Well,are the signs right in front of us?  Whether you are looking for a Fixed rate or a Variable rate mortgage, both of them may be increasing over the Summer months… why not hold a rate today?…. Let me explain.

the 5 year has been rising since December

Remember…

Fixed rates are affected by the Bonds, as they go up or down, so does the fixed rates…. Example, 5 year bond goes down, expect the 5 Year fixed rates to drop. Today the 5 year ranges from 3.19% to 3.59%

We hit an ALL-TIME low back in August and December 2011,

Also Remember…

Variable rates adjust by our Prime rate… They typically go up or down depending how our Feds set the Canadian Prime rate….

Many of us know Bank of Canada just met last Tuesday and announced Prime will stay still at the lending rate of 3.00%. .so to many Mortgage holders have heard variable rate is best. …But what if the bank only offers .20% below Prime? that is a 2.80%…. seems much riskier then the options we had in the previous 5 years…… What do you think ?

Well that just might be the Summer forecast mentioned in this Wall Street Journal, Market Watch .

So, to sum all this up….. if you are thinking mortgage savings in the next 4 months, why not contact me ASAP to secure TODAY’s discounts for up to a 125 days….whether it be a Fixed or a variable

.

Not only are some penalties calculated close to 28 months interest!!…..but we find that each institution has difficulty explaining EXACTLY how the penalty is calculated, and therefore we hear the line of…. “we will waive your penalty if you stay with us”…Yeah Right!, stop the retention strategies, a penalty is a penalty….Needless to say we’re happy to see the Government looking into this.

Harper Government Acts to Further Protect Consumers

The Honourable Ted Menzies, Minister of State (Finance), and Shelly Glover, Parliamentary Secretary to the Minister of Finance, today announced the Harper Government is moving forward with several measures to protect Canadian consumers and help them achieve greater control over their own finances.

These measures, part of Economic Action Plan 2011, include a ban on unsolicited credit card cheques; and a new, shorter cheque hold period which will take effect August 1, 2012, so Canadians will have more timely access to their own money.

Credit card cheques are considered cash advances, which generally incur higher interest rates and fees, and do not offer an interest-free grace period.

The proposed regulations banning the distribution of unsolicited credit card cheques will amend the Credit Business Practices Regulations to require federal financial institutions to receive the express consent of borrowers before distributing credit card cheques.

“As a result of this measure, Canadian consumers would only receive this product on request, and when they have made a fully informed decision to do so,” said Minister Menzies.

A new Mortgage Code was also announced. It requires that federal financial institutions explain the differences between mortgage products, including ways to pay off a mortgage faster without incurring penalties. The Code also requires that they provide more information on how prepayment charges are calculated.

“I applaud the Government of Canada for further protecting consumers with these latest measures on unsolicited credit card cheques,” said Laurie Campbell, CEO of Credit Canada Debt Solutions. “By ensuring unsolicited cheques are not received by borrowers, individuals will be able to determine if they want these products themselves. This will ensure protection for those individuals who may not fully understand how they work and the cost involved.”

“In combination with the Guidance provided by the Financial Consumer Agency of Canada (FCAC), this Code will go a long way in helping consumers manage one of the biggest financial obligations of their lives,” said Parliamentary Secretary Glover.

via: http://www.fin.gc.ca/n12/12-025-eng.asp

Not only is Patrice and her family friends with the Mullis family, but Patrice and Michael have worked together with OMAC Mortgages for 5 years in the Milton/Brampton area. Patrice has been in the Mortgage industry for over 13 years.

We look forward to the great caring advice that Patrice will bring to our team.

Michael Mullis

So Many of us Canadians have been caught up in Life, ending the summer with Vacations, or getting the kids ready for school. The last thing we want to worry about is….. ” Can today’s low interest rates save me money?”

Well, you may only have a few days to get the answer you looking for. Whether you are looking for a Fixed rate or a Variable rate both of them may be quoted higher in just a few weeks time… let me explain.

5 Year bond as of Aug 24th

.

.

Remember…

Fixed rates are affected by the Bonds, as they go up or down, so does the fixed rates…. Example, 5 year bond goes down, expect the 5 Year fixed rates to drop.

We hit an ALL-TIME low just a few days ago, and now the bonds have been increasing,

.

.

.

Also Remember…

Variable rates adjust by our Prime rate… They typically go up or down depending how our Feds set the Canadian Prime rate….

But, this is where it get interesting... Many of us know Bank of Canada just met and announced Prime will stay still. .so to many Mortgage holders our rate floats with a Prime rate of 3.00%.  Many banks are or were offering .75% below Prime…. so, we can get a rate of 2.25% !!!!

But… what if the banks weren’t happy with the profits from the variable, what if they changed the discount to only .45% below prime, which would leave us with a best rate of 2.55% !!!

Well that is EXACTLY what I see happening thanks to this write up in today’s Globe and Mail . and trust me, the rest of the banks will follow. In fact, I have already received some emails from some major banks notifying me of the increase.

Why you ask?…. well most of us know that the US has announced their Prime will stay low for another 2 years or so, which typically means ours won’t be too far off. So perhaps they feel they aren’t profiting enough on the discounted variable and are making the variable rate discounts to be less appealing, so we decide to commit to a fixed rate. Also this opens up the door to allow the Banks “retention” sector to be extremely aggressive to keep any business… but again, just my opinion.

So, to sum all this up….. if you are thinking mortgage savings in the next 4 months, you better contact me ASAP to secure TODAY’s discounts….whether it be a Fixed or a variable

.

With all the number crunching I do for for Canadians and their mortgages along with the sale of a home. Well, one question always comes up…. “Why pay all those Real Estate fees?

I decided to do some research and found some answers pretty quick………. This story below pretty much explains it for us.

Colby Sambrotto, who founded FSBO, just sold his Chelsea apartment for $2.15million

The founder and former CEO of a website helping people to sell their own homes has found a buyer for his own apartment with the help of a traditional real estate broker.

ForSaleByOwner.com creator Colby Sambrotto even paid the standard 6% commission after selling his two-bedroom New York condo for $2.15 million.

According to the Wall Street Journal, Mr Sambrotto spent six months trying to sell the apartment in trendy Chelsea through online listings and classified adverts.

But the DIY home selling guru eventually decided to turn the sale over to a professional.

Not only did broker Jesse Buckler set the price $150,000 higher than the  original asking price, he went on to lure the elusive buyer Mr Sambrotto’s self-help methods had failed to attract.

The Journal said the 2,000-square-foot apartment at The Lion’s Head building near Sixth Avenue is now under contract.

I also found this great outlook from The KCM Blog

His personal experience helps refute some of the myths Sambrotto has been espousing for over a decade. Let’s look at two of those myths:

Myth #1 – You Will Pocket More Money Selling on Your Own

Most FSBO sites say you can save the commission by selling on your own. What happened in Sambrotto’s sale?

From the WSJ article:

“The broker, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion’s Head building on West 19th Street near Sixth Avenue was priced too low and wasn’t drawing the right buyers.

By May, it went into contract, he said, after attracting multiple offers. It closed in the last few days for $150,000 more than the original asking price.”

Myth #2 – The Internet Alone Can Sell Your Home

Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity. What happened to the FSBO guru when he attempted to only depend on the internet?

From the WSJ article:

“Looking to move his family to the suburbs, [Mr. Sambrotto] said he carefully staged his apartment for sale himself, and put it on the market. But after using a mix of websites to publicize his apartment, he said he had only ‘middling success’ and switched to a broker because many buyers were so reliant on brokers.”

Bottom Line

There is a reason the real estate industry has been around for centuries: it performs a valuable service.

If you are a Realtor, you shouldn’t have to explain to your client what your value is… use this post to do that.

Click here to link to the pics on our Facebook Page

This seems to be the number 1 issue with my Realtor friends in the London and surrounding area…. if this hasn’t happened to you, then prepare ahead, because I see this more and more each week !…… here’s a 6 minute video that can help you.

Click here to link to my YouTube channel

Here’s the Best question you can ask to prepare yourself and see just how concrete your clients “Pre-Approval” is ……
Realtor:  “So I assume you are Pre-approved before we go house shopping? ”

Clients:   ” Yes, ______ Bank said I could look for $350,000

Realtor:  “Can I ask.. I always wonder what is best… are you pre approved for a Fixed or a variable rate Mortgage?”

If your client does not know the difference, then…DING DING DING , raise a RED flag!!…. Here’s why…

5 Year Fixed rate for qualifying is 3.89% (ish)

5 Year Variable rate for qualifying is 5.39% …. ( New Rule from Canadian Gov March 18 2011, must use BofC current MQR )

So… What does this mean?… here’s an example….

If a client makes $60,000 salary…. a 5 year fixed buys him a $265,000 house, but a 5 year Variable, he can only buy for $235,000

Now honestly ask yourself…. if your client doesn’t know this before you start showing him/her houses, well … what is your time worth ?

]]> http://www.themortgageteacher.ca/teachers-notes/real-estate-agents-need-to-know/feed/ 0 http://www.themortgageteacher.ca/teachers-notes/a-quick-thank-you-to-my-referring-clients/ http://www.themortgageteacher.ca/teachers-notes/a-quick-thank-you-to-my-referring-clients/#comments Tue, 19 Apr 2011 00:39:08 +0000 TheMortgageTeacher http://www.themortgageteacher.ca/?p=1216 With spring in the air we at The Mortgage Teacher wanted to use the opportunity to say “Thank You” to those clients that have helped our business grow and has referred our services to either a friend, a family member or work colleague.

Please click below and watch the video to see if you won…

Please click the gift card to watch....

March 18th, 2011.

If you or someone you know are planning on doing any number crunching on your mortgage in the year 2011 you may want to watch this video.

]]> http://www.themortgageteacher.ca/teachers-notes/coming-soon-to-canada-new-mortgage-rules/feed/ 0 http://www.themortgageteacher.ca/teachers-notes/social-media/ http://www.themortgageteacher.ca/teachers-notes/social-media/#comments Wed, 16 Feb 2011 06:58:13 +0000 TheMortgageTeacher http://www.themortgageteacher.ca/?p=1176 It`s hard to decide what to do ?… Really, I work on referrals and “word of mouth”, …. BUT, is there a way to grow the “Word of Mouth” ?

Hello fellow Neighbors and Business Associates, The Thames Centre Business Association (TCBA) formally the Dorchester Business association (DBA) has asked me to not only be a part of the growing organization, but also share some of my business techniques with the members that attend Wednesdays meeting so they can learn how they could apply Social Media to their own small business….  that’s right Wednesday the 16th at 7pm at the Dorchester Arena “BlueLine Room”.

I previously did some public speaking in front of others with in the mortgage industry in Las Vegas along with some of the guys from HGTV. Not only was the experience a fun one, but the feedback was motivating and has since helped many of the people grow their business at no cost.

I figure, if this could help people that I didn’t have a relationship with, I can only imagine how some of my tips could help a friend and neighboring business. Honestly, I am fan of local business and excited to show not just the world of Social Media, but what I like to call “Socialnomics”, hope to see you at 7pm at the Dorchester Arena…..

With respect,

Michael Mullis AMP

The Mortgage Teacher Inc.