Your Banking Relationship: They leverage your mortgage to rake in credit cards profits.

Below is part of an article where the bank is sad their mortgages are down 500% from last year. At the same time they made 16% more from ramming credit cards and Lines of Credits down their mortgage customer’s throats so it’s all okay in the end. For them… and how about for you?

The blue part shows that mortgage is the key to create what customers feel is a “relationship” with the bank so they can then sell you all their high margin products.

Broker lenders only “sell” 1 thing, mortgages, so consider separating your banking and your mortgage and get the best mortgage possible – through a broker lender.


“Having your mortgage at your bank is only convenient for them to rake it in off of your credit card fees.”

Mark Herman, top Calgary mortgage broker


Here is the article:

Bloomberg News, Doug Alexander, August 23, 2018 …

Canadian Imperial Bank of Commerce’s prediction of a mortgage slowdown has come true…

Despite the mortgage slowdown, CIBC posted a 16% jump in Canadian personal and commercial banking earnings due to a “significant” expansion  … and growth in credit cards and unsecured loans amid rising interest rates, Chief Financial Officer Kevin Glass said.

“Those would be the major offsets in terms of mortgage growth declining,” Glass said in a phone interview. “Mortgages are a key product for us — it’s very important from a client relationship perspective — but it’s not a high margin product, so if mortgages come off it has a far smaller impact than rate increases do, for instance.”

A lesson from RBC’s mortgage rate increase

I love this article from the Globe as it explains why rates are going up a bit and what expectaions are for the near term.

Call for a rate hold if you are thinking of buying in the next 4 months!

“Borrowers who use a mortgage broker pay less …,” Bank of Canada.

See our reviews here:

Mark Herman, Top best Calgary mortgage broker

The lesson home buyers should take from RBC’s mortgage rate hike

TD collecting all your data on-line

TD does collateral registrations and also look at everything you do on line. Not only do they love your money, they also love your data!

Stop trusting the big banks and talk to a mortgage broker to protect your data and your money.

Mark Herman, Top Calgary Alberta Mortgage Broker.


TD Visa customers’ browsing activities open to ‘surveillance’ by bank

Bank denies collecting general information about what customers do online

By Rosa Marchitelli, Go Public, Posted: Nov 30, 2015 5:00 AM ETLast Updated: Nov 30, 2015 9:11 PM ET

A B.C. man decided to Go Public after discovering Canada’s second-biggest bank can access and collect information on all of its customers’ online activities, even those that aren’t banking-related.


Colin Laughlan is one of thousands of Canadians who had his Visa cards switched from CIBC to TD in 2014 after the Aeroplan rewards program changed banks.

“When I saw this — I really had to read it two or three times to make myself believe I was reading what I was reading,” he said.

He points to two lines in the 66-page Visa cardholder agreement that allows TD to collect details about anything — and everything — customers do online.

Under the privacy section of the cardholder agreement:

“COLLECTING AND USING YOUR INFORMATION — At the time you request to begin a relationship with us and during the course of our relationship, we may collect information including:

  • Details about your browsing activity on your browser or mobile device.
  • Your preferences and activities.

Laughlan, from Vancouver, has a background in privacy issues as a former journalist and communications specialist. He said his radar was up when his new TD Visa card and cardholder agreement arrived in the mail.

“I couldn’t see any reason they had to do that sort of surveillance on Canadians and they weren’t being particularly forthright about it. This was slipped into the fine print of the policy and I’m well aware that the vast majority of people don’t read these things,” he said.

Laughlan said it took almost a year before his complaint finally reached TD’s privacy office.

TD’s privacy office crossed out the lines that Colin Laughlan found problematic in his cardholder agreement and an official signed them. (CBC)

The bank eventually apologized ….

Calgary Home Prices are Holding Just Fine.

Wages and home prices are sticky – economically speaking. No one wants to work for  less than they did yesterday or sell their home for less either. So the prices hold.

Today, any busy real estate agent will tell you the home market for anything less than $450 – 500k is moving quickly if priced correctly. $500 – 750k is slower and above $750k is very slow. This all makes perfect economic sense.

Below is part of an article from the CBC summarising the numbers.

All this and more from Mark Herman, Calgary, Alberta top/ best mortgage broker for home purchases.

Diversifying economy helps home prices remain steady

Calgary’s housing market continues to hold its own despite weak energy prices, according to a Royal LePage House Price Survey released today.

The report cites a diversifying economy as the reason aggregate house prices rose 0.8 per cent from last year to $465,374.

Here’s the breakdown in median prices based on house types in Calgary:

  • Single-family two-storey home prices rose one per cent on a year-over-year basis to $522,052
  • Bungalows dropped slightly by 0.4 per cent to $451,937.
  • Condominiums experienced an increase of three per cent to $310,665.

The average two-storey house price in Calgary in the second quarter was $509,937, while bungalows cost $452,970 and condominiums $304,624. The average overall price was $457,894.

“Economic slowdowns in energy-dependent markets, most notably in Western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer of Royal LePage, in a news release.

“In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families,” Soper said.

Calgary house prices grow the highest in Canada

Calgary’s house prices are growing the fastest in Canada. As I have been saying for ages, this is due to the continued in-bound migration by workers from Canada and overseas and it has been sustained for more than a few years now. CMHC forcasts it to continue for a few more years as well. Mark Herman, top Calgary Alberta mortgage broker

Here is what the paper said today:

… The national average price for homes sold in August was $398,618, up 5.3 per cent from the same month last year while the average in Calgary rose by 5.2 per cent to $454,994.

In Alberta, the average price rose by 4.2 per cent to $397,701 as sales were 3.8 per cent higher to 6,354 transactions…

Second most sales homes in Calgary EVER for the month August!

The average cost of a home in YYC is now 545,000! When you include condos in the mix the average is 459,500!

To be able to buy many people are turning to condos as most are priced below 400k.

BUT conod purchases include: AGM’s, reserve fund studies, board meetings  minutes, financial statements, engineering reports, bylaws, post-tension cables, elevators, and all the rest.

Ensure you use a broker that is a condo expert and knows the in’s and out’s of how to get them financied. Surprise – we do lots of condos because we love 1st time buyers many of them buy condos!

Article from the Calgary Herald is below:

… The benchmark price, which CREB says is the cost of a typical home, was up 10.18 per cent to $459,800.

Total sales were the second highest ever for August behind only the 2,326 sales level set in August 2005.

Calgary sales this month were buoyed by strong activity in the condo market as single-famly home sales actually dropped from a year ago. The single-family market saw activity decline by 2.38 per cent to 1,477 sales but the median price rose by 6.47 per cent to $479,000 while the average price was up by 5.42 per cent to $545,238. The benchmark price rose by 10.24 per cent to $512,300…


Is it time for mortgage interest rates to start going up?

The Canadian housing market shows no signs of slowing down during the typically slowing summer months. Economists say they continue to be surprised by the strength in the housing market and continued appetite that Canadians have towards home ownership.

The U.S economy is growing much faster than expected and unemployment is down to 6.1% which is at its lowest level since the summer of 2008. Housing starts across the US have also exceeded the expectations of many economists.  This encouraging news is causing speculation that the US Federal Reserve will be forced to raise interest rates faster than anticipated to ensure inflation does not become a concern.

According to Bloomberg News, Charles Plosser of the Federal Reserve states, “The data keeps telling us we ought to be raising rates, if we wait too long we could find ourselves raising rates faster and higher than we want to.”  Historically, our interest rates usually follow the lead of the US.

With the hot real estate market this summer, it makes sense to get a pre-approved mortgage with a locked in interest rate while we are still at historical lows. Access to major banks, trust companies and credit unions combined with my expertise provides you the opportunity to get the right mortgage with the best possible rate and terms.

Contact me today.


Mark Herman,
MA Mortgages Are Marvellous
Mortgage Associate

(403) 681-4376
(403) 681-4376         


5 Plex and up, Yes we do them now!

Multi Residential Lender within a bank that will work with 5-PLEX and UP!! These are multi residential rates (APPROX 3.99% on 5 year).

This is nerdy news but it is a big deal for real estate investors who have a tough time getting funding for small 5 and 6 plex deals as they are so small lenders will not look at them commercially and anything more than 4 units can not be done as residential.

For more data call me;

Mark HermanAMP, B. Comm., CAM, MBA-Finance

WINNER: #1 Franchise for Funded $ Mortgage Volume at Mortgage Alliance Canada, 2013

Direct: 403-681-4376

CMHC not insuring luxury homes with sales price of more than $1M

This was announced about 4 months ago so it is no surprise – unless you have been sitting on a huge pile of cash and just now thought it is a good time to buy a home for $1,000,001 or more.

Another great example of rules that we have been working under for months that did not make the headlines …

CMHC no longer offering mortgage insurance for luxury homes

 Also cutting insurance to loans to finance condo projects
Canada Mortgage and Housing Corp. is making changing to mortgage insurance for luxury properties.

CALGARY – Canada Mortgage and Housing Corp. says it will no longer offer mortgage insurance for homes that cost $1 million or more, starting July 31, even if the buyer has made a deposit of 20 per cent or more.

It also announced on Friday that it will no longer insure loans that are used to finance construction of multi-unit condominium projects, effective immediately.

In Calgary, luxury home sales for the MLS market, for properties of more than $1 million, were 359 year-to-date until the end of May, representing three per cent of total sales activity. For the same period a year ago, there were 318 sales, still equating to three per cent of total sales.

Last year, a record was set with 727 MLS sales in the luxury bracket, representing 3.1 per cent of all residential sales in the city, according to the Calgary Real Estate Board.

“Consumers were already required to have 20 per cent down for million plus homes, and insurance was not required for these properties,” said Ann-Marie Lurie, chief economist with CREB.

CMHC and Flood Damaged Homes in YYC / Calgary

We get this question often as there is lots of fully bizarre data out there.

Here is what we are seeing. Remember, as the #1 mortgage brokerage/ franchise in ALL of Canada for 2013 at the countries largest SuperBroker – Mortgage Alliance we see lots of deal flow so this is based off of many hundreds of conversations with the insurers and lenders:

  • IF the flood damage has been repaired AND you are in the flood zone then an insurer (CMHC/ Genworth/ Canada Guarantee) WILL / can insurer your purchase with as little as 5% down as long as all the other normal criteria are met.
  • IF there is damage that is not repaired then the odds of an approval with an insurer are very, very LOW. Often, even if you put 20% or more down, and do the purchase without CMHC involved, the lenders are not taking the risk and doing them.

the KEY is to fix the damage first, then sell.

Call if you have any questions on this as there are many specific examples that are not mentioned above.

Mortgage Mark