ECONOMIC UNCERTAINTY REMAINS HIGH

Published November 29, 2011 Mortgage Agent Toronto Leave a Comment

International issues weigh on performance

The Canadian economy is expected to remain on a relatively slow growth path in the coming months, with both international and domestic issues weighing on its performance. Sluggish demand in the U.S. and Europe is dampening international trade prospects and consumer confidence. Meanwhile, Canadian consumers are revisiting their spending plans during a period of higher uncertainty, slowing job growth and weak income growth.
Housing market remains healthy
Sales of existing homes in Canada rose in October to the highest level since January confirming Canada’s housing market remains robust despite global market volatility and economic uncertainty. According to statistics released by the Canadian Real Estate Association, national sales of existing homes rose 1.2% in October from the previous month, building on September’s 2.5% gain.
Low interest rates continue to entice homebuyers and some analysts believe that these rates could open the door for increased activity relative to current levels. However, the subdued economic growth environment and questionable consumer confidence could keep some potential buyers from entering the housing market, despite the attractive rates. Experts anticipate that these forces will effectively cancel each other out, leading to relatively flat sales and price levels for the year ahead.
No rate change in sight
The European sovereign debt crisis and fiscal uncertainty in the U.S. remain the most important topics when it comes to the health of the global economy. While these issues continue to dominate the headlines, the Bank of Canada remains limited in its ability to alter interest rates. The forecast suggests that the Bank of Canada overnight rate will remain at 1% out to the fourth quarter of 2012 and that the 5-year Government of Canada Bond yield is expected to rise to 2.40% by the fourth quarter of 2012.
This article is for information purposes only. It is recommended that individuals consult with their Wealth Advisor before acting on any information contained in this article. We accept no liability whatsoever of any kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice

Global issues slowing domestic growth

Published October 30, 2011 Mortgage Agent Toronto 3 Comments
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BANK OF CANADA LOWERS CANADIAN EXPECTATIONS
Europe’s debt crisis and a lagging US rebound continue to impact Canada’s economic outlook. In its quarterly Monetary Policy Report, the Bank of Canada substantially cut its economic growth projection to 2.1% in 2011, 1.9% in 2012, and 2.9% in 2013. The new forecast, which comes a day after the Bank of Canada kept its overnight rate unchanged at 1%, cuts 0.7 percentage points off growth for both 2011 and 2012 from the previous forecast.
Low interest rates still attracting homebuyers and investors
Continuing uncertainty over the global economic outlook and highly volatile financial markets have yet to contribute to any notable slowing in Canada’s housing market. MLS home sales picked up almost 3% in September after two months of relatively flat activity. On a trend basis, sales are still tracking in line with the average of the past decade.
Historically low interest rates continue to entice homebuyers, even as Canadians adopt a more frugal approach to discretionary retail spending. An expected slower pace of hiring in the coming months could keep some potential first-time and move-up buyers on the sidelines for the time being, dampening overall demand. For now, however, experts anticipate relatively steady sales and pricing.
Rates remain unchanged–again
The Bank of Canada has remained on hold for nine consecutive rate decisions and analysts believe this trend will continue well into next year. With the Federal Reserve on the sidelines until mid-2013 and uncertainty surrounding the global economy, Canada remains limited in its ability to raise rates. The revised forecast suggests that the Bank of Canada overnight rate will rise to 1.75% (1% currently) and that the 5-year Government of Canada Bond yield is expected to rise to 2.60% by the fourth quarter of 2012.
This article is for information purposes only. It is recommended that individuals consult with their Wealth Advisor before acting on any information contained in this article. We accept no liability whatsoever of any kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice

Congratulations TEAM!!!

Published October 7, 2011 Mortgage Agent Toronto Leave a Comment
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Congratulations to our hard working TEAM for being the first to ever reach the $100,000,000 funded mark with Street Capital. Job well done everyone!!

First Time Buyers!

Published September 29, 2011 Mortgage Agent Toronto Leave a Comment

 

 

 

 

 

 

 

 

Attention first time buyers! Don’t you think it’s time to start looking for that cozy home before the winter gets here?

 

 

 

First time buyers

 

Yours in home financing,

Sherwood Mortgage Group

LENDERS AND HOW THEY DIFFER

Published July 13, 2011 Mortgage Agent Toronto Leave a Comment
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General consumers tend to think that there are only 5 lenders available for their mortgage needs – the 5 big banks. This is in fact an error, as there are numerous lending institutions that are available through the mortgage broker channel. These lenders often have competitive, if not better rates and service, and sometimes, have niche products for clients who don’t quite fit the banking models.

Certain lenders specialize in commercial lending, while others prefer construction financing. There are lenders who have programs for new immigrants and self employed, as well as lenders who take on additional risk by lending on unique properties and situations. As a mortgage broker Sherwood Mortgage Group @ Mortgagebrokers.com, has access to all of the different institutional and private lenders. This ensures that you get the mortgage product and pricing that best suits your needs.

Yours in mortgage financing,
Sherwood Mortgage Group

Congratulations!!!

Published June 7, 2011 Mortgage Agent Toronto Leave a Comment
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Congratulations to Pacific Mortgage Group – parent company of Mortgagebrokers.com!!!

Pacific Mortgage Group riding high on Profit
By Vernon Clement Jones

One of the broker channel’s biggest players – Pacific Mortgage Group – is now looming large on the national scene, with PROFIT magazine naming it the second most rapidly expanding company in Canada.

“For Pacific Mortgage Group, it is a great milestone for our shareholders, mortgage brokers and staff – something that we can be very proud of. But there is a lot of work to do and we are looking forward to what we can accomplish in the next five years,” Pacific CEO Alex Haditaghi told MortgageBrokerNews.ca. “Pacific is also unique in the industry in that our brokers and staff are owners in Pacific and they are working hard every day to build their own company and dreams and not someone else’s.”

On June 1, leading consumer magazine PROFIT announcing it had placed Pacific second on the list of 200 Canuck companies that defied the recession and exponentially expanded their business over the last five years.

“The PROFIT 200 companies are the innovative, high-growth enterprises Canada needs to compete on the global stage,” said Ian Portsmouth, editor-in-chief. “PROFIT is proud to celebrate their achievements and ambitions, and we encourage all businesspeople to learn more about the many ways they’ve come so far, so fast.”

Still, many may find it hard to wrap their heads around Pacific’s phenomenal growth between 2005 and 2010. The parent company of Mortgage Architects, MortgageBrokers.com and lender myNext Mortgage widened its revenue stream of $229,603 in 2005 to $55.5 million by the close of last year. That’s more than a 24,000-per cent increase in the span of five years, with the company employing 1,085 people in 2010. The expansion placed it second only to Mood Media Corp., a global provider of in-store media and digital signage and now owner of the ubiquitous Muzak. In behind Pacific was Hi-Def surveillance software maker Avigilon Corp, which grew its revenue stream from $200,000 in 2005 to a whopping $32 million and change by 2010. Corporate titans like Blackberry-maker RIM also graced the list of who’s who, alongside marketing marvels like parka design house Canada Goose.

Haditaghi was quick to acknowledge the contributions of the group’s mortgage professionals.

“Achieving greatness and success can only be accomplished with a dedicated team who are passionate about our business and focused on a common goal – that of achieving uncommon results,” he said, in a note sent off to the network’s managing partners, lead planners, mortgage associates, business partners and staff. “Over our past five years, we have achieved tremendous results but so much remains to be accomplished. I am very much looking forward to what the next five years might bring.”

The company remains focused on both organic and acquisition growth, aimed at expanding the broker channel’s market share even as competition revs up. Last month, Mortgage Architects welcomed it first franchise. High-ratio lender myNext Mortgage Company expanded into the “conventional” lending sphere, only months after its move to develop a commercial lending arm. In recent months, Haditaghi also spearheaded a move to acquire one of the country’s largest brokerage networks, Invis. The outcome is yet to be determined.

“Our immediate plans for future growth include the diversification of our revenue streams for our brokers and our company,” said Haditaghi. “We believe our industry will be going through more changes in next 24 months then the last 10 years! We have built a profitable brokerage and lender operation and now we are looking forward to taking our organization and our Brokers to the next level.”

His company’s ranking on the PROFIT list may also help to lift the profile of the broker channel, say analysts, at a time when brokers are struggling to retain clients at the same time add to them.

Haditaghi is hoping for the same outcome.

“The high ranking of Pacific brings a considerable amount of positive attention to the mortgage brokerage sales channel and the mortgage industry from a broad spectrum of the Canadian business community,” he told MortgageBrokerNews.ca. “Such attention could be instrumental in facilitating new investment and business partnerships for the industry.”

First Time Buyer Seminar

Published May 19, 2011 Mortgage Agent Toronto Leave a Comment
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Date: Wednesday, May 25th, 2011
Time: 6:30pm
Location: Sherwood Office 2888 Dufferin Street, Toronto
Register online: www.sherwoodmortgagegroup.com

Why does my friend have a better/different rate than I do even though we’re closing our homes within a few months of each other?

Published May 12, 2011 Mortgage , Mortgage Agent Toronto , Mortgage Service Toronto Leave a Comment

Rates tend to be the first thing we discuss when shopping for a mortgage or asking our friends and family for referrals. And when we hear their rates being better than what’s currently being offered to us, we tend to get defensive. “Why can’t I get that same rate?”

This is a question that as mortgage brokers and agents, we hear often. Below, you’ll find a list of reasons why your neighbour’s, friend’s, parent’s, sister’s etc…..rate may sound better than what you’re being offered:

  1. They booked their rate at a different time. All this means is that they approached their lender at a time when rates may have been lower. Unfortunately, if there’s no pre-approval on file for you, there’s no way you can ‘back-date’ your application to capture an old, expired rate. This is why we always recommend getting pre-approved before you purchase.

   2.  They may have a variable rate and you’re shopping around for a fixed rate. Many times we’ve heard gasps on the phone when asked for a 5 year fixed rate and we quote the going rates which   
        are NOT 2.25%. Make sure when shopping for a mortgage rate, you’re comparing variable to variable and fixed to fixed.

    3.  You may have some challenges with your application and thus pose a higher risk to a lender. Challenges include weak or bruised credit, non verifiable income, lack of downpayment and property        
         challenges.

    4.  And finally, you may not fit a certain lender’s criteria. Your application may not get approved by your friend’s financial institution because each lender has deals they like and deals they can’t do.             
         Example: If you need a guarantor and your friend’s lender doesn’t allow it, you wouldn’t have access to their rates and products.

As you can see, there’s a lot more than rate that goes into your mortgage application and it’s pricing. A mortgage is truly a customized financing solution that fits YOUR needs, and as your mortgage broker/agent, Sherwood’s mandate is to ensure that we propose the BEST solution for YOU.

Yours in Financing,

Sherwood Mortgage Group

Income Verification – What do you need to provide?

Published April 11, 2011 Mortgage , Mortgage Agent Toronto , Mortgage Service Toronto , Uncategorized Leave a Comment

Personal income today comes in so many different forms and structures. If you’re thinking of applying for a mortgage, below you’ll find a quick summary of the different types and what’s generally acceptable as verification.

Permanent Salary Employee – Usually requires 2 of the following: Employment letter, paystub, direct deposit into your bank account, tax returns, notice of assesment

Contract employee – Considered a form of self employment as the employee is responsible for deducting income taxes, not the employer. Need to provide most recent 2 years tax return (T1 General), and notice of assesments. A copy of the contract is nice to have on hand as well.

Part time employee – Must be at that same employer for at least 2 years for the income to be usable. Will need employment letter, paystubs, and either 2 years notice of assesments or 2 years T4s.

Self employed – Need proof of self employment with articles of incorporation or business registration. Depending on the downpayment amount, may also need recent 2 years tax returns and notice of assesments.

Pension/Retirement Income –3 months bank account statements showing deposits and end of year tax statement.

Disability Income – Confirmation that this is permanent disability income and not short term or temporary. 3 months bank account statements showing deposits into bank account.

Rental Income – Copies of all leases and recent 2 year tax returns along with notice of assesments.

Overseas/International Income – 2 recent tax returns from the country of the income origination as well as any corresponding Canadian income taxes. If taxes are not filed in that country, a letter of employment, along with bank account history may suffice.

As with everything else, each application is looked at on it’s own merits and as such the above recommendations are a general guideline.

If you have an income situation we haven’t addressed above, please give us a call at the office to discuss.

Yours in Financing,
Sherwood Mortgage Group

Why you NEED a mortgage agent/broker?

Published March 22, 2011 Mortgage , Mortgage Agent Toronto , Mortgage Service Toronto 2 Comments
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You hear the word ‘mortgage’, and the first thing that pops into mind is ‘my bank’. While this is a correct answer, it’s not the best answer. The mortgage broker industry in Canada is gaining market share from the well identified big banks because of the value in the service it offers.

First of all, a mortgage agent/broker WORKS FOR YOU. Not for a specific bank or financial institution. This translates into getting you the best deal in terms of rates, pre payment options, and overall mortgage structure. This too, often means that when you send an email at 10pm, don’t be surprised to get a reply back 5 minutes later. When you call, you’ll probably get them answering their phones. You are the priority and as such, service is paramount. There are no bankers hours, and their offices are limited to wherever transportation can take them.

As licensed professionals, there’s and educational component that must be met in this career path. The Financial Services Commission of Ontario (FSCO), authorizes the agent/broker to have access to all the different lenders that are out there, hungry for your business. Benefit for you: there will ALWAYS be a solution for your financing needs.

As commission earners, there’s an incentive to get the BEST mortgage for you and make the entire process pleasant and seamless. Given your parameters, your mortgage agent/broker knows the different requirements of each lender, and matches you with the best fit. When clients say “that was so easy”, we know we’ve done our job well.

And finally, as financing experts, we have access to a wealth of knowledge from the industry – everything from appraisals to insurance, compounding interest and industrial condos. Even if you’re not ready to purchase that property yet, we’ll make sure you’re well armed with all the information you’ll need to make the best decision for yourself.

So, when you hear the word ‘mortgage’, the best answer is ‘MORTGAGE AGENT or MORTGAGE BROKER’.

Yours in financing,
Sherwood Mortgage Group

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