October Market Update

TSX UP 2.5%

DOW UP 4.33%

S&P 500 UP 2.22%

Happy Halloween everyone!

Hopefully you are slowly going through the candy you either bought, or are stealing from your children after they put in the hard work getting it ( excellent learning opportunity to show how taxes work).

The markets chose treat this month, and not a tootsie roll; they were giving out full size chocolate bars to everyone.  The Dow refuses to stay down amid another record breaking run. I had a lot of colleagues  calling for a crash by 20,000, but no one told the DOW as its well above 23,000. This rally has been powered by great earnings down south, as well as the proposed changes to the tax code that Donald Trump  is working on. If these tax cuts are passed look for confidence in the American Economy to sky rocket.

Also joining the record books is the TSX; Breaking through the 16,000 mark for the first time on the recovery of the energy sector and solid earnings from the banks.  While interest rates stayed the same it looks like the US is thinking of raising in December. This will depend largely who is appointed to be the new Fed Chair as well as if they want to stay the same course as Janet Yellen who in my mind did a fantastic job navigating the choppy waters. Shockingly the North American markets didn’t see any reaction to the chaos happening in Spain right now as the Catalonian government voted overwhelmingly to separate from Spain in an unrecognized vote of independence. Spain has chosen to not recognize these results and called in the army to handle the situation there. Spain is one of  Europe’s biggest economies, which Catalonia being the economic hub.  If they do end up doing a Brexit like move that might cause ripples in the Euro Zone.

As  always if you have any questions or concerns let me know!

Happy Halloween from my family to yours!

 

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave  604 897 2741 Jordi 604 615 1312
www.ChilliwackMortgageBroker.com

www.AbbotsfordsMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

Connect with us on!
BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office 

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp. 

Volatility

As an investment advisor it’s my job to know what’s going not only in the stock market but also news around the world that might cause ripples through a client portfolio. The first three hours of my day is listening to podcasts on top events, reading the articles and watching the market to see what the pulse of the portfolios my clients invested in are doing.  One of the biggest pieces of news is the constant predictions of doom and gloom in the market for whatever reason- people are much more likely to react to news predicting a stock market correction than their portfolio making another 3 % last month.

The recent election of Donald Trump as president has created a lot of volatility in the short term but also buying opportunities. Take a look at GM, Nordstrom’s, and Ford after he was elected for this volatility. President Trump tweeted out negative news for these companies and their stock value took a fast sharp hit in one day, only to regain its value a few days later. This can be stressful for the average investor; and may result in wanting to try and sell on bad news.

The stock market is unique in that when things get cheaper ( they go on sale) people freak out- if you were to walk into a car dealership and they said cars were 10% lower today then yesterday for the same car wouldn’t you want to buy one today instead of yesterday?  With all this volatility it’s more and more important to stay in contact with your financial advisor to explain why things are up or down and what this means for your portfolio. At Peak Securities my goal is to not only earn a steady return but to educate and inform my clients. If there is a problem in the market you will know what is going on and what the next steps are. With President Trump on twitter as well as news occurring all over the globe the prospects for volatility are a lot higher now than ten years ago, these spikes are usually short lived and having a long term strategy to take advantage of these spikes is a key to success.

If you have any questions or would like a review of your current portfolio feel free to contact me at testabrooks@peakgroup or 778-325-1373 / 780-709-1373

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave  604 897 2741 Jordi 604 615 1312
www.ChilliwackMortgageBroker.com

www.AbbotsfordsMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

Connect with us on!
BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office 

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp. 

THE CMHC “TAX” INCREASE

Today CMHC (Canadian Mortgage and Housing Corporation) an agency of the Canadian Government announced that they will be increasing their fees by over 10% in some cases on March 17th, 2017.

I would like to shed some light on the full situation and show you, in a round about way, why this is an increased tax to everyone with less than 20% down on a house.   That is correct, this only affects the people who have not been fortunate enough to save a large down payment.

What is the increase?

This is not the first increase. CMHC will have increased its fees 3 times in the last 34 months, raising it more the 45% for those with 5% down.

As you can see the current increase is across the board. The good news is that people wealthy enough to put 20% down can usually opt out of paying any CMHC insurance.

What will this cost you?

Thank you CMHC for this breakdown in your report, and breaking it down to the lowest common denominator to show us how little it will cost us (Someone really needs to create a sarcasm font).  

As you can see, CMHC tries to soften the blow by showing the effect in a monthly payment.  For example they said a $350,000 mortgage with 5% down will only cost you $6.59/mth instead of telling us we are going to pay an extra $1,977 over the full amortization of the mortgage.  It feels very similar to how car salesmen say “you can drive this car away right now for only $200/mth” without explaining the full ramifications!!

Why are they doing this?

OSFI (The Office of the Superintendent of Financial Institutions) another agency of the government says that it requires the mortgage insurers (CMHC included) to hold additional capital. Capital holdings create a buffer against potential losses, helping to ensure long term stability of the financial system.

CMHC recently did some stress test that included a US style housing correction, a major earthquake in a Canadian city, and oil prices dropping and staying between $20-$30 for the next 4 years. CMHC was able to withstand all of these.

In one case a CMHC test involved a “severe and prolonged” economic depression, which CMHC said would see house prices drop 25 per cent and unemployment rise to 13.5 per cent. The insurer said it would incur $3.12 billion in losses in that case.

How could CMHC afford losses?

CMHC is not a non profit organization. Here is the profit they reported over the last 5 years.

2015 – $1.4 Billion, 2014 – $2.6 Billion, 2013 – $1.8 Billion, 2012 – $1.7 Billion, 2011 – $1.5 Billion.

That is a total of $9 billion in profit over the last 5 years.

If they took a third of that profit and put it into a “rainy day” fund they would have enough to cover the future potential losses in a worse case scenario.

Why would CMHC not hold back money?

CMHC’s profit goes straight into government revenue. Do you know what else goes straight into government revenue…..taxes. Effectively CMHC is another form of tax for the government.

This is a quote directly from CMHC’s website:

“Over the past decade, CMHC has provided $21 billion toward improving the government’s fiscal position”.

So instead of holding an additional reserve with the profit the government is effectively raising the CMHC tax.

So you’re saying…….

After all of that I am saying that a decision by a government agency (OSFI) is forcing another government agency (CMHC) to increase their fees. These fee increases will create addition profit for CMHC which will go striaght into the government coffers.

You just got a tax increase.

 

 

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”
Dave 604 897 2741 Jordi 604 615 1312 www.ChilliwackMortgageBroker.com

www.AbbotsfordsMortgageBroker.com

www.BRMC.ca

www.PeaceOfficeMortgageBroker.com

Connect with us on!  BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp.

A side of BEACON with your morning coffee

Close-up Of A Businessman Checking Credit Score Online On Cellphone While Having Coffee

While sipping your coffee this fine Monday morning we thought we’d share the latest news on the big changes that have been made with credit A.K.A your BACON Score.

Although some have never really given their Beacon Score too much thought or concern when applying for credit or missing one cell phone payment, not until the need to borrow money comes up of course and are told you do not qualify due to these late payments and/or inquiries.

Below, we have listed just a few of the new beneficial rules implemented when it comes to your Beacon score.

  • People with less credit (IE One credit Card), traditionally got very low credit scores if a minor delinquency happened VS clients with multiple credit cards. Minimal Credit Consumers who are in-fact more conservative will be treated better and more fair!
  • For the first time, mortgage data is included in the calculation of the BEACON score. Previously good mortgage repayment did not help your credit which we deemed unfair and this is an appropriate correction.
  • Inquiries by lenders on your credit bureau affected your credit for 36 months. This has now changed to 12 months. A positive change for consumers
  • The impact of multiple Mortgage and Auto inquiries traditionally did not affect your credit if you did it over 14 days. That has been extended to 45 days giving you more time to shop for the best deal J

It is extremely important to know what will affect your credit.  Also these changes will help your credit score so that you don’t find yourself being turned down by a lender based on an isolated missed payment, lack of enough credit history or too many inquiries looking for the best deal. These are all positive changes.

We see all too often situations, when it comes to credit scores  negatively affecting people borrowing money. We are always here to help if you get negative feed back on your credit score – just call us to help. If you would like anything further explained or need a situation reviewed …

Call, Click or Chat with us anytime!

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave  604 897 2741 Jordi 604 615 1312
www.ChilliwackMortgageBroker.com

www.AbbotsfordsMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

Connect with us on!
BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp.

Top 3 equity-building renovation tips to tackle in the summer

 

Hey Chilliwack mortgage clients. With the market in a “boom” right now, upgrading and renovating are on all home owners minds. Check out this info from our Verico head office.

Are you ready to create some lasting memories now that the good weather days are returning?

No matter whether it’s enjoying the company of family or taking in the beautiful landscapes of Canada, there is always a little piece of paradise that can be found during those scorching hot days.

You don’t, however, have to travel very far to find your oasis. With a few renovations, you can create a world that reflects you and your family – and projects of this kind also help to protect your investment.

Renovations add value to your property,” says Sylvain Renaud, vice president, personal lines at Intact Insurance. “Before you do any renovation work, my first tip is to contact your broker to make sure you’re sufficiently covered.”

Here are three more summer renovation tips.

1. Driveway

If your driveway is pushing 20 years old, it’s probably time to redo it. The materials in asphalt start to fail over time and patching up spots is only a temporary fix for a bigger problem. Warmer months provide the perfect opportunity to create a smooth, bump free driveway, with time and high temperatures being key factors to avoid premature hardening.

2. Protect your basement from water damage

When refinishing the basement, make sure to deep-seal the concrete to prevent water seepage, water vapour and soil gases like radon. This can protect you from problems down the road.

3. Roof

Replacing your roof can save you money in the long run. Use materials that are resistant to hail and wind for both the roof and siding.

 

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave  604 897 2741 Jordi 604 615 1312
www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

Connect with us on!
 BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office 

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp. 

 

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