IF you think lenders make too
much money, you're not alone.

Bur it’s very likely vou are an unwit
ting participant in all those protits.

Most people accept without question
the posted mortgage rates for char tender
as written in stone. Tt ist.

Realtors are often told by lenders that
ifwe bring our clients to
them, their clients can
receive up toa QL75%
interest rate reduction
on their mortgage.

That's right-—-mortgage
interest rates are nego-
tiable!

Well over $2 billion
is given away to the
banks each year because

lenders

Friday. October 2. 1998 — North Shore News — £1

a

as

(2

!
|
|
|

them. The borrowers onten tlt hunuhat
ed and Por course was disappointed asf
had fosta sale. Atter suttenng threugh

several similar situations E started to get
wise and did some research about

lenders.

What tl tound owt changed my view

of lenders completely.

As Ive stated betore, lending is a
business. And like any
business, lenders have poli-
cies, wuidelines and quotas
to nl. How much they will
fend. to whom and for
what purposes is based
upon internal policies that
can change from quarter to

quarter,

property

lines
me.

of consumer apathy?

That amount is the
difference between 200,000 mortgages
written ar 74 and 200,000 ar 7.3%, with
both being amortized for a full 25 years.
Two billion plus dollars thar is freely
given to lenders because most borrowers
never even trv to negotiate a lower
mortgage interest rate. This is the price
people are willing to pay for staying
uninformed.

Mortgage lending is a very competi-
tive business. Lendecs pay for huge
advertising campaigns to get vour mort-
gage business. Additionally, the rates,
terms and conditions contained within
the mortgage contract vary widely from
lender to lender

There is no such thing as a standard
mortage contract. Ob, lenders will rell
you that their mortgage is standard, but
standard to whom? ‘To them of course.
Certainly not to you and definitely not
to their competition.

When I was a novice realtor, I often
ran into the situation where a buyer, .
when applying to their bank with whom
they had done business for the past 10
vears, had been turned down on their
mortgage application. The buyers were
told—sorry, bur you don’t quality.

As a povice realtor, [, like the bor-
rowers, believed what their lender told

Happy Bank has decided
that for the upcoming vear they will set
million dollars for mortage:
based Tending. This amount is then
divided up among Happy Bank's regions

aside “x”

Here is how a senior bank
official once explained it to

based upon economic indicators.

Lerus say char B.C, gets 20% of that
amount. Then B.C. is divided into sub-
regions with cach sub-region getting a
set portion. Some sub-regions will ger a
lot of the pic and other regiens will ger
less. En face, there have been times when

some sub-regions will be allotted virtual-

ly no morteage funding.

Now, vou as a prospective borrower
walk into your Happy Bank branch
where vou have dealt for the past 8 vears
and vou want a mortgage. The property
vou want to buy is nor considered a
“hort” property and vour income just
barely qualifies you tor the mortgage

AMOUNT VOU WANT,

However, unknown to vou, your
Happy Bank branch has invested all of its
budgeted mortgage quota already.

Further, the branch manager
ing with several current mortgages that
are going rowards foreclosure and has
been told by his boss to cut back on any
future mortgages unless the client and

NEWS photes Brad

See Foxs page 69

Ledwidge

oe 2d Sal SS

AT A GLANCE ...

Peer eee meee we wernt eee e tees eaaHereeees

ADDRESS: 520 Hadden Drive

rrr ere Oem erennconeenee

LOT SIZE: 130W x 1630

Pema eee es merece ee roesecsererensernessesenes

INTERIGR SIZE: 5780 SQ. FT.

aoc c eevee seers senensaseesocereeserenasseen

NUMBER OF BEDROOMS: 4

Sere w reese rena eeseneesessceeenecsresaens

NUMBER OF FLOORS: 3

Deemer vereverseeeasenureneseaeraessorseces

ASKING PRICE: $1,438,000

OPEN HOUSE: Sunday 2 - 4pm

seneevesscscces nevescconcosserccoos

LISTING AGENT: ReMax Crest Realty,
985-1321

SPECIAL FEATURES: View, privacy, level

driveway, three-car garage.

MORE people are making wine in their homes. So Jacquelins G
reigning champs at the fourth annual Grape Crush on Sep:
early. Kathie Hill, right, also took part in the fundraiser at Park and Tilford Centre.

Photo submitted

Grape frenzy

ia, left, and Sara Kilborn,
“$s. are honing their skills

Creekside view home

Spectacular custom-design home in the
British Properties, second to none.
Outstanding quality, warmth and elegance is
apparent throughout. Four bedrooms plus
games room up, five

bathrooms, seven zone

hot water heat, granite,

sub-zero stainless steel

kitchen, river rock

fireplace, imported tile,

California Shutters and

level driveway with

three-car garage are just

a few great features. a
Jeff Donohkce
ReMax Crest

Realty