Son Of A Broker » Uncategorized

Toronto’s Own

chris — Tue, 18 May 2010 15:27:40 +0000

My colleague Mark Savel is an interesting guy. Ask him what he does and he will say “real estate”. Ask him who he is and he’ll respond “Toronto’s own”. Mark loves our fair city of Toronto. His blog is not only an original source of freshly released information about Toronto’s newest and hottest real estate developments, it’s also a place where he shares his passion for the urban. Recently he covered the Banksy phenomenon in Toronto. In other posts he helps promote local community events and fundraisers. Mark also shows us the city through his eyes with the posting of a daily photo on his Posterous.com site.

Aside from all the contributions he makes to the online community through his participation in blogs, twitter, daily photos and event listings he is a value providing real estate agent who knows the city and puts the same amount of passion and detail into working with his clients. If you are thinking down town condo. Think “Toronto’s Own” Mark Savel.

Click here to view the embedded video.

Understand Your Credit Score

chris — Thu, 13 May 2010 16:17:51 +0000

If you are applying for a mortgage or any other type of credit, a lender will always want to see your credit score. Having a strong credit score is so important to a mortgage application. When I sit down with clients and it comes to checking credit, there is often a sense of uneasiness because people simply don’t understand what is contained in a credit report. Here is a little breakdown to help you understand what a credit bureau is.

In Canada there are two major credit reporting agencies, Equifax and TransUnion. It is their role to gather a financial history about you that includes information about your credit and bank accounts, public records that reveal bankruptcies or court judgments, and any debt that went to a collection agency.

This information is used to generate a score between 300 and 900 which lenders then use to determine whether or not to extend credit to you. The higher your score the lower your risk.

Its a good idea to check your credit score at least once a year to ensure that your information is correct because mistakes do happen and it can be difficult to have them corrected. You can visit Equifax.ca or TransUnion.ca to learn more. If you are thinking of applying for a mortgage in the next 12 months and you are concerned about your credit score give me a call to discuss and we can look at your credit together to determine how to improve your score.

Maximize the Benefits of Your Credit Card

chris — Thu, 06 May 2010 16:15:42 +0000

One of the keys to successfully qualifying for a mortgage or any other type of credit is learning how to use your credit card. Credit cards can be a very useful tool when used properly but unfortunately credit cards don’t come with instructions.

When I work with first time home buyers the most common blunder that I see is someone who got a credit card when they were in University or College went out on a shopping spree then remembered that they didn’t have any income to pay for it all and defaulted on the card. The sins of yesterday always have a way of coming back to haunt you and that little mistake 10 years ago can make it very difficult for you to get financing. Here are some simple tips on how to use your credit card to maximize its benefits:

Limit your number of cards. It’s easier to keep track of expenses, and reduces the chance of a missed payment.

Transfer credit card debt. It’s a good idea to always pay your credit cards in full each month. If you are carrying a balance, a personal line of credit offers a much better interest rate.

Don’t spend what you don’t have. Use the convenience of a credit card only knowing the money is in the bank.

Be diligent with payments. Never pay the minimum only. Your original purchase could end up costing you twice as much.

Avoid missed or late payments. You could incur additional fees and a black mark on your credit rating.

What is CMHC Mortgage Insurance Good For?

chris — Thu, 29 Apr 2010 20:22:54 +0000

I have observed recently that both first time home buyers and seasoned owners alike struggle to understand CMHC insurance. From a borrower’s perspective the insurance premium paid up front for the benefit of a mortgage lender seems heavy handed and unfair. However, without CMHC you wouldn’t be able to buy or refinance your homes unless you had 20%, or more for the down payment. Even if a lender would entertain financing, without insurance, a mortgage lender would make you pay for their exposed risk through much higher interest rates.

Let’s just review why and what mortgage insurance is?

In Canada, it’s because of CMHC that lenders are willing to lend to borrowers who buy without large down payments. In the not to distant past (CMHC history), Canadian homebuyers had to purchase with much larger down payments. This is still the reality in many other countries today where there is no insurance available. Home buyers need to purchase with a 25% to sometimes 50% down payment making home ownership difficult.

CMHC insurance is a one time premium that is added up front to your required mortgage amount (you do not have to pay for it out of pocket) and insures the lender if default occurs. Although it seems like real estate is a forever increasing asset this is not always true. Markets can turn very quickly, as we recently saw in the U.S.. After legal fees, real estate fees and market corrections a lender can easily lose money if there is not enough equity or down payment.

The insurance premium is determined by a table depending on how much downpayment you bring to the purchase. You can find the rates here.

5% down- 2.75% premium

10% down – 2.00% premium

15% down -1.75% premium

In addition, there’s a 0.2% premium that is added for each additional 5 years of amortization above the traditional 25 year amortization. You should also be aware that included in your closing costs there is PST at 8% on the insurance premium.

It does seem a little discouraging and frustrating to have to pay this premium on top of all the other fees that you incur as a homebuyer. However, it serves a very important purpose to keep the mortgage interest rate low and give you the opportunity to own a home with less than 20% down. The couple thousand dollars that gets added on top of the mortgage makes a difference of about $20 each monthly payment. In retrospect it is a small price to pay for the satisfaction and pride of owning your own home.

So, there’s a snapshot on the CMHC insurance. Of course, every situation is different and requires a full analysis. If you have any questions, please feel free to contact me. I’d be happy to hear from you.

Chris Molder – Toronto mortgage broker
416.461.0204
chris@tridacmortgages.com

Four Years. Go.

chris — Wed, 21 Apr 2010 02:42:28 +0000

This past weekend the Mortgage Broker (Arnold Molder) took his son (Christopher Molder) to Boston to attend The Global Sufficiency Summit. It was truly an eye opening and unforgettable experience which I will be blogging and talking more about over the coming weeks and months. There is so much that we would like to share about the concept of sufficiency and how it relates to personal finance and mortgage financing.

At the conference we were introduced to the “FOUR YEARS. GO.” campaign. FOUR YEARS. GO. is a global communication and awareness campaign to energize a worldwide movement of imagination, enthusiasm and action to shift humanity to a sustainable, just and fulfilling path by 2014. Individuals, organizations and businesses are coming together under this campaign to make a pledge to achieve by 2014. Stay tuned for our pledge here at Tridac -The Mortgage Centre. If you are learning about the campaign for the first time, I invite you to visit www.fouryearsgo.org for more information.

Click here to view the embedded video.

Watch the S.O.B hangloose- Sailing in Toronto Inner Harbour

chris — Fri, 09 Apr 2010 15:32:24 +0000

We all need to release somehow. When I find I have too many interest rates, bond yields, Bank of Canada economic reports, lender policy and guidelines on my mind there is nothing better than a sail. This year the sailing season couldn’t start soon enough as I spent the Easter weekend zipping around Toronto Island on my pal Ed Young’s Formula 18 catamaran. The F18 Nacra is a one of a kind multihull boat built for performance and racing but easy and fun to sail. Check out the video of us hanging from the trapeze, flying a hull.

Click here to view the embedded video.

Mortgage Interest Rates for March 15th

chris — Mon, 15 Mar 2010 12:53:53 +0000

Bond yields are up which would typically result in an increase to fixed rate mortgages however lenders are artificially keeping rates low in order to gain market share. This is good for borrowers currently in the market however don’t expect the low fixed rates to stay around forever as it only takes one bank to break the deadlock and we could see rates jump up by 0.50%. To secure a low rate give me a call or e-mail me for a quick consultation.

Chris Molder – Son Of A Broker

1 year fixed – 2.65%

3 year fixed – 3.35%

5 year fixed – 3.79%

3 year variable – Prime-.40% (1.85% effective rate)

5 year variable – Prime-.30% (1.95% effective rate)

RATE SPECIALS

5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Toronto Mortgage Interest Rates March 1st 2010

chris — Tue, 02 Mar 2010 02:50:39 +0000

To start the month, there is a new variable rate mortgage! I can now offer Prime minus 40 (1.85%) on 3 year variable mortgages. It was also announced after I recorded my video, that the 5 year fixed rate special that I was offering at 3.69% has been extended for closings up until April 26th. Tomorrow, March 2nd, the Bank of Canada will be making their announcement on the prime rate. They are widely expected to leave the rate unchanged. If you are looking to be approved for a mortgage or have questions about your existing mortgage, get in touch with me.

Christopher Molder - Son Of A Broker

1 year fixed – 2.65%

3 year fixed – 3.50%

5 year fixed – 3.79%

3 year variable – Prime-.40% (1.85% effective rate)

5 year variable – Prime-.30% (1.95% effective rate)

RATE SPECIALS

5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Mortgage Reforms Announced This Week

chris — Thu, 18 Feb 2010 23:35:23 +0000

This week Jim Flaherty and his Federal Department of Finance announced some important reforms to the rules governing mortgage qualification. See my reaction in the video below.

Click here to view the embedded video.

Toronto Works For Haiti – Mortgage Services

chris — Thu, 04 Feb 2010 14:18:38 +0000

I have joined a group of Toronto volunteers who have committed themselves to offering their professional services in exchange for donations to the Haiti relief effort. www.TorontoWorksForHaiti.com Our group includes professionals and entrepreneurs offering a wide range of services all the way from Artists, to Japanese translation services, to Style Consultants and Social Media services.

Click here to view the embedded video.

I personal am committed to donating $200 from every mortgage that I arrange under this initiative to our goal of raising $5,000 by March 18th, 2010. Irrespective of the size or type of mortgage. Although a month has almost passed since the devastating earth quake in Haiti, and the main stream media has moved on to other stories, Haitians are still with out food and water and much needed assistance.

If you are in need of mortgage financing over the next 60 days, please consider our cause and help me help those in Haiti. As a Toronto mortgage broker my service will not cost you, I don’t serve the interest of any bank, I only serve the interest of my clients and of course I will be able to offer you the most competitive rates in the market today.

Please e-mail me or fill out a secure online mortgage application to get started.

Thank you for your consideration.

Chris Molder – Son Of A Broker