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Dear ,
I trust everyone survived last month's heat wave! Whether you enjoyed the heat or not, I hope you are taking a bit of time for yourself to enjoy the summer!
Both Lisa and I are avid sport fans ... so on July 27th we decided to take some of our favorite associates on a road trip to see the Seattle Mariners play the Toronto Blue Jays in Seattle.
We loaded everyone into a limo and off we went. Before we started watching the game we made an important refreshment stop at the Safeco Field Beer Garden.
Everyone had a ball of a time and we got back home to Vancouver relaxed and refreshed.
Sandra Ens of Macdonald Realty took a some pics along the way. Here are a few of them ... be sure to check out the BLOG for more!
In this month's newsletter, I thought I'd touch on the five big mistakes that many people make when getting a mortgage. Whether you are a first time buyer, or have your mortgage almost payed off, it is never too late to learn!
Sincerely,
Mike Averbach and Justin Blacklock
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Five Mortgage Mistakes You Can't Afford To Make
 We deal with dozens of people every month who are looking for the best mortgage they can get. We get to see first hand, mistakes people have made in the past. These mistakes have often cost them thousands of dollars in interest charges, and have extended the life of their mortgage years longer than necessary.
Since your home is one of the biggest purchases you will make, it pays to take a bit of time to learn about the pitfalls.
Here are Five Mortgage Mistakes that could add to the life of your mortgage and to the total cost of your home:
- Not choosing the best product for your situation.
- Automatically renewing when your mortgage term is up.
- Not reading the fine print on the legal documents you are signing.
- Running your credit up to the limit.
- Not planning ahead.
Let's look at these points individually, to see what you should be doingl
1. Not choosing the best product for your situation.
There are dozens of different kinds of mortgage loans available. From fixed and variable rate mortgages to hybrid and no-frills mortgages. Terms range from 1 to 10 years, while amortizations can range from five to 35 years. Some loans lock you in, while others have limited or totally flexible payment plans.
What many people neglect to pay attention to is the payout penalty. This is something we have been running into in the past few months because homeowners want to take advantage of the current low rates. High payout penalties can lock you in, when you want out!
A bank or institution may only offer you two or three loan choices. A mortgage broker, as an independent agent, can offer you a full range of choices and help you choose the best mortgage for your present circumstances and future goals.
2. Automatically renewing when your mortgage term is up.
Whether it's just "easier" or because you feel some kind of obligation to your current lender ... it is a BIG mistake to just automatically renew. It could be costing you thousands of dollars to not find out if you can get a better deal.
We have found that your bank often offers you their current rate.
They don't care if you are a long-term customer. They figure you won't shop around and their "business" is to make
money, not to give you their best deal!
Start the process several months before your renewal deadline. Give us a chance to re-appraise your current mortgage and see if we can find you a better mortgage.
Let me ask you this question ... is it worth an hour or two of your time to potentially save a few thousand dollars?
3. Not reading the fine print on the legal documents you are signing.
Do you just allow someone to stick a big document in front of you and sign it? A surprizing number of people do. They happily sign away without even attempting to read the document or ask questions about what they are signing.
When you work with us, we have your best interests in mind. We DO know what all the fine print means and we will make sure we answer all your questions until you feel comfortable about what you are signing.
Please ... NEVER sign documents without reading them first.
4. Running your credit up to the limit.
When you apply for a mortgage, the first thing a lender does is look at the debt-to-income ratio. They want to see that you have MORE income than you have debt.
In order to get a favorable ratio, don't run up the balance on your credit cards to the limit. Pay down your debts as much as possible.
5. Not planning ahead.
If you are going to renew your mortgage, refinacing, or buy a new property, you usually know about it ahead of time.
Be sure to plan ahead by making sure your credit is in order. Don't make big purchases such as a trip or a vehicle on credit. Do pay down your credit cards as much as possible. Renew, refinance or purchase BEFORE making a big job change, or taking time off for children!
You already know that the financial institutions are going to look at your debt-to-income ratio, so be sure to plan ahead and make sure that ratio is healthy.
We're Here to Help YOU
By understanding how lenders look at your finances, and how the mortgage process works, you can avoid the mistakes that many people make.
As mortgage professionals, we are here to help you, by answering your questions and by understanding the ins and outs of the mortgage industry. The industry changes all the time and it is our business to know where to go to get YOU the best deal we can.
BUYING, RENEWING OR REFINANCING? Call us and we'll help you get a mortgage that makes sense for YOU!
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August Market Update
Here's our monthly market update from
our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason
Low, Sandra Ens, Jason Feinstadt and Jenny Stephanson.
Welcome to the Macdonald Realty Market Update
Fixtures vs. Chattels
 When
buying and selling property, you're usually not just conveying the
rights to land, but also the transfer of improvements on the land. And
while you would think that it would be easy to identify the difference
between Fixtures and Chattels, the distinction is often blurry, and the
consequences of ambiguity can be high.
Fixtures
are items that 'run with the land', and are considered as a part of any
real estate transaction. Chattels are items that are considered
'personal property', and can be removed from the real estate without
consequence to the seller. The general rule is that items that are
bound to the land only by their own weight are considered chattels,
while items that are affixed to the property are considered fixtures.
Common
sense often plays a strong role in determining whether an item is a
fixture or a chattel, but, sometimes, grey areas appear.
Televisions
have historically been considered chattels, and most people consider
them as such; however, new flat-screen TVs are often mounted to the
wall, which technically makes them fixtures. Blinds are often
considered fixtures, while drapes and curtains are usually chattels.
Storage sheds that are only affixed to the ground by their own weight
are chattel, but if they have a concrete foundation, they're fixtures.
Built-in appliances are fixtures while stand-alone appliances are
chattel.
 Standard contracts generally protect both sides by outlining that:
The Purchase Price includes any buildings, improvements, fixtures,
appurtenances and attachments thereto, and all blinds, awnings, screen
doors and windows, curtain rods, tracks and valances, fixed mirrors,
fixed carpeting, electric, plumbing, heating and air conditioning
fixtures and all appurtenances and attachments thereto as viewed by the
Buyer at the date of inspection.
In order to further
protect yourself as a buyer or seller, it is important to write down,
in the greatest detail possible, all of the items that you wish to
either keep or remove from the subject property. Otherwise, disputes
can and will arise.
Average Home Prices:See the Average House Price comparison chart for Greater Vancouver, Victoria, Kelowna and Edmonton. Visit our BLOG for more information and advice on dealing with Vancouver's current housing marketplace. And for links to our friends at MacDonald Realty.
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Averbach Mortgages
604-710-2550
We save you time. We save you money. We get you the you the best mortgage terms at the best interest rates possible.
If you are:
- purchasing your first home
- refinancing
- renewing an existing mortgage
- investing in real estate
- consolidating your debts
- experiencing current or past credit issues
We have the solutions that work for you.
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Mike Averbach
Averbach Mortgages |
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