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Tips, Advice, and Explanations from a Vancouver Mortgage Broker  

Posts Tagged ‘home buyer’

What Makes a Broker Different Than The Bank – Vancouver Mortgage Broker

Thursday, March 22nd, 2012

Transcript of Video Blog:

Hi everyone. Rowan Smith from the Mortgage Centre. I want to talk today about what differentiates me, a broker, from just walking into your bank. If the only thing in the world you care about is rate then perhaps the bank is the best place for you to go. They may not have the best rate for you, though. I’m just saying that if that’s the only concern you can shop with them first.

However, there’s often many other things that we need to look at. We need to look at prepayment privileges. We need to look at can you get out of the mortgage if you need to? We need to look at how does that stack up against the competition in other financial institutions. We need to know if you’re going to live there for the next few years or if you need a line of credit as part of your package.

We need to know the sources of your income to know if you fit under specific programs that will get you additional discounts. We need to know a lot more information than just what is the best rate. There’s many questions that you can ask us as brokers and what is your very best rate while it is one of those questions it’s often not the most important.

I’m going to give you a case in point. Today I had a client come to me who had been chomping on a couple of different mortgage brokers and was getting pulled in a lot of different directions. When I looked at the situation I realized that many of the options that they were being offered didn’t even apply to them based on how they reported their income. I clarified the situation for them, had the deals packaged and arranged within a couple of hours, sent off to my lenders, and already received a response in the same day.

Now, I can’t promise a same day response every time. There’s just a number of factors that prevent that depending on individual deals. It is possible in a very clean situation. What I can do and the value I provide is not just a great rate, although I’m always going to try to get you the best rate, it’s also advice on the other elements of the mortgage and on your lifestyle. We, as mortgage brokers, are specialists on the debt side of the equation.

We’re looking out for your best interest in a fiduciary duty to try to get you the best terms, rate, and product to satisfy your needs. We’re not product salesmen. We don’t just sell the best rate like a canned product that we take off the shelf and hand to everybody. If everybody qualified for the best rate all the time they wouldn’t need us. There’s a lot of us out there for a reason and that’s because we can help provide an immense amount of value in selecting a good lender or getting a deal done in a timely fashion or under specific guidelines or times of day that your bankers can’t match.

If you or someone you know would like additional advice and would like an independent third party, which is what we are, to look at the situation please have them see me. It’s Rowan Smith from the Mortgage Centre.

Can I Roll My Other Debts Into My Mortgage?

Friday, February 18th, 2011

Transcript of Video Blog:

Hi everybody, it’s Rowan Smith with the Mortgage Centre. We’re going to do something a bit little different here this week. It’s where I’m going to answer one of the most common questions I receive, which is “Can I roll my other expenses into my mortgage?” So let’s look at exactly how that would go down. Read the rest of this entry »

A “Variable” Mortgage is NOT and “Open” Mortgage – There is a difference

Friday, February 18th, 2011

Transcript of Video Blog:

Hi, everybody. I want to address a very common myth, and that’s that people think their variable rate mortgage, because it is open to fluctuations, is in fact an open mortgage. That’s not the case. There’s a lot of confusion as to what is an open mortgage versus a variable mortgage versus a closed mortgage or a fixed mortgage. Read the rest of this entry »

First Time Home Buyer Rights and Advantages

Tuesday, February 15th, 2011

Transcript of Video Blog:

It’s Rowan Smith from the Mortgage Centre. I want to address a very common myth that I hear about, that clients will come to me and say, “Well, I’m a first-time home-buyer, so don’t I get a better rate on my mortgage?”
Read the rest of this entry »

Stephen Harper Proposed First Time Home Buyer Tax Credit

Friday, October 17th, 2008

On September 16th, Stephen Harper made an election announcement of a tax credit of up to $5,000 for First time home buyers which will provide tax savings of up to $750. The announcement was welcomed warmly by the Canadiam Home Buyers Association (CHBA).

CHBA President, John Hrynkow said, “This is a practical measure that will help many first-time buyers as they struggle to realize their dream of owning a home.”

This annoucement provides a subtle clue to the stance of the Conservatives as to the importance of home ownership to Canadians as well as the impact that the New Housing industry has on the national economy and overall well being. The New Housing market has been one of the key reasons, speculate economists, that Canada has fared well in the slowing economy as the New Housing industry has remained strong.

Mr. Harper indicated that if elected (and as of the writing of this article he has been re-elected) the Conservative government will phase in a tax credit over four years for up to $5,000 of the closing costs on the purchase of a new home. According to Mr. Harper, this will result in tax savings of $750 for first-time home buyers.

My opinion on this announcement is, “In this market? (Vancouver) Who cares?”

This $750, or even $5,000 is a drop in the bucket in terms of home ownership in Vancouver. Also, the only mention in the announcement is that this will be a tax savings of UP TO $750 for those first time home buyers who buy a “New Home,” not just “their first home.” So, it seems to imply that if a first time homebuyer is buying their first home, and it is NOT a brand new home, then they may not receive the tax credit. While I am not sure about precise percentages, I suspect that the RE-sale market is far, far larger than the new home market, and furthermore, that most of the people buying brand new homes are NOT first-time home buyers (unless buying a condo – to which it is unclear if this tax credit will apply).

In a market where a 1 bedroom condo is selling for upwards of $400,000 a $750 sounds like it will hardly make a dent. I know the government’s heart is in the right place, and across the country I am sure it adds up, in the aggregate, to a substantial tax savings for everyone. But on an indvidual basis, it doesn’t look all that great. Also, what elements of closing costs constitute a deductibe expense is another thing that isn’t clear.

Regardless, I don’t think it will have much economic impact, although I am pleased to see the government recognizing the importance of home ownership to Canadians.