Newsletter July 2019

Happy Canada Day!!!
We wish you all the best and most success in this country!!!
Happy Birthday Canada!!!

Here is the latest news:

1. Prime Rate has remained unchanged for a few meetings now. What to expect next – decrease in overnight lending rate?
2. Fixed rate has become significantly lower, what to do in this situation?
3. On the 18th of July we will have another draw for the “Three Night Cottage Vacation”. Why “Manage Your Mortgage” program is interesting for you.
4. Review of changes in the mortgage industry from 2008 to 2019.
5. Manulife Bank offers an easy way to open a chequing or savings account with a 3.25% interest.
6. If you are planning a trip and do not have benefits at work, you can process your own travel insurance at our website.
7. If somebody is interested to change company or obtain employment in IT industry, currently, there is an opportunity available.

Now about everything in details:

1. Prime Rate has remained unchanged for a few meetings now. What to expect next – decrease in overnight lending rate?

Prime Rate = 3.95%. Even though US is planning to lower its overnight lending rate, possibly as much as 3 times in the near future, Chair of Central Bank of Canada has stated that this is not the planned directive for Canada. One of the indicators with a lot of influence on the decision of Central Bank is the inflation. Inflation in Canada has increased to 2.4% in the month of May, which is above the norm of (2%). Additionally, unemployment levels have been at record low levels for quite some time. These indicators tell us that there is no need to rush and lower bank rates. Although the experts believe that there should be at least one rate drop this year.

2. Fixed rate has become significantly lower, what to do in this situation?

Just a few days ago I spoke to a couple, who obtained a fixed rate of 3.39% just last year. We discussed the option of switching to a lower rate (noticeably below 3%). Yes, there will be penalties, approximately $4,000, but the gain over the remaining period will be more than eleven thousand dollars. So, in reality, they will be saving $7,000 over the next 4 years and the payments will be a few hundred dollars less per month. One of them was even hoping to increase the amortization period to lower mortgage payments even more. They also wanted to take out $40,000 for renovations.
Life goes on and today we have an opportunity to use current situation to correct our ongoing mortgage and help with our financial situation.

IF you have a variable rate mortgage, with small discount to Prime rate, or a fixed rate mortgage with a rate over 3 percent, contact us and we will review the option of getting out of the current contract.

In order to understand how beneficial it may be for you to switch to new conditions, you need assistance, and we are willing to help you. Half an hour meeting or even a pre-planned phone conversation can very likely help you save some money. In the early stages, you can simply send us an e-mail and request an evaluation of your current situation. If we receive such enquiry, we will do all the calculations, including cost of penalty and administrative costs. If it turns out that you may benefit, we will inform you.
Send us the necessary information and what you wish to do (increase amortization period, consolidate debts, add a secured line-of-credit, refinance, or simply lower your interest rate) to Galyna at mail@totrov.com.
Below is the information we need to analyze your situation.

1 – Balance of your current mortgage and approximate value of your property.
2 – Name of the bank and the remaining amortization period.
3 – Current rate, fixed or variable.
4 – If you have a fixed rate mortgage with a major bank, please send us first 2 pages of your annual mortgage statement. These pages contain important information regarding potential penalties.

New bank will cover the legal costs and the cost of appraisal so you do not have to worry about that.
Also, I would like to explain why there is no point in calling your current bank trying to get a good rate when attempting to switch from variable to fixed rate mortgage without penalties.

1 – Any discounts (unpublished promotion) only apply to new clients. And we are always aware what promotions are offered, we shop around for you.
2 – Obtaining the best rate is done by forgoing our commission, which is why we are always able to offer you better rate than your bank (through our commission).
3 – We will find the best rate for you based on your current situation and future plans.

Yes, you will have to provide some documents to us for the switch but often it is worth it.
We hope to hear from you and see you soon.

3. On the 18th of July we will have another draw for the “Three Night Cottage Vacation”. Why “Manage Your Mortgage” program is interesting for us.

On the 18th of July there will be another draw for the “Three Night Cottage Vacation”. 5 prizes will be drawn and one of them will offer the winner a stay at a cottage with family or friends. Check our website for details of the draw – https://www.totrov.com/en/three-night-cottage-vacation-en/.
But it is not important on whether we do the draw or not. On its own the “Manage Your Mortgage” https://www.totrov.com/en/mortgage-en/manage-your-mortgage/ program is so interesting that everyone should participate in it. There is no losing, you win in any situation when it is time for a mortgage renewal. Rates offered by the bank can change very fast, fixed or variable. Participation in this program is a guaranteed win.
We wait for you to register and good luck in the draw.

4. Review of changes in the mortgage industry from 2008 to 2019.

We are all aware that obtaining a mortgage has become harder. Please check our website to see what has changed in the mortgage industry in the past 11 years https://www.totrov.com/en/mortgage-en/mortgage-rules-changes/. The information will be available on the website on Sunday (we apologize for possible inconvenience).

5. Manulife Bank offers an easy way to open a chequing or savings account with a 3.25% interest.

Starting April 15th and for the following 6 months, Manulife Bank offers 3.25% annual interest on all new savings Advantage Account.
After the 6 months period the rate becomes a regular 1.5% which is still an attractive investment, in comparison to regular accounts with big banks. This savings account can also be used as a chequing account with all its particulars. Very convenient and many of our clients use this bank. You can open an account yourself by going to the following link.
client.manulifebank.com/edo/#/productCatalogue/BANK_ID=MNL&LANG_ID=001&REF_ID=82609&PROMO_ID=DSP2019

6. If you are planning a trip and do not have benefits at work, you can process your own travel insurance at our website.

For a few years now, our website allows you to process your own travel insurance when traveling abroad. If you are over 60, we would prefer to process travel insurance through our staff as there are different coverage options based on possible existing conditions. In other cases, we recommend to use our website and process travel insurance at your convenience. Please visit the link below to find out more about travel insurance where you will also be able to find premiums for your travel coverage. Approximately in the middle of the page, you will find a link to a page where you can process your insurance. If you have any questions, call us during our business hours and we will be happy to assist.
https://www.totrov.com/en/insurance-en/travel-insurance/

7. If somebody is interested to change company or obtain employment in IT industry, currently, there is an opportunity available.

One of the leaders in the Enterprise Mobile Device Management, Canadian company SOTI Inc., located in Mississauga, with offices in Waterloo ON, United Kingdom, Norway, Australia, and more, is currently looking for full-time employees in different fields of Software development, QA Testing, Finance, Sales Operations, etc.

You can find more detailed information on the company by visiting the following links:
https://www.soti.net/
Careers: https://www.soti.net/careers
and further: https://soti.wd3.myworkdayjobs.com/Careers/jobs

If you are confident with your skills and experience and have interest in joining one of the most dynamic developing companies in the Canadian High Tech – send us your resume and we will forward it to the company.
You will be contacted by a person, whom I have known for a long time and have a lot of respect for. Good Luck!!!

We hope to hear from you or see you soon.
Our office is open 9 a.m. to 9 p.m. and Saturdays by appointment.

Serguei Totrov
Financial Advisor, CFP, CLU, EPC
Mortgage Broker, AMP
416-222-0533
www.totrov.com

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