2012 brings in new and innovative mortgage solutions for homeowners and investors alike. There is also an understanding by lenders of their role in both the local and global marketplace, and the lender's role in helping to stimulate the economy both in a local and global sense. Mortgage financing transactions help effect economic activity since real estate purchases are very large in dollar volume and real estate projects have the potential to create far more jobs and economic spinoff's than other business projects. Take advantage of the capital opportunities that are available from your lender, today.
Many Canadian lenders are sitting on surplus cash because of the strong Canadian economic climate and the recent reduced corporate business tax. If you have equity in your current real estate or have at least 25% cash to put down towards a real estate purchase transaction and your lender is not lending you money - for whatever reason - then go find another lender. If you have hired the services of a mortgage brokerage firm and they cannot help you, then go find a new mortgage broker.
For active borrowers, both retail and investor, 2012 will be a great year to borrow money from lenders. Do it for your yourself, do it for your family, do it for your local economy, do it for your country and in some way, you will have done it for the global economy.
One more thing, for Canadians, 2012 is the Year of the Accredited Private Lender (APL); "the highest standard of "quality-in-lending" for the equity mortgage borrowing community". Learn more about the APL and why they are important to you at www.privatelender.org.
Email us at info@mortgagequote.ca if you have any questions or comments.
Dedicated to Quality Management in the Finance Industry; a finance application of Conformity Science. Conformity Science (www.conformity.org) includes the subordinate, abstracted concept system represented (or expressed) by the designated terminological phrase: "Bungay Unification of Quantum Processes Algorithm"; also represented as the "Principles of 'BlockChain'" or the simplified compound term: "BlockChain"; and the application thereof, on a pan-industry, pan-functional basis.
Showing posts with label Higher Standards. Show all posts
Showing posts with label Higher Standards. Show all posts
Monday, 2 January 2012
Tuesday, 18 October 2011
Why work with a mortgage professional?
Why work with a mortgage agent?
In today’s market economy of low interest rates, rising house prices and increased bank competition, you owe it to yourself to consider working with a mortgage agent for your next home purchase. There are five questions that residential home buyers have asked about mortgage agents:
1) Who are mortgage agents?
2) How much money can I really save using a mortgage agent?
3) How do they get such good deals?
4) What will it cost me?
5) Why haven’t I heard of them before?
First of all, a mortgage agent is an independent business person whose role is to help you find the best mortgage rate for your home investment. The Agent works on your behalf and negotiates with 30 or more different lenders, in order to get you the best combination of low interest rate and payment terms. In Alberta a mortgage agent is licensed by the Provincial government and adheres to a Code of Best Practices to ensure that you (as the consumer) get the best mortgage for your needs. An Alberta mortgage agent is also accountable to the Real Estate Council of Alberta.
Look at a mortgage agent much like your travel consultant. Just as you would request a travel agency to help get the best fare from home city to wherever you are going, so too does a mortgage agent help you find the lender who will give you the best mortgage. As a Canadian, it may be hard to believe that there really are more than 30 quality lenders (beyond the few well known chartered banks) who are willing to compete for your mortgage business – often with much better rates and terms.
Although your local bank can often offer you an incentive of up to 1% off on
their ‘posted rate’ a good mortgage agent will regularly negotiate 1.25% to 1.35% and sometimes can get as much as 1.50% depending upon circumstances.
The main reason for such deep discounting is because the mortgage agent is not on the bank payroll, so the bank does not have to pay a salary, benefits, pension and other costs associated with retaining fulltime personnel. The reduction in cost is impressive and the savings are passed onto you, the consumer. In an actual sense, the mortgage agency industry is good for both the bank and the consumer’s financial bottom line.
Mortgage agents also have significant buying power because of the large volume of customers they work with, each year.
The fee for using the services of a mortgage agent is normally paid by the lender which you ultimately choose. There are cases however, when the consumer is charged a fee-for- service; this is usually in complicated mortgage situations or commercial and investment deals.
In the past 20 years, less than 15% of Canadian home buyers used the services of a mortgage agent. According to the Canadian Institute of Mortgage Brokers and Lenders, that figure rose to 25% in 2001 and is expected to reach 50% by 2005 and beyond.
In conclusion, regardless if you are looking for your first home or your 5th revenue
property, it pays to meet your local mortgage agent. See what they can do to help reduce your frustration when negotiating with banks and reduce your overall cost of borrowing.
The Accredited Mortgage Professional - what is it?
The Accredited Mortgage Professional (AMP): A higher standard of excellence
The Canadian mortgage industry is undergoing a dramatic change that will benefit both consumers and real estate industry professionals alike: the introduction of a national designation for mortgage professionals.
Launched early 2004, the Accredited Mortgage Professional (AMP) is the standard of excellence guiding the mortgage industry. The AMP was developed by the Canadian Institute of Mortgage Brokers and Lenders (CIMBL) as part of an ongoing commitment to increase the level of professionalism in Canada’s mortgage industry.
The AMP designation is unique because it sets a single national proficiency standard for Canada’s mortgage professionals. To earn a designation, a person must have a combination of education and real world mortgage business experience.
Why work with an AMP?
When your mortgage agent has earned his or her AMP designation, it demonstrates a personal commitment to the mortgage industry.
You can be sure that your agent is proficient and understands the mortgage process, since they would have met the high standards of education and training that is required. Additionally, your AMP is committed to constant improvement because they invest time each year towards continuing education in the mortgage industry.
What are the standards for qualification?
A typical mortgage agent can become licensed within a matter of months, after taking the basic mortgage agents course. To earn an AMP designation however, your advisor would not only have completed the basic course, they must satisfy these five components: Education, Work Experience, Ethics, Continuing Education and Membership.
Specifically, in order to be accredited, your AMP would have at least two years experience in the mortgage industry as a broker, lender or insurer. Furthermore, they would have completed CIMBL’s Ethical Practice in the Mortgage Industry seminar and agree to commit at least 10 hours per year towards mandatory professional development/continuing education courses.
Finally, the mortgage agent would have to be a member in good standing of CIMBL and abide by its formal Code of Ethics.
The introduction of an AMP designation is the dawn of a new day for the Canadian mortgage industry. Both consumers and real estate industry professionals will benefit from this national standard, which raises the bar of performance, credibility and accountability, to a higher level.
When working with an AMP, you will have comfort in knowing that the person helping you is passionate about their work, committed to their industry and fully accountable you.
Next time you speak with a mortgage agent, ask them if they are accredited, you’ll be glad you did.
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