders who are trustworthy and provide a valuable service to my clients.

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

Perception vs reality

Johnny & Frankie were invited to Suzie’s birthday party. Johnny was in a bad mood when he got there as his parents made him clean up his room before going to the party. However Frankie was in a good mood as he had already cleaned his room and got to play video games before going to the party. So as a result Frankie had a great time and thought it was a great party while Johnny didn’t talk with anyone and thought it was a stupid party.

Their attitudes skewed their perception of the party. Since Johnny was in a bad mood it was a bad party and Frankie was in a good mood so it was a good party. Their perceptions affected their reality. The same thing applies to many things in life as this shows that we get what we focus on. When we are happy we see everything as contributing to our happiness and the same is also true when we are in a bad mood.

The game of perception vs reality is alive in well in the real estate and mortgage businesses as well. Two different couples viewing the same property could have vastly different experiences. One group sees a dump and is insulted that their realtor showed them the property while the second group sees the stream running though the back of the property, the huge yard and the great potential of the property with a little hard work. Same property two different perceptions.

In regards to the mortgage market, I have access to private funds for people who would not otherwise qualify for traditional financing. Presenting a private option to a high net worth client who has impeccable credit and provable income may come across as insulting to them given the high cost of funds and that they would qualify for a much less expensive option. However a private loan may be a life saver to a couple who have had a few hard nocks and provide them a life line to turn their situation around for the better. Same product two different perceptions.

So how you perceive things may change from day to day and person to person. A speeding ticket may be the wake up call for one person while sending someone else down a spiral thinking that the law enforcement was out to get them. When we change our perception our reality changes.

Today I am thankful for chance to change people’s perceptions on a daily basis, that my daughter called asking for my help at 6:30 am today and knowing that every situation can be viewed either good or bad and the choice is up to us.

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

Hard Things

One of the keys to having a great day is by starting with hard things first. I have always gotten up early and do my workout 1st thing in the morning, it makes the rest of the day so much better. Today I got up, did my meditation ( thank you headspace) my stretching ( we have to stay limber as we get older) and walked the dog. Because it was -12c I wasn’t really excited about going for my run but I did it anyway.

Since I don’t drink coffee, the morning workout is my primer for a great day ahead. Even though running in -12 didn’t excite me, it was a nice bright clear morning and I need to stay consistent if I am going to do the half in the Bluenose in lest than 3 months. It was a great run and I am glad that I did it, and I have never regretting doing a workout and knowing that always helps.

We all have things that we want to accomplish but sadly most of don’t make any consistent progress toward our goals. Personally I find by doing the hardest things early in my day the rest of the day is a breeze. Have a paper to write, then get at it first thing. Prospecting, paperwork or planning for an event? Then get this done the earlier the better. Big tasks taken off your to do list will make doing everything else that much easier. This gives you the sense of accomplishment that provides the spark to get everything else done as well. So start well to end well.

Today I am thankful for the power of daily routine to keep me going, doing things that I didn’t want to do but glad that it got done and for clients who see my posts and think of me to help them, thank you.

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

Bridge Loan

Every once in a while people need a bridge to get them from point A to point B. This can be required for any number of reasons from divorce, less than perfect credit, unable to accurately prove income due to self employment, fix & flip or need to take advantage of an opportunity.

Bridge loans are also described as private or hard money loans. While not inexpensive they do service their purpose in helping those who need it obtain financing when they would otherwise not have it. However take note that these are not long term solutions and should only be used as a bridge to get you from where you are to where you want to go.

In most cases these loans are interest only so you are not paying down any of the principal. So once your credit has improved, you are able to prove income for an A lender and your project is completed then it’s time to exit the bridge loan for a less expensive option.

One of the benefit of this product is that it puts more of its emphasis on the value of the property than on the strength of the borrower. For this reason rates are normally 12% in first position and lender’s fee’s can be as high as 8%. Downpayment or equity in the property must be at least 25% of the value for this to work as well. So while they are a viable solution to many problems they are not for everyone, this is why I always advise my clients in advance the risks and the costs of this option before proceeding.

Today I am thankful for having my daughter home from university last week, getting back on track on a few projects that I had put to the side and helping clients find solutions that worked for them.

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

What goes up!

We all know that old expression “What goes up must come down”! In this day and age does this apply to our current variable rate mortgages. Before the Bank of Canada stepped in early last year our prime rate sat at 2.45%, we are currently at 6.7% after having gone up 8 times in the past year.

Inflation is now at the lowest level in a year, coming in at 5.9% vs the high of 8.1% back in June of last year. While still not the 3% target, it is still much better than where we were. In fact the price of gas has come down quite a bit since this time last year. In-fact most things are coming back to earth with the exception for the price of food.

The stubborn continued rise in the price of food I am blaming on the “Greedflation” of our grocery chains who are making record profits on the back of hurting consumers. While I am never against making a profit, they have crossed the line and continue to line their pockets in the process. After watching Clarkson’s farm on Prime recently this may be the ideal time to reach out and start getting subscriptions from our local farms and cut out the greedy grocery chains.

A quick google search will help you find many farmers or farm markets who are much more deserving of profits than any large corporation. I digress as this is still about inflation and many economists are predicting that we should be back at our 3% target by mid next year. So if this is the case then prime rate may start to come back down if the economy slows down too quickly or stalls. If you are still hanging on to your variable rate mortgage, use your best discretion about where you want to go, don’t let someone sell you on a fix rate that would come with a higher penalty to break it if that is not what you want.

Today I am thankful for a snow day to spend with my kids, neighbourhood kids who will shovel my driveway for $2, my dog who alerts us when Amazon arrives.

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