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