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Prime at 4.00%, Likely to drop further. 5 year fixed discounted rate now ranges from 5.59 - 5.89%. 1 Year fixed discounted from 4.35%.
The Bank of Canada is laying out very strong language that more cuts are coming to the Prime rate as a way to fight the ever slowing economy. Fixed rates remain stubbornly high, and will likely stay static until into the new year when they should start to drop in with a more competitive marketplace.
Mortgages are indeed available, and a client with good credit, a good job and a downpayment will have no problem getting one. The people on the fringe who may have an issue or two are also likely able to get a mortgage, although we are having to work harder to get them approved. Those that don't fit in currently can be given a plan that we can work with them to get them into a position where they can buy. Regardless of the client's situation we treat them all with respect, and make you look good.
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Something to consider: a different way to market your listing.
We all know in today's tougher market, anything that will get your listing sold has to be looked at. What about the Vendor take back Mortgage we all know, but rarely run into? When you are sitting with your clients, one of the best topics you can bring up is the idea of what they may be willing to do in terms of helping the Purchaser buy their home...armed with that information, you will be able to put a deal together no one else can! If your client has the equity, and doesn't mind getting repaid over a year or so on a portion of their sale, you may get them more for their home than simply dumping the price...and they can make decent interest on it!
Let's look at an example:
Bob has his listing on for $500,000, but his clients are willing to do a Vendor take back up to $100,000. By informing potential purchasers of this, they can possibly buy without CMHC fees (saving them $5,000 - $15,000 approx.), and potentially more home than they thought they could afford. the purchasers make an offer of $490k with a $50k Vendor take back at 6%. the buyers had $50k to put down, so now we can get them financed for $390k without CMHC fees ($8,800!). Bob's clients received 98% of their asking price, and will have $50k earning 6% for the next year.
While this is obviously simplified, it will help, and in today's market, the people who sometimes are out looking right now are the ones with a tougher time getting approved...this can help those people buy now. We can help you with any questions you may have. Good luck! |
Useful website for Your clients
Apart from our own website www.lloydonline.com (which is currently being reno'd, watch for changes soon!) here are some helpful links to provide to your clients who are looking for more information on mortgages.
If you need more specific information, please let us know! |
| Why the right lending partner is so important now...
Six months ago, there seemed to be lots of deals for you to grab...if your lending partner of choice couldn't get a deal done, there was always more out there. That was a long time ago. There are now fewer deals to go around, and when you have one, you need it to get approved and close. Are you willing to risk that to your local branch or a lending rep? An Independent Mortgage Broker can deal with over thirty lenders instead of one. What makes Michael different than the other brokers you can choose? 20 years lending experience, 9 as an Independent Mortgage Broker, and his South Surrey office is one of the highest mortgage volume teams in British Columbia. That means when your client is referred to Michael he has the knowledge and the volume to get them approved and with the best product. Lenders offer special packages and approve more for their best brokers. Does this mean he gets everyone approved, of course not, but if there is any way to get it approved, Michael will find it. So when your client says they need a mortgage, refer it to Michael and you can feel comfortable your deal is going to close...isn't that the most important thing?
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| About Invis on the Peninsula
Invis on the Peninsula is a group of Mortgage Experts led by Michael Anthony Lloyd who believe in looking after their client's best interests over the long term. With a combined lending experience of over 75 years they have the experience to find the best strategy for any situation. Their business is built on a referral basis, the referral of a friend or family member is the greatest compliment they can receive.
Michael Anthony Lloyd is an Accredited Mortgage Professional & member of the Canadian Association of Accredited Mortgage Professionals as well as the Mortgage Brokers Association of BC.
The comments & opinions contained within are strictly those of the author, no guarantees are made. All Rights Reserved Michael Lloyd 2008. |
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