Friday, April 26, 2013

You are a good Client - Best Rates on Mortgage Renewal

The Mortgage is up for renewal. You expect a competitive quote!

The average mortgage is Toronto is just under 300K.  Source.  While watching current rates offered to new borrowers we received our Offer to Renew.

I was shocked to see that as a new Buyer my Trusted Mortgage Advisor could obtain 3.0%  (a few basis points below) fixed for 5 years. Why was I being offered 4.4% for the same term?
  • Had I missed any payments?
  • Had I been problematic?
  • Was it in collections?
  • Values dropping and they want out?
  • Advance to Value declining?
Here are the hard numbers...

The lending institution is gambling that you will not spend a thousand to $1,500 to refinance and move your business elsewhere. We contacted another lender who waived their appraisal and application fees, needed only redocumented legals and a registration on title (lawyer fee). Yes we paid a discharge Fee and Leave Lender Fee; and extra $500.00

They gave us the 3.0% refinance package for 5 years saving me a HARD DOLLAR amount of $4,200 in the first year and the same in each following four years.  An actual savings of $20,000 that can go to principal reduction or other debt repayment instead of bank profits.  Do you have other bills you could have paid?

When we contacted the existing Mortgage Company they said; "Why are you moving your mortgage?"  We responded "We received a better rate." Their mortgage rep then said  "We can match that to keep your business!   Me:  "Why didn't you give us that in the first place?"    Silence.....

We had already signed the commitment with the second Lender.  Legals had been obtained and quoted. I don't have a [money] large enough accounts like UNIONS to threaten the bank with a withdrawal.

Have you had a similar experience?   

Can I recommend a Trusted Mortgage Advisor?  It may even be with the same bank! 

There is The better way to buy or sell a house in #Toronto or #Etobicoke  It's all about being part of the conversation....  All the detached houses you can handle.

Monday, April 22, 2013

2013 Immigrant Buyers Program

So many changes recently to the CMHC Home Ownership programs I asked for a Summary of the Current programs and what requirements need to be met;

Product : New Immigrant policy changes·         All applicants are required to simply confirm 12 months of principal, interest, and (property) tax (PIT) payments in savings in Canada in addition to their down payment·         Maximum aggregate loan amount has increased for select areas in GVA to $1,250,000 and remains at $1,000,000 for properties located in the rest of Canada. Maximum of 2 properties applies.
·         Where limited or no credit bureau exists, credit worthiness can be established by one of the following:
o    Satisfactory letter of reference from a bank in the country of origin; or
o    Confirmation of rent payments supported by 6 months of bank statements from primary account; or
o    Documented 6 months of paid utility bill payments confirming no late payments (e.g. utility bills, cable, telephone etc.)
From our Vice President Mark Clearihue …
·         TD is #1 in market share since 2010 (see chart)
·         Total portfolio exceeds $218 Billion…LARGEST in Canada
·         2012 was a tough year – tighter regulations introduced by Dept of Finance for all banks
·         2013 will continue to see an extremely competitive market place in slower real estate market
·         Low interest rates, strong rental markets, and immigration still provide a foundation for reasonable markets. Spring sales season should be solid, but more modest

 Td economics·         The Bank of Canada left the overnight rate unchanged and downgraded its forecast for Canadian economic growth in 2013 to 1.5% (from 2.0% previously).
·         The global economic outlook remained more or less unchanged as growth has evolved “broadly as anticipated”. There was a slight upgrade to growth in Japan due to the recent announcement of new policy stimulus. Meanwhile, the Bank expected fiscal drag in the US to weigh more on growth in 2013 as opposed to being evenly spread between this year and next. Overall, the U.S. economy is expected to grow by 2%.

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708

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David Pylyp