Son Of A Broker » The Danforth

Si Espresso Bar & An Offer I Could Refuse

chris — Fri, 27 Aug 2010 16:59:00 +0000

Last week I went to one of my favorite local coffee shops, Si Espresso Bar on Broadview at Danforth. My friend and owner Egidio (”Edge” for short) served me up one of his authentic Italian espresso shots to kick start my day as the warm morning sun shone through the large front windows and the sounds of the Danforth coming to life on a hot August morning drifted through the door.

As I was chatting with Edge about futbol and the after math of the World Cup, two suits walked in from the local bank branch one of which was the mortgage/investment/insurance/retirement/analyst specialist. Jack of many trades. The conversation naturally evolved into a chat about rates and business.

As we continued I realized that subtly he was selling me on switching banks. I began to acutely pay attention to what this gentleman was saying and offering.

The gist of his spiel was “switch to our bank and I’ll offer you a credit card with a $20,000 limit and x thousand travel reward miles and zero interest for the first 6 months.” For an instant his banter was appealing. Then, I snapped out of it and realized what he was actually offering. An opportunity and the temptation to put myself $20,000 in debt and enslave myself to the bank. Thanks but no thanks.

After politely declining his offer I went back to my office thinking of the irony. Canadians love and trust their banks, and in all fairness they have served our country well as we keep on getting reminded in the media when comparing Canada to our neighbours down south. However, on a personal finance level your banker isn’t there to help you attain financial freedom. That would be bad for bank business. They are there always dangling that carrot of more credit for a society that is addicted to credit as shown by our national saving rate.

I meet borrowers everyday who are over their heads with consumer debt. Take this as a caveat the next time your banker leans in a little closer and wants to make you a special offer.

Monday Mortgage Minute – Interest Rates July 5th 2010

chris — Tue, 06 Jul 2010 18:15:36 +0000

All signs are pointing to lower fixed rate mortgages again for the 3rd time this year. Bond yields are low and as a result we are seeing fixed rate mortgage prices dropping just a little bit further this week. The Bank of Canada has also dropped its benchmark qualifying rate for high ratio mortgages by 0.10%.

As a mortgage broker I get paid a steady finders fee from the lender. It doesn’t matter which lender we go to, the fees are similar so there is no incentive to take you to one lender over another. The only incentive I have is to give you honest open advice to make sure that you tell your friends and family about your positive experience. Send me a quick e-mail to get the ball rolling!

2.70% – 1 Year Fixed

3.49% – 3 Year Fixed

4.09% – 5 Year Fixed

3.13% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.65 3 Year Variable

P-.60 5 Year Variable

Prime Rate is currently 2.50%.

Bench Mark Qualifying rate is 5.89% (Used to qualify high ratio mortgages)

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

Click here to view the embedded video.

Mortgage Insight From The Foutainhead?

chris — Sun, 31 Jan 2010 00:41:46 +0000

I’ve recently picked up the classic novel The Foutainhead by Ayn Rand (1943). Reading it this afternoon I came across an unusually insightful quote by one of the lesser characters in the book; Kent Lansing.

“When facing society, the person most concerned, the person who is to do the most and contribute the most, has the least to say. It’s taken for granted that they have no voice and reasons they could offer are rejected in advance as prejudiced – since no speech is ever considered , but only the speaker. It’s so much easier to pass judgment on a person than on an idea. “

The context of the quote was to express how Lansing was going to sell his conservative board of directors on selecting the protagonist of the novel Howard Roark as the architect for their mega Manhattan hotel. Roark is a very risque, non traditional architect who is a rebel and individualist.

The quote got me thinking on how business decisions are made and specifically decisions to select a mortgage broker over the bank. Could it be that not everyone uses a mortgage broker over their bank because its easier to pass judgment on the individual rather than the idea of the bank as an institution? A good mortgage broker is better educated, has only your interest to serve, is highly specialized in his or her area, can offer better guidance, and the service doesn’t cost a borrower anything and yet approximately only 35% of mortgages in Canada are serviced by brokers.

Highly philosophical question for a mortgage blog! Especially for a Saturday… but feel free to add your 2 cents! If not at the very least add the Fountainhead to your to read list.

Toronto Interest Rates Have Changed For The Better!

chris — Thu, 14 Jan 2010 23:01:28 +0000

In a complete U-turn from the attitude and expectations of last week, one of our lender partners Merix Financial has announced a slew of competitive rate cuts. The mortgage interest rates have come down and I am happy to be able to offer you the following:

-Fixed 5 year 3.75% (for closings before Feb 23rd, 2010 only)**

-3 year variable rate Prime minus 0.30 (1.95% effective rate)**(must close within 30 days)

This will no doubt give the market legs and it will be interesting to see how the winter will play itself out. If you are in the market and would like to explore what options are available for you and if you qualify for these rates please feel free to contact me.

Chris Molder – Son Of A Broker

Licensed by the Financial Services Commission of Ontario under Lic#M08010066

**Rates are subject to change without notice and are subject to borrower’s qualifications.

Dough Bakery at 173 Danforth

chris — Fri, 04 Dec 2009 13:17:18 +0000

Its not always about boring interest rates and mortgage stuff! Meet my neighbours downstairs. Dough Bakery opened autumn 2009 and ever since then the smell of freshly baked bread has filled my office driving me crazy when I’m hungry. Co-owner Benita talks about the concept, the menu and their amazing refurbished authentic espresso machine.

Click here to view the embedded video.

Four Years. Go.