Why brokers are better than banks

Recently, my wife was reminiscing about our first house. We had been married for about a year and decided it was time to buy a home. This was in 1986 but she has vivid memories of the experience. What she remembered about the home buying process was going to the bank to arrange the mortgage. She said that she felt like a criminal. The way they asked questions and would not assure her. The thing I remember was the computer screen. If a question came up and you tried to look at the bank employee's computer screen they would turn it away from you. Why? this is my information, what's the big secret? Years later when we had equity in our home, we applied for a home equity line of credit (HELOC) Although we had had a mortgage for over 20 years , and my wife had banked for longer with this bank, we were once again encouraged to apply but then treated like criminals. Were we worthy enough to get a line of credit? After making faces and without saying anything about what she was doing, the bank employee announced that we had qualified for the line of credit. Little did I know at the time, the rate she quoted me of 1 1/2% over prime, was high. If we were such good clients why were we being hosed? It was only after I did some homework that i was about to find out that we were paying more than if we had our line of credit with another financial institution. I called and asked for the lower rate and was told that I did not qualify because I did not have enough business with the bank. This is tied selling or relationship pricing and is illegal in Canada under section 459.1 of the Bank Act. As you can see, getting a mortgage and a line of credit took a lot of work, research and I had to put up with being treated like a kid. My revenge has been to become a mortgage broker. When I fill out an application with a client I tell them exactly what questions I will be asking and why. I then allow them to view the screen with me. Some people are so surprised. I 'm sure that they have had similar experiences at the bank. I also shop over 50 lenders to find the best rate for a product. I will offer the client a choice and explain the pros and cons of each product and let them make the decision. Most consumers ahve never had this experience before. They are used to a bank employee telling them what they need and sign here. Finally, financial documents can be difficult to read. I go over the documents line by line to help people understand what they are signing. Does this take a long time? Yes, but my clients are empowered and know what they are making a decision on. This is how I get my revenge on the banks for years of bad service. If you are tired of being treated like this contact me and I will assist you to gain control of your finances. My website

Overbidding on a house can backfire for the buyer.

We've all seen this before. A buyer is in a competitive situation with multiple bids on a house they overbid to get the property. The problem arrises when the offer to purchase is presented to the lender and the mortgage insurer, either CMHC, Genworth or Canada Guaranty. They review past home sales for the area and say that the house is worth ,say, $40,000 less. This means the buyer has to come up with their 5% down payment AND $40,000 to cover the shortfall. If the deal falls through, the buyer could lose their deposit which in many cases is $5000. This is a bitter lesson to learn. Here's an article on the subject. If you want to protect yourself, contact me for a preapproval. http://business.financialpost.com/2012/04/18/mortgage-wars-backfire/

Are 10 year Mortgage terms worth looking at?

Recently I have seen discussion on mortgage broker websites on the advantages of 10 year mortgages. This has not been a popular option over the years. I know that i have only done one 10 year mortgage deal in 7 years in the business.
Checking with CAAMP , the Canadian Association of Accredited Mortgage Professionals it turns out that nation-wide, only 1% of people go for this option.
What's changed? Well the 10 year rate has dropped below 4% and now sits at 3.89%. This used to considered a good 3 year rate a couple of years ago! What are the advantages of taking a longer term like 10 years? We know that rates are at historically low rates now. The only way for rates to go now is up. I recall getting my best clients into mortgages 2 years ago at 4.39%. This is now the interest rate some private mortgages are charging for people with bad credit.
We know that rates will go back up to 5-6% sometime in the next 2-3 years and stay there for a while. The advantage with taking a 10 year term at 3.89% is that you avoid all the rate hikes for the next 10 years. You get a really great rate under 4% which will beat rates over the next decade to be sure.
What are the disadvantages?
10 years is a long term. What if you want to get out of the mortgage or move? First - if you move, most lenders will let you port the mortgage. In addition, you can increase and blend the mortgage to account for any additional costs in the new home. The penalty is the tricky part. On a traditional mortgage you are charged 3 months interest or IRD, which stands for Interest Rate Differential. This is a tricky calculation that is in effect, pay us the interest you were going to pay us over the balance of the term. This can amount to $20,000 or more in penalties. This has prevented many people from renewing early over the past 18 months.
The new 10 year mortgages come with this feature; after 5 years you can break the mortgage with a simple 3 month penalty which figures out to about 1% of your mortgage. In a $200,000 mortgage this would be $2000. The savings will often pay off the penalty in a very short time.
So, is a 10 year mortgage good for you? It all depends on your situation and where you are in life.. It's best to talk to a mortgage professional like myself to see if this is a good option for you. Contact me today to discuss 5 and 10 year mortgages.

Fixed Mortgage Rates set to Rise

Well, after telling you that bank overnight rates are not likely to rise, today I have to tell you that fixed mortgage rates are set to go up by .25%. Why? bond rates. Mortgage rates are directly tied to bond rates and the spread between bond rate returns and mortgages has spread over the past couple of weeks. As a result, we can expect rates to go up a little bit. You can avoid the rate increase by getting a pre-approval today . Apply online at my website and I will get you a 90 day rate hold. You can then safely go out house shopping or if you want to refinance we can arrange that as well. Apply at davidcooke.ca

Google keeps your web history

I don't want to panic you, BUT . . .

We search on the internet all day, every day, for information. Houses, illnesses, people, events, books . . . you name, we search for it.

But have you ever searched for something on Google that you wouldn't want the WHOLE WIDE WORLD (or the WWW) to know about?

Well, look out. If you have a Google account, Google has changed their Privacy Policy today, and everything that you have ever searched for in a Google search will now be publicly available unless you do something about it.

So if you want to clear out your web history and keep Google from keeping PUBLIC record of where you search, here are some simple steps to help you out:

Go to your Web History and enter your password if prompted to do so.
If your web history is ON, the list of sites that you have visited that have been recorded by Google will be displayed.
Click on the "Remove All Web History" button.
They will ask you (because you really don't mean it, right?) if you are ". . . sure you want to clear your entire web history? Your web history will also be paused." Oh, yes, YOU'RE SURE.
You should then see "Your search history is currently empty" and that your "Web History is paused" STAY AWAY FROM THE RESUME BUTTON. LEAVE IT PAUSED.
You are now done.

Don't be misled. Google will still be tracking you, and this is not about just clearing your history. But they will not be able to make that information public on their forums, and they can only release it to law enforcement officials in an investigation if you follow the simple steps above. I suggest that you don't Bookmark this and wait for a future time, but that you do it right now (it will take about one minute). Now all of your friends won't find out that you were searching for Painted Ladies, when you were actually looking up Victorian Homes.

The Pros and Cons of Open Houses

Pros and Cons of the Open House

Open houses have been traditionally held to introduce a home listing to buyers and gain exposure. The open house allows many people to view the home in one afternoon. Realtors do not like to hold open houses because they are tied down on a weekend afternoon, prime selling time, and open houses often do not result in sales. The thing is that sellers ask for open houses. They think it is a sign that the realtor is working for them so they demand it. Here's a list of the pros and cons to holding an open house.

PROS
• An open house attracts buyer’s attention.
• A person walking or driving by may become a potential buyer.
• A neighbour considering moving to a larger or smaller home, may prefer to stay in their neighbourhood. An open house gives them an opportunity to visit without any pressure.
• Open houses are often advertised in a local newspaper or online. This brings potential buyers.
• Some buyers prefer to visit a number of open houses on a weekend, instead of having their agent make appointments.
• A potential buyer, who hasn’t yet decided to contact an agent, may be swayed by the opportunity of an open house.
• An open house can give the agent and buyer an indication of the market in the neighbourhood and let them know if the house is priced right.

CONS

• Most homes are not sold through open houses.Only 1-3% are sold as a result of an open house.
• Curious neighbours and other people who are not serious buyers will waste your agent’s time. Nosy neighbours poke around your house because they want to see your décor, compare your house to theirs, or learn your selling price.

• Buyers want personal service and don’t want to share the agent’s attention with other people.
• Safety can be a concern if an open house is busy and the realtor is unable to keep an eye on everyone. Thefts have occurred in some instances.
• An open house can last for an afternoon. Sellers who wish to relax at home on a weekend, will have to leave and take any pets with them.
• Groups of people traipsing in and out can track mud into the house.
• Some people treat open houses as a form of recreation, bringing the family and eating the real estate agent’s cookies.
• The weather may not cooperate. People will not show up for an open house if there is inclement weather. In winter, this can be a real problem in Calgary.
• If there are no visitors, a seller can become worried or stressed.
Open houses are something that everyone needs to talk to their realtor about. If you need information on mortgages or lines of credit contact me. As a Calgary mortgage broker, I have the answers to the questions you have.

Canada Census 2011: Calgary was the country’s fastest-growing city – Calgary Mortgage Broker

Census highlights

Canada’s population as of May 2011 was 33,476,688.
Population grew by 5.9% between 2006 and May 2011.
The greatest growth rate among all provinces/territories was Saskatchewan
For the first time Saskatchewan’s population exceeded 1 million.
Between 2006 and 2011 every province experienced positive growth.
The country’s fastest-growing city was Calgary, Edmonton, Saskatoon and Kelowna, B.C. since 2006.
Population decline was Windsor and Thunder Bay, both in Ontario.
10 of the fastest growing census agglomerations (communities or groups of communities between 50,000 and 100,000 people) were in Alberta.
The largest decrease in population was Thunder Bay, Ont. losing 10.3 per cent.
Urban centres grew to more than 10,000 people and became census agglomerations was: Steinbach, Manitoba, High River, Strathmore and Sylvan Lake and Lacombe — all in Alberta.

15 fastest growing metropolitan areas

Calgary: 1,214,839, 12.6% increase
Edmonton: 1,159,869, a 12.1% increase
Saskatoon: 260,600, an 11.4% increase
Kelowna, B.C.: 179,839, a 10.8% increase
Moncton, N.B.: 138,644, a 9.7% increase
Vancouver: 2,313,328, a 9.3% increase
Toronto: 5,580,064, a 9.2% increase
Ottawa-Gatineau: 1,236,324, a 9.1% increase
St. John’s: 196,966, an 8.8% increase
Brantford, Ont.: 135,501, an 8.7% increase
Regina: 210,556, an 8.0% increase
Oshawa, Ont.: 356,177, a 7.7% increase
Abbotsford-Mission, B.C.: 170,191, a 7.0% increase
Quebec City: 765,706, a 6.5% increase
Kitchener-Cambridge-Waterloo, Ont.: 477,160, a 5.7% increase

Source: National Post

With 42-45,000 more people expected to move to Alberta , most of them coming to Calgary, you can expect housing prices to rise above the 2% forecast last month.
If you want to be preapproved for a mortgage Contact me here