Mortgage Lenders

http://MortgagesInVancouver.com
Man 1: As you are all aware, there have been multiple changes that have taken place in the mortgage financing business over the last couple of weeks, and most of it has taken place this Monday, thus the reason for this seminar. From my point of view, these are probably the most changes in a very short period of time since I’ve been brokering, which has been 15 years now. We hope that this presentation will give you a better understanding of the changes, so that you can modify your business plans accordingly, if necessary.
We’re going to get started, and I think first up will be Maury. So, Maury, take it away.
Maury: Can everybody hear me without this? I think so. Right. OK, so what the is going on? Well, hopefully today we’ll try and address this question.
Today, what we’re going to cover is a quick intro of just making sure that we understand the high ratio and conventional, because that’s going to have set up explaining the changes, and making sure you know when the changes apply and don’t.
There is a set of government mandated changes that we’re going to be going over. That will be followed by the insurers have some changes that they’ll be setting up for some of their programs, specifically self employed and rental programs. That’s pretty much going to wrap it up, and we’re going to have questions at the end, but also, as we’re going through to try and make sure we cover each topic and it’s clear, if you have a question, please ask it when you have it.
Starting out here: The high ratio and conventional. By definition, when a deal is defined as high ratio, whenever there’s less than 20 percent down payment going into the deal. This is the same definition at all banks. When there’s less than 20 percent, the deal has to be insured. It can be insured by any one of the insurance companies we have in Canada. CMHT is, by far, the largest one used, but Genworth is second and there is also AIG.
So, the bank typically decides. The bank usually develops a relationship with one or two of the insurance companies, and they typically choose were the deal will best fit at the insurance company, but they’re all pretty much the same. The fees are the same. It’s pretty much blind to the client, for all intents and purposes, but there are three in the for the Data bank.
Conventional is where there is more than 20 percent in the deal. So, just two broad categories of the deal: High ratio and conventional.
We wanted to set that up because the government mandated changes, these apply to all deals at all banks and all insurance companies when there’s less than 20 percent down. The first change is there’s a new maximum amount someone could refinance their property to. We’ll go over that more in a second here. The second change is to help the banks. The insurance companies are going to determine the amount someone can qualify for, the amount of the mortgage. This is changing. And then, the third change is there is a new minimum down payment requirement for a non owner occupied rental property.
There is one common misconception that is commonly asked about the changes, which is a new minimum down payment… If someone’s going to live on the property, there’s no change to this. So, if someone’s going to buy a house and they’re going to live in it, there’s change. They can still buy with as little as five percent down.
So, the first change, the maximum refinance amount… The limit now is 90 percent. So, if someone has a house. They’ve had it for a while. Maybe they’ve done rentals. They want to take equity out. They can now only go to 90 percent of the property’s value at the time that they want to do it. Before, it was 95 percent they could go up to.
This was put in place to address some problems we’ve seen in the States more than Canada, where the market took property values up. People were refinancing every year, and they weren’t really doing anything to the property but treating their house like a bank account. It’s to discourage this. But, in Canada, this product was not really used. People were never really taking… They might have been refinancing, but they were never taking it up to the max, for the most part. 95 percent. A change, but probably something that won’t affect most people.

Duration : 0:10:0

(more…)

Technorati Tags: 2010, 2nd homes, april 2010, can I get a variable rate, down payment, fixed rate, interest rate, investment property, leah coss, morgage, mortgage broker, mortgage center, mortgage centre, mortgage qualification, new mortgage rules, new qualification rules, new rules, presentation, rental homes, variable rate

http://MortgagesInVancouver.com
Hi everyone! How are you? It is Leah Coss with Mortgage Center, and I wanted to actually go over what the heck a mortgage broker actually is. What is the difference between a mortgage broker and an independent mortgage broker? How much mortgage brokers cost, if anything? And really, what is the difference between coming to me, as opposed to just walking into your bank?
Well, let’s take this from that last one. What’s the difference between going to your bank, and going to me? Well, there is two main things. The first thing is obviously, if you go to the bank, you are only choosing from one set of products from one lender. There is no real competition aspect. So by going to them, you are just choosing from one set of products.
By going to me, you’re choosing from 40 different products. I’ve got a huge list of lenders, banks as well as non banks. If you are curious what non banks are check out my blog. It will tell you there the difference between non banks, banks, and private lenders. Those are the three main categories for financing.
Because of that obviously, I have created two different things; one, variety and selection. There are many different products out there. If you are self employed, or if you are a new immigrant, or if you are buying a previous grow op, or if you want to buy a rental property, those are going to be four different lenders that I would send you to based on those different criteria.
So, by going to your one bank, they may decline you, whereas with another lender, you would be approved in a second. So going to a mortgage broker is obviously saving you time, it’s giving you variety.
Now, second thing is, what about fees? Well, if you were working with a mortgage broker, and they are trying to charge you a fee by sending you to just a regular lender, a bank or a non bank, drop them, drop them, drop them, drop them. There should be no fees involved. The banks and the non banks, they pay us. Again, we’re getting huge volume discounts. We’re bringing them business. We are basically working like salesman for them, and so because of that they are paying us a commission.
That’s where you are going to need private financing. Private lenders do not pay us anything. You have to pay them a fee. You also have to pay us a fee. So, that is how that works. Other than that, it should always be free to use a mortgage broker. We work for you, not for the lenders.
Now, what was the last thing? Oh! What is the difference between a mortgage broker that works in a bank, and an independent mortgage broker? Well, I’m sure after this post, I will get many letters from different banks and different mortgage brokers who work for banks, but this is how I am going to say it.
People who work for a bank are not a mortgage broker. They call themselves a “Mortgage broker,” but they are not. They do not have to go through the same licensing that I do. They do not have to go through the same education and schooling that I have to. They are simply a bank employee who has been shifted into the mortgage department, and is now doing mortgages. They may call themselves “Mobile mortgage brokers,” or all these things, but they are not an independent mortgage broker.
If you go into Scotia, and you talk to their mortgage broker, you are only going to be offered Scotia products. Where is the brokering in there? There is no brokering. If you walk into TD, and you talk to a TD mobile mortgage specialist, they are not a broker. They are only brokering TD products.
Going to an independent mortgage broker is crucial. Ask the mortgage broker, “Do you work for any one bank?” If they say, “Well, yeah. I work for CIBC, or HSBC,” or something, they are not a mortgage broker. They are only going to sell you those bank’s products.

Duration : 0:6:58

(more…)

Technorati Tags: canada, coquitlam, fees to use a mortgage broker, langley, leah coss, morgage, mortgage planner, mortgage specialist, surrey, vancouver, Vancouver Mortgage Broker, what is a mortgage broker, where should I get a mortgage, why use mortgage broker