Mar
20

Look How Many Times Garth Turner Is Wrong

Today I had the pleasure of reading this full-of-holes blog on the internet by Garth Turner, a post that I will counter with my own bold points.

Garth says:

In the first two weeks of March real estate deals in Toronto were down 11.5%. Sales of single family homes dropped about14%. This is consistent with every other market in Canada. Year/year transactions have plunged from single digits (Calgary) to a withering 40% (Lower Mainland). There is not a single major city or province where the pattern has been breached.

This is spring, and mortgages are 2.99%. Go figure. As night follows day, lower prices trail falling sales. Especially in 2013.

That’s funny because the City of Toronto keeps experiences rising prices in Real Estate.

So why would anyone empty their bank account and chunk up on debt to jump in now?

One main reason is that we are at all-time lows for mortgage borrowing costs. One other thing that dear old Garth doesn’t advise is to pay at much higher rates. Something I advocate heavily to protect yourself against rising rates, something we may not see until at least end of 2014 says Bank of Canada.

He continues with “Laura”, surely a figment of his imagination because I could NOT imagine any sane woman or man writing to Garth for advice. But I digress… Let’s continue!

Ask Laura.

Garth, we really need your help. The area of Toronto that we live in is expensive regardless as to whether or not you want to rent or own.  We are busting out of our rental apartment and need to move to at least a 3 bedroom home with 2 bathrooms.

I know you have always written that renting is better, but I cannot find a 3 bedroom, 2 bathroom rental in…

Mar
15

Why I Hate Mortgage Life Insurance

Ok, let’s face it. You were smart enough to work with me, your mortgage agent. You knew I brought many benefits to the table that the big banks don’t - knowledge of the products, access to various lenders, and great rates and service. But then you want to buy my life insurance? Really? Full disclosure: I get paid if you do so I shouldn’t be complaining should I? Truth: You couldn’t pay me enough to like and stand by the product enough. I’ve always believed the most successful sales people are the ones who believe in the product they sell. If you asked me to sell lids to coffee shops I couldn’t, because I don’t care. For some reason I was fortunate enough to start in this business ten years ago and having visited so many buyers and being part of their improvement in net worth AND quality of life has made me realize I’m the luckiest person to have this as a career. All that being said I stop the train at mortgage life insurance and here is why:

First it is a post-claim underwriting product. What that means is that you fill out the form, in most cases don’t get checked by a nurse, and then if something happens do they start the underwriting. No thanks. I want to know going into a life insurance policy where I stand, not after my spouse has passed away. I know life insurance in itself can be a nightmare to go through a claim so why have the added stress?

Second, the mortgage balance decreases while your payments remain the same. Tell me one other investment where your balance decreases and your payments remain the same. I’m not talking about the stock market because we all know that can go up…

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