10 things to consider BEFORE your mortgage renews

General Mark Goode 9 Sep

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | 
All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie MMDLC

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Banks Continue to Frustrate Mortgage Brokers

General Mark Goode 9 Sep

A perennial thorn in the side of every broker, the games that banks play in order to block a broker’s deal are many. So here’s one you may be able to relate to.

“Dealing with banks that don’t want to do discharge statements for those customers who wish to take their business elsewhere,” Mark Goode of Mortgage Man – Dominion Lending Centres told MortgageBrokerNews.ca. “They play games and sometimes wait until a deal is closed so that penalties need to be paid.”

Goode does recall a time when a statement was issued by a bank that would free the client for his relationship – on a Friday at 5pm that was only good for 24 hours.

Despite improved efforts by banks to disclose penalties, brokers are still frustrated by ploys to instill fear in clients.

 “The luxury the banks have is fuelling the fear customers have of paying penalties,” Mark Cashin of Dominion Lending Centres told MortgageBrokerNews.ca. “Psychologically they can’t get over that penalty barrier. It’s a great retention tool.

“I had another one with RBC: They had and astronomical penalty of $5,000 for a $90,000 mortgage with only a year left on it,” Cashin said. “I asked the customer if they asked how RBC calculated it and they said the bank just gave them the number.”

It’s an issue Cashin has had more than once and it isn’t only the big banks that are guilty.

“I just had one yesterday and I don’t think it’s necessarily just the banks; I think it’s a ploy that a lot of lenders use,” Cashin said. “I calculated the discharge penalty to be $3,850 and they came back with a $5,000 penalty. They didn’t calculate their 20 per cent pre-payment privilege.”

Proper consultation with clients can convince them to take a penalty — once it’s explained how much they will save.

“I do a total dollar calculation of interest over the term and I show customers what the balance is,” Cashin said. “If it’s calculated properly sometimes it is worth to take the penalty because a customer may save 15 to 30 thousand dollars.”

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 

All credits and copyrights to their respective owners. ʉ۬

Article may have been altered or edited from Original Post. Original: http://www.mortgagebrokernews.ca/news/banks-continue-to-frustrate-brokers-174894.aspx?keyword=goode


~ Corin Payie MMDLC



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EnRICHing Orillia’s Youth

General Mark Goode 17 May

Thursday, May 16, 2013

Managing Debt 101

Orillia | by Jim Birchard  
High schools students in Orillia will be getting advice on how to handle their finances when they head to post-secondary institutions.

Some students graduating from Orillia’s Park Street Collegiate will be taking a little something extra when they head off to University or College.

They will be armed with information on how to manage their finances and avoid debt.

Orillia Mortage Broker Mark Goode will be delivering a special program to the Students on May 28 to help them understand the fundamentals of money management.

The program is called the Enriched Academy and aims to fill the gap by teaching the students how to build their wealth.

Goode says a lot of students just don’t understand how much debt they could accumulate by the time they finish university.

He also says the Enriched Academy will tell the students about the potential pitfalls of credit as well.

Original Post:

http://www.sunshine891.ca/news_item.php?NewsID=57000

 

 

 

Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | All credits and copyrights to their respective owners.  â€¨Article may have been altered or edited from Original Post. 
Corin Payie  MMDLC



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Orillia’s Mortgage Man is called to Speak to Industry Leaders.

General Mark Goode 15 Apr

Orillia, Ontario. April, 11 2013.

Orillian Mark Goode AMP to speak among industry leaders at this year’s Canadian Mortgage Professionals Mortgage Summit

Toronto Congress Centre May 9 & 10 2013.

Mark Goode AMP has been asked to speak at the 2013 Mortgage Summit at the Toronto Congress Centre. With over 600 participants, The Mortgage Summit ensures national recognition of both large and small organizations on their individual merits.

This annual black-tie gala is the event highlight of the year that attracts the biggest names in the business throughout Canada. Mortgage industry professionals will gather once to praise the achievements of their peers and industry leaders at the Awards Gala in May 2013. Each year, an estimated 600 guests attend the awards festivities. Goode who has been on numerous local boards and committees as well as having been our Past President for the Orillia and Area Chamber of Commerce is no stranger to such invitations, having penned articles for the National Post, the Globe and Mail and sitting on advisory boards for Lenders, says that this is special opportunity to speak to his experience specific to the smaller market of Orillia. The importance of integrity, connecting with the community and becoming a partner in advocating for the area and the benefits to living in the region, contributing to the betterment of the area in which you live and work.  Mark Goode AMP has been a leader in the mortgage industry and has a long list of accomplishments including holding his place in CMP’s 75 Top Brokers since inception in 2004, being voted Orillia’s mortgage Brokerage of choice, and Orillia’s finalist business leader of the year for 2012. Mark has been an active board member for the Hospital, Lakehead University, Georgian College as well as both the Community Development Committee, the Economic Development Committee to name just a few. Goode’s office rebranded to Mortgage Man Dominion Lending Centres in 2012 with Don Cherry as their spokesperson. Mark’s Office team consists of Brad Day mortgage Agent and Underwriter, Lynn Bayne mortgage assistant and Corin Payie Marketing Manager, who are happy to see you at their 180 Memorial Ave. location across from Hill’s Restaurant.  Mark resides in Orillia with his wife Vicki and their son Mitchell.

The Mortgage Summit

 

 
Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6

    â€¨
*All credits and copyrights to their respective owners on reposted articles. 
 
Corin Payie MMDLC



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Orillia’s Mortgage Man is called to Speak to Industry Leaders.

General Mark Goode 15 Apr

Orillia Ontario April 11 2013

Orillian Mark Goode AMP to speak among industry leaders at this years Canadian Mortgage Professionals Mortgage Summit in Toronto May 9 & 10 2013.

Goode who has been on numerous local boards and committees as well as having been our Past President of the Orillia and Area Chamber of Commerce is no stranger to such invitations, having penned articles for the National Post, the Globe and Mail and sitting on advisory boards for Lenders, says that this is special opportunity to speak to his experience specific to the smaller market of Orillia. The importance of integrity, connecting with the community and becoming a partner in advocating for the area and the benefits to living in the region, contributing to the betterment of the area in which you live and work.

Mark Goode AMP has been a leader in the mortgage industry and has a long list of accomplishments including holding his place in CMP’s 75 Top Brokers since inception in 2004, being voted Orillia’s Mortgage Brokerage of choice, and Orillia’s finalist business leader of the year for 2012. Mark has been an active board member for the Hospital, Lakehead University, Georgian College as well as both the Community Development Committee, the Economic Development Committee to name just a few.

Goode’s office rebranded to Mortgage Man – Dominion Lending Centres in 2012 with Don Cherry as their spokesperson. Mark’s Office team consists of Brad Day Mortgage Agent and Underwriter, Lynn Bayne Mortgage assistant and Corin Payie Marketing Manager, who are happy to see you at their 180 Memorial Ave. location across from Hill’s Restaurant.

Mark resides in Orillia with his wife Vicki and their son Mitchell.  

The wonderful world of Mortgage Penalty Calculations. Or Why you should not be Thrilled a bank will match your Broker’s Rate.

General Mark Goode 1 Apr

Why you should not be Thrilled that a bank will match your Mortgage Broker’s rate…

In short, the penalty. The penalty to pay out your mortgage early will be calculated including charging you all the money you ‘saved’ from the rate discount. ~

 

Why Does Higher Posted Rate and More Discount Trigger Higher Penalty?

To many homebuyers and real estate practitioners alike, calculating your mortgage penalty, or called “bonus interest”, in breaking a fixed rate mortgage before maturity is a mystery. Believe it or not, many bank account managers don’t know the basis of penalty calculation. She will input your sale closing date in the system, print out an estimated penalty statement, but she will emphasize that it is “For Indication Only” and even highlight these 3 words with a yellow highlighter to protect herself/bank.

Penalty for variable rate closed term is easy: 3 months interest only.
If you break a variable rate closed term of $500,000 and your net rate is 3%, then your penalty is about $500,000 x 3% x 3/12, approximately $3,750. But there is a subtle issue if you never exercise this year 10% or 15% or 20% bank’s allowed maximum annual prepayment. Technically you can agrue that you pay the 10%/15%/20% one minute before you break the mortgage. Some banks automatically give it to you, some banks may not. But 10 out of 10 home sellers don’t know the subtle situation.

Penatly for fixed rate closed term is complex: Greater of 3 months interest (per above) and IRD Interest Rate Differential. What is IRD?
E.g. If you purchased a house on 4/22/2011 for $685,000, and you locked a 5 year fixed rate when the posted rate was 5.49% and you received a discount of 1.79% from your bank, or contract rate of 3.70% for maturity on 4/21/2016. If you sell your house and close it on 3/22/2013 when the outstanding principal balance is $500,000, then the bank will use today’s 3-year posted rate minus the original discount you received, and compare the calculated net rate with your contract rate, and multiple it with the no. of months from now till maturity, and the outstanding principal.
Is it still too complicated?

A) 3 months interest = $500,000 x 3.70% x 3 / 12 = $4,625.
B) IRD
(1) use today’s 3-year posted rate (3.55

 

%) minus 1.79% the original discount you received on 4/22/2011 = 1.76% calculated net rate
(2) compare your contract rate with the calculated net rate. If the latter is greater than your contract rate, then there is no IRD. But in this case, 3.70% minus 1.76%, the IRD is 1.94%. Your bank suffers 1.94% for 37 months because of your early termination today.
(3) calculate IRD penalty: $500,000 x 1.94% x 37 months / 12 months = $29,908.
I did one refinance from another bank 3 years ago and the client was charged with $30,500 penalty, very similar scenario.

Hence, don’t be happy if you get 2.89% today, because you have received a discount of 2.25%. If you sell your house 2 to 3 years later, you may port the outstanding mortgage to the new mortgage (if you buy again within a gap of 3 months, and if you are qualified again). But you should be prepared to pay a huge penalty. Of course if the rate rises by 2%, 3%, then there will be no IRD. But bear in mind the short term (1 to 3 years) posted rates are usually 1.50% to 2% lower than the 5-year rate. Check with your friends/clients, 1 out 3 or 4 clients who signed up a 5-year mortgage ends up paying penalty.
This accounts partially why Canadian banks do not want to lower the 5 year posted rate by 1% but offer you 2.25% discount. There are further implications… [To Be Continued]

Mortgage Man – Dominion Lending Centres | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 |
    
 All credits and copyrights to their respective owners on reposted articles. 
Article may have been altered or edited from Original Post LinkedIn.
Corin Payie MMDLC

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Thank you all for voting us Readers’ Choice Mortgage Company of the Year again!

General Mark Goode 1 Apr

Thank you all for voting us Readers’ Choice Mortgage Company of the Year again!

We are happy to help you and are thrilled by your confidence in choosing Mortgage Man – Dominion Lending Centres
for your home financing. We are honoured and promise to continue to provide the same reliable informative and solid
mortgage advice and services you have grown to trust.

Mortgage Man – Dominion Lending Centres | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca

Posted: Corin Payie MMDLC
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Pre – Pre – Approval Quick Tip

General Mark Goode 28 Mar

 When entering into the loan process, it’s not in your best interest to go out on a shopping spree. No new car, new appliances, all of these very tempting ‘extras’ should be saved for after you have secured your mortgage and after you KNOW that you can afford them. You need to make sure you are not creating a negative impact on the score while the lender is reviewing it. Secondly, a Tri-Merge Credit Report. This combines the scores provided by (1)Fair-Issiac (FICO), with the score generated by (2)Trans Union (Empirica) and the Beacon Score produced by (3)Equifax. We are providing the lender with the rounded profile because these three scoring systems can vary in their results. The lender is going to look at the middle score and throw out the other two. This is, in many cases, a benefit to you.

Mortgage Man – Dominion Lending Centres | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca

Original Article credit to: Tim Braheem President, First Rate Financial Group, Westlake Virginia, Calif., 818/707-4131, E-mail: timb@firstratefinancialgp.com

Article may have been edited for content. Corin Payie MMDLC

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The Five Factors

General Mark Goode 28 Mar

What the credit scoring model seeks to quantify is how likely [you,] the consumer is to pay off their debt without being more than 90 days late on a payment at any time in the future.

Credit scores can range between a low score of 300 and a high of 850. The higher the [your] score is, the less likely they are to default on a loan. Only a very rare 1/1,300 people in the United States has a credit score of above 800. These are the people who walk away with the best interest rates. On the other hand, 1/8 prospective home buyers are faced with the scenario that they may not qualify for the loan they want because they have a lower score, between 500 and 600.

This score comprises five factors.
I will list these in order of importance, just as your underwriter will look at the score:

Payment History: 35 percent impact. Paying debt on time and in full has a positive impact. Late payment, judgments and charge offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment.

Outstanding Credit Balances: 30 percent impact: The ratio marking the difference between the outstanding balance and the available credit is important here. Ideally, the client should keep their balance below 10 percent of the available credit limit. Ideally, the client should keep their Balance of the body of the available credit limit.  

Credit history 15% impact: This marks the length of time since a particular credit line was established borrower is stronger in this area.

Type of credit 10% Impact: a mix of loans Credit cards and mortgages more positive than a concentration of debt from credit cards only.

Inquiries 10% of impact: This quantifies the numbers of inquiries that have been made on a consumer ’s credit history within a six-month period. Each hard inquiry can cost from two to 50 points on a credit score but the maximum number of inquiries that willreduce the score is 10. Eleven or more inquiries in a six-month period will have no further impact on the borrower’s credit score.

Mortgage Man – Dominion Lending Centres | FSCO# 12254 | 180 Memorial Avenue | Orillia, ON L3V 5X6 | Ph: 705-326-8523 | Fx: 705-326-8645 |  www.markgoode.ca

Article credit to: Tim Braheem President, First Rate Financial Group, Westlake Virginia, Calif., 818/707-4131, E-mail: timb@firstratefinancialgp.com All credits and copyrights to their respective owners on reposted articles. ~ Article may have been altered or edited from original. Corin Payie MMDLC

 

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