November 25, 2017

What Is Wrong With This System?

There have been many challenges resulting from the changes to the mortgage regulations.  A delegation of mortgage industry leaders went to Ottawa this month to discuss the impact on the industry and consumers.  Very sadly, the message was:  “We don’t care about consumer debt, because we don’t guarantee it.”

This refers to mortgages that are backed by CMHC, Genworth, or Canada Guaranty, effectively the federal government, and increasing concerns in Ottawa around “taxpayer backed” mortgages.  The crazy thing is this segment is incredibly profitable and has generated tens of billions of revenue for the Federal Government over the years (and arguably one of the most profitable Crown Corporations ever created).

And when you get right down to it, all debt in Canada is in effect government guaranteed because should the need arise and bail out of privately-owned banks be necessary, they would have to step in.

The worst part about this comment towards consumer debt is how are they protecting the consumer from themselves?  Anyone with or without a job or established credit can get a 14% car loan or a credit card at 21%.  What is wrong with a system where the major banks approve the mortgage under strict guidelines and then the moment the mortgage is approved, offer the newly leveraged client an additional $5,000 – $80,000 in unsecured credit “just in case” the new homeowners need new furniture or for other expenses.

How can they not see that this is a significant factor in the stability and security of the guaranteed mortgage product?  Absolutely insane!!

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offers all mortgage related services such as 1st and 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406

https://www.canadianmortgagetrends.com/canadian_mortgage_trends/2017/03/mortgage-industry-voices-concerns-to-ottawa.html

Banks Should All Be Scrutinized

Have you been reading about the high pressure the Banks are putting on their employees to sell, sell, sell at all costs?  Have you noticed when you walk into your branch how frequently staff greet you with the purpose to up sell you more of their products?

As a previous banker, I am still in contact with people working in the branch system and I have heard first hand how difficult it is to work with the main goal to sell services even if the client doesn’t need the product.  I know when I was in the branch, I was incapable of putting someone in further debt just to sell a loan.  Now, that is the job of branch staff to cover the shrinking margins, the bank’s bottom line is everything.  I recently met an ex banker that actually had a breakdown due to the high demands to sell.

TD Bank seems to have been the target of the recent complaints but it is all the banks that should be scrutinized.  “I’m in survival mode now,” one teller who has worked at TD for more than 15 years, told CBC in its initial report. “Because it’s a choice between keeping my job and feeding my family … or doing what’s right for the customer.”  Following that report, CBC claims “hundreds” of former TD Bank employees contacted it and explained “poisoned,” “insane,” work practices that have “zero focus on ethics.”

“We’ll certainly be monitoring our complaint volumes and monitoring the situation,” Sarah Bradley, the head of the Ombudsman for Banking Services and Investments, told the Canadian Press.

I recently did a blog on the Wells Fargo and how high pressure sales forced employees to charge excessive rates above what the clients qualified for and forged client applications just to meet sales targets.  The end result, 5,300 people lost their jobs and the company paid $270,000 in fines. http://mortgagesbycolleen.ca/wells-fargo-fiasco/

Is this where we are heading?  Is the excessive pressure being put on bank employees going to cause employees to charge higher interest rates, automatically increase our credit limits and put already indebted Canadians in more debt?  Maybe it is time for the consumer to speak out to top bank officials, stop inundating us with your sales tactics.

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offers all mortgage related services such as 1st and 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406

http://www.mortgagebrokernews.ca/news/a-lending/not-just-td-222756.aspx

Do You Have Anxiety Around Money?

Did you know that 7 out of 10 people worry about their financial situation.  Those gnawing feelings that creep in, clutter your mind and cause anxiety with regrets on what you should have done!  One of the biggest problems with financial stress is we feel we can’t talk about it because we will be judged.  So, we leave it in the closet and maybe, just maybe it will go away.  Unfortunately it won’t and if anything, it will probably get worse.

Here are some suggestions find relief around your money:

  1. Face facts: We tend to simply ignore things that stress us out.  The first positive step is to address your concerns, then you can form a game plan towards healthy finances.
  2. Get help: Many people worsen their stress because they’re too ashamed of their financial situation to get help.  Take charge and get back in control.
  3. Ask questions:  Make sure that you ask questions of whichever resource you utilize
  4. Make it a family affair: Talk to your family about your financial concerns.  It will reduce the stress on everyone around you.  You may be surprised at the support and helpfulness of the whole family once you’re all on the same page.
  5. Know how much money you spend: and where you spend it is the biggest key to taking control of your finances.

This is what I do as a Mortgage Agent.  I bring peace and calm into my clients lives by restructuring their mortgage, coming up with a budget with the goal towards savings and reducing the stress in their lives.

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offers all mortgage related services such as 1st and 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406

http://www.financialplanningforcanadians.ca/financial-planning/5-ways-combat-money-anxiety

How Late Credit Payments Effect Your Credit Score

Your credit is super important to your overall financial health.  Bad credit means you pay higher interest rates when you borrow on mortgages and loans plus less access to credit.  It can also impact other expenses, like your car insurance because Insurance Companies consider you a higher risk.  It can also impact your employment opportunities because potential employers may believe if your not responsible with your money, you might not be a responsible employee.

If your payments are late, this is the impact on your credit score:

30-days late: 60-110 points

Debt settlement: 45-125 points

Foreclosure: 85-160 points

Bankruptcy: 130-240 points

Maxed-out card: 10-45 points

A perfect score is 850.  The higher end of the ranges above apply to consumers with higher starting scores (780 and above). The lower numbers would apply to you if your score is 680 or below.  To get the best possible rates on loans you’ll need a score of at least 680 to 760.

Today even your mortgage repayment history and phone bill are reflected in your credit score, so do everything you can to keep your payments up to date.  With the way mortgage rates are calculated these days, your credit score will even have an impact on your mortgage renewal.

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offers all mortgage related services such as 1st and 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406

http://www.moneytalksnews.com/the-cost-bad-credit/

Do You Have Rejection Issues Around Money?

Last week I wrote about a fabulous Ted Talk on “What I Learned From 100 Days of Rejection.”  What about your finances?  Do you have rejection issues around money?

I work with many clients to restructure their finances to alleviate their financial stress.  I do this through using the equity in their homes and their mortgage.  I have received numerous feedback from clients on how I was able to remove their rejection and create peace around their money and finances.  I am a previous banker, so totally understand how the system works, not only the assets and the debts but also how to budget and save money.

I feel fulfilled when I can provide options to my clients to put them on the path of consolidating their debts and to achieve savings.  What makes me different?  How you will feel during the process.  I am not here to judge or criticize but to find a solution and help you get back on track.  I am also not tied to any particular institution or their bottom line.  I find the best solution depending on the clients individual needs and to obtain the best terms and rate to accomplish their goals.

Let me help you with your vision towards your finances!

Colleen Saunders is a 20 year veteran in the mortgage industry, serving Oakville, Mississauga, Burlington and Toronto and offers all mortgage related services such as 1st and 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406