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Breaking Bad With Collateral Mortgages

Oct 05 2018

Breaking Bad With Collateral Mortgages


Collateral mortgages are pushed heavily by the banks because they benefit the banks. What’s wrong with them from a consumer standpoint? Nothing, provided you never need to borrow money in a second mortgage position, if you never get into trouble with your payments, or with any of your debts with that bank. Collateral mortgages tie you to your bank (more…)

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How a Mortgage Broker Helped Their Client Get Back on Their Feet

Aug 02 2018

How a Mortgage Broker Helped Their Client Get Back on Their Feet

 

 

 

Situation

The borrower was a middle-aged gentleman who owned a condo in downtown Calgary with a small first mortgage through a major bank. He had become unemployed due to the poor economy and was receiving Alberta Works Social Assistance, only a fraction of what he was earning while working. He was living off minimal income, was relying on credit, struggled with payments and depleted his savings.

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Underwriting a private deal

Mar 27 2018

Underwriting a private deal

The private mortgage market in Canada has been consistently growing over the last 10 years. Reasons for the growth include stricter regulations for institutional lenders and increase in the amount of capital available to private mortgage lenders as a result of underperforming bonds and other traditional fixed-income investments, which has motivated the investment community to seek out higher return products. Another factor is increased regulation of how private mortgage lenders raise capital (except for BC) which has consolidated smaller operators who are challenged to meet regulatory requirements.

Substantiating how much the industry has grown is a challenge, but, as an example, in 2010 there were approximately four private mortgage lenders based in the Western Provinces who had a portfolio of loans exceeding $100 million and today there are over 12.

Opportunity

As mortgage professionals, there is a real opportunity to embrace private lending in order to service more clients and in turn grow your business. Part of embracing this market is educating yourself on its nuances. In this article, I will discuss how private mortgage lenders make underwriting decisions.

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Bringing Transparency To Private Lending

Jan 28 2018

Bringing Transparency To Private Lending

The new Mortgage Rules are making it harder for you to get your clients a mortgage.   As a result, more and more mortgage professionals are using private mortgage lenders to help their clients achieve their goals.  To best help your clients, it is important to understand how private mortgage lenders operate, how the pricing works and the associated costs to ensure what you promise your customers come to fruition, with no surprises.

Who are Private lenders?

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Timing is Everything; Don’t Leave it to Chance!

Oct 24 2017

Timing is Everything; Don’t Leave it to Chance!

Sherwin Timing is Everything

In my role as an Underwriter at Calvert, I have the opportunity to work with mortgage brokers and fund deals in less than 24 hours from the initial phone call.

After a brief conversation at noon one day, the Broker quickly provided the entire document package, and I was able to hand the client a cheque at around 11 am the next day.

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Appraisal vs. Assessment

Jul 25 2017

Appraisal vs. Assessment

Assessment vs Appraisal

As a real estate professional, homeowner or home buyer, it’s important to understand the difference between the ‘Tax Value’ (usually referred to as ‘Tax Assessed Value or Assessed Value’) and the ‘Appraised Value’ when trying to determine the Fair Market Value of a property. (more…)

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An economic roadmap: how to read the signs

May 14 2017

An economic roadmap: how to read the signs

An Economic Roadmap: How to read the signs

In our industry, we discuss the economy a great deal, and we follow the statistics and economic measures: but what does it all mean and how do you use this information in your business? How does it help you make decisions, and how can you use it to answer your clients’ questions about the economy.  In the news and industry articles there is a lot of noise: how do you know what matters, and what indicators will affect you and your clients, and the lenders you deal with. 

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