Avoid becoming A Pawn to RBC’s Realtor Promotion
Recently RBC announced that they will pay a Realtor $1000 to refer first time home buyers to them for a mortgage. RBC is Canada’s largest Bank and the largest provider of Mortgages in the country, but it seems they want a piece of the first time buyer business that Mortgage Brokers enjoy.
CMHC has shown that about 44% of first time buyers use Mortgage Brokers. No surprises here! First time buyers are generally computer and Internet savvy and they are comfortable getting their mortgage by using on-line applications. They often enjoy completing the transaction electronically just as a matter of not having to make an appointment.
Excerpt from Globe and Mail article:
The cash offer is part of Royal Bank’s referral awards program for real estate agents. The program allows agents to collect points for referrals that they can trade for things like plane tickets, merchandise, gift cards or charitable donations.
Royal Bank is not the only lender to have a referral program for agents; a number have created such programs. They are controversial, and provincial watchdogs have differing rules for them. The bank’s program is not active in Alberta and Quebec, and the bank requires all realtors who participate to sign an agreement that includes a paragraph saying they will disclose to the home buyers that they are receiving compensation “in the form required under applicable law.”
If you are a first time buyer how would you feel knowing that you are being guided to use a lender, not because it’s the best option for your mortgagee, but rather so your Realtor can receive a fee, or plane tickets, even gift cards?
Consider that as of the writing of this article on June 3rd 2014, RBC is offering 5 year fixed rate mortgages at 4.94% on their official website while we as mortgage agents are offering 2.97% for the same term. If you will consider a 4 year mortgage term we can also offer 2.77% as a rate special.
A Mortgage will probably be the largest debt that you ever have so be sure you get the right type of mortgage with the best rate and terms for your personal goals.
Contact us today if you’d like to talk about meeting your own needs. 866-452-1100 or Apply on line now! Avoid being a pawn at RBC!
CMHC to introduce more changes to Self Employed Lending.
Over the past 5 years we have seen options for zero down mortgage, no income qualified, options, 40 year Amortizations disappear from the lending landscape. And its about to happen again as even stricter rules come into play at the en of May 2014.
With this in mind, we want to share a valuable video with you. Food for thought if you will. Don’t be let down if you need a mortgage! Watch our video and contact us using the handy form below. We can help!
Don’t be Handcuffed by a Low Rate Alone!
You’ve heard the term, “Penny wise, pound foolish”. Never has it applied to mortgages more than in the current lending climate. Do you have an understanding of how a low rate can actually cause you to pay more for your mortgage? It’s true!
Take a moment to enjoy the video we’ve prepared for you. Shopping the Internet is an everyday way of finding what you want at the best price, but it only benefits you if you have the in depth knowledge of what you are really buying! Here at Mortgage Intelligence we are the experts when you need a mortgage and with over 50 Lenders to bring you the right balance of great rates and flexible features, you’ll reach your financial goals sooner.
Enjoy the show! Then contact us using the handy form below.
Real Estate Deposits. Everything you need to know!
There will be time when the lawyer for the seller will request holding the deposit and as long as the funds go into the trust account with the lawyer there is no problem. This might be the norm in a private sale. The seller feels secure allowing his lawyer to manage the deposit
What happens if you don’t complete your Real Estate transaction?
First of all, is there a reason why the transaction can’t close. ie: you can’t get financing due to your own credit or possible the value of the property is not supported. The home inspection reveals deficiencies beyond what the buyer is willing to accept and the seller is willing to correct.
Zoning that is not correctly represented in the Offer to Purchase can cause conditions not to be removed. In any event, its normal that if conditions are not all removed by the date set to do so, the deposit is returned to the buyer, with out interest or penalty once the General Release is signed by all parties.
If the buyer removes all conditions to the Offer and then decides for any reason not to close at the end of the transaction, the deposit can and often is tied up for long periods while damages are decided by the lawyers for the buyer and seller and sometimes even by the courts.
It is unusual for this to happen but when it does, it can create sheer havoc with the seller who has likely bought another home and must complete his own purchase. Imagine if the first in a line of four or five sales does not close on the date set for completion and a string of sellers and buyers all dependent on their own transaction completing and you have a disaster.
In cases such as this not only will deposits be held until resolution but damages will also be awarded to those who did not complete their transaction.
Signing an Offer to Purchase is a legal and binding contract, not to be taken lightly. Avoiding some of the pitfalls behind the offer can be avoided by using professional mortgage people, home inspectors and lawyers to complete your transaction.