A local lawyer called us the other day and asked us to look at a private mortgage, a client had asked him to act for.  It seems that the lawyer who was acting for a homeowner  who was in the midst of a separation.  Joe was self employed and wrote his income down a lot and had gone to a mortgage broker in Guelph to help him refinance his house in order to pay out his ex.   The mortgage broker felt there was not enough strength with his income as a seasonal landscaper and asked for his mother to put her house up as further collateral on the deal.  We agreed to meet Joe and his mom and look at the proposed deal.  It was a 2^nd private mortgage at 14% with normal types of fees for this mortgage. 

We like the lawyer did not like the deal.  In essence, there was no reason to have the mother put her house up as collateral.  There was plenty of equity in Joe’s home and he had good credit.  We see the bank’s do this all the time…taking too much and we’re here to protect you. 
Well, the story has a happy ending.  We were able to find a prime lender for Joe which would take out his existing 1^st mortgage and get him a very affordable payment at an incredible 3.39%.   He can pay out his ex wife and he can easily afford the new payments.  And his mom doesn’t have to risk putting her home on the line. 

The moral of this story is this. Never use out of town brokers or private lenders you do not know. Use reputable, local ones. The lawyer who sent this deal to us, smelled a rat. He realized that the private lenders were ‘acquisition’ lenders, meaning they want to get the property by charging punitive rates and fees that ultimately dig a deeper hole for the borrower. Also there was no need to use the mother’s property as collateral. If they did, and any payments were missed, they would then charge fees upon fees and run up legal bills that cannot be paid, and they can then realize on the property.

Call us for your next mortgage need. We look out for your best interests, and we’ll help you get ahead.

When we were kids everyone bought with savings  and credit cards (CC) were still a thing of the future. What a difference a generation makes. Today everyone has a CC and buying on credit has become the norm. The easy availability of CC’s and Lines of Credit have proliferated the ‘Buy Now Pay Later’ scheme of things.

Most people have the best of intentions to pay off credit card (CC) balances every month. Unfortunately when this doesn’t happen before you know it you are only making minimum payments.  Your CC gets maxed out, you take your next credit card offer and the cycle into ‘easy bad debt’ spins out of control.

All of this is considered ‘bad debt’ because of the high interest rates attached to them. Most people (couples) obtain joint credit which actually is not a good thing. Establishing one’s own credit is better. Why? Because if anything happens to the relationship, credit ratings can go in the dumper really quickly. If one partner loses their job and they start borrowing on a CC to weather the storm, it can bring the other down. If you are self-employed, by all means keep your credit separate from your spouse if he or she is employed elsewhere.  Many people think that getting a ‘supplementary’ CC for a spouse helps their credit rating. It does not.  In short, there are many more advantages for avoiding ‘joint’ credit and if you cannot qualify on your own, then avoid obtaining a CC until you can qualify.

All decisions to obtain credit should be made as a couple, as should the use of credit. Making any significant purchases without the knowledge and consent of your partner can lead to trouble. Did you know that credit problems are a primary contributor to divorce and to bankruptcy? It is extremely important not only to manage credit responsibly but to also choose the best CC for your needs. Whether features such as a CC that offers free groceries (we think this one is a bad idea…sorry PC Financial), gas, travel, out of country car or medical insurance, are best for your needs, make sure you research and understand such things as interest rate and service charge policies, minimum payments, grace periods, credit card insurance, out of country fees etc. And read the fine print when you receive your new CC. If you don’t like what you read, put the CC in the freezer and forget about it.

Also know when your statement date is each month and make any significant purchases shortly ‘after’ the statement date…this way you can take advantage of ‘free’ no interest credit for up to 50 days.  If you find yourself making only minimum payments, look out. Whatever you do, never let the balance exceed 75% of limit. This shows good use of credit, and your credit score will not suffer. If you are a homeowner, and you are having credit troubles or you are simply concerned about your ‘trend’ , call us today for a free financial health check and some friendly, unbiased advice.

That’s right, if you are buying a home and you get your financing with us, we will pay for your home inspection.  Another good reason to choose The Price Team/DLC.  It’s best to start with a pre-approval, but as long you arrange your mortgage through us, this incentive will work for you. Also if you know someone who is going to purchase, please tell them to call us to get in on this great offer.

RATES ARE BACK TO ‘ALL TIME’ LOWS – It’s a great time to buy a new or resale home. Yes, fixed rates have come down again. Our best fixed rates (vs Banks) are 5 year 3.19% (vs 4.64%), 7 year 3.99% (vs 6.35%) and 10 year 3.99% Wow! (vs 6.75%). Our variable is at 2.85%. Based on our 5 year fixed rate the monthly payment on a $300,000 property with 5% down is only $1,228, $400,000 is $1,634, $500,000 is $2,046 or only $2,256/mth at 3.99% for 10 years. Wow and wow! With such low low rates comes the opportunity to pay down your mortgage that much faster. Let us show you how!

IF YOUR CURRENT MORTGAGE RATE IS ABOVE 4% – With less than a year left on your mortgage, now is a good time to look into locking in to a long term ‘All Time Low Rate Mortgage’. We will be pleased to show you all the options available to you from us versus more limited options at the bank. We will also help you understand all the negatives involved with the banks’ new collateral mortgage (CM) product. We do not recommend this product to any of our clients.

COLLATERAL MORTGAGES – Do you know that a CM makes your unsecured credit cards (with the same institution) ‘secured’? Do you know that the fine print allows the bank to increase your rate, much like they did to lines of credit during the credit crisis in 2008 and 2009 at their sole discretion? Do you know that if the bank chooses not to approve you in future or offers you an unacceptable rate, that you cannot obtain credit elsewhere because your CM mortgage is registered above the value of your house.

Call us today for an appointment at our ‘homey’ home office on Tower St. We’ll set you straight. It will be one of the ‘best’ phone calls you will ever make.

It was awesome to meet so many new and old acquaintances at last week’s Fergus Home Show.  Check out Tracy Luciani Facebook page; please send us your ‘likes’.

The draw was held Monday morning and the winner’s are: Joyce Sweeney of Elora for a Free Mortgage Payment, Rick Yuill of Elora  for the Classic Harley Davidson painting, and Debbie Denhoed for the Enriched Academy.Com  – Smart Start System for Financial Genius. Debbie has 3 kids…perfect! Congratulations to all of you.

We would like to suggest to all parents out there, that if you have teenagers, the Enriched Academy program is a wonderful, invaluable resource that they must have in their hands as soon as they reach age 13.  It encompasses more than saving, investing, budgeting, managing credit/debt to include Goal Setting, Building Character, Choosing Careers etc. Any youth or young adult who follows this program will become financially independent/wealthy. One of our DLC colleagues developed it for young people since our educational system does not teach them this stuff. It is a very worthwhile program and represents one of the greatest ‘gifts’ that you can give your child. Better yet, don’t give it to them, ‘encourage’ them to buy it with their first job earnings, or if you purchase it for them, have them pay you back right? That’s teaching them responsibility.  The 5 DVD series/package retails for $149.95 however for those of you who do your next mortgage or refer a new mortgage client to us (or a Home One Canada.Ca service bundle) will receive one free from us.

Congrats to Tracy for being honoured as the #1 Producer (3 years in a row now) with our franchise that includes over 70 mortgage consultants. Way to go Trace, you’re the best.  The Price Team/DLC  also placed in the top 12 with Dominion Lending Centres, Canada wide in 2011.