Bailout U.S.A.

Today’s news about Citigroup bailout by U.S. Government should help bring bank some optimism to financial markets BUT it is a horrible deal for the taxpayer.

Governments should not be bailing out corporations for making bad financial decisions.

I’d say let them go bankrupt!

They should be forced to restructure and I don’t believe that giving them billions of taxpayer dollars is the right incentive to do so.

What about the taxpayer? I am sure you could use a bailout…

Do you?

The Great Depression # 2

On a day when we saw TSX to lose another 10%...!

… I can’t stress enough that if you have credit card bills (DRIVING YOU NUTS) then now IS the right time to consolidate them into your first mortgage before it’s too late.

Over the last 7 years… we have been living in an economy which couldn’t last forever and now all of us will start paying the price for our borrowings.

Expect massive layoffs in auto industry to have a ripple effect on the rest of our economy.

If GM, Ford and Chrysler go down then things are going to get really bad in Ontario and The Great Depression # 2 is back on the table!!

The only way we can avoid this scenario is if rates decline drastically but I think the government is moving too slow to act…

They should be slashing rates faster than U.S. and STOP pretending that Canada is somehow immune to this global economic disaster.

We are not dependent on what is happening in Russia but by what IS happening south of the border…

…where millions of people are losing trillions of dollars!

It looks like the U.S Fed Rate is going to ZERO very soon and Bank of Canada should be slashing their rate too... BY 1% RIGHT NOW!!

Yes, they will lower rates but it will not be fast enough and large enough to have any significant impact on our economy plus banks will not pass these savings to you anyway.

Just this week, Laurentian Bank was 1st to increase their VRM from Prime+1% to Prime+1.5%... they expect Prime going down by 0.5% so they JACK-IT-UP by 0.5%..?

This is simply ridiculous!!!

They should be going Prime - 1.5% but that’s a pipe dream...

Everything is going down including your home price and that’s why I urge you to take action right now and refinance your mortgage (possibly) up to 95% of your current home value.

If you don’t have any debt then congrats… but why not consider raising cash to position yourself so you can take an advantage of future buying opportunities.

Things will turn around… eventually… maybe a year or two years from now… and having cash in your pillow to do some bottom fishing may prove to be a great idea.

Whatever your situation (debt or no debt), you are welcome to go to my website www.joemalek.com and request up to 5 free financing quotes for your situation.

I’ll get back to you with all your options quickly – I GUARANTEE IT!

Self Employed Mortgage

Did you know that some lenders just relaxed the documentation requirements for Self Employed Mortgage?

As has always been the case, an NOA (CRA Notice of Assessment) is not required and they are no longer requesting that you provide documentation to prove that you are 2 yrs BFS (Business for-self).

They are only requesting that my BFS clients sign a declaration at the lawyer's office that confirms the following:

• that you are self employed for a minimum of two years or are self employed and have worked in this same industry for a minimum of two years
• your income is as declared on your application
• that you do not owe any federal or provincial taxes
  

Click here to visit my website where you can apply online to get started and I'll do my best to get you approved fast.

Toronto Home Values Drop 13% in October

There are more signs out there that credit crunch is starting to effect Canadians.

- Toronto home values dropped average 13% in October
- Citifinancial Canada announced they no longer offer 100% financing
- Institutional lenders are seeing sudden jump in foreclosures
- Private lenders hesitate to lend over 85% of home value
- Alternative lenders are not renewing mortgages

These are just a handful of today’s headlines all of which confirming that credit crunch and the global economic slowdown are starting to have an effect on Canadian homeowners and Canadian home values.

However, there are still good refinancing options out there so don’t get discouraged by these depressing headlines.

Go to my website and complete the online request to receive your financing options before more lenders decide to make it even harder to borrow.

Thank you

Joe Malek, Mortgage Agent
www.joemalek.com