20 Feb

What do you look for when shopping for a mortgage? There Is More To Your Mortgage Than Just The Rate

Abbotsford Mortgage

Posted by: Matt Robinson

Most people come to me while they are in the process of shopping around for the lowest rate on their mortgage.

Looking for the lowest rate is what everyone is taught to do.

Rarely do people know that the mortgage rate is only ONE of the factors to consider when shopping for a mortgage. And if they are not shopping around it is because they “trust” the bank they deal with – but should they?

Life is busy, and shopping for a mortgage can be a daunting task.


What Is Our Job?

I work for you. My job is to dive in to find out your financial goals and then match those goals with the best lender for your situation.

As an Accredited Mortgage Professional, I keep up to date and educated on the most recent information such as;

  • The lenders that are best suited for debt consolidations, renovations, and construction financing in local areas such as Abbotsford, Chilliwack, Mission and Langley, BC.
  • The lenders that support self-employed borrowers, commissioned and contract borrowers, and new Canadians.
  • The lenders that treat their clients fairly, with reasonable management costs, the lowest penalties and the best renewal policies.
  • And of course, I automatically scan mortgage rates across all Canadian lenders and bring you the best options right out of the gate. 

When shopping for the best mortgage, most Canadians stop too soon, and they only compare the rate and miss many more valuable comparables such as:

  • Mortgage Penalties, specifically IRD penalties.
  • Renewal Policies, specifically what rate discount will be offered (if any) at renewal.
  • What term should you be selecting, 2 Year, 4 Year, or 5 Year Mortgage?
  • Should you be considering a variable rate or a fixed rate?

The biggest savings is often found where people don’t look, in the fine print.

The fine print in a mortgage is hard to understand, to begin with, not to mention trying to compare one bank’s fine print to another.

I can prove that there is anywhere from $35,000.00 – $50,000.00 or more in fees and higher interest costs over 10 years of your mortgage, separating the worst lenders from the best lenders.

This is my value, and this is what I can bring to the table.

The advice that you need to avoid huge penalties and fees, the simplicity of selecting the right lender for your situation with the lowest rate all while saving you loads of time trying to learn all this on your own.

How Do I Make Money?

I find the right lenders and show you your options, and you get to choose from there.

The lender that you pick then pays me for helping to put it all together.

You see, I save them time and money as well, and in return for that savings, they pay me for my services, so you don’t have to.

Most of the lenders pay the same or are so close; there is little to no financial advantage to me recommending one lender over another.

All of This Is To Say:

You get the advice you deserve, the bank saves time and pays me for my services.

This is a win, win, win for everyone involved.

My experience with matching clients with lenders has given me a vast pool of expertise. Practice makes perfect  – and I am a professional when it comes to selecting the ideal mortgage for you.

If you have any mortgage related questions, reach out to me today, and I can answer them for you!

14 Feb

Invest in RRSP’s or pay down your mortgage? Which one is better for you?

Abbotsford Mortgage

Posted by: Matt Robinson

The decision may not be as hard as you may think. A balanced approach to both investing and debt reduction may provide you with the best

The investing world uses dollar-cost averaging. In the mortgage world we use mortgage payment optimization to achieve the same effect. Reach out to me, and we can automate additional principal payments to your mortgage and knock years off your amortization, Which will save you thousands of dollars in interest.

RRSP season is here. Should you be contributing?

(Special) – The banks are very busy these days with Canadians lining up to make their annual Registered Retirement Savings Plan (RRSP) contributions. While contributing to your RRSP for retirement generally is a good idea it may not necessarily the best option for everyone in all circumstances.

Many Canadians at this time of year may be facing some difficult financial decisions, such a choosing between coming up with a lump sum of money to contribute to their RRSP or paying down the mortgage and/or contributing to a Tax Free Savings Account (TFSA).

One of the difficulties many Canadians have is coming up with a lump sum of money at one time to put in their RRSP. That’s why many advisers suggest people set up a system of making regular automatic contributions to their RRSP, or other retirement savings vehicles like a TFSA.

Automatic saving allows you to benefit from dollar cost averaging. This is an investment strategy of buying regular amounts of mutual funds or other investments every month or week, limiting exposure to market volatility and allowing investors to purchase more when markets are down and less when markets are up.

Financial experts would probably agree that paying down mortgage debt is a good idea, but realistically people should take a balanced approach and save for their retirement as well.

Scott Evans, an adviser with BlueShore Financial in Vancouver, says interest rates are an important factor in the decision whether to pay down the mortgage or contribute to your RRSP.

The Bank of Canada is slowing down rate increases and if you expect a higher rate of growth from investments than the rate of interest you are paying on your mortgage, then you may want to put more in your RRSP and less toward your mortgage.

“It’s not only about your objectives but your risk tolerance level and the rates you are paying,” Evans says. “It’s all about what you are comfortable with and what’s going to let you sleep at night.”

The RRSP and the TFSA both are effective financial savings tools and strategies but they serve different purposes and have different tax treatments, which can determine which one is right for you.

In general, your marginal tax rate — tax on income including government-tested income such as Old Age Security — will determine whether it’s better to invest in an RRSP or a TFSA.

If you expect that your tax rate will be lower when you retire than it is today, then an RRSP is probably best but if you expect to be in a higher tax bracket when you retire than you are now, the TFSA is probably the best option.

The reason is that contributions and earnings accrued in your RRSP are not taxed until they are withdrawn, which usually is not until retirement, at which time you probably will be in a lower tax bracket than you were in your working years.

Age also is a consideration.

Younger people these days generally are using a TFSA to save money because their incomes are often too low to take advantage of the tax deductions of contributing to an RRSP. As their careers develop and their incomes increase, they then can begin contributing to their RRSPs.

Focusing on saving and paying down debt at the same time may seem contradictory but a financial professional can help you find the balance that is right for you.

“Make sure you have and use the correct savings vehicles and your investments and financial strategies match your goals and tolerance to risk,” Evans advises. “It’s all about what you’re comfortable with.”


Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors.

Copyright 2019 Talbot Boggs

Talbot Boggs , The Canadian Press

12 Feb

Canada’s housing market ‘vulnerable’ even as overvaluation eases – CMHC

Abbotsford Mortgage

Posted by: Matt Robinson

The pronounced downturn in the country’s real estate market has not been enough to get the Canada Mortgage and Housing Corporation to lower the red flag it has been flying for the past nine quarters.  The housing agency continues to see a high degree of vulnerability in the overall market.

The Canada Mortgage and Housing Corporation has declared the overall Canadian housing market to be “vulnerable” for the tenth consecutive quarter. This assessment factors in overall housing demand, pricing, new housing startups and other economic factors to determine the overall health of the Canadian housing market.

OTTAWA — Canada Mortgage and Housing Corporation says the country’s overall real estate market remains “vulnerable” despite an easing in overvaluation in cities like Toronto and Victoria in the third quarter.

The federal agency says this is the tenth quarter in a row where it has given the overall Canadian housing market a “vulnerable” assessment.

CMHC’s finding is based on a number of factors including the level of imbalances in the housing market related to overbuilding, overvaluation, overheating and price acceleration when compared with historical averages.

It says it has changed Toronto and Victoria’s overvaluation rating from high to moderate when it measured it against factors such as population growth, personal disposable income and interest rates.

The degree of overall vulnerability remains high in Hamilton, Ont., and Vancouver, where the housing market has cooled in recent quarters but property prices remain high compared to these economic fundamentals.

The Canadian Press

7 Feb

Steps to Repair or Improve on your Credit Score

Abbotsford Mortgage

Posted by: Matt Robinson

Credit Tip: While building or repairing your credit, you want at least two credit products (Credit Card, Line of Credit or Car Loan) with an original outstanding balance or a lending limit of $5,000.00 or more.

Both credit products should have at least the last 12 consecutive months with no missed payments.


The deed is done. You’ve missed a few payments, you’ve overdrawn an account or two, you’ve maxed out your credit and are hiding like an ostrich with its head in the sand.

Obviously, you do not want to be in this position, but do not fear. There are steps to take to repair your credit, that will get you into a position for a financially stable future and to even buy a house within a year or two.

That is if you begin today.

Does this sound good to you? Then keep reading.


The first step and the most important is to begin to make all of your minimum payments on all of your debt.

You can’t start rebuilding your credit until you start making your payments, even missing one payment can take you so far back that it will feel like you are starting over again.

Also, remember this is step 1, don’t worry about making extra payments at this point, just the minimums. We are trying to put out the fire, if your credit card says the minimum is $10.00, send them $10.00.

Its also better to spread the wealth here, don’t get caught making large payments on a single card trying to pay them off one at a time, to rebuild your credit you going to have to work on all of them at the same time.

CREDIT TIP 1 – Set an automatic payment for the minimum payment to be sent to your credit cards or lines of credit 2-3 days in advance of the actual due date. It can take that much time for your credit company to receive the payment. If you pay your credit card on the date it is due, and the bank doesn’t receive it for a few days they will mark that payment late; it may not show up on credit bureau but it will affect your relationship with that bank,


Bring all the balances on each card credit and line of credit to under your available credit.

I included this in Step 1.5 because some credit cards and line of credits will insist that any amount you are over on a credit card or credit line is paid as part of your minimum payment.


Ok, so here is what you are going to calm the fire.

Make all or as many minimum payments as possible. If you don’t have enough money to pay all your minimum payments, start with the smallest debt first and work your way up.

You would rather have three small credit cards in good standing, and one large account with a missed payment.

For the most part at this stage, the amount is ignored by the bureaus, they are just looking at how many cards have missed payments. So the fewer cards with missed payments the better!


So you’re caught up on all your minimum payments, now it’s time to start rebuilding your credit.


Your first goal is to bring all of your credit cards to under 50% of the current available limit.

If your credit card’s limit is $2,500.00, bring your balance down to $1,250.

This goes for all revolving trade lines like personal lines of credit, credit card, and yes even store shopping cards that have 0% interest.

The reason for this revolves around a credit term called “Utilization”, but all you really need to know is that the bank wants you to have some credit ‘available’ to show that you can have credit under your name without using it.

Those with good credit can control their temptations, and don’t ever really max out their available credit.

With that said, it is better to have two $5,000.00 credit products with balances of $2,000.00 each than to have one credit product with a limit of $5,000.00 and a balance of $4,000.00.

I know it doesn’t make sense, and I would have to write a whole other post to explain this concept alone, but for now, just trust me, do your very best to keep the amount that you owe under 50% of your limit.

I won’t sugar coat this step, it’s a hard one because it means paying back some of your debt. Paying down your debt to get below this 50% threshold will take time, and early on you may not be even close.

So keep this threshold in your mind as a goal, and early on feel free to completely ignore this rule and jungle around debt to take advantage of low rate offers on other cards you may have.

PLEASE NOTE – don’t worry about the threshold if you can put all your debt onto a single low rate line of credit or consolidate your debt into a low rate credit card option. Your priority will always get the lowest rate possible than optimize how you are carrying your debt.



The goal is to have two trade lines at a minimum of $5,000.00 each with no missed payments 12 – 24 months.

When applying for a mortgage, the minimum timeframe with out a missed payment or collection is 12 months. If you have recently filled for a bankruptcy or a consumer proposal you need at least 24 months of no missed payments after you have been discharged.

These are the minimums, you could still be declined depending on other factors, but at least you have a target now. 


Trade lines are any type of credit line that will go on your credit report. Car loans, credit cards, personal lines of credit and mortgages all count as trade lines.


If you have bad credit it’s hard to apply for credit, right?

I know, you need 2 tradelines but when your credit is so bad no one will give you more credit. While that may be true for the majority of credit card companies and Big Banks, but there are exceptions:

  • Capital 1
  • People’s Trust
  • Home Trust
  • Lendit

Credit Cards and Lines of Credit

Now, these companies are likely not going to just give you a new credit card or line of credit on the spot without some sort of security. So be prepared to have to put down $250.00 – $1,000.00  as deposits for these cards.

The bank will keep your maximum balance at the amount of money you put down (similar to a debit card) but each month they will report to the credit bureau, which will improve your credit rating.

Big Banks traditionally decline these types of applications, even with security unless you are new to Canada or have no prior credit history. So feel free to start the application process at a major bank first, and then try the list above once you have been declined.

Investment Loans

If your credit is OK, but you are just needing an extra tradeline, you may want to consider an investment loan. Buying an investment (for example, a GIC) at the institution that you borrowing the money from, can increase your chances of approval.

This is not the ideal path for repairing credit but should be seen as a last resort. If are you stuck, this might be an option to consider. Basically, you have a forced savings plan while still earning interest.

You pay the bank some interest for the loan, yes, but are also rebuild your credit at the same time.

Auto Loans

Auto loans can also be a good way to build credit, but don’t get caught up in the purchasing process and buy a vehicle that you can’t afford. A lot of times as well they will get you excited about the vehicle and the interest rate will be extremely high.

I recommend that you try to find a vehicle with a payment that you can afford to pay off with in 18 months. This will ensure that you have recent credit when you apply for your mortgage for you new house, and will allow you to get pre-approved for more money as the payment will no longer exist.

How Often Should I apply for Credit?

Building credit is important, you want to do it quickly, but not too.

Try to apply for a new tradeline every 60 days, until you get 3-4 tradelines than stop. By waiting 60 days between applications you shouldn’t have any impact to credit, you may have heard that too many credit check can damage your credit. 60 days is more than enough time between checks to avoid this problem.

Remember you only need 2 tradelines, but by having 3-4 helps with balancing out utilization and shows maturity. Some of my past clients have had 15-20 open tradelines with limits exceeding $20,000 on each of them, and all with zero dollars owing on them.


Now that you have the right amount of tradelines, your balance’s are getting smaller and you can see your available credit start creeping up.

Stay Focused! Let your credit history grow as your debt declines.

The waiting game may be the hardest step if you’ve suffered from bad credit in the past. It will be tempting to go back to earlier spending habits once you see the available credit on your cards.

Question: How long can I expect to have bad credit for?

It is possible, but bouncing back from a credit history horror story does take a time and requires commitment.

The worse your credit trouble has been, the longer for it to bounce back.

12-24 months is standard for a credit ‘refresh’. Remember that poor credit performance in the past will not follow you forever.

Here are a few extra tips to help you along the way.

Tip 1: Do not close credit accounts!

A closed credit account will still show up when your report is pulled up. You will have to explain to the bank why it was closed.

Try to keep paid of cards open. Each month whether you use them or not credit cards report to your Credit Bereau and if they have a $0.00 outstanding balance, they look really good.

Change them to a zero annual fee and just let them sit there and help you boast your score, and as a bet of a PS, if you have 10 credit lines in the future, and you do make a genuine mistake, it will have less of an impact on your score than say you only have 1 credit card with a missed payment.

I recommend only closing them it the annual fee is too high, or if you really know that you will end up spending the money again.

Tip 2: Check your credit report

This might be a scary process that you don’t want to do. We understand this.

Who wants to see their credit report if you know it is bad news? Yes, it is easier to avoid, but it won’t help you fix the problem. Looking at your credit report is a good step towards improving it, so next time you look at it, you don’t have to be afraid.

Tip 3: Only apply for credit that you need

When you are applying for credit, banks will pull up your report. This will cause your score to go down if you apply many times in a short period of time.

This is different than never closing an account, you really don’t want to be applying for credit just for the sack of applying.

There is a special rule that applies to people who apply for credit too frequently, they are called “Credit Seekers”. Apply for 3-4 loans/lines of credit/credit cards in a month and you could be stuck with this label.

It will disappear as soon as you stop applying for credit, but why even worry about it, slow and steady wins this race. Keep the before mentioned 60 day rule in mind and slowly build your credit over time.

Remember: Good credit is the key to financial freedom.

Everything you want to do in the future is made easier with good credit, and it comes quicker. You just have to buckle down and make sure you have a vision or dream of want you are working towards.

Grab a picture of that house you want to buy, tap it over your credit card, or even through them in a glass jar and put them in the freezer. Both tactics will remind you to think twice and evaluate whats more important, this purchase I am considering now, or that goal that I have in mind.

I would wish you good luck, but that would be leaving this process to chance, so instead, I am wishing that you can find the dedication, focus and commitment to move towards your goals, and to a secure financial future.