Most agents are quite happy with the amount of activity these days and hopefully this pace will keep up for a while yet. There are offers flying all over the place according to the offices I’ve been in this week and personally I’d agree…..preapprovals are down but real deals are up!
Interest rates, with SOME lenders went up a smidge this week (5-10bps) but others are holding on to retain market share. I’m still doing a 5 year fixed at 2.79% (for the right client and right deal). What pleases me most is that 2 deals this week came from clients who were not happy with the service and rates from their own banks and chose to deal with me! I’m sure anyone on commission likes to feel that they’re doing a better job than their competitors!
“Did you know”….that cottage properties can be bought with as little as 5% down, the same as a principal residence? In fact, cottages are treated the same as principal residences by lenders and have the same qualifying criteria. As long as you can make the payments, you’re good to go. Challenges often arise with cottage properties due to irregularities such as no central heating sources, not winterized, not on a cement pad or foundation (on blocks!), water source not from a well etc. In each of these cases I have lenders who will consider these types of properties under a “Type B” dwelling which allows a more relaxed set of guidelines for the property, in exchange for a small premium in rates. Clients often get mis-advised when it comes to cottage properties and could often use a “second” opinion to make sure they’re using the best strategy when buying a secondary property.
I would be happy to discuss this in further with you or your clients so call or email me anytime.
Don’t forget about my gas card promotion! I’ve received a lot of referrals in the past couple weeks (I’ll have to pay out $550 in gas cards) so keep the referrals coming. If you are not comfortable with receiving the gas card personally I’ll gladly give it to your client on behalf of both of us.