Brad was a fireman with a ton of consumer debt.   He made over 100 thousand per year but had no money.   Because he made such good money, he was easy prey for his bank, who rolled out lines of credit, visas, car loans and when all of those got maxed after his divorced…they rolled out another line of credit with a higher rate of interest.   Brad was depressed and almost destitute.  Almost every dime he made was going to payments to the bank.  You could say he was paymented to death.  Remember the bank wants to keep you in as much debt as they can, without bankrupting you.  Because if you were bankrupt you couldn’t pay the interest anymore.  So depressed Brad would get his paycheque and start subtracting.  At the end of the day, nothing left.  That’s when he came to us.

We reviewed Brad’s  entire debt load.  Sadly, he owed more than his house was worth.   We refinanced him to pay off some of his debts.   With the new government rules, homeowners can only go to 80% of the value of their home.   With his great job and good credit, we were able to find a private lender who would provide a good private 2nd mortgage to eliminate a few more debts.  His total payments went down by 1500 dollars per month with our 1st and 2nd mortgage solution. 

We told Brad to increase his 1st mortgage payments  to help increase his equity position and to stop spending on credit.

After two years, the value of   Brad’s house improved enough, so we are now able to pay off the 2nd mortgage with a new 1st mortgage.    With our coaching, Brad is well on his way to financial stability.  And he doesn’t have to subtract payments any longer from his pay stub.   

By Tracy Luciani Price

Our mortgage business does mostly prime business but we still do a lot of private deals.  And we are always in need of new people who would like to make the jump into private mortgages.  Most of our private lenders came to us because they sold their farm or quota or their business or they got a large inheritance or they had a lot of money in the bank getting pretty much zip in returns.  Some of them borrowed privately and then became lenders.   We have a personal relationship with our private lenders as we tell them about the stories of why a homeowner would  need some money.  These are local people who find themselves in a bit of a jackpot and unfortunately at this time, institutional money is not an option.  Most of our private lenders are from within a 100 mile radius of the area so they are familiar with the market here.  

A homeowner comes to us and if we figure out that a private mortgage is their best solution, we will discuss the situation with the private lender.  We order an appraisal, pull credit bureauis, get job letters and pay stubs all the regular information we gather for a regular mortgage.  We make sure the clients can afford the new mortgage.   Our goal is to have an exit plan so the clients can eventually get back into prime mortgage. A typical private mortgage has a 1 year term which is renewed at the discretion of the lender.  The borrower and lender both have their own lawyer and the borrower provides a PAD form or postdated cheques to the private lender.  It’s all very civilized. 

The returns on investment on a 1st mortgage can range from 6 to 10 percent and on 2nd mortgages  10 to 15%.  Our investors are not interested in taking properties by power of sale or foreclosure. We are  not interested in that kind of lending.

Private lending is  a win-win for both the lender and the borrower.  The lender has money and the borrower needs money.  And it’s a hands on investment rather than relying on someone to invest in something you have no clue about.  Your money is invested on a property you can see, visit or driveby.   Our motto is to never lend money  to people, we wouldn’t be prepared to lend ourselves.  And over the past 15 years, we have helped a lot of homeowners out of very difficult circumstances  by the private lending means.   

Right now, our need for private money is greater than in the past because we are helping a lot of farmers with the addition of our farm mortgage broker Cory Wozniak who hears from many farmers who cannot be financed through the banks.   If you are interested in discussing how to lend privately please give us a call and we’ll have a chat about whether it might be something you would like to do. 

BIG BANKS CAN NO LONGER ‘HIDE’ GREED
The recent Bank of Canada (BOC) .25% reduction of prime rate  was only reluctantly passed on to consumers more than two weeks later AND the big banks ‘Kept’ .10% to themselves TO PAD RECORD PROFITS EVEN FURTHER. Bank ‘prime’ was only reduced from 3.0% to 2.85% instead of 2.75%. The BOC acted intending to stimulate the economy. Thanks to our big banks ever so obvious greed, the change won’t do much after all.
Always, always, always whenever BOC prime goes up, the banks’ increase immediately.  The banks’ actions, while not a surprise, continue to be disappointing and unabashedly callous towards the consumer.
Seemingly unstoppable greed abounds anymore, and in the mortgage business, it is ever so apparent. Daily we learn of examples of how the banks take advantage, whether it be bad advice, lack of disclosure, excessive penalties, or the collateral mortgage product that gives the banks a strangle hold over unsuspecting customers.
Without us, you would have no choice and no voice to guide you to make smarter, more informed choices when it comes to the biggest monetary transaction of your life; and one that actually provides you with a tax free opportunity to increase your wealth, faster than you know.
Did you know that hundreds, in fact the majority of our clients who listened to our advice and who took out ‘variable’ rate mortgages over the past five years, are now singing our praises and cannot thank us enough. Why? Because they can now see how much interest they have saved. Many of them are now renewing, and those that also followed our recommendation to make the equivalent fixed rate payment on their lower rate ‘variable’ have paid down their mortgages at a much faster rate than those on fixed rate. In short, they have saved tens of thousands of dollars in interest because they listened to us and believed what we were telling them about the direction of interest rates, this in the face of the banks never ending fear mongering that “RATES ARE GOING TO RISE SOON”. This bank tactic not only convinced most people to take a ‘safe’ fixed rate mortgage (with it’s much greater penalty potential), but it also at times caused those with variable rates to prematurely ‘lock in’ to a fixed rate. The rest as they say is history.
For your next mortgage, please call use first, or at least, get a second opinion. 
If your mortgage is renewing or you want to refinance WE HAVE AN UNBELIEVABLE 5 YEAR FIXED RATE AVAILABLE UNTIL FEB 28TH OF 2.69%. DON’T WAIT, ACT NOW!           Our best variable currently stands at 2.25%.

ANNOUNCING - THE GREAT 2015 MORTGAGE ‘GIVEAWAY’
THERE HAS NOT BEEN A BETTER TIME TO GET A MORTGAGE SINCE WORLD WAR TWO.
That’s right folks. Our 5 year fixed rate is as low as 2.79%; Variable rate is now an incredible 2.25%.
Imagine, slightly over 12 years ago rates were in the 10 – 12 per cent range. Do any of you remember the 21+ per cent rates in the early eighties recession?
Today not only ‘seems’ like ‘Utopia’ but is ‘Utopia’.
To celebrate this ‘Lifetime Milestone’ of lowest ever rates we are introducing an AMAZING OFFER FOR YOU!
This is not a contest. You don’t even have to ‘Win’ something. All you need to do is refer a ‘New’ client to us for a mortgage that closes. That’s it. That’s all, and you win receive a FREE ONE WEEK ‘SUITE’ ACCOMMODATION anywhere in North America. Send two people and get two weeks free vacation on us. In other words, there is no limit to the number of referrals you make to us and the number of free vacation weeks you can earn. Hundreds of destinations available including Collingwood, Orillia, Mont Tremblant, Quebec City, Mrytle Beach, Hilton Head, Orlando and other Florida locations.
Call Ron Price today for further details. Vacations are to be arranged exclusively through PRICETEAMMORTGAGES and timing is dependent upon availability. Certain conditions apply*. This promotion is time limited and ends March 31st, 2015.* 

‘DEBT’ (NOT INFIDELITY) NOW THE NUMBER 1 REASON FOR DIVORCE

The times are a changin, for sure. It used to be that infidelity was the primary reason for divorce. No longer!

Today’s reality of overspending on engagement rings and weddings ensures marital discord. Statistics show that on average the price tag on wedding rings is approaching $5,000, double that of just 10 years ago. And on average weddings now run $30,000+. Add to this the hangover of student debt plus the necessity of buying a new car and all the accompaniments of a new place add immeasurably to one’s debt load.

Talk about digging a hole at the beginning of a new relationship!

A recent Kansas City University study of newlyweds suggests that when couples begin arguing early in the marriage about money, it usually leads to a rocky marriage. Unfortunately this is ‘after’ the expensive engagement ring and wedding. The dye has already been set.

Experts suggest that if you are planning on getting married, consider instead saving for a down payment by cutting back on engagement/wedding costs. In fact they say “Elope rather than having an expensive and elaborate wedding”…for your friends. Even more importantly, discuss the subject of money and spending habits with your potential significant other, before you get married. This is hugely important since long term marriage is a partnership and one where it is so important to be on the same page together.

How we feel about finances is usually shaped by our experiences growing up. Many of us have ‘triggers’ that, if not understood, will inevitably lead to arguments and worse.

For years, out of necessity, part of our services have involved financial ‘counselling’ but our tools were somewhat limited. More recently, we introduced ‘DebtProof.ca’ our new debt elimination program which has already created a lot of interest. We now have the capability of helping Canadians save tens of thousands of dollars by eliminating consumer debt and mortgage debt much much faster than you can imagine. In addition, our new program will help you generate financial security, improved cash flow and wealth creation, all of which will change your life in big positive way.

Please visit ‘DebtProof.ca’ today to gain a better idea of its’ potential for you. Seeing is believing. Then give us a call or send an email to set up a private ‘one on one’ meeting to discuss your situation and receive a free financial analysis showing how your financial circumstances can be improved with our help.

LIVING PAYCHECK TO PAYCHECK?

Well you are not alone. In fact over 30% of Canadians are struggling, big time, according to a Rainy Day Survey by BMO. We see it all the time in our business and suspect that reality is more like 40 to 50 per cent. 27 % have savings that would last only a month or less. 40% have less than $5,000 saved. The majority would likely have to borrow to meet an emergency. Conclusion? Too many Canadians are totally vulnerable to financial collapse and many are already under water, meaning they spend more than they earn.

So what is the ideal emergency fund you ask? The answer is six months of income. How realistic is that for most Canadians? It would appear to be an impossible task right? Further investigation reveals that the answer lies with poor cash flow management, something which most of us know little about.

So how did we get into such a sad state of affairs? Well back in the 1950’s credit cards were non-existent. People could only buy things from savings. Fast forward to the 80’s and 90’s everything changed. The availability of credit and buying things ‘on time’ exploded with easy credit and with most women working, so two incomes instead of one. Look honey we can now afford a bigger home, a cottage, more vacations and a brand new car every four years…lol.

We are encouraged at every turn to consume, consume, consume because it’s good for the economy AND THE BIG BANKS who continue to amass record profits, largely at the expense of consumers who find themselves unable to pay off high interest credit cards, loans and lines of credit, the latter which is the more recent vehicle to dupe us into more debt.

Did you know that Financial Problems are now the number one reason, ahead of infidelity, for divorce. Yes it’s true!

You are a good person, you are honest and you work hard but you can’t make ends meet. If you are at the financial brink or feeling you are about to crash, please do not despair.

There is a total answer that we will reveal in next week’s article. It is not Debt Consolidation or Credit Repair either. It will surprise you how simple it can be by using our new amazing five step ‘Debt Proof’ program to eliminate all debt from your life, maximize your cash flow and achieve the financial freedom and independence you deserve.

Please stay tuned!!!

WEEK OF OCTOBER ‘10TH/14 ‘MERCURY’ARTICLE

DO YOU REMEMBER THIS OLD TV INTRO ? “IT’S A BIRD, IT’S A PLANE…IT’S SUPERMAN!”

HI IT’S RON FROM ‘PRICETEAMMORTGAGES.CA’ DOMINION LENDING CENTRES, WOOLWICH STREET

WELL, I’M NO SUPERMAN…Chuckle BUT I DO HAVE SOME CRYPTANITE FOR YOU THAT WILL HELP YOU CONQUER THE WAR ON DEBT

INTRODUCING OUR ‘DEBTPROOF.CA’ DEBT ELIMINATION PROGRAM, THAT YOU CAN MAKE YOUR LIFE ‘SOAR’ TO HEIGHTS YOU NEVER DREAMED POSSIBLE

IT’S AMAZING, IT’S REAL AND IT’S GONNA CHANGE YOUR LIFE.

VISIT ‘DEBTPROOF.CA’ TODAY AND MAKE THE CALL.

YOU’LL BE SO GLAD YOU DID!!!