Tag-Archive for ◊ Credit Unions ◊

In a nutshell, a mortgage broker acts ***? the ‘go-between’ a mortgage borrower (you) and the lender (typically the big Canadian banks).  Mortgage brokers act on your behalf offering their expertise and contacts for free, and receive their commission from the lenders only once a mortgage is arranged.  There may be charges for their ***?rvices if you have an exceptional situation, ****?h ***? very ****?r credit, ***? they may need to spend more ***?me on your application.

Mortgage broker’s are able to get the best rates for homebuyers and their rates are typically discounted when compared to the big bank’s posted rates because they arrange so much volume for the lenders (almost $50B last year).  ***? a result, many ***?mes the banks and other lenders compete amongst themselves to offer the broker the best rate in order to ***?cure their business.  Many deal with over 65 lenders, and this is the reason why they can get the best rate for almost any ***?rson’s situation.

The residential mortgage market is extremely lucrative and competitive, ***? there were $191B worth of mortgages approved last year by 80+ lenders.  ***? a result, mortgage brokers are becoming more popular ***? more ***?ople are turning to them to find the lowest mortgages, representing an estimated 25-30% of mortgages being arranged according to Jim Murphy, president of the Canadian ***.ciation of Accredited Mortgage Professionals (CAAMP).

Many ***?ople aren’t sure where brokers actually source the mortgages from.  A recent report by Canada’s leading mortgage systems supplier, showed that mortgage brokers ***?cured home loans through the following channels through their network in April 2008:

·         Banks:                    50.68%

·         Mortgage Banks:      41.92%

·         Sub Prime:                4.25%

·         Credit Unions:   3.14%

The actual mortgage rate arranged by the broker, could be influenced by many ***?ctors, some of which are:

·         What type of mortgage (open or closed) are you looking for?

·          Is it a fixed rate mortgage or variable rate mortgage (adjustable rate mortgage ARM)

·         Is this a single home mortgage loan?

·         Or do ***?cond or third loans exist?

·         How long do you ****?t the mortgage amortized over?

·         Is this is a refinanced mortgage?

As is the case with brokers in other industries ****?h ***? insurance, mortgage brokers are generally former employees of the lenders ****?h ***? banks. ***? a result, they know the ins and outs of the industry, who to contact and where to find the rates across Canada.  If you’re looking for help arranging your next mortgage, a mortgage broker, may just be a sound option.

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CDs or certificate of deposits with a longer maturity ***?riod will pay a higher rate than those with a shorter maturity. You can say that the best CD rates have the longest maturities, and many investors will even go ***? ***?r to say that a certificate of deposit is the best and safest investment. There are some ***?ople who invest in a certificate of deposit to supplement their retirement income. There are endless reasons ***? to why, ****? regardless you ****?t to earn the highest CD rate.

When you are purchasing anything you ****?t to shop around to get the best deal or rate. The same thing applies when you ****?t to achieve the best CD rates. ***? an investor you will need to shop around either online, through newspapers, banners on the local institutions, or with the experienced help of a brokerage firm which find out which banks and credit unions are offers the best CD rates at that moment.

Prior to buying the CDS that offer the best rates investors must consider two different ***?cts including the length of the maturity ***?riod and the ***?rrent interest rate environment. The investors who lock up their money in long term CDs will end up earning a better rate of interest than those who bought short term CDS. This happens because ***?stomers who purchase CDS with longer maturity ***?riods also commit their ***?nds in the investment for the entire maturity ***?riod before they are able to withdraw.

Many ***?ople advise that an investor does not stay with the same bank for more than one year. When an investor stays with the same bank they are giving up their chances of getting the highest CD rates that are being offered by other credit unions and banks. In general credit unions, which are non profit ****?anizations have been known to give higher CD rates than commercial banks.

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