If you have purchased a new built house set to close this fall or you plan to buy, you owe it to yourself to become informed and shop around.
Don’t just take builder / bank financing because it is likely you will NOT end up with the lowest rate – we see it all the time! This can mean $$$Thousands$$$ of dollars in your pocket.
What is the best way to become fully informed? Well we cannot think of any better way than to talk to an experienced, reputable independent mortgage professional who will protect you and save you money.
Such bank financing can be a ‘trap’. This is because mortgage rates are not guaranteed beyond 120 days and new homes take longer to build and complete. Consequently, new build financing is structured with a ‘hedge’ against rates rising between the time of offer and closing. For example, the bank gives you an approval with or cap or maximum rate which is typically one half to a full one percent below posted rate. Today that would look like 4.64% minus 1.0% or a committed cap rate of 3.64%.
This compares not too favourably with current rates guaranteed for up to four months of 2.75 to 2.89%. As you can see their remains a significant ‘spread’ between current rates and cap rates for new builds, leaving money on the table.
Hypothetically your rate is supposed to float down to current rates closer to closing. The problem is that the bank does not provide any guarantee of giving you the lowest rate and most often they do not and the final rate ends up somewhere in between. The truth is, new build financing gives the bank a opportunity to make more profit than with resale and they will if they can.
So if you currently are in this situation PLEASE COME SEE US WITH YOUR OFFER within 120 days of closing AND WE GURANTEE WE WILL BEAT THE BANK RATE!!!
In addition you can benefit greatly from our VALUE ADDED LOCAL RETAILER DISCOUNT PROGRAM WITH  UP TO 35% off of home improvement and furnishings, including décor paints, window coverings, carpets, landscaping, decks, patios etc etc, all the things you will need to pay for after you move in. Potential savings here by buying locally are in the $$$Thousands$$$ of dollars.
Buying a brand new home is one of the most exciting times of our lives because we are first to live in it and the first to put our personal touches on it.
Because of the myriad of expences associated with ‘new’ it is of the utmost importance to ensure you do not waste money and there is no bigger potential for that than with a cap rate mortgage scenario. We also have a discounted legal cost arrangement with one of the best real estate lawyers in the region to save you even more.
If you are planning to buy ‘new’ in the near future, save yourself the hassle and the headache of a bank cap rate mortgage.
WE NOW HAVE GUARANTEED RATE FINANCING FOR UP TO NINE MONTHS WITH OUR GUARANTEE TO BEAT THE BANK!
Please call to make an appointment to learn more, now.

This is the first of a two-part series and is one of the most important messages we have written to date.
Regulations governing mortgage (tightening) lending rules have already had a major impact on qualifying for a mortgage in the high ratio insured sector, that is, making it more difficult. But they are not done, not by a longshot. The changes cover both purchases and refinances.
Buckle your seat belts folks. The government is proposing to further TIGHTEN ALL MORTGAGES by including conventional low ratio uninsured mortgages which means the entire mortgage market.
The proposal will require Canadians with more than 20% equity in their homes to qualify at 4.84% versus current contract rates. In other words, instead of qualifying today based on 2.84%, you will have to qualify at a rate some 70.4% higher.
Why is this happening now when the real estate market has cooled, employment levels are high, inflation is very low and when mortgage defaults are not even on the radar screen? Everything is now more in balance, previous tightening has worked and there is no reason to go further.
This chart illustrates today’s status quo relative to a current mortgage qualification and what it would look like post further tightening.

The proposed changes can and likely will (as in past) be issued without advance notice and at any time and will hurt everyone, especially those on fixed and single incomes and for whom it is already more difficult.
The government is attacking the wrong kind of (good) low interest debt and is in fact forcing Canadians to take high interest options such as lines of credit, credit cards and consumer loans all of which put people (in harms way) and on the proverbial ‘slippery slope’.
Does any of this make any sense to you? Us neither. So there is something or somebody else behind this, right? We think so, and the only other possibility (culprit) is the big banks who wield tremendous power with the ability to influence government and regulatory bodies, bodies by the way that were (past tense) intended to protect the consumer.
What happened to the uproar several months back about unfair and predatory bank business practices that was so widely reported by the media? Somehow, someway bank scandals always seems to disappear quietly into the night don’t they?
Moreover, speaking of bank dominance, how did they get away (virtually unnoticed) with recrafting a basic traditional mortgage into a ‘Collateral’ mortgage which secures everything a customer has with the bank, gives the bank the right to increase rates on all instruments at its’ sole discretion, as well as substantial control over your financial affairs with them. Worst of all, consumers are not made aware of
any of the potential consequences. Heck, in truth, it is no longer a mortgage at all, it’s a revolving line of credit facility.
Please don’t miss next week’s article with more specifics about who (and how you) will be affected. If you have any (bad) high interest debt, NOW IS THE TIME TO GET RID OF IT before the window of opportunity closes.
We are on your side and our role is to inform, educate, advise and protect you. I would venture to say, no one else comes close! Please speak to your spouse, family and friends and make them aware of what is coming!

This is the second part of this two-part series on the impact of government intervention designed to make mortgage qualification much more difficult. The proposals if put into effect are entirely unnecessary since the real estate and mortgage markets have already contracted. MOST IMPORTANTLY the proposed changes will dramatically affect everyone.
Affordability will decrease by over 20% as you will need to qualify based on a rate 200 basis points or two per cent above the contract or commitment rate. Using current rates of 2.89% you will need to debt service using 4.89%.
Let’s say you qualify today for a $500,000 purchase price with 20% ($100,000) down today and a $400K mortgage. The new regulations will qualify you for a maximum $320,000 mortgage only and you will be required to make a down payment of $180,000 or $80,000 higher. If you cannot come up with $180,000 down, you will need to lower your purchase price expectation to $420,000 from $500,000. To repeat, this regulation change will apply to everyone.
THE IMPACT WILL BE EXTREMELY SIGNIFICANT since it will affect all mortgages not just purchases including refinances.
The result will mean fewer home purchases, purchases at lower prices and fewer refinances. Approvals of refinance mortgages will drop dramatically as well, forcing people into second mortgages, higher interest lines of credit, loans and credit card borrowing.
Single income households (one spouse working), households with worrisome credit card debt, single parents, retirees and the disabled on fixed incomes will be impacted the most and either qualify for much less or not at all. Some will also be forced to sell their homes longer term.
In short, the proposed new changes will hurt every one without a doubt.
In the bigger scheme, the real estate market will be impacted very negatively.
The new restrictions can and likely will be introduced (like last time) without warning or at least with very short notice.
We apologize for being the bearer of such alarming news, however we are compelled to warn and inform Canadians so that you can act before it is too late.
PLEASE CALL US AS SOON AS POSSIBLE to make an appointment to take care of your needs and PLEASE SPREAD THIS TO ALL YOU KNOW WHO INTEND TO PURCHASE OR REFINANCE. THANK YOU.