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

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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,

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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

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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.

Federal Finance Minister Jim Flaherty announced tighter mortgage rules on Monday to combat concerns over high Canadian household debt.

“In 2008 and again in 2010, our government acted to protect and strengthen the Canadian housing market,” Flaherty told a news conference in Ottawa. “We continue to do so today.”

Flaherty unveiled three main changes:

- The maximum number of years the government will back a mortgage was lowered from 35 to 30.

- The upper limit that Canadians can borrow against their home equity was lowered from 90 per cent to 85 per cent.

- Government insurance backing on home equity lines of credit, or HELOCs, has been removed.

The first change is likely to have the largest impact. Buyers who purchase a home with less than 20 per cent of the value of the home are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.

Under the new rules, mortgages amortized over longer than 30 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 30 years in Canada.

After companies began insuring mortgages of 40 years or more, Ottawa set the limit at 35 years in 2008 before Monday’s move lowered it to 30.

“This measure will significantly reduce the total interest payments for Canadian homeowners,” Flaherty said.

Aims to stem tide on consumer debt

He was referring to the fact that anyone taking a longer amortization on their mortgage will be paying much more in interest on their home.

Flaherty pitched the lowering of the amount that can be borrowed against home equity to 85 per cent to ensure Canadians retain some equity in their homes.

“This will promote saving through home ownership and limit repackaging consumer debt into mortgages,” he said.

The final change, to remove government insurance on HELOCs, came as a result of Ottawa’s concern that certain financial institutions were allowing homeowners to roll too may consumer purchases into CMHC-insured mortgages.

“I think that’s particularly risky because some of those loans are not used to create housing. They’re used to buys boats, and cars and big-screen television,” Flaherty said. “That’s not the business that home insurance was designed for.”

While Flaherty called the changes “moderate,” they did not include an increase to the five per cent minimum down payment Ottawa requires for a home purchase. They also stopped short of a proposal that surfaced last week which would have required 100 per cent of condo fees to be included in the list of expenses that are measured against income when financial firms consuder a mortgage candidate. Currently, only 50 per cent must be included.

The changes also come following recent warnings from the Bank of Canada on household debt levels.

In December, bank governor Mark Carney cautioned Canadian households and businesses not to be lulled by current low interest rates, because repercussions from a hike could be swift.

Rates ‘will rise’

“While rates are low by historical standards, they eventually will rise,” Flaherty said Monday. He dismissed the notion that the announcement was timed to precede the Bank’s next decision on interest rates, which are set to be revealed Tuesday.

“The particular timing today is not related to interest rate announcement,” Flaherty said. “The governor and I speak regularly, and we discuss these types of issues [and] we make an effort to make sure government policy complements the Bank of Canada’s monetary policy.”

Last week, Agathe Cote, a deputy governor at the bank, told a Kingston, Ont., audience that a sudden weakening in the Canadian housing sector could affect other areas of the economy given the high debt loads of some households.

If that shock hits, Canadians would be expected to cut back on their spending, she said.

Flaherty’s announcement is the second time in three years that the government has clamped down on mortgage rules. In 2008, the government brought in several alterations, including:

- Cutting the maximum amortization period to 35 years from 40.

- Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.

- Establishing a requirement for a consistent minimum credit score.

- Introducing new loan-documentation standards.

via: CBC News

For some, the start of another new year means that for the next few weeks, I’ll have a tough time finding an empty parking spot at the gym. By February, however, most of the new recruits will have vanished and the elliptical trainers will be mine once again.

I guess you could say I’m a bit skeptical about New Year’s resolutions. I never set them, so I never fail to live up to them. What I do believe in is good routines that last throughout the year. For that reason, I’ve made it a habit to review my financial responsibilities at least once a year – or sooner if I’ve experienced a major life change – to make sure I’m on track to meet my goals.

With that in mind, here are seven things you can do today to set yourself up to be more financially prepared and prosperous in 2011:

1. Write down your financial goals

It’s hard to make financial decisions without having goals to guide you, and having a written financial plan can help you stick to those goals. “Like anything else, if it’s thought about, that’s a start. If you take some action on something, that’s better, but if it’s written down and you’re holding yourself accountable, it’s that one level further,” says financial adviser Ted Rechtshaffen. If you already have a plan, great, but goals change as you age and as your life changes, so you need to review them regularly.

2. Organize your spending

A budget is a big part of financial planning and keeps you on track to meet your goals, so put your income and expenses on a spreadsheet and review it annually or whenever there’s a major change in your life. Track your expenses with free tools found at sites such as money.strands.com and mint.com/canada/.

3. Check your credit report

Your credit report is more than just a history of bill payments. It can provide you with an early warning signal that something is amiss. Financial expert Kelley Keehn recommends you get a free credit report at least twice a year from Equifax or TransUnion. “Even if you’re not concerned about your score, you’ll want to ensure that accounts that should have been closed were, nothing is on there that shouldn’t be, and to look at the inquiries on your report: Are there any [loans or credit cards] listed that you didn’t apply for? If so, that would be a tipoff that someone has stolen your identity,” Ms. Keehn says.

4. Cut your fees

Once a year, pull out the statements from your mortgage, insurance, banking and credit card companies and spend some time researching whether you can get a better deal. It sounds time consuming, but it can be done fairly quickly using online tools and calculators. As for the Mortgage, The Mortgage Teacher has an easy “Ask a Question”. As for the Credit Cards The Financial Consumer Agency of Canada is a good place to help learn some tips with tools to crunch the numbers , bank fees and credit cards. And Kanetix.ca is a one-stop site for comparing premiums on home, auto, travel, health and life insurance.

5. Do an investment checkup

You have to rebalance your portfolio regularly – at least once or twice a year, plus any time there’s a big movement in the markets, says Norman Raschkowan, chief North American investment strategist at Mackenzie Investments. This year has brought strong gains in many sectors, especially emerging markets, small-cap stocks and income trusts, so if you hold such investments and have left them on auto-pilot, your portfolio may no longer meet your risk-tolerance level. “It is a good time for people to revisit their asset mix in light of their own risk tolerance,” Mr. Raschkowan says. “Simply introducing that discipline into your investing philosophy can enhance returns and help to reduce risk.”

via: Thanks to Dianne Nice, Globe and Mail