James Wong Richmond Mortgage Broker

Vancouver Real Estate: Buying Your First Home

Buying your first home in metro Vancouver is not difficult if you have the income to qualify for financing. If you make around $56,000 a year gross income, you can be qualified for a loan around $255,000 at 5.25% interest rate, 30 years amortization. At today's low rates around 4.5% and stretching you loan to 35 years, you can get a loan up near to $300,000.

You can buy with as little as 5% down payment, or if your parents are able to help out, they can provide the 20% down payment you need.

Renting versus Owning

Renting is for the short term. If you want to build wealth, home ownership is a proven way for many home owners to build wealth. A home say at $280,000 value can be rented at around $1,400 a month.

Now, lets look at some numbers when you are owning your home. If you can provide the 10% down payment, you will be financing your home with a $255,000 mortgage (including 2% mortgage insurance premium). Your monthly mortgage payment for the loan is around $1,400 a month. The cost home ownership is around $250 a month more than renting when you add your maintenance fees and property tax.

You initial mortgage principal pay down is at around $296 the first month, and this increases about a $1 each month on your principal repayment. This may not be much in building your home equity. But, over hthe long term, a 5% appreciation in your home value makes owning your home a winner.

Paying Off A 30-year Mortgage Sooner

You can pay of your 30 years mortgage in just over 11 years at the same monthly mortgage payment as your 30 years mortgage. A mortgage repayment accelerator program like Money Merge Account will optimize and accelerate paying off your mortgage.

Wealth building through the purchase of a second home can start as soon as you are comfortable with your finances, and the discipline involved in managing your mortgages. Finding the down payment for your second home can be worked out. There are many ways how this can be done. If you have built up enough equity, co-ownership with family members or your family income has increased substantially, you can plan on buying your second home.

You can view the latest Richmond and Greater Vancouver housing market information here.

If you like to find out how you too can benefit from real estate ownership, you can contact me at 604-721-4817 or email me.

Building your mortgage business required good planning. Working as a team helps greatly in building your mortgage business. Team efforts outperform individual efforts because in a team environment, special effort from team work results in higher productivity . Team members work together magnifying their personal energies and talents to deliver tangible results.

Team Incentive

Working as a team helps to leverage your time and income. The TMG team model allows you to recruit other mortgage brokers to join your team. As a team leader you are paid 10% on the commission earnings of team members you recruited.

Incorporating Money Merge Account Activities

TMG's team concept and United First Financial MMA business concept can help you build your business many times bigger than doing it on your own. A team member can provide a unique "customer for life" service to their customers using the money merge account system. Home mortgages are often multi-generational as the parents are involved in their grown-up working children's purchase of their homes.

A team can provide better service to their home owners when they are able to provide a comprehensive personalized mortgage service to their clients. If you are planning to join a mortgage team in Greater Vancouver, You may want to check out how you can expand your mortgage business by joining the Vancouver Home Mortgage team.

Vancouver home mortgage and loan service is a 24/7 one-stop mortgage solution for home owners. If you are interested to find out more information on how best your can manage your mortgage and pay off your loan in 8 years or less. Follow this link to read how you can save thousands of dollars in mortgage interest payment.

The mortgage market in Canada is still evolving. There is a constant partnership-competitor conflict between Canadian Banks' and mortgage brokers for home owners. The Banks' retail banking operations are separate from their Broker Service mortgage business.

Home owners are using Mortgage Brokers for their personalized services and access to better mortgage rates!

Mortgage brokerage companies are at a disadvantage position for mortgage renewal business. Currently, over 80% of home owners renew their mortgages with the same lenders when their mortgages are due for renewal.
Some mortgage bankers are working closely with their mortgage brokers in retaining their book of business.

Mortgage Interest Savings

Any home owner can save tens of thousands of dollars in interest payment on their home mortgage. In recent years, Manulife One is the only mortgage plan being promoted to home owners on how they can accelerate repayment of their mortgages.

A new innovative mortgage program called Money Merge Account program is now available to home owners in the US and Canada. You can contact James Wong at Vancouver Home Mortgage.com for more info on this program.

Customer For Life

Any experienced mortgage advisor will learn to develop their own market and source of business referrals. Mortgage is a commodity and home owners are sensitive to the rates being offered, and valued the service of a mortgage broker.

Your can see for yourself on the comparison here that the overall mortgage savings are affected much more on how the mortgage principal is repaid than the mortgage rates.

The mortgage business like any service business is about "Marketing You" and being seen and noticed by the public what you do for a living. Home owners and home buyers have a need for home mortgages and they are motivated for self-interest to find the best mortgage products that help them save money.

Large Market For Mortgage

The news media have helped to bring to the consumers the awareness and services provided by mortgage brokers. Most cousumers are still fixated on shopping for the best or lowest rate mortgages. Your role as a mortgage advisor essentially is to win over your client's mortgage business and hopefully "to keep the business and the client for life".

Branding Yourself

TMG will be the first mortgage brokerage company that can offer your own branded TMG mortgage products. Your mortgage lenders who are not working with TMG and you as "business partners" are more often your competitors. The reason being onces the your client's mortgage is placed with your lender, your client is likely to renew his or her mortgage 80% of the time. You do not get paid if the lender is not your business partners, and your are not protected through a "trailer-fee agreement".

Mortgage Advisory Service

The signing of a mortgage by a home owner is only the first step in his or her financial obligation to repay the loan according to the term of the loan contract. As a mortgage advisor, your value to your client is helping the client save money by "designing a mortgage repayment plan" that will result in the mortgage being paid off in "half-the-time"

The availability of TMG branded mortgage insurance and fire insurance will compliment your role and service as a one-stop solution to your home owner's mortgage needs. This further reinforce your role as your home owner's personal mortgage advisor.

If you are exploring the career opportunity and like to become a Mortgage Broker, you are welcome to contact me at 604-721-4817 or email me. The income for a Mortgage Broker can be greatly increased by promoting the Money Merge Acount program to homw owners.

A mortgage broker get paid for his effort in bringing a mortgage deal to a mortgage lender. He or she is not an employee of any mortgage lender, but works independently helping borrowers with their home financing needs. The compensation is only paid when a mortgage financing deal is successfully completed.

Direct Compensation

Depending on the types and terms of the mortgages being funded, a mortgage advisor may be compensated from 50 bps to 80 bps on the traditional fixed term and variable term mortgage products. The commission payable by a lender is based on the mortgage loan amount, and 100 bps fee is amounting to 1% of the loan amount. Some mortgage lenders use a matrix system while others may change the compensations according to the special promotions or rate discounts they offered.

Volume Bonus

This is an additional commission payable on the deal by a lender to a mortgage company based on a mortgage company's annual business volume target set by a lender. A larger and more established mortgage brokerage will likely be compensated with the highest volume bonus payment of 35% or more.

Commission Split with Brokerage

Majority of the Canadian mortgage companies set individual sales targets for their broker, and the split a mortgage broker receives may range from 75% to 90% of the direct commission and volume bonus. The annual commission a mortgage broker receives varies and is largely dependent on the number of deals the broker is doing.

Other Fee Incomes

There are other incomes a mortgage broker may get from direct sales of Money Merge Account system, referring mortgage life insurance, referral fees from real estate referral deals, commercial mortgages, mortgage investment corporation, etc.

Broker Fees on Non-traditional Loans

There are other income opportunities for a mortgage broker. He or she may get paid on sub-prime mortgages, private mortgages, construction loans and other mortgage services provided by the broker.

Trailer Fees - Your Business Model

Some mortgage bankers are working on compensation models that enable a mortgage broker to build up their book of business by retaining mortgage borrowers book of business through renewal of borrowers' mortgages. TMG will be providing a TMG Mortgage that will help the brokers to build their own mortgage businesses and keep their customers.

This is the future direction and change to mortgage origination and customers retention business model for any mortgage broker. Being paid once for placing a mortgage and only having less than 20% chance of being paid again the second time when a client's mortgage is due for renewal is not for your long term interest.

Have questions you like to get the answers, you can view the my mortgage savings website or email me.