Tips, Advice, and Explanations from a Vancouver Mortgage Broker  

Posts Tagged ‘no penalties’

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 »

Fixed Rate Mortgage with No Penalty? Does it Exist?

Monday, February 22nd, 2010

Do mortgages exist that have no penalty but a guaranteed rate. The short answer is yes, but the reality is that they are not a product you want.

This video blog goes into this type of mortgage and answers the question for Canadians: “Can you have your cake and eat it too in the mortgage world?”


Transcript of Video Blog:

So you’re wondering, can you have your cake and eat it, too? Can you have a fixed rate mortgage that has no penalty to pay it out? The answer, in Canada, not if you are going to be getting fully-discounted rates.

Some institutions do offer one-year or six-month fixed rates, but they are rates in the 6.45% and 6.55% range, and they are generally not something anybody opts for. The product does exist, but in Canada you really don’t get to take advantage of it.

Down with our neighbors to the south, the Americans are quite used to taking the long-term mortgages, 30-year amortizations and 30-year terms and having no penalties to get out of their mortgage. They can break it at any time they want.

This is a substantial advantage they enjoy, that their banking system allows. Now having said that, many Americans actually end up paying a fee just to set up a standard mortgage. While we in Canada, generally, don’t have to pay a fee unless there are some quirks or other things to do with your mortgage that don’t fit the bank “box.”

I, as a broker, don’t charge any lender fees, any lender or broker fees. I, as a mortgage broker, do not charge any broker fees on a standard residential bank mortgage.

There are times when we do have to charge fees, and a lot of it has to do with foreclosure bailouts and bankruptcies and whatnot like that, but that is not for the standard mortgage you are getting renewal or purchase or whatnot, and you qualify for it.

If you’re looking at those rate sheets and you’re wondering “Wow, the variable rate is great but I’ve still got to pay a penalty. I would really like a fixed rate, but I don’t want to be stuck for five years.” Unfortunately, you can’t have your cake and eat it too in this industry. I’m sorry. For the Mortgage Centre, I’m Rowan Smith.