19 Apr

Mortgage and real estate review April 20th 2013


Posted by: Brian Mill

Now that the snow is gone and the weather is starting to feel a “bit” like spring, activity is really picking up.  2 weeks ago I had one of the busiest weeks I’ve ever had for preapprovals and now the offers are starting to fly.  I have had 2 actual deals fall apart due to sellers who were unwilling to budge on their price, and I’m not sure if this is a trend or just a coincidence.  Hopefully we don’t have a market full of overpriced listings and unrealistic sellers. 


No change on the interest rate front.  I can still to 2.84% and 2.89% on a rental property so if you have anyone looking at buying rentals, make sure they talk to me.  More and more lenders are adding premiums on rates on rental properties as they are inherently a bit riskier than a principal residence.  I can help your clients sift through the myriad of things to consider when buying and mortgaging a rental property.


Did you know? Collateral mortgage charges have become a hot topic recently as some lenders have changed their policies and ALL of their mortgages are done on a “collateral charge” as opposed to a “conventional charge”.  The advantage to a collateral charge is the ability to re-advance funds up to 80% loan to value after the mortgage has been paid down below this level and/or have a line of credit or other revolving credit secured by your residence.  The disadvantage is that on renewal, if you were to switch your mortgage to another lender, the mortgage actually has to be discharged from the title and another mortgage put in its place, meaning a set of legal fees to do this.  One of the major banks was on Marketplace (The TV show on Sunday AM at 10:30 on CBC) recently as they have been doing this and not disclosing to their clients that they would have to discharge the entire mortgage to switch it out.  These lenders are using this as a “retention” tool instead of for its other uses since it is much harder to switch out on renewal.  Contact me for information on who does this and who to watch out for!


Please feel free to call me anytime this weekend at 519 379 3003…..I will be happy to answer any questions or speak with your clients directly.




Brian Mill, B.A.

12 Apr

Mortgage and real estate review April 12th 2013


Posted by: Brian Mill

The weather is doing its best to hold off the spring market as long as possible, however most agents I’ve been in contact with this week are saying activity is picking up.  There are buyers out there looking but they’re not acting very fast.  A colleague of mine in Barrie is saying that their inventory is down so they are seeing multiple offers on everything and that final prices are often well above asking prices.  Once the sun comes out I think we’ll see a significant improvement in offer activity.


Interest rates are still at the amazing low rates….most clients are sticking with a fixed rate mortgage of either 5  or 10 years.  I think I’ve only done 2 variable rate mortgages in the past year and that was specifically due to the 3 month penalty if the clients were to break their mortgage within 5 years.  The beauty with the extremely low 5 year rates is that even without the 30-40 year amortizations we had in the past few years, clients are still able to qualify for houses that they never thought they could have. 


I’m going to start a new weekly feature that will hopefully keep you informed of some of the products or rates that are available and might just help you gain a sale if you were to inform your clients.  I’m going to call it my “Did you know” and it will simply be part of my week in review emails. 


Did you know?  35 year amortizations are still available on CONVENTIONAL deals through some of my lenders?  I had a situation last week where a client was buying a duplex to live in and had 20% down, but had been declined by her bank as the ratios were too tight.  Her own bank only had 25 year amortization available even on conventional deals, however I was able to put the mortgage together using a 35 year amortization through another lender. 


My hockey pool with Dominion Lending Centres is gaining a lot of buzz around the area.  Registration starts Monday and you could win $10 000 or one of many other prizes totalling over $25000, and you get to play against Don Cherry.  Simply go to www.brianmill.ca and watch the video for more details. 


This weekend I’ll be cheering on the Attack and watching the Masters so feel free to call me anytime with questions or referrals. 




Brian Mill