Tag Archive for: Mortgage solutions

Everything is up

Everything is up but the paycheques. From food, gas, housing and even Netflix. Central banks around the world have been raising rates in the hopes of consumers putting the brakes on their spending. However if we stop spending too quickly it will put us into a recession. On the other side of it we still need to spend money just to live so something has to give.

The economy relies on consumers and businesses spending money but if rates and products rise too quickly then everyone will cut back on the spending all at once. The balance they say is a slow and steady change but that has not been happening with interest rates nor gasoline. It feels like a big game of chicken, someone has to give first and from all indications it seems like us cutting back on spending will happen well before prices and rates start to come back down.

The Bank of Canada raised it’s overnight lending rate this week by 50 basis points and further indicate that another rate increase maybe coming with the next meeting in July. Also with Russia showing no signs that is is through with their invasion of Ukraine so world oil prices will continue to stay high. So until these two things signal a change of course, tighten the purse strings as higher prices may be around for a while.

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

Bad Habits

There is an expression in fitness, “You can’t out train a bad diet”. I think that the same applies to finances, whereby you can’t out earn bad spending habits. Thinking that if you just made a little more money that you would then be able to get control of it and have enough to meet all your needs is blatantly false and a gross exaggeration.

The internet full of stories of celebrities, professional athletes, lotto winners and business owners who have gone bankrupt yet were by most accounts rich. There are also plenty of stories of people who by most accounts made a modest living yet when they passed away where quite wealthy. The main difference is that one group knew how to manage their money and the other group did not.

The first rule of money management is to spend less than you make. And if you are a proponent of YNAB as I hope that you are, their rule #1 is to give every dollar a job. Go beyond living from pay cheque to pay cheque and master this greatest stress that most people will ever have which is running out of money before the end of every month.

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

BOC June Meeting

The Bank of Canada is widely expect to raise interest rates again this morning. If they come through with another 50 basis points increase, this will be the 3rd increase in a row, amounting to 125 basis points in increases this year.

Yes it is true that inflation is at 30 year highs, the cost of housing has increased dramatically recently and the price of oil is through the roof. However the increase to the over night lending rate which then increased the prime rate that we see as consumers just further increases our housing costs. All of this is supposed to cause consumers to spend less money as the costs of borrowing has increased.

There is only so much discretionary spending that we can cut back as the costs of everything has gone up recently from food, to gas and now higher borrowing costs for housing. All this is blamed on supply chain problems due to Covid shut downs and more recently the war in Ukraine.

One of the best ways to insulate yourself against any other further prices increases is to learn how to better manager your money. The single best program out there is called YNAB, which stands for You Need A Budget. Instead of X amount into the future for Y, you give ever dollar you make a job and budget only what you make.

As expect the Bank of Canada increased the over night lending rate by 50 basis points, thus increasing the prime rate to 3.70%. However those of us on a variable rate mortgage are still better off then those who have switched to a fixed.

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

Past performance

Your past performance does in no way equal your future results. Companies frequently market mutual funds by touting their past performance but that in no way guarantees what it will do when you invest your money.

As individuals we too often get caught up in how we did yesterday to predict or think about how we will do tomorrow. Just because you failed or did poorly at something the last time out in no way predicts that your results will be the same the next time around.

Focusing only the moment and forgetting about any past failures or poor performances takes a certain level of mental toughness. I think of this every time I watch our Canadian girl Layla Fernandez play a major tennis tournament. This girl is incredible, she never lets dropping a game or a set get to her, she always focuses on what she has to do in the moment and grinds all the way to the end. Win or lose she is an inspiration for how she always strives to stay in the moment and make the best of every opportunity.

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

36 Years

A lot can change over 36 years, I am thinking of this as it is the length of time between the first and second Top Gun movies. I was 17 at the time of the first one and saw it when I was living in Quebec City for french immersion back in 1986. Went to see the new one yesterday with my best man from my wedding 25 years ago.

Since 1986, there have been 9 different wars fought around the world from the Iran/Iraq conflict all the way up to the current war happening in Ukraine. The population of the word has increased over 60% from just over 4,9 billion in 1986 to over 7,9 billion in 2022. Yet still no Stanley Cup for the lowly Toronto Maple Leafs.

However in terms of personal finance, a 5 year fixed rate mortgage averaged 11.25% and a variable rate mortgage had a rate of 9.95% back in 1986. So as much as rates have been increasing over the past 4-5 months, it pales in comparison to where we were just 36 short years ago.

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

The details

The devil they say is in the details, from this I am deriving that it is the little things done consistently over time that count. I am inspired to write that about being a frequent runner the past few years. Normally I would run 20-30K a week, however this past winter with an injury and the weather some days not being conducive to running I only got out a few times. As a result my normal pace of about 5:05/km is now about 5:25/km. So keeping consistent over time matters.

I will extrapolate this to personal finance as well. By saving money consistently and paying your bills as they come due will put you in a very strong financial position. You will have a solid nest egg built up and you will also have excellent credit. Those who have developed a strong delayed gratification will be much happier and wealthier in the long run than those who continually chase the latest and the greatest.

“Watch your thoughts, they become your words; watch your words, they become your actions; watch your actions, they become your habits; watch your habits, they become your character; watch your character, it becomes your destiny.”
― Lao Tzu

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

Peak Rate

People are complaining about how high mortgage rates have risen in the past 6 months. While not realizing how good that we had it over the past 3 years, where fixed rates dropped as low as 1.79% for 5 years.

Things have changed a lot with the increases in bond yields which drives the fixed rates. In the last four months alone the fixed rates have gone from 2.89% at the end of January to now having 5 year fixed rates as low as 4.29%. That is an increase of 140 basis points while the variable rates have increased by 75 basis points.

However don’t forget that the Bank of Canada meets next week to set the next over night rate and most if not all economists are predicting another 50 basis points increase. Some economists are saying that we may be approaching Peak interest rate, however predictions are just that and ultimately the market will decide.

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

Do Nothing

In times like this I keep thinking of this great quote, “All that is required for evil to flourish is for good men to do nothing”. Those leaders who say we will have less problems if all good men have guns too, is total nonsense if all they do is stand on the sidelines and do nothing.

It’s up to all of us to stand up and demand change for the better. Greta Thunberg proves the point that one person can make a difference. Even if you feel that you are up against overwhelming odds, as Mahatma Ghandi proved with his silent resistance or Rosa Parks with her refusal to give up her seat on the bus. Sometimes great change just starts with one determined person.

So basically what I am saying is to do the opposite of the title of this post. Do something, anything perhaps and keep doing it until things start the change. Enough of us want things to be better but most are afraid doing to action required to make it happen.

As I am a geek, I am going to end with this great quote from one of my favourite Marvel movies, “The price of freedom is high, it always has been. And it’s a price I’m willing to pay. And if I’m the only one, then so be it. But I’m willing to bet I’m not.” Steve Rogers Captain America in The Winter Soldier.

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

Amendment

amendmentə-mĕnd′mənt

noun

  1. The act of changing for the better; improvement.
  2. A correction or alteration, as in a manuscript.
  3. The process of formally altering or adding to a document or record.

In mortgage financing we get amendments all the time, when closing dates changes, when the prices change and if the purchaser’s on the original purchase and sale agreement have changed. It basically means that the first legal document was not set in stone as ultimate final version. Amendments are basically improvements to the original document. Also subsequent amentments can also nullify prior amendments as they are in fact additions or corrections to the original document.

Things change with time and need to be updated to keep pace. Amendments written 230 years ago are out of date reflecting archaic values and need to be updated to reflect current times. The sooner that certain people and socities can realize that the better and safer we will all be. Well certain places are behind the times yet are being held back by ancient values.

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 Intentions

The old proverb states that the road to Hell is paved with good intentions. Another way to put it is that Hell is full of good meaning and Heaven is full of good works.

Good intentions are like thoughts and prayers, totally meaningless. Nobody cares about that fact that you meant well, only that you did nothing to solve the problem.

The credit agencies don’t care about the fact that you thought a new flat screen tv was more vital than paying your bills on time. Your wife doesn’t care that you were having a really good time with your friends, only that you forgot to pick her up. The police officer does not care that you are running late for a big presentation, only that you were speeding.

For problems to get solved they require real action. Saying “it’s the thought that counts” is BS. Either do something to solve the problem or not. You are either part of the solution or you are part of the problem by not doing anything. Leaving your problems up to the “Lord” or “The Universe” to solve is also BS. Take some initiative and a whole lot of personal responsibility and just get it done.

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