Clinton Wilkins sits down with Heather Butts from CTV Morning Live to answer viewers’ questions and talking about merry debtmas.
Don’t feel like watching the video? Check out the mortgage application advice video transcript below. Talking about merry debtmas.
Talking About Merry Debtmas
Heather: [00:00:00] Thank you, Anna. Well, applying for a mortgage will be one of the most important financial decisions you’ll make in your life. So you need to make sure you’re well-versed and ready for the responsibilities associated with getting a loan. This morning, Clinton Wilkins is back on the couch to answer some of our questions. Welcome back.
Clinton: [00:00:20] Thanks so much for having me.
Heather: [00:00:21] Happy New Year.
Clinton: [00:00:22] New Year to you.
Heather: [00:00:22] So the big question is the beginning of the year the best time to refinance?
Is it a good time to refinance?
Clinton: [00:00:28] You know what, we talk about January being Merry Debtmas. You know, we all go through the holidays and sometimes there’s some overspending. But January is really all about New Year’s resolutions. So no matter if you want to try to get your finances in line with maybe a refinance, or buying your first home, January is a good time to think about that. The first of the year is a good time just to look at your whole financial picture. And, you know, homeownership and mortgage is the biggest transaction of your life and it’s the biggest debt of your life. And I think starting New Year fresh is so, so important.
Heather: [00:00:57] It’s a huge decision.
Clinton: [00:00:58] It’s a huge decision. Yeah, it totally is.
It’s a big decision
Heather: [00:01:00] Really the biggest decision people make in their lives.
Clinton: [00:01:01] 100 percent. I think it’s bigger than having a baby or getting married. I think, you know, homeownership is just so, so important. It’s part of the Canadian dream. And, you know, starting the new year, we have lots of resolutions maybe about our fitness or whatever. But I think homeownership is a great point as well.
Heather: [00:01:16] Ok. So let’s say you’re one of those people. You’re going into 2020 saying this is it, this is my year, I’m going to buy a house. What do I need to know? What is my first step? I guess even before I’m approved, what’s my first step?
It starts with a pre-approval
Clinton: [00:01:29] I think doing a pre-approval is so important. I think that you know, mortgage lending is really based on three cornerstones. It’s based on income, It’s based on assets, and it’s based on credit. And I think coming in and doing a pre-approval with an unbiased mortgage professional, like myself, is important because you don’t know what you don’t know. And there are so many nuances to mortgage lending. There are so many different lenders out there that maybe the bank branch that you do your normal transaction with isn’t the best fit. There are so many options out there. And, you know, I think seeking the advice is important.
Heather: [00:01:58] Ok. So if I’m going to see someone perhaps like yourself, what do I need to prepare? Like, what do I need to take? What documents do I need to take? You need to get some things organized right before you walk out the door.
Documents are important too…
Clinton: [00:02:09] So when someone comes to see someone like me, typically what we do is we send them a list upfront of what income doc documents we need. And everybody’s situation is a little bit different. You know, for example, you’re on a salary. I’m self-employed. There are different documents that would be required. We send that out to the client upfront.
So it gives them a little bit of time to, you know, dig around and find their T4 or their Notice of Assessments, because I think documentation sometimes is a challenging piece for people because, you know, you get your documents, you deal with them, and then you don’t look at them again. So sometimes going and searching for the documents is important. And, you know, sometimes that takes up people a little bit of time, because if you don’t have the documents, you know, maybe the lender won’t approve you. So I think, you know, getting those documents upfront and getting it during that pre-approval process, you know what you have.
Heather: [00:02:54] OK. So I’m going to ask you to take out your crystal ball.
Clinton: [00:02:57] OK
Heather: [00:02:57] Because I know you have one here.
Clinton: [00:02:58] I know that it’s magic. It’s the mortgage magic. Mortgage magic.
Heather: [00:03:03] So it’s 2020. Do you see any changes coming on just quickly?
Are rate changes in the forecast for 2020?
Clinton: [00:03:06] Well, this month, the Bank of Canada is meeting. So I think it’s a wait and see type situation. And the Bank of Canada could definitely impact what happens with variable rate mortgage products in terms of fixed rates. We’ve seen a little bit of a spike the last couple of months. They’ve gone up a little bit. We’re still almost at historic lows. I suspect their circle is still going to stay low and maybe they’ll go down. Who knows? But I think it’s a wait and see. And I think seeking the advice of someone like me, we can really keep an eye on it and provide that expert advice.
Heather: [00:03:34] Okay, perfect. Thank you so much for joining us this morning. OK. And you know what? I love some of those ideas because it means just be prepared to get out that paperwork.
Clinton: [00:03:43] And talk about it. You know, let’s break down those taboos.
Heather: [00:03:45] Okay. Well, we’re talking about with you right here on the couch. We’ll have you back soon.
Clinton: [00:03:48] Thanks for having me.
Heather: [00:03:49] Thank you so much.
Hopefully, you’ve enjoyed talking about Merry Debtmas. As always, if you have any questions you can get in touch with us here.