Zero Down mortgage, Garth Turner & the Government of Canada Vancouver mortgage broker Mark Fidgett
Friday, January 20th, 2012 at
9:10 pm
www.notapennydown.com Zero Down mortgage, Garth Turner & the Government of Canada with Vancouver mortgage broker Mark Fidgett. The federal government has cracked down on the mortgage industry with new rules that will make it more difficult for consumers to borrow. Here’s why I think it’s flawed.
Video Rating: 2 / 5
Tagged with: broker • Canada • down • Fidgett • Garth • Government • Mark • Mortgage • Turner • Vancouver • Zero
Filed under: VIDEOS on POOR CREDIT MORTGAGE LOAN
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@flahr1 Experience shows, there isn’t always a black & white answer as it relates to specific individuals & circumstances. It’s good that our philosophy is to ensure that our clients buy responsibly and understand all the financial repercussions they’re facing. Whether that’s a 0 Down mortgage or not. Most clients typically change their mind after the initial consultation & end up with a down payment mortgage. We design a mortgage strategy that best fits our clients overall financial wellness.
So you don’t care to tell people that negative equity is bad, Didn’t hear anything about the housing bubble either.
@mariusvanc Totally agreed, called our mortgage hedge product. Whereby you take the variable, BUT we adjust the payment upwards over the 5 years. This not only allows you to pay down the mortgage MUCH faster, but it also allows for the payment shock that you would otherwise have if you simply plugged along with ONLY the variable payment. Would love to show you.
Most clients that contact us for a Zero Down, typically change their mind after the initial consultation & end up with a down payment
@Notapennydown So why not go with the lower interest rate, but setup your mortgage payments as if you were paying the higher rate? Your entire proposal and reason to pay more in interest seems to rest on “payment shock”, when you can trivially build in your own “shock protection”; this will avoid paying hefty interest charges, while building equity faster. I guess I am just not the target market for a zero down house purchase.
@mariusvanc One PS to that, I’m not saying take the zero over the variable, I was simply saying if the zero down is your best alternative to renting, then it does have it’s safety nets for payment shock.
@mariusvanc Here’s the logic, 0 down qualifies and get the posted rate for 5 years. When the 5 years are up, client gets the best discounted 5 year rate. Whereas, variable rate guy has to qualify on the posted rate, BUT doesn’t get it. He gets the variable for 5 years. Experience shows that the zero down guy will likely be better adjusted to the rate coming out of the 5 year term. This is simply my opinion and as I said in the video, as per any discussion, there are valid points for both sides
@GasolineGangsters thanks for the sp correction, just walked off a plane from Halifax : ) Personally I think the market is probably at its peak right now.
Your 0 down scenario has the exact same conditions… both have to qualify at posted rate, both get the same mortgage terms. I don’t get the logic of how paying more interest is better, or how someone gets “payment shock”. It’s not like you wake up one morning and surprise! your mortgage is up.
Fair enough. Btw.. you spelled gassy wrong.
I just wanted to get your opinion, how high do you think real estate prices will rise before they reach a permanently high plateau?
@GasolineGangsters Absolutely gassey, even more important than negative equity is “affordability”. No one size fits all. What may be good for one, may not be for another. That’s were the word “Consultant” comes in. Experience shows, most don’t consult, they simply get the deal done as fast as possible and move on to the next.
Are you telling people about the risks of negative equity? Personally I don’t think prices will rise forever and you should be warning people about that!