Shaun Serafini B.MGT's Blog

Mortgage Market Update -- Canadian Financial Institutions Rise Above Rest

Shaun Serafini - Mortgage Expert - All Source Mortgages — Sat, 28 Mar 2009 23:40:03 -0700

Well after all the negative press that the economy, both from a worldwide and a national perspective has received, it appears that Canadian Financial Institutions are still viewed as leaders amongst the industry and in a very strong position for rebound.

This article, from Globe & Mail on Saturday, March 6 shows how Canadian financial institutions are now being viewed with much envy as many other countries struggle to cope with the financial disaster that has developed across the globe.

Canada's banks are finally getting some respect.

Derided for years as meek and mild while banks around the world expanded wildly, suddenly the reputation of Canada's big lenders as prudent and sometimes downright boring has become an asset instead of a liability.

U.S. President Barack Obama has heaped praise on the management of this country's financial system. Ireland is considering overhauling its system to look more like Canada's. Financial papers around the world are running headlines such as "Canada banks prove envy of the world."

Since the credit crunch began in the summer of 2007, the Big Five banks have booked a total of $18.9-billion in profits.

Whether measured by market value, balance sheet strength or profitability, Canada's banks are rising to the top. Since the credit crunch began in the summer of 2007, the Big Five banks have booked a total of $18.9-billion in profits.

In roughly the same period, the five biggest U.S. banks have lost more than $37-billion (U.S.). One, Wachovia Corp., was forced to sell out to avoid failing. Another, Citigroup Inc., long the world's largest bank, may have to be nationalized and this week became a penny stock. The picture is similar in Britain.

The U.S. has spent most of the $700-billion the government earmarked for bank bailouts, and there are estimates that the final tally could be more in the trillions of dollars. The head of the Bank of England said last month that it's "impossible" to know how much money it will take to fix his country's banks.

Canada, by contrast, has not had to inject capital directly into banks, other than starting a program to buy from banks $125-billion (Canadian) of insured mortgages - any losses from which the government was already on the hook for anyway.

The reason comes down to a fundamental conservatism. From lending practices to bets on trading to financial reserves and takeovers, the Big Five banks have long tended to be more careful than their global peers. And when they did want to get aggressive, government and regulators held them in check.

"The Canadian banks were under a significant amount of pressure from both the analysts and the marketplace in general to be more aggressive in expanding into international markets, particularly the United States, and I think to some degree resisted partially because of a more conservative approach," says RBC chief executive officer Gordon Nixon.

Still, the industry has had stumbles, most notably Canadian Imperial Bank of Commerce's misadventure in derivatives, which led to a $2.1-billion loss for 2008.

And shareholders in Canadian banks have been battered. As a group, the banks' shares are down almost 50 per cent since Aug. 1, 2007, with most of the decline in the past six months as the economy worsened.

The concern weighing on these bank shares, for starters, is that profit growth in general is a thing of the past until the economy picks up. Most analysts say the banks' profits will shrink in coming quarters as more loans go sour and margins on lending tighten up. There's also nagging doubts that dividend payments are unsustainable and that something bad is still lurking on balance sheets.

More writedowns are likely in store for banks such as Toronto-Dominion Bank and Royal Bank of Canada, both of which made big acquisitions in recent years that now look overpriced.

Still, bank bosses such as Rick Waugh, CEO of Bank of Nova Scotia, say the banks are insulated from lingering problems because they have profits rolling in from many sources.

"We have made mistakes," he says, "but we made sure that we were well diversified."

That's a result of a conservatism not just among executives. That same approach extends to consumers, helping the banks sail along on the strength of their domestic lending businesses.

"You've got a more balanced cultural approach towards consumption and savings than we do in this country," says Charles Dallara, head of the Washington-based Institute of International Finance, and a former managing director at JPMorgan Chase & Co.

Much of that stems from the pain of the last recession. While the downturn of the early 1990s was short and sharp in the U.S., it was drawn out in Canada, leading to more of a social evolution, says CIBC chief executive officer Gerry McCaughey.

Former central bank governor David Dodge agrees. Canadian bank executives keenly remember that period, "and there was therefore perhaps a degree of prudence, a lack of aggressiveness, in comparison with major banks around the world," he said.

And he gives top marks to the Office of the Superintendent of Financial Institutions, Canada's banking regulator, for being more conservative than those in the U.S. or Britain. "I think that, from a regulatory point of view, you can say that the Canadian banks were more appropriately regulated."

The final key is the structure of the mortgage market.

While U.S. banks sold a large proportion of their mortgages, Canadian banks held the bulk of theirs on their balance sheets, giving them an incentive to make sure they were good loans. Riskier ones are backed by government insurance. And the law here makes it tough for consumers to walk away from a mortgage because banks can go after other assets.

Still, the banks are wary of getting cocky when a careful approach has worked well.

"It's a good thing for us to recognize the things we do very well, but maybe do it in what is appropriately a Canadian way - with modesty," said Bank of Montreal CEO Bill Downe.

______

Royal Bank of Canada

First quarter profit: $1.05-billion, down from $1.25-billion.

What's working: The bank's securities arm makes big bucks, and its huge retail bank in Canada generates steady earnings. RBC benefits from strong loan growth and expense control, notes UBS analyst Peter Rozenberg.

What's worrying: A foray into the U.S. leaves it exposed to the sagging American economy. Investors never like to see too much of a bank's earnings come from capital markets, because it's a volatile business. And while the securities division is doing well, it's also booking big writedowns. "RBC's Achilles heel, in Moody's view, is its U.S. operation," the rating agency says.

What the CEO says: "As a Canadian bank with global operations, RBC does have a competitive advantage relative to many of our global peers. The fundamentals of our domestic economy, while stressed, appear stronger than in Europe and the United States, having benefited from a public policy agenda that for many years valued prudent fiscal management."

Total assets: $713-billion

Tier 1 capital ratio (Jan. 31): 10.6 per cent

Provision for credit losses: $747-million, up from $293-million

______

Toronto-Dominion Bank

First-quarter profit: $712-million, down from $970-million.

What's working: Retail arm TD Canada Trust is a dominant force across the country. "The bank's sizable capital cushion, combined with the recurring earnings from its Canadian franchise, leave it well positioned to manage through a period of economic headwinds," says Moody's Investors Service.

What's worrying: TD expanded in the U.S. just as things were getting really bad. Now, the bank has the biggest U.S. retail banking presence of any Canadian bank - half of all the bank's branches are in the U.S. Plus, TD owns a big U.S. wealth management operation that may suffer as markets plunge. The consensus among analysts is that the bank's securities and trading side isn't big enough to make up for declining performance in other areas of the bank.

What the CEO says: "We are living in unprecedented times. So what we consider solid performance in the current environment is certainly not what we would be happy with in the long term. ... We are going to take some bruises if the situation gets worse, but we're still going to be able to deliver solid earnings."

Total assets: $585-billion

Tier 1 capital ratio (Jan. 31): 10.1 per cent

Provision for credit losses: $537-million, up from $255-million

______

Bank of Nova Scotia

First-quarter profit: $842-million, up from $835-million.

What's working: The bank's international business - the largest of the Canadian banks - posted a record quarter, and Scotiabank's reputation for risk management remains intact. The bank's securities and trading arm, Scotia Capital, had a near-record quarter.

What's worrying: Investors are leery of exposure to car loans and the auto industry. They are also keeping an eye on the bank's corporate loan book, the biggest of any Canadian bank.The bank's large international division, with a big presence in Latin America, was much more profitable than anticipated in the latest quarter, but the macro environment in Latin America has deteriorated in recent months, notes RBC Dominion Securities analyst André-Philippe Hardy.

What the CEO says: "The banking sector in Canada is still in good shape. Some say the best in the world. As a group, we are all very well capitalized by global standards. And Scotiabank clearly demonstrated this by the fact that we were able to raise more capital this quarter, all of it from the market, from private sources."

Total assets : $510-billion

Tier 1 capital ratio at Jan. 31: 9.5 per cent

Provision for credit losses: $281-million, up from $111-million

______

Canadian Imperial Bank of Commerce

First-quarter profit: $147-million, up from a loss of $1.46-billion.

What's working: Most of the big problems relating to exposure to subprime-linked investments are behind the bank, and its balance sheet is rock solid after raising another $1.6-billion of capital this week. Analysts and investors like the fact that its Canadian-focused business means bad U.S. loans aren't a big issue.

What's worrying: The bank is getting out of or cutting back in so many business lines to avoid problems that it's unclear where growth will come from. Investors worry that the bank is becoming so risk-averse that it won't be able to compete.

Its core consumer lending segment saw earnings decline 14 per cent in the latest quarter, due in large part to rising provisions for bad credit card, manufacturing and real estate loans, notes Blackmont Capital analyst Brad Smith.

What the CEO says: "Market conditions worldwide for banks remain difficult. Yet arguably one of the better places to be right now is in Canada. At CIBC, the majority of our revenue is derived from retail markets, where we enjoy strong market positions in a broad range of products and services."

Total assets: $354-billion

Tier 1 capital ratio at Jan. 31: 9.8 per cent (it's now a whopping 11.5 per cent)

Provision for credit losses: $284-million, up from $172-million

______

Bank of Montreal

First-quarter profit: $225-million, down from $255-million.

What's working: The bank's trading operations are buoying profit, and its retail operations are rebounding after lagging for years. A switch toward more profitable products, such as lines of credit, is helping the core operations churn out strong earnings.

What's worrying: Investors are concerned that trading profits can disappear fast, and the bank has a U.S. loan portfolio by virtue of its presence in the U.S. Midwest. There's also a nagging worry that the bank will cut its dividend that won't go away no matter how many times CEO Bill Downe says the payout is safe.

Credit Suisse analyst James Bantis is watching for rising credit losses in the $42-billion (U.S.) U.S. loan portfolio. He sees a large drop-off in the quality of the U.S. portfolio, which accounts for 27 per cent of BMO's loan book, compared to the Canadian portfolio.

What the CEO says: "Financial institutions everywhere continue to face headwinds in credit markets and the capital markets environment. BMO is well positioned to meet these challenges, having accessed markets to bolster our capital position and having further strengthened our strong liquidity in the period, albeit at a higher cost."

Tier 1 capital ratio at Jan. 31: 10.21 per cent

Total assets: $443-billion

Provisions for credit losses: $428-million, up from $230-million

Shaun Serafini is the Mortgage Development Manager (Mortgage Specialist) for All Source Mortgages, a mortgage brokerage serving Lethbridge and Southern Alberta. Please contact info@mygreatrate.ca if you have found this post useful or should you have any additional questions in regards to mortgage financing.

www.mygreatrate.ca

403-328-1564

Lethbridge Mortgage Blog -- Consumers Beware - Your Line of Credit may be Rising

Shaun Serafini - Mortgage Expert - All Source Mortgages — Fri, 27 Feb 2009 14:58:23 -0800

If you happen to hold an unsecure line of credit with a Canadian financial institution, you may be receiving some troublesome news - payments and interest could be on the rise. This increase is not due to the Bank of Canada raising the Prime rate however. Several of the major financial institutions in Canada are concerned that their earnings may be affected by the historically low interest rates that exist in the marketplace at present and are taking it upon themselves to change things, by increasing their own rates.

TD Canada Trust sent out a wave of letters to customers that hold personal credit lines last week. These letters informed customers that the fixed portion of their revolving credit line would be increasing. This means that even though a customer may have signed up for an unsecured line of credit at Prime + 2.0%, effective March 23 the interest rate will be moved to Prime = 3% or higher.

It's quite disturbing that in a time where we are seeing rising unemployment rates across Canada investment & retirement income seriously eroded that the banks would put an extra squeeze on their credit customers for the sake of the bottom line. Let's get something straight here, TD is not in a position where it is going to lose massive amounts of money because of the low level of the Bank of Canada rate. While TD might not be earning the same level of interest on the Prime rate sensitive products as it was before the credit crisis started, the truth is that the reason for the increase in interest rates is a means to put the company in a position to meet shareholders expectations. In a business that is all about the spread (what a lending institution pays for borrowing money versus what it charges for lending), TD creating a larger spread on these products by squeezing its existing customer base. And it appears that some of the other banks are considering doing the same.

There have also been rumbling in the financial world that suggest a few of the other major Canadian FI's are considering options including increasing their own Prime rate's in order to bolster profits. So while the Bank of Canada Prime rate appears to be staying at 3%, there is no guarantee that the banks will continue to honor this benchmark indefinitely. One thing that can be assured is that if one of the "Big 5" increases their prime rate, it's only a matter of time before the other banks look to do the same. You can bet that the first move will be monitored very closely by the others in the industry and barring a MAJOR wave of public outcry and backlash against the company that makes the first move, that others will follow suit.

What can you do?

There are a few options that you may want to consider should you have a personal line of credit.

#1) Pay down outstanding balance if possible

#2) Consider setting up a Home Equity Line of Credit (HELOC) rather than an unsecured line if you have significant equity in your home (Typically more than 20% or more). HELOC's normally offer much better interest rates as they are secured by a property.

#3) If you'd prefer something less risky than a line of credit that is affected by changes in the prime rate, you could refinance your existing mortgage and lock in a fixed rate. **Fixed rates are incredibly low at the present time. You can lock in an interest rate as low as 4.29% on a 5 year fixed term mortgage. This completely eliminates the risk of interest rate fluctuations for at least 5 years.

#4) If you don't presently own a home with more than 20% equity, you could consider switching from a line of credit to a monthly installment loan. You are giving up the flexibility of being able to adjust your payments, but ensuring that you know exactly what your interest and payment will be.

It should be noted that any credit product that is tied to prime could be quite risky to hold in the future. You can bet that once the markets begin to stabilize that the governments will look to recoup the money that has been used to stimulate the economy. One of the most logical ways to do this is likely going to be through significant increases in the bank rate and therefore prime rate. Lines of credit look very good now with a Prime rate of 3.0% but may not be as attractive should prime double or head even higher. While even the best economists struggle to forecast what types of prime rate movements will occur in the upcoming months, one thing is certain for this type of economic marketplace-it's better to know exactly what you have rather than speculate over where things could get to. As the saying goes, "A bird in hand is better than two in the bush!" It is recommended that unless you are in a position to adapt to potential fluctuations in interest rates over the next several months that you consider moving away from or hedge against products that are tied to Prime.

By no means am I advocating that folks close all lines of credit completely, in fact I strongly recommend that you maintain a line of credit as a "just in case" plan. It may be in a person's best interest right now however, to consider paying these down if you are in a position to do so or look at ‘safer' options until the waves of the recession that we are experiencing subside.

Please contact me at 403-328-1564 or email info@mygreatrate.ca if you have any questions in regards to the information contained in this article. I am always happy to look into individual situations in order to determine what the best situation is.

*Please note: The credit product in question in the preceding document are unsecured lines of credit offered by Canadian financial institutions. These differ from Home equity lines of credit which are secured by a charge on title of a property and therefore carry lower interest obligations (typically Prime or Prime +1.0%). To date, I have only witnessed adjustments to unsecured line of credit.

Unsecured Line of Credit - a line of credit that is not secured against a property or asset .

Interest Rates Dropping again

Shaun Serafini - Mortgage Expert - All Source Mortgages — Mon, 19 Jan 2009 08:54:24 -0800

According to globeandmail.com, Bank of Canada is preparing to decrease its key interest rate this week in order to provide stimulus to the economy. With unemployment on the rise and inflation quickly diminishing, economists widely expect the Bank of Canada to cut its key rate by half a percentage point tomorrow. Market analysts will then pore over the central bank's new economic outlook, to be released Thursday, for clues about whether the B of C will take rates even lower, perhaps even to zero.

Note: An adjustment to the Bank of Canada key interest rate will affect variable /adjustable rate mortgage products which are tied to this rate.* Fixed rate mortgages are not immediately impacted by adjustments to the B of C rate as mortgages of this type are tied to bond rates.

*Although many Canadian financial institutions base their own individual rate of prime on the B of C rate, it has become common over the past few months for most to delay passing on rate reductions to their customers.

Canadian Govt considering offering tax credit for home renovations

Shaun Serafini - Mortgage Expert - All Source Mortgages — Thu, 15 Jan 2009 12:07:24 -0800

Interesting news today that the Harper government has been floating the idea of a tax credit for home renovations. The thinking is this type of incentive could provide a significant stimulus for Canada's floundering residential construction industry. The idea also could serve as a significant boost to the much needed lumber and forestry sectors that have experienced major declines in demand since the US housing crisis and worldwide economy downturn over past 2 years.

From todays Report on Business (globeandmail.com)

Deliberations continue as Canada's premiers meet today in Ottawa to put the final touches on a budget request for Prime Minister Stephen Harper - one that sources say will include more cash for employment training, more benefits for the jobless and extra funding for infrastructure.

Finance Minister Jim Flaherty, meanwhile, has been conducting his own consultation on the looming budget, expected to deliver up to $30-billion in stimulus to soften an economic downturn.

During a closed-door session in Montreal last week, Mr. Flaherty asked participants' opinion on a partly refundable tax credit for renovations. Some economists among the more than 20 attendees criticized the proposal while representatives of the building-trades sector lauded it. Tax credits can be used to reduce the amount of taxes a person owes to the government, but refundable tax credits can benefit filers even if they have no taxes to be paid; in that case, they could get a refund based on the credit.

The federal Finance Department looks favourably on stimulus spending that helps builders, in part because so many of their materials are made in Canada. This ensures more benefits of stimulus spending remain in this country than if the money goes to taxpayers in the form of rebates to spur consumption. There's a good chance that consumer spending would leak the benefits of stimulus to foreigners: 50 per cent of durable goods bought in Canada are imported.

"[By] contrast, only 20 per cent of investment in residential and non-residential buildings is imported through such inputs as building materials," the Finance Department said in its recent paper on stimulus.

One important decision Mr. Flaherty will have to make should the Tories proceed with this idea is whether to offer a tax credit for home renovation in general, or merely for retrofits and upgrades that increase energy efficiency.

Toronto Dominion Bank chief economist Don Drummond said stimulus for home renovations would be helpful because there's a limit to how many public works projects Ottawa can kick start soon.

"There's only so much of the big infrastructure stuff you can get going in 2009 and 2010," Mr. Drummond said.

"We are past the peak of employment in the construction industry, and those people are going to be getting laid off."

One drawback of programs such as subsidies for retrofitting and house refurbishment is that they are typically difficult to administer, hard to monitor and susceptible to fraud.

In Ottawa, the premiers plan to ask Mr. Harper when they meet with him tonight and tomorrow for more infrastructure money and increased flexibility in spending it.

The Harper government has committed itself to $33-billion over seven years, and is pledging to accelerate that spending. But premiers want the government to add to the overall global total.

Governments also appear close to an agreement to streamline environmental requirements for infrastructure projects. Ontario is particularly concerned for Ottawa to find a way to increase benefits for the unemployed and not just money for worker training. Toronto wants more workers to be able to access benefits.

Premiers will not put a price tag on their requests. "Most premiers are not looking to jam up the feds and put an astronomical number they can't meet," the source said.

Canada's municipal governments yesterday released a list of more than 1,000 infrastructure projects that they say could start this spring if federal funds become available.

Combined, the projects would create more than 150,000 jobs, the Federation of Canadian Municipalities said in a release.

http://www.theglobeandmail.com/servlet/story/RTGAM.20090115.wcredit15/BNStory/politics/home

FREQUENTLY ASKED QUESTIONS - CANADIAN MORTGAGE SOLUTIONS

Shaun Serafini - Mortgage Expert - All Source Mortgages — Sat, 10 Jan 2009 02:04:20 -0800

Why use a Mortgage Broker?

•· Power of professional negotiating expertise.

•· One stop convenience for access to numerous mortgage products.

•· Unbiased knowledgeable advice.

•· Access to unadvertised rates.

•· Work for you, not the Bank.

What is the Homebuyers Plan?

•· Home Buyers Plan is a federal government program that allows homebuyers to use $20,000.00 for each purchaser from his/her own RRSP.

•· You must not have owned a principal residence within the last 5 years.

•· You must intend to occupy the home as a principal residence.

•· Minimum repayment is 15 equal annual installments. This schedule can be accelerated.

•· The funds to be withdrawn must have been invested into the RRSP for a minimum of 90 days prior to withdrawal.

•· You must complete a Form T1036 .

What should I expect for closing costs?

Closing costs are approximately 1.5% of the Purchase Price. .They may include the following depending

•· Appraisal Fee: $300

•· Survey Certificate (if applicable): $250

•· Home Inspection (if requested by you) $250

•· Legal Fees (approx): $750 - 1000

•· Tax Adjustment

•· Interest Adjustment

•· Property Transfer Tax (not in Alberta)

What type of income proof do I have to provide?

In most situations lenders require a comfort level that the borrower has sufficient income and cash flow to service the mortgage as well as any other obligations that they may have. The higher the Loan to Value (ie. mortgage amount vs. purchase price) the more important this becomes as the lender is placing less reliance on the value and equity in the property and more on the earning power of the borrower. The following is a summary of what Lenders require depending on what type of job you have:

Salaried Employees

•· Job Letter - Lenders use 100% of the income. Verification is made on company letterhead, signed by appropriate individual. If you are a recent hire, the letter should confirm that probation period has been passed. Bonuses, car allowances and other forms of remuneration should be mentioned if applicable.

•· Pay Stubs - Many Lenders will also require your most recent pay stubs.

Hourly Employees

•· Pay Stubs - showing year-to-date income verification.

•· T4's and/or Personal Tax Returns (T1 Generals)- 3 years to take an average.

•· Notice of Assessment - (NOA) - most recent to confirm no taxes owed.

Commission Income

•· T4's and/or Personal Tax Returns - 3 years to take an average.

•· Job Letter - confirming position.

•· Notice of Assessment (NOA) - optional depending on Lender.

Self-Employed

•· Financial Statements of Company - 3 years average of net income used. Depending on Lenders policies, The add-back of various personal expenses run through the company may or may not be allowed (eg.'s of allowable addbacks - Depreciation, Amortization, CCA (Capital Cost Allowance).

•· NOA's (Personal Notice of Assessments).

•· Personal Tax Returns ( T1 Generals showing personal net income).

Overtime - Will be used as long as there is a proven track record - 2 years evidence (T-4's). Bonuses - Once again a 2 yr track record required. Part-time Job - should be in place for a couple of years before using the additional income. Tips - generally not recognized unless declared for tax purposes. Car Allowances - This varies from lender to lender. Alimony and Support - Evidence that payments have been made regularly and a copy of divorce agreement is required. Investment Income - must be received continuously. This source of income is limited to interest, dividends or some type of ongoing revenue. Capital gains, which result from the liquidation of an asset is a 1 time occurrence and can't be used.

If you have any questions concerning a mortgage please contact Shaun Serafini with All Source Mortgages at 1-403-382-7882. I'm alway happy to help!

www.mygreatrate.ca

Silly me

Shaun Serafini - Mortgage Expert - All Source Mortgages — Sat, 10 Jan 2009 01:56:11 -0800

So after posting my blog yesterday talking about how I had just created my own neighborhood Face book page, I go and forget to post the link. You can trust me when I say that it wasn't for suspense or 'hyping' purposes.

I guess in all my haste to post about my new creation I forgot the most important part. As of right now the page has 6 members, all of whom were personally invited by myself (friends and folks I know in the neighborhood). As time goes on I really hope to see the group grow so we can learn more about our neighbors and enhance the community as a whole.

So I guess without further suspense the link to the much anticipated Copperwood neighborhood Facebook group.

http://www.facebook.com/home.php?#/group.php?gid=8981354843

Copperwood Facebook Group Created

Shaun Serafini - Mortgage Expert - All Source Mortgages — Fri, 09 Jan 2009 00:07:52 -0800

I took some time today to take some advice from a fellow Activerainer today and created a Facebook group for my community (Copperwood - Lethbridge). This is a very good idea in order to create a network of locals from the same community to discuss neighbourhood news and events, get to know our neighbours a bit more and perhaps even foster a few new leads in the process.

Facebook really is an amazing tool to not only network with friends, colleagues and former school-mates. It is becoming a habit for almost any daily user of the internet. The possibilities are endless. people can chat about safety issues, yard sales, home values and more. You could create a page for your book club or your bowling league -- the possibilities are endless!

Hopefully you will be able to use this information and create a group that applies to something of interest to you. Kind of like planting a seed and watching it grow.

If you happen to be a resident of Copperwood, by all means join the group and introduce yourself!!

And if you found this article interesting, check out http://activerain.com/blogsview/861618/FACEBOOK-2009-Five-easy-ways-to-maximize-your-visibility-interact-with-others

Cheers,

Email that made my day.

Shaun Serafini - Mortgage Expert - All Source Mortgages — Tue, 06 Jan 2009 18:52:48 -0800

Today I received an email out of the blue from a client that I helped with a mortgage in the early summer. The email was simply to thank me for the job that I did for her and her boyfriend when they purchased a home in order to relocate to a new city. It sure was a good feeling to know that I was still in mind almost half a year later. I will be adding this email to my testimonial section shortly.

It is situations like this that make the job that I do rewarding every single day. To be able to help folks achieve their home-ownership and financial dreams is not something that I take lightly. I hope all of my customers, past present and future know that I sincerely appreciate them allowing me to help them achieve their home ownership dreams and am always willing to help at any stage.

I love meeting with new individuals and being able to offer professional advice that may allow them to move into a better financial/personal situation than they were in prior to meeting.

My goal is to build lifelong relationships with all of my clients through premier service, integrity and product offering. It is too comman of an occurance in this hectic industry to simply sign paperwork and move on to the next lead.

I think we all can do ourselves a huge favor in taking the time to properly recognize each and every client, no matter situation/time of year etc. Obviously, if you do not do this, you may not be in the industry too long. Nevertheless, it's nice to be able to look back from time to time and know that there are people out there that are very appreciative when they receive extraordinary service.

Treat your clients like the rock stars that they are and the favor will likely be returned tenfold. I know this one simple email made me feel like a king and there is no better feeling in the world!!

Better Late than Never - Happy New Year

Shaun Serafini - Mortgage Expert - All Source Mortgages — Fri, 02 Jan 2009 21:59:30 -0800

Just wanted to take a few minutes to wish everyone a very safe, happy and prosperous new year! 2009 is going to be a great year! All the best gang!!

My resolution is to update my blog a lot more often this year!!

Cheers

Elk Valley Avalanche - A terrible tragedy for an amazing community

Shaun Serafini - Mortgage Expert - All Source Mortgages — Wed, 31 Dec 2008 00:11:38 -0800

Thoughts and prayers to friends and family members of the eight victims of the Avalanche near my hometown of Fernie B.C.. Due to the relatively small population of Fernie and Sparwood, these men were known throughout the valley. Several of my friends and their families have been directly affected by this tragedy.

I happened to know one of the victims personally, having played hockey with him throughout my teen years. It's been several years since I've seen him but I can say that he was a awesome guy and great team-mate. One of the fastest skaters around!

To everyone affected by this act of nature, try to remain strong and rely on your loved ones to help pull you through. It is truly a dark time.

Elk Valley residents unite to help these young families cope through this unimaginable sadness. May God be with you all!

Happy Holidays Everyone

Shaun Serafini - Mortgage Expert - All Source Mortgages — Wed, 24 Dec 2008 13:41:43 -0800

This holiday season, my thoughts turn gratefully to those people who have made my success possible.

It is in this spirit that I say thank-you and best wishes for the holiday season and a very happy new year.

May peace, prosperity and joy be with you all!!!

All the best!

Shaun

Equity & Vision mortgage programs suspended by another Lender.

Shaun Serafini - Mortgage Expert - All Source Mortgages — Wed, 24 Dec 2008 13:23:28 -0800

Equity (low documentation) and vision (damaged credit) mortgages became more difficult to obtain in Canada this week as Concentra financial announced that it was "temporarily" suspending these programs in response to the current conditions of the economy and credit conditions in Canada.

These types of programs are very important to customers who don't fit the traditional "A" lending requirements of most banks and institutions.

Equity programs allow for reduced amount of required documentation in underwriting a mortgage. Over the past few years, lenders have been willing to allow for less documentation in situations where there is sizable amount of equity (security) in a property. The thoughts behind this are that a person is going to be much less likely to walk away from their mortgage if they have a sizable amount of equity in the property. These programs are normally reserved for customers with very high credit score, but still allow for the best broker rates available in the industry.

Vision programs are also heavily based on sizable downpayment or equity in a property as well. These programs however are directed towards customers who have had credit problems in the past. Because the lender does not have a positive indicator as far as credit goes, the rates offered are normally higher in these cases. The thoughts behind these programs are that they offer customers a chance to renew a mortgage or begin to get back on the right track. There are many reasons for a person to experience credit problems and in many cases, it's not because the customer can not be counted on or is irresponsible with debt. Business failure, divorce, health problems and job loss are all reasons that a customer may go through a period of financial difficulty. It is important that programs exist to help a person re-establish their credit and work towards financial strength.

A Vision loan program in some cases may even allow a person to get out of a difficult financial situation without having to go through bankruptcy, which can seriously hamper future lending opportunities.

As an independent mortgage broker, All Source Mortgages has access to many lenders and the full realm of products. I still have access to various Equity and Vision programs through other lenders. I am able to provide assistance with any type of mortgage situation and always happy to offer a second opinion.

For more information on either of these mortgage programs or mortgage solutions in general, please feel free to contact me!

If you found this blog message useful / informative I'd love to hear your comments. If you didn't I would still welcome your comments, just go easy on me!

Tips for saving on your winter heating bill!!

Shaun Serafini - Mortgage Expert - All Source Mortgages — Thu, 18 Dec 2008 14:35:49 -0800

With the recent cold snap that we have experienced in the West, I felt that it was important to provide a few helpful hints to help enjoy a warmer winter and curb the evil heating bill!

#1 - Caulk (or re-caulk) around the frames of doors and windows with acrylic latex caulking.

#2 - Check for gaps and cracks around exterior light fixtures, outdoor taps and other through-the-wall openings. Insert pre-cut draft-blocking gaskets where required.

#3 - Install door sweeps and/or weather stripping on all doors to outside.

#4 - Turn down the thermostat when going to bed or when you will be active around the house. Make full use of your own energy to stay warm. The savings can be substantial, up to 10 percent with a nightly setback of 4°C. Programmable thermostats can be used to adjust temperature settings up to several times per day according to a pre-set schedule.

#5 - Keep your furnace clean and in good repair. It's a good idea to change your filter monthly during the heating season. Purchase these in bulk and mark scheduled change dates on your calendar.

#6 - Wrap an insulation blanket around your hot water tank to reduce heat loss from the tank.

LUCKY #7 - Curl or cuddle up in a blanket with your loved ones instead of turning up the heat. I guess I am a true romantic at heart!!

Stay warm guys!

Brought to you by Shaun Serafini - Mortgage Development Manager - All Source Mortgages

www.mygreatrate.ca

Ph: (403) 328-1564

Cell: (403) 382-7882

Fax: (403) 328-3687

"Helping You Find the Way Home"

Tips for saving on your winter heating bill!!

Shaun Serafini - Mortgage Expert - All Source Mortgages — Thu, 18 Dec 2008 14:35:16 -0800

With the recent cold snap that we have experienced in the West, I felt that it was important to provide a few helpful hints to help enjoy a warmer winter and curb the evil heating bill!

#1 - Caulk (or re-caulk) around the frames of doors and windows with acrylic latex caulking.

#2 - Check for gaps and cracks around exterior light fixtures, outdoor taps and other through-the-wall openings. Insert pre-cut draft-blocking gaskets where required.

#3 - Install door sweeps and/or weather stripping on all doors to outside.

#5 - Keep your furnace clean and in good repair. It's a good idea to change your filter monthly during the heating season. Purchase these in bulk and mark scheduled change dates on your calendar.

#6 - Wrap an insulation blanket around your hot water tank to reduce heat loss from the tank.

LUCKY #7 - Curl or cuddle up in a blanket with your loved ones instead of turning up the heat. I guess I am a true romantic at heart!!

Stay warm guys!

Brought to you by Shaun Serafini - Mortgage Development Manager - All Source Mortgages

www.mygreatrate.ca

Ph: (403) 328-1564

Cell: (403) 382-7882

Fax: (403) 328-3687

"Helping You Find the Way Home"

Sentimental Night

Shaun Serafini - Mortgage Expert - All Source Mortgages — Thu, 18 Dec 2008 01:02:24 -0800

Going a bit off topic on this one but thought I'd comment on the jersey retirement of one of my favorite players from my favorite hockey team. Trevor Linden was always a class act and while he may not have put up as many points as some of the games greats, he should always be held in similar regards. The ceremony that the Canucks organization put on tonight was fantastic.

Tips for saving on your winter heating bill!!

Shaun Serafini - Mortgage Expert - All Source Mortgages — Tue, 16 Dec 2008 13:54:17 -0800

With the recent cold snap that we have experienced in the West, I felt that it was important to provide a few helpful hints to help enjoy a warmer winter and curb the evil heating bill!

#1 - Caulk (or re-caulk) around the frames of doors and windows with acrylic latex caulking.

#2 - Check for gaps and cracks around exterior light fixtures, outdoor taps and other through-the-wall openings. Insert pre-cut draft-blocking gaskets where required.

#3 - Install door sweeps and/or weather stripping on all doors to outside.

#5 - Keep your furnace clean and in good repair. It's a good idea to change your filter monthly during the heating season. Purchase these in bulk and mark scheduled change dates on your calendar.

#6 - Wrap an insulation blanket around your hot water tank to reduce heat loss from the tank.

LUCKY #7 - Curl or cuddle up in a blanket with your loved ones instead of turning up the heat. I guess I am a true romantic at heart!!

Stay warm guys!

Brought to you by Shaun Serafini - Mortgage Development Manager - All Source Mortgages

www.mygreatrate.ca

Ph: (403) 328-1564

Cell: (403) 382-7882

Fax: (403) 328-3687

"Helping You Find the Way Home"

New Mortgage Rate Update

Shaun Serafini - Mortgage Expert - All Source Mortgages — Mon, 15 Dec 2008 12:14:47 -0800

Here is a summary of All Source Mortgages best available interest rates vs. Major bank posted rates and cost savings on a mortgage of $250,000.

Are you sure that your bank has your best 'interest' in mind??

Contact me today for a free, no obligation comparison!

	All Source Mortgages	Bank Posted	Monthly Savings on $250,000
1 year	4.35	5.60	$178
2 year	5.05	6.25	$175
3 year	5.15	6.25	$161
4 year	4.89	6.09	$174
5 year	4.99	6.75	$260
7 year	5.80	7.35	$236
10 year	5.95	8.25	$356
Adjustable	Prime plus 0.6%	Prime plus .6%	$0
* Rates as of December 15, 2008

An early Christmas present for Variable Rate Mortgage holders

Shaun Serafini - Mortgage Expert - All Source Mortgages — Mon, 15 Dec 2008 11:34:55 -0800

Tough economic times continue to benefit adjustable and variable rate mortgages.

On Tuesday the Bank of Canada reduced the key lending rate by three-quarters of a percentage point in response to the world economic slowdown. It was widely expected that the rate cut would be .50% but the central bank surprised many by slashing .75% off of its trendsetting interest rate. In response, Canada's major banks have cut their prime lending rates by half a percentage point, to 3.5 per cent, rather than following with a full three-quarters of a point reduction. We are now seeing unprecedented low rates related to variable (tied to prime) mortgages.

The bank has now cut rates by 1 1/2 percentage points in the past two months, and indicated it will keep an eye on developments to decide whether more cuts are needed. The bank hinted that it may cut rates further at the next scheduled date of Jan. 20. "The bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve the 2 per cent inflation target over the medium term," a statement said.

Rising inflation is no longer an obstacle to more rate cuts, economists say, and the bank also signalled that its own outlook is for a lower rate of inflation than forecast just six weeks ago. The central bank's key rate is normally a benchmark for other rates of lending to households and businesses. However, those lending rates have not come down as steeply as the central bank's rate over the past year and a half, because of the global credit crisis.

Lender's Gone Wild

Shaun Serafini - Mortgage Expert - All Source Mortgages — Wed, 19 Nov 2008 13:58:07 -0800

Looks like the bad economy has caused one of my lender's to lose their marbles! For a very limited time, I have the following rates available on fixed, closed mortgages. If you are ready to pull the trigger or no somebody that may be, I'd be happy to see if I could save some money on a mortgage. These rates are unmatched right now!

1 Year Term 4.35%

3 Year Term 5.15%

4 Year Term 5.34%

Contact me today to find out more!

Don't have 5% Downpayment --There are still Options

Shaun Serafini - Mortgage Expert - All Source Mortgages — Sat, 08 Nov 2008 16:15:43 -0800

Recent changes in federal regulations on mortgages have eliminated the popular zero-downpayment financing programs that were available through the major mortgage default insurers.

This does not mean that you will be unable to purchase a home without a minimum of 5% downpayment saved.

All Source Mortgages uses several lenders who have options available even if you don't have 5% or more saved towards the purchase of a home. It is important that you get in touch with a mortgage professional in order to discuss all of your options.

Fast Facts about Downpayment programs offered by All Source Mortgages

Do I qualify for a mortgage with Less than 5% downpayment?

As long as you can prove a strong credit history IE: established credit history combined with strong credit score, you may be eligible for a cash-back or flex-down mortgage, essentially where the downpayment amount is borrowed.

What is strong credit score?

A credit score of 650 or above and minimum of 24 months of revolving credit (IE credit card/line of credit) is typically the minimum requirement used to qualify for these types of programs.

Does "Zero-down" mean that I don't need any money saved to buy a home?

Lenders will still require you to prove savings of at least 1.5% of the purchase price of home. This amount is to verify that you will have enough money on hand at possession to pay for closing fees such as lawyer's fees, property tax adjustments etc. Ask your mortgage broker or lawyer for a complete list of expected costs of purchasing a home.

I have a few credit "issues", but would still like to purchase a home.

We do have access to lenders that are willing to provide mortgage financing even if you don't have A credit. In cases where credit score is under 650, the rate that you will be offered and downpayment amount will likelybe related to your credit score. Typically, the lower the score, the higher the rate due to the risk associated with the deal. It is best that you discuss your credit history with your Mortgage Development Manager in order to determine your options.

For more Mortgage Solutions please contact Shaun today!!

CMHC 2009 Interest Rate Forecasts - Posted Nov 4/08

Shaun Serafini - Mortgage Expert - All Source Mortgages — Tue, 04 Nov 2008 17:55:36 -0800

Mortgage rates are expected to be relatively stable throughout the last quarter of this year, remaining within 25-50 basis points of their current levels. Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases. Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.

*Note: Interest rate estimates are merely projections and not guaranteed. It is important to consult a mortgage professional if you have questions.

Reminder On Zero Down Mortgage & 40 year Amort. Deadline - Oct 15

Shaun Serafini - Mortgage Expert - All Source Mortgages — Tue, 09 Sep 2008 14:38:22 -0700

Effective October 15, 2008, federal regulations will no longer allow for insured zero-downpayment mortgages or amortizations over 35 years. This change may make it more difficult to become a homeowner.

While some lenders have already stopped offering these products, We are in business to do business. I have several lenders who will welcome applications for zero-downpayment purchases and 40 year mortgages right up to the deadline. Don't put off being a homeowner because you don't have 5% downpayment or more. Call Shaun Serafini today to find out if you can be approved for a zero-down mortgage!

100% Financing (zero downpayment) still available on approved credit!
40 year amortization available (keep monthly payments low)

First time home buyers are always welcome!! It's important to fully understand what you're doing when purchasing your first home. I will take the time to meet with you and discuss all aspects of the financing and purchasing process to ensure that you are as comfortable as possible with making such a big decision. Pre-approvals can cap an interest rate for up to 120 days while you look to find the home of your dreams. Shop without the pressure of rising interest rates! If rates go down during your pre-approval period, you still receive the lower rate!

A pre-approval can be arranged over the phone, via email or in person. The application should only take about 20 minutes. Know how much of a mortgage that you qualify for before you go shopping! Referrals are always appreciated!! It is the highest honour that I can receive! Thank you!

Toll Free - 1-877-342-9246

Phone - 403-328-1564

Email - info@mygreatrate.ca

http://www.mygreatrate.ca

Areas of Expertise

Purchase
Refinance/Renewal
Debt Consolidation / Equity Take out
Home Equity Line of Credit
Second Mortgage
Damaged/Poor Credit
Prior Bankruptcy
Commercial Financing

All applications are encouraged! Sign up for helpful mortgage newsletter by emailing info@mygreatrate.ca . Make sure to typethe word NEWSLETTER in subject of email.

If you want to compare a previous rate that you've been quoted or want a second opinion, I am always willing to help!!

New Website!!!

Shaun Serafini - Mortgage Expert - All Source Mortgages — Fri, 01 Aug 2008 00:13:16 -0700

I am happy to announce the launch of my new webpage www.mygreatrate.ca. This webpage will have several upgrades and features over the general All Source Mortgages company webpage. In addition to a catchy name that is easy to remember the website features the following:

Up to date mortgage market news & information
Link to Blog
Helpful Advice
Testimonials
Ability to link up for Live chat for on the spot questions.

Please take some time to check out the site!!

Shaun Serafini B.Mgt Mortgage Development Manager All Source Mortgages Ph: (403) 328-1564 Cell: (403) 382-7882 Fax: (403) 328-3687 "Helping You Find the Way Home"

Major Changes to Canadian Mortgages

Shaun Serafini - Mortgage Expert - All Source Mortgages — Sat, 19 Jul 2008 00:30:17 -0700

Major Mortgage Changes effective October 15, 2008
The Government of Canada recently announced major changes to the rules for government guaranteed (insured) mortgages. These changes are going to affect our industries quite significantly. The major changes set to take place October 15 stem from the fact that Government of Canada will no longer back the following mortgage options:

· 100% financing (5% will now be the minimum downpayment on any insured mortgage (CMHC, Genworth, AIG)

· 40 year amortizations (35 years will be the new maximum on insured mortgages)

This change will no doubt have a drastic effect on the short to medium term real estate market and ability of many home-buyers in purchasing a home. The removal of 100% financing will certainly affect a number of first-time homebuyers as it is difficult in this market to save 5% of today's market prices with the elevated cost of living, fuel prices etc. The 40 year mortgage is a very attractive option for many homebuyers as it allows for a mortgage payment to be low, but in many cases allows for the flexibility of making extra payments to principle throughout the year.

The effects of reducing amortization to 35 years are twofold. #1) Customers will now have to budget a higher monthly mortgage payment and #2) overall maximum mortgage will be reduced, again affecting first time homebuyers and lower income families the most.

Given that the changes are set to take place in October, it is strongly advised that customers who need to take advantage of 0% down financing or 40 year amortization, contact Shaun today. It is important that you ACT NOW! Lenders will become more and more adverse to approving zero-down loans as October draws near.

INTEREST RATE DROP!!! May 23, 2008

Shaun Serafini - Mortgage Expert - All Source Mortgages — Fri, 23 May 2008 22:42:26 -0700

Wow...check out these rates! They just dropped today. These are the lowest rates in over a year & better than Major Bank posted rates by close to 1.50%! Call Shaun today to lock in a great rate and shop without stress!

Term	Rate
1 Year	5.00
2 Year	5.40
3 Year	5.25
4 Year	5.35
5 Year	5.25
7 year	6.05
Variable	Prime minus 0.60%

Rates are subject to change without Notice. OAC. Lenders & Insurance fee may apply.