Angela Kroemer Mortgage Professional
1.250.650.4182
Showing posts with label lender. Show all posts
Showing posts with label lender. Show all posts
Friday, December 16, 2011
Interest Rates Dropping?
2011 has certainly been a silly year for Interest Rates.
Before it was the normal to get a varible rate now it is the normal to get a fixed rate.
Just when you think Bank of Canada will raise their rate , it stays the same.
And now, when everyone says the rates will be rising, I get a email to say, stay tuned because the rates will be dropping.
Will everyone drop their rates? I am not sure but I do have a Lender that says they will be dropping their rates.
So for now , it would be very beneficial for you to get on my contact list, so I can send you the Interest Rate updates.
Why pay more for your mortgage when you do not have to.
Email me or phone me to get on my interest rate contact list.
You can always go to my website and sign up there.
http://www.ComoxValleyMortgagesToday.com
Thank you
Angela Kroemer, AMP
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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