Profile cover photo
Profile photo
Kevin Bay Mortgage Broker

Do you have a mortgage manager?

Why is it important to have a mortgage manager working for you?
Setting up your mortgage to meet your financial goals can be easily be overlooked when securing your mortgage. There are some things to consider before moving forward. Will there be a potential of you buying an investment property, a vacation home, up-scaling or downsizing are you thinking you might be moving and porting your mortgage or retiring within the next 5 years? All these scenarios come into play when setting up your mortgage.
If you had $500,000 cash to invest how often would want your financial advisor to review your investments, more than once every 5 years?
Why is it different when you are $500,000 in debt with your mortgage?
Why not have an active mortgage broker looking after your $500,000 debt.
An active financial advisors goal is to grow your net worth by investing wisely.
An Active Mortgage brokers goal is to help you grow your net worth by reducing your debt and growing your asset base. By not having an active mortgage broker you are only covering half of the prosperity equation.
Consider this, your banks main goal is to make money for the bank. That is understandable as they are in business to make money. As reported banks make billions of dollars every quarter, in part thanks to you. A mortgage brokers is an advocate for you and their main goal is to get you the best mortgage to meet your goals. This comes in many forms, not just the interest rate although it is important there are other areas that could cost you more money in the long run.
An active mortgage broker can save you thousands of dollars over the life of your mortgage.
Most mortgages are set up on a 5-year term. A lot can happen in 5 years.
Changes in life happen. You are forced to move, or you would like to move to a bigger home, down size, buy an investment home a recreational property take equity out to buy a business or maybe retire?
Mortgage rules continue to change. What worked last year may not work this year. It is important to review your situation with your mortgage broker before making any major decisions with your current mortgage.
Being in the right mortgage may be the difference between being able to buy that investment property or recreational property. It may be the difference of paying a $3000 penalty or an $18,000 penalty to close out you mortgage.
Remember it is not getting a mortgage that is important it is getting the right mortgage to be able to meet your future goals.
When it comes to your renewal time it is important to once again review your options with your mortgage broker.
Your current lender may not have the best rate or option for you at renewal time as there are many lenders and there are many options to chose from. At renewal time, you can change lenders with no penalty. Renewal time is also a good time to take extra equity out of your home to pay off debt or to pay for that new kitchen you wanted.
I have called many clients well before their mortgage is due when I recognized it would save them thousands of dollars to refinance early. Moves like this help clients pay down their mortgage faster or have extra cash-flow for investments or maybe provide funds for renovations or a down payment on an investment property.
Having someone manage your mortgage can be a great benefit for you and your family.
If you currently do not have an active mortgage manager a Dominion Lending Mortgage Broker would be happy to become your mortgage manager.

Kevin Bay
Mortgage Broker
Add a comment...

Post has attachment
Understanding the new down payment rule.
Add a comment...

July 28, 2015
Your biggest financial liability is…
We live in a society that pushes us into unwise decisions.  Most of us think of getting ahead financially but fail to do so due to unwise decisions. It is the little things that add up to the big things. I want to talk about the biggest financial liability we face in today’s society.
I am talking about the car loan. I have heard many reasons on why “I had to get a car loan”. Excuse the pun, but I do not buy it. I have seen car payments as high as $950 a month from someone that has never owned a house. Many car payments are running $650 - $850 a month. Some car loans are now 8 years long. So the way I see it is some people would rather live in their car than to own a home.
There are so many good used cars with low mileage. A well looked after car will last 10-20 years. So instead of paying $50,000 for a new vehicle why not look for a good used one for $5000. Stop and think what a difference this makes over your lifetime.  Once you get caught in this trap you pay the car loan and then when you are done your car is old so you turn it in for a new one and start all over. Many young people start the process when they are 20 years old. It feels good to drive a new car and when you are young you are thinking of now not later. So you only have a $500 car payment but you recycle this every time you pay off your car. From the age of 20 to 60 you have paid $240,000 for your car. Not to mention you insurance is much more, so the extra cost of the insurance would pay for the up keep of an older car.
Too many people are unable to buy a home or to invest in the future due to large car loans. Next time you go to look at new vehicles ask yourself is this a wise thing to do considering on where I would like to be in life 20 years down the road. Let those who are already financially successful buy the new vehicles and maybe one day you can pay cash for yours.  
Written by: Kevin Bay – Mortgage Specialist.
Add a comment...

July 20,2015
How the Bank of Canada affects Mortgage rates.
Understanding how mortgage rates are set is important to know what mortgage is the best to take out at this time. I helped a person remortgage about a year ago. I mention I though a variable was the way to go. The client was concerned because he heard that rates may go up so decided he wanted to go with a fixed. If he would have went with a variable he would have saved about $200 a month in payments as of today. That is an extra $200 a month to the bank instead of to the client. The banks love fixed rates.
A Variable rate is tied to the prime rate. So when you get a Variable mortgage you get prime minus some number say .5%. If the prime rate goes down.15% your variable also goes down .15%. The prime rate is tied to the Bank of Canada rate and until this year the prime rate would stay is step with the Back of Canada rate. The last two .25% drops have been followed by the banks reducing their prime rate by .15%. Anyone that currently has a variable rate mortgage has seen their mortgage rate drop.
The Fixed mortgage rates are mostly tied to the bond rate. So even though we have seen a drop in the Variable rate we have not seen a drop in the fixed rate mortgages.
The Government have made a lot of changes to the mortgage rules in the last number of years. One of the changes is that to qualify for the Variable rate you have to qualify at the 5 year bank posted rate of 4.64%. Many first time home buyers cannot debt service at the variable so need to look at the best overall 5 year fixed rate.
In my opinion, for those that can qualify the Variable rate it is still the way to go. There is now talk we could see the Bank of Canada lower the bank rate one more time early next year. Canada’s economy is mainly tied to commodities such as Oil, Lumber and metals. By watching the Canadian economy we can have a good idea what the Bank of Canada will do and when they might raise interest rates. Since the Variable is convertible into a fixed at no cost to the borrower one can feel comfortable knowing if rates do turn up sometime in the future you can switch to a fixed rate.
So where is the economy at? We keep hearing it is getting better but each report that comes out shows it is not. So until we see the likes of China, who is the largest consumer of commodities, and the stock piles of oil deplete and consumption begins to outpace production we should not be concerned about the Bank of Canada increasing rates.
The above is the importance of working with a knowledgeable Mortgage Broker. Anyone can get you a mortgage but you should want more than just a mortgage. A mortgage is probably your largest investment. Treat it like an investment and down the road you will be glad you did.
Written By: Kevin Bay – Mortgage Specialist
Get more than just a mortgage.
Add a comment...

Post has attachment

Post has attachment
What is next for Mortgage rates?
Great insights from @DLCCanadaInc's Chief Economist @DrSherryCooper on today's @bankofcanada rate cut.
Add a comment...

Post has attachment
Will interest rates change next week? Could we see one more drop?
Canadian Jobs Data Weak As Expected
Canadian Jobs Data Weak As Expected
Add a comment...
Wait while more posts are being loaded