25 Aug

This Week’s Buzz


Posted by: Tracey Brock

This Week’s Buzz


Why you Need a Professional Realtor®!

When you hire a REALTOR® you are not just gaining the support of a professional, but an individual who has hands on experience with today’s Real Estate Market.  REALTORS® are trained and regulated Sales Representatives who must adhere to a strict Code of Ethics and will guide you through every step of the home buying process.

Still not convinced?  Then let’s talk about what you need to do to ensure that you get the best value for your home, whether you are buying or selling.

TIME – One of the biggest challenges is there is never enough time in the day.  A REALTOR® will take the time to speak with you personally to determine your goals, search the market, assess your buying and/or selling power, arrange advertising and most importantly screen potential buyers that inquire about your home.  This is starting to sound like a full time job already!

EXPERIENCE – Is also knowledge and your REALTOR® is mandated to ensure that they are continually educated each year.  They do their research and are abreast of the marketplace so they know what the price of the home should be whether you are buying or selling.  They provide due diligence during the evaluation of your home and they advise you based on this experience.  This means, you are not going to pay too much for your home or deter potential buyers with an inflated selling price.

RESOURCES – It’s not just about hanging a sign on your lawn and advertising in the local paper or on the internet.  REALTORS® have a professional network of people that have access to their own buyers and sellers, many of which are not even actively listed or searching.  REALTORS® are viewing properties every day and can provide objective information about your home or the homes you are considering to buy. They are willing to spend the time and money to ensure that your home sells for the best price on your conditions or find you a new home that meets all of your needs!

SKILLS – The power of negotiation is a formidable tool and a real professional will manage this with ease.  The purchasing of a home is not only in the price, there are a myriad of negotiating factors that come into play – the most important one being emotion.  REALTORS® keep it professional.  They ensure that whoever they are representing, whether it be the buyer or the seller, everyone’s best interest are taken into consideration. 

Questions you should ask when looking for a REALTOR®

1.   How long have you been in the business?

2.   What is your average list-to-sales-price ratio?

3.   How will your marketing plan meet my needs?

4.   Will you provide references?

5.   What separates you from your competition?

6.   May I review documents that I will be asked to sign?

7.   Can you help me find other professionals?

8.   How much do you charge?

9.   What if I am unhappy with the service?

10. What haven’t I asked you that I need to know?



When it comes down to it, do we really have the time in our busy schedules to successfully

save money

Use a Professional REALTOR®


Source: www.howrealtorshelp.ca REALTORS® is a registered trademarks of The Canadian Real Estate Association (CREA)




September 12, 2011

This Week’s Buzz

Pre-Approval or a Pre-Qualification

Why is it important to have a Pre-Approval!

 When you are ready to purchase that new home one of the first steps you should be taking is to obtain a Mortgage Pre-Approval from a qualified Mortgage Broker.  It saves you time and provides you with a competitive edge when you start looking at those new homes with your Realtor.

 Don’t be confused!  There are two common terminologies in the Mortgage Industry Pre-Approval and Pre-Qualification.  I am here to tell you that there are dramatic differences with both.  Basically, a Pre-Qualification is an unofficial estimate or educated guess, of how much of a mortgage or new home, you can afford.  A Pre-Approval on the other hand, is an exact analysis of your personal financial status and income. A Pre-Approval letter from a lender verifies that you have the resources available to purchase a home for a certain amount and most importantly at a guaranteed rate. 

As you may know, a pre-approval carries a lot of weight in the Real Estate Industry. 

You now have a certified budget that allows you to make educated decisions when looking for homes in your price range.  In the long run, saving you time and money!


Be Prepared, speak with a Mortgage Professional! Realize your Dream of a New Home Sooner!


September 6, 2011

This Week’s Buzz

 Student + University/College = $$$$$$$

A Second Home for Your Scholar may be the Solution

Student Housing an Alternative Solution

Back to School Again!  Summer holidays are over and although most kids are excited with the adventure of a new school year, most parents are thinking of the costs that are incurred with post secondary education.  I have a solution that might not only save you money but possibly even earn you an income in the long run.

 The average cost per school year for Student Residence can range anywhere from $3500 -$7000.  Shared accommodations in a rental home or a one bedroom apartment can be anywhere from $500-$1000.00 for the rent alone and rarely includes utilities and other daily expenses.  In Waterloo, Ontario the average rent for a full house is upwards from $1500.00 per month.

I have a solution!!!

If you purchase a 3 bedroom home for your student instead of finding a rental property for them, not only could you earn up to $2000.00 in rental income you would also realize an appreciation of the value of that home at the end of your child’s education.  If you wanted you could also continue renting this property out after your child is completed to other students or professionals in the area.

 Borrowing costs are at near-historic lows!! With a minimum 5% down and on approved credit (OAC) you may even qualify for almost 0% down with a Cashback Mortgage.  Rates are similar to what your own home mortgage rates, terms and conditions are, and as long as your child lives in the home, he/she can sublet rooms to other students to help offset other home ownership costs.

Why spend a minimum of $36,000 over four years into someone else’s mortgage! 

Invest in your future and speak with a

Professional Mortgage Agent today!


August 29, 2011



This Week’s Buzz

Helping YOU choose the best Mortgage product.

Fixed Rate or Variable Rate

The decision to choose a fixed or variable rate is not always an easy one. It should depend on your tolerance for risk as well as your ability to withstand increases in mortgage payments. You can sometimes expect a financial reward for going with the variable rate, although the precise magnitude will ebb and flow depending on the economic environment.


Fixed rate mortgages often appeal to clients who want stability in their payments, manage a tight monthly budget, or are generally more conservative. For example, young couples with large mortgages relative to their income might be better off opting for the peace of mind that a fixed-rate brings.


A variable rate mortgage often allows the borrower to take advantage of lower rates — the interest rate is calculated on an ongoing basis at a lenders’ prime rate minus a set percentage. For example, if the prime mortgage rate is 3.0 percent, the holder of a prime minus 0.5 percent mortgage would pay a 2.5 percent variable interest rate.


As a consumer, the best option is to have a candid discussion with your mortgage professional to ensure you have a full understanding of the risks and rewards of each type of mortgage.  That is where I can help.  Call me to discuss which type of Mortgage Rate best suits your needs.


What is your Risk Tolerence?


August 22, 2011

This Week’s Buzz

How to Help Build Your Credit While Saving Money!

 As we all know, good credit is the key not only to getting mortgage financing but also to getting a better interest rate, that in the long run, saves you money.

When circumstances have occurred in your lives that have left you with derogatory credit, in credit proposals or even bankrupt I have solutions for you that will get you back on track. 

Steps that will help you build back your credit rating.  Most importantly, get you in the home you deserve with a mortgage that is affordable and at a good rate!

1. Knowing is half the battle!  This link will give you access to a number of useful articles about credit.  Please use the password ws93a1dk.


 2. Obtain an Investment Loan for a Guaranteed Investment Certificate (GIC). This loan not only saves you money but reports to the credit bureau too.  The perfect way to rebuild your credit rating.  Please visit the link below using the password ws93a1dk. 



  3. Finally, speak with a licensed mortgage professional who can look at your personal individual circumstances.  It may not always be as bad as it seems and there might be a solution out there for that your bank does not have access too. 

 *All of the above resources are provided free of charge and with no obligation by Lendit Financial.  Lendit specializes in providing GIC investment Loans that help people build their credit, while at the same time bettering their financial future.

 Take Action now!  Stop investing in your landlord’s  Mortgage and Start investing in your future!



August 15, 2011

 This Week’s Buzz

The “Dollars” and “Sense” 

Why a 4 year Fixed Term is better than a 5 Year Fixed Term

1.     Four year rate is the lower of the two interest rates.

2.     By the end of the forth year you will have paid off more Principal and paid less Interest!  Even with a .10 difference in rate between a 4 year and 5 year rate on a $300,000 mortgage amortized over 30 years they will save over $ 5,000.00 in interest payments.  

3.     Finally, when circumstances force you to break your mortgage early, the prepayment penalty of *IRD on a 4 year fixed term mortgage vs a 5 year fixed term mortgage is much lower.  

*IRD (Interest Rate Differecntial) is a penalty that may apply if your clients payoff their mortgage prior to the maturity date. 

 I am sure you will agree that for the most part every four years we make changes in our lives.  We move, we renovate, we want to purchase investment properties, our families grow.

  Having a four year term gives you the perfect opportunity to use the equity available in your home to invest in your future!  

Investing in your Future, one Mortgage Term at a time!


9 Aug

What exactly is a GDS/TDS Ratio


Posted by: Tracey Brock

 What exactly is a GDS/TDS Ratio?

Are the two standard measures that lenders have relied on to determine one’s ability to pay their mortgage and other debt expenses.

 Gross Debt Service Ratio – GDS

Is the percentage of a person(s) income required to cover or afford, the total payment of a Mortgage including, principal, interest, property taxes, heat and condo fees (if applicable, 50%).  It is calculated using the total monthly gross income divided by the total monthly home expenses as stated above. A maximum allowed GDS for most clients is 30% of the available income.  Some lender’s will waive this maximum if the client’s Fico Score or Beacon score is above the norm.

 Calculated as:                  GDS =  Annual Mortgage Payments + Property Taxes

                                                            Annual Gross Family Income


Total Debt Service Ratio – TDS

Is the percentage of a person(s) income required to cover or afford all housing costs (GDS) plus any instalment or credit card debt.  This percentage is calculated as above and includes the monthly payments required for any credit cards, loans, lines of credit, etc.   This is a good indicator to lenders of whether a potential borrower has the ability to cover the proportion of gross income that is already spent on the house as well as the other financial commitments they already have in place.  Typically, the maximum allowed for a GDS is 40% although again, some lenders will go up to as high as 50% TDS depending each individual borrower.

 Calculated as:                    TDS = Annual Mortgage Expenses + Other Debt Payments

Annual Gross Family Income

For example, Mr. and Mrs. Smith have a monthly principal and interest mortgage payment of $1,000 monthly property taxes of $250.00, and monthly credit card and loan payments totalling $500.00.  Their gross family income is $75,000.00. 

 This would give them a GDS 21.6% of  TDS 29.6%. Based on the benchmark of GDS/TDS of 30/40, Mr. and Mrs. Smith appear to be carrying an acceptable amount of debt.