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  http://bit.ly//CallDavid  It's all about being part of the conversation....  All the detached houses you can handle.   http://homeswesttoronto.tumblr.com/mobile

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How to avoid owning Two Homes

When your sale closes after your purchase

• to get the best price for your home often you have to compromise and choose dates that may not match
• this means you need to leverage the equity in your home, for the required time between the purchase and sale to fund your down payment into your new home

Example of Bridge Financing

Sold $ 270,000 Purchase $ 450,000

less deposit w/offer $ 15,000

Real estate commission New Mortgage $ 335,000

13% HST Real estate commission

Mortgage balance legal fees on sale and purchase

Equity $ 100,000 Funds to close $ 100,000

SALE closes May 31 PURCHASE closes April 28

BRIDGE FINANCE of $100,000 for 33 days for $750 estimated fee

How can a secured credit line save me money?

• in our previous example some lenders will allow you to register up to 80% of the purchase price.. Let’s say $360,000
• known as a “Collateral Mortgage”, this additional $25,000 could be used as a secured credit line towards your down payment
• Reduces Bridge loan to $75,000 & cost down to approximately $540
• Saving you $210
• Credit line paid to ZERO from the proceeds of the sale in 33 days
• The credit line is available when needed always at a preferred rate
• This allows greater flexibility and reduces interest costs for you

What if you sell before you buy?

• There are still some situations where this happens. Owner is motivated and grabs your offer!
• This means you will have to pay out your mortgage and any penalty, as there will be a shortfall .. until your move in date.
• Most lenders will reimburse the penalty, if you have a move in date within 90 days of your sale & come back with the same terms; conditions to the mortgage

What if you want to keep your property and rent it ... instead?

• If you have considerable equity, you may want to rent out your property as an investment
• Your home can be re-financed to where the rent will carry the mortgage payment, condominium fees and property taxes.
• You could then buy, your new home with less down payment.
• You can always sell your investment at a later date to maximize your sale price.
• Having a plan for your mortgage is key

We give you a Firm Approval

We are able to approve the bridge financing as well as your mortgage at the same time.

This combined approval is unique in Toronto

Peace of Mind & no surprises for you

Things can change quickly between the time you buy, until you move in to your new home.

• … Job change, need credit for new appliances
• … Many lenders pull a second credit bureau, verify your employment or even leave the appraisal till a week before closing date

Ready to get Started?

Contact Lindsay Doke RBC Financial Trusted Mortgage Advisor 416 464 6423

How Young could you be to Buy a House?

Most times it seems the task of finding your Dream Home is a combination of the right circumstances in your life that make it possible for you to step into the House Buying Process.

With the mortgage terms and affordability as the biggest impediment to home buying a number of down payment programs can be created just for you thru the RBC Preferred Client Program.

Amortizations have been shortened from the 40 year plan down to a 35 year amortization maximum. I would hope that with prepayment options that many mortgages and an acceleration of amortization each year at the anniversary of the mortgage you could shorten the term by at least half. Contact me for program details.

Lindsay Doke, Trusted Mortgage Advisor, RBC Mortgages has been a strong proponent of the blended mortgage that takes half of the balance into the variable rate portfolio and the remaining half into the fixed interest rate portfolio.

By using this approach; you can reduce the interest costs greatly without gambling on interest rate fluctuations. With today's interest rates in simple terms, you could be borrowing at 4%.

So maybe the downpayment is your impediment; We can deal with that too! Lindsay has programs for HomeLine to advance against a property, additional credit lines to fund your downpayment, and cash back programs that will leave you money for land transfer taxes and related fees and expenses. Deferred cost programs are also available from Title Insurance Companies to assist your entry in Home buying.

There has been a concentrated effort to look at credit scores and the related perception of what is bad credit or poor credit and what can be fixed to make you eligible for a mortgage. Some of these programs may take 3-6 months to impliment, or as long as a year. New to the country and need to establish credit?

So first, we need to establish how much house you can afford. If you are paying rent of $ 1500 to $ 1700 per month, you may be surprised to find a $ 300K property carries for the same monthly amount. This Pre Qualification is vital to be completed in its entirety and not as a calculation at home. There is nothing more disappointing than being verbally approved at a Lenders office to find that their approval has many more conditions that you are unable to fulfil.

We will shortly have access yet again, to the entire Toronto Real Estate database of listings thru the Listing Portal at the Elegant Homes websites. This is exciting because all the listings available can be search without needless delay or filtering (like Realtor.ca) Some real estate boards have actually opted out of the Realtor.ca database. Will Toronto follow suit?

I invite your inquiries.