Yikes, I really pissed the Banks off with this one…

As you probably know, Banks hesitate Dealing with retired individuals whose income may not be the best.

Try getting a mortgage after you retire.

Well, I pride myself on specializing in helping retired clients get the mortgage they deserve.

In fact I’ve even Helped My retired clients obtain a mortgage in on 2nd Vancouver property So if you know someone who’s retired and owns their own home please call me At 604-273-2002 Or on line.

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

As you may or may not know, because of recent concerns, CMHC has been placed under the supervision of the Office of the Superintendent of Financial Institutions.

I found the following article by Garry Marr of the Financial Post quite interesting -

With Canada’s dominant mortgage insurer running up against its massive coverage limit, the federal government appears set to announce Thursday how it will toughen oversight of the Crown corporation that buttresses the housing market and banking sector.

In late March, the federal budget took aim at supervision of Canada Mortgage and Housing Corp., which controls about 75% of the mortgage default insurance market. In Thursday’s budget implementation bill, Ottawa is expected say how this oversight will change.

CMHC now falls under the jurisdiction of the minister responsible for Human Resources and Skills Development Canada. But, as first reported by the Financial Post, Ottawa has been examining putting the Crown insurer under the direct supervision of the Office of the Superintendent of Financial Institutions — a powerful financial regulator with the power to enforce a broad range of actions.

The government said Wednesday it plans to introduce a law “to implement certain provisions of the budget,” according to a document known as the Notice Paper. Asked about the potential role of the Office of the Superintendent of Financial Institutions in overseeing CMHC, Jim Flaherty, the Finance Minister, told reporters “I’ll talk to you about that tomorrow. Tomorrow’s Thursday, right?”

CMHC is backstopped by Ottawa but is coming close to breaching its mandated insurance limit of $600-billion because of the red-hot housing market and so-called portfolio insurance for the banks.

It’s this portfolio insurance — also dubbed “bulk insurance” and often referred to as “commercial activities” by the government — that the Finance Minister is most concerned about.

While speaking to reporters in February, Mr. Flaherty criticized the extent to which this commercial function of the CHMC had commandeered its lending capacity and core function.

“The issue that pushes them near their lending limit is the desire of some of the financial institutions to purchase portfolio insurance for their low ratio mortgages,” Mr. Flaherty said.

“That’s not the way most people usually think of CMHC.”

Just three years ago, CMHC had $450-billion in loans it was backstopping and had to go to the government to get that increased to $600-billion.

The budget document itself provided few details about what action would take place, but suggested the government was concerned about the Crown corporation’s dealings with the banks and how it could affect the broader economy.

“The government will propose legislative amendments to strengthen oversight of CMHC and to ensure its commercial activities are managed in a manner that promotes the stability of the financial system,” the budget said.

There may also be details Thursday about a new covered bond program, which will be available to federally and provincially regulated mortgage lenders in Canada and administered by CMHC.

“A legislative framework will support financial stability by helping lenders find new sources of funding and my making the market for Canadian covered bonds more robust,” according to the budget.

The Finance Department said in a May consultation paper it was considering whether the law should encourage banks to secure covered bonds with uninsured mortgages. The federal government guarantees the full value of mortgages insured by CMHC and 90 percent of loans insured by private firms.

Let me know your comments below.

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

I just read a ‘Story’ here by Terry Campbell, the president of the Canadian Bankers Association, titled ‘The Real Story on Those Canadian Bank ‘Bailouts’.

A classic spin from a banker, to say the least, especially this line -

In order to make loans, banks need to first raise the money that they lend out. Canadian banks get about two-thirds of their funding from deposits — which is higher than in other countries and shows the strengths of our banking system — and the other one-third they borrow from other financial institutions around the world.

Mr Campbell, as the president of the Bankers Association, you should know better than anyone, Banks don’t “raise” any money. A Bank accepts a promise or pledge, aka contract, from a so-called borrower, and with that creates the “currency” .. with the flick of a keyboard. The “money” is the promise-to-pay, the ink on the paper. The currency is a debt. And the  interest, aka usury, is designed to keep the debtor busy paying it off.

The word “money” is defined in Federal statute as a “bill of exchange.” Currency, aka “dollars” are not found in this definition. Why? because, money and currency are separate and distinctive of each other. Find the definitions in  The Financial Administration Act, and The Currency Act.

Can you also clarify something else for me. You say “These mortgages were already insured and therefore, created no additional risk for the government”. I’m assuming you mean, because they were insured by CMHC, there was no risk?

The fact that CMHC has just recently been placed under the OSFI would indicate there’s quite a concern about the risk factor related to CMHC. A concern that is currently garnering much media attention. Yet in your “Real Story”, IT’S risk free? Have you checked the numbers lately? Check out CMHC’s capital and reserve numbers, not much of a cushion if you ask me.

Imagine for a moment if you knew you could lend money out with absolutely NO risk. Well this is exactly what Canadian banks do when they lend with CMHC insurance. The only problem is, the risk of loss ultimately falls on the Tax Payer.

If the market is so fantastic and as balanced as Flaherty says, why not let the banks take all the risk, instead of the tax payer.

Why should banks reap the gains while tax payers take the risk?

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

And that’s NOT a trick question.

As you know, it’s tax time.

In fact, the tax deadline has just come and gone.

There are some lucky ones out there who are expecting a refund.

The question is, what should you do with it?

Paying off high interest rate debt is always a great idea.

You may also want to check the bottom part of your recent NOA (Notice of Assessment). If you happen to have room to contribute to your registered retirement savings plan (RRSP), you can use your tax refund to contribute.

This in turn will trigger another refund on your next return.

Below is a mortgage refinancing Secret that forced CRA to send an $18,000 thank you cheque to our client. When we showed this mortgage refinancing strategy to financial planners, they were blown away.

Go ahead and see for yourself…

Let’s get you some cash…

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

With all the negative publicity lately about mortgage credit tightening, people sometimes think they can’t qualify for a mortgage so why try?

In fact, it’s often the case that people who thought they couldn’t qualify for a mortgage are actually able to buy a home.

For instance, not having a down payment doesn’t necessarily disqualify you from getting a mortgage and purchasing a home. It may mean a slightly higher interest rate. But with interest rates as low as they’ve ever been, a home buyer with zero down payment is still going to get an incredible interest rate when compared to what they could have got historically!

If you, or anyone you know is thinking about buying a home it’s worth exploring mortgage qualifications with an experienced mortgage consultant.

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

“Canadian Finance Minister Jim Flaherty plans to introduce legislation as early as tomorrow
that may contain changes to the oversight of Canada Mortgage &
Housing Corp. and rules governing covered bonds.

The government said yesterday it plans to introduce a law
“to implement certain provisions of the budget,” according to
a document known as the Notice Paper. Under parliamentary rules,
the legislation can be introduced in the House of Commons as
early as tomorrow.

In his March 29 budget, Flaherty said the government will
introduce “enhancements to the governance and oversight
framework” for CMHC, which insures mortgages and guarantees
mortgage-backed securities issued by banks.

Asked about the potential role of the Office of the
Superintendent of Financial Institutions in overseeing CMHC,
Flaherty told reporters “I’ll talk to you about that tomorrow.
Tomorrow’s Thursday, right?”

The International Monetary Fund has called on the federal
government to review the agency’s governance and oversight, and
assess whether the agency needs to do more to protect itself
against housing market risks.

The government is considering whether OSFI, the banking
regulator, can play a role in “strengthening the oversight of
CMHC’s commercial operations,” Chisholm Pothier, Flaherty’s
chief spokesman, said in an e-mail April 3. Pothier declined to
comment today on the government’s plans.

Covered Bond Legislation

Flaherty also said in the budget that he would introduce
legislation to govern covered bonds, fixed-income securities
sold by banks using pools of mortgages as collateral. The
federal government guarantees the full value of mortgages
insured by CMHC and 90 percent of loans insured by private
firms.

The Finance Department said in a May consultation paper it
was considering whether the law should encourage banks to secure
covered bonds with uninsured mortgages. If Canada barred banks
from securing covered bonds with government-insured loans, it
would raise costs for covered bonds because issuers would need
to pledge more collateral to gain AAA ratings.

Canadian banks increased issuance of covered bonds this
year before Flaherty’s fiscal plan. The lenders sold $12.6
billion in covered bonds in the December-March period, compared
with $6.6 billion in the same period a year earlier, according
to data compiled by Bloomberg.”

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

Initially, when the First Time Home Buyers’ Bonus was announced in the budget, it was thought to be an offset against income tax payable.

If that were the case, an applicant would only be able to benefit from this program by offsetting the bonus against income taxes that were paid.

We’re very happy to announce that this is NOT how the First Time Buyers’ Bonus works.

The Ministry of Finance tells us that the BONUS has NOTHING to do with a home buyer’s income tax return. The home buyer, assuming he or she meets the criteria, simply applies for the bonus and if they are eligible, the government sends them a cheque for the amount claimed.

The BC First-Time New Home Buyers’ Bonus is a one-time payment worth up to $10,000. BC residents who are first-time home buyers and who purchase an eligible new home after February 20, 2012 and before April 1, 2013 may be eligible for this bonus. The Ministry of Finance has posted the draft forms for the First Time Home Buyer Bonus.

You can find the forms here.

You can find the Eligibility Criteria here

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

You may be surprised to know this can really affect the mortgage approval process…

Vancouver mortgage broker Mark Fidgett warns clients that this can be a game changer.

This has caused many would be home buyers great problems when it comes to the mortgage approval process and the purchase of a home.

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

Would love your feedback…

Click the link below to view a PDF of the printed piece.

Bottom right hand side of screen, punch in Page 32

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002

“How Can I Help My Daughter as it relates to credit and mortgages”

This is a great question. Everyone needs to have the ability to borrow money. That’s true whether you’re a young adult starting out or you’re simply starting over after a bankruptcy.

Whether it’s getting a mortgage or simply checking in at a hotel, having credit is a must.

Unfortunately, young adults often face the same dilemma when applying for a job. That is, if you don’t have history you don’t get it.

So here are a few mortgage tips to help you kids when it comes to credit.

One of the easiest ways to establish credit is obtaining a credit card. If your child can’t get an approval on their own, a secured credit card is a great option.

This way you’re not really guaranteeing you childs credit, you’re simply assisting by putting up the cash to cover the credit limit. After about 6 months you can request that your security deposit be returned.

Another great credit and mortgage tip, is to apply for an RRSP Loan.

Most Banks will be happy to give your child an RRSP loan. This is because, Unlike other loans, you don’t get any cash because the funds remain with the bank.

You simply get an RRSP statement, but just as importantly, you’re establishing you credit, you’re saving for the future and you get a tax benefit.

Remember, having credit is one thing, BUT Managing it is key.

If you have any question, you know the drill 604-273-2002

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them! 604-273-2002