blog
ben tal (.pdf, 51.6 KB)
Dear Clients,
I guess this is my first New Year message to all of you. I hope you had a good holiday and are glad to be back at it. I know I am.
We are looking forward to a record setting year in 2012. I have a feeling this will be a pivotal year in the brokerage industry. It seems the four big banks are changing their game plan, including FirstLine owned by CIBC. CIBC is currently trying to take over our clientele by offering us less discounts. That is ok as we can get the same or better rates with other non big bank lenders with equivalent or better contracts and 2.89% rates. So not to worry it was time to move. Do be careful though. They have a pretty powerful call centre that is brilliant at retention. I have had three clients this week alone phoning me to find out who these people are from my office calling them. They are not from this office. If anyone is to call it will be me.
We were also working with ING but they too have changed their mortgage to follow the big banks into the NEW collateral mortgages the banks are selling to clients. Remember my email about the "mouse trap mortgages" if you did not read please do as so many people are going to find out after they sign that even the fixed rate that they received can change at any time and it will not be going down!
So if you are currently with ING you have a regular mortgage but definitely do not renew when the time comes. TD, BMO, ING and RBC are doing them currently CIBC is probably going to follow. We will keep you posted so you can tell your friends to investigate before they sign anything. Our help is free even if they do not use our services.
2.99% 5 yr fixed hit the headlines this week when BMO announced it. Lots of calls on that. I looked into the terms and they are extremely restrictive on pre payment, back about 25 yrs ago. The worst is they have the old sale clause on them so you can not change them for the 5 yrs without selling your house in an arms length transaction. For those clients old enough to remember the early 90's most of the hundreds of thousand personal bankruptcies were solely from that clause. 20 years later they are probably figuring you have forgotten or many of you were toddlers then.
Hence the rosy outlook I have for the coming years! With mortgages like this people will be coming to brokers to get their free advice which saves them thousands. So keep the referrals coming.
Attached is an article from Ben Tal which is a one page update on the world. Interesting. Prime is staying where it is at 3% for minimum a year probably two so do not change your mortgage. If the spring is bad in Europe we may see prime move down. You may start getting communications from Firstline trying to entice you into fixed rates or early renewals without consulting us so please email me to ask what to do before you let them convince you to pay more.
Thanks for all your referrals for 2011 we are committed to give our clients outstanding service to earn your loyalty and trust.
Cheers,
Suzanne
blog
Dear Clients,
I guess this is my first New Year message to all of you. I hope you had a good holiday and are glad to be back at it. I know I am.
We are looking forward to a record setting year in 2012. I have a feeling this will be a pivotal year in the brokerage industry. It seems the four big banks are changing their game plan, including FirstLine owned by CIBC. CIBC is currently trying to take over our clientele by offering us less discounts. That is ok as we can get the same or better rates with other non big bank lenders with equivalent or better contracts and 2.89% rates. So not to worry it was time to move. Do be careful though. They have a pretty powerful call centre that is brilliant at retention. I have had three clients this week alone phoning me to find out who these people are from my office calling them. They are not from this office. If anyone is to call it will be me.
We were also working with ING but they too have changed their mortgage to follow the big banks into the NEW collateral mortgages the banks are selling to clients. Remember my email about the "mouse trap mortgages" if you did not read please do as so many people are going to find out after they sign that even the fixed rate that they received can change at any time and it will not be going down!
So if you are currently with ING you have a regular mortgage but definitely do not renew when the time comes. TD, BMO, ING and RBC are doing them currently CIBC is probably going to follow. We will keep you posted so you can tell your friends to investigate before they sign anything. Our help is free even if they do not use our services.
2.99% 5 yr fixed hit the headlines this week when BMO announced it. Lots of calls on that. I looked into the terms and they are extremely restrictive on pre payment, back about 25 yrs ago. The worst is they have the old sale clause on them so you can not change them for the 5 yrs without selling your house in an arms length transaction. For those clients old enough to remember the early 90's most of the hundreds of thousand personal bankruptcies were solely from that clause. 20 years later they are probably figuring you have forgotten or many of you were toddlers then.
Hence the rosy outlook I have for the coming years! With mortgages like this people will be coming to brokers to get their free advice which saves them thousands. So keep the referrals coming.
Attached is an article from Ben Tal which is a one page update on the world. Interesting. Prime is staying where it is at 3% for minimum a year probably two so do not change your mortgage. If the spring is bad in Europe we may see prime move down. You may start getting communications from Firstline trying to entice you into fixed rates or early renewals without consulting us so please email me to ask what to do before you let them convince you to pay more.
Thanks for all your referrals for 2011 we are committed to give our clients outstanding service to earn your loyalty and trust.
Cheers,
Suzanne
blog
bring in the clowns (.pdf, 51.5 KB) BRIC (.pdf, 128.5 KB)
Dear Clients,
Happy New Year and welcome 2012! We sincerely wish you had an enjoyable holiday break, one that you can look back and say that was fun.
As we now head into the winter months we look forward to another successful year. Thank you to all who have referred your friends, family and co-workers to us! As we gear up for the spring housing market we remind all of you who are thinking of purchasing, moving or know first time buyers the importance of making it count in a modest growth market.
Attached are two articles. The first by Avery Shenfeld speaks to this year's upcoming US Election. Avery argues that work on financial policy will inevitably take a back seat as the focus of politics shifts to electoral campaigning - to which he refers to as ‘clowning around'. This notion doesn't particular sit well with investors, especially if things turnaround in Europe. The outcome = hamper on growth and failure to reduce their sovereign debt.
Article two by Peter Buchanan speaks of how the BRIC nations' (Brazil, Russia, India, and China) performing economies in the past helped the world economy through the troubles of 2008/2009. However, the BRIC darlings of the past decade are recently showing signs of short term economic issues - most notably double digit inflation and political uncertainty. Peter suggests these issues will hinder growth and the once steaming economies may not be so helping in the coming years if needed to the rest of us.
What this means to you is to stay on your variable rate mortgage. You've done so well this far and you will continue to do so. The winter months can be a blast so get out from the house and enjoy the outdoors with the family!
Current rates
1 yr - 3.09%
3 yr - 3.19%
5 yr - 3.39%
Prime - 3.00%
Chris Horrocks/Suzanne Boyce
blog
housing ben tal (.pdf, 223.9 KB)
Merry Christmas to the Best Clients Ever!
This email is including an attached update with Ben Tal on the Canadian Housing Market. He is explaining what you are hearing in the news and that we are not going into a bubble such as in the late 80's unless the rates sky rocket sometime in the future which is more than unlikely. He is also predicting that interest rates will not rise for another couple of years and even then it will be very slowly. Read the article so you know how to interpret what you are reading elsewhere.
January February is when the European Union is either going to collapse or make it through depending on what measures the ECB (European Central Bank) decides to do. I think they will be declining to do anything until the last minute to force the countries to make all the necessary changes to repair their deficits permanently.
So have a great Christmas and make it one that presents are not the focus but the happiness of your family in the coming year. Remember it is the experience that you and the kids remember not the material things! I like IOUs - such as IOU one week of camping at your favourite spot. Or for your spouse - IOU a three day weekend at a great resort or weekend at the races... That way you can plan together and anticipate the fun for months. It also forces you to make the time for the people who make your life worth living.
Thanks again for your support by sending all your referrals and your votes making us the best in two categories of Reader's Choice. Our mission is to make the experience of Mortgaging into an interesting and profitable experience for our clients. It does not hurt to make it kind of fun also!!!!!! In 2010 with your help we moved up to 16th in volume in Canada against much larger teams.
Last but not least none of this would be possible without the expert assistance of Michelle Baas now into her 6th year with The Personal Mortgage Group and the fantastic addition a year and a half ago of Chris Horrocks who is now working on all our mortgages with me. He will be moving from "agent" to "licenced broker" within the next 6 months!
Merry Christmas to all,
Suzanne, Michelle and Chris.
Here are some great activities coming up that sure beat shopping!
Twas the Night Before Christmas
December 3, 10 & 17, 2011
Westfield Heritage Village
Celebrate Christmas past from Georgian times to the modern era and feel the
warmth of the season through plays, food samples, fireworks, horse and wagon
rides and a visit from Saint Nick. Time: from 5:00 p.m. - 9:00 p.m.
www.westfieldheritage.ca
Holiday Crafts, Winter Hikes, Plant Lore and More...
Weekends November 26th - December 24th; Daily December 27th - January 8th.
10:30am - 4:30pm
Join RBG interpreters for a variety of family activities this holiday season. Go for a walk in the woods with the birds; explore winter traditions and the plants that have influenced them over time; or make a bird-friendly or holiday craft to take home. Bring your winter gear and enjoy the season with us!
Hamilton Children's Museum
School is out! Beat the winter blahs, join us for a beach party in December, Bask under the palm tree, nibble on fruity treats and create spectacular colourful beach themed crafts. The sun always shines at the Hamilton Children's Museum!
Note times:
Closed New Year's Day
Tuesday to Saturday: 9:30 a.m. to 3:30 p.m.
Sunday: 11:00 a.m. to 4:00 p.m.
Date: Wednesday, December 14, 2011 to Sunday, January 8, 2012 (Note times above)
Time: 9:30 a.m. - 3:30 p.m. and 11:00 a.m. - 4:00 p.m.
Ages: All
Cost: Regular admission rates apply to the museum.
Dickens of A Christmas 2011
November 26, 2011 to December 18, 2011
Presented By » Downtown Dundas Shopping District & BIA
Every Saturday and Sunday from November 26th to December 18th, between 11 am and 3pm, bring the kids downtown to meet Santa, enjoy a free horse-drawn trolley ride through our picturesque downtown shopping district and enjoy a free hot cider and gingerbread cookies, courtesy of the Merchants of Downtown Dundas. Enjoy Free Parking in Municipal off-street lots from November 24 to December 24, courtesy of the City of Hamilton
www.downtowndundas.ca
December 17, 2011 at 2 pm & 7:30 pm, Hamilton Place
Toronto Mass Choir
Ring in the season with the Hamilton Philharmonic and Canada's premier gospel ensemble, the Toronto Mass Choir. Hear your favourite Christmas carols in stunning gospel arrangements with this Juno award-winning 35-voice powerhouse ensemble together with full orchestra. The highlight of Hamilton's holiday concerts!
Buy Tickets
Mechanized Toys This Christmas
Hamilton Museum of Steam & Technology
Explore the moving toys of the past - push and pull toys; the power of springs, elastics and clockwork mechanisms and of course steam power. Make your own moving toy to take home.
Date: Tuesday, December 27, 2011 to Saturday, December 31, 2011
Time: 12:00 p.m. - 4:00 p.m.
Ages: All
Cost: Regular admission rates apply to the museum.
blog
Dear Clients,
Two and a half weeks until Christmas! I was just complaining last week about the Christmas music so time really flies.
NEWS: check out our new smart phone optimized website at m.personalmortgage.ca your comments are welcome.
As we all know the economic forecast is weak to poor for the upcoming year. We just attended the Hamilton Chamber of Commerce Economic Summit with the 5 Major Bank's economists this week. No one person can predict what is going to happen in the New Year with the European Union and the United States. There is too much politics playing out without care of the overall future of the general populous of the world. If we don't have a better selection of leaders in the major countries of the world (just watching the non election of the existing tyrant in Russia as an example). Including the difficulties they are having finding one good candidate for the Republican Party in a country with over 307 million.
But it is not all doom and gloom if you do not have debt outside your mortgage and can keep your job. The economists are of the mind that Canada is in for some slow growth which will keep us vulnerable to negative shock from outside of our borders. So again if you have not already taken care of excessive debt do so while you still have a bit of a chance. Negative shock means even more restrictions on lending.
MOUSE TRAP MORTGAGES (read carefully, actual collateral charge terms attached above)
WARNING: everyone should know almost all of the major banks (including as recent of this week with ING) have changed their registration of conventional mortgages to collateral charges rather than standard charges. Most of you do not know what that means but fair warning YOU HAD BETTER! Of course that is why you come to us your Broker as we watch all of this for you, but more that 65% of the population does not. UPON RENEWAL with these lenders, they will be able to convert your regular mortgage to the new collateral charge term without notifying you so never do a straight renewal with your current lender and if it is CMHC insured make sure the lender is not cancelling that expensive policy on you which protects you from this.
"Collateral mortgages are loans attached to a promissory note and backed up the collateral security of up to 125% of the value of the property." This is something TD brought in last fall and most of the others have followed suit as it is an excellent way to bind the client to them for life and make more money. (CMHC insurance does not insure these mortgages)
Effectively, collateral charges allow lenders to change the interest rate or loan more money to borrowers after closing. All that is needed to trigger an increase in interest rate is miss a payment on any item of debt you owe to any and all lenders, even if you have cosigned. This also can include debt outside of Canada.
Another trigger for an interest rate hike is increasing any of your debt. They do not have to ask your permission as you have signed all your rights to 125% of the value of your property over to the lender.
This will make it virtually impossible to borrow from a lender outside of this collateral loan as your TDS (total debt service) will be calculated on the full 500,000. even if you are not using it.
Example: working from the attached terms.
If you buy a house worth 400,000
Down payment of 150,000
Collateral mortgage at 3% 250,000 with a promissory note behind it registered to 125% of the value
A charge of 500,000 is what is registered on your 400,000 property by the lender. You have decided you wanted to make weekly accelerated payments on your house so your initial rate is not really 3% as they are compounding WEEKLY (52 times a year) not semi annually (twice per year) on their Adjustable rate or fixed rate, so really you are at approx. 3.20%
You go back to RBC two years later and you have done renovations and need a Line of Credit for 50,000 and a new vehicle for 30,000 and you need to cosign a loan for your kid for school of 10,000
Lucky you! RBC can help you out no charge saving you 800.00 on lawyer fees as they have an extra $250,000 of your equity to give you.
Now you owe 236,119 on your Adjustable Rate Mortgage as it is two years old. They change the rate to the going rate (or what ever) lets say 1.25% higher and give you the Line at 8% and the car loan at 10% and the loan for the kid at 10%. None of which are fixed interest. All is secured on your home. So now you have about 330,000 against your home.
Because you have made additions to your debt, this agreement allows the lender to change the rates to what they want. So they are being nice and increasing your rate on the "mortgage portion" to 4.25% from 3% still compounding weekly to actual approx. 4.45%.
Your kid forgets to make a loan payment on time or you were on vacation and a pay cheque is not deposited and you defaulted on a payment on any of these or any other encumbrances on your credit bureau, you are open to a change in interest rates again.
Remember we can now see all charges on the credit bureau as these are all collateral mortgages. In fact lenders can now see ALL MORTGAGES registered in Canada.
This is what Mortgage Brokers are calling MOUSE TRAP MORTGAGES. Once you are in you may not be able to get out. Sure you can pay all the penalties and discharge when you see what is happening but, you did miss a weekly payment and now you have bad credit on the worst thing possible, which is your mortgage. No "A" lender will want you for a year or two?? High risk lenders of course so to move you have to jump your rate anyway.
This family just wasted about 60,000 in five years.
Why even take the chance when you could have had FREE* advice from a Mortgage Broker who steers you clear of this type of lending by the Major Banks in our country.
Suzanne Boyce
blog
cibc report november 15 (.pdf, 40.8 KB)
Dear Clients,
Winter is finally coming! We really can't complain about our weather this year at all. Hopefully all of you had a great fall and made it out to at least one good old Canadian standby like a fall fair. Really I can not wait for some fun in the snow.
Attached is a report on the housing market and predictions for next year. It is looking great but as we are telling all of our purchasers you want to make sure you are buying a house that you will want to stay in for min. 5 yrs and you don't want to have to do a lot of work on anything.
The reason why, is the increase in pricing is slowing, even in Toronto and Vancouver and Newfoundland. The rest of Canada other than Saskatchewan (who is actually experiencing a real growth spurt) is showing an overall price increase slowing to 5% mostly driven by the two major centers. According to the chief economists this slow down is what is needed to make sure we have a recovery without the major home pricing drops that we saw in the early 90's. If we hold steady and something goes very wrong in the next few years we may see a drop of maximum 10%. This is good for the entry market and for those of us moving it will be a wash of course since you will be buying for less and selling for less.
The reason we do not like our clients to buy Fixer Uppers is with the new refinancing rules allowing only up to 85% refinance to take out the debt created by the renovations. If they bought for 90% to 95% loan to value and put 50,000 into renovations that increased the value by 35,000 (because the value is not increasing) they would only be able to refinance 30,000 of the 50,000 and the rest would be left on higher interest rate loans, lines or worse yet credit cards. As many of us know that can lead to a very miserable existence.
Europe is stabilizing again until the next disaster. Most economists are saying to be a successful recovery we can not just do a patch job we have to fix the real problem which is cutting back on government expenses (unless of course we want to increase taxes) Canada really has to pay attention and start pulling back at paying for everything the publics deems they deserve. We would be better off starting to supply the extras ourselves, as we may go the way of the free spending Europeans in years to come.
Have a good read.
Suzanne Boyce
