More Fine Print!

The Big Banks didn’t get to be Big without thinking about every angle they can bring in more profit.  Another detail you will likely be unaware of is the new “Collateral Charge” which looks shiny and nice on the outside, but much like the Hotel California, “you can check out, but you can never leave!”


Well, you can leave, but it will cost you.

This charge is sold on the benefit that if the client ever wants to borrow more money, they can simply go to the branch and they will use this collateral charge to secure those funds against your home instead of having to get a regular loan or refinance their mortgage (saving legal fees).  The trouble is other lenders won’t allow you to transfer your mortgage from that lender due to this charge, so then you will have to go to the lawyers and refinance…in other words, the Bank is trying to make it more difficult to leave, lessening your negotiating power.

There is a great article here discussing it in depth: Pros & Cons of Collateral Mortgages

As always, there is much more to talk about than just the rate of a mortgage.

Michael Anthony Lloyd

The important stuff is in the fine print…

One of the biggest mistakes Canadians make on a regular basis is judging mortgages strictly on the lowest rate…this is one of the least important aspects of a mortgage in fact.  For those who watch the netflix show “House of Cards” it is in the details of the mortgage where the real gain or loss will occur.


For example, did you know that all of the major banks have made dramatic changes to how they calculate their mortgage penalties on fixed rate mortgages?  In the past they would merely work out what they would lose between your locked in rate and the current “going” rate and you would pay the difference on your mortgage balance.  While this calculation was always murky and hard to nail down to the exact dollar, it was generally understood by most Mortgage Experts at least.  Now the “Big Five” have figured out a quiet way to make sure their profits are maximized.  By retooling the calculation they have maximized their returns on all of these penalties…and the majority of mortgage borrowers have no idea.

For a detailed discussion on how these penalties work click here Bank Penalty article G&M

With the average mortgage term in Canada only lasting about 3 years before we break the term, this alone will have a massive impact on Canadians…yet the first question people always ask is “What’s your best rate?”

We do have ways around this situation…more soon.

Michael Anthony Lloyd




Introducing the Canadian Home Renovation Plan!

CHRP Logo Dream Home A new plan for Canadians to maximize their home buying experience! Have you looked to buy a new home and had a tough time finding everything “just right” the way you want it?

Your Home Your Way!

Your Home Your Way!

Many times purchasers will find a home that almost meets what they want, but needs just that little bit extra, from paint & carpet, to finishing a basement, to adding a suite, to modernizing a kitchen or bathroom…we’ve all seen it!  The problem is that with most Canadians having put all or most of their money into the down payment for that house, they can’t afford to make those changes.  At the very least they may have to wait to save up to make them.  We have come up with a solution for this very situation…The Canadian Home Renovation Plan or CHRP! We are able to have your additions/upgrades/changes added to the mortgage so that you can make the changes you want now, and have it included at the same low rate as the mortgage, keeping your cash flow low and your new home satisfaction high!  You won’t need an expensive unsecured Line of credit, credit card or loan…this money will be financed with your mortgage.  Approved by CMHC, Genworth & Canada Guaranty, Canada’s three Mortgage Insurers to the Banks and lenders, this is a real program you can take advantage of now.

Check out a sample report from one of our Pre-approved homes: click here We work with a select group of Realtors and Mortgage Brokers across Canada to bring this to all Canadians. For more information please fill this in:

Great catalog of old British Columbia pictures…

Amazing array of pictures from BC’s past…wow!

Click the pic for more…

Roger's Pass 1962

Are your Credit Card Bills Arriving?

Holiday bills looming in the mail?
The holidays can really start to add up; vacations, dinner, gifts, that new PlayStation 4, that Spa day.  It happens!  So why pay up to 29% interest on your debts, when you could pay your credit card debts off with the lowest rate possible by refinancing your mortgage!

Refinancing your mortgage opens up the possibilities to:

Here are 3 tips to make it happen:

1.  Repair your credit – Follow our 6 Simple Secrets to Better Credit check list, and make sure you are still on track to refinance!  Low-income borrowers aren’t the only ones who can run into credit problems.  Someone with a higher score who misses a payment could take a bigger hit than someone with a lower score, because there’s further to fall when they stumble.

2.  Shorten the overall mortgage amortization – You can maximize your savings by opting for a new mortgage with a shorter amortization. Shift to a 15 or 20 year amortization from a 25 year and you will save thousands over your previous debt structure while likely paying out the same amount of payment per month.

3.  Build a good relationship with your mortgage professional – With new regulations, banks remain cautious about mortgage lending, but some show more flexibility to their better customers.  This is why having a good relationship with your mortgage professional is an asset. They can fight to get the best deal for you for the long run.

Ready to Refinance?

Contact Michael & his team now and discuss the options available to you. They can check to see if you would have a penalty to close your old mortgage early, how much it would be, and whether a refinance makes sense now or not based on running the numbers.  Regardless of the outcome, they can build a plan to help you with your budget and get you back on track for 2014!

the Michael Anthony Lloyd Mortgage team                            Ph. 604-341-8775  Email 

Adding to our team!

We are looking for a new member for the team!

Marketing Director required for Leading Mortgage Broker Team based in Surrey, BC

We would like to add an organized Marketing person in a Full Time Commission based role to our award winning team. Supporting the team with all aspects of marketing (Social Media, Direct Mail, Database Management, Systems integration) as well as various Admin roles, a Sub –Mortgage Broker is not required, a winning attitude is!

Key requirements are:

- Impeccable communication skills (phone, email, social media, spelling, interpersonal etc.)

- Are creative, a bit of a geek, and able to problem solve

- Able to thrive on chaos (we are a busy office where change is constant)

- You are an early adopter (we want you to drive the bus, not ride along)

- Able to self-motivate and lead others when need be.

- Not afraid to put your hand up when help is needed.

- Knowledge of lending/mortgages helpful but not essential, a winning attitude is!

- Able to develop and/or adapt our systems, always looking for more efficiency.

- Are open to a Commission percentage comp model.

- Love to have fun!


If this sounds like the opportunity you have been looking for, please send an email with your resume & ideas to


DLC Canadian Mortgage Experts is one of the fastest growing franchises in Dominion Lending Centres, the fastest growing Mortgage Brokerage in Canada. With over 70 brokers now onboard since our inception in January 2011, we are now DLC’s #1 franchise for mortgage volume in Canada.

More “Behind the Scenes” Mortgage Rule Changes that will affect you

CMHC quietly made changes to one of their programs that will likely affect all fixed rates going forward.  With lenders having to find new avenues of funding their mortgages that will be more expensive, borrowers can expect those costs (approx. .20% -.65%) to be passed on directly to the end consumer, the borrower of a fixed rate mortgage.  While economically we don’t have anything pushing fixed rates higher presently, we can thank our own Government for making increases happen regardless.

It’s the perfect time for those in variable rates to ensure we have a fixed rate (the 10 year at 3.99% presently is probably your best bet!) held in your name so we can watch over the next 4 months what happens and make a decision then.

For more detail on the changes see the article from Canadian Mortgage Trends:

This Change Will Have a Direct Impact on Rates.

Call our office at 604.536.8208 or toll free 1.888.536.8208

Michael Anthony Lloyd

Good one on Canada Day…

More upward fixed rate pressure…

The US Fed announced yesterday they will be slowing their buying of bonds and other monetary easing as they see the US economy starting to get into better shape…this caused mild panic on the stock markets, with most dropping suddenly late yesterday.  It also affected the Bond market in a way that it should not normally…with Bond Yields spiking.  See the below chart on the Canadian Government 5 year bond yield:

5 Year Gov't of Canada Bond Yield

5 Year Gov’t of Canada Bond Yield

What does this mean?  It signals that the Institutional Investor is nervous and unsure of where things are going…they don’t like that feeling!

Expect that this bumpy road will continue in the short term, until Investors see or feel more comfortable with the world economy…we will see more increases in the fixed rates, as well as some drops down the road.  Long term, there is no real justification for higher rates being maintained as of yet.

Michael Anthony Lloyd


The View May 28, 2013 Now or Later?


The past year has been a tough one for Canadians out there thinking of buying their first home or selling their current home and buying another.  With big changes to the mortgage rules, lenders coming and going, and a media seemingly hell bent on there being a housing bubble in Canada similar to the US, it has been a very tough call to make any kind of move.  Many people just haven’t…they have sat back and looked at all of this and got scared…scared enough to just sit and do nothing, waiting for some sign that the time is right…that sign isn’t coming.

People always want to ride the perfect wave when it comes to Real Estate…buy at the absolute lowest in the cycle, and buy at the absolute top.  I know someone who has been waiting for the bubble to burst since 1995, he’s still renting, his landlord loves him!  Let’s face it, for most people, the right time to buy is when they have their finances in order enough that they can afford to buy their home and still have a life.  Ideally they will have saved up 20% or more to save the CMHC fees, but this isn’t always realistic, especially in the Lower Mainland of BC.

The media loves to trot out rent vs. buy comparisons where Financial Planners will show how investing & renting instead of buying can move you farther ahead in the long run…I won’t argue that it’s possible, just that for many people the idea of paying someone else’s mortgage off while they pile up a large portfolio isn’t the same as owning their own piece of dirt.  These are the people that are sitting on the fence currently, really unsure of what to do.  I thought I would do a comparison of buying now vs. in the past.

2008; Min 5% down (Same), 5 year fixed 5.74%, 35 year am, Avg House Price $450k, Pmt $2,344

2013; Min 5% down (Same), 5 year fixed 2.89%, 25 year am, Avg House Price $500k, Pmt $2,282

So buying a home today will require an approximate average family gross income of $92,500 vs. $96,000 in 2008 to qualify, not a huge difference, but important.  That difference is magnified down the road however as the much lower rate and shorter amortization mean the 2013 mortgage will be paid off much faster than the one from 2008.  So a well negotiated purchase price today will put you farther ahead than if you had purchased 5 years ago…but…what if the argument is to wait for another year and see if the market drops more…say 10%?  This of course, is trying to predict the future, guessing the rates, and guessing there are no further mortgage changes, which are all still up for discussion.  For the sake of argument though, we will proceed.

2013; Min 5% down (Same), 5 year fixed 2.89%, 25 year am, Avg House Price $500k, Pmt $2,282

2014; Min 5% down (Same), 5 year fixed 3.75%, 25 year am, Avg House Price $450k, Pmt $2,251

Payment is $32 per month less, but more than offset by paying rent for a further year, though maybe you could save a little more down payment.

So while it can be argued that maybe the rate won’t go that high in a year, or prices could go down more, the risks are there too…the risk further tightening of the mortgage rules could occur (the more the media keeps pushing this “balloon” metaphor, the more the Finance Minister seems to want to act), prices may not drop that much (if most people have jobs, the desperate price drop is much less likely), or a million other possibilities.

I think it comes down to guessing the future is obviously impossible.  Based on the numbers above, for a slight decrease in price, the reward doesn’t seem to outweigh the risk of higher rates or tougher qualifying that we could see in the future.

If you have your down payment saved up, are wanting to make a move and feel ready, don’t let the media talk you out of it…and who knows, you may be able to get a great price now on your dream home.

Best of luck!

Michael Anthony Lloyd


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