Tag Archive for: Vancouver Mortgage Broker

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

Find a way

There is no easy path to success, we all encounter obstacles and setbacks along the way. It’s when we are faced with these challenges that our true character is revealed. It’s in those times that we either find an excuse for why it can’t be done or we find a way to get it done. There are no other options.

Ask any successful person or read biographies of those who have achieved massive success and you will find example upon example of hard work and perseverance to get to where they wanted to go. Innate talent is just a label those who are unwilling to put in the work use to describe those who are succeeding as an excuse for why it is not working for them. When people says that someone is talented or naturally smart they are just discounting all the work and effort that they put in to get them where they are today.

Successful people don’t just come from any one demographic, physical location, religion or ethnicity. It comes from those who have the mindset that says that no matter what happens to them, they will find a way and get it done. There are tons of people who come from disadvantaged socioeconomic areas to become successful business people, doctors, lawyers, accountants or engineers. Just like there are many who have lost weight and kept it off by a change in mindset and lots and lots of hard work. The same applies to those who are seemingly drowning in debt and have somehow found a way to crawl out of it and pay it off without resorting to means that allowed them walk away from the responsibility.

So don’t let your current situation define you. You are more than your pile of bills, your current weight or you unfulfilling job or relationship. If you need a kick in the pants to get yourself going then pick up and read one of David Goggins books and see how he turned his life around and continues to excel every day. You got this.

Today I am thankful for my dog that gets me up and out the door every morning even when I don’t feel like it, a cool crisp run on a winter’s morning and the fact that I have overcome all my past obstacles to get this far.

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

January 2023 Inflation report

The inflationary report for January 2023 was released by Statistics Canada yesterday and we appear to be doing better than we expected. The market consensus had predicted that inflation would drop to 6.1% from 6.3% in December 2022. Actually we dropped to 5.9% which was the lowest rate since last February. So while we saw decreases in transportaion & shelter it is actually stubbornly high for food prices which are still accelerating at the fastest pace since 1981, up 10.4%.

Since the weighting of shelter & transportation in relation to food is higher ( based on spending habits from 2002) is why our overall inflationary rate dropped. The market is estimating that the rate will decrease again in February to 5.2%. If this is the case it will turn out to be the lowest rate in a year. Thus proving the the BOC’s actions are causing a reduction to spending and in turn slowing down the economy.

However it won’t be till March 8th when the Bank of Canada meets next until we know whether these new inflationary numbers are enough to cause them to pause on the rate increases. So while we can cut down on travel and other unnecessary expenses it is harder to cut back on the necessities like food. With the our dualolopy of Empire Group ( Sobey’s) and Loblaw’s ( Superstore) making record breaking profits on the backs of consumers there is little to no pressure on them to relent on increasing prices.

Bank of Canada governor even said after these numbers were released that companies must start to bring down these prices or he will be forced to keep raising rates until that happens.

Today I am thankful the rejuvenating power of exercise, kind words from clients and the knowledge that when one door closes another one is sure to open.

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

Librenoodle

More often than not we create far more problems in the space between our two ears than exist in reality in the external world. Truthfully we have the capacity to create a heaven from hell however most of us tend to go the other way around!

Librenoodle is just a play on words meaning that sometimes we just need to get out of our own head and out of our own way to make things better. Stop imagining the worst that could happen and instead focus on what is happening right now. The future has not happened and the past is gone.

During the day off yesterday I watched some travel bike packing video’s. In one of them a woman from New Zealand said that some days could be bad but they would not be 100% bad and that by focusing on that 1% then everything else would be all right. What a beautiful way to look at life.

Today I am thankful that my wild child is home for her spring break from university, that my son had a great basketball tournament over the weekend and that my eldest child is enjoying her spring break with her friends at University.

Things are never as bad as we make them out to be. We need to experience each moment as it is and also focus on where we ultimately want to go. We are driving this car called life and it’s not best to go around aiming at tree’s.

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

Update to Foreign Buyers

Two weeks ago I wrote about the new ban on foreign buyers here in Canada. You can read about it here. As new clarifications are coming out almost daily, here is an update based on what I have learned from my underwriters.

If you do not yet have your permeant residency status then you will need to provide your past 3 years of tax returns in order to get approved or pre approved.

Also we talked last about the area’s ( metropolitan and large centres) that you could not buy if you were brand new to the county. In the census data they are referred to as Census Agglomeration (CA) or Census Metropolitan Area (CMA) area’s. To see if the area that you want to purchase is outside of a CA or a CMA, then just click here and follow the steps.

If the property being purchased falls outside of a CA or CMA, then the new temporary resident guidelines DO NOT apply.  A temporary resident can purchase a property outside of a CA or a CMA without requiring three years employment history and other applicable requirements. 

Please click here to determine whether a property is located within a CA or CMA.  Please follow the guide below to determine whether the property is located outside, or within a CA or CMA.

Step 1: Identify the location of the subject property in the mapping tool. 
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Step 2: Determine whether the searched area falls under a Census Agglomeration (CA) or a Census Metropolitan Area (CMA). 

Example 1:

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Example 2:

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Example 3:

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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