Lately a lot of my clients of had a difficult time deciding between fixed and variable when choosing their mortgage option. I certainly can sympathize with the decision that is not easy one to make. It seems that it all comes down to fear of missing out a relatively new phenomenon that we are experiencing in the world at large. FOMO has become a term popularized by the fear of missing out on interesting events, especially aroused by usage of social media. In my example here, social media does not have anything to do with the choice of fixed vs variable. Rather, FOMO here revolves around getting the best deal and making the best decision.
For example, if someone takes a variable rate today, there are always worries that the rates might go up by too much, too fast. If someone takes a fixed rate, have they really captured…
I got a call today from a client who wants to take out their RRSPs to make an offer on a house, but, we aren’t sure if their offer will go through. Now what? Will Revenue Canada tax him on the funds he withdrew? Can he put them back if this offer doesn’t go through? What if he finds another house he wants to buy, how does he get his money back again? If he decides not to buy anything can he fund his RRSPs again and not face any penalty? All good questions to which I have the answers!
Revenue Canada is surprisingly accepting of what’s happening in our surreal estate market these days. They know and understand offers come and go, deals fall through, and do not wish to tax someone for a house they did not end up buying for one reason or another within limits of…
It has been quite some time that I have put some writing on this blog. Simply put, the summer has been exceptionally busy and I have been dedicating my time to serving my clients as well as spending some quality time with my son who his growing up at lightning speed (matter of fact, today was his first day of school!). Since he’s starting that, I thought I would start today’s blog entry with a straight-from-the-heart post:
Why I Do What I Do
I do what I do because I love what I do. Wouldn’t you rather buy a car from someone who loves cars? Someone who loves cars so much they learn all about the cars they sell and also the cars they don’t sell? Someone who you can see their passion for what they sell shine when you meet them? I hope it’s the same feeling with me.…
I nearly fell off my Ikea chair this morning while eating breakfast and reading the newspaper. It appears the big banks are tired of fighting for just rate, and are now touting their amazing features as reason why you should go with them.. Please, if your sarcasm meter is broken, now is the time to turn it ON.
One paragraph I found most interesting was:
Rather than advertise a rate special, Bank of Nova Scotia is launching its spring mortgage campaign with a consumer poll showing that while 84 per cent of mortgage shoppers care about the rate they’re getting, a majority also care about other mortgage features, such as the ability to break their mortgage early or make extra payments.
After taking some time off from blogging I wanted to kick off 2015 by discussing mortgage renewals. Why? Lately I have been receiving a lot of inquires with many renewals coming up and in order to demystify the process I wanted to share my insight.
First, never ever ever take the offer you are given from your lender right off the bat. Most likely they have priced the renewal offer much higher simply because they are aware that many clients do not want to take the time to shop around. YET, shopping around can literally save you thousands in unnecessary interest costs, so it is worth your while to do so. Your lender knows that inherently people are either too busy or nervous at renewal time and therefore are offering rates (today) that are .10 to .30 basis points higher (or more). Although signing a renewal is a very easy…
You finally found it. After months of searching, and an ever-growing family, you found “the one” that will suit all your needs. Bigger, better, newer, and any other attribute you could name, this one has it. What a relief. You set a closing date 3 months out and post your house up for sale. It’s ideal for first-time buyers so you should have no problem selling it, either. You list your house for sale, and naturally three offers come to the table. After speaking with your Realtor, you decide the best course of action is to sell one week after your purchase date, and take a bridge loan to cover the difference. Relief sets in.
The above scenario is played out hundreds or thousands of times per year in our real estate market. It makes sense. Why not sell your house after you move into the new one, thus giving…
I’m an avid reader of the Globe & Mail’s Real Estate section, especially Dave Leblanc and Alex Bozikovic. Quite often we see dreamy renovations accomplished in their articles but rarely do we actually know how much they cost. When inquiring about this, the writers both mention the fact that the subjects did not want to reveal personal finances - quite fair in my opinion. It was interesting to see an article in today’s paper, then, that did discuss actual costs and showed us the final product. The Principals behind Solares Architects gutted and greened an old Roncesvalles home for $325,000 and have done an absolutely fantastic job. Two goals were accomplished: 1. a complete makeover of the property and 2. a complete energy update to the property. The results are astounding on both fronts, and the budget was quite manageable in my…
Ugh, Divorce. Big D. Terrible thing to happen to people, complicated, and tough. We all know someone who has gone through it, and we all know the costs involved. The last thing on anyone’s mind when buying a home with their spouse is the potential of divorce. The first thing on everyone’s mind when divorcing is “how much is this going to cost me”. Ok, maybe not the first thing, but eventually it’s a question we all ask.
I have a real-life story for you. I have a client who bought in January 2013 and took out a 5 year fixed 2.99% mortgage. He was a first-time buyer, recently married, and starting a new life with his young family. Unfortunately for one reason or another, things turned, and 2 years later they’re splitting up. They only put down 5% so they didn’t have much equity. However, housing has still remained…
Recently I ran into a disagreement with a client over the most simplest detail. What was it? Would you believe me if I told you that the client was unwilling to provide their bank statements WITH their account number on them? So much so that the client simply walked away and went back to their home bank - the same bank that can literally tap into their entire financial picture and get their last twenty years of history in one fell swoop. But I digress.
This incident got me thinking: How can I best explain to clients what is generally needed for closing of a deal? Well, here’s a list that will prepare you for that time!
1. Employment Documentation
Often times the lender asks for an employment letter and paystub from the past 30 days. If the paystub isn’t by ADP or Ceridian, or any standard payroll processing…
Many times I’m asked how to improve credit, how to keep good credit, or how to build credit. This blog post will identify what your credit score is made up of, and offer suggestions on what to do to affect the score.
First of all, the biggest effect on your credit is your PAYMENT HISTORY. 35% of the credit score relies on your payment history, which includes such things as details, collections, unpaid credit, amount of delinquency, dates of past due items and amounts of past due items.
Obviously it is most important to keep collections off your report, and to pay everything on time. That’s rule #1 in maintaining good credit.
The second biggest impact on your credit is UTILIZATION. This affects 30% of the credit score. This is where being over the limit hurts your credit greatly. This is also how many accounts you have, what kind of…