Mortgage Specialist - Ask me any question

[Kristi Hyson]

I am a sponsor on Calgary Puck and work closely with Travis Munroe Calgary Puck sponsored Realtor.

Current Mortgage Rates (effective June 14, 2012)

1 Year Closed 2.89%
3 Year Closed 3.19%
5 Year Closed 3.19% **call for details on promotional 5 year rate

2 year closed @ 2.69% (closing must be by September 30th, 2012)

Special Mortgage Programs:

New to Canada, wondering if you qualify for a mortgage? Scotiabank has a mortgage program for temporary and permanent residents in Canada. Follow the link below to check out Scotiabank's StartRight Program for Newcomers.

http://www.scotiabank.com/startright/landing-page.html

Are you self-employed? Scotiabank offers home financing with as little as 10% down. Follow the link below.

http://www.scotiabank.com/ca/en/0,,3208,00.html

Useful Links:

Mortgage Tools

http://www.scotiabank.com/ca/en/0,,32,00.html

Mortgage Centre

http://www.scotiabank.com/ca/en/0,,25,00.html

Canada Mortgage Housing Corporation (CMHC)

http://www.cmhc-schl.gc.ca/

Information about me:

http://mdm.scotiabank.com/khyson

Feel free to ask me any questions regarding mortgages and qualifying criteria. If your question is private or very specific you can send me a confidential email or private message.

[Travis Munroe]

Good to see you get set up Kristi. I am sure you will benefit the CP community!

[albertGQ]

There is a mortgage broker on CP that raves about the advantages of going with a broker over a bank's mortgage specialists.

Maybe you can provide a rebuttal to the CP community as to the advantages of going with a bank's mortgage specialist over a broker who has access to dozens of different lenders.

Thanks!

[ranchlandsselling]

Originally Posted by albertGQ

There is a mortgage broker on CP that raves about the advantages of going with a broker over a bank's mortgage specialists.

Maybe you can provide a rebuttal to the CP community as to the advantages of going with a bank's mortgage specialist over a broker who has access to dozens of different lenders.

Thanks!

Edit: Welcome Kristi! (thanks for reminding me Trout)

Yeah - this thread might be asking for trouble.

My thoughts:

Against banks: the banks will never offer you their best rate off the bat whereas a broker will because they're competing against said banks.

Against broker: some brokers will have a bias to switch clients at renewal or out of their current lender mid term for another lender as then they get a commission. Granted the rates are usually lower so there's double incentive.

A good broker will most of the time get you a rate better than what the bank offers you off the bat.

The biggest thing is renewal. I just dealt with a client whose bank sent the renewal letter out at 4.35%. Pretty much stated "4.35% is our best rate, x.xx% below our posted rate". Client came to me and I have found them at least 3.29%. No legal, no appraisal.

Some banks are better/worse than others. Right now in my opinion of the big banks Scotia is the best lender. Compared to RBC, BMO, TD etc. and that's because they want to be so they're pushing hard with decent rates compared to the other 3 (less that 2.99% sale that ended awhile ago).

Now the banks don't do this because they're bad people. They just do it because most people say "okay" and the bank gets a tidy little profit. The brokers don't always help you because they're all nice people and the bank people aren't. The brokers just want to get paid and often that works in the best interest of the client.

The banks will tout that they're there to take care of you throughout the whole process and during your mortgage. A good broker will do the same. The banks will offer you additional products, accounts and investment advising services. They'd do that for anyone, has nothing to do with your mortgage. Additionally (and this is just from my experience, I'm sure there's some good sales people out there) the average bank employee offering investment advise is completely out to lunch. They're just peddling mutual funds or GIC's that their bank sells. But that's their job and what they're paid for. Nothing wrong with it, just isn't all it's cracked up to be.

Disclaimer: I work both sides of these types of transactions - so I think I'm generally unbiased.

I've sent quite a few borrowers back to their bank for an early renewal to blend their rate down when I could just have easily pushed them to a new lender, for a slightly lower rate that would have been a wash or slightly worse after their out of pocket switch expense. Not all brokers would do that. Additionally I've shown clients the difference between a smaller mortgage and shown them the paydown on different amortizations and loan amounts vs. the most cash and longest amortization that I've seen both brokers and bankers do, thus giving the banker the biggest loan/credit and the broker the biggest commission. Just because at 30 year amortization and today's current rates you can just squeeze by, doesn't mean you should. That said - for some people they should/can.

My advice would be check with your bank and check with a broker. But once you've put the broker to work don't keep running back and forth until you've squeezed the last bit of rate out of the bank until they're the same and go with the bank. You're just wasting someones time who isn't getting paid for doing the work. Make them do the work - but reward them in the end if they do a good job.

[albertGQ]

^^^
Yeah, I can't really think of many advantages of going with a bank's mortgage specialist over a broker but I thought I would give Kristi a chance to let us know if there is. Maybe there is something I've never thought of before.

[troutman]

Welcome Kristi!

[Kristi Hyson]

Both mortgage specialists who work exclusively for a bank and brokers serve a valuable purpose in the mortgage industry. Brokers have more options available to customers who have credit issues, other application challenges or for customers who prefer to have access to a variety of lenders.

The advantage of dealing with a mortgage specialist is that they have access to the full suite of products and resources available through the financial institution. The products can be used to restructure debt to increase monthly cash flow to make having a mortgage more affordable, as well; the products can also be used to restructure debt to qualify if the debt servicing is too high.

As a mobile mortgage specialist I work the same hours as brokers and realtors to meet with customers on their time. I am in direct competition with brokers and the rates I offer are competitive to what brokers can offer. I feel it is up to the individual making the decision on whether a mortgage specialist is the right option or a broker. If a customer is simply rate shopping then a broker maybe their best option. If a customer wants the service and availability of products tailored to meet their needs then going with a mobile mortgage specialist who works for a bank would be the best option.

[onetwo_threefour]

Welcome, more perspectives and education about the industry is always a good thing IMO. This is the great thing about Travis' sub-forum, the industry professionals posting have insight and experience and it's a non-threatening atmosphere for questions.

[genesis0403]

Hi I was wondering if you can give me some info for new home buyers or recent permanent resident status home buyers.

[Bagor]

Originally Posted by ranchlandsselling

Against banks: the banks will never offer you their best rate off the bat whereas a broker will because they're competing against said banks.

Now the banks don't do this because they're bad people. They just do it because most people say "okay" and the bank gets a tidy little profit. The brokers don't always help you because they're all nice people and the bank people aren't. The brokers just want to get paid and often that works in the best interest of the client.

Additionally (and this is just from my experience, I'm sure there's some good sales people out there) the average bank employee offering investment advise is completely out to lunch. They're just peddling mutual funds or GIC's that their bank sells.

Good post and thank you. Would be interesting if the mortgage specialist could respond to the snipped parts. My thoughts ...

Good? Bad? I find them blatantly dishonest when they'll sit there and tell you that what they're offering you is the absolute best rate available and the best that they can do only to turn around with an improved rate 20 minutes later after being informed that there are better figures elsewhere. No excuse ... just blatant dishonesty. I would be curious why they can't just "offer the best rate off the bat" instead of attempting to make me poorer than I think. So yes, when someone sits there and tries to sell me a rate telling me that it is the best available when they are aware that it isn't then IMO they are a bad person.

Discuss.

[Slava]

Originally Posted by Bagor

Good post and thank you. Would be interesting if the mortgage specialist could respond to the snipped parts. My thoughts ...

Good? Bad? I find them blatantly dishonest when they'll sit there and tell you that what they're offering you is the absolute best rate available and the best that they can do only to turn around with an improved rate 20 minutes later after being informed that there are better figures elsewhere. No excuse ... just blatant dishonesty. I would be curious why they can't just "offer the best rate off the bat" instead of attempting to make me poorer than I think. So yes, when someone sits there and tries to sell me a rate telling me that it is the best available when they are aware that it isn't then IMO they are a bad person.

Discuss.

On the one snipped part about the investment advice I'm inclined to agree. It's the way the system is set up.

[Phanuthier]

Q for you, bit of an odd question... I'm looking to buy a home in the USA (California) but in some cases, I'm 20k-50k short of my pre-approved loan. My parents said they can help me, out, do you offer service where lets say I buy a $620k house and get a $420k loan, if I get a 400k loan in the USA, can my parents gets a 2nd mortgage loan from Canada of $20k ontop to help me out?

[MarchHare]

My mortgage is up for renewal later this year. My wife and I recently spoke to our mortgage broker from when we bought our home five years ago and requested she look into getting us the best possible rate for renewal. Our current mortgage happens to be with our bank where we have accounts for chequing, savings, RRSP, TFSA, credit cards, etc.; should we also go to the bank and see what they can do for us?

If the bank comes back with a better rate than the broker found for us, is it considered a dick move to have had the broker waste her time searching for us if we don't go with her in the end, or is that a common practice?

[ranchlandsselling]

Originally Posted by Phanuthier

Q for you, bit of an odd question... I'm looking to buy a home in the USA (California) but in some cases, I'm 20k-50k short of my pre-approved loan. My parents said they can help me, out, do you offer service where lets say I buy a $620k house and get a $420k loan, if I get a 400k loan in the USA, can my parents gets a 2nd mortgage loan from Canada of $20k ontop to help me out?

Do your parents want a second mortgage on their house to help you out or your new house you're looking at purchasing?

Tough to think about when the above question is outstanding.

Either way -My first guess would be to suggest the above option I questioned. If your parents have equity in their Canadian home and want to help you buy a house in the states I'd suggest they take the money out of their Canadian house. The dollar is at par and your parents likely earn CAN money. That way if they're paying off a portion of your house (ie having a mortgage on US house or Canadian house) at least if they do it by way of Canadian mortgage there's no foreign exchange exposure. They know what their payments are going to be for whatever term they take. Additionally if something bad happens to them, you're safe and if something bad happens to you they're safe.

[ranchlandsselling]

Originally Posted by MarchHare

My mortgage is up for renewal later this year. My wife and I recently spoke to our mortgage broker from when we bought our home five years ago and requested she look into getting us the best possible rate for renewal. Our current mortgage happens to be with our bank where we have accounts for chequing, savings, RRSP, TFSA, credit cards, etc.; should we also go to the bank and see what they can do for us?

If the bank comes back with a better rate than the broker found for us, is it considered a dick move to have had the broker waste her time searching for us if we don't go with her in the end, or is that a common practice?

Talk to your broker.

See what the bank offers you. Tell your broker that's what they offered you and see who comes back with the best rate. The broker should understand. That said, if the bank comes back with one rate your broker beats it, then your bank matches it - maybe reward your broker, who was honest with you from the get go. Often mortgages (priced at their lowest to win customers) are loss items. Or make banks even money. They make the money of all your other accounts. If you take your mortgage elsewhere the bank isn't going to punish your other products that they make a lot of money off of.

[Phanuthier]

Originally Posted by ranchlandsselling

Do your parents want a second mortgage on their house to help you out or your new house you're looking at purchasing?

Tough to think about when the above question is outstanding.

Either way -My first guess would be to suggest the above option I questioned. If your parents have equity in their Canadian home and want to help you buy a house in the states I'd suggest they take the money out of their Canadian house. The dollar is at par and your parents likely earn CAN money. That way if they're paying off a portion of your house (ie having a mortgage on US house or Canadian house) at least if they do it by way of Canadian mortgage there's no foreign exchange exposure. They know what their payments are going to be for whatever term they take. Additionally if something bad happens to them, you're safe and if something bad happens to you they're safe.

Oh interesting thought... though it is a loan, not a gift, so the deal I have with my parents is I'd pay them back on monthly installments (i.e. $500 a month over 6 years) so the dollar doesn't help me in the short term. My parents do own (mortgage paid off).... I don't know if they've ever explored that.

Are interest rates good right now relative to over the last 10 years? I know in Cali, its at a all time low.

[Kristi Hyson]

Originally Posted by genesis0403

Hi I was wondering if you can give me some info for new home buyers or recent permanent resident status home buyers.

Thank you for the question. If you are a permanent or temporary resident Scotiabank has a program that is called the Scotiabank Startright Program for Newcomers, this product is designed to help newcomers to Canada obtain a mortgage.
The requirements are:
-5% down payment from own resources
-minimum 3 months employment
-if credit is not established a requirement would be a letter from your landlord confirming rent was paid on time, copy of utility bill & payments confirming payment on time (other methods of proving payments can be accepted).

This program allows a newcomer to obtain a mortgage without having established credit.

Below is a link to the program, please let me know if you have additional questions.

http://www.scotiabank.com/startright/landing-page.html

[Kristi Hyson]

Originally Posted by ranchlandsselling

Do your parents want a second mortgage on their house to help you out or your new house you're looking at purchasing?

Tough to think about when the above question is outstanding.

Either way -My first guess would be to suggest the above option I questioned. If your parents have equity in their Canadian home and want to help you buy a house in the states I'd suggest they take the money out of their Canadian house. The dollar is at par and your parents likely earn CAN money. That way if they're paying off a portion of your house (ie having a mortgage on US house or Canadian house) at least if they do it by way of Canadian mortgage there's no foreign exchange exposure. They know what their payments are going to be for whatever term they take. Additionally if something bad happens to them, you're safe and if something bad happens to you they're safe.

Thank you for your question, due to legislation that banks are regulated by a mortgage can not be issued in Canada for a house in the US. If your parents have the available equity in their residence in Canada to help facilitate the loan that would be a good option. If not, you would need to talk with a broker about private lending as the home you are using as security is outside of Canada and the law is if the loan goes into default a Canadian lender can not collect on their security outside of Canada. Hope this helps, if you have more questions please let me know.

[Kristi Hyson]

Originally Posted by ranchlandsselling

Talk to your broker.

See what the bank offers you. Tell your broker that's what they offered you and see who comes back with the best rate. The broker should understand. That said, if the bank comes back with one rate your broker beats it, then your bank matches it - maybe reward your broker, who was honest with you from the get go. Often mortgages (priced at their lowest to win customers) are loss items. Or make banks even money. They make the money of all your other accounts. If you take your mortgage elsewhere the bank isn't going to punish your other products that they make a lot of money off of.

I would recommend going to your bank to discuss rates, most financial institutions will match the rate the broker is offering, especially when you are a full service customer. If you transfer your mortgage from your current financial institution you will be subject to another application and the condition requirements to obtain a new mortgage. If your mortgage is insured you can do a straight switch to another institution for the exact dollar amount, amortization and your premiums can be ported. If it is a brand new mortgage and not a switch you will be paying premiums again if your loan to value is greater than 80%.

[Kristi Hyson]

Originally Posted by MarchHare

My mortgage is up for renewal later this year. My wife and I recently spoke to our mortgage broker from when we bought our home five years ago and requested she look into getting us the best possible rate for renewal. Our current mortgage happens to be with our bank where we have accounts for chequing, savings, RRSP, TFSA, credit cards, etc.; should we also go to the bank and see what they can do for us?

If the bank comes back with a better rate than the broker found for us, is it considered a dick move to have had the broker waste her time searching for us if we don't go with her in the end, or is that a common practice?

I would recommend going to your bank to discuss rates, most financial institutions will match the rate the broker is offering, especially when you are a full service customer. If you transfer your mortgage from your current financial institution you will be subject to another application and the condition requirements to obtain a new mortgage. If your mortgage is insured you can do a straight switch to another institution for the exact dollar amount, amortization and your premiums can be ported. If it is a brand new mortgage and not a switch you will be paying premiums again if your loan to value is greater than 80%.