I always strive to leave the impression with my customers that the mortgage business is a service business first. You don't make a profit on one mortgage; you make it on the lasting relationships you establish. It's all about building partnerships.
The relationships I build with my customers are based on the same values I share with my family. Reliability, honesty and commitment are traits that have always impressed me. It seems natural to extend those same values to my customers
Your Banker's 6 Dirty Secrets...
There is a fine line between telling a lie and avoiding telling the truth. It comes back to intentions you can be hurt by a clever omission as easily as you can by an outright lie. It wont come as a surprise, but there are some things your bank would rather not tell you. Well look at six dirty secrets your banker has been keeping.
1. You probably dont need the insurance
Banks offer insurance, sometimes marketed as balance protection, on every debt instrument they offer. You can get insurance on a credit card, line of credit, plain vanilla loan and so on. In return, your payments are covered in certain cases and a death benefit is paid if you die with the debt.
Going through the contract can be interesting and enlightening for consumers. Often many conditions have to be met to receive the hardship qualifications to cover payments and the death benefit is capped at a maximum that may be much less than the value of the loan.
Your banker isnt to blame for that, the bank is. Where the bankers omission comes in is in not advising clients that their life insurance policy may already be enough to cover the new debt already and if not, adding coverage for the amount of the debt will be much cheaper in the long run than paying an extra percentage of your balance on top of the interest.
2. Even if I like you, the system decides
Many banks market the fact that you can go into any branch and have a productive conversation with their representatives the human touch. If you are looking for a loan or mortgage however, theres little human element to the decision process.
Large banks use a computer model that takes inputs such as income, current debt levels and assets, and decides whether you qualify for a loan and, if so, how much. For most people, this process is flexible enough that they dont notice. For farmers, entrepreneurs and business owners, though, this process can be enraging because it discounts elements of their business and often paints them as credit risks.
3. Im a salesman
There are many different terms for it complete banking, one-stop banking, holistic service but when it comes down to it, your banker is there to cross-sell you other products from the bank. Have a chequing account? How about a savings account, credit card, savings bond and a retirement account? Banks want to lock in a customer as much as possible.
4. We offer a complete package to get complete fees
Once a customer opens an account, the pressure is on to open three more. Holding more of a customers financial life at the same bank gives banks the ability to encourage the customer into more fee-bearing accounts without having to worry about the customer shopping around for a better deal. Your banker will never tell you that the bank down the road charges less in service fees and offers the same interest. Instead they emphasize the ease of transferring funds between your accounts within the branch, the transfer fees they wave and the deal they have on balance protection insurance.
5. We make more money from fees than banking
Banks have been pulling an ever-larger slice of their revenues from fees. The tipping point came in the late 90s, when fee income climbed to over half of revenue for the largest banks. Most people, your banker included, will tell you a bank makes its money off the interest it earns from loans to customers. And given how important fees are to revenue, take three guesses at which direction they will be heading in the future.
6. Use a mortgage broker
The biggest secret your banker is keeping is that mortgage brokers have access to the best rates in the business and represent ONLY the clients BEST interest. Instead, your banker will focus on the convenience of having lots of friendly staff wanting to serve you. All those people and buildings cost a lot to keep going. This cost is one of the reasons banks need to tighten their lending models and up their fees. By contrast, a mortgage brokers service doesnt cost you a penny.
The bottom line
Your banker is there to protect the banks interest, not necessarily yours. Its time to look into a Mortgage Broker. Just dont ask your banker for a recommendation, thats another of those things he just wont say.
Mark Fidgett is a Vancouver mortgage broker and the driver behind www.AdvancedEquity.ca
Your Vancouver Mortgage Broker For Life
Ownership of Residential Property by Non-individuals
New data released today from the Canadian Housing Statistics Program provide information on ownership of residential properties by non-individuals in Nova Scotia, Ontario and British Columbia. The Canada Mortgage and Housing Corporation published a report using these new data,Residential Property in British Columbia, Ontario and Nova Scotia: An Overview of Non-individual Ownership, which also includes analysis of the ownership structure of vacant land across the three provinces.
The data tables include information on non-individual entities, referring to firms and governments. For the purpose of this release, they are classified into the following categories: corporations, governments, and sole proprietorships and partnerships. Information on selected sectors in which those entities operate, following sector groupings from the North American Industry Classification System (NAICS), is also included in this release.
Among firms and governments, corporations own the majority of residential properties
Across the three provinces, corporations are the most common legal type of non-individual owners of residential properties, followed by governments. Corporations include businesses and non-profit organizations, while governments include federal, provincial, territorial and municipal governments. In terms ofNAICSsectors, entities belonging to the real estate and rental and leasing sector, the public administration sector and the construction sector are the most common non-individual owners of residential properties.
In Ontario, three-quarters of non-individual owned properties are held by corporations, compared with68.9% in Nova Scotia and57.3% in British Columbia. The share of non-individual owned properties held by governments is highest in British Columbia (39.0%), followed by Nova Scotia (22.9%) and Ontario (20.1%).
In Nova Scotia,28.8% of residential properties held by corporations are owned by the construction sector, compared with22.5% in Ontario and21.4% in British Columbia. Among the residential properties owned by corporations, the real estate and rental and leasing sector accounts for the largest share in Ontario (31.1%) and in British Columbia (23.4%), while in Nova Scotia it represents about one-quarter of the properties held by corporations.
The average assessment value of a residential property owned by corporations is highest in British Columbia at $1.3million, compared with $630,000in Ontario and $330,000in Nova Scotia. In British Columbia, corporations account for84.7% of the total assessment value of non-individual owned properties, while in Ontario and Nova Scotia this share is closer to80%. Residential properties owned by governments represent around10% of the total assessment value of properties owned by non-individuals in each province.
Resolution broken already? Try a wellness goal instead
Many of us make New Years resolutions every January. But statistics show that nearly 80 per cent of people who make them will have broken them by February.
If you feel like this is you, dont fret. Most of us can agree, especially with recent holiday indulgences, that improving personal fitness and nutrition is an intimidating idea. But the secret to getting motivated and keeping the momentum going into the spring is to follow these three simple guidelines:
Dont try too much at once. When we first set fitness and wellness resolutions, were often inclined to make a goal to spend every day at the gym and eat clean 100 per cent of the time. There is a reason these are too often broken they are hard to accomplish. Listen to your body and do what feels good for you. Modify your lifestyle to a healthy one that fits your needs and is one youll be able to sustain throughout the year.
Stick to it. Experts say that it only takes 21 days to create a lasting habit. While that may seem like a lot, three weeks will come quickly and there are many resources out there to help you through it, from fitness plans to eating guides. AdvoCare, a nutrition and wellness company new to Canada, carries several products to help enhance your results.
Keep a positive mindset. If you miss a day, dont stress about it, you can get back on track tomorrow. Staying positive about your wellness journey will keep you on track to reach your goals and maintain a healthy lifestyle well into the future.
If you are able to make it to day 21, youll set the stage for the rest of the year and will be on the right track to meeting your fitness and nutrition goals.
Find more information at advocare.com/en-ca.