26 Mar

WITH LOWEST RATES ‘EVER’; WHAT TO DO?

General

Posted by: Tracy Luciani Price

 

The early spring housing market is heating up with the lowest rates in history, right now!

Let’s take a quick look historically at where rates have come from. 5 year fixed was 22% in 1982, 14% in 1991, 9.9% in 1994, 7.5% in 1995. By 2010 it was down to 5%. Today it hit an all-time low of 2.89%. But don’t be fooled. To get 2.89% you have to close within 30 days AND you have no prepayment privileges meaning that if you need to sell within the term, it could cost you a fortune (or worse, you cannot sell at all). A 3.04% rate on the other hand will give you much more flexibility, all for the sake of a few bucks a month.

Folks, ‘fixation’ on rate only, ignoring other equally important (cost) factors is not only dangerous, it’s foolish. When you deal with us, we take the time to help you understand all the important components of a mortgage, we dig deep to discuss your future needs and ensure that the mortgage ‘product’ we put you in, is absolutely best for you.

We also discuss ‘Strategy’. Should you consider a 7 or 10 year terms currently at 3.59% & 3.69% respectively? The 5 year rate was at this level just a short time ago, and since rates will rise in due course, and could be a lot higher in 5 years’ time, deciding to go long term could well be the most prudent financial decision you ever make. Getting a mortgage today is more complex and confusing than ever before, and choosing the right term and mortgage product has never been more important.

Understand that ‘Strategy’ is more than just choosing the best mortgage rate/terms for you, it’s also about putting a formal plan (with goals) in place to pay down/off your mortgage much faster, saving you tens of thousands of dollars.

Our new SMARTEQUITY cash management/debt elimination is your answer. Call us today to learn how you can pay off debt much faster without even changing your mortgage. If you need a new mortgage, even better. Become completely debt free too, in a fraction of the time. No bank nor any other mortgage source in this region can offer you this amazing solution. You can also retire sooner than you think, or plan to have an investment/retirement income that is otherwise not possible. Call today to make an appointment to change your life forever.

Our info session for private lending is being held on Thursday April 4th at 7 pm at our office. Please call and register to attend.

 

22 Mar

LEARN ALL ABOUT PRIVATE LENDING

General

Posted by: Tracy Luciani Price

 

With the tightening of mortgage rules by the federal government over the past few years, qualifying for a prime institutional mortgage has become more difficult. This has increased the demand for alternative money sources.

Refinances are now restricted to a maximum 80 per cent loan to value and as a result high ratio lending in this category has been completely eliminated.

People continue to have needs including paying off high interest debt to reduce the ‘interest’ burden. Private first and second mortgage money is still available at ‘attractive’ rates, and represents a short term solution for borrowers.

The return to private lenders is considerably higher than returns from bank debt instruments and the stock market, and hence we have seen a surge of private money available last year, but the need continues to exceed demand. First mortgage rates (return) ranges from 7% to 10% and seconds from 12% to 15%, significantly higher than bank deposit rates hovering around 2%. RRSP’s can also be used to fund second mortgages.

Private lending in real estate is typically more secure and stable than most other non-real estate related (stock market) investments, and provides an excellent return over the longer term. We conduct a thorough due diligence, and structure the deals to mitigate risk for our lenders.

If you are interested in becoming a private mortgage lender, and you want to learn more, we are holding an information session at our office next Wednesday April 4th  at 7 p.m. If you wish to attend, please register by calling us beforehand.

Mark Graham of Graham Law Offices in Guelph is our guest speaker with a wealth of experience to answer any questions you may have. We hope to meet you then.

 

If you own a house, have a mortgage and/or carry consumer debt please call The Price Team today to make an appointment to learn how you can pay off your debts in a fraction of the time, without refinancing, yes that’s right, and become debt free faster than you ever imagined before through our amazing  SMARTEQUITY program. To see is to believe.

20 Mar

FIRST TIME HOME BUYER LOVE AFFAIR

General

Posted by: Tracy Luciani Price

 

Well Spring came early this year for us as low   low interest rates spurred on first time home buyers to purchase.  First time home buyers are our specialty   for many reasons but mostly because we thoroughly enjoy going through the   process with them. 

It is a journey of sorts making sure all their   ducks  are in a row in terms of credit,   income and down payment.  Certainly it   is gratifying that many of our current clients who have now grown children of   their own, send them to us (not the banks) to make sure their kids start   their financial life on the right foot.    A lot of what we do is educational and we take our time.     

 

If the bank has not checked your income, your   credit and your down payment, the pre-approval means nothing.  So we look at all of these things and if   there are weaker areas like credit (you need a Beacon Credit Score of at   least 600) we help the first time home buyer get into shape by coaching them   on credit.  If their credit is fine, we   discuss taking on too much debt after they become homeowners. 

Many parents discuss these issues with their   adult children but sometimes they listen better coming from a professional   mortgage broker.  We do a lot of   handholding through the home buying experience.  If they need more down payment we help them   with ideas on how to save money. 

In discussions, we also talk about the types of   mortgages, how banks are collateralizing up to 125% of value and how that can   spell trouble down the road.  Variable   vs fixed, conventional vs high ratio.    Some adult children actually have a sizable down payment  (usually from living at home) which avoids   the CMHC fees.  And we give lots of   helpful from being homeowners ourselves and mortgage experts.

It’s all part of our service which goes way   beyond a simple meeting.  For us it’s   really a joyous event.  We all remember   our first boyfriends, our first car, our first homes.  And we are thankful so many of you come to   us.

    

 

5 Mar

KISS YOUR MORTGAGE ‘GOODBYE’

General

Posted by: Tracy Luciani Price

 

One of the major banks is running an ad that states “Richness is: Kissing our

mortgage goodbye. Own   a home, not a mortgage. Be mortgage-free faster  

and easier.”

 

After we pressed the ‘Ask us now’ link to see what more   info the bank offered,

we could not find any further explanation that   specifically tied to the ‘lead in’ other   

than a choice of mortgage products, a mortgage   calculator and a prompt to call a

home financial ‘advisor’ to learn more.

 

That’s because there is nothing ‘new’ folks, it’s   same old, same old slickly worded

advertising designed to get you to call. The words   ‘Easier’ and ‘Simpler’ sound

so pleasing to the brain, but don’t be fooled. A bank   mortgage today, is anything but.

 

The only way you can pay off a bank mortgage faster is   to dip into your own pocket   

to find more money to make extra principle prepayments.   As we have said many  

times in recent years, with interest rates so low,   accelerated payments have little or

no effect on reducing the mortgage balance quicker.  The only way you can pay off

your bank mortgage faster is via accelerated payments   or prepayments. Now there is a much

better way.

 

THE PRICE TEAM – DOMINION LENDING CENTRES in Partnership   with

SMARTEQUITY.ca is the   only mortgage source in all of Centre Wellington and

Wellington North   that can truly help you ‘KISS YOUR MORTGAGE GOODBYE’                                                                                          faster, much faster. And you can now do   so without changing your current

mortgage, within your current budget, and without   accelerated payments. If you live

in Guelph, Fergus, Elora, Rockwood, Alma, Mount   Forest, Clifford, Palmerston,

Harriston, Listowel and environs you will qualify for   this amazing program/solution.

 

It’s all true, and not only that but we can also help   you eliminate all your debt in a

fraction of the time it would otherwise take.   Typically consumer debt gets eliminated

for example in 3 years from 10 years, and a 25 year   mortgage to less than half or

even a third of the time, saving not only tens of   thousands  but in many cases by

over one hundred thousand dollars.

 

Who should you call for you next mortgage need? The   answer has never been

clearer than now. If you are thinking of selling,   buying, refinancing, renewing; even

if you are not, we can still help you put big savings   into your wallet, instead of

the banks’ coffers. To learn more please call us to   attend one of our upcoming free,

no obigation seminars, today.