Any engineers or medical professionals (ask for professions included) interested in a HELOC? I have one lender that offers a preferred product for these professions, which is second to none in the industry.
I had meant to share this a while back, but am just getting around to it now. This is our awards nomination video for the 2016 Canadian Mortgage Awards (http://www.canadianmortgageawards.co...2016-finalists), where we won the award for "Best Newcomer - Mortgage Broker Firm"
(I'm the guy eating potato chips)
And because the video editors didn't quite cut the music in at the right time (or at the right volume), I feel as though I need to post the video we were mimicking: Cuba Gooding's 1997 Oscar acceptance speech for Jerry Maguire. I think my colleague did pretty well! Haha.
Thanks again for your support CP, as you have been an instrumental part of growing my business.
Met with our Manulife rep this morning and learned about a very interesting product. They actually allow their Manulife One product to be used on commercial properties! The M1 is a line of credit, so that would allow you to have interest-only payments, which are absolutely ideal for investment properties.
I'm one of few brokers in Calgary that has access to Manulife in their initial launch into the broker channel, so PM me for details!
Some very interesting changes could be on the horizon passed down from OSFI and CMHC, as they are proposing that lenders hold back more capital in their reserves than current requirements to cover potential defaults. This could lead to the following potential impacts, as early as November 1st:
- Mortgages tougher to qualify for
- Higher interest rates
- Not being able to qualify for as much
"Chinese Media Warns Canada's Housing Crash Will Put U.S. to Shame"
Quote:
B.C. Government Saved This For The Election
Most interesting, Chinese media outlets are questioning the timing of all of this. After all, Vancouver's real estate has been growing at an unsustainable rate for years (more like decades), while incomes have stagnated. An author from Leju wrote that the Asian investment conversation is being brought on as platforms for the Vancouver municipal and B.C. provincial elections.
Leju also explained that other cities like Toronto, that have substantially more international buyers, are not having discussions about "vacancy taxes" and "restrictions." They further allege that the government in Vancouver and B.C. are looking to distract constituents with "other factors" to explain why income in the province is one of the lowest in Canada.
Now of course this is the media, and it needs to be taken with a grain of salt, but they do raise some interesting points.
Major changes in mortgage qualifying! (Posted in OT forum as well)
What a crazy day this has turned out to be. First off, my brokerage (Invis-Mortgage Intelligence) merges with Mortgage Alliance to become the largest full-service brokerage in Canada, and then this news:
I'm going to stick to mainly the points more related to CP, as the other portion is to do with foreign ownership.
- All insured mortgages will now need to be qualified at the Bank of Canada benchmark rate, which is currently 4.64%. Previously, any fixed term 5 years or longer would be qualified at your actual contract rate, and only variable or fixed terms less than 5 years needed to use the benchmark rate. This will have major impacts on what people can qualify for.
- Bulk-insured/portfolio insured mortgages (>20%) down will require the same as the above. A lot of lenders do bulk-insure their mortgages even at >20% down, so this too will have a significant impact.
- Max amortization on any insured mortgages will be 25 years, even if >20% down.
This goes into effect October 17th, so if you're needing to utilize the current regulations, you will want to get your application in quickly.
Booking meetings (pro-bono of course) for anyone wanting to do an all-encompassing debt review. I will show you some strategies to help you reach your goals, whether it's to get debt free years quicker, or if it's to boost your investment portfolio.
I'm also happy to do presentations on the All in One account through National Bank, or the Manulife One. These are very powerful solutions in financial plans if utilized properly. Great for:
- Accelerating debt payment
- Debt consolidation
- Cash flow enhancement
- "Become your own banker''
Anyone holding a HELOC/variable rate with TD Bank? They just raised their prime lending rate from 2.70% to 2.85% today. I have no info as to why, and from what I have seen, they are the only ones to do so.
Interesting - never knew home buying 'down under' was like this!
Quote:
"But Australia's preferred method of selling property — where buyers stand out front and openly bid through an auction — couldn't be more different than the system here."
I think that would be pretty exciting to watch, let alone participate in! The transparency of competing offers would definitely be a positive.
With bond yields trending upwards, I have already received four emails from lenders announcing rate increases at midnight. If you were just about to pull the trigger on something (renewal/refinance etc.), you may want to do so now!
PM me for questions and inquiries. Securing a rate can be a very quick process.
Most have heard about the rate increases from lenders in the last 48 hours. If you have, please read below for more info. If you haven't, please read below for more info.
It’s important for anyone coming up for renewal, in need of a refinance, or looking to purchase, to come talk to us and do a quick review. Depending on the lender, we’re seeing an increase on fixed rates anywhere from 10-20 basis points. So for example, what was a 2.49% is now a 2.59 or 2.69%. Depending on the size of the mortgage, this can mean an increase of $20-100/month, so it’s certainly not insignificant. We have even seen a couple of the big banks raise their prime lending rate from 2.70% to 2.85%, meaning any variable mortgages or HELOCs will increase by 0.15% as well. *Important to note that this won’t impact what people can qualify for (on high ratio deals), but it will impact their monthly payments*
It is anticipated that rates may continue to increase over the next few months and well into next year, so if today’s rates can be taken advantage of, it’s certainly encouraged. Bond yields (in which fixed rates follow) have been trending upwards since the US election. Please note that we can hold our best rates for up to 120 days. It’s also important to note that even after these 10-20bps increases, rates are still at near all-time lows, so it’s certainly not a time to push the panic button, but it is something to be aware of. Because we have access to close to 50 different lending institutions, there are some that have yet to announce a rate increase, but those will most likely be coming soon.
We have had some clients in variable mortgages ask if they should be considering locking into a fixed mortgage right away. While we of course don’t have a crystal ball, we don’t think it’s time to do so just yet, as it’s still quite possible that the Bank of Canada could in fact lower the overnight rate when they meet in December, which in turn would most likely lower lender’s prime rates once again. Also, most variable rate mortgages have a minimum spread of 0.30%, which means they are still lower than most 5-year fixed rates today.
If you'd like to do a quick mortgage review to discuss what your options are, we'd be happy to do so. We're here to help educate you so you can make the best decision FOR YOU. Inbox us to schedule your appointment.
National Bank announcing today they are doing a complete restructure of their business through the broker channel. Pretty significant news, lots of info still to come.
National Bank is having a 3rd party process their mortgages starting in the New Year. They will essentially be funding mortgages under the existing brand "Merix".
What does this mean?
- The All in One account will be discontinued. If anyone is looking to take advantage of this product, applications will need to be in before Friday, December 9th. All conditions need to be met by December 16th, and it will need to fund by January 20th, 2017.
- If you are an Engineer or a Medical Professional, this will be your last chance to take advantage of the HELOC/AIO at preferred rates that you cannot find anywhere else. (Ask for details)
- Note: Manulife still offers a product mirroring the AIO, but no Medical Professionals/Engineer's program.
- Merix will be able to expand their uninsured products now that they're backed by National Bank.
- Equity/Net worth program will also be discontinued. (This product allows individuals to qualify with very little income based on their net worth).
Please PM or reply with any questions or inquiries.
Do you own a rental property? Be prepared for higher rates when renewing or switching lenders.
There are changes across the board in the mortgage-world, and one of the biggest impacts is on rental properties in light of the recent Government-imposed changes.
Whether you have a fixed or variable rate on your rental, you can expect an average of 25bps rate premium. - Ex: 2.69% primary residence vs 2.94% rental
- Ex: Prime - 0.35% primary residence vs. prime - 0.10% rental (2.35 vs 2.60 currently)
There are still some great cash-flow strategies you can incorporate on your rental properties so you can allocate your money to pay down your bad debt (primary residence) before your good debt (rental property).
Feel free to contact me if you'd like a quick consult to see if there's anything that can be done to improve your situation.
EDIT: Excludes 2-4 unit rentals, as you can still access best rates with those.
Last edited by MillerTime GFG; 12-08-2016 at 11:22 AM.
Just wanted to give a big shout out to MillerTimeGFG AKA Greg Miller of MySmartCap for all his hard work in helping me secure my mortgage approval.
Despite my panicked phone calls, texts and emails, Greg calmly answered all of my questions, advised the best and worst case scenarios of the things I was interested in, and worked closely with the big bank lenders out east to ensure I got what I needed in an extremely short window.
In the end, it was Greg's ability to secure a better rate more quickly, and even referred a great lawyer for closing, that solidified the deal.
Should you have any mortgage related needs, definitely call Greg and see how he can help you.
Thank you, Greg!
__________________ https://www.reddit.com/r/CalgaryFlames/
I’m always amazed these sportscasters and announcers can call the game with McDavid’s **** in their mouths all the time.
Last edited by ricosuave; 12-16-2016 at 06:38 PM.
The Following User Says Thank You to ricosuave For This Useful Post:
Just wanted to give a warm thanks to the CP community for the support in 2016! In what was a trying year for the industry, for economic and regulatory reasons, I was able to increase my business by 26%, when the majority of my peers were going the opposite direction. Of course being only ~4 years into being a broker, I'm still in growth mode, but I'm definitely happy with 2016, and really looking forward to what 2017 will hold.
We (SmartCap) were also recipients of a national award at the Canadian Mortgage Awards (the other CMAs ), which is something I'll be keeping in my email signature for probably 5 years before it becomes stale, haha. See a few posts up for details on that award. Very honoured to say the least.
As always, feel free to reach out with any questions or inquiries you may have! Thanks again.
A ton of changes in the industry lately that has made my job a lot more difficult, but has also made me realize it is more important than ever to have a broker on your side.
Guideline changes across the board, as well as tighter regulations. Different rates for different products.
If you're in need of mortgage financing in the near future, or even just curious, I'm happy to book in a free consult with any CP member. Send me a PM/email to set something up. Also feel free to fire any questions away in here.
I wanted to expand on one of my previous posts where I stated you can expect higher rates for rental properties. This is still the case pretty much across the board for lending institutions, so it's important to speak to a broker, as we have access to approximately 50 different lenders. That gives us access to a massive amount of different rates and products suited to your needs. While rates are important, it shouldn't be your sole focus.
Here's an example of a great strategy I recently incorporated for clients of mine. It was a referral from a financial advisor I work with, and our focus was to boost/enhance their cash flow: *numbers changed slightly for privacy.
- Pre-restructuring:
Primary residence:
- Current value: $450,000
- Current mortgage: RBC - $309,000 - 5 year variable at 2.30%, 2.5 years until renewal
- $1,260 monthly payment
Rental property (in BC):
- Current value: $700,000
- Current mortgage: $492,000 - BMO - at renewal date, coming off a 5 year fixed at 3.29%
- Payment: $2,040 monthly
Other:
- No debt other than a vehicle loan with a $780 monthly payment. Balance: $32,000.
- Rental income: $2,000/month
Total monthly liabilities:
- $4,080
Needs:
- Top-up in life insurance, and wanted to boost investments as well
- Post-restructuring:
Primary residence:
- Combination Mortgage (HELOC/Variable combo)
- Variable sub-account portion: $200,000 at prime - 0.50% (2.20%)
- Payment: $1,304
- HELOC portion: $260,000 borrowing limit
- HELOC balance: $71,000, payment: $189 (interest-only)
- Note this is an All in One mortgage, meaning the HELOC portion is also a fully functioning chequing account. Main purpose is to get your income working for you by being deposited into your account and immediately lowering your principal amount owing, rather than sitting in a regular chequing account doing nothing for you.
Rental property:
- Refinance up to 80% LTV (loan-to-value). Total amount: $560,000. Accessed $68,000 in equity.
- Consolidated vehicle loan for cash-flow purposes. Remaining $36,000 in equity used to pay down the bad debt (primary residence mortgage). Rental properties are considered as good debt because the interest is tax-deductible.
- Mortgage structure:
- 65% LTV HELOC: $455,000
- Payment: $1,213 monthly
- 15% 2-year fixed mortgage, amortized over 30 years: $105,000
- Payment: $402 monthly
Total liabilities:
- $3,108
Cash flow freed up after restructure:
- $972
- Cash flow reallocated to: principal reduction, investments/insurance
Key strategies/value-adds:
- Mortgages structured so paying down the bad debt in their primary residence is a priority over paying down their good debt in their rental. Using the proceeds of rental income to pay down their primary residence mortgage at an expedited rate
- Increasing mortgage amount on rental property also increases the amount of interest that is tax deductible. Paying the least amount of principal every year on the rental means that amount will remain constant over the years, rather than doing a fully amortized mortgage
- Used proceeds of refinance on rental property to reduce principal amount on primary residence
- Getting income working for them by having it deposited directly into the All in One account and immediately reducing the principal amount while the money is sitting in there.
As you can see, there's a fair bit that goes into this type of restructuring. We do take a different approach to mortgages with SmartCap, as our slogan is "Accelerating Your Financial Plan". We incorporate a lot of strategy into what we do, and take a financial planning approach to mortgages, which is why we work almost exclusively through the financial planners channel.
If you'd like to learn more, or see if this strategy (or another) is right for you, I'd be happy to discuss your own situation. There are different strategies that can be incorporated no matter what stage of the 'cash flow life cycle' you're in. Email/PM for more details. Questions are welcome in this thread as well.
Cheers!
TL;DR:
- Freed up almost $1,000/month in cash flow by restructuring the mortgages for the rental and primary residence.
- Increased tax deductible amount on rental property
- Employment and rental income redirected to primary residence (bad debt) as opposed to paying down good debt (rental)
Last edited by MillerTime GFG; 01-31-2017 at 03:05 PM.
), which is something I'll be keeping in my email signature for probably 5 years before it becomes stale, haha. See a few posts up for details on that award. Very honoured to say the least.
