I haven’t talked much about my involvement with my local Business Improvement Area on The Danforth. In January 2011 I was elected by my fellow business counter parts on The Danforth to sit on the Board of Directors as Treasurer for the BIA and most recently I have also assumed the roll as Co-Chair. A Business Improvement Area (BIA) is an association of business people within a specified district who join together, with official approval of the City, in a self-help program aimed at stimulating local business. BIAs serve as an economic and social anchor for the surrounding neighbourhood and help to stabilize and add vitality to the local community.

As part of our role in the local community we have initiated a series of events called The Danforth Experience which are aimed at showing Toronto that there is more to The Danforth than the monolithic Taste Of The Danforth event held every August.  The next event is our exciting Holiday Cheer Event being held this Saturday, December the 3rd from 2pm-5:30pm. Our Holiday Cheer event is designed to encourage visitors to come to our area for an afternoon of holiday shopping, eating, and sampling wines in each of our participating businesses.  The Danforth BIA will sell Holiday Cheer passports for the low price of $5.00.  Each passport allows our guests to sample a variety of Churchill Cellars wines being offered at each location. Yours truly will be stationed at the passport booth so come say hello! The booth will be located under the canopy of the newly renovated historic Danforth Music Hall which is also opening its doors for the first time this Saturday.

Looking forward to seeing you all on the Danforth!

The $5.00 All Access ticket allows shoppers to enjoy a glass of holiday cheer and festive nibbles while wrapping up their gift lists at the following Danforth Experience Toast to the Holidays businesses:

La Di Da, 128 Danforth Ave.
The Danforth Music Hall, 147 Danforth Ave (special open house from 2pm to 3pm)
Dough Bakeshop, 173 Danforth Ave.
FRESH Floral Creations, 175 B Danforth Ave.
Factory Girl Restaurant, 193 Danforth Ave.
Fermentations, 201 Danforth Ave.
The Friendly Butcher, 207 Danforth Ave.
Parade, 261 Danforth Ave.
The Clay Room, 279 Danforth Ave.
Fab Baby Gear, 286 Danforth Ave.
Social Butterfly, 315 Danforth Ave.
The Second Cup, 355 Danforth Ave. – Specially for the Kids with Riverdale Share Concert carolers, hot chocolate samples and a visit with Santa.

An old man and a young boy were traveling through a village with their donkey. The boy rode on the donkey and the old man walked. As they went along they passed some people who remarked it was a shame that the old man was walking and the boy was riding.

The man and boy thought maybe the critics were right, so they changed positions.

Later, they passed some people that remarked, “What a shame, he makes that little boy walk.” They then decided they both would walk.

Soon they passed some more people who thought they were silly to walk when they had a decent donkey to ride. So, they both rode the donkey.

Now they passed some people that shamed them by saying, “How awful to put such a load on a poor donkey.”

The boy and the old man said they were probably right, so they decided to carry the donkey. As they crossed the bridge, they lost their grip on the animal and he fell into the river and drowned.

With a tear in his eye, watching his donkey being carried away by the current, the old man turned to the boy and said “Young boy, fools are the ones that listen to the world!”

While you might think that this story is about my father (the old man) and I, it’s not! In the story everyone had an opinion about how the donkey should be used, likewise, everyone has an opinion about mortgage financing and how best to go about it. Think of the conversation at the water cooler or the next neighborhood barbecue.

Over the years I have observed that most people think of mortgage financing as being very static. in reality, mortgage financing should be viewed as dynamic and fluid. The advice and guidance being offered should be the result of understanding current economic conditions, market timing and most importantly, personal circumstances.

For guidance about your mortgage give us a call. Christopher & Arnold Molder 416.461.0204ext2

As a Toronto mortgage broker it’s important for me to remember that there is mortgage jargon and terminology that my audience may not be familiar with. When I work with clients I try and make the experience as educational as possible and I always make an effort to step back and explain mortgage terms no matter how everyday and common they may seem.

I was recently asked what a conventional mortgage is?

A conventional mortgage is a mortgage where the loan amount doesn’t exceed 80% of the current market value of your home.  That means if you are purchasing, your downpayment is 20% or more and if you are refinancing your home you are not financing more than 80%.  A conventional mortgage is a mortgage that doesn’t need to be insured by CMHC or another Canadian mortgage insurer.

If your down payment is less than 20% or you are financing more than 80% of the value of your home then the mortgage is considered to be high ratio and requires mortgage insurance.

Check out my video where I explain it in further detail.

Click here to view the embedded video.

Click here to view the embedded video.

If we were to take a general macro view of  fixed mortgage rates in Canada one can say that when the markets (i.e. TSX, DOW etc) are strong there is upwards pressure on fixed rate mortgages and the opposite is also true so that when the markets are weak there is downwards pressure on fixed rate mortgages. Over the past couple of weeks we have seen a steady decline in investment markets and investor confidence which has resulted in the lowering of fixed rate mortgages. For the 3rd time this year lenders are offering fixed 5 year mortgages for less than 4%. Very interesting when you consider the headlines from just a few months ago warning of an immanent long term increase of mortgage interest rates and all the caveats from the banks to lock in rates.

My name is Christopher Molder and I am a Toronto mortgage broker dedicated to the financial sufficiency and independence of my clients. Call or write me to get started on your path to financial freedom from the banks.

2.70% – 1 Year Fixed

2.90% – 3 Year Fixed

3.89% – 5 Year Fixed (quick close Sept 30th)

2.87% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.70   3 Year Variable

P-.65   5 Year Variable

Prime Rate is currently 2.75%.

Bank of Canada Qualifying rate has dropped to 5.59%.

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

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.

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.

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.

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

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.

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.