In this video I explain how a Rent to Own works. The purchase price, monthly payment and down payment are different for every deal. This is meant to be a basic overview of how they work. Please don’t get hung up on the numbers as they are just for illustration purposes. If you are considering buying with a Rent to Own or you are a property owner who would like to sell a property with a Rent to Own please contact me for help with your specific situation.

For more info on the pros and cons of rent to owns read this or contact me.

Should you go fixed or variable? Or both? This is the question many homeowners ask. In my latest video I explain the difference between them and highlight one of the misconceptions people have with variable rate mortgagees.

I also offer some very basic advice to help you decide which is better for you. In my opinion the decision should only be made within the context of your current financial situation. For some people a variable can be too risky, for others it is perfectly acceptable.

As always if you have any questions please contact me.

The truth is the Walmart executives will have their work cut out for them.

What does this mean for traditional banking? And does Walmart have any hope of challenging the Canadian Banking industry? -God I hope so. (but I’ll get to that in a later post)

Last I heard there were over 40 applications for Canadian banks in Canada. It seems everyone wants a shot at the Canadian consumer. This will be good news for fee sensitive Canadians but will Walmart’s foray in the financial business end poorly like Canadian Tires’ did?

Of all the retail and grocery store giants attempting to enter the financial space Walmart may actually has a decent chance of succeeding, provided they don’t muck it up.

When Canadian Tire entered the mortgage business a few years ago it just seemed weird to me. I couldn’t imagine sitting around a dinner party and telling my friends about my Canadian Tire mortgage. The brand didn’t seem to make sense to me.

To be fair Canadian Tire had a really good mortgage product for while. It was a strong competitor to the Manulife One and the National Bank All-in-One product, but it just didn’t have any sex appeal and it never really got any legs. (pun intended)

Now granted having a Walmart mortgage is probably not going to be considered sexy, but when I think of Walmart I immediately think -low prices. I can envision a Walmart Bank running on razor thin margins and passing the savings on to their customers.

I think if the Walmart bankers are smart they will enter the market gradually. Much like ING direct did when they came to Canada. ING established a strong foothold by offering a really great high interest saving account. It got them noticed and built brand loyalty.

I think Walmart’s chances for success are much higher if they can build a flagship product and build some momentum.

If they come out with every service imaginable I suspect even if the prices are low the service will probably suck. It takes time to build a quality service team.

I for one am excited the retail giant it treading into the banking industry. Whether they survive or not the increased competition will rollback rates on mortgages and lower the cost of other financial products.

What do you think?

Life insurance is the type of thing you buy and hope you never need. Unfortunately not all types of life insurance are created equal.

One type of insurance I do not like is “Creditor Insurance” it is when you have life insurance on a loan or mortgage. Basically, it will pay off the loan in the event of a claim. This sounds wonderful, but can actually be a huge problem for young families.

CBC did a review on some of the problems a couple years ago.. To be fair not all types of Creditor Insurance are the same, but as a general rule it is better to get life insurance separate from your mortgages and loans.

In this video I talk about the problem a young family could face if they choose Creditor Insurance instead of getting a separate life policy.

In 5 years of mortgage brokering I have never sold a single policy. When I first got into the industry I did my homework and realized there were cheaper and better alternatives. I recommend borrowers speak to a licensed life insurance agent.  Don’t ever buy it from your banker or broker unless it is just for temporary coverage.

Disclaimer: If you currently have Creditor Insurance and want out -do not cancel it until you talk to a qualified life insurance person.

Mortgages come with several different options. Open or closed, fixed or variable. This video will explain the differences so you can make an informed choice.

The video will answer the following:

* What is the difference between fixed and variable rate mortgages?
* What is the difference between an open and a closed mortgage?
* What do most First Time Buyers choose when getting a mortgage?

To take the variable vs fixed quiz go to Smart First Time Buyer.ca