GE Money Exits Canada

The global credit crisis has claimed another victim in the Canadian mortgage industry as General Electric Co. winds up its mortgage operations here.

After three years in the business, GE Money Canada said it will stop taking new mortgage applications on Thursday. It's the latest in a string of alternative lenders that have decided to scale back operations or close shop amid the credit crunch.

Lenders who relied on bundling and selling loans to fund new mortgages have run into trouble as the securitization market went dry.

GE exited its U.S. subprime lending business in July, 2007, and has been scaling back its mortgage operations around the world.

Other foreign-based lenders that have recently departed the Canadian mortgage lending market include HSBC Financial Corp. Ltd. and Accredited Home Lenders.

Joe Malek, AMP
www.joemalek.com

New measures designed to head off a U.S.style sub-prime mortgage crisis.

Concerns that cracks were beginning to appear in the foundations of Canada's housing market were behind the government's surprise decision to crack down on loose mortgage conditions ushered in less than two years earlier.

Starting Oct. 15, Canadians will no longer be able to purchase a home with a government-backed mortgage with a 40-year amortization and no down payment.

Instead, mortgages will be limited to 35 years and the government will only insure 95 per cent of the value of the home, meaning buyers will need to come up with at least a five per cent down payment.

Borrowers must also demonstrate that debt servicing costs are no more than 45 per cent of gross income and have a good credit rating.

If you've been shopping around for a home and you don't have any money for a down payment, you will want to buy now with zero down and a 40-year mortgage.

Slash Your Credit Card Rates To 5.65% Today!

Choosing Your Credit Card

As you probably already know, there are many credit cards out there. The one you choose however should reflect your lifestyle and your ideal spending amounts. If you are looking for the best possible deal and the best company for your credit card, you’ll obviously need to look around at what you have to choose from and what works best for you.

The first thing you’ll need to decide when choosing your credit card is why you need one in the first place. Some people choose to get a credit card for cash flow purposes. With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill.

Others will choose to get a credit card and use it for instant cash purposes. This way, they can use their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

With a credit card, you’ll also need to think about the payments. You’ll need to decide if you want to pay the balance in full each month, or only the required amount. When you select your credit card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new credit cards and new holders. Some will offer you truly amazing deals, especially if you have good credit.

Another important area to look at when choosing your credit card is the incentives. There are several cards out there that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe. There are several incentives out there with credit cards, all you have to do is look around and compare.

The key area you’ll need to look at and compare is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the incentive period runs out. APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. The lower APR rate you get, the better off you’ll be.

Another concern with choosing your credit card is the minimum payment amount. Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher. The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. Credit cards are great to have, although they can lead to a downfall if you don’t choose them carefully. If you put some time and research into choosing your credit card, you’ll find the best one for you. As long as you take care of your credit card and pay the bill on time, you’ll help raise your credit and eventually be able to purchase even bigger things - such as a car or even a house.

You can find the best choice of credit cards and at www.joemalek.com/credit-cards.html

Slash your credit card rates to Prime+0.90% (currently 5.65%) and transfer your balances (up to $50,000) today.

Click here to get started!

Joe Malek, AMP
Accredited Mortgage Professional

Secured Credit Cards Can Lower Your Mortgage Interest Rates & Fees!

Here is one of the dozens of questions I receive daily:

Question: My wife and I wish to purchase a house in Canada. We are experiencing a problem getting a mortgage; I am a citizen and she is a permanent resident, we have an eleven year old daughter.

We have been in Canada for 3 months and I have been working for 3 weeks, as I have been resident overseas for 20 years I have no credit history here. I am a full time permanent, hourly paid employee at $11.00 per hour. My wife works voluntarily and is not paid.

The housing market in Yorkton is out of control due to the boom in Saskatchewan and we wish to get our own house as our apartment rental is now $550.00 per month. We have no debts bar utilities, our car is paid for and I can afford a down payment of $15,000.

I have my overseas credit report but my rating is low, probably because we worked on cash and had no credit cards, our house was also paid for.

We do not have a credit card except for a "prepaid " MasterCard.

Today we looked at a house at $59,900 which though small would suit us.

What I need to know is there any point in submitting an offer?

Cornerstone Credit Union says I have to work for six months, Western Canadian says I have to work for one year, I have applied with TMG on May 17th, 2008 who want bank references from overseas.

I tried applying online with Scotia bank on Sunday June 15th but they have not acknowledged my application as of today. Your help would be valued.

Answer: Most lenders require 1 year on the job as you've already found out and this includes BNS.

Only private lenders who deal with "sub prime" clients may be able to help you BUT I recommend you wait until you are at least 1 year on the job to save on interest rate, fees and house price.

Housing market is slowing down. Supply of good homes will flood the market and prices across Canada will decline.

Purchase your new home in 2009 and 2010 but make sure you re-establish your credit first with secured credit cards.

You’ll be glad you did!

Joe Malek, AMP

Get Deep Discount Rate

Fixed-rate mortgages at the big banks soared late last week by as much as 0.85 of a percentage point but I am pleased to inform you that I still offer my customers some of the most competitive rates in the market today!

Loan amount = 5 Year Fixed Rate

$1 million plus = 4.99%
$500K - $999K = 5.09%
$250K - $499K = 5.29%
$100K - $249K = 5.39%

Why pay 5.60% or higher when you can switch to our VERICO Mortgage and pay less!

Visit my site www.joemalek.com to apply online for this quick close special.

Thank you

Joe Malek, AMP

Mortgage Rates Changed Direction

Mortgage rates are going up instead of going down, a trend that's likely to continue as the Bank of Canada shifts its focus from stimulating the economy to taming inflation.

A five-year fixed mortgage now cost half a percentage point more than it did on Wednesday.

This means the average bank customer will pay a discounted rate of about 6.09 per cent for a five-year fixed term, compared with Wednesday's 5.59 per cent.

The move came sooner than some industry watchers had expected, and was driven largely by a spike in five-year bond yields caused by concerns about the rising cost of living.

Bond yields, on which fixed mortgage rates are based, rose sharply after the Bank of Canada surprised the markets with the announcement that it would freeze, rather than cut, its key lending rate.

The increase in mortgage rates comes at the same time the housing market is softening, with sales dropping and a glut of listings flooding the market in a number of cities.

A Statistics Canada study showed Canadians are finding themselves with two mortgages and deeper in debt than at any time in their lives. They are increasingly house poor, and with housing values sliding, they often owe more on their properties than they're worth.

About 17 per cent of all Canadian households have at least one mortgage, the highest percentage since 1981. The number of Canadians aged 60 and over with mortgages has been increasing since 2001.

And with the Bank of Canada poised for perhaps only one more interest rate cut before they start increasing rates in late fall to combat inflation, Canadians facing rising variable mortgage rates or fixed rates that will be reset at higher levels could find it tough to keep their homes.

If you are considering a home purchase or refinancing then go to my website www.joemalek.com to lock in your rate up to 120 days to protect yourself from further rate increases.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

Important News About Mortgage Life Insurance

I'm sure you're aware of the importance of insuring your mortgage to minimize the impact of an untimely death or disability. These events can have a serious impact on your ability to continue your mortgage commitments.

Currently, some banks offer mortgage insurance to the clients with a short questionnaire.

This doesn't mean they are insured, and in fact, sometimes the claim is denied as reported in a CBC Marketplace television special (http://www.cbc.ca/marketplace/in_denial/).

This can be devastating to you if you are denied your claim that you were confident you had.

This is yet another reason why you should always use a broker and say no to banks!

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

Where The Insurrers Consistently Decline Applications

Through my regular review of incoming deals and the insurer's decisions on these deals, I have found some situations where the insurers consistently decline applications.

I would like to share with you some of my findings with the hopes that you will gain a better understanding of what insurrers cannot consider;

-The insurers consider refinance applications with trades that are currently or recently delinquent or have balances that are at or over their limit to be considered default management.

-Minor derogatory trades (R2s) can be considered after a bankruptcy on a case by case basis however, more serious derogatory items after discharge are not considered.

-Applicants who have been twice bankrupt or have any combination of bankruptcy, consumer proposal or credit counselling.

-Trades that are maintained through a bankruptcy are not considered to be re-established credit. The insurers are looking for new credit after the bankruptcy.

-Credit that is not appearing on the credit bureau will not be taken into consideration in determining credit worthiness.

Finally, I have found that the insurers look at all aspects of the deal tend to look unfavourably at deals that have multiple risk factors. A previous bankrupt with short job tenure, maxed out ratios and gifted downpayment would be more likely to be turned down than the client that had saved downpayment, low ratios and long term job tenure.

As always, if you have any questions, do not hesitate to give me a call at 1-888-292-2156.

Thank you

Joe Malek, AMP

Lower Rates Ahead

Canada's economy unexpectedly shrank between January and March for the first quarterly drop in almost five years, giving the Bank of Canada more reason to cut borrowing costs again next month.

Gross domestic product contracted at a 0.3 percent annualized rate in the first quarter to C$1.33 trillion ($1.34 trillion), Statistics Canada said today in Ottawa.

Bank of Canada cut rates by half a point last month for the second straight meeting and said more action was likely needed because an export slump would bring the slowest growth since the last recession in 1992.

Today's report signals production hasn't yet turned around. The Canadian dollar fell as investors increased bets the central bank will ease a fifth consecutive time on June 10.

Do you think Real Estate Market is good or bad?

It is all a matter of your perspective...

The downturn in the Real Estate Market has been generally described in the media in negative terms. But, in reality, whether the Market is good or bad depends on whether you are buying or selling.

If you are a potential buyer, the market is getting better for you!
Believe it or not, when the Real Estate Market turns around, it will be worse for Buyers. The current housing situation is NOT a crisis for people who desire to buy property.

Two years ago, with the value of property going up 30 percent a year, THAT was a crisis. There was very little opportunity to get a good deal, unless you were a seller moving to a relatively inexpensive market.

There are opportunities right now in the real estate market. If you are still renting or looking to buy then click here to go to my website and get pre-approved for your first home purchase today.

Thank you

Joe Malek, AMP

Mortgage For Self-Employed

If you are self-employed looking to purchase a new home then today’s best rate on 5 year self-employed mortgage is only 5.15%.

To qualify for this excellent rate you must have:

20% down payment
620 credit score
Active and registered self-employed business
2 years active credit trade lines
No income proof required

Switch from renting to home ownership with this handy mortgage for self-employed. If you already own your home then you can take advantage of this product and consolidate your bills or pay off your other, higher interest rate self-employed mortgage. Today’s refinance rate on this product is 5.35%.

Whatever your situation… start today… click here to go to my website to apply online.

Thank you

Joe Malek, AMP

Housing Bust

Something is happening out there...

It certainly feels like our housing boom in now officially over.

Canada Mortgage and Housing Corporation (CMHC) said consumer home-buying intentions in the Toronto area have dropped sharply this year.

According to their report only about 6 per cent of households in the Toronto area intend to buy a home this year and Calgary and Edmonton have already changed from hot to cold.

The delayed arrival of housing bust can be partly attributed to mortgage innovation during the last two years.

Zero down mortgages and longer amortization periods of up to 40 years opened the market to more buyers and prolonged the housing boom but not anymore.

Are we going to have a U.S. style housing correction? Probably not, but I want you to prepare for the worst because you just never know.

With oil at over $130.00 per barrel my investment guru tells me to hold on to my oil stocks because he feels oil is just beginning its upward ride.

He believes oil will hit $150.00 and possibly even $200.00 per barrel later this year and that’s going to push our economy into longer than expected slowdown.

Mortgage lenders are already starting to tighten their lending policies and it is becoming more difficult to tap into your home equity to consolidate bills.

I can still do a second mortgage up to 100% of home value in certain situations but that may not last forever so if you have credit card balances and available home equity then I urge you to consolidate them now before it’s too late.

Click here to get started.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

Fixed Mortgage Rates Drop

Canadian financial institutions have begun to slash their mortgage rates.

BMO Bank of Montreal was the first to announce lower rates. Their 5 year closed mortgage will carry a posted rate of 6.65 per cent, a drop of a little more than a third of a percentage point.

Bigger cuts apply to shorter-term mortgages. BMO's one-year closed mortgage drops to 6.15 per cent. Its two- and three-year closed mortgages tumbled by 0.85 of a percentage point to 6.15 per cent.

These are all posted rates. Many consumers are actually able to get closed mortgages at rates that are a full percentage point or more below the posted rates. BMO, for instance, said its "special offer" rate for a five-year mortgage will drop to 5.59 per cent, down 0.34 of a percentage point.

If your credit is pretty good then you could qualify for my “quick close” special VERICO mortgage rate.

These 5 year fixed mortgage rates are my current deep discounted rates on deals closing before July 4. 2008 based on your loan size.

$1,000,000 + = 4.85%
$500K - 999K = 4.94%
$100K - 499K = 5.24%

These deep discount rates are yet another reason to apply for your mortgage at my website. Click here to get started.

Thank you


Joe Malek, AMP
Accredited Mortgage Professional

Green Mortgage

TD Canada Trust introduced the Green Mortgage in effort to help protect the environment.

This mortgage is geared towards customers who are making environmental friendly choices. It can save you money and helps protect the environment with your green home improvement

Rate discount – you will receive 1% off the posted interest rate on a five year fixed rate mortgage.

Cash rebate – they will rebate up to 1% of the amount of mortgage when you make Energy Star qualified purchases, and at the time you receive your rebate, TD Canada Trust will donate $100 to the TD Friends of the Environment Foundation.

Flexibility – this offer is available to new or existing customers. If you have an existing TD Canada Trust mortgage, you can renew or refinance into this offer.

How the rebate works:

For example, say you obtain a Green Mortgage for $200,000 and the posted five year rate is 7.00%. Your interest rate would be discounted to 6.00%. After you obtain Green Mortgage, you then upgrade your kitchen and spend $3,000 on a new dishwasher and refrigerator, both Energy Star qualified.

Next, you submit your receipt to TD Canada Trust and after validating them, they’ll credit you with the maximum rebate of 1% ($300,000 x 1% = $3,000).

What is eligible for the rebate?

A wide range of Energy Star qualified products are eligible for rebate in the following categories:

- Major appliances
- Heating, cooling and ventilation equipment
- Windows, doors and skylights

If you are interested in this Green Mortgage then please visit my website where you can apply online or simply click here to load the application form.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

Live Mortgage Free!

Most homeowners hate having mortgage payments and I am pretty sure you are one of them.

It takes on average 25 years to pay off a mortgage but there are things you can do to pay it off much faster.

For example:

1. You can change payments from monthly to weekly or bi-weekly accelerated payments.
2. You can increase your monthly payments.
3. You can put a lump sum of cash against your mortgage once a year.

The first one is simple and you should already have bi-weekly or weekly amortization to reduce the number of years it takes to pay off your mortgage but increasing your monthly payments may not be that easy for you.

You are already strapped for cash and when you actually do have some money left at the end of the month you spend it on something else.

What if I showed you a way YOU can pay off your mortgage in less than 10 years - Would you be interested?

Click here if you answered YES

Thank you

Joe Malek, AMP
Accredited Mortgage Professional
www.joemalek.com

Happy Mothers Day!

Mother's Day and What it Really Means

To understand Mother's Day and what it really means, you need to understand the person in your life called 'Mother'.

Mother is one who nurtures you in her womb for nine months and brings you forth to enjoy the supreme blessing on earth, that is, Life. Mother is one who guides you through your infancy and turns the soft, helpless creature to the powerful and successful YOU.

She is the guardian angel protecting you and supporting you, feeling for you and serving you silently always with a smile on her face. She prides herself watching you grow and provides you a shoulder to cry on whenever you need. She is every child's best friend. For a child, every single day should be a Mothers Day.

The essence of the meaning of Mother's Day is in the fact that we should try and make this day every year a memorable one for your mother. She should cherish the special feeling of this day and the intensity of that feeling should last her the lifetime.

This is the day to stop, remember, and pray for that special person in our life, without whom we would not have been, what we are today; a day to prove that all her efforts, towards making us a complete person, have been worthwhile and make her feel proud for us.

In the broader sense of the term, Mother's Day is a day to be grateful to God for being so kind as to bless us with an angel in the form of Mother.

Happy Mothers Day!

So How Much Do You Owe?

Payment to CRA of your balance owing for 2007 personal income tax was due yesterday for all personal income tax filers including self-employed.

If you did not pay your 2007 taxes on time or if there is a balance owing for 2007 on your Notice of Assessment, CRA will charge compound daily interest starting May 1, 2008, on any unpaid amounts owing for 2007.

This includes any balance owing if they reassess your return.

In addition, CRA will charge you interest on any penalties, starting the day after your return is due. The rate of interest they charge can change every three months.

Currently, the interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums is 8%.

If you have amounts owing from previous years, CRA will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

If you owe tax for 2007, and do not file your return for 2007 on time, CRA will charge a late-filing penalty.

The penalty is 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

If they charged a late-filing penalty on your return for 2004, 2005, or 2006 your late-filing penalty for 2007 will be 10% of your 2007 balance owing, plus 2% of your 2007 balance owing for each full month that your return is late, to a maximum of 20 months.

As you can see, it is in your best interest to pay them as soon as possible and I may be able to help you with that.

Just go to my website www.joemalek.com , click to get started and then click on 2nd mortgage link to complete your online request and please, don’t hesitate to call me with any questions.

Thank you

Joe Malek, AMP
www.joemalek.com

Bank of Canada Cuts Rate

Your line of credit rates will be reduced by another 0.50% due to another reduction in Bank of Canada rate. This is great news but I think there will be further reductions to stabilize this slowing economy.

If you are buying a new home or refinancing your mortgage then consider adjustable rate mortgage to ride the wave. It looks like rates will remain low until fall 2009 or early 2010.

Thank you

Joe Malek, AMP
Accredited Mortgage Professional

More rate cuts likely says Bank of Canada

Article from Canwest News Service Published: Wednesday, April 02, 2008

OTTAWA -- More interest rates cuts may be necessary to buffer Canada from the impact of the U.S. economic slowdown, according to the senior deputy governor of the Bank of Canada.

Paul Jenkins said "the risks surrounding the Canadian economy have shifted to the downside, resulting in our decision to lower our policy interest rate by 50 basis points to 3.5%."

"We also said that further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to achieve the two per cent inflation target over the medium term," according to the text of a speech delivered Wednesday morning to the London, Ont., Chamber of Commerce.

The Bank of Canada's next interest rate decision will be made at its April 22 meeting.

Jenkins said the economy faces three key challenges -- a U.S. downturn and the related financial turbulence, global trade imbalances and competition from emerging-market countries.

"The most immediate challenge facing the global economy is the marked slowdown in the U.S. economy. This slowdown involves several interconnected elements, and, given our close trade links to the United States, has very direct consequences for Canada," he said.

"What we are now confronting is a marked slowdown in global economic growth, emanating primarily from the sharp correction underway in the U.S. housing market and the associated tightening in credit conditions linked to the collapse of the U.S. subprime-mortgage market."

Mr. Jenkins added that "it's important to note that some slowing in global economic growth was necessary. After five to six years of nearly unprecedented growth, levels of economic activity around the globe were straining capacity limits and beginning to put upward pressure on inflation.

"With global economic growth slowing, it is unlikely that the higher prices of food and energy will spill over into prices and costs more generally, but this risk is something central banks are watching closely. In other words, central banks are focused on keeping inflation expectations well-anchored."

Eric Lascelles, chief economics and rates strategist at TD Securities, said that while Mr. Jenkins' speech "did not signal any sharp change in perspective by the Bank of Canada, it did very firmly reinforce the bank's distinctly dovish interpretation of recent events and of the prospects for the future."

"Recent healthy economic numbers for January and robust job gains appear to have done nothing to boost the Bank of Canada's confidence, and we remain comfortable in our call for several more consecutive 50-basis-point eases from the bank."

Avoid Foreclosure!

Happy Easter!

I am back from Florida where I spent the last 2 weeks looking at about 40 foreclosed properties and over 100 pre-foreclosures.

I couldn’t believe my eyes when I saw the countless for sale signs on virtually every street I drove through.

It certainly looks like America is up for sale!

Thousands of people were already kicked out from their homes and hundreds of thousands will follow them soon unless they start doing something about it very quickly.

In one of the homes, one unlucky homeowner left all belongings behind, including all furniture, TV’s and kitchen stuff. All they were able to grab was their clothing.

It is heart breaking to see how many people are loosing their homes, especially knowing that many had good options available to them.

If you are getting behind on your mortgage payments, taxes or you have unpaid liens and judgments then please don’t ignore your situation and avoid foreclosure today!

Give me a call or visit my website where you can complete the on-line application form and I’ll do all I can to help you.

Thank you

Joe Malek, AMP
www.joemalek.com