Clients and New Friends


We are so thankful for all your help!  We weren’t very optimistic that we could get a mortgage at this stage in our lives but with your help we now have the perfect family home!  Thank you for all your diligence and persistence!

Mary K. and family

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Canadian Housing Market to Remain Steady in 2011

This article is taken directly from the CMHC website:

OTTAWA, August 24, 2011 — Housing starts are forecast to remain steady in 2011 and 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook, Canada Edition.1

“Housing starts have been strong in the last few months, but are forecast to moderate closer in line with demographic fundamentals,” said Mathieu Laberge, Deputy Chief Economist for CMHC. “Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector.”

Housing starts will be in the range of 166,300 to 197,200 units in 2011, with a point forecast of 183,200 units. In 2012, housing starts will be in the range of 161,700 to 207,200 units, with a point forecast of 183,900 units.

Existing home sales will be in the range of 425,000 to 472,500 units in 2011, with a point forecast of 446,700 units, essentially the same level as in 2010. In 2012, MLS®2 sales are expected to move up modestly in the range of 407,500 to 510,000 units, with a point forecast of 458,000 units.

The average MLS® price increased in the first half of 2011 partly as a result of more higher-end homes sold during that period. For the remainder of 2011, the average MLS® price is expected to moderate. Nevertheless, the annual average MLS® price will experience an overall increase in 2011 compared to last year. As the existing home market moves to more balanced markets, growth in the average MLS® price in 2012 is expected to be more modest.

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

1 The forecasts included in the Housing Market Outlook reflect information available as of August 12, 2011. Where applicable, forecast ranges are also presented in order to reflect financial and economic uncertainty.

2 Multiple Listing Service® (MLS®) is a registered trademark owned by the Canadian Real Estate Association.

This article is taken directly from the CMHC website

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Are you ready for your new home?

Buying your first or even second home is both very exciting yet can be very intimidating. The Canadian mortgage market seems to change on a monthly basis with insurance rules changing, interest rates moving in different directions and more options and choices arriving on a weekly basis. Real estate prices seem to go up in some markets, steady in others and slight decreases in some. It’s no wonder people are somewhat uncertain of what to do.
I’m here to help guide you through this maze. With the expertise that only an independent mortgage professional can offer along with my close ties with the real estate market, I can help you decide if now is the right time to buy your first home or move up to the next home.
Getting you pre-approved will let you know what kind of house you can afford. It will make the search for your home easier , less time consuming and simply more enjoyable. Even if you are having trouble qualifying for a mortgage I can show you what you need to do to get you in a home sooner than you might have first thought.
Working together to put a plan in place so that your home ownership dreams come true is what I do best. Call or email me today and let’s get started started today and get a jump on the competition. No need to wait until the fall months…you might be ready for your home today?
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Opportunity Knocks

When opportunity knocks…answer the door!
We are definitely living in interesting times. No time in recent history has a negative U.S market created such a great opportunity for Canadians to be buying a home or refinancing an existing home or to consolidate those pesky credit cards and other debts.
The slowing of the U.S. recovery and their most recent decision to keep low interest rates until 2013 combined with our strong resource based economy and strong dollar, creates an unprecedented opportunity to buy and mortgage real estate.
The Bank of Canada has been in an uncomfortable position of balancing increasing household Canadian debt and a strong dollar so are being pressured to keep rates at historical low levels. I have access to many lenders thru Mortgage Alliance, who are able to offer you rates and options like never before. Save thousands of dollars by refinancing or switching your mortgage.
Call or email me today to discuss your next move and don’t miss out on this truly interesting time.  Opportunity is knocking!
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Trump Tower/ Shangri-la Interview with Canadian Real Estate Mag

I was recently interviewed by Vernon Jones with KMI Media for Canadian Real Estate Magazine on financing difficulties for hotel/ condos. With not many lenders willing to lend, and the buildings closing. A lot exciting and exclusive news is developing that I am privy to and working on. It will be shared when confirmed. Until then enjoy the article:

This article is taken from Canadian Real Estate Magazine

“Lenders willing to finance Toronto hotel condo-market” by Editorial Team

A mortgage broker looking to use Toronto’s growing condo-hotel market to carve out a niche for himself is finding a dearth of lenders willing to write mortgages on those suites, which spend most of their time in a rental pool.

“These new projects are going to be registered as hotel-condos because most of the suites remain in the hotel pool for rental,” Wojciech Pianka, a Toronto mortgage agent with Mortgage Alliance, told “This is technically a commercial designation as no long term lease tenants will really be staying, and the suites will be subject to different tax laws. So banks are reluctant to lend on them. For one, they do not fit into the lender’s guidelines; another is if someone defaults how do you really sell that property?”

They’re questions that broker channel lenders may not yet have answered for themselves. Pianka has contacted as many as 15 in the last month in an effort to arrange financing for what he hopes will be the first in a long line of clients looking to buy into any one of a number of high-profile development projects now under construction. Those developments bring the hotel-condo concept to downtown Toronto, and the millions of tourists and business travellers who visit it each year.

The three most prominent projects — the Trump Tower, the Four Seasons Residences and Shangri-La – have a combined 1,800-plus units. There are several more in the works, each allowing buyers to occupy their units for a portion of the year, usually as a vacation property. The rest of the time those suites are used as hotel rooms, leased back to the management company, with a portion of the proceeds going to the owner.

While terms vary, most agreements mandate that units spend some time in that pool of suites. The requirement is problematic for brokers trying to arrange residential A deals for even qualified clients, said Pianka.

“Of the A-lenders I’ve contacted on behalf of my client, all said ‘No,’” the agent told “Hotel condos, as a concept, represent a relatively new risk and one that many of our lenders may not have considered previously. It may simply be that they haven’t yet developed enough experience around the product.”

His own search has yielded tentative interest from a credit union, which is now weighing the possibility of extending a conventional mortgage based on a significant down payment. There is still, however, the question of whether the deal can be treated as an owner-occupied property.

Still, Pianka’s persistence may ultimately pay off given the success American brokers have had in arranging purchases for foreign as well as domestic buyers in key markets across the States. But those deals remain relatively complex – with lower success rates. They are also more likely to be scuttled by small concerns around square footage and the perceived difficulty in disposing of a default property.

From, a division of KMI Media.

This article is taken from Canadian Real Estate Magazine

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Benefits of Refinancing/ Switching a Mortgage with a Mortgage Agent

I recently had the pleasure of helping out a client looking to refinance, who posed a variety of challanges. First challenge was getting the best variable interest rate possible for this extremely well qualified buyer. Next was to make sure he did not pay any legal fees, appraisal costs, or title insurance costs to save around $2,000 in closing/ transfer costs. Also, prepayment options of 20/20 per year. Finally he is looking at selling and buying a larger more expensive home in the next few months, so we needed a portability option for the future.

This deal left a limited amount of lenders who could finance the deal and do a no-fee refinance and save a few thousand dollars. He had 2.5 years left in his current mortgage term with a balance of around $277,000 at a rate of 4.65% and his payout penalty was around $3,000. At current interest rates he will save approximately $13,000 in interest over that period now.

However, because when you renew your mortgage lenders often try to give you the same interest rate as before and rates could be up by 2013, I also did a 5 year difference. In 5 years he would save around $20,000!!!!!!!!

Here is how those numbers brake down over 5 years in interest payments with weekly payments and approximate figures:

                     2.25% (-.75 P)        2.30% (-.70 P)             DIFFERENCE

Year 1             $6,091                  $6,227                           $136

Year 2            $5,874                   $6,006                         $132

Year 3           $5,653                     $5,780                        $127

Year 4           $5,426                     $5,549                        $123

Year 5           $5,194                     $5,313                         $119

TOTAL         $28,238                 $28,875                     $637

1/2 TOTAL  $14,791                   $15,023                     $332

Here are the interest payments for 5 years on a 25 year amortization at 4.65%, what the client was paying prior:

Year 1         $12,567

Year 2        $12,206

Year 3        $11,829

Year 4        $11,433

Year 5        $11,019

TOTAL:     $48,054

1/2 Total:  $30,693


$30,693                       What he would have paid over 2.5 years at current rate.

$15,023                        What he will pay under current conditions at variable.

$15,670                         Gross Savings

($3,000)                      Early Pay Out Penalty

$2,000                          No Fee Refinance Savings

$14,670                         Approximate Net Savings for Refinancing

He also asked how would this affect his payment, and if there would be any extra interest payments if rates rose to say 8.25% and 8.30%. Here is how they broke down on a 5 year basis:

                                 8.25%                 8.30%               DIFFERENCE

Year 1                    $22,172              $22,305            $133

Year 2                    $21,677              $21,808            $131

Year 3                    $21,141               $21,270            $129

Year 4                    $20,559             $20,686            $127

Year 5                     $19,929              $20,052          $123

TOTAL                   $105,478            $106,121        $643

As you can see the difference between the (P-.70%) and (P-.75%) is again $643 or close to the original $637. This happens because you are only paying interest on principal so the rate can be 120.25% to 120.30% and it will still be around $640. So this leaves him with a savings of $14,000. Very smart guy, that is a good weeks work, when from application to closing he had to spent a maximum 5 hours.

With his great credit and equity we had an option between best rate or no-fee refinance. Difference from best rate to no-fee refinance rate was .05% so over 2.5 years would be $330 approximately, however he would save a minimum $750+ HST on lawyer fee and a day off work, possibly $400 for an appraisal, $300 or so for Title Insurance.

Now we look at mortgage portability. When he sells his home and buys a new one he can transfer his current mortgage and rate to a new home if interest rates are in his favor. His new home can be more expensive as long as he can financially afford it and the lender allows it. He can also add a spouse to the ownership/ or transfer it to them. If not he can sell, brake the mortgage contract, pay a small fee and pull out his equity.

My client is even smarter in paying off his mortgage he is going to keep paying the same amount he did with his previous mortgage, and pay off the balance even soon. Should be mortgage free in 15 years opposed to 25.

To find out how to pay your mortgage off faster, refinance, the more specific numbers send me an email at

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Mortgage Alliance Toronto Mortgage Rates for Week of Aug 7, 2011

6 Month 4.45% 4.45%
1 Year 3.6% 2.75%
2 Year 3.95% 3.25%
3 Year 4.35% 3.09%
4 Year 5.04% 3.09%
5 Year 5.54% 3.34%
7 Year 6.44% 4.49%
10 Year 6.8% 4.79%
Variable Rate 2.25%
Prime Rate 3%
Cost per $1000 $4.91

* Rates may vary provincially and are subject to change without notice.

Rates Last Updated: Sunday, August 28, 2011

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I recently had the pleasure of speaking with and CMP Canadian Mortgage Professional about the difficulties of financing former grow op properties. Here is the link to the video version of the interview, followed by the article from Mortgage Brokers News.

This Article Taken Directly From:  Mortgage Brokers News

Brokers: Lenders Turning Their Back on ‘Grow-Op’ Properties by Vernon Clement Jones 24/07/2011:

As few as one or two broker channel lenders are now willing to write mortgages on the growing number of Ontario properties once home to grow-op and meth lab operations, said a broker skilled in moving those complex deals to funding.

“Really, it’s only Firstline where I can take a deal on a former grow-op,”Wojciech Pianka, a Toronto mortgage agent with Mortgage Alliance. “CIBC is also willing to do them, I understand, If it’s a property they have seized and would rather have a borrower paying a mortgage on it rather than own it themselves.”

The wholesale reluctance of broker channel lenders to fund mortgages on those properties is a relatively new phenomenon and, ironically, corresponds with the real growth in those affected houses across Ontario and much of the rest of the country.

While brokers have no direct fiduciary responsibility around arranging mortgages for former grow-ops, an increasing number of Canadian brokers are being confronted with those properties and the challenge of getting financing, even after they’ve been declared “safe.” Difficulty getting default insurance is another problem mortgage professionals face in winning funding for a deal on what was once a grow-op or lab site. Proposed Ontario legislation would effectively alert them to those challenges prior to moving forward with a client application.

Still, it would do nothing to draw broker channel lenders back to the funding table, as their risk aversion grows and spreads shrink.

“Ontario is the hardest jurisdiction to do a financing on a former grow op,” said Vancouver-based broker Rowan Smith, with The Mortgage Centre Citywide. “I do several of these deals a year and have done them in Ontario, but the lenders there generally have a flat policy that they won’t do a deal on a former grow-op even after remediation.”

Pianka understands their position based on the electrical and mould problems that can plague houses once used as covert labs and greenhouses. That also impacts resale value in the case of foreclosure. Still lender hesitance is frustrating broker efforts to develop niche areas of practice, said Smith, even as his particular specialty area widens.

This Article Taken Directly From:  Mortgage Brokers News

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Mortgage Alliance Toronto Mortgage Rates for Week of Aug 7, 2011

6 Month 4.45% 4.45%
1 Year 3.60% 2.75%
2 Year 3.95% 3.35%
3 Year 4.35% 3.49%
4 Year 5.04% 3.59%
5 Year 5.54% 3.54%
7 Year 6.44% 4.69%
10 Year 6.80% 4.95%
Variable Rate 2.20%
Prime Rate 3.00%
BenchMark Rate 5.39%
Cost per $1000 $5.01

* Cost per $1000 based on 5yr fixed term rate compounded semi-annually.
* Rates may vary provincially and are subject to change without notice OAC.

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Self Employed/ Business for Self Homebuyer Programs

Today more than ever people are turning to being self employed. One thing an economic recession has given people, is the opportunity to try new things. When laid of workers can’t find jobs, they sometimes invest in themselves and take control of their future. Not being restrained and dependent on bosses, they have time to start their own businesses and companies. Many fulfill their dreams and aspirations of being the BOSS.

No matter what type of occupation you have, we all have the same wants and dreams. Owning a place you can call your home is on many wish lists. What we do for a living however does affect that dream. Particularly with business owners who expense a lot of day to day things to minimize taxes. In a way its a double edged sword. If you claim more income, you pay more tax, but qualify for a larger loan. If you expense more things your income is lower and you pay less tax, but also make less verifiable income.

There are options for those individuals. Depending on credit score, down payment amount, loan amount and verifiable income these buyers can purchase the same homes as those with standard employement. The required documentation is different, and the CMHC premium is higher but the reality of home ownership is possible. Some types of applications need higher credit scores and larger down payments.

There are basically 3 types of programs for self employed buyers:

Standard Documentation: – Income is taken from line 150 of your Notice of Assessment. Depending on lender +15% can be added for the fact you have cross expenses for business and life like cell phone, car, and internet. 2 or 3 year average is taken when large fluctuations are shown from year to year. T1 General may also be required, but has to be prepared by 3rd party. CMHC premium is usually added to insured high ratio mortgages

Light Documentation:- In this type of application the buyer can state their income. It has to be reasonable for job type and industry. Notice of Assessment is required no taxes are owing, or proof that they have been paid.

Stated Income:- In this application, the lender is usually an equity lender. They will require 25%-35% percent down. These lenders will accept a lower credit score and very little documentation. Proof of business is required like Master Business Lic. Sometimes websites and invoices are used to prove activity and existence if 3 months worth of bank statements cant be provided. The buyers are required to sign a letter stating their annual income along with other conditions.

Other documents that will be needed for most of the applications are:

Articles of Incorporation or Master Business License

Purchase Agreement and MLS Listing

Proof of Down Payment with 3 months of bank statements. Transactions over $2,000 need to be explained unless a regular occurrence.

T1 Generals, Notice of Assessment or Statements of Business Activity (only for the first 2 types of applications)

Having your documentation ready before you decide to purchase is crucial to a smooth and speedy purchase. Especially with Business for Self applications, as they require more scrutiny. Make sure you speak with your agent about what exactly your situation will require. Happy home shopping.


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