| Dear ,
 Happy New Year!
We hope everyone had an enjoyable holiday season.
Lisa and I spent it in Montreal with extended family while Justin and James enjoyed
some quality time at the River Rock Casino poker room.
Leading up to Christmas
we were profiled in an article regarding Variable Rate Mortgages that made it
on a number of online sites including the Globe and Mail.
This prompted a call from CTV Newsnet where I was asked to comment live at
their Burrard Street studio. Apparently CMHC received warnings from senior
Finance Department and Bank of Canada officials during the past two years that
its active business in high-risk mortgage insurance could overburden consumers.
If you saw it, I was less than complimentary to the writers of the article
saying "it must have been a slow news day" and that this was just "stirring
the pot. We're beating a dead horse here."
I
was challenged by the anchorwoman who claimed that 40 year mortgages have
become a strain on consumers. "Nonsense!" was my quick response. "Forty
year mortgages were brought in to help consumers get into a market at a time when they were otherwise unable to afford it. Someone with a 25 year
amortization that happens to lose their job might be in a worse position
given their payments are higher than someone with a 40 year amortization. So to state
that a 40 year amortization is burdensome is incorrect. If you mean that they
are not paying their mortgage down as fast as someone with a 25 year amortization, then
yes, they certainly are not. However with flexible mortgage options allowing them to change
their payment frequency, the length of their mortgage could be lowered by 7 years or more. Additionally, they
always have the ability to go back to their original minimum monthly payment whenever necessary."
It was definitely an interesting interview!
I was also interviewed by Mike Sasges, editor of
the Vancouver Sun Homes Section which appears each Saturday in your paper. We
discussed the issues that first-time home hunters face in this current
environment. This article will appear in a few days, so please take the time to read
it this Saturday the 17th of January. I hope you will also share it
with your friends, colleagues or other first-time homebuyers. If you miss it,
we'll send you a copy as a follow up to this newsletter.
Also, I want to thank you all once again for celebrating FIVE
very successful years of business with us. Since 2004, it's been you, our
loyal clients, that have driven us to the top of the mortgage broker industry
and we appreciate your support!
Sincerely,
Mike Averbach and Justin Blacklock
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