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:

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 mikesteam@cmexp.com

www.homehappy.ca 

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 winners@cmexp.com

 

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

Mortgage Lenders Explained…

There are numerous Mortgage Lenders we Mortgage Brokers have access to, this is an interesting video explaining the differences:

Cash at Closing Explained

Is now the right time to consolidate your debts?

Check this out…

The POWER of Consolidation

At the end of 2012, the average Canadian had over $27,000 in consumer debt! High interest debt on credit cards, auto loans and other consumer loans can be difficult to pay off and may create a barrier to your financial goals.

 REFINANCE WITH A DEBT CONSOLIDATION MORTGAGE

 As a homeowner, one way to start managing some of your higher-interest debt is to refinance your existing mortgage with a debt consolidation mortgage. This allows you to borrow additional money on your mortgage so you can consolidate your debts into one simple payment. Now you can easily budget with ONE balance, ONE low interest rate and ONE lower monthly payment.

Refinancing your mortgage should not only be about getting a better rate – instead, it is important to recognize the power of consolidating debt as well. For example:

Current Mortgage $280,000 $1133/month 2.70% 30 year amortization
Current Outside Debt $25,000 $750/month 19.99% 25 years to pay off

This is a total payment of $1883/month.

The Michael Lloyd team can refinance this mortgage and create the following scenario:

New Mortgage $305,000 $1265/month 2.89%* 30 year amortization
Outside Debt $0 $0 0% 0 years to pay off

This is a total payment of $1265/month.

Most people would assume that the great 2.7% interest rate is something that a homeowner should leave alone and not move into a higher rate. However, in this case it makes perfect sense. This homeowner will be saving over $600/month!

 

This homeowner could now save the extra $600/month and have over $7200 available to place onto their mortgage as a lump sum per year making them totally debt free in 17 years!!

*Rate subject to change and used for example purpose only

New Daily Dig pics!

New team member Sirrekka Schoenfeld shared this pic of her “boys”:

Kobe&Chugger

Kobe & Chugger

Sirrekka Schoenfeld

Our team is a select group of individuals with varying backgrounds and one core belief…to find the best mortgage plan for our clients.

Sirrekka Schoenfeld

Sirrekka has always had a passion for business and real estate, she found the perfect fit by helping clients with purchasing and refinancing their homes.

Sirrekka enjoys meeting with clients to discover the best solutions for them.

From residential to investment properties, Sirrekka is experienced to help you make the right decisions by recommending a wide range of financing solutions based on your individual needs.

In her spare time, she really enjoys hiking and travelling and reading.

 

 

 

Sirrekka’s intro video:

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