Archive for the ‘Mortgage News’ Category

What is a Readvanceable Mortgage?

Wednesday, December 19th, 2012

A readvanceable mortgage is a feature of some mortgages, including HELOCs (home equity lines of credit).  They are made up of two parts:

1.  The “mortgage” portion
2.  The Line Of Credit (LOC) portion

Each time you make a mortgage payment, your lender increases your LOC by the amount of principal you pay off .
For example, if your monthly mortgage payment is $600 ($500 interest + $100 principal) your LOC will increase by $100 each month.
With a readvanceable mortgage, as soon as you make a payment you can “borrow back” whatever principal you’ve paid. The more payments you make, the higher your line of credit.
Readvanceable mortgages are an option for those needing a growing source of funds for:
o    Investments
o    Education
o    Emergencies
o    Job loss
o    Business investments
o    Rental property investment
o    Home improvements
o    Alternative to high rate loans
o    Debt consolidation
o    Emergency backup fund

New mortgage underwriting guidelines will require federally regulated lenders to limit all new HELOCs to a 65% loan-to-value ratio … down from the current rate of 80 percent.


If you think a HELOC would be a smart precautionary move, please give Justin a call at  604-736-1855.

Summit 5 Award – 7th Year In a Row

Friday, October 12th, 2012

Mike and I are thrilled to announce that we have once again been been given TMG’s (The Mortgage Group) Summit 5 Award.    This is our 7th year in a row  (2006 – 2012).

The Summit 5 Award is given to the top 5% of all  TMG brokers.

We wish to thank all of our loyal customers who have made this possible.  We strive to give everyone our very best service and this is one of the indications that we are doing the right things!



More Canadians Are Now Debt Free

Friday, October 12th, 2012

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have been constantly warning Canadians about borrowing too much.  They have been repeating their warning during virtually every news conference for the past few years.

Vancouver Mortgage Rates

Pay down your debts? or save?

It  appears that Flaherty’s and Carney’s messages are finally getting through to Canadians

A new poll suggests more Canadians are living debt free this year compared to 2011.

The annual RBC survey found that 26 per cent of respondents had no personal debt — excluding mortgage debt — in 2012, up from 22 per cent last year.

In the scheme of things,  a 4% jump is pretty significant.  But the big caution is that the information is coming from a poll and polls can include “wishful thinking.”

The poll also found a majority of respondents — 51 per cent — said it’s more important right now to pay down debt rather than save and invest for the future.

Most financial advisers would encourage you to do both!  Pay your debt down AND save for the future.

More information on the Poll.

Please give me a call if you are planning on buying a new home, or have to renew your existing mortgage.  I will work with you to get the best mortgage possible, with the least amount of hassle.  Justin:  604-736-1855


Is Suspect Data Driving Up Home Prices?

Thursday, October 11th, 2012

Confusion over Vancouver Housing Prices

The Toronto Sun reported today that house prices may have been driven up by a national database which estimates the worth of houses across Canada.

Dubbed Emili, the automated system uses data, such as from the recent sale of nearby homes, to set values, without having an appraiser sent to the address. The potential margin of error in making these calculations could cause problems for homebuyers, homeowners and banks …

In June of this year Finance Minister Jim Flaherty introduced new rules to slow down the housing market.  The decrease in Vancouver house sales would indicate that his plan has worked.

However …

Statistics Canada data shows that new home prices in Canada were up 0.2% in August for a 17th straight month-on-month increase. August prices were up 2.4% from a year ago.

… so though house sales may be down, prices still appear to be going up.


If you need help making it through the maze of conflicting statistics and information, be sure to give us a call.  We’ll explain what’s happening in the mortgage market and help you get the best mortgage possible.  Justin: 604-736-1855



It’s All So Confusing

Monday, September 17th, 2012

I was on the phone with one of my customers the other day. He opened the conversation with “It’s all so confusing …”   I agree!  Any time you pick up a newspaper or listen to the television news you are bombarded with a new set of numbers.

I grabbed a Metro news today and there is another spin on the numbers:

The headline is:

New mortgage rules cited for drop in home sales

and the opening copy is:

Home sales declined 5.8 per cent across Canada from July to August, the largest month-over-month decline since June 2010, according to the Canadian Real Estate Association.

Actual sales activity was down almost 9 per cent in August over a year earlier, “providing the first clear indication that the recent changes to mortgage regulations aimed at cooling the market are working as intended,” said CREA chief economist Gregory Klump Monday.

Later on in the same article, they were “spinning” the numbers once again!

While average Vancouver house price was down almost 7 per cent in August over a year ago to $725,086, it was up about 3 per cent in August over July when adjusted for seasonal fluctuations.

I know it’s frustrating … but Whatcha Gonna Do?

The reality?  Houses are continuing to sell.  People are continuing to BUY.

I learned my new “Whatcha Gonna Do” philosophy from Burton Crane’s America’s Got Talent audition. Burton Crane is a 77 year old retired school teacher who claims to be the Grandfather of Rap. He performed an original rap called “Whatcha Gonna Do”.

If you haven’t seen it … it’s a great laugh.  The audience went from booing to cheering and chanting along in less than 30 seconds.

Whatcha Gonna Do

Check out the Metro Article

And if you are one of the many who are still buying  (fabulous marketplace to be in)  give Justin a call 604-736-1855






Precedent Setting Ruling in Blackhat SEO Case

Tuesday, July 31st, 2012

Last March I wrote a post about the fact that two of our competitors were utilizing what are know as Black Hat (unethical) Search Engine Marketing (SEO/SEM)techniques.  (Click here to read our original article)

Late last week we received a summary of CAAMP’s (Canadian Association of Accredited Mortgage Professionals) proposed settlement, and today the findings were reported in Canada’s Mortgage Broker News.

The decision is believed to be the first case involving the use of questionable search engine optimization practices, or so-called “Black Hat SEO,” by a mortgage broker brought before CAAMP. It would see the violator fined $500, handed a written reprimand to remain on his file for five years among other things.

There is more to the CAAMP`s proposed censure. The committee would also publish a summary of the case and its findings as well as require the broker to complete an online course on the Canadian Code of Advertising Standards.


The Black Hat SEO tactics utilized by the offending broker basically   “hijacked”  our names and reputation. Anyone doing a Google search for my name, Justin Blacklock or Averbach Mortgages would  see our  competitor’s site appearing in the search results.  This was a clear violation of the ethical standards and guidelines established by our professional association.  Though I am disappointed by the low fine, I am happy that CAAMP’s Ethics Investigator took our complaint seriously.

This is good news for Canadian consumers because it shows that our professional association is maintaining its’ high standards and that membership in CAAMP has meaning.

Mike Averbach