In March, Maclean’s warned that the Canada Mortgage and Housing Corporation, the quasi-governmental insurer that underwrites $500 billion of residential mortgages, answers to no one—not Canada’s top financial regulator or even the minister of finance. That all quietly changed last month when Ottawa passed a law that puts the CMHC strictly under the watchful gaze of both the finance minister and the Office of the Superintendent of Financial Institutions (OSFI).

With the new law, CMHC must hand over “prescribed books, records and information” and make those records available to the public. The legislation also allows the minister to set capital requirements and impose fees to compensate the government for the risks it assumes by backstopping mortgages.

CMHC has always said the money it sets aside to cover insurance losses exceeds that required by OSFI. But Finn Poschmann, a C.D. Howe researcher, told the House of Commons finance committee the new law is overdue. “There are a number of informal arrangements through which our oversight agencies are able to have a look at what it is that the CMHC does and the risks to which taxpayers are exposed,” he said. “However, it is an informal arrangement. It’s good to have this in legislation.”

It will be very interesting to see what if any changes take place.

If you’re wanting to do something, better get it done quick!

604-273-2002 or on the web

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on investment (ROI).

Here are the top four “renos for ROI”:

1. Building an income suite (also knows as a rental suite)
This is by far the most profitable reno a homeowner can undertake. You may want to look into refinancing. I think you’ll agree with me that taking cash out of your home to build an Income suite that typically has a 150% to 250% ROI sounds better than most major investments out there.

2. Painting
This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job are key. Ask me about a referral for this job. This simple reno project can give a 100% ROI.

3. Renovating Kitchens and bathrooms
Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. This delivers about 75% to 100% ROI.

New Flooring
This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors. New flooring can generate an avg. of 70% to 90% ROI.

Quickly fill in an application here and we can get you approved before the new limiting mortgage rules come into affect March 18, 2011.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

Don’t get me wrong, I’m not saying don’t apply.

I’m saying, don’t apply yet.

Do you suspect there may be an issue with your credit, if so, you’re better off pulling your bureau yourself. Your score will not be harmed by inquiries into your own credit report. Whereas, if you apply on line or in person, you have pretty much agreed to have your credit bureau pulled by a third party.

To have your credit pulled today only to be told that your credit’s not up to snuff, is less than productive. As per my previous blog on credit, frequent inquiries can have a negative effect on your score.

So what should you do?

Regardless of whether you suspect an issue or not, you should pull your credit at lest once a year. You may be surprosed to learn that almost 80 percent of people have errors on their credit reports, 25 percent of which are serious enough to cause a person to be turned down for a job or a loan.

Though your payment history accounts for about 35 percent of your credit score, late payments within 6 months have the greatest impact on your score. You might also be surprised to hear that collection companies are notorious for keeping poor records. If you have an account in collections, you might want to send a letter to the collection company asking them to provide verification that the debt in question is yours. If a collection company is unable to verify your debt, they must remove the item from your credit report.

If you think you may have a late payment or collection on your credit bureau, instead of applying, go to www.Equifax.ca and follow along with the video below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

Sure, you wish there were a few more zeros on there, but it’s the vanishing act that’s the killer.

Tax time is the worst, you can see how much money you made, but your credit card is still maxed and you don’t have much to show for all your hard earned income.

Are your credit cards floating near max?

Are you dipping into you overdraft?

Have you checked the interest rates on those cards lately? Add it up. You may be surprised how much interest you’re paying each month to carry that debt.

Imagine the 28% or higher interest that these credit card companies are charging, it’s highway robbery.

These types of debts are UNSECURED, hence the wickedly high rates.

Your house on the other hand is considered a very reliable security, so mortgages offer some of the best rates around. (Especially NOW)

You may already be seeing the benefit of taking advantage of these historically low rates to save a ton of interest charges. Do the math, compare current mortgage rates with the interest rate on your latest credit card statement.

Now imagine rolling all that debt into your mortgage. You consolidate your debt into ONE payment, save a TON of cash in interest and improve your cash flow.

And the kicker, you’re credit score will go up faster than ever before.

As an example, if you have a $250,000 mortgage at 5.5% plus high interest credit cards and other loans of say $30,000; your total monthly payment could be $2,426. Now if you took that $250,000 and added on an approximate $5,000 penalty to refinance your mortgage, you may be able to potentially roll it all into a new $285,000 mortgage at 3.64%.

AND if you do it before the new rules kick in, you may still take advantage of the extended 35 year amortization.

This will reduce your overall monthly payment to $1197.00.

That’s a monthly savings of $1229.

Your monthly payment has been reduced, you’re saving a ton on interest charges, and all of your high interest rate credit card debts are gone. Imagine if you funneled some of that cash flow back into your mortgage or invested it!.

You may want to call me before these rules change.

Remember, when it’s gone, it’s gone.

You will no longer be able to take advantage of the 35 year amortization or refinancing up to 90% of the value of your home.

Call me today at 604.273.2002

PS – This type of refinance can also be used to withdraw cash for investment purposes.

Please leave your comments below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

What’s the difference and why should I care?

You should care because The Median Sale Price can be quite different from the Average Sale Price. (As seen below)

I think the best way to show you the impact is with the following 9 purchase examples:

• $930,000
• $1,050,000
• $1,060,000
• $1,160,000
• $1,206,000
• $1,550,000
• $1,950,000
• $2,200,000
• $2,950,000

Let’s first talk about the average sale price.

The average is when we total up all of the sale prices together ($14,056,000) and then divide that by the total number of homes (9)

$14,056,000 divided by 9 = $1,561,778 Average Sale Price

So the above example reflects an average selling price of $1,561,778

Now let’s talk about the Median Sale Price.

Before we do that, let’s first explain how it’s reached.

The median price is that point where half the homes sold for more and half the homes sold for less.

Based on the example above, you can see that the median sale price is $1,206,000.00 (the number in the middle)

As to which one is better, I really think it depends on the range of prices in one paticular area.

But one thing is clear, the data can definitely be skewed BOTH ways.

Please leave your comments below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

You’ll notice in my video, the point of implementation is KEY

The ONE thing that can make the biggest difference in how successful you are this year is your ability to implement. (and when)

The difference between an average income and financial independence is IMPLEMENTATION.

As my friend Dean Jackson shows below, your ability to implement is directly linked to your ability to FOCUS on a single task.

Watch this video.

I guarantee it will change the way you think about getting things done…

Please leave your comments below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

News flash, each credit facility reports at different times of the month.

So, what does that have to do with it?

If you happen to pay your balance off in FULL on the 28th, but the credit company reports on the 27th, Guess what.

Credit utilization will be reported too high and you’ll be dinged.

What can you do about it?

Your credit utilization is your balance divided by available credit. It’s not based on whether you have a balance at the end of the month but it’s the balance outstanding at a given moment the credit is reported divided by your available credit.

1) Don’t exceed 50% of your available credit
2) If you must exceed50%, spread the balance between multiple cards.
3) Set up computer banking & pay multiple times per month

Please post any credit question you might have & I’ll do my best to answer…

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

In·di·an Giv·er n. (ca. 1848):  A Federal Government which gives something to another and then takes it back.

Wow, that sounds familiar, huh.

I guess All the HUGE FINANCIAL brain power that went in to extending amortizations to 40 years, was for not.

Latest word on the street has the Feds once again monkeying around with amortizations and Down Payments.

Lowering the maximum length of amortizations for a mortgage, down to 30 years from 35.

Not to mention the latest condo conundrum: rules now being discussed would add 100% of condominium fees to the list of expenses that are measured against income to decide whether a buyer can afford a mortgage or not.

Presently, only 50% of the fee is considered.

Can you say Condo Discrimination…

Then there’s the talk about upping the downpayment from 5%…

These moves have the potential to squeeze thousands of consumers out of the market.

Maybe ONE day the powers that be will wake up and speak to someone who actually knows the business and is in the business of providing mortgages.

Until then, I guess it’s simply “Shoot first, ask questions later”

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

A profound insight. Those of us in business love to pursue the latest innovation and pursue the hottest trend. Especially online, we are bombarded with a massive array of new ideas and mind-numbing messages. And yet, what I deeply believe is that enduring success in business and in life comes down to doing a few simple things brilliantly well. Things like delivering on your promises, adding superb value to as many people as possible, iterating on a daily basis, being optimistic + honorable, developing your team. And having fun. Simple ideas? Yes. Easy to execute on with remarkable consistency? No.

So as you wind down 2010 and welcome in 2011, may I gently challenge you to strip out the complexity from your work and home life and return to the handful of things that matter. Find some time to be alone. Pull out your journal. Write down all the things you need to say no to – so you can start saying yes to the opportunities that will make the new year the single best year of your life.

Leadership Quotes and Ideas

“Time invested in complaining is time stolen from creating.”
- Robin Sharma

“Never look back unless you are planning to go that way.”
- Henry David Thoreau

“Great minds have purposes – others have wishes”
- Washington Irving

Mark Fidgett
604-273-2002
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com

My eyes lit up.

Right up my alley, in fact, I even made a point of edging as close as I could without looking like a stalker. lol

I heard one gentleman say -

“It’s a recession.We’re cutting back. Even slashing our advertising budget. We’re racking our brains to see what else we can do to drive sales without spending too much.”

I politely interjected and offered this free tip which I’ll share with you below.

…Follow Up

Yup that’s it…

Follow Up

The group was astonished when I rattled off these facts.

Did you know,

• 48% of sales people never follow up with a prospect
• 25% of sales people make a second contact and stop
• 12% of sales people only make three contacts and stop
• Only 10% of sales people make more than three contacts

But here’s the kicker,

• 2% of sales are made on the first contact
• 3% of sales are made on the second contact
• 5% of sales are made on the third contact
• 10% of sales are made on the fourth contact
• 80% of sales are made on the fifth to twelfth contact

To make 2011 your BEST year yet, I challenge you to Follow-up, BUT not just once