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Meet the IOP team |
Denise Carroll-McLean,
Accredited
Mortgage Professional
Denise joined the IOP team in June of 2008 after a career with various Credit Union & Banks, including Coast Capital, Prospera & HSBC. During her time in the branches, she learned not only the lending side of the business, but also the Financial Planning side as well, that she feels enhances her role now as a Accredited Mortgage Professional with IOP, putting the best mortgage strategy in place for our clients. With that much experience, Denise has the confidence and skills to look after our client's needs from getting pre-approved, through to completing and beyond.
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Rate hold Program with IOP |
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At Invis on the Peninsula we strive to look after our client's long term mortgage needs, sometimes that means we have to do things differently than others, and we are ok with that.
One program we have is to setup a rate hold with a lender (other than the one you are currently at, they won't do this) so we can ensure the current fixed rate is held for up to 120 days. You can then see what happens on the market with no obligation to go forward. If rates stay the same or go down, no problem, but if rates go up, you have the peice of mind that comes with having the best rate held for you. If you wish to go ahead and move your mortgage, you can decide to proceed. Call us to arrange this for you, it's a free service, and while it is extra work on our part, we're ok with that.
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About Us
Invis on the Peninsula is a team of Mortgage Professionals led by Michael Anthony Lloyd.
With a combined 75 years plus in lending and one of the highest volume teams in Invis, Canada's largest mortgage brokerage, we have the experience and relationships with lenders to get not only an approval, but the best overall package for you.
Our philosophy will always be based on long term relationship building with our clients...we always offer objective advice, and will be here in the long run | |
Mortgage Update  |
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Michael's Mortgage Minute
The latest information for you
The Bank of Canada left Prime alone as expected, and reiterated that they intend to do so until June 2010, as long as the inflation rate stays in line. They continue to expect higher inflation into 2011, which they will use the higher rates to counter. In the US there has been some talk in the stock markets of higher rates sooner than expected, but many have discounted this, as the only positives they have had recently is a slightly higher employment report, which did not take into account those who have stopped looking for a job actively.
We are expecting a very strong Real Estate market to start the New Year, as there is pent up demand but limited listings supplies currently. As more people realize what they could sell their house for, more will go up for sale. Most home prices have now regained any decreases in prices over the last year, although most of the public doesn't seem aware of this.
Lenders continue to sharpen their pencils on their variable and fixed rate product discounting, we expect more of that in the new year. Current variable products hover at the just under Prime mark, (Prime - .10% = 2.15%) while fixed rates are now available for 5 years discounted to 3.85% - 3.99%.
With low rates to continue, a variable mortgage strategy still makes sense for most people, and with new variables around Prime & slightly below, the savings are significant. If you are currently locked in we should be reviewing what is best for you.
Our concern is not the current climate, it is the issue of coming due in a high rate cycle, which we expect to occur between 2012-2014. By floating now and locking in later we think it is worth some risk now to avoid those much higher rates down the road.
As always, if in doubt, give us a call to review your mortgage strategy. |
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Ask the Expert! 
With Heather Blatchford of Kane Shannon & Weiler
Are you aware of the implications of buying from a non resident seller?
To ensure that a non-resident seller pays Canadian tax owing on the gain resulting from the sale of real estate, section 116 of the Income Tax Act requires a non-resident seller to report the sale to Canada Revenue Agency (CRA) and to obtain a clearance certificate from CRA. If a non-seller fails to comply with this requirement or if a buyer fails to make a reasonable inquiry as to the residency of the seller, the buyer may become liable to pay tax on behalf of the seller - up to 50% of the gross purchase price of the property in the case of depreciable property (for example, buildings) and land inventory (real estate bought and sold for profit, not for long term investment or residence) or up to 25% of the purchase price of capital property (for example, land originally bought other than simply for profit). If a non-resident seller does not have a clearance certificate from CRA prior to closing, the buyer's lawyer will hold back the appropriate withholding tax and remit to CRA within 30 days after the end of the month in which the property was acquired unless this deadline is extended by CRA or the clearance certificate has been issued.
for more information:
or call Heather at 604-535-8770 |
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Did You Know?
Breaking a Mortgage Term
Many Canadians are unaware that they may be able to break their mortgage term before it comes due. While there will be a penalty owing to their lender to do this, we can work out whether this makes sense to do or not.
Lender's intentionally keep their penalty calculations secret as much as possible, or at least as complicated as possible, to try to stop the average client from moving out of a nice juicy high rate term. Sometimes the branch will offer to move a client into what is called a blend & extend...they take your current rate and term, then add a couple of years at today's lower rate, and through another complicated calculation, come up with a magic number. Much like in Las Vegas, the "house" always has the odds in their favour...most blends are worth doing.
Most Closed Mortgages in Canada are breakable by paying either 3 months interest or the interest rate differential calculation, which ever is greater. It is this interest rate differential calculation that is hard to work out exactly, as each lender does it slightly differently. In general it should look like this: Current mortgage $100,000, Current rate 5.00%, Current term remaining 2 years. Today's 2 year rate = 2.65%. Difference between 5.00 & 2.65 = 2.35% x 2 years remaining x outstanding balance = $4,700, which is higher than the $1,250 that 3 months interest works out to, so the lender would charge $4,700 in this circumstance. If we work out that you can save $4,700 back within 10 -12 months by going into today's lower rates, this may make sense.
Please note that this is a simplified calculation, each one is different, and we also have a few tricks of how to reduce the penalty owing as well.
If you think you are paying too much, the best thing to do is call us with your current information and we can work out what your situation would look like for you. | |
