I had the pleasure of speaking with a potential client last week. We chatted about the usual -> interest rates, products, term, strategy, etc. A big concern to my client was the ability to build a relationship with a lender (big 6 bank) to gain some leverage in the future. Their thought process was the more business I do with my bank, the more "breaks" I will get from them.
That makes sense to me initially, but lets think about asking for and actually getting these 'breaks' or 'discounts'; probably in 20 years or so. Everyone should value their time. Do a simple calculation of dollars earned and time worked. Now think of the money you'll save vs. the time spent to haggle with at least 2 bank employees (do they really care?). Are you ahead? Are the waived fees on your foreign currency transactions worth an ego boosting conversation of how your mortgage, RRSP, checking and savings account are at this bank? Maybe? How many times do these employees hear this story? I would venture to bet the banks have scripted replies for their "valued clients" for such conversation (Am I being to one sided here? lol). Is the lifetime of mortgage negligence, inflated renewal interest rate letters and zero follow up worth building this relationship? There are safe, secure options out there; simply open your mind to them. The banks love to make themselves and shareholders money, its a numbers game. For every one story you hear of the banks favoring their best customers, imagine how many others are getting ran over and don't even know it.
I'd love to hear your story, good or bad, about your current relationship with your bank.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Twitter
FB Page
Tuesday, September 28, 2010
Wednesday, September 22, 2010
Self Fulfilling Prophecy
There seems to have been a shift in thinking in the Calgary real estate market. I think the root of the problem is consumer confidence. If you are putting off purchasing your first home because you're unsure of your income or employment situation, completely justifiable. Purchasing your first home is a large financial commitment and you have to be 100% ready to take on those challenges. However, if you are financially and emotionally ready to purchase your first home, but lack confidence in our current real estate market, this then becomes a "self fulfilling prophecy".
Here's what happens:
1. You hold off purchasing a home because you want to 'wait and see' where prices are in 6-12 months.
2. Because there are many people thinking this way (the herd) therefore sales slow, inventory rises, and sellers drop their prices to sell their home.
3. The media catches wind of this information (increasing inventory, decreasing prices) and reports it back to the market.
4. You now feel justified by holding off purchasing a home because everything you wanted to hear came to fruition. Now in your mind, you continue to wait, why not?
Do remember this; the media is a business and they generate income by selling advertising dollars to their clients. The more eyeballs on the screen, the more they can charge for advertising. Creating 'doom and gloom' or 'recovery' articles will attract the most attention. Read the article, not just the headline, and think about why they are writing this article and what information is in it.
So whats the point?
The herd mentality in 2006 & 2007 said it was a great time to buy. Now the herd mentality is saying wait until 2011 & 2012 to buy. Is the herd always right, no. Purchasing a home is a very personal decision and you must decide for yourself. Instead of me saying 'now is a great time to buy'; I am offering a real solution to your confidence issue = Buyer Protection Plan. With the right advice, at the right time you will make a better decision with more information.
Contact me today for my take on Calgary's real estate market.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Twitter
FB Page
Here's what happens:
1. You hold off purchasing a home because you want to 'wait and see' where prices are in 6-12 months.
2. Because there are many people thinking this way (the herd) therefore sales slow, inventory rises, and sellers drop their prices to sell their home.
3. The media catches wind of this information (increasing inventory, decreasing prices) and reports it back to the market.
4. You now feel justified by holding off purchasing a home because everything you wanted to hear came to fruition. Now in your mind, you continue to wait, why not?
Do remember this; the media is a business and they generate income by selling advertising dollars to their clients. The more eyeballs on the screen, the more they can charge for advertising. Creating 'doom and gloom' or 'recovery' articles will attract the most attention. Read the article, not just the headline, and think about why they are writing this article and what information is in it.
So whats the point?
The herd mentality in 2006 & 2007 said it was a great time to buy. Now the herd mentality is saying wait until 2011 & 2012 to buy. Is the herd always right, no. Purchasing a home is a very personal decision and you must decide for yourself. Instead of me saying 'now is a great time to buy'; I am offering a real solution to your confidence issue = Buyer Protection Plan. With the right advice, at the right time you will make a better decision with more information.
Contact me today for my take on Calgary's real estate market.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
FB Page
Monday, September 20, 2010
Value
Add 5 times the value people expect of you!
Since I have consciously decided to add more value to my business partners and clients, I have been using the word "value" more and more often. Similar to buying a new car, you'll notice that car everywhere on the road; I have noticed a lot of people saying they add value. But what does it mean? What is good value?
I believe good value is receiving more than what you expect. In an economic recovery, where competition is fierce and peoples expectations are changing, you need to add 5 times the value they expect. What do you expect from your financial planner, Realtor, mortgage broker; what do you expect from yourself? We all know, for the most part, what these named professionals "do", but are we adding value? If value is a personal expectation, then the perception of value is different for each individual. How does anyone insure we are always adding value then? We need to hold ourselves to OUR high level of expectations, which should be 5 times greater than what a regular (non-industry) person would expect.
Ok, how do I add even more value? Education!
If you can tell someone something profound or new or different, that changes their perspective and educates them, that is adding value. I believe in spending time with my clients, sharing my perspective on the mortgage industry and educating them. You can spend more time educating co-workers, staff, clients, friends or family. They will appreciate your time and information. Best of all... money is attracted to value!
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Twitter
FB Page
Since I have consciously decided to add more value to my business partners and clients, I have been using the word "value" more and more often. Similar to buying a new car, you'll notice that car everywhere on the road; I have noticed a lot of people saying they add value. But what does it mean? What is good value?
I believe good value is receiving more than what you expect. In an economic recovery, where competition is fierce and peoples expectations are changing, you need to add 5 times the value they expect. What do you expect from your financial planner, Realtor, mortgage broker; what do you expect from yourself? We all know, for the most part, what these named professionals "do", but are we adding value? If value is a personal expectation, then the perception of value is different for each individual. How does anyone insure we are always adding value then? We need to hold ourselves to OUR high level of expectations, which should be 5 times greater than what a regular (non-industry) person would expect.
Ok, how do I add even more value? Education!
If you can tell someone something profound or new or different, that changes their perspective and educates them, that is adding value. I believe in spending time with my clients, sharing my perspective on the mortgage industry and educating them. You can spend more time educating co-workers, staff, clients, friends or family. They will appreciate your time and information. Best of all... money is attracted to value!
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
FB Page
Monoline Lenders
Savings account please? Sorry, not available here.
By now you probably know, a mortgage broker works for you and not the bank. You may also have heard we have access to 30 or more different lenders; how could that be? Mortgage brokers have access to "mono-line lenders". These institutions deal in residential mortgages, for 'A' clientele. Some examples of mono-line lenders are: Street Capital Financial, First National Financial, Merix Financial or Mcap. Any of these institutions will lend to a qualified borrower, but they will not hold a checking or savings account for you. They strictly deal in mortgages.
Why would I submit your application to a mono-line lender and not a big 6 bank? The interest rate offered by different lenders at different times will vary marginally. I always try to find the best deal for my clients, so I will consider which lender has the best interest rate at that time. Based on what we discuss during your mortgage application, I will also consider the mortgage options important to you. Many people request pre-payment privileges, portability and assumability options. Having different mono-line lenders to choose from gives me the flexibility to tailor a mortgage product for you. Today I see a lot of "no frills" mortgages with ultra low interest rates. Be careful you completely understand what is in your mortgage commitment and how it may affect you in the future.
Remember, strategy will always beat rate. My Boomerang One Savings Strategy (BOSS) will solve problems you may not even know you have. This 'game' is all about perspective and information. If you would like a different take on your mortgage, email or call me anytime.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Twitter
FB Page
By now you probably know, a mortgage broker works for you and not the bank. You may also have heard we have access to 30 or more different lenders; how could that be? Mortgage brokers have access to "mono-line lenders". These institutions deal in residential mortgages, for 'A' clientele. Some examples of mono-line lenders are: Street Capital Financial, First National Financial, Merix Financial or Mcap. Any of these institutions will lend to a qualified borrower, but they will not hold a checking or savings account for you. They strictly deal in mortgages.
Why would I submit your application to a mono-line lender and not a big 6 bank? The interest rate offered by different lenders at different times will vary marginally. I always try to find the best deal for my clients, so I will consider which lender has the best interest rate at that time. Based on what we discuss during your mortgage application, I will also consider the mortgage options important to you. Many people request pre-payment privileges, portability and assumability options. Having different mono-line lenders to choose from gives me the flexibility to tailor a mortgage product for you. Today I see a lot of "no frills" mortgages with ultra low interest rates. Be careful you completely understand what is in your mortgage commitment and how it may affect you in the future.
Remember, strategy will always beat rate. My Boomerang One Savings Strategy (BOSS) will solve problems you may not even know you have. This 'game' is all about perspective and information. If you would like a different take on your mortgage, email or call me anytime.
Regards,
Chad
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
FB Page
Friday, September 17, 2010
Buyer Protection Plan
I am always striving to become better. I strive to improve myself to make others around me better. I believe in being the best, but even if you are, there is always room to improve.
There has been a definite shift in the Calgary real estate market in the past several months. We have seen variable interest rates increasing, long term interest rates decreasing, uncertainty in the US economic recover and a freaking media circus around everything. I am an industry professional and I am reading contradicting media reports every other day. I cannot imagine the possible confusion for a casual news reader.
I have chosen to take a proactive position in anticipation of a changing real estate market. I find there are a lot of Calgarians financially and emotionally ready to purchase a home, but are uncertain of real estate prices in the next 6-12 months. If you are one, nod your head; if you know one forward this blog post to them. At the end of September I will be rolling out a "Buyer Protection Plan". This plan has two parts: Part 1) My Boomerang One Savings Strategy (BOSS) which will protect you from increasing interest rates, future payment shock and inflation. This strategy is an absolute must for your next mortgage. If you do not have a plan or strategy in place NOW, register your mortgage renewal date with me @ yycmortgage.com. Part 2) Purchase the home you desire today and be protected from a 5% price decrease for one year! I can see the hamster in your head running full speed now, yes I said 5%. If you bought a $300,000 condo and the average price went down to $285,000 next year, you would be protected from that price decrease and get $15,000 back! I have hand picked exclusive Realtors, lenders, lawyers, and mortgage insurers to participate in this program. Don't worry about HOW I will be doing this; the details will be explained when you contact me.
If you (or anyone you know) are in the market to purchase a new home OR you are listing your home with no activity --> DO SOMETHING DIFFERENT. The BOSS and my Buyer Protection Plan are the answers to the problems you may not even know you have.
Contact me today
Regards,
Chad Moore
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Get on Twitter
There has been a definite shift in the Calgary real estate market in the past several months. We have seen variable interest rates increasing, long term interest rates decreasing, uncertainty in the US economic recover and a freaking media circus around everything. I am an industry professional and I am reading contradicting media reports every other day. I cannot imagine the possible confusion for a casual news reader.
I have chosen to take a proactive position in anticipation of a changing real estate market. I find there are a lot of Calgarians financially and emotionally ready to purchase a home, but are uncertain of real estate prices in the next 6-12 months. If you are one, nod your head; if you know one forward this blog post to them. At the end of September I will be rolling out a "Buyer Protection Plan". This plan has two parts: Part 1) My Boomerang One Savings Strategy (BOSS) which will protect you from increasing interest rates, future payment shock and inflation. This strategy is an absolute must for your next mortgage. If you do not have a plan or strategy in place NOW, register your mortgage renewal date with me @ yycmortgage.com. Part 2) Purchase the home you desire today and be protected from a 5% price decrease for one year! I can see the hamster in your head running full speed now, yes I said 5%. If you bought a $300,000 condo and the average price went down to $285,000 next year, you would be protected from that price decrease and get $15,000 back! I have hand picked exclusive Realtors, lenders, lawyers, and mortgage insurers to participate in this program. Don't worry about HOW I will be doing this; the details will be explained when you contact me.
If you (or anyone you know) are in the market to purchase a new home OR you are listing your home with no activity --> DO SOMETHING DIFFERENT. The BOSS and my Buyer Protection Plan are the answers to the problems you may not even know you have.
Contact me today
Regards,
Chad Moore
403-809-5447
chad@boomerangfinancial.com
yycmortgage.com
Get on Twitter
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