Mortgage Expert Reveals Tips For First Time Home Buyers In Canada

In this video, Mortgage Expert Rasha Ingratta Reveals Tips For First Time Home Buyers In Canada. She answered many mortgage-related questions and talked about whether investing in real estate with increasing interest rates is advisable.

Today i have a mortgage agent as a guest who has 20 plus years experience to answer some of the most common questions that i’ve been asked in recent times like you know how long the interest rates going to continue to increase when they’re going to come down is it a still good time to take variable mortgage or fixed mortgage should i buy under corporation or

Your personal name should i buy now or wait should i refinance now or wait should i go for a heloc or cash out refinance all these questions so stay till the end i’m sure you’re gonna get a lot of information any of the questions you have didn’t get answered let me know in the comments below namaskar welcome back to my channel this is aditya soma again another

Great episode regarding how you can achieve financial freedom using real estate vehicle so today i’m here with a special guest rasha who is crushing it in the mortgage industry from 20 plus years so i’m really excited for this interview because you know i have so many questions so much the real estate is completely now revolving around this interest rates so

Welcome russia thank you so much thank you thanks for having me yeah so for people who don’t know you who are you who am i yeah um so my name is rasha and grata i’ve been with mortgage intelligence since 1999 and um i actually got into the business by accident not by the car accident no no so you’re more focused in windsor essex or you’d work everywhere pretty

Much like i love working local and i love doing mortgages locally yeah i have had clients that i’ve moved out of the city like they’ve gone to toronto london kitchener alberta and if they do go outside of winter i still try and help them and then if i know i can’t help them i refer them to a broker that i know and i can trust that can help them yeah oh that sounds

Fantastic you know fun fact is i got my mortgage license three and a half four years ago before i became an agent but i said like after two applications i think this is not for me you need a specific personality to do the mortgage you have a great personality too no i mean specific personality for the mortgages for the mortgage yeah like so i love the sales both

Of them are sales but for me i don’t like to sit in front of computer paper see documents you know a lot of things and numbers crunching the numbers all day long yeah i love the numbers but only for the properties not the mortgages you do a great job there thank you yeah so today i got like so many questions that many investors have been asking me and also some of

The questions i have so i’ll start with the biggest question so people can get out of that wave so is it still a good time for investors to invest in real estate because of these interest rates yeah so when it comes to windsor and surrounding area because don’t forget you know a lot of investors that want to invest here sometimes think about windsor but we’ve got

Beautiful areas to invest outside of winter like kingsville and leamington bell river south emmasburg so those are all beautiful areas that you can invest in yeah and we are still one of the best places to invest your money and build wealth and real estate yeah i agree with that you know i’d want to get the confirmation of that because i personally heavily invest

In windsor but how does the interest rates you know impacting impact that yeah because you know right now that’s why like many people are holding off because the interest rate skyrocketed yeah so it is a little bit of a scary time right now because our interest rates went from you know we actually had a had a straight and the one like 1.69 1.59 and then they quick

Quickly creeped up to early this year and now we’re in the fours and we have some interest rates in the fives fives yeah so you know with that big jump right there uh people have slowed down a little bit and looking at homes um but i do find a lot of the old pre-approvals are coming back because the prices have come down a little bit and the market has slowed down

A bit yeah um people that you know the clientele and the category of let’s say wanting to buy a house in the in the 500 range now they can do that yeah yeah that’s true yeah because you know before to find a nice home under 500 is was challenging yeah like i saw an offer to purchase just before i came here today um 4.99 and i quickly went to the mls yeah and i’m

Like oh my gosh this is a really nice home how did he get it for 4.99 but like you know what it’s great that yeah the same property would have been like 8 500 750 750 or something like that yeah that’s insane right like even though the rate went up but now they’re getting 250 000 less correct but you know um very strong fear in the market is like is this rates

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Can go up can they still continue to climb up okay and how long so here’s my prediction because i did a tick tock video not specialist or an economist and i said no it says it right there in my title that i am a mortgage warning we are not financial advisors but to answer that question because i’ve been there for like 23 years and i’ve seen the rates go up and

Down right so the bank of canada when they um increased interest rates it’s because there’s inflation and they’re trying to slow down the economy right you know um lower inflation when they uh do that which they are doing a good job of that right now inflation rates are going to come back down and we might hit a little bit of a recession and if that happens okay

They’re going to now lower interest rates again pink bank of canada yeah they’re going to lower interest rates to boost consumer confidence and if you remember during the pandemic in march of 2020 what did the bank of canada do they reduce the rate they reduce the rates because everybody was panicking they’re not spending money they’re not spending money yet if

They’re not spending the economy cannot sustain can crash yeah and they were worried about that i love that analogy because you know i think in reality that’s what happened in the past too right like covet but before that like have you seen another crashes before that’s like similar kind of so the crash that happened in 2000 yep right so that happened and where it’s

Right consumer confidence and the bank of canada um they’re just trying to do that to help the consumer and i think by 2023 to answer your question by 2023 i think that rates are going to come back down again i’m not an economist and i would pay a million dollars for a crystal ball you know but because of what i’ve seen in the past it only repeats i think in the

Same way because you know now they’re increasing crazily because everyone is spending money and they’re worried because that money people are spending is not the real money they’re spending from their home equity line of credits depending on things that they’re not supposed to so yeah no i i agree on that and you know that brings me up to another question because

You know the rates are going up and they can for until 2023 and then you know until this the bank of canada stops it but do you recommend people going for a fixed rate or variable yeah so i talk about a lot about that in my videos as well um i think uh to go with a variable rate mortgage okay because then this way you and i both know the average consumer does not

Know this if you lock yourself into a fixed rate mortgage it’s not easy getting out of a fixed rate mortgage penalties can be huge especially if you lock in yourself to like let’s say four five nine right now and rates go down to 289 or 3.29 you’re going to pay a hefty penalty to get out of that mortgage where if you did a variable rate mortgage the penalties are

Minimal yep and then you could lock in at any time without penalties depending on how your contract reads true but generally the variables are just three months interest only three months interest payment so like if you’re an investor that that’s why like personally i go with all videos like never fixed on this house i without knowingly i have a fixed rate because

The banks they didn’t tell me when they’re doing it and i was new at that time i didn’t know anything but i realized i tried to refinance couple of times they said the penalty is like ten thousand twelve thousand for 280 000 mortgage heavy whereas it was variable i would have got out and for a better rate my monthly payment would have gone down yeah so it’s very

Interesting especially now you’re buying it for a good price but the interest rate is higher because your monthly payment is now your monthly payment is higher but if you put a variable yes you’re still getting lower than the fixed rate right you’re getting lower than the prime rate so prime is at 4.7 right now it just increased by one percent and um you can get

A really good discount on prime so even with the discount on prime you’re still paying less than a fixed rate market yeah i mean that’s a whole different topic yeah yeah i know yeah we can talk for 15 minutes if you do the math and if you actually look at statistics for the past 10 years it’s actually been better to go with a variable even when rates were very low

Yeah love it so now that brings me to another question like a lot of homeowners acquired a lot of equity all these years yes now is it a wise decision to refinance now or wait for a few months because they want to invest into another rental property is it a good time to refinance yeah you know what in our industry people ask us for our opinions all the time and i

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Always use the word crystal ball all the time because you know if you were to ask me in january where rates would be today and i said to you they would be in the fives you’d probably laugh at me yeah you know what i mean because they were at two because they were in the twos right so we don’t know what’s going to happen but we can only go by what history has shown

Us right and that’s what economists do right um so to answer your question if if you are going to borrow money against your home to invest your money that’s never a bad idea if you’re going to borrow money to go spend it at the casino that’s a horrible idea you know but you’re you’re investing your money into another asset you’re building wealth yeah okay so you’re

Making your money work for you yep um interest rates are actually still better you still can make more money investing your money than leaving it in the home equity or in your bank yeah so true i’m this big believer in that but i just want to hear from experts what they say because you know i’m still baby in this game i just want to learn um you know that brings me

To this question uh i i would love to refinance but you know for primary homes we have this option of going for heloc yeah or i can do a cash refi what’s your take on that which one would should i do because you know for example this house i have equity do you suggest me going for heloc or cash out so if i looked at your application and i saw that there was a huge

Penalty i would do a healer got it okay i would do a heloc and then i would wait for your mortgage to come up for renewal and then tie the two got it okay this way you’re not paying a huge penalty yep um this is all tax stuff and accounting stuff one day you might want to record this with an accountant anything you do for purposes of investing money is a write-off

Yep so when you refinance your mortgage and you did pay that ten thousand dollars hopefully you know accountants agree with me on that because i do it all the time um there’s a tax write-off because you’re you’re it’s costing you money to invest that money yeah that’s an investment it’s not your personal home mortgage well it is a personal you’re refinancing your

Home no but like the amount you’re taking out you’re using for the investment so the interest on that particular amount you can exactly but if i don’t have the fixed rate let’s say if i have a variable oh then that’s just the three month interest penalty got now the recent concern i i read an article somewhere they’re talking about like you know he logs they’re

Gonna put some kind of limitations where i cannot access majority of my funds like it’s going to be like 60 65 yeah yeah so like how does that gonna impact my refi so it’ll just you’re you’re not gonna borrow as much as you can right now so that’s another thing too if you are looking to invest your money i would do it now take it out now even set up your reef your

Home equity line of credit right now so in in hopes that in the future that they don’t that’ll be grandfathered got it so they’re not going to take that money away again i don’t know but generally they can change rules all the time but i i can’t see that happening if you’ve already got got it yes because if they’re gonna ask money now a lot of people will be in

Trouble yeah right if they’ve already borrowed it love that so far you know i’m learning a lot hope you guys too you know if you are make sure hit that thumbs up button you know uh or else this video won’t be you know popping up to other people who might get benefit out of it share it with your friends another question that that i i get very often i’m an investor

I’m looking to buy my next property or third property or property is it advisable to buy it on personal or corporations what are the benefits very good questions so when you’re buying an investment property it is advisable to put it in a hold code company because in the future immediately it might not have very big tax implications because you’re you know you have

Revenue coming from that property and then you have expenses so you’re good but when you go to sell that property in the future your taxes on that capital gains will be more than than it would be if it wasn’t a whole coding this is a question you want to talk to your accountant about when you get into three or four properties but it is advisable to do of course you

Know we are not tax accountants or professional financial advisors so of course seek the professionals don’t just take our advices we are random people on social media just a warning there but you know the concern i heard is like you know i love hold costs like most of my properties are on hold core you know some people are afraid that they cannot get mortgages

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Yes yeah on the residential side if i am buying it so what is the solution there so banks have two departments when they lend out mortgages they actually more than two but you’ve got your residential mortgages and you’ve got your commercial and then you’ve got the residential for hold code yeah so they all have different rules okay so under residential usually

Banks don’t like to lend more than four or five properties then you go to them to the hold co category you can do like eight nine ten properties right some lenders don’t have a limit got it okay i have clients that have more than 10 or 12 properties and now we’re doing mortgages with not private lenders they’re they’re called b lenders but a lot of times people

When they hear a word b they think it’s like it’s going to be heavy interesting yeah and it’s not it’s not it’s not i always say if you’re gonna make money who care if you’re going to pay one percent higher than a bank so you just need to make sure the numbers are working okay the number cash flow is so important you got to make sure your cash flow is going to

Work before you you got to do your homework and your numbers and your calculations you kind of answered one of the other question i wanted to ask like you know how many properties can i buy you know if i because a lot of people have a notion that banks will stop saying no after five properties or six properties can i but you just make sure like your some of your

Clients own 10 20 properties so is that possible to buy unlimited number of properties it is it gets creative like it depends on what lenders you’re dealing with um you know i have a lender i have a client that has private mortgages but you know what it’s okay to have private mortgages if you’re making your money on on the other end again this is like a big topic

To talk about like all by itself but in short it’s possible oh yes you just need to have a creative person like russia who who has different lenders i believe right like you know you’re a broker who have access to different lenders not just like one strict bank so this is where you need to be in touch with a professional this is what you know i’ve been doing for all

My career and i have seen like a lot of people who are successfully doing they have a good person like solid knowledgeable person who has access to different lenders and with that you know i i know we can talk a lot on and on just one final advice that would you give for you know first time home buyers or investors who are concerned in this market like you know

Lost what would you advise you know what i have to say that 50 50 of my clients i’ve got lots of first-time home buyers second time home buyers and then i’ve got investors because i’m an investor myself so i like to work with both you know i like to work with both because i’ve been a first-time homebuyer and i i know how hard and difficult it is so my advice is

You know what talk to professionals it is so important that you don’t just seek advice from one person and then because you got the wrong answer you you shut it down yeah okay i have so many people that call me and they say well i didn’t know i could do that i didn’t know i could do this i didn’t know i could do that probably because they didn’t get the the right

Advice yeah the right advice honestly that’s a great advice because personally like i bought my first property at that time i was on work permit and i just got my job like six months ago many many agents many banks said no and i keep talking to different people even though they said no okay i’ve talked to another one finally i found the mortgage person who has

Access to this b lender who said yes so love that advice guys and i you you know where people can find you of course they can find me yeah but yeah no we have our website it’s called shopmortgages.ca but if you want cool tips like this videos we just started tick tock and i can’t believe how crazy yeah we have one video that’s got over 200 000 views yeah because

You got a good advice you know that’s what i just like if you guys want some solid advice on the mortgages go follow on the tick tock on instagram of course i’ll put all the links in the description so check out those russia thank you so much it’s a pleasure for having me telling me this was lots of fun yeah yeah so hope you guys had enjoyed this video as well you

Know and you got some advice and knowledge from here if you did make sure to hit that thumbs up button and hit the subscribe button and the bell notification and see you in the next video foreign

Transcribed from video
Mortgage Expert Reveals Tips For First Time Home Buyers In Canada By Aditya Kumar Soma