Angela Kroemer Mortgage Professional
1.250.650.4182
Showing posts with label clients. Show all posts
Showing posts with label clients. Show all posts
Tuesday, December 6, 2011
Busy Time of Year-- You Still Need to Switch Over Your Mortgage
Some say it is the busiest time of the year, getting ready for Christmas. Not too much time to do anything else.
Also, if you are like many with a mortgage either fixed or varible you have been reading that there are great sales on interest rates. You have been meaning to look into these rates but just have not had the time.
OR
You just saw your dream house and now is the time to buy.
Good news is here.
Phone up a mortgage broker. Also known as mortgage professonal and mortgage consultant.
Why?
A mortgage broker does all the work. They work with your schedule. The first consultation takes about 1 hour. Can be done over the phone, or you can ask the mortgage broker to email you an application and you can fill it out and send it back.
The next phase is any questions the mortgage broker has about your application. Probably 15 minutes.
The mortgage broker will let you know which documents that they will need and can pick up at your place of work,home, or you can fax or email them. 15 mins
Next, the mortgage broker sends in your application and documents. Gets back to you about any other documents the lenders are requesting. Probably another 15 mins.
You send your paperwork to the mortgage broker or the mortgage broker drops by your place of work or home and picks up paperwork. Maybe 15 mins for that transaction.
Mortgage broker sends in the paperwork. If all looks great, the mortgage broker will email or call you and let you know it is time to make an appointment with a Lawyer or Notary Public.
You make an appointment with a Lawyer or Notary Public to sign the final paperwork. That would be about 15-30 mins for that appointment.
You are done. All the work has been done for you and you have a mortgage with great rates. The time it takes you is less than 3 hours to save money on your mortgage.
Thank you
Angela Kroemer, AMP
Mortgage Professional
1.250.650.4182
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
Friday, October 21, 2011
Why Have Mortgage Brokers If We Have Banks?
The questions below are the questions I get asked most frequently about being a mortgage broker.
Why have mortgage brokers if we have banks?
Don't the banks do a great job on mortgages?
What is the difference between a bank and a mortgage broker?
I have always had my mortgage at a bank what can you do for me that is different?
Mortgage Brokers have been available to clients for over 30 years. It has changed and evolved in those years to become one the most economical, efficient, flexible way of getting a mortgage.
The History of The Mortgage Broker
When mortgage brokering started in Canada it was primarily for those who only had bad credit. The mortgage broker was able to secure a lender for the mortgage at higher interest rates because of the risks involved with dealing with clients that had bad credit. The Banks would not lend to these clients.
About 20 years ago if someone said that they went through their broker for a mortgage it would be the tell tale sign that they had bad credit. So it was normal to associate mortgage brokers with bad credit.
Fast forward to 2011.
Mortgage Brokers Are Now For Everyone.
Many changes have taken place in the broker channel (network).
The growth of Canada spurred the need for more housing which meant more mortgages. The Banks primarily were the ones lending money for mortgages but without too much competition they could name their rates, policies and the Canadian client was at their mercy.
A basic understanding of what a Lender is:
The term "Lender" means the Lender is a Business that lends money to clients through mortgage brokers. They use mortgage brokers as their sales force, paying the mortgage broker a finders' fee, thus reducing their overhead, allowing for lower interest rates.
The federal government regulates these Lenders the same way they regulate the Banks. Which in Canada is very strict and structured.
As the demand for mortgages grew the Lenders saw the need for improved programs and more choices for the clients that wanted a mortgage. That was the start of what is known as “today's mortgage broker” . With the competition of the Banks and Lenders , the Canadian consumer has a choice like no other choice in history for their mortgage needs.
While the Banks are still pretty rigid on whom they deal with, the Lenders on the other hand have programs in place that just about cover everything imaginable in the world of mortgages. With the Lenders, the better the credit rating and stability of the client the lower the interest rate is charged. Thinking outside the box is one of the great qualities of these Lenders.
Why would a client choose a Mortgage Broker instead of a Bank?
more programs to choose from so the mortgage is tailored to you
fast approvals
usually lower interest rates
flexibility
constant evolving programs to suit you and your needs
peace of mind
mobile service
efficient handling of the mortgage
the choice in not dealing with a loan officer in a bank
over 50 lenders to choose from
friendly and informative advice
we want you to get your mortgage and will work very hard to facilitate that
Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
1.250.650.4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
Why have mortgage brokers if we have banks?
Don't the banks do a great job on mortgages?
What is the difference between a bank and a mortgage broker?
I have always had my mortgage at a bank what can you do for me that is different?
Mortgage Brokers have been available to clients for over 30 years. It has changed and evolved in those years to become one the most economical, efficient, flexible way of getting a mortgage.
The History of The Mortgage Broker
When mortgage brokering started in Canada it was primarily for those who only had bad credit. The mortgage broker was able to secure a lender for the mortgage at higher interest rates because of the risks involved with dealing with clients that had bad credit. The Banks would not lend to these clients.
About 20 years ago if someone said that they went through their broker for a mortgage it would be the tell tale sign that they had bad credit. So it was normal to associate mortgage brokers with bad credit.
Fast forward to 2011.
Mortgage Brokers Are Now For Everyone.
Many changes have taken place in the broker channel (network).
The growth of Canada spurred the need for more housing which meant more mortgages. The Banks primarily were the ones lending money for mortgages but without too much competition they could name their rates, policies and the Canadian client was at their mercy.
A basic understanding of what a Lender is:
The term "Lender" means the Lender is a Business that lends money to clients through mortgage brokers. They use mortgage brokers as their sales force, paying the mortgage broker a finders' fee, thus reducing their overhead, allowing for lower interest rates.
The federal government regulates these Lenders the same way they regulate the Banks. Which in Canada is very strict and structured.
As the demand for mortgages grew the Lenders saw the need for improved programs and more choices for the clients that wanted a mortgage. That was the start of what is known as “today's mortgage broker” . With the competition of the Banks and Lenders , the Canadian consumer has a choice like no other choice in history for their mortgage needs.
While the Banks are still pretty rigid on whom they deal with, the Lenders on the other hand have programs in place that just about cover everything imaginable in the world of mortgages. With the Lenders, the better the credit rating and stability of the client the lower the interest rate is charged. Thinking outside the box is one of the great qualities of these Lenders.
Why would a client choose a Mortgage Broker instead of a Bank?
more programs to choose from so the mortgage is tailored to you
fast approvals
usually lower interest rates
flexibility
constant evolving programs to suit you and your needs
peace of mind
mobile service
efficient handling of the mortgage
the choice in not dealing with a loan officer in a bank
over 50 lenders to choose from
friendly and informative advice
we want you to get your mortgage and will work very hard to facilitate that
Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
1.250.650.4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
Monday, October 3, 2011
Fixed Rate or Variable Rate......has the choice become easier?
September 29th 2011
The age old question facing consumers, do I take a fixed rate or variable rate......and a similar dilemma facing mortgage brokers as their clients ask them for advice on which option to take. We all know it depends on the client’s appetite for risk, affordability, cash flow stability, etc. however statistics have shown that taking a short term or variable rate has predominantly, but not always, been cheaper than take a longer fixed rate mortgage.
We maybe in or coming to an interest rate environment when taking a fixed rate or a hybrid mortgage (50/50) may actually be cheaper than staying in a variable rate. Why you ask.....let’s look at the facts as to why this maybe a good time to take a fixed rate or hybrid mortgage.
1. 5 year fixed rates are at the lowest levels in history, we have never been this low.....3.39% are available through many lenders and 2.99% for a 4 year is very attractive.
2. The gap between a prime - 0.40% (2.60%) and 5 year fixed rate (3.39%) is 0.79% and (in some cases even lower), this is down significantly from 3 to 4 months ago when the gap between a 5 year ARM and 5 year fixed rate was as high as 2.00%. If we consider a 4 year fixed rate at 2.99% versus ARM of 2.60% the gap is only 0.49% or two quarter point increases in prime.
3. You can’t predict when to time a conversion from ARM to Fixed rate, especially in a volatile market. Fixed rates have a tendency to move ahead of variable rates....when variable rates begin to rise the fixed rate has already gone up and if you convert you maybe converting at a much higher fixed rate than today’s rates.
No position is complete without looking at the counter arguments’, in other words why a client should consider a variable rate versus fixed rate mortgage. Once again let’s look at the facts.
1. Bank of Canada has indicated it is not looking at raising the overnight anytime soon or at least will hold off until such time as it sees the economy improving
2. There is no indication that inflation is increasing, therefore supports point 1 above.
3. U.S. has no plans to increase rates for the next two years making it more difficult for Canada to raise rates unless the Canadian economy is growing in spite of the U.S. being sluggish
4. Canada is becoming a safe haven for investors’ thus larger demand for Canadian bonds. This demand is keeping bond yields down thus lower fixed rates on mortgages.
Both positions have merit and no one has a crystal ball, however, if we continue to see the gap between fixed rate and ARM rates shrink then the risks of taking a variable rate versus fixed rate increases substantially. The risk being that ARM rates could increase higher than .79% % over the next 18 months to 24 months, therefore over the course of a 5 year term the fixed rate may actually be less costly than the ARM rate. If the gap between ARM and fixed gets is 1% or less, I believe the smart money would go to fixed rate versus ARM. If the gap between ARM rate and fixed rate is between 1% and 1.50% then a 50/50 mortgage maybe the best bet. If the gap between ARM and fixed rate is in the 1.50% to 2.00% range then ARM rate maybe the way to go. Based on the present volatile market conditions it is hard to predict or say what will happen, this volatility, is the biggest wild card and probably the main reason I personally would be taking a fixed rate or 50/50 versus an ARM, a bird in the hand (fixed rate) is better than two in the bush (ARM rate).
John Bordignon
EVP, Strategic Development, Paradigm Quest Inc.
Office: (416) 366-8606 ext 2294
Thank you
Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
The age old question facing consumers, do I take a fixed rate or variable rate......and a similar dilemma facing mortgage brokers as their clients ask them for advice on which option to take. We all know it depends on the client’s appetite for risk, affordability, cash flow stability, etc. however statistics have shown that taking a short term or variable rate has predominantly, but not always, been cheaper than take a longer fixed rate mortgage.
We maybe in or coming to an interest rate environment when taking a fixed rate or a hybrid mortgage (50/50) may actually be cheaper than staying in a variable rate. Why you ask.....let’s look at the facts as to why this maybe a good time to take a fixed rate or hybrid mortgage.
1. 5 year fixed rates are at the lowest levels in history, we have never been this low.....3.39% are available through many lenders and 2.99% for a 4 year is very attractive.
2. The gap between a prime - 0.40% (2.60%) and 5 year fixed rate (3.39%) is 0.79% and (in some cases even lower), this is down significantly from 3 to 4 months ago when the gap between a 5 year ARM and 5 year fixed rate was as high as 2.00%. If we consider a 4 year fixed rate at 2.99% versus ARM of 2.60% the gap is only 0.49% or two quarter point increases in prime.
3. You can’t predict when to time a conversion from ARM to Fixed rate, especially in a volatile market. Fixed rates have a tendency to move ahead of variable rates....when variable rates begin to rise the fixed rate has already gone up and if you convert you maybe converting at a much higher fixed rate than today’s rates.
No position is complete without looking at the counter arguments’, in other words why a client should consider a variable rate versus fixed rate mortgage. Once again let’s look at the facts.
1. Bank of Canada has indicated it is not looking at raising the overnight anytime soon or at least will hold off until such time as it sees the economy improving
2. There is no indication that inflation is increasing, therefore supports point 1 above.
3. U.S. has no plans to increase rates for the next two years making it more difficult for Canada to raise rates unless the Canadian economy is growing in spite of the U.S. being sluggish
4. Canada is becoming a safe haven for investors’ thus larger demand for Canadian bonds. This demand is keeping bond yields down thus lower fixed rates on mortgages.
Both positions have merit and no one has a crystal ball, however, if we continue to see the gap between fixed rate and ARM rates shrink then the risks of taking a variable rate versus fixed rate increases substantially. The risk being that ARM rates could increase higher than .79% % over the next 18 months to 24 months, therefore over the course of a 5 year term the fixed rate may actually be less costly than the ARM rate. If the gap between ARM and fixed gets is 1% or less, I believe the smart money would go to fixed rate versus ARM. If the gap between ARM rate and fixed rate is between 1% and 1.50% then a 50/50 mortgage maybe the best bet. If the gap between ARM and fixed rate is in the 1.50% to 2.00% range then ARM rate maybe the way to go. Based on the present volatile market conditions it is hard to predict or say what will happen, this volatility, is the biggest wild card and probably the main reason I personally would be taking a fixed rate or 50/50 versus an ARM, a bird in the hand (fixed rate) is better than two in the bush (ARM rate).
| Fixed Rate to ARM Gap * | Primary Product Selection |
| less than 1.00% | 5 year fixed rate |
| 1.00% to 1.50% | 50/50 |
| 1.51% or higher | 5 Year ARM |
| * difference in rate between a 5 year fixed rate and 5 year ARM rate |
EVP, Strategic Development, Paradigm Quest Inc.
Office: (416) 366-8606 ext 2294
Thank you
Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
Saturday, October 1, 2011
Mortgage Brokers and The Lenders
As mortgage brokers we usually belong to a big firm. Mine is The Mortgage Group Canada Inc. This big firm secures Lenders. We as brokers have a list of lenders we can choose from.
What are Lenders ?
With TMG we have over 50 Lenders to choose from. These Lenders quite simply lend money for mortgages. The Lenders are well established, money lending businesses, with some being banks.
Since these Lenders do not have to hire salespeople to create business, they can offer lower interest rates because of their lower overhead expenses. As brokers we are their sales force and in return we are paid a commission from the Lender. This service is free to clients. (Charges may apply for very bad credit).
How do we choose Lenders for our Clients ?
When a client fills out an application with all information of of what they have (assets), what they owe (liabilities) and what they have coming in (income) we then can get a credit rating with the clients approval. With this credit rating we see the history of the clients credit. The mortgage broker also needs to know their client and what the client wants out of their mortgage. Some like to pay the mortgage off fast, some believe it will go on for 30 years and are happy with lower payments. If you are retiring in 3 years but have a 5 year mortgage term can you afford the last 2 years of payments with only your retiring income? With the most popular mortgage term being 5 years the client and broker have to look beyond the day you get your mortgage but look into the future and see if any life changes will affect the mortgage.
Each Lender has their own programs and policies they operate under. When they post their interest rate they also post a paragraph of what type of clients they are looking for. For example you may not be considered for the Lender of the lowest interest rate if you only have income from self employment, they may see that as an extra risk or if you want to buy a rental property that may be an extra risk and so they would charge a little higher interest rate. If you want a 5 year fixed rate and the Lender only wants to do a 5 year variable then again you would not fit into their program. The reasons are varied from Lender to Lender.
When we have a clients history we go to the Lender that will be the greatest fit for the client. This is where a brokers knowledge of the different Lenders and their client is the key to making the clients experience fast, less stressful and efficient.
As a client it is best to let your broker know of any changes that you can foresee coming up in the next 5 year span of the term of your mortgage. A perfect example of this is :
You want a mortgage but you know that in 3 years your trust account will be released to you and you will pay off the mortgage then. If you and the broker have not discussed this then the broker may put you in a mortgage with no prepayments ---at the end of 3 years you will have penalties to pay out your mortgage. If your broker does know, then they would put you into a 3 year mortgage or a 5 year mortgage that would allow you to pay off your mortgage without penalties.
Any questions, contact me.
Thank you
Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.comoxvalleymortgagestoday.com
What are Lenders ?
With TMG we have over 50 Lenders to choose from. These Lenders quite simply lend money for mortgages. The Lenders are well established, money lending businesses, with some being banks.
Since these Lenders do not have to hire salespeople to create business, they can offer lower interest rates because of their lower overhead expenses. As brokers we are their sales force and in return we are paid a commission from the Lender. This service is free to clients. (Charges may apply for very bad credit).
How do we choose Lenders for our Clients ?
When a client fills out an application with all information of of what they have (assets), what they owe (liabilities) and what they have coming in (income) we then can get a credit rating with the clients approval. With this credit rating we see the history of the clients credit. The mortgage broker also needs to know their client and what the client wants out of their mortgage. Some like to pay the mortgage off fast, some believe it will go on for 30 years and are happy with lower payments. If you are retiring in 3 years but have a 5 year mortgage term can you afford the last 2 years of payments with only your retiring income? With the most popular mortgage term being 5 years the client and broker have to look beyond the day you get your mortgage but look into the future and see if any life changes will affect the mortgage.
Each Lender has their own programs and policies they operate under. When they post their interest rate they also post a paragraph of what type of clients they are looking for. For example you may not be considered for the Lender of the lowest interest rate if you only have income from self employment, they may see that as an extra risk or if you want to buy a rental property that may be an extra risk and so they would charge a little higher interest rate. If you want a 5 year fixed rate and the Lender only wants to do a 5 year variable then again you would not fit into their program. The reasons are varied from Lender to Lender.
When we have a clients history we go to the Lender that will be the greatest fit for the client. This is where a brokers knowledge of the different Lenders and their client is the key to making the clients experience fast, less stressful and efficient.
As a client it is best to let your broker know of any changes that you can foresee coming up in the next 5 year span of the term of your mortgage. A perfect example of this is :
You want a mortgage but you know that in 3 years your trust account will be released to you and you will pay off the mortgage then. If you and the broker have not discussed this then the broker may put you in a mortgage with no prepayments ---at the end of 3 years you will have penalties to pay out your mortgage. If your broker does know, then they would put you into a 3 year mortgage or a 5 year mortgage that would allow you to pay off your mortgage without penalties.
Any questions, contact me.
Thank you
Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.comoxvalleymortgagestoday.com
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