New year, new ways to manage that holiday debt!

We hope your holidays were spent warm, safe and in the company of family and loved ones. We also hope that you’re not drowning from all the holiday purchases such as the dinners, the appetizers, the gifts, the gift cards, the drinks, the party favours – shall I continue?
It is expected that most people will spend over their budget during the holiday season. In fact, Canadian consumers spent 3.7% higher than they did last year. According to PwC, Canadians spent, on average, $1,563 each on consumer products this holiday season.
Are you among that group who spent 3.7% higher than last year? Not too worry, we get your generosity and as always, we are here to help you during this NORMAL time period of financial anxiety and discomfort.
Once again, we’re all in this together. You are not alone in your debt situation no matter how high or how low.
Our first suggestion is to put those credit cards on ice and leave them for awhile. Cut out the temptations completely and focus only on the necessary transactions including home utilities, car insurance, mortgage, etc.
This extra money can be put aside and stored in your savings for multiple reasons. It is important that you DO NOT SPEND this lump sum of cash on clothes, electronics, or big ticket items. Just because this money is readily available to you – doesn’t mean it should be spent on materialistic items.
Don’t know what to do with that extra cash and want to make good use of it? Direct this money towards credit card debt (this one is important!!) or perhaps a “nest egg” before a move across the country, retirement, whatever suits you best.
We highly suggest not letting that holiday debt get the best of you by addressing it first and foremost. Do not let this debt slide under the radar and come back mid-year with more debt racked on top of it. Trust us! Addressing your Christmas dues now will make the rest of your financial year reasonably better without having those regrettable thoughts about giving your gifts to your families.
Since it is the beginning of January and new year resolutions are [hopefully] still fresh in peoples minds, make it your 2019 goal to create a monthly spending plan. Setting up a budget will put an end to bad spending habits and increased debt if you take your budget seriously as well as make realistic changes that are suitable to your current lifestyle.
Having a financial plan will force you to look at the numbers and assess your spending. You may be very surprised by the amount of money you are currently using towards just a simple cup of coffee on the way to work.
If you have questions as to how to get started, here is a link to the 10 Basic Steps provided by Smart About Money that takes you through your motivations about your money, how you would like to utilize your money and how to put your budget into action.
Lastly, and this tip is easy, if you already have one or two credit cards that are racking up debt – do NOT apply for a new credit card. We assure you handling one monster at a time is better than taking on multiple beasts.
If you have any questions or concerns as to how you should be spending your money on your mortgage, contact a Dominion Lending Centres mortgage professional near you.

– by Chris Cabel

December Canadian Home Sales Weaken Further

Statistics released today by the Canadian Real Estate Association (CREA) show that national home sales dipped for the fourth consecutive month, down 2.5% from November to December, capping the weakest annual sales since 2012. According to last week’s Bank of Canada Monetary Policy Report, housing activity in Canada has fallen by more than the Bank’s economists had expected owing to tighter mortgage-qualification restrictions and rising interest rates.

Monthly declines in home sales since September have fully reversed their summer rally and returned monthly sales to near their lowest level since early 2013.

Transactions declined in about 60% of all local markets in December, led by lower activity in Greater Vancouver, Vancouver Island, Ottawa, London & St. Thomas, and Halifax-Dartmouth, together with a regionally diverse mix of other large and medium-sized urban centres.

On a not seasonally adjusted basis, actual activity was down 19% year-over-year in December 2018 and stood almost 12% below the ten-year average for the month. Sales were down from year-ago levels in three-quarters of all local markets, led overwhelmingly by the Lower Mainland of British Columbia, the Okanagan Region, Calgary, Edmonton, the Greater Toronto Area and Hamilton-Burlington. Sales had been boosted in December 2017 by homebuyers rushing to purchase before the new federal mortgage stress test took effect at the beginning of this year.

The Bank of Canada forecasts that the housing market will remain soft this year, undermining economic growth as the mortgage stress test has rendered housing unaffordable for many potential homebuyers.

New Listings

The number of newly listed homes remained little changed (+0.2%) from November to December, with declines in close to half of all local markets offset by gains in the remainder.

With sales down and new listings steady in December, the national sales-to-new listings ratio eased to 53.3% compared to 54.8% in November. This measure of market balance has remained close to its long-term average of 53.5% since the beginning of 2018.

Based on a comparison of the sales-to-new listings ratio with the long-term average, about two-thirds of all local markets were in balanced market territory in December 2018.

There were 5.6 months of inventory on a national basis at the end of December 2018. While this remains close to its long-term average of 5.3 months, the number of months of inventory has swollen far above its long-term average in Prairie provinces as well as in Newfoundland & Labrador. By contrast, the measure remains well below its long-term average in Ontario and Prince Edward Island. In other provinces, sales and inventory are more balanced.

Home Prices
The Aggregate Composite MLS® Home Price Index (MLS® HPI) was up 1.6% y/y in December 2018. The increase is smaller but still broadly in line with y/y gains posted since July.

Following a well-established pattern, condo apartment units posted the largest y/y price gains in December (+4.9%), followed by townhouse/row units (+3.1%). By comparison, two-storey single-family homes posted a small increase (+0.4%) while one-storey single-family home prices eased slightly (-0.3%).

Trends continue to vary widely among the 17 housing markets tracked by the MLS® HPI. Results were mixed in British Columbia. Prices are now down on a y/y basis in Greater Vancouver (-2.7%) but remain above year-ago levels in the Fraser Valley (+2.5%). Meanwhile, prices posted a y/y increase of 6.4% in Victoria and rose 11% elsewhere on Vancouver Island.

Among housing markets tracked by the index in the Greater Golden Horseshoe region, MLS® HPI benchmark home prices were up from year-ago levels in Guelph (+6.8%), the Niagara Region (+6.8%), Hamilton-Burlington (+6.4%), Oakville-Milton (+3.3%) and the GTA (+3%). Home prices in Barrie and District remain slightly below year-ago levels (-1.1%).

Across the Prairies where supply is historically elevated relative to sales, benchmark home prices remained below year-ago levels in Calgary (-3.2%), Edmonton (-2%), Regina (-5.2%) and Saskatoon (-1.2%). The home pricing environment is likely to remain weak in these housing markets until elevated supply reflective of the weak oil market is reduced and becomes more balanced in relation to demand.

Home prices rose 6.9% y/y in Ottawa (led by an 8.3% increase in townhouse/row unit prices), 6% in Greater Montreal (driven by a 9.1% increase in townhouse/row unit prices) and 2.5% in Greater Moncton (led by a 12.2% increase in townhouse/row unit prices). (Table 1, unfortunately, CREA did not update the table with December data as of this writing).

Bottom Line

We are likely in store for a prolonged period of modest housing gains in the Greater Golden Horseshoe, stability or softening in British Columbia and further weakening in the Prairies, Alberta, and Newfoundland & Labrador.

Sluggish sales and modestly rising prices nationally are likely in store for 2019. While there will still be some significant regional divergences, there is no need for further policy actions to affect demand.

Dr. Sherry Cooper

Chief Economist, Dominion Lending Centres

2018 is in the books, here are the Q4 numbers!

2018 was a challenging year for the housing and mortgage market—new regulations, rate increases and more made it one of the toughest years for homeowners to qualify. Despite all this, there was still $45.3 billion in collective profits made by the Big Six Banks (Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank).

Profits for the big banks were up an average of 13% over last year, however their stock prices were down across the board. Here’s the key points from each of the 6 major banks.

What can we expect in 2019? In general, the banks are forecasting increased mortgage growth, but there are also lowered expectations of Bank of Canada rate hikes this year which could impact net interest margins negatively.

From the Big Bank reports there were areas that stood out:

1. BMO: predictions of increasing 1-2 bps per quarter, dependent on certain moves and choices required to do so. Source: BMO conference call
2. CIBC: RESL growth has slowed, but they are predicting an increase in their mortgage portfolio in line with where we see the overall market growth trending. Source: CIBC Conference Call
3. National Bank of Canada: 2018 completed their repositioning of their distribution model translating to higher levels of mortgage originations and renewals. They saw a year over year increase in amortizing HELOCS due to consumers choosing to lock in their rates. Source: NBC Conference Call
4. RBC: Increase in mortgage portfolio of 5% year over year, with a growth in the range of 3-5% for 2019. They feel they have a strong renewal rate in comparison to other banks. HELOC products have shrunk for RBC as clients at renewal looking to lock in our residential mortgage. Source: RBC Conference Call
5. Scotiabank: expecting increased margins supported by higher interest rates. Residential mortgages are also expected to grow at mid-single digits in 2019. Source: Scotiabank Conference Call
6. TD Bank: mid-single digit growth for their proprietary total real estate secured lending portfolio in 2019. They are expecting a rate of growth a little bit lower in the first half, but mid-single digits for the full year. Source: TD Conference Call.

Do you still have questions regarding the 2019 Mortgage Market or the Q4 wrap-up? Dominion Lending Centres mortgage professionals are well versed in the in’s and out’s of the mortgage market and would be happy to walk you through the full details.

Stat Sources: https://www.canadianmortgagetrends.com/2019/01/q4-2018-bank-earnings-mortgage-morsels/

– by Geoff Lee

A shifting market… again

The recent data sure has changed the tone of rates in the coming months.

The prime rate – what variable rates are based on, while a few short weeks ago was expected to rise three times in the next 18 months now with the data on the slowing of the market and uncertainty in projects moving forward as expected, there are signs increases could be delayed until next spring.

The bond market- what fixed rates are based on, has dropped, which means rates (after the banks have hung on as much as possible ) should come down slightly.

What does his mean for borrowers? Let’s break it down per segment

1- Homebuyers – more affordability due to the recent dip in prices – pending price category anywhere from 10-30%. Remember, working with an unbiased mortgage professional we do a full look back upon closing to ensure the lowest cost of borrowing.

2. Home sellers – price sharp if you want to sell or else no point in being on the market.
3. Renewals rejoice – payment shock shall be reduced upon renewal.
4. Those carrying debt outside of a mortgage ex: credit cards, car payments, lines of credit – now is your time to see how much money moving that debt into a new restructured mortgage will improve your cash flow. It’s the most effective strategy for protecting your credit.

The most constant theme in everything above: The market is always changing, yesterday’s news is exactly that. Aligning yourself with the frontline experts who will help you with clarity in the ever-changing market. This is why while experts can give you the data on the current market – it’s always subject to change. The decisions a borrower makes is their responsibility to adapt to. If you have any questions, contact your local Dominion Lending Centres mortgage professional.

– by Angela Calla

3 Things for every Homeowner to do in January

As we enter the New Year, there are a few things that we should all think about as homeowners.

1 – Replace your furnace air filter – if you read over the instructions for your furnace you will know that you are supposed to either clean or replace your furnace filter. We are three months into the heating season so a replacement now will last you until spring.

2 – Put a copy of your last pay stub for last year with your house papers & keep an eye out for your annual mortgage statement – put this statement in with your house papers along with your last pay stub.

3 – Check all your credit card balances before they are due – as the holiday season has just ended , you may have spent more money than you have in your bank account. If there’s a shortfall between what you can pay and what you owe you will now be stuck with a credit card balance with an interest rate of 19-25%.
There’s a solution. If you have enough equity in your home, you can apply through your mortgage broker for a home equity line of credit (HELOC). This is a readvanceable account and should have an interest rate of closer to 4% . Remember you still owe this money but it’s a lot easier to pay off a balance when the interest compounds at 4% rather than 25%.
Contact your favourite DLC mortgage broker and ask them if you qualify for this money saving option. The first thing that your broker will ask you is for a mortgage statement and your last pay stub from last year which you will have easily at hand. Now there are just a few more steps and you are on the way to getting your holiday debts into a manageable situation . Dominion Lending Centres providing solutions to Canadians.

– David Cooke

Bullying Ends Here update for January 2019

Hi Friends and welcome to 2019! I hope everyone had a terrific holiday season and was able to spend some quality time with loved ones.

Seven years of Bullying Ends Here and sharing my story, along with Jamie’s, is now complete. Here are some highlights…
To date:
49 young lives saved to date
3500 website hits per day average
Presented in four countries including the Netherlands and the United States
875,000 shared with in person
Countless media interviews
Endorsements from the Prime Minister
First book released (My Story)
Johnny Gaudreau asks to be Ambassador
Our first commercial

2018:
17,500 emails/social media messages
150 presentations
180,000 youth
15,900 at Be Brave in Calgary from Centre Ice of the Calgary Saddledome
Scotland for two tours
England for two tours
Every Province in Canada (some several times)
Resource guides for adults (thanks Industrial Alliance)
Endorsements from Steven Page, Mayor Nenshi, Shawn Hook, Sheldon Kennedy, Rick Mercer, Brad May and Brian Burke
New PRIDE logo
Partnership with the Metropolitan Police in London England
Sovereign Medal for Volunteers presented by the Governor General
New office space
New Board Members (welcome Kim McKenney Lisa Randell and Jenneice Elliott Larsen)
Youth Advisor
Visit to 10 Downing Street

2019:
Will reach the 1,000,000 mid year 2019
History/record making ‘Kindness Tour’ starting October 2019
New Book (Walking the Talk) and a Third book in the works
Scottish Parliament Recognition
Three scheduled tours in the United Kingdom
Member of the Order of Merit, Police Forces (one of Canada’s highest recognition)

Needless to say, you can see just how much we have accomplished when so many said that ‘this won’t work’. Worldwide success and lives saved!!! I made a promise to Jamie’s parents (Allan Hubley and Wendy Barber Hubley) in 2012 that I wanted to continue their son’s message of acceptance and understanding and I am more committed than ever to keep doing so. For as long as I am asked to share, I will keep speaking up and being the voice that so many need. Much of this credit has to go to Dominion Lending Centres and their continued support to make Bullying Ends Here one of the most effective anti-bullying initiatives in the Country!
I am really excited to share more details about the biggest plans in our history, the ‘Bullying Ends Here Kindness Tour’. Details of this are still being sorted but it will travel all across Canada (I will drive the entire route) ending March 31st 2019 in St. John’s N.L. This will mean 150 presentations, in 150 different cities/towns in less than 150 days. I am going to open scheduling to DLC offices across the Country first to have me speak in your community. With CTV already wanting to be our Canadian Television Presenter, this is going to help us to reach so many more. I will provide details on exact locations in the coming weeks/months.
I am currently on tour for ten days in remote locations in Northern Saskatchewan thanks to the good folks at PrairieAction Foundation that worked with the Ministry of Education of Saskatchewan to find the communities most in need of my program. Some of these communities have had school shootings, mass suicide pacts among youth and extreme poverty. I promise to do all that I can to help those that need most. To show them that things can get better and that there are people right now ready to help. I will share details of this journey on my Instagram/Twitter (@tadmilmine) and Facebook (Bullying Ends Here Canada).

As you saw, we received many more endorsements from influential people this past year. Shawn Hook was kind enough to prove a shout out as are several of the Calgary Flames NHL Team players. In fact our Ambassador, Johnny Gaudreau, now provides me with countless items to offer out to random followers on my Instagram account. We are blessed to have such support from a true gentleman who also happens to be an NHL Superstar. The looks on some of the kids faces when they receive an autographed photo, puck or jersey is priceless. Talk about spreading the love!

Our charity has now branched into the United Kingdom with a partnership with the Metropolitan Police in London and a goal to share Bullying Ends Here with as many of their students as possible. I have been there twice in the last six months with three more trips planned for 2019. Scotland is going so far as to pass a motion in the Scottish Parliament to officially recognize Bullying Ends Here as being part of their school curriculum. This is historical to say the least.

I just put out a small guide called ‘What Everyone Needs To Know’ and the reviews are incredible so far. My first 250 copies were gone in a week with a request for thousands more. This is all made possible by the grant that we received from Industrial Alliance last year. We consulted with some of Canada’s experts and stuck to the most important information in an easy-to-read format for all.

I am currently re-writing my first book as, with time, I have become much more comfortable sharing about my past. There are things that I couldn’t talk about when I first wrote it that I am comfortable with now. I hope to have this out in two months. My second book ‘Bullying Ends Here – Walking the Talk’ should be released by the summer. With the third book, tentatively called ‘Bullying Ends Here – The Kids are Alright’ anticipated for the fall. Needless to say, I have a lot of writing to do.

This is going to be an extraordinary year, an historic one in fact. At some point we are going to reach our ONE MILLIONTH YOUTH!!! I get goosebumps just writing that.

We need all of the help that we can get with raising funds, spreading awareness and networking. Please never hesitate to share my contact information with anyone who might be able to help us in some way. Every dollar helps as it goes directly to reaching the youth. I would have it no other way!

Your friend,
Tad

9½ Steps to Repair and Improve Your Credit

Though credit scores aren’t always an indicator of financial health, they are used in a variety of ways that could have a major impact on your life. Interest rates (including mortgage rates) are almost always determined by your credit score. Some employers & landlords may require a credit check to see if you have past credit issues.
Remember this is your credit report, not your “I’m Fiscally Responsible” report. Lenders want to know how you have historically handled credit in order to determine if you are a good credit risk. Higher risk = higher rates!

The Rule of Two:
• You should always have 2 “tradelines” going. This can be a combination of 2 credit cards OR a credit card and a line of credit/ loan etc.
• Credit lines should have a minimum $2,000 limit
• Minimum of 2 years old

So, if your credit score sucks, it could be costing you.
The good news is, you don’t have to live with bad credit forever. There are plenty of things you can do to improve your credit score. Use the 9½ tips below, to improve your credit score

#1) Know Your Credit Score and Credit History
Request a free copy of your credit report from both of Canada’s credit agencies (TransUnion and Equifax). You are legally entitled to one free credit report yearly from each credit agency. Check out my BLOG How to Get a FREE Copy of Your Credit Bureau

#2) Review both TransUnion & Equifax Reports for Any Errors or Discrepancies.
If you find any errors in your credit report, you should dispute them with Equifax or TransUnion and request to have them correct any errors.

#3) Pay On Time, EVERY time!
This might seem obvious, but you need to make your payments on time, every time! This is crucial to repairing and maintaining your credit rating. The largest percentage of your credit score is based on your payment history!! Even being a couple of days late will have a negative impact on your score. Staying current with your payments has a huge positive impact. If you can’t pay the balance off in full, pay the minimum amount on time!

#4) Don’t Go Over Your Card’s Credit Limit
Going over your credit limit, even once will have a huge negative impact on your credit score. You need to be aware of your credit limit and your current debt levels to avoid this.

#5) Pay Off Any Overdue Accounts ASAP
Paying off a collection account will not remove it from your credit report, so do your best to avoid going to collections. If you have any overdue accounts that have gone to collections, negotiate to pay them off ASAP.

#6) Reduce Your Debt
Easier said than done, but if you want to increase your credit rating, you need to reduce your debt. The closer you are to your credit limit, the lower your score. In a perfect world you only want to use about 30% of your available credit. If you have a lot of credit card debt you might consider a loan (with lower interest rates than the credit cards) to consolidate your debts.

#7) Limit Your Inquiries for New Credit
You lose points from excessive hard inquiries on your credit bureau. Any attempts to take on multiple loans/credit cards will look bad in your report.

#8) Avoid Closing Credit Cards
Account age is a factor that reflects positively on your credit score. Too many new accounts lowers your average account age and negatively impacts your credit score. For the same reason, you may want to keep an old account open, even if you are not actively using it.

#9) Time is your Friend
When rebuilding your credit, time will be your best friend. The impact of past credit problems lessens with time, so that a late payment from a year ago will have much less weight than a late payment today. Get current and stay current.

#9.5) Protect Your Credit from Identity Theft
As more of our personal information gets circulated via the internet, there’s more room for “bad people” to steal your personal details so that they can make fraudulent purchases in your name. This can be extremely damaging to your credit history. You can protect your credit history from this by paying for a service that can alert you to fraud.

If you have any questions, contact a Dominion Lending Centres mortgage broker near you.

– by Kelly Hudson

Why We Worked with a Broker

We recently had a couple come into our office who we had worked with in 2011. They had some life changes that had occurred in the past 7 years and were unsure if they could make things work. They came back to speak with us and shared a little bit of their story and thoughts on working with a broker. Check out their story below! **Names Changed for privacy purposes**

Jane and her husband Kevin never in a million years would have thought that they could own a detached home in the Fraser Valley. One look at the market and they felt “stuck” where they were in their two-bedroom townhome in Kamloops, British Columbia. They had purchased their townhome in 2011 by working with us at Dominion Lending Centres.

They loved their little home but a job opportunity for Kevin opened up and the need for more space (with baby #2 on the way) was pulling them towards the Fraser Valley. Now they had their doubts about being able to afford a house in the Lower Mainland. They had strong credit and very little debt, but there is always the “unknown” when you are looking at buying a home. They decided to reach out to their us again—and we were all in to make their dream become a reality!

After a few weeks of shopping around they found a picture-perfect home in the Valley for $675,000—and were able to move in just last month (just in time for the holidays!)

When asked why they opted to work with a broker, they said it was due to the ability of Mortgage Brokers being a “One stop shop”—no shopping around from bank to bank or having to have your information pulled and sent off to several different lenders. It was all done for them. They were able to send all of their information and let us do the rest. And the best part for Jane and Kevin? We got them a great rate back in 2011 and were able to do the same in 2018!

Why else should you choose to work with a broker instead of the bank? Just a few reasons for you…
1. A broker can access rates that your bank can’t. They can access:
i. Tier 1 banks in Canada
ii. Credit Unions
iii. Monoline Lenders
iv. Alternative Lenders
v. Private Lenders

This extensive network allows brokers to ensure that you are not only getting the sharpest rate, but the mortgage product is also aligned with the client’s needs.

2. A broker will negotiate on your behalf, directly with a lender. There is no “grunt work” needed on your part—your mortgage broker does it all for you.
3. A Mortgage Broker can produce and show you several different options so that you can select the optimal product for your specific needs. A broker won’t just look at the rate, they will also look at:
i. Prepayment options
ii. Costs of Borrowing
iii. Portability
iv. Blending and Extending
v. Penalty to break
4. A broker can save you some serious cash! Because they have access to a multitude of different lenders and can offer discounts the bank can’t people end up saving money when they work with a mortgage broker.
5. Working with a broker means you have someone on your side—always. Mortgage Brokers will work to provide you with industry information and updates long after your mortgage is completed. They want to make sure that the product that was right for you when you signed is still the right one for you today and in the future.

Mortgage Brokers are a dedicated group of individuals who work directly for the client, not the lenders or the bank. Brokers are problem-solvers, advisors and honourable individuals. We work hard to give our clients the best that we can in an industry that constantly is evolving and changing.

Kevin and Jane made the right choice working with us here at DLC.

– by Geoff Lee

How to renew your mortgage in 5 simple steps!

If you have a mortgage, you’ll be completing a mortgage renewal when your current term has finished.
While most Canadians spend a lot of time and expend tons of effort shopping for an initial mortgage, the same is generally not the case when looking at mortgage renewals.

So what is a mortgage renewal?

Mortgages terms are locked in rates that are *over a set term* which can vary from 1-10 years.

About 3 months before the end of your term, your current lender will suddenly become your best friend showering you with attention and trying to entice you with early renewal offers…And the first offer is never their best. It really shows how they value the relationship.
“Please, please sign here on the dotted line to renew… it’s sooo easy!!”

You have 3 options

1. Sign and send back with no alterations or changes (don’t do it, really I mean it… don’t do it!!)
2. Check the market to make sure you are getting the best rate and renegotiate with your current lender
3. Talk to a mortgage expert and together we can discuss the best options available for your situation

Lenders know that 80% of people will sign their renewal forms because it’s fast, easy and convenient. Banks & lenders push this “take it as it is” tactic to borrowers to ensure they make the highest profits to keep their shareholders happy. As an educated consumer, you need to take the time to ensure you are being offered the best possible rate & terms you can get.
Remember all those hours of research you did regarding lenders and mortgage rates when you were buying your first home… don’t forget!
It is true that signing the renewal document is easy, however it is in your best interest to take a more proactive approach. Money in the lenders pocket comes directly out of your pocket.

5 steps to save you money on your mortgage renewal

1. Receive the renewal offer from your current mortgage lender and examine immediately. This gives you enough time to make an informed decision
2. Do your online research about the best current rates for you
3. Call your current lender and negotiate!
4. If your lender will not offer you a better rate then it is time to move your mortgage. You will have to complete a mortgage application and gather applicable documentation just like you did for your original mortgage, but we will help with most of the work!
5. Take a look at your budget and see if you can increase the amount of your mortgage payments. This will eventually save you money by paying off your mortgage faster

Your mortgage is one of your biggest expenses. For this reason, it is so important to find the best interest rates and mortgage terms you possibly can.
As you can tell there is lots to discuss about mortgage renewals. We can help. Contact a Dominion Lending Centres mortgage professional today!

– by Chris Cabel

A CHIP Success Story

A few years ago, I met with my Home Equity Bank representative. He was trying to encourage me to go visit my financial adviser referral partners to offer the Chip Reverse Mortgage product. I explained that I did not know anyone who had a reverse mortgage so it was hard to promote to financial advisers or anyone.

I asked him to tell me a success story and he came back with a great one that ticked most of the boxes. A couple in their mid-70s had met with a financial adviser to go over their portfolio and financial situation. They wanted to sell some of their investments to get a little cash.

What the adviser saw troubled him. The couple had about $200 a month left over after they paid for their bills and groceries. What’s more , they were driving a 20-year-old car, their home needed repairs and they hadn’t been on a vacation in years. It was a classic case of house rich, cash poor.

The adviser contacted Home Equity Bank and they appraised the house. The couple were eligible for $200,000 based on the value of their home. They took this money and the adviser invested a little more than half in funds that would provide them with $1100 a month in income. They took $25,000 and bought a new car, did some repairs to their home and took a vacation. They took the balance and used it to help out their grandchildren with university with tuition. With one move, they were able to increase their cash flow, make their home more comfortable, do repairs, enjoy their retirement and help out family.

Now that it’s fall and the spring home-buying rush is over, perhaps it’s time for you Dominion Lending Centres mortgage brokers out there to see if you can help out another segment of the population. Contact your financial adviser partners, your certified Seniors Real Estate Specialists and past clients with elderly parents. There are a lot more people out there that could use your help.

– by David Cooke