Miss Mortgage

Best Variable Rate

Variable rate at *Prime Rate minus 0.90% is available now.    Call me to reserve this rate.

This blog post was written by Elizabeth Blair on August 8, 2011.

Elizabeth Blair is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.   Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit her website at: www.missmortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Agent Lic # M08005880

Brokerage Lic # 10680

Head office is located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

*rate is available to those applicants who are approved and qualify with lender offering this rate.

 

 

 

I found this incredible Mortgage Rate!

If you are shopping around for mortgage rates on the internet and notice some huge discrepancies on available “best rates”……beware. 

A recent inquiry came from an individual who came across a mortgage brokerage advertising a 1 year fixed rate at 2.29%.   I searched through my rate sheet, as well as other rate sheets I use to compare mortgage rates only to find that there really was no lender offering this rate nor was there any particular mortgage rate special being offered in the mortgage brokerage community.

Why would a mortgage brokerage advertise a rate that is really not available?  The reason is plain and simple.  Companies will sometimes do what it takes to make the phone ring and once they have you really interested in that offer, they might just get your business.  Most mortgage brokerages who are guilty of this practice know exactly what they are doing.  Follow me on an example of how this would be played out…...  Once the mortgage brokerage receives a mortgage inquiry that leads to a mortgage application and a corresponding credit check, and receive all the relevant paperwork from the applicant, job letters, pay stubs, a notice of assessment, etc, the applicant is usually then encouraged to “avoid shopping around for a mortgage, as shopping around could negatively affect their credit score”.  At this point, the applicant has fulfilled all of the lender’s requirements to get this “super great advertised mortgage rate” quoted on the website.   But the bad news now comes out…….”oh so sorry, that mortgage rate, you saw, is no longer available as the lender has just changed their rate”.  How can the applicant prove otherwise?  After all, they do not have access to lender rate sheets, that the brokerage has, and there is always that small footnote, at the bottom of the website that you did not see…...”mortgage rates are subject to change without notice”.    An applicant who has already invested much time and effort, may just go ahead with the application resenting the thought of going through all of this painful application process again (and this is exactly what steps the brokerage planned to take you through when they advertised that mortgage rate that they knew really did not exist). 

The practice of advertising a product (or a mortgage rate) that really is not available to the consumer is considered a “Bait and Switch” tactic.  The practice of using Bait and Switch is forbidden by the “Canadian Code of Advertising Standards”.  The advertising standards document can be viewed at this link:

http://www.adstandards.com/en/standards/canCodeOfAdStandards.pdf

What can you do to really ensure you are not being deceived by some “amazing rate” that you find that seems too good to be true?  Research it and check it out against some other reliable sources like:

1.   https://www.cannex.com/canada/english/

2.  http://www.financialpost.com/personal-finance/rates/mortgage-closed.html

If you see no other brokerage that is even close to this advertised rate, that is probably a good indication that the rate you see on the website is set up to lure you in.

What can you do, if you think you have found misleading advertising?    You should take the time to file a complaint.   You can find the information and complaint process under the Competition Bureau website:

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02776.html

 

This article written by Elizabeth Blair on May 17, 2010.  Elizabeth is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.  Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit any of her websites at:

www.missmortgage.ca

www.burlington-mortgage.ca

www.oakville-mortgage.com

www.streetsville-mortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Lic # M08005880 / Brokerage Lic # 10680

Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

 

 

Canadian Household Debt

Canadian household debt is on the rise and as the world economy continues to slip, the state of Canadian household finances are revealing some very sobering statistics: 

The Vanier Institute has just released a look at the family finances of Canadians.  

Here are some highlights extracted from the 2011 report:

-       Average household debt climbed to a record $100,000 per family in 2009;

-     The debt-to- income ratio, which measures household debt against income, stands at a record 150%, meaning that for every thousand dollars in after- tax income, Canadian families owe one thousand five hundred dollars;

-     The number of households which have fallen behind in their mortgage payments by three of or more months climbed to 17,400 in the fall of 2010, up nearly 50% since the recession began.  In October 2010, some 17,400 mortgages were in arrears by three or more months.

-     Credit card delinquency and bankruptcy rates also remained higher than pre-recessionary levels.

-     In November 2010, the Multiple Listing Service (MLS) average residential selling price was $344,000, equal to 5.1 times the average household disposable income. This compares to an average of 3.7 times over the last two decades, and only 3.9 times as recently as 2004.  The increase in housing prices was mostly due to record low interest rates, lower down payment requirements, and longer amortization periods over which to pay back the mortgage. This created increased demand for homes among consumers and has contributed to the makings of a housing price bubble.  The conditions are still in place for a correction in house prices; when and by how much is the difficult question.  The “when” seems to be getting closer and closer or may have already arrived. Over time, the price decline could easily be in the double digit range. US house prices have fallen by more than one-quarter since 2006. Falling house prices may be good news for new home buyers but will erode the assets and balance sheets of many Canadian homeowners.

A copy of the Vanier Institute report (dated February 2011) can be accessed at the following link:

 http://www.vifamily.ca/media/node/783/attachments/familyfinance2010.pdf

This blog was posted by Elizabeth Blair on March 13, 2011.  Elizabeth is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.  Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit any of her websites at:

www.missmortgage.ca

www.burlington-mortgage.ca

www.oakville-mortgage.com

www.streetsville-mortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Lic # M08005880 / Brokerage Lic # 10680

Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

 

 

A new cash-back incentive for home buyers

Last night, my husband and I sat down and filled out paperwork to get our house listed on MLS.   As the decision to sell our house has been on the horizon for the past month, I have been following (…like a cat follows a mouse) developing changes to CREA rules and consumer access to the MLS.   

We were happy to discover, that on October 24, 2010, a challenge with CREA, spearheaded by Lawrence Dale, a Toronto Lawyer, resulted in a huge victory for home owners allowing them to pick and choose the realty services they want or don’t want.  These changes came, just at the right time for us, especially since we wanted to save on real estate commission costs but still wanted our home listed on the MLS system.

The completed paperwork went in, last night, to Realtysellers Real Estate Inc. (http://realtysellersrealestate.com/).  So our home should be listed on MLS today.  We know that the presence on MLS will increase the traffic through our home.  We also realize, that selling our home privately, will take some creative and active participation on our part, although we have already determined that we are willing to do the work necessary to save our money.   

After reading through all of the paperwork from Realtysellers, I was really delighted to discover just how creative their business model is.  Not only will they place my home on MLS at no charge, BUT they will also offer a cash-back incentive to the home buyer who finds one of Realtyseller’s registered home listings and buy it.    

Realtysellers has developed a business model that attracts both sides of the Real Estate transaction:   Sellers (people like me) and buyers too.  

Sellers get a free MLS listing and the option to choose how much commission they wish to pay to the realtor who brings in the buyer.  The seller can also determine how much additional service they want from Realtysellers, or do not want.

Buyers who buy a Realtyseller listed home, using Realtyseller’s registered realtors, get a cash-back incentive.

There is no doubt that buyers need a huge amount of savings, or available home equity to cover the costs associated with buying a home.  Here is a breakdown of how funds are divided up on a typical home purchase:

1. minimum of 5% of purchase price to buy a home (minimum of 20% of purchase price to buy a rental property);

2.  Ontario municipal land transfer tax (plus Toronto municipal land transfer tax if buy a property in Toronto);

3.  8% PST paid on your mortgage insurance amount (if your down payment is less than 20%);

4.  appraisal cost;

5.  insurance coverage;

6.  home inspection fee;

7.  GST if you are buying a newly constructed home under $400,000 and GST and PST if you purchase a home over $400,000;

8.  legal and disbursement fees;

9.  closing adjustmensts;

10.  title insurance;

11.  possibly interest adjustment;

12.  estoppel certificate.

Here is how this cash-back incentive works:   If a buyer, purchases a home that is listed on the MLS system with any real estate broker, using a Realtyseller’s Realtor, that buyer will receive cash back, paid out by the Brokerage, immediately after the Brokerage has received their commission amount, from the Seller’s agent.  The cash back paid out is a percentage of what the Seller paid as the agreed upon commission to the Brokerage.

While the free listing on MLS will certainly be a driver of business (which seems to be what everyone is talking about now....), Realtyseller’s cash-back incentive to buyers is the next big wave, which I believe, will sweep through the industry.   This option, like the free MLS listing, will also certainly generate huge interest in Realtysellers, once buyers (who are not already under contract!) find out that this cash-back option is now available to them.

This blog post was written by Elizabeth Blair on November 3, 2010.  Elizabeth is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.  Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit any of her websites at:

www.missmortgage.ca

www.burlington-mortgage.ca

www.oakville-mortgage.com

www.streetsville-mortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Lic # M08005880 / Brokerage Lic # 10680

Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

 

 

 

$7.5 Billion in fees

Did you know that approximately $7.5 Billion dollars was paid out, by Canadians, in 2009, for real estate fees? ….this amount quoted by Melanie Aitken, a lawyer serving as Canada’s Competition Commissioner.    

My husband and I have listed our home for sale.  We have decided to sell privately as we just cannot afford to pay real estate fees (full real estate fees are approximately 5%).  My phone continues to ring, all day long, with prospecting realtors looking to help me sell my house.  Each caller (even some who have read straight from a script) have allowed me a chance to have some lively discussion with them, especially regarding the changes underway.

The Canadian Real Estate Association (CREA) was recently challenged over its MLS (Multiple Listing Service) and its rules.  Brokerages will now be required to change its rules allowing Canadians more options if they decide to work with realtors when selling their home.    The timing could not have been better for us.

We have been pondering the idea of listing our home on MLS only because we know that the majority of buyers out there, are looking for homes on MLS.  We would be silly to think we could sell our home without a presence on MLS.  So our savings are 2.5%.

Although the Commissioner of Competition may have won a victory on paper, there will likely be a huge undercurrent of resistance, from realtors, to these changes.  Here is a good example of how this might be played out against us as private home sellers….

One realtor called me this morning, at 9 am, to be exact.   He found my advertisement in the Mississauga News.  We paid for a small ad, to advertise our open house, this past Saturday.  Without my 2^nd cup of coffee, the discussion had me just a little angry when he asked if he could be “honest with me”.  Of course, I agreed to let him share his thoughts.

He said…..  “You know, if you put your house on MLS using a flat fee service, realtors will not bring their buyers to your home .”     

“Why not?”, I asked, “….even if I agree to pay a commission to a realtor bringing me the buyer??”  

He said…..“The truth is, realtors will do whatever they can to keep their buyers away from private sellers, because you are going against our industry.”

I suppose there is no way to prove that a realtor “kept a buyer away from my property”, but I will remind anyone who tells me this that this action is illegal, and if proven, could lead to penalties/fines.

I read a very interesting article, this morning, and I am very impressed with this company’s marketing strategy.   They will list your property on MLS for FREE.  If they find the buyer for me, they will actually give some of that commission I paid, back to the buyer…..(that is, of course, part of the 2.5% I paid out).  What a brilliant idea and a way of drawing a buyer to your agency (and maybe some realtors looking for a new brokerage too!).

I do commend Mr. Lawrence Dale for taking on the CREA battle and paving the way for great changes in the real estate industry. 

You can view the article by clicking on this link below - published in the Financial Post, on October 27, 2010.

 

Download Article

Yes, my house is still for sale, but I have already had a great discussion with Mr. Allan Spivak, the Vice President and Broker of Record of Realtysellers Real Estate Inc.   Mr. Allan Spivak, promptly called me within 5 minutes of my email!   

Here is a link to the company website: 

http://realtysellersrealestate.com/

Realtysellers seems to have great service and are bringing much needed innovative ideas to a tired looking and expensive real estate industry.  I see a bright and shiny future for this company and who knows, I just might sign up to sell my house with them.

This blog post was written by Elizabeth Blair on October 28, 2010.  Elizabeth is a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.  Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.

You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.ca

or you visit any of her websites at:

www.missmortgage.ca

www.burlington-mortgage.ca

www.oakville-mortgage.com

www.streetsville-mortgage.ca

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca

Lic # M08005880 / Brokerage Lic # 10680

Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.