Yes we’re in the busy season! Lots of shopping, cookies to bake, parties to plan for and to attend. For many though, pesky debt responsibilities can dampen their planning and holiday enjoyment. Others may not worry about their debts, thinking they can always get their financial house in order after the holidays.

But if you’re concerned about your debt obligations, consider adding one more task to your pre-holiday season to-do list! See if you can use your home equity to consolidate your high-interest debt into a new or existing mortgage. You’ll lower your payments, save on interest and (more…)

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“If you don’t feel comfortable with putting the $10,000 that you have saved over the last couple of years into the down payment of your home, why don’t you take advantage of the Free Down Payment Mortgage from Scotia Bank,” I said to Kirk as we discussed the pros and cons of putting all of his liquid assets into his down payment.

“I want to buy a house but I really don’t want to stay in Calgary for more than another year,” said Rachel as we sipped coffee while discussing her housing situation.

Rachel, who is in the process of going through a divorce, had just sold her home. Facing the dilemma of whether to buy or rent, she contacted me for advice. Normally when faced with this kind of question, I would be a strong advocate of buying a home based on the low interest rates and the fact that over time, market fluctuations aside, a house is a sound investment. In Rachel’s case however, there was wrench thrown into that logic.

“My heart belongs in Kelowna,” she proclaimed. “I just can’t see myself being here more than another 18 months.”

It is one thing to advise someone to buy if they plan on owning for the long term, but to advise someone to buy short term in a market where fluctuations are anybodies guess is another story (by the way, anyone who seems certain that they know where the market will go short term is either ignorant, or biased). In Rachel’s case renting was an option she had to take seriously, by buying with the intent to move in 18 months she ran the risk of being in a negative equity position just from the Realtor fees and payout penalties on the future sale alone. If Rachel didn’t see substantial positive returns on the property within the first year, she would almost surely lose money on the venture.

However, Rachel seemed to be the type intent on buying no matter what. Someone had convinced her at some point in her life that paying rent was the fools play. Most likely that person was right long term, perhaps I was wrong to advise her that renting for the short term is the best strategy in this market when an uncertain future exists. That being said, and understanding that the strong desire to buy was present, the advice I gave her was as follows.

If you are going to buy, and you are uncertain as to whether you will be living in Calgary in the near future, buy as if you are buying to invest. Don’t necessarily buy for your tastes, or your lifestyle, buy with the intent to purchase a property that will be easy to rent, require little maintenance, is in a central location, and that will provide somewhat positive cash flow. By doing so, if you decide to leave in 18 months, you can easily rent out the property and hold onto it long term, ensuring that you don’t realize any losses as a result of short term market fluctuations.

In Rachel’s case she will probably end up buying, but as a result of our conversation she will do so with a little bit more caution and a whole lot more knowledge. Most importantly, if her heart does move her to Kelowna, she won’t have negative equity in her home holding her back.

Email your questions to ask@asknolanmatthias.com

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Calgary, AB (October 9, 2009) – Mortgage Architects continues to aggressively grow in Alberta with the signing of lead planner Nolan Matthias, a new-generation mortgage planner and author of the best-selling book Golf Balls Don’t Float, a look at how lessons learned as a competitive golfer translate into success in both business and life.

“I chose Mortgage Architects because of their mortgage planning focus, strong leadership team, and reputation in the industry,” said Matthias who received his mortgage brokers license while still in university. Matthias has worked with two national mortgage brokerages and also spent a year with filogix, the industry’s leading technology provider. “The year I spent with filogix gave me a great grounding in this business,” said Matthias. “I met so many of Canada’s top brokers and I learned from each one of them.”

Matthias also credits his parents for helping him get started in the financial industry, both of whom have their own successful financial careers. “I have also known Meini Ickert, Vice-President of National Sales for Mortgage Architects, for many years so I knew that when the time was right, Mortgage Architects was the place for me,” said Matthias. But it is the company’s mortgage planning focus that was the best fit for Matthias who started talking to his clients about their overall financial picture right from the beginning and actually met with Alice Chan, SVP at Mortgage Architects, while at a Mortgage Planning Conference in Vegas. After the success of his first book, Matthias is now working on his second, which of course is on mortgage planning – The Mortgaged Millionaire.

Matthias currently receives about 60% of his business from realtors who appreciate his philosophy of not selling rate but instead looking at a client’s complete financial picture. Referrals being the other primary source of business. “Clients and my referral sources appreciate that I don’t focus on rate and always try to protect my clients,” said Matthias. “If clients just want to focus on rate, I’m happy to send them elsewhere.”

Going forward, Matthias’s goals are focused on continuing to build his book of business while meeting his target of having at least 100,000 copies of his new book in print in 5 years.

“It’s very exciting to have Nolan Matthias join our fast-growing team in Western Canada,” said Ickert. “Nolan Matthias has so much incredible potential, and we’re thrilled to help him achieve his many goals for mortgage planning and business success.”

ABOUT MORTGAGE ARCHITECTS INC.
Mortgage Architects is a national mortgage brokerage focused on delivering mortgage-planning services to Canadians. Lead planners require a proven track record of high professional standards and $25 million in yearly volume prior to joining the company, which is structured to be owned by the planners themselves. Lead and associate planners offer homeowners access to mortgage options from over 50 lenders, including major banks, credit unions, trusts and other national and regional lenders. With this outstanding range of mortgages and lenders, the experienced mortgage planners of Mortgage Architects are helping more Canadians achieve their goals of homeownership and financial security. For more information: www.mortgagearchitects.ca.

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Here’s an interesting twist on marketing your property from a friend in Europe. Just goes to show that things are slowly moving towards a more technologically driven industry.

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