posted by Trusted Regina    |    January 17, 2012 16:47

Getting a mortgage can be a stressful experience, especially if you have your heart set on your dream home and are anxious about your application being approved. Focus Mortgage Solutions do things just a little bit differently than their competitors…here is the owner Jason Dornstauder’s latest Trusted Tip as a REGINA MORTGAGE EXPERT, as always it in his own entertaining words and style:

CHEAP MORTGAGE RATES..are they all they are cracked up to be?

I would like to share a mortgage tip with you ….with all the “2.99″ 5 year mortgages that are being offered by banks…people are getting to eager thinking that the rate is all that makes up their mortgage. The truth is, they are doing more damage than they could imagine!

Most people don’t realize the following:

1. The prepayment privileges are reduced from 20% to 10%.

2. The prepayment frequency is only a 10% increase to their monthly mortgage payment and a lump sum can only occur on the anniversary date…not a day early and not a day late.

3. The lender “handcuffs” the client with a clause that only permits the mortgage can be paid out if the client sells their home.

4. The lender has no obligation to renew or refinance the client for the entire term of the mortgage – and if a client should be late on their mortgage – the privileges they have (even though quite restricted) can be taken away.

We call these mortgages, “Mouse Trap” mortgages. The banks are cashing in on them because they offer a great piece of cheese and the public has no idea exactly what they are in for until it’s too late!

Most people only carry their mortgage for a 3 year period…and the banks know this – so handcuffing them for 5 years gives the banks more control over the client.

There are too many people that are being hoodwinked…it’s like buying cheap gas…eventually you ruin your engine!

Cheers! Jason

Don’t forget we have a mortgage for EVERYONE!

Jason Dornstauder AMP (Mortgage Broker Lic: 315761)

FOCUS Mortgage Solutions (Mortgage Brokerage License 315760)

You can Find Jason and the FOCUS Mortgage Solutions Team (Mortgage Brokerage License 315760) online at www.focusmortgagesolutions.com  , at 104 – 438 Victoria Avenue Regina,or check out their listing on TRUSTED in the REGINA MORTGAGE category …they are your REGINA MORTGAGE EXPERTS!

So, there is all this hullaballoo going on about Canadian Debt Loads – and whoa is everyone and doomed we all are. And the finger is pointed directly at MORTGAGES!

Let me weigh in on this – first off…your entire housing debt (Mortgage, Property Taxes, Condo Fees, and a Heat Fee) is restricted to 32% of household income. Of course some lenders will permit up to 44% (in cases where individuals have exceptional credit history).

My point is…there is no control over Loans, Credit Cards, Lines of Credit, Pay Day Loans, Instaloans, etc. But these are the culprits more often than not that are putting everyone in such a poor financial position.

So – the lesson here is that the Mortgage Industry are not the bad guys…we have low interest rates to keep things affordable, and we make sure that your affordability is firmly established. Not to mention – those of us who are Brokers are amongst the most regulated professionals in the Finance Industry as a whole…be confident in your AMP brokers…that stands for Accredited Mortgage Professional…these are the guys that have earned their stripes! Plenty of Compliance to maintain there.

Well – till next week…or whenever…have a good one!

oh…lastly – if you want to see something really groovy – take a look at our Trusted Regina page. Go to trustedregina.com and click on mortgages! Look and see what others have said about us! Woo Hoo!

When he took power in 2006, Stephen Harper inherited a thriving economy that was generating solid growth and more new jobs every year. Debt and taxes were falling faster than ever before. Annual surpluses were running at $13 billion per year. Our banking, housing and pension systems were secure.

Stretching forward five years, federal fiscal flexibility totaled $100 billion.

By 2008 – BEFORE the recession arrived – the Harper government had frittered those benefits away.

They needlessly hiked federal spending by three-time the rate of inflation. They recklessly ignored warning about housing and banking risks growing in the United States. They wiped-out all the contingency reserves and prudence factors that had been embedded in previous budgets as “fiscal shock absorbers” against nasty surprises. All of this – BEFORE the recession.

So when the downturn came, our country was already in deficit – quite unnecessarily. The recession made it worse, but the underlying problem was already there, after less than three years of Conservative rule.

it’s no comfort to say “we’re doing better than others”. That’s a mug’s game when those “others” are in decline. It doesn’t take much to look a little better against weak competition.

Claiming we’re the “least bad” doesn’t mean “we’re good”. It simply means this government has lowered Canadian standards. It means Mr. Harper is prepared to settle for much less than Canada once aspired to be.”

This article, as stated earlier came from a local politician. I won’t say who – as I don’t want to start any unnecessary feuding or political stand offs. I was simply intrigued by the article because it says out loud what many of us are afraid to say. That is, “this government has lowered Canadian Standards. It means Mr. Harper is prepared to settle for much less than Canada once aspired to be.”

I also like the part about how the government “ignored warnings about housing and banking risks growing in the United States.” Truth is truth – no matter who states it.

I have lost confidence in our current government. But as I said in my previous rants – I don’t think there is anything really that much better out there. I actually believe that our political parties act like nothing more than high school rivalries. They only care to beat each other at the election game – rather than actually doing what’s best for Canadian’s. We have lost our voice. How can we be heard??

I am open to suggestions!

Let me first take you on a little journey back in time…let’s go back to 2005. The New Conservative Party was in power and ready to make some changes that would have a GREAT BENEFIT to the future of Canadians. They gave us CHEAP and EASY Money with almost no end to our borrowing power. They gave us an eternity to pay it back too! UP TO 40 YEARS! Not to mention – they made it possible for Canadians to buy a home with NO MONEY DOWN (100% Financing)…and they would INSURE it! But wait – it get’s even better…they permitted that we could “STATE OUR INCOME!”…that means we could LIE to their faces…but they didn’t care. This was the dawning of NEW ECONOMIC GROWTH!

They paraded themselves through the streets as “advocates for Free Enterprise” – the FUTURE for Economic Privilege for All Canadians!

I was a little scared when this decision was made…I recall a conversation I had with a new client at that time and we both agreed it was like giving the keys to the family car to the neighbour’s irresponsible kid! Someone didn’t do the math.

In October of 2007 – they (our fearless leaders that is) realized their decision to provide access to this Cheap Money, and the eternity to pay it off, was quite premature and that maybe they (that too would be our fearless leaders) didn’t do enough research on it. They quickly made a Knee Jerk reaction and did away with the 40 year mortgage and the 100% Mortgage Financing…and they started asking for PROOF of our Earnings again.

Everyone got in an uproar. EVERYONE! Borrowers, Lenders, Realtor’s, Mortgage Broker’s, Lawyers, etc. At one point I think even our Neighbour’s irresponsible kid was in the uproar. Even with everyone feeling this “Blow” to the industry…somehow we adapted. Life went on.

Then, last April – the Fed’s stepped in again and this time they said we couldn’t borrower 95% of the value of our house…we could only borrow 90%! They also said we could only purchase up to 2 properties that they would insure…because too many people were buying Revenue and Rental properties under the old rules and that was just not fair for them to buy low and sell high! HOW DARE CANADIANS MAKE MONEY?!! SHAME ON YOU!

Guess what…just like in 2007 – Everyone got in an uproar. Yup – even the neighbour’s irresponsible kid. I hate that kid. But – just like before…we adapted and Life goes on.

Most recently the Fed’s stepped in again and said, “We Need To Get Tougher! We Have Done it Before…We’ll Do it Again – WE AREN’T AFRAID TO TIGHTEN THE RULES FURTHER!”. For those of you keeping score…this was in December 2010. Then in January, while I was away in sunny Orlando (I saw Mickey Mouse!) – our Fearless Leader’s did it again…they said that 35 Years is TOO LONG for Canadian’s to pay off their Mortgages, and said that 90% is TOO MUCH for Canadian’s to borrower against their homes…and also said that “Lines of Credit” are TOO RISKY to be insured.

They are now parading themselves through the streets for being Tough on the Mortgage Industry. They have effectively “marked their territory” as the Watch Dog on Consumer Spending and Borrowing…wait a minute. This must be one of those hidden camera TV shows…they can’t possibly expect us to believe that what just happened was a good thing…THEY WERE THE ONES THAT SET THE STAGE FOR THE INITIAL DISASTER!! They can’t rightfully take credit for cleaning up the mess they spear headed. Do they really think we are that Naive??

Apparently so! And can you guess what’s going to happen? Let me tell you. EVERYONE is going to be in an uproar again…even the neighbour’s irresponsible kid. But, like before, we will adapt – and Life will go on. Don’t worry – we’ll help you along the way.

…this is based on a REAL conversation I had while shopping for a few items at my local Sobey’s just the other day. In the end I politely dismissed myself and told them if they really wanted to know how I did it that I would be pleased to show them if they were interested in becoming a client! So far no calls!

But…the fact is, as of this morning I am STILL offering 3.59% (And Lower in some cases) for a 5 Year fixed Mortgage…while my competition is happy to hand out 3.69% and sever half of their earnings…we have decided to go a bit farther for your long term benefit! Call today! 877-75-FOCUS!

Tune in next time – hopefully I stay committed!
Cheers!

I have made mention on a number of occasions that this industry needs to be policed a lot better – and that we need to have stronger penalties for rogue brokers, realtors, and lawyers. I hope this is the wake up call that has been gone without for so long.
All in all, it’s a sad time for broker’s the whole country over – I am pleased however to announce that FOCUS Mortgage Solutions is Squeaky Clean. We stop fraud in it’s tracks.
We hold firmly that there is NO GREY AREA in the mortgage industry – that’s why our colours are black and white…we know other’s are exploiting loop holes – we have chosen to be better than that – we are setting the bench mark.
You can be confident when you choose a FOCUS Mortgage Solutions Agent – we really do have you as our focus – if we can’t get you a mortgage today, we work with you to help you get to the point where you can get a mortgage.

To stay current on Canada’s mortgage trends, I encourage you to visit www.canadianmortgagetrends.com often!

Cheers!
Jason Dornstauder AMP
FOCUS Mortgage Solutions Inc.