Donald Trump - one of the most well recognized and successful real estate investors and developers world wide - comments on the importance and usefulness of mortgage brokers in his latest book Think Like a Billionaire.

Many people have contacted me to ask questions on how lenders evaluate their ability to qualify for a mortgage. While there are a number of variables that lenders assess, what I am going to focus on here are the important ratios and numbers that they examine most closely.

With the popularity of adjustable (variable) rate mortgages continuing to grow in major markets like Toronto, the need for accurate comparison of these products becomes increasingly important. While traditional closed term mortgages are very easy to compare, adjustable rate mortgages (ARMs) take a great deal of understanding to effectively evaluate. Where selecting a specific closed term mortgage from one of two institutions offering the same rate would likely only mean a slight variation in the privileges provided, the options and interest calculations on adjustable rate mortgages can literally mean the difference of being financially savvy or being conned.

In all the mortgages that I arrange I find it very surprising how few people actually ask me how I get paid. A recent study in the US indicated that less than 10% of people could properly identify how different types of mortgage providers get paid during the transaction. Don't you want to know whether that person who is so eager to sign you up has a financial advantage to selling a particular product?

As we all know, real estate financing plays an integral role in the affordability of real estate to most Canadians. In fact, every 1% increase in residential mortgage rates literally ends the dream of home ownership for thousands of Canadians. When these rates play such an integral role in the availability of housing for Canadians, how is it that so many people have so little understanding of how these rates and mortgage pricing models are arrived at?

As the credit system continues to evolve in Canada, consumers are getting increasingly confused with a greater variety of credit products from a greater variety of financial institutions. In fact, the average Canadian gets more correspondence from financial institutions than they do from family and friends combined (what have we come to?). Just to complicate matters worse, institutions are granting credit to consumers at a pace never seen before.

People seem to be continually confused by their credit report (aka credit rating), and how it impacts their ability to get credit. This document alone can impact your ability to work at certain companies, rent an apartment, get a credit card, and even open a savings account.

Is paying off your mortgage bad for your net worth?

In a society where financial planning education and free financial resources are as readily available as fast food, it is difficult to believe that most people actually do not understand how to use their cash flow and capital effectively. When determining many people's top financial objectives, a large number of people select building their net worth and paying off their mortgage at the top of their list. While at face level these seem to be rational choices, what I will show you is not only why these goals may directly contradict one another, but also how being mortgage free is likely a detriment to building your net worth.

Inside this guide you will find (among a plethora of useful information to guide you through the home buying process) an application form and a fax cover page that outlines what is required to process a mortgage.

In today’s market it completely amazes me how many people shop endlessly for their mortgage during their first purchase, but simply accept the banks first offer when renewing their mortgage. As a former marketer for a major bank, let me re-assure you - that first offer is almost definitely not their best offer. Most banks start renewal offers at posted rates!