GTA Market Hit Hard By Plummeting Prices

May 28th, 2017 · Rental Property

While apparently the Vancouver market has recovered from the Foreign Buyer Tax a year later, I believe that the Toronto Market has to deal with a number of other significant blows simultaneously.

  1. Tightening of credit due to Home Capital Group
  2. Rent Increase Legislation Changes
  3. Change to Laws Regarding Owner Occupancy Re:Sales
  4. Mortgage Syndication Fraud
  5. Consumer Fatigue with High Prices
  6. Poor Economy reliant on us selling Real Estate to each other
  7. General Endemic Mortgage Fraud
  8. Bear Epidemic in Toronto

The bottom line is it won’t take much to topple this house of cards because the fundamental support required to sustain these house prices isn’t there. Incomes are not rising and we are facing a depression of catastrophic proportions because up to 25% of our economy is reliant on us selling real estate to each other.

There is nothing to this bubble except the consumer sentiment that house prices always go up.

I would also love to officially welcome John Pasalis to the darkside. It’s very bearish here. Follow him on Twitter @johnpasalis

Happy Sunday!

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Home Capital Group – Zombie – Not Dead – Not Alive

May 25th, 2017 · Mortgages

Earlier today I watched a special on BNN with Brian Madden and he said something intelligent. I like that, and I wish more people were being honest and straightforward instead of pumping the stock up.  A lot of people are pinning their hopes on Oaken Financial and Home Bank to be able to increase deposits with 3+% GIC’s and they are CDIC insured for principal and interest. So Brian says “Just because you’re insured doesn’t mean you should invest there, after all you don’t leave your house with the stove and oven on just because you’re insured” I have no idea what’s involved in a CDIC claim, but it’s going to be a pain in the ass. It’s insurance, and while it’s nice to have I keep my eyes open while driving.

Home Capital Under Fire For A Long Time

For many of us, it may seem like Home Capital Group just happened yesterday and is all over the news but really a lot of people have been watching them for a long time. Anyhow I came across another power point about them dating back to analysis in 2015.

HCG Chronology v2.pptx

These are very well thought out serious long standing issues that have never been resolved, until not with the HOOPP loan and the disappearing reserves. No amount of 3% GIC’s is going to fix that. If Home had spent half the time addressing the concerns and substantive issues rather than avoiding questions and scoffing at the short sellers the company might not be awaiting a bailout or a bankruptcy filing or OFSI takeover right now.

I’m sorry your dog has cancer Mr Soloway, but it’s time to put it out of it’s misery. When the tumor was small you ignored it and now that the tumor is huge and full of rot, it’s going to spray everyone in the vicinity.

Bye Zombie

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Mortgage Syndication Fraud & Why It’s Wrong

May 25th, 2017 · Mortgages

This is my attempt to explain what mortgage syndication is, how it works, and how it goes right and wrong. There is a lot of talk about the mortgage syndication fraud going on in the market right now and I doubt a lot of people understand what it is and how it works.  If you are currently involved in a mortgage syndication fraud please contact David Franklin at www.davidfranklinlaw.ca There are also a ton of other informative articles about mortgage syndication fraud.

How Mortgage Syndication works

First of all, unlike your house which is easy to get a mortgage on, there is a lot of property that is very hard to get lenders to lend on. For Example: land outside a major city, perhaps farmland that you want to make a subdivision on or an empty derelict property with potential.

Commercial property of any kind pays higher interest rates. Banks when they lend are more concerned with how much they would get if they sold it today, then any potential the property might hold.

In most cases the potential in the property might need to be unlocked with some money spent on the project. There is usually some entrepreneurial action involved in the venture.

For example, lets say I want to buy a parcel of land, with the view of eventually rezoning and creating a subdivision of houses. I might not have the money to buy it by myself or I may not want to lock up my money there. I might approach investors to help me purchase the property. Those investors might just give me the money directly or hold a mortgage on the land.  If 10 people each put in $500K we would get a lawyer to draw up the documents and voila a syndicated mortgage or lien against the land. Then I would be required to make payments just like a regular person does for their home.

If I am one of the investors, I am usually sophisticated, I would have my own lawyer look over documents, do appraisals, and generally make sure my money is in good hands. I would know going in that if the City doesn’t rezone, or market conditions change, or the property owner defaults, I could lose my money. Howeve; because I know the value of the property and the purchase price, I would be comfortable with the risks. Generally the owner of the property would have to offer a personal guarantee as well so if the deal doesn’t work out, I could force him to pay me.

The syndicated mortgage is a marriage of equals, people with money to spare, and people with a solid, vetted business plan/venture. Every party knows the risks and is able to do the due diligence required to ascertain their level of risk.

Mortgage Syndication Scams

All the mortgage syndication frauds involve cloaking of asymmetry of risk in an unequal relationship. This means one of the parties has a lot more information than the other. One of the parties will generally know more about the business than the other. One party will be more educated than the other. One party will have more access to professionals than the other. In most cases the mortgage syndication company will actually be offering an investor that has never had any other information or exposure to the investment. The relationship is more like teacher to student.

Generally the information will be provided to the investor and any professionals consulted will also be provided for free by the mortgage syndicator.  Appraisals, legal advice, accountants will all be part of the sales channels and carefully curated by the syndicator and given to you if you have any questions. You won’t have too many questions because the mortgage syndicator has approached you through a trusted person such as a mortgage broker.

A lot of these mortgage syndication “opportunities” come through a mortgage broker or exempt securities dealer. They are paid a 10% commission to find people willing to provide funds for different projects. It’s a pretty good payday but the problem is that the average mortgage broker also doesn’t know how to evaluate the quality of the different projects they might be offering. All they really know is that they are offering a mortgage that is secured against real property. All of the marketing material is of very high quality and emphasizes how this is a mortgage secured against real property and therefore safe and guaranteed.

Mortgage Security

You’re the lender but you’re bringing your assumptions with you. Typically the average person assumes that a mortgage is secured by real property. That’s because all of the mortgages you’ve been involved in your entire life are from the lendee side via a conservative lender, in a long term bull real estate market. Unless your house caught fire, your house went up in value for the last 20 years or more.  That’s why your typical interest rate for a residential house is so low. It’s been so long since the last downturn that even the banks don’t remember declining house prices. It’s been so long that the last time we had a downturn we still had 25% down payments.

Banks and other mortgage lenders have established systems to check if the properties they are lending on have ample security. For example: Mortgage of $800,000 on a $1,000,000 house. You as an individual have no access to the the software banks use. That’s if you could even use it to evaluate the property you are lending money towards. Software is very good at evaluating the 499th house in an existing subdivision, but not so good at figuring out the market value of an agricultural field in North Brampton that will eventually become 300 lots if the City changes it’s zoning.

So how will you figure it out? Because you’ve just become the mortgage lender now. In most cases you will rely on a document from the mortgage syndicator. Unfortunately that’s a terrible idea because in many cases, it’s a Letter of Opinion instead of an appraisal or an appraisal from a “friendly” appraiser. Don’t be misled by appraisal, they can be very wrong.

Appraisal is an inexact science, and what can be reached in an open market bankruptcy sale is not usually the same price as if the property would be privately marketed. You can be sure that the number on a mortgage syndicator’s Appraisal/Letter of Opinion is insanely optimistic.

Mortgage Position & Security

If you are lending on a property and you are lending in first position, that means you are the first to get paid back in the event of a sale of the property (forced or not) if you are in second position you are the second to be paid back. If you are lending in third or forth position, there is a chance your mortgage is not secured by the property depending on the sale price achieved. This is why these mortgages tend to be more expensive and ask for more personal guarantees from the owners of the property. Interest rates of 12% & 14% etc are not unheard of. Mortgages that may be unsecured have interest rates similar to credit cards that are also unsecured. Not surprising.

Where the Wrongness Starts

The mortgage syndicators don’t actually do too much. What they do is arrange the loan between the owner/developer of the land and the investor. However they have misled the investor into thinking the risk of lending is very small, when it is actually very big. In many cases the investor thinks his loan is secured by real estate, meaning that the property could be sold for them to recover their money. This is incorrect. The mortgage syndicator arranges a mortgage for the investor at a low interest rate of 8% but charges fees of 30-50% and pockets the difference. The investor has all the risk but the syndicator has most of the money.

Here is an Ontario Land Titles document for a site at Lake & East in Oakville and it’s a perfect example because the mortgages on this document were issued on the date of purchase. 20150528_ServiceOntario

This is not unusual for the mortgage syndicators involved in these deals but it is unusual for the transactions to be so blatant. If there is some time between the transactions, then the syndicators can always claim there was some property increase in value.

Here’s another title search from a project up by The Gore Road in Brampton. Gore Road Search It is currently zoned agricultural, however, there is a change to the Brampton City Plan that will allow this land to be rezoned in the near future. I can’t say how much the land is worth exactly, however, I would not want to be an investor in this project at 8%. It all depends how much the land would be worth on the open market as it currently is, in it’s current state of development. Currently the project is in the process of being subdivided into lots and there is a chance the project will be ok. The  price appreciation hides a lot of errors and has prevented a lot of lost investments.  The property’s current status is still a farmer’s field. The idea of risk is that at least some of these projects will fail. The idea of being a secured mortgage holder is that when the property is sold, the investor will get their money back. Unfortunately as illustrated by the examples above, some of these mortgages are not secured against property. This is the opposite of what the investor is told.

In most traditional projects these development costs would be borne by the developer/owner of the property. In some of these examples the owners of the project literally have no skin in the game. Some people think that’s a wise and smart way to conduct business. I think that I prefer when the investor and owner/developer interests align, and both parties lose when there is losses and both parties win when there is profits.

Mortgage Syndication Fees / Charges / Interest Hold Backs

Another fact that is not usually disclosed is the mortgage syndicator’s compensation structure, which is very lucrative for the syndicator and ends up leaving just a percentage of the amount invested to invest in advancing the project. The investor will not be made aware that 30% to 50% of their money just went to the syndicator as fees. The developer doesn’t pay the interest on the money either, it’s actually held back by the mortgage syndicator. Honestly, you’d get a lot more of these projects failing a lot faster if the syndicators didn’t do that, because land doesn’t produce income, so how are you going to pay a mortgage? Then at the end of the term, the capital needs to be returned to the investor.

Syndicated Mortgage Terms

The actual fees and holdbacks and costs start on page 4 good luck figuring it out. I couldn’t, all I know is that it was a lot of money that was paid out in fees and charges.

Now The Failures

The root of the problem is that a large part of the capital invested is never used to advance the project, the investors are not warned of the risks and when they are, they don’t invest. Recently in Alberta a giant property syndicator/landowner went bankrupt because of new more stringent disclosure requirements by the Alberta Securities Commission and Alberta real estate going down.  Additionally even collapsing under the accounting requirements of 600 different companies. Even though the form of this investment is slightly different the concept is the same, sell pieces of land/mortgages to people who don’t know the real risks and charge them fees.

Because land doesn’t generate income, as soon as the money raising and fees stop, the company folds.

This particular failure hit the CBC news and here’s the print article about it.

There is another similar project here in Toronto at Kennedy & Sheppard that has declared bankruptcy. It’s a seems like a virtually identical situation as the project in Winnipeg, still the original parking lot, but the investors have put a lot of mortgage money in, and the value of the land is in question. We will have the answer to how much the property is worth soon, because the lot was sold but we won’t find out the purchase price until the June court date.

Anyways, I’ve gone on long enough, if you don’t understand that investing in Syndicated Mortgages is another facet of the Bezzle in Canadian Real Estate (Bezzle = Quantum of Undiscovered Fraud) I leave you with the wise words of John Pasalis .

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Why Rental Condos are NOT a Solution to Affordable Rental Crisis

May 19th, 2017 · Landlord Advocacy, Rental Property

When I first got into this business, we had rental buildings and we did not treat our tenants very well. We had actual low vacancy and people had to save a 25% down payment which took them years and years. We did not maintain buildings because we could not increase the rent, and so the only way to make a little extra coin was to not maintain the buildings/common areas etc. I worked in a few buildings where the standard response to regular maintenance was to wait for the City to order the work.

Then condos came along and for the most part, people who wanted to live in an apartment lived there. They were really luxurious, had very nice amenities, lots of community space, decent square footage. You could be right downtown and not shovel snow. Most of these are extreme lovely buildings and gorgeous places to live. They were designed and bought by people who intended to live there. A good example would be the Empire Plaza downtown.

However today the maintenance fees for these lovely buildings is very high. The reason for that is that buildings cost a lot of money to maintain especially luxury buildings. If you are a condo owner where there is 200 suites, you own 1/200th of the boiler, chiller, roof, pool, common areas, office and none of those items are cheap and easy to maintain. Over time the true cost of building entropy is discovered. No more teaser $200 maintenance fees.

The condo structure lends itself to abuses. Property managers running away with the reserve fund, Condo Board members who don’t own units. An improperly run condo can be a nightmare of epic proportions. The poor unit owners have to pay. It gets even stupider when the condo board starts to wage wars on unit owners or litigate like morons without considering the cost to unit owners even if they “win”

When even Urbanation admits that condos are cash flow neutral the first year of release, you know we are in big trouble.

In fact the only reason for an investor to own a condo is to sell it after the price goes up.

We are so lucky that Mom & Pop & Foreign investors have provided this housing resource to tenants at great expense to themselves. Otherwise we would be in such deep trouble from the lack of supply of rental apartments.

Let’s face it, condos crack cocaine for developers. You build the building as cheaply as possible, sell units off and walk away. If something is wrong like say all the glass starts falling off the building, you just trust your property management buddies to cover for you (You got them the job in the first place) The individual unit owners are isolated and probably don’t have the deep pockets required to sue you for lousy workmanship or fraudulent advertising.

Compare this to a landlord who will contract you to build for them. You will have to build to their specs. I worked in rental buildings that were over 40 years old and we had to change the hot water pipes because they were worn out. Condos… one was 8 years old and all the pipes needed replacing. There’s a definite chance that the landlord will hold you accountable and not pay you if the glass starts falling off the building. You will definitely be sued. The contract between landlord & builder is one of equals. Usually the buyer of the condo is at a considerable disadvantage. They just don’t know as much as the developer, can’t afford expert legal help, and  the traditional pre-construction condo contract is completely in the developer’s favor.

I once knew this landlord, he hired a guy to pave his driveway and signed a contract that said they would install 6 inches of asphalt. The guy did a very nice driveway, but the landlord made a hole in it and discovered only 4 inches of asphalt in several spots. So he didn’t pay the contractor until he put the required amount of asphalt on his driveway. This is a guy you want in charge of the building of high rises that will be there for hundreds of years.

All this to say we need real rental buildings. Affordable living for regular people. Like the ones we used to build but newer, no security, no pool, and an illegal immigrant cleaning the hallways and a super being paid like crap.  One property manager for 10 buildings. I’m sorry people but you can’t afford to live in a condo. Most of you can only afford to live there because your landlord subsidizes your rent $500 or more per month and that’s for a very average building.

That is the facts. The numbers. I have had about 10 percent of my owners sell since the beginning of the years with another 4 listing this month. Every tenant evicted. This was terribly predictable and sad. Frankly a lot of owners kept hoping rents would one day rise enough for them to break even. With the introduction of rent control on all units, they know they’ll never break even. So cashing out is the only answer that makes sense. Kathleen Wynne & John Tory are philanthropists but how many non cash flowing condos do they “invest” in? None I’ll bet.

On the other hand the true speculators don’t care about rent or tenants or being good landlords. They just care about covering part of their expenses until they sell.

This is failed housing policy. They should write case studies about all the Failed Toronto Housing Policy. First of all it’s hard to believe there is a plan, but if there is, I’m pretty sure the planner was a squirrel on meth. While condos may provide some rental housing, it isn’t rental housing and it isn’t affordable.

For many years, the Canadian goal was to get everyone their own home, even poor people should live in palatial surroundings. The most overhoused people I ever met was an Indian couple in Brampton, they had a huge house with 7 bedrooms and only a couple rooms were even furnished. The sad part was that it was so cold they were wearing their winter coats inside to save because it was “too expensive” to heat their house. It was a lovely house but they needed a one or two bedroom house, not a huge 7 bedroom monster.

Since then I’ve seen a lot of young couples way overhoused in 4 and 5 bedroom houses in Markham & Vaughan & Brampton. They actually did need a condo and not 4000 square feet of “forever home.”  The skewing of our ideas about investment in housing is caused the lack of economy. The ridiculous amount of appreciation fueled only by ever increasing debt and our collective agreement that real estate acquisition is the pinnacle of Canadian achievement is a symptom of the problem.

This is wrong headed and foolish. You need a reasonable place with no roof leaks and heating. You do not require 7 bedrooms, 2 family rooms, one living room, one dining room, one large eat in kitchen and a main floor office, with 6 full bathrooms and two half bathrooms and a finished basement with fireplace for two small senior people or a young couple.

Meanwhile my friend Scott Terrio the bankruptcy trustee is tweeting stuff like this. Yes we are a hoot at parties, me with my eviction talk and him with his talk about the people who he sees (and saves) who are so mired in debt, they don’t know what to do next. Ok well maybe we don’t get out much, but he tells me he’s never been more popular. This is not a good sign people.

The point of all this blog post is that we need actual new rental housing for people who rent for whatever reason, like all those millennials who don’t want to give up their avocado toast for 587 years so they can save up a down payment to buy a house. Eventually all those old people are going to need to live somewhere. Last time I checked the monthly GAINS payments are on top of the federal Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) payments is a pittance and together that doesn’t quite pay the maintenance fees on a lot of condos although if you get a widows pension you might be able to rent a bachelor in Parkdale. The cockroaches are free and make a delicious and nutritious snack that is keto approved. There are other people who want to rent too, like students, or freshly divorced people, or people who work at a grocery store.

Condos are not the answer because they are not purpose built rental housing. It’s too expensive, unnecessary, and unstable as owner’s buy and sell and tenants are continually uprooted.

To be fair the city and the province did do quite a bit when they evened out the tax structure for condos compared to rental buildings. In the City of Toronto an old multi residential building pays 3 times the property tax burden as a similar condo. For new rental buildings that has changed, and there’s that minimal $125 million fund for development at the Ontario Government, but that’s a drop in the bucket. As a society we need to decide we need rentals because we need housing for many stages in our lives and not all those stages require a property purchase. Our government needs to acknowledge that condos were never designed to be rental housing and that the buildings don’t even function as a condo entity when too many uninterested investors own tenanted units.

Our emphasis needs to change and change fast, because we really need decent affordable housing for families and students and people in our communities. These days I’m renting a lot of nice mansions in the $2500-$3000 range. But a townhouse under $2000 was listed last Friday and rented by Sunday. We definitely need more supply of the under 2K three bedroom townhouses or even apartments.

Just to be clear I’m not talking about subsidized housing which is the purview of the City of Toronto Slumlord Toronto Community Housing Corporation. I’m talking about places for working families with kids and jobs that don’t pay that well. We can’t all be millionaires and we certainly don’t all start that way. There needs to be money for rent, food, toys for the kids, Netflix and maybe a latte or a glass of wine.

People do not need pools, security, concierge, fancy property management, and 24/7 cleaners. They can’t afford it and the cost of all that crap must come from rent. The idea of some philanthropist landlord coming in to save the day has a die a quick and humane death. You might be able to convince some stupid mom and pop investor to buy a condo, but every investor I worked for in the first 10 years of my career is out with pocket fulls of cash. Out. They won’t come back in until they can make money. Period.

I also want to point out that these landlords are not unsophisticated investors like these idiot home buyers/bag holders lining up in a frenzy in the outskirts of Brampton buying out oversized overpriced mansions on postage stamp sized lots. I remember, once getting annoyed because the owner of our building had to pay out 6% interest on last month’s rent deposits when you could only get 2% in a bank account, and he told me not to worry or get too angry on his behalf because he was making 12% in the stock market. Clearly these people have options, if you think for one second they’ll go back into the landlord business without making a decent return, I have some news for you. They’re not.

Fun Fact: The only reason to be a commercial landlord is to make decent return and it has to be relatively guaranteed. If every level of government does not accept and recognize and smooth the way to what should be the goal, we are screwed, landlords will not build and mom and pop landlords are selling and evicting at record levels. The tides have turned.

Ironically encouraging purpose built housing may actually smooth the economic disaster on the horizon.

Govern Yourselves Accordingly.

 

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What to do if you have a mortgage with Home Capital Group

May 18th, 2017 · Mortgages

You may have read a lot of stuff recently in the news about Home Capital Group. You have a mortgage with them. What does it mean? What can you do?

  1. Don’t believe the bullshitters like Stephen Poloz who say that it’s fine. Maybe it’s fine for him, but it isn’t fine for you. You may be in deep trouble.
  2. Home Capital Group will not be able to refinance your existing mortgage.
  3. You will pay more elsewhere if you can even get an elsewhere. Lenders are being more careful

The sooner you start the better off you are.

The bulk of Home Capital mortgages are one and two year terms, you need to start planning now. The optimum solution for you is to become the type of borrower an A lender will accept. You will get cheaper rates.

Sorry about the terrible quality but it’s a screenshot of a blog comment. (Thanks to Perpetual in Toronto for the picture)

“I can’t see how DLC (Dominion Lending Center) is or any other company is offering support. Business is not”as usual” for Home Trust and the money they claim to have in security means nothing as they cannot close a deal for me after issuing a commitment for $225,000??? The deal completed and instructions sent to solicitor and now I am hearing from them they likely will not have the money until June! I’m now scrambling to complete this deal with another lender before the clients go to the branch. Be careful with deals sent to HT…what does past lending experience have to do with what is happening now? ”

Home Trust is almost certainly history. Their latest company statements have said they may not be a going concern and that usually means bankruptcy. So you’ll have to likely move your mortgage elsewhere.

Prepare to Pay More

So it’s not dramatic but you may have to pay .25% or .5% more on your rate. If lending tightens up even more, you may have to pay even more interest.

Get In Touch With Your Broker

You’ll want to touch base with your mortgage broker. They will best be able to direct you. I know two good decent mortgage brokers. One is Bruce Joseph from Anthem Mortgage and the other is Jake Abramowicz of Mortgage Edge  They may be able to help and will be honest with you about your prospects.

My Friend – The Overextended Landlord

One of my friends called me the day after I mocked Stephen Poloz for saying the Home Capital Group is contained.

She’s a landlord and because she owns quite a few properties, her debt service ratio is not acceptable to a regular bank. In her lust for property she may have bought a few two many.

All her properties are cash flow negative because they are in the GTA area. However, I’m pretty sure she’s a paper millionaire, with the way home prices have gone up. What does that mean? She still shops at Walmart or cheaper because it’s all equity gains trapped in the houses.

She called and she has a mortgage up for renewal on her personal residence. She’s paying 3.99% and now she needs to renew at the end of this month. She got an offer for 4.25% and grabbed it on the advice of her mortgage broker.

Finally she promised me she’s going to sell 2 properties. In fact, she probably has to, because those properties are coming up soon for renewal. (We’ll see, she’s promised me before she was going to sell something) Problem is all the properties are cash flow negative except for the one condo she’s owned for over 10 years and the maintenance fees keep going up so it’s not cashflowing a whole lot.

My friend and her husband have good jobs and have never missed a mortgage payment. The problem is that with a new lender you will have to requalify. What if you declared bankruptcy or lost a job? This could cause problems. There is a possibility that some of you may have to sell your homes, or work hard to get a mortgage.

You want to plan ahead, touch base with your mortgage broker, maybe sell a property, consolidate your loans, shrink your debt and figure your shit out.

When my other friend lost his mortgage with Accredited in 2010 (Lender from the states that stopped renewing mortgages) he had 30 days notice and in his position it was not enough leeway to get him in a decent position. He wound up taking a mortgage from a private lender, and another mortgage from TD Canada Trust but ultimately his payments went from $1300 to $2000 per month and when he finally sold his house, he had to pay a $35,000 mortgage breaking fee for the private lender and he wound up with most of his equity gone.

Private Lending – Read the Fine Print

If it turns out that you need a private lender, people please read what you are getting into. Take that contract to a community legal clinic if you have to and have someone look over. There are a lot of predatory lenders who love when you mess up your payments. Seriously.

Don’t Wait Until the Last Minute

One of the things that upset me about my friend was that Accredited knew for several years that they were not renewing mortgages, like Home Capital they were a B lender, they could have sent out a letter letting people know a good while in advance, but they sent out letters just 30 days before the renewal. If my friend had more time to plan, he could have sold his house or found some better terms for his renewal. 30 days is not a long time when it take a few days to get an answer back.

For now, homeowners are getting mortgages elsewhere, a little more expensive maybe, but still getting there. You will still have to qualify and that is a big deal, some people like my friend may have had a serious important change in their circumstances. In his case he declared personal bankruptcy because he was sued by a person who claimed he had set their roof on fire. (He was a roofer) Other people may have lost or changed jobs or had another major change.

In the past your renewal was the worst rate you could be offered but as long as your payments were paid, you had the certainty you could renew your mortgage. Now that is not true. In fact, credit is almost certainly tightening, which may cause serious problems down the road. Certainly if you dream of buying an income property, or cottage you may just be dreaming. Which is not bad considering the prices are insane.

Don’t Panic but Get Thee To The Mortgage Broker ASAP

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