“One area where the credit crisis is benefiting people is in the area of home buying. Unlike other markets that were fuelled by speculation, most people buying in Toronto were buying homes to live in them.

That’s why even though listings are up, they are not up to the extent of most other markets.

Combined with cheap interest rates, there is a unique buying opportunity for the courageous motivated buyer.

Last summer, mortgage rates were as high as 5.75%. A $400K mortgage would have cost $2500/mo.Now we can get you that mortgage for 4.75%. This mortgage would cost you $2270/mo. It doesn’t sound like much, but over the five years of that mortgage you would save almost $14,000.00, and that’s a lot of money” says David.

Of course, if you couple that with motivated sellers, and softer prices for buyers, opportunity knocks and don’t forget Sellers, most of you will be buying up which means you will win whatever you feel you have lost, when you buy! What a great opportunity!!

Over the years of my buying and selling, and that of my clients, I have established a very strong rapport with my Mortgage Broker. I can count on him to give me good advice, be conservative when I am on a flight of fancy, or feed me the realism that an insecure cockeyed optimist needs when I get down about my personal market exposure.

Good Mortgage Brokers are in the market and aware of it daily. They have access to many lenders and instruments and can shop around for the best rates and most flexible conditions, if required. They also are able to work in bulk and have been able, over the years to get me preferable terms that my bank would not offer me…till they realized I was going elsewhere with my business….Somehow it impresses me even less when that last minute offer comes from my bank or when a new manager appears to pitch me HIS mortgage services…

I encourage anyone buying or selling to find a good mortgage broker, ask your friends for referrals, especially when they have bought or sold a few times. Build a strong relationship with them… just like you do with your Realtor. Always ask them for their best and honest advice and make sure you give them all the pertinent information. It is hard to advise you unless you do…

Over the years David Smith has been my true love mortgage guy! He has given me great advice and our friendship has continued. I can confide in him and do when needed as I would my therapist but that is for another blog… 

At its conception in the early 1900’s it was a great boon for a young growing economy but what it has created is a Society that has flourished on great amounts of debt.

A Canadian will proudly tell you that their Mortgage is paid off, an American will look at the Canadian and wonder why they would do something so foolish. Why not use the equity to buy something else until there is no more equity left, just debt. Sadly, the Bush Government has been running the Country the same way.

Canadian Banks allow Buyers to borrow up to a 33% of their gross income; American Banks allow 60% due to the deductibility of Mortgages.

In the US right now 20% of homes for sale are in default, in Canada, 1/4 of 1% of mortgages are in arrears. Interest Deductibility was a great idea at the time; however, it is time for tough talk in the States.

The US is a great country and will weather this crisis but will it do so with quick fixes or can it get everyone back on track. If not, the American Dream may become a nightmare.