Episode 54: Matt and Taylor are joined by Brandon Love and Tom Moffat, both Mortgage Brokers at Northshore Mortgage Group from Burlington, Ontario. Brandon and Tom also co-host 2 podcasts, The Invested Entrepreneur, which helps consumers achieve financial freedom, and Commission Breath, which provides tactical information for Mortgage Brokers to scale their business.
Brandon & Tom are here to discuss: → What led them to entrepreneurship and the common threads they've seen with successful entrepreneurs. → How they're advising clients right now when it comes to mortgage terms and rate types. → And the most powerful strategy to start investing in real estate right now.
Tom and Brandon's Email: experts@northshoregroup.ca
Brandon Love's Instagram: @amortgagewithlove
Tom Moffat's Instagram: @tom.moffat_
Invested Entrepreneur Podcast: @InvestedEntrepreneur
Invested Entrepreneur YouTube: @Invested.Entrepreneur
Invested Entrepreneur Instagram: @invested.entrepreneur
Commission Breath Podcast: @CommissionBreath
Commission Breath YouTube: @CommissionBreath
Commission Breath Instagram: @commission.breath
Matt Glen's Website: www.mattglen.ca
Matt Glen's Email: Matt.glen@century21.ca
Matt Glen's Instagram: @mattglenrealestate
Taylor Atkinson's Website: www.VentureMortgages.com
Taylor Atkinson's Email: Taylor@VentureMortgages.com
Taylor Atkinson's Instagram: @VentureMortgages
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:02):
Estate Podcast with your host,award-winning realtor, Matt Glenn,
and top producing mortgage broker,Taylor Atkinson.
Professionals in the industry,enthusiastic entrepreneurs, and
successful investors.
When it comes to real estate,
we're all in.
comes to real estate, we're all
(00:27):
in.
Okay, Matt, Throne Speech came out
recently from BC government.
Some pretty exciting information.
One very valuable piece ofinformation, and I mean like
monetary value, which ispotentially saving one of my
clients over $12,000.
This is why you got to hire
Taylor, man.
He does ideas like this.
Just listen to this.
And just to be clear, you don't
actually have to hire me.
I'm free.
The banks pay for me.
No, dude, I think it sounds better
(00:49):
when I hire you.
That means I have my own possible.
Right.
Yeah.
I'm going to send you an invoice.
So yeah, the property transfer tax
exemption, which has been anabsolute thorn in my side when
you're talking first-timehomebuyers, because the limit was
$500,000.
like in Now, there's Kelowna, not
a lot of houses.
first-time homebuyers are getting
Like, into yeah, the market, butit just pushed a lot of people
(01:13):
over that threshold and then theyhad to pay property transfer tax.
And like it had a sliding scale to525, which was completely useless.
Yeah, it needed to be revamped.
So I'm glad it is.
So now they've increased that to835,000, And just to be Right.
Yeah.
I'm So now they've which allows a
lot more people, specifically inthe Okanagan region to get that
grant for that exemption.
So I have a client right now,
property under contract,everything's firm, we're broker
complete, instructions are readyto be sent to the lawyer, but
(01:35):
we're going to see if we can pushback closing by an extra couple of
weeks because it's closing inMarch.
And if we close April 1st oronwards, they're going to save
$12,700 in property transfer tax.
And that's not an expense that
just gets added to the mortgagelike CMHC fees.
It is directly out of your pockettime closing.
Pay it on closing.
Yeah.
If you are closing on a propertyin the next couple months, you
(01:56):
know, ideally it's in April, it'sgoing to be a pretty rare occasion
that you'd be able to push closingback a couple months because the
person you're buying from isprobably moving or needs those
funds.
But in this instance, it's
currently a rental property.
So we're able to push that back
and save a bunch of money.
Like it's only for first time
homebuyers buying in a certainway.
(02:17):
So not every sale has to be pushedback.
But yeah, you save them.
Now they have over $12,000 to
spend on renovations instead oftax.
So good for you.
So good for you.
Other things that are positive inthe market?
Inflation report, Matt?You were reading that.
Well, first, hold on.
Let's go talk about the
anti-flipping tax.
So house flipping in BC is, I'd
say, pretty much dead.
It was 20% to sell in one year
(02:37):
yeah or up to two years with asliding scale so but interestingly
there are some exceptions and thatis if you add a basement suite
assume it had to be a legalbasement suite or a carriage house
which i've always thought is idealif you go find like a two-story
house and you buy it and renovatethe whole thing you add a legal
suite into there you make them topnicer like i always thought that
(02:59):
was a play anyway to try and getthe most value add into a property
and then also kind of the safestexit strategy too because now you
have a rental property at the endif you can't sell it so i always
thought that was a play anyway andthen i got this i think people are
going to be taking advantage ofthe legal suite thing what do you
think i like it i don't know if itwould incentivize people to make
that large of an investment likeit definitely helps but i don't
know if it'd be the decidingfactor would it like it's still
(03:21):
going to cost a ton of money liketo do a flip at all well to add a
suite is that going to be the onepiece that changes if someone's
going to do it or not i don't knowi think it's a good legislation oh
yeah not everyone for sure i thinkflipping is effectively not a
thing unless you specialize inadding legal suites.
Yeah.
I just thought that was a good
point.
That's a good point.
Maybe now professionals are goingto add more suites, but I don't
love restricting flipping becauseit's a service that's needed.
(03:43):
There's a lot of rundown housesand people want a nicer place to
live in and they don't want totake the headache, buy it and then
renovate it and have nowhere tolive in the meantime.
So I don't love the governmentintervention on that one.
Honestly, I agree with you.
I always thought it was not a bad
thing.
Like obviously the lipstick ones
and the shitty things that youhear about people flipping a house
(04:05):
and it's just absolutely garbagejob and they up the price by 150
grand or whatever they do.
Like I always thought that was
obviously a little little suspectbut people that go in and do a
really nice renovation making thehouses nicer in the street like
they are increasing the value ofthe house but the house is just
worth more because it's a nicerhouse yeah so i agree with you i
kind of like when people did itright there's also the issue with
people just like buying a houseand not doing anything with it
(04:27):
like just buying it and selling itas is yeah yeah, yeah.
A few months later, like that's...
Like speculating on it, for sure.
Yeah.
I guess maybe it also limits that
strategy if like an investor isgoing to buy and try and kick out
the tenant based on a renovationand then sell.
But I don't know.
Yeah, I just, I don't love that
rule so much.
And I don't think there's any
massive companies like who isgoing around and buying hundreds
of single family houses to flipthem.
(04:48):
I don't think think it's thatprevalent i don't know what if
they are like do they need anagent yeah that helps oh yeah I
just thought on it, for so also wehave this inflation report 2.9
we're now under three percentwhich is ticking close to lower in
interest rates yeah right like i'mhearing more and more talk coming
down in the spring i don't know ifi'm totally on that train yet but
like it also hasn't left thestation so it could happen in the
(05:09):
spring but i think it's in thesummer i'm loving your analogies
today you're killing it yeah i istill think it's probably going to
be the summer the bond market'sactually picked up a little bit
from the data from the statesabout 10 days ago yeah but it is a
very good sign for our well not agood sign for our economy but it's
a good sign for our balancedmarket if you want to say that i
(05:29):
just i also noticed that sincethat inflation report came out gas
prices have actually went up whichwill affect the inflation thing so
yeah maybe a little too soon butit's good news it's heading in the
right direction yeah so that'skind of killing it yeah i i other
thing watching the news thismorning global news i saw on the
ticker going across the screen acolossally high number of
canadians plan to buy a homewithin a year saw that didn't
(05:50):
really see any context i was likeman i gotta check this out so i
googled it went to the old googlemachine went to global figured it
out here's what it says so withcanada's housing market starting
to turn a corner there is agrowing demand for home ownership
with a colossally high number ofpeople planning to buy a home
within the next year, according toa new poll.
Almost half, 49% of peoplesurveyed last month said that they
(06:11):
plan to purchase a home within thenext five years.
That percentage is up from a yearago when it was only 43% expressed
the same intent.
Over the next 12 months, about 1
in 10, 11%, or 4.4 millionCanadians plan to buy a home,
which is still a colossally highnumber given that the greatest
number of homes ever sold in asingle year in Canada was 700,000.
So 4.4 million people in Canadasay they want to buy a home this
(06:32):
year.
And the highest number we've ever
sold is 700,000.
So obviously not 4.4 million
people are going to buy a home,but what if a quarter of those
people do that's over a million,that's 1.1 million people.
Or what if 20% do, I don't knowwhat the math is on that, but it's
equaling the highest number ofhomes ever sold.
Yeah.
So this could be a good year for
(06:54):
turnover at least.
I don't know what the price Well,
is or what that but with theinterest means, rates coming this
could be a good year down, for atI don't turnover, know what least.
Well, the prices or what thatmeans, but with the interest rates
coming down, this could be a goodyear.
Yeah.
I mean, in terms of like our sales
revenue, for sure, I think it'sgoing to be a good year in terms
(07:17):
of like what the government'strying to do affordable housing.
I think this is going to counterthat some very interesting number
of sales, I guess.
Yeah.
More people buying buying demand,but if people moving doesn't
really well yeah it's tough to seethe transparency in that data
because we have had the largestgrowth of our trying to
immigration most of those peopleneed to find somewhere to live
whether they're going to buy orrent and then the renter that's
moving out of that tenantedproperty is then going to buy so i
I think that's adding a lot to it.
And I've seen some charts recently
that like the amount we'rebuilding is historically the
highest we have ever produced inCanada.
Like hundreds of thousands of ourprojects are currently in place,
(07:40):
building permits, like everyone'strying to do their best to build,
but we can't keep up with thedemand because we have this
massive influx of people that arebuying.
So it kind of, yeah, correspondswith your data there.
I honestly think there is amassive opportunity in Kelowna to
buy a condo this year.
I've been saying this, condo
prices are going to come down inthe next few months.
(08:01):
Like it's almost a certainty withthese certain short-term rental
things, but they're not going tostay down.
Right.
So they're going to come down.
Our interest rates are going tocome down.
There is an opportunity to go buya condo i would say mid-range
condo so i'm talking about onethat's like kind of six hundred
thousand to a million dollars ithink you're going to get the best
deals on those condos in the nextsix months until the fall i think
(08:22):
there's an opportunity if you area first-time home buyer you should
be looking at a decent condo thereare going to be sales and you get
your property transfer tax waivednow that the threshold is high
enough like there is a hugeopportunity and property transfer
tax waived now that the thresholdis high enough like there isn't a
huge opportunity and propertytransfer tax on new builds i think
it's up to 1.1 don't quote me forsure but it's definitely a million
but i think it's 1.1 where youdon't have to pay property
(08:44):
transfer tax on new builds ifyou're a first-time homebuyer
don't quote us on anythinghomebuyer don't quote a good year
to buy a condo in Kelowna.
I'm telling you.
You heard it here first.
Yeah.
Talking about like a national kindof figure, like some of the stats
we've been talking about.
The two guys we have on today are
near and dear to us.
Tom and Brandon, both mortgage
agents, brokers out in Ontario.
We discussed the difference.
Yeah.
Yeah.
But big entrepreneur guys, theyhave their own couple podcasts.
Like we struggle.
Yeah, they're doing good things
(09:04):
over there at InvestedEntrepreneur and the Commission
Breath podcast.
Yeah, so great guys to reach out
to.
Yeah, good things want to know
about, you know, tips and tricksjust to run a business or kind of
the Ontario market, definitelygive them a lesson to their pretty
knowledgeable dudes.
And if you think our social media
is banging, it's basically becausewe copy everything they do.
So they're doing the research.
We're reaping the rewards.
(09:24):
And if you don't like ours, thentell them to change theirs and
then we'll follow.
Yeah, exactly.
Yeah.
We'll get it.
We'll get it somewhere down theline.
But yeah, all the improvements arecoming from them.
Awesome.
Well, enjoy the show.
There are a couple of fun guysconnect with them for sure.
Definitely.
if you don't like to the show,
(09:44):
Brandon and Tom.
How are you guys doing?
great.
Thanks for having us.
Fantastic.
Is the vibe different on our show?
What do you notice right away?We're just getting started.
We're just opening up, so we'llsee where the direction takes us.
feel like we already had anhour-long podcast before we hit
record.
Well, we like to start our show
for you guys to kind of connectwith our listener a little bit.
What's your perfect productiveFriday look like?
(10:06):
Yeah, basically what gives youkind of energy throughout the
workday leading into the weekend?Go for buddy.
it, Yeah, so my perfect Friday, Iget my daughter dropped off at
school.
I come back.
I catch up on a couple emails.
I try not to have any active files
or client meetings on Fridays justbecause going into the weekend, if
things get delayed, it's a bit ofa shit show.
I send my weekly realtor email andthen I try to wrap things up.
(10:26):
So right now I'm usually wrappingup kind of around like that one
o'clock marker on Fridays.
I was saying to Tom last week, my
goal is to just completely removeFridays for us going forward.
I love that.
Is that like from any that you
just want like a longer weekend orwhat's the purpose of I was at my
chiropractor and he was like yeahat a certain point i just
eliminated on my friday and i'mlike what'd you do with all the
(10:48):
clients he's like i just jammedthem all in monday through
thursday and i just work likeinsanely hard during that stretch
i'm like how's it working out foryou like i love it i feel like so
great for those four days my brainis so focused on just work and it
works so well for me and i waslike i wonder if i could do that
with mortgages and i'm like alwaystelling people don't close on
Fridays.
Don't do this on Fridays.
(11:08):
I'm like, what if I just saidwe're closed on Fridays?
got a four hour work week vibessure.
Yeah.
I do love Timothy Ferris, but not
to the level of like havingeverything VCs and that level, but
you you know him pretty well.
I've never heard anyone call him
Timothy.
I was just going to say that.
There's like you're his father.
heard anyone call him Timothy.
I was just going to say that.
There's buddies.
I usually just call him Timmy.
buddies.
I usually just call him What aboutyou, Thomas?
(11:29):
I love it.
about you, Yeah, so pretty similar
actually because we had thisconversation last week and still
working on it, but I'm trying toget at least start with a half day
on Friday and be done at 12.
And I tried to get all of my files
kind of like wrapped up for theweek by that point.
But obviously, the nature of ourbusiness, things come up.
So as of right now, I'm stillattempting that.
But to back things up the start ofthe day, what I do is Monday to
(11:49):
Friday, I wake up at 445 in themorning.
From there, I'll either work out.
Monday, Wednesday, Friday is my
workout times.
If I'm not working out, I'll pound
a coffee and just go work.
And then I'll just work until
probably 7.30 when my son wakesup.
Press the rest of the day.
And on Friday, if I'm done at 12
that day, go do something with thefamily.
And then from there, I'll alwaysfinish the day with at least one
drink.
It's either going to be a Negroni
(12:12):
or an Old Fashioned.
I like Most people are Nice.
I'm it.
always going to do with like, at
least one to be a Nice.
Fashioned.
I like it.
It's like most people are I'm
always going to do somethinghealthy.
like, You're like, I'm alwaysgoing to have a Yeah.
I'm healthy all week.
That's my little treat to myself
on a Saturday.
Friday, Saturday.
Friday, How'd you pick 445?No, never.
(12:32):
So it started probably, I want tosay 10 years ago.
I transitioned to wanting to wakeup earlier.
And it was strictly for the factthat I wanted to just install
habits in my life, like whether itwas exercise, eating healthier,
and just having a set routine.
And then I started lowering that
time, I want to say I probablystarted at like maybe 630 or
something.
And then this year, specifically,
I went from 530 down to 445, likeprogressively.
(12:53):
And the reason for that is I justwant to crush out more work before
the day kind of gets ahead of you.
And I found that once like nine
o'clock hits, client emails comein, you got to deal with active
files.
And I just found that I was way
more productive getting myselfdone earlier.
And another thing that was ofinfluence that was i do have a
young boy he's one years old so hewakes up even earlier now at 6 30
so i'm trying to get everythingdone before he wakes up so at
(13:14):
least i feel a little bitproductive before uh the day gets
ahead me good for you yeah yeahi'm lucky my son can get till 6 30
is he up earlier i'm usually upearlier too i'm not up at 4 45 but
i'm up earlier than that i knowhis son's up at five and mac gets
up at six so yeah let's walkaround for an hour i know his
(13:34):
son's up at around for an hourlittle bit about your guys's
business you guys are bothmortgage agents from ontario yeah
you're speaking to a to a brokerhere what is the difference in in
ontario i i can't follow you guysso mortgage agent level one can do
mortgages mortgage agent level twocan do mortgages private and
alternative as well and thenbroker can manage a team wow
really okay well sorry for you canyou manage a team taylor can you
(13:58):
manage a team, Taylor?Can you can Not well, not well.
In we're BC, just called brokersor like a sub broker.
Yeah, nice.
Yeah, not well.
Yeah, nice.
Yeah, there's no agent.
I'm jealous of that, man.
Like we had to do a full week
course test after.
Hold though.
on, It's not to get your Holdthough.
on, It's not to get your licensein Ontario, though you can do it
in like a week, right?Yeah, it's like minimum three
(14:18):
months.
Yeah, it's like Both very short.
very short.
Yeah, no kidding like to help
people with the biggest investmentor purchase in their life and
you're saying like you can get thecourse done in three months on
your side even quicker for usbecause it's all online for the
agent license i always found thatpretty nuts and that's why you
have so much turnover in theindustry is because of these
people that think it's like a getrich quick scheme and they enter
(14:41):
and then they leave after a yearbecause they totally yeah there's
a test pretty material then foryou guys the agent test was really
easy the broker test was hardbecause like it's all based on
what the government would do andthen you're like you've been
brokering mortgages for a fewyears here this is what i would
(15:02):
actually do in this scenario yeahso it was just kind of like not
the same i think that test and bcis pretty hard hey that test oh
passed it yeah yeah exactly it'slike a lot of courses like that
like the theory is not thatapplicable to the real life that's
like an agent also read the bookyou jump through the hoops you
memorize and then you pretty muchput 90% of it, you know, back on
the bookshelf and you start tolearn the real world.
(15:22):
But in terms of like beingsuccessful in the industry, you
guys have done great.
You also, I mean, we've been on
your podcast.
That's why we wanted to bring you
on ours as well.
So Invested Entrepreneur is a
podcast.
You guys interview people weekly,
obviously entrepreneurs, mostlywithin Canada, a lot kind of in
the real estate business.
What do you find separates like
successful and unsuccessfulentrepreneurs?
Like what can people do?What are the key takeaways that
(15:44):
you guys it yeah yeah exactly it'slike a that's like an agent also
read book you Obviously everyonehas a different industry and a
different angle for a lot ofthings, but the common threads
that we see a lot is that thepeople who are successful know
what to focus on and they pour alltheir energy and efforts into
those things and they basicallyignore everything else or do it as
their like fun thing to do it'slike i'm gonna do all my
(16:04):
prospecting calls and then it'snice to have this extra layer on
my business that's like a podcastor something like that but they
don't ever give up the prospectingfor the fun thing i would probably
say the same if i had to boil itdown to two things.
It's not like revolutionary whatI'm about to say, but it's
consistency and sticking to basicsand just sounds super cheesy, but
never really giving up on whatyou're trying to pursue.
(16:26):
Because I find that the breakingpoint for most entrepreneurs,
they're almost like, if you lookat a graph, they're probably like
humming along like this.
And then all of a sudden, they
would hit that breaking point andtheir business would shoot off.
But a lot of people give up rightbefore that happens.
I feel like that happens with alot of entrepreneurs.
And it's the ones that just kindof believe in themselves and
(16:48):
sticking long term to it, and notchasing that shiny object and
trying multiple different thingsin their business.
I think that's the commonalitieswe've seen since starting our
podcast.
What made you guys switch to being
entrepreneurs or have you alwaysbeen entrepreneurs?
Like, was it the autonomy, thefreedom, the money, the stress?
Yeah, I've always beenentrepreneurial and I think it was
just like, I would try to go dosomething like consulting or
working for a different companyand like try to fit in that box
and be like, I would do it thisway.
(17:10):
You're an idiot, whatever.
And just like, eventually I'm
like, Hey, fuck, I cannot work forsomeone else.
I need to just work for myself.
So that became pretty clear about
mid twenties that I knew that thatwas never going to be a course I
could take.
So I just had to figure out
something in the entrepreneurialspace.
Just a terrible full-timeemployee.
So you were forced to Yeah yeah weYeah yeah we grew up together and
it's funny because like he alwayshad something going on and from
(17:33):
what i remember back in highschool is he was like always the
wallet man bacchus and barley wasthis company he had started up
making wallets and other thosekeychain holders or whatever you
call them right you call themright it's like my buddy's dad won
like a leather company that madethe back patches on jeans so we're
like he makes all these otheraccessories so we had like a great
manufacturer and we would justlike make wallets catch all trays
(17:54):
key rings it was a great businessbut we were way too young to
handle like the responsibilitycool yeah he cool still got it
yeah lifetime guarantee i stillhave guarantee i still have
Passport cases.
Like everyone still uses it.
Like they were fantastic.
But like we were in Golf Digest.
We got like tons of like greatfeedback.
What?But then we couldn't we couldn't
handle it.
like, We would get thousands of
(18:15):
dollars in and then we would belet's order so much inventory.
like, We couldn't sell Like it.
we just had no discipline.
We were just really bad at this.
So you did So you did what Tom
said.
You kind of gave up before it
really took off you just needed acouple things a couple things
literally there was a period wherewe would meet and we would like
talk for half an hour and then wewould i don't know who's listening
(18:35):
to this but sorry mom we wouldsmoke a joint and have a couple
beers and then we'd be like thatwas a good day it was amazing
sounds like in the early 20s yeahi know it was just like if you
gave me the opportunity i wouldtotally do different yeah that
would it is i mean you like in youalways been an entrepreneur you
always been an entrepreneur yesand no it's always been in
(18:56):
something i realized i'd say threeyears ago it's always been in the
back of my mind and the way ithink about things but i never
really of my up until yeah threeyears ago where i was always
working as an employee.
It took me seven year journey to
get hired on as a professionalfirefighter.
So all I did in my life was justfocus on trying to get hired as a
firefighter.
And for those that are listening
(19:17):
that are they understand how hardit is just to get into that
career.
So it took me the seven years.
And then once I got on, love thejob.
And you know, at that point, Ijust wanted something to keep
working towards after getting onbecause that was my life, seven
years of trying to get on.
(19:37):
So at that point, I started doing
mortgages and realized quicklythat like, entrepreneurial
endeavors and just the whole spacein general was like something that
really clicked for me.
And then that's kind of what
started off our podcast too, wasboth of us have always been
interested in the FIRE FinancialIndependence Retire community, So
we wanted to And then that's kindof Early.
what started off our podcast isboth of us have always been
interested too, in the firecommunity, financial independence,
retire early.
So we wanted to start a podcast,
not only about that, but morespecifically focusing on the FI
part.
So financial independence.
And both of us are of thatmindset.
(19:58):
And that's kind of what brought usto starting the podcast.
That's funny.
A firefighter to the fire.
Yeah.
Or the firefighter to the That's
fire.
Firefighter to the And is just
fire.
Firefighter.
Yeah.
That's perfect.
With that, like what role do youthink entrepreneurs play in the
Canadian economy or just in Canadain general?
Like personally, I feelentrepreneurs are like very
crucial to Canadian growth andevolution on a lot of things,
technology, you know, the waybusinesses are run, et cetera.
But I don't feel it's really thatsupported by the Canadian
(20:20):
government.
Like I feel they would rather have
everyone is like a fire.
Firefighter.
Yeah.
paying a T4 kind of tax.
Yeah.
What's your guys' stance on agree
with you more.
I think entrepreneurs are such an
important part of like the overallmosaic of Canada and like
creativity, business owners, whatthey contribute and like how they
have society evolve.
It always starts with
entrepreneurship, I think.
And I think largely they're
shunned by the top level ofsociety.
(20:41):
Like if you look at mortgagelending, for example, it's harder
as an entrepreneur, anything to dowith your taxes, it's extremely
difficult from the government asan entrepreneur.
Anything to do with your taxes,it's extremely difficult from the
government as an entrepreneur.
Anything like this makes it very
difficult to be a small businessowner.
Once you scale and you start togrow, they're great to support you
once you're big business.
(21:01):
But when you're a small business,
it's quite a difficult journey.
And I think that's really wrong in
our society.
But it also, it creates kind of a
separate microcosm whereentrepreneurs are also supporting
each I don't know other.
about you but it guys, it creates
also, kind of a separate microcosmwhere entrepreneurs are also
supporting each other.
Like, I don't know about you guys,
but I'm like more likely to stopat the mom and pop shop or like go
somewhere else because I recognizethat's someone else who's paying
for their kids hockey or trying totake their trip a year kind of
(21:24):
thing.
So there's two sides to
everything, right?Yeah.
Yeah.
What you, Tom?
Do you got any input on that?Yeah.
I mean, I would agree with allthat.
And it's just, I always look backand think like, why wasn't
entrepreneurship like everpresented to me at an early age?
Like, why is it never talkedabout?
And it goes back to like, ofcourse, like the school systems,
(21:45):
it's always geared towardsteaching people, like you got to
go to college, university, pickthe job that's right for you.
And thinking back to like when Iwas in high school, I had no idea
what I wanted to do.
And I just wish someone told me
like, Hey, this is an option herethat you can do.
You don't have to go to college.
You can figure things out before
(22:07):
you do that.
Like not saying don't go to
college or university, but Hey,here's this other option.
And it actually might be a betterfit for you and your personality.
It is It is funny.
A school like it does teach you
how to be a really good employee.
Like I feel like entrepreneurship
is something that people don'teven, they know that you can be an
entrepreneur, but they don'treally understand how limitless
(22:28):
the possibilities are.
And like, you can do anything you
want to do, you know?Yeah, exactly.
I always thought ofentrepreneurship as like just the
typical business owner that ownslike, yeah, mom and pop shop.
Like there's so many levels to itin different types of businesses.
And I never knew any of that.
Yeah.
Honestly, probably up until likefour years ago you know what i
mean what's the definition of anentrepreneur is it just
self-employed taking fridays offstarting a business like i guess
so many people start with your dayoff anywhere from there that's
what you do like so many peoplecan just be there but yeah it is
(22:50):
kind of a loose term yeah startwith your day off anywhere from
there that's what you do like somany people can just be there but
used to be the running joke thatlike we used to call ourselves
when we had that leather businessand stuff like that we were kind
of like we're entrepreneursbecause we like want to be
entrepreneurs but we have thisbusiness where like we're not
doing much work i think for medefines an entrepreneur now as
(23:11):
someone who's actually working oncreating a business for themselves
and that's what they're pouringtheir energy and their life's
focus towards yeah and i thinklike said said, too, there's
different layers to it.
Like just because you're an
entrepreneur doesn't mean that youhave more freedom.
If anything, a lot ofentrepreneurs work more hours than
the typical employee, but that'swhere the different layers come
into play.
Like if you're starting out your
business, you're probably going tobe grinding for a while until you
can hire out some people and takesome tasks off your plate.
(23:33):
And to me, that's where the realmagic happens is when you buy back
your time by having this systemand people underneath you that can
help support your Okay.
Well, since this is a real estate
based show as well, leading into2024, what are you guys kind of
seeing in your market out East interms of transactions or our
prices going down, up?And part two of that, kind of
where do you see the market goingin terms of interest rates?
And just, yeah, what are thetransactions looking like?
(23:53):
It's so weird hearing outies.
Yeah, I know.
Like from like down in Ontario, wenever hear that.
Yeah, so if I can speak to ourbusiness specifically, January was
super, super slow.
And February has come out kind of
like out of the gates flying interms of people reaching out,
whether it's people that arelooking to get an update on their
pre-approval or people that havebeen sitting on the sidelines for
(24:14):
a bit.
We're seeing a lot more of that
right now.
So it definitely is heating up a
little bit.
Not saying it's craziness, but
we're definitely seeing that now.
And just speaking to like other
realtors that we're partnered upwith, I'm seeing more activity in
the major hubs.
So like GTA area and the bigger
cities, but it hasn't reallytrickled out too much to the
secondary markets.
So that's what I'm seeing.
And in terms of rate cuts, I stillsee between 0.75 to 1%.'s a bold
prediction but i'll put it outthere i'm seeing that in terms of
a rate cut for 2024 but i think wewon't see the first cut until
(24:35):
mid-year now with the recent newsin the u.s coming out so a lot of
people were predicting earlyspring is when we're going to see
that first cut but i think we'llprobably see it Like from like
yeah i had faith that it was goingcome in march but now i'm thinking
june too yeah i was always goingwith april but i had that written
down anytime someone asked me i'mlike it's going to be in april
(24:56):
that's my prediction now i'm likemaybe a little bit after but it's
going to happen at some point idon't know it's going back it is
know it's going back it isinteresting how this conversation
shifted like obviously going upit's just off the table now
completely and it's coming down.
It's just a matter of time.
Like, what month, really?We're just waiting for these
announcements to see what happens.
So it's a shift that's subtle, but
it's significant.
(25:16):
Are you finding, like, your guys'
clients out there are comfortablenow with where rates are?
Like, I feel more stressfulconversations were happening
seven, eight months ago when thevolatility was still there and
fixed rates were pretty high.
But now that fixed rates have kind
of come down substantially sincethen, or maybe there's just a
complacency where people are like,yeah, I'm used to a 5.5% rate now.
(25:38):
Yeah, I can see that too, man.
I think it's just people are more
comfortable with where rates areat now.
And a lot of them are pleasantlysurprised when we show them fixed
rates too, because nobody knowsthat fixed rates fluctuate more
rapidly and volatile versus theBank of Canada overnight rates.
So just explaining that to peopleand understanding that, hey, fixed
(25:59):
rates have actually dropped overthe last one to two months and
showing them, hey, we have ratesin the low fives and some like
insured, we're in the high fours.
So people are more comfortable
with it.
Okay.
Here's it.
Okay.
Here's a tough question that youguys probably answer it weekly.
Client comes to you, insuredmortgage, so owner occupied less
than a million dollars.
So very competitive rates.
What are you putting them in ifqualification isn't an issue?
(26:20):
Meaning they could go variable,they could go three year fixed,
four five year.
Yeah.
So is it first time home buyer?Yeah.
on the profile first timehomebuyer i've been recommending
fixed more frequently just becausethey get the stability of making
the monthly payment they build outtheir first kind of budget that
way term wise i don't everrecommend past three year unless
someone's really like i want afive and then i'm like just please
(26:41):
take a four but like three yearsis kind of the sweet spot if we're
doing variable right now is ithave to have that conversation
with them that they're going tohave short-term pain and hopefully
long-term gain and some of themcan wrap their head around it if
they're not getting their headaround it i'm like okay let's just
go short-term yeah variable is atough one right now because it's
so much higher than fixed likeit's gonna have to drop two and a
half percent over like a threeyear term compared to a three year
(27:02):
fix to kind of break even on that.
Whereas like, yeah, I don't want
to put anyone in a five year, butlike qualification wise, sometimes
you just depending on the lender,you kind of force your kind of
force your hand.
It's nice.
The three year?Yeah, the three year is nice.
It's just like, yeah.
Why wouldn't you do a five year?
What's the reasoning behind that?Peak market right now for where
(27:25):
rates are.
So yes, you're getting a bit of a
discount, but they're locked infor that long period.
No flexibility there.
Also, statistics show that
majority of Canadians break theirmortgage around the three-year
marker.
So you're either setting them up
to be forced to port that productor incur a penalty to break their
mortgage.
So I like the three-year because
you hit that statistical marker,they get the stability of the
fixed product, and then they alsoget that sweet spot in terms of
(27:49):
the rate cycle.
Why Yeah, the penalty needs to be
a conversation when you're puttingsomebody in a five-year fix right
now.
Because if rates drop even a
percent, percent and a half,depending on the lender, interest
rate deferential calculation onthat is going to be massive if
one, they either sell or they wantto break it and go to a different
product or do a refi or likethere's so many scenarios that,
you know, there's a huge liabilitythere.
(28:11):
So I do love like asking thatquestion and hearing brokers say,
yeah, like I do three year a lotright now, because generally
brokers get paid less on a shorterterm where if a client just goes
to a bank, I've never heard of abank posing, hey, why not a three
year?That's a great product for you
because the banks are going tomake less money on that, you know?
(28:32):
So yeah, good for you give a bitof a spin to that.
I'm actually okay with a five yearfix if it's insured.
I don't push it because I wouldagree with Brandon, I would rather
them go into a shorter term.
But for first-time homebuyers that
want that stability, they want thelowest rate, the lowest payment,
like a five-year fix, say call it5.09% right now for the average
monoline lender, pretty good.
(28:53):
And I wouldn't be too shocked if
we don't go too much lower thanthat in the next couple, two,
three years.
So I don't think it's horrible,
but I would lead towards theshort-term fix.
And then if it were me and mypersonal mortgage and I was going
insured, I would definitely gowith the five-year variable.
If we have that discount of 0.9%off of prime, I would definitely
go with that.
But I'm more risk tolerant versus
like if it was the first time homebuyer, I wouldn't really that.
(29:14):
Yeah.
The three years are tough one with
that because you're hedging thatin three years rates are going to
be substantially cheaper than theyare right now in a five year.
So it's like I find right now themargins, especially predicting
them are much slimmer than theywere over the past couple of
years.
Like previous, it was so much
easier to be like, oh, the threeyears a great option or like a
year and a half ago, a three yearwas a really good product because
(29:37):
in three years like we'repredicting that but now it's like
well three years out are theygoing to be much lower so yeah
yeah you guys found people justreluctant to go into a variable at
all because of what happened overthe last few you guys found oh
yeah yeah there's a lot of peoplethat either are scared of
themselves themselves or theirparents are telling them, don't go
variable.
Like, look what happened to me
(29:58):
when I renewed variable.
I'm paying this amount more.
So there's a lot of people likethat.
I always just tell those people,I'm like, you know what?
Like, if that's your mindset goinginto this, there is a price on a
good night's sleep.
Just take the fixed option and
don't think about your mortgageuntil you come up for renewal.
Yeah, it does seem somethingsatisfying about just knowing what
your payments are for the nextthree four or five years like as
(30:20):
long as you can make them seemskind of easy to do that especially
also it Yeah, it does also itdepends on the lender you're with
but you have options too like ifyou want a lower rate and you're
locked into a five year fix if youwant to latch on to a lower rate
you can do that without breakingyour mortgage too like there's
lenders like sc Scotia where youcan go and you can do what's
called a blend and extend.
(30:41):
Say you're two years in and rates
have dropped and you have afive-year fixed, you can go back
to them and request a lower rate.
They'll blend your current rate
with whatever the rate is at thatpoint.
There's pros and cons to it.
You're going to extend back to a
five-year term.
But if you really want that lower
rate, it's an option for people togo with.
(31:01):
Is there options for people thathave variables right now that are
higher to into a fixed what thatlook like for somebody so we did
actually quite a bit of thataround the springtime last year
there was like a rate drop and itwas pretty attractive there was
kind of stuff in the mid fours atone point and we were just
breaking the variable so paying athree-month interest rate penalty
and then putting them in ashort-term product.
And for those people, it workedout because now they're in like a
(31:22):
three year fixed, saved all thatmoney because the variable hasn't
come down yet.
And they've recovered that penalty
plus now on the positive side ofthings.
You also do that with certainlenders.
If you're not switching lenders,you can take what their fixed
product is.
That's also a strategy right now
that people might have if I thinkis, bond OK, take what their fixed
product That's also is.
a strategy right now that people
(31:43):
might have is, okay, if I thinkbond market and the fixed product
is still going to go down over thenext year, but I don't want a one
year fixed and then hope that it'sgoing to be there in a year, take
a variable.
And then whenever you see rates
drop what you want, then you cankind of lock into that.
There's a million ways to sliceit.
Yeah.
Most of them aren't letting you
lock in and lower your termthough.
(32:03):
So if you take the variable andyou go for one year, you have to
then lock into the four yearoption.
They won't let you go and thenlock into the one year.
So there's a little bit of likegaming and nuance to it.
That's why you call a brokerthough.
Yeah.
A agent.
Either one works.
Nothing changed on our day to
Okay.
day.
Nothing changed on our day toOkay.
day.
Another question for you guys then
then what do you find?Like is the most powerful tool
(32:25):
right now?If you're either just trying to
get into the market or buy arental property, like what can
people do to position themselvesbest, whether it's a mortgage
product or.
We on three, Brandon.
I already know what you're goingto say.
Yeah.
Okay.
We should say it on three, but Itest it.
Okay.
You got to say stayed on three
brandon so i already know whatyou're gonna say yeah okay we
should say it on three but i testit okay you gotta say it on three
then i test it you Yeah.
(32:45):
Okay.
We should say it on three but itest it okay you gotta say it on
three then i test it you gottasend it oh you go on goal so three
two one it oh we gotta redo thatepisode of the office too.
Yeah, redo that episode of I playrock and my House hacking is the
Can you explain best.
that to our listener?
Yeah, for sure.
So take a house you're looking at
getting, either there's a basementunit or a granny suite or
something like that.
(33:05):
You are using that rental income
to qualify for the mortgage.
And then that rental income also
offsets your monthly payment.
So it becomes a lot more palatable
for your budget.
And it also starts to build equity
that way.
So you get in your first house,
you can house hack with as littleas 5%.
And the beauty of this is whenyou're ready for the next
property, you can buy that nextproperty with as little as 5% once
(33:26):
again.
Keep the house that you're
currently hacking, rent out theother unit.
And now you have two units rentedout contributing to your income.
So it increases your qualificationonce again, as well as offsets the
mortgage and gives you somecashflow.
It's the dream.
It's a It's the dream.
It's a real estate leverage dreamto start with.
If I can go back, I would do ithands down.
If I knew about that strategy andI didn't have a family, I would
100% do it.
Too late for me now, but that's
what I would do to scale.
(33:46):
I lost us.
what I would do to scale.
I lost us.
Yeah.
Yeah.
And you can't go backwards too,right?
You can't go backwards in the eyesof the lender's juice.
It's like, why are you giving upyour single family home to now go
live in a duplex or a triplex?Like, it doesn't make sense.
I'm looking at your incomestatements.
Times aren't that So yeah.
Yeah.
It's kind of funny the things thatyou don't right?
know, Let's go back toentrepreneurship too.
(34:07):
Like you just don't know what youdon't right?
know, So how do you fix that?like, You got to go talk to
people.
You have to read listen books, to
podcasts.
I Like, wish I would have known
this too when I bought my firsthouse because I probably would
have made sure it was one with asuite or I think it's getting
better though, like in terms ofresources, because when I was in
high school, I mean, I can'tremember when YouTube came out,
(34:28):
but it definitely wasn't asprevalent as it is now.
Like just having YouTube orpodcasting like this wasn't around
and there wasn't as manyresources.
Whereas I think like the youngergeneration, they're on these
platforms.
So the information is going to
come at them more often than notversus like when we were younger,
we didn't really have this.
No shit.
So I when it No shit.
So I had a cousin gives me a call
and he's like 20 years old andhe's asking me questions about
investing in real estate.
I was like, I just learned about
(34:48):
this like four years ago.
And here you are like 20.
Just even the fact that you'reasking me this questions, just a
given that you're going to be asuccessful kid.
Right.
Nail right on the head there.
Like there's just a lot moreresources out right now.
And people like us are 20.
the word all the time.
Yeah.
And like, we always say this, like
people turn to YouTube now insteadof like watching TV, the younger
(35:11):
kids.
So like my step always watch stuff
on YouTube.
And I like the other day I was
like looking for something onNetflix.
I'm like, fuck this.
I'm just going to watch a few
YouTube videos.
And I ended up watching like way
more focused stuff on like realestate entrepreneurship, like down
this whole rabbit hole.
But I'm like, that's what what
they're getting they're gettinglike the five to ten minute pure
(35:32):
information versus like sellingsir hant or whatever kind of
selling sunset content are youtelling me listener is not going
to understand my office referencea few minutes ago yeah yeah our
listeners might yeah yeah i wasjust gonna go back a second there
too like kind of doing hosthacking for a client yeah our also
have to work with someone thatyou're comfortable with and you
are aligned with and you thinkyeah is the right fit for you
(35:54):
because they went to their localbank it's a basement suite it's a
house obviously it's a house witha basement suite, but the rental
income, and I know how theirspecific bank calculates it for
the subject owner occupied houseis not enough to qualify them for
purchase price needed.
But we have access to, you know,
two lenders and specifically theyuse a hundred percent of the
rental income from that less theproperty taxes and the the heat.
I was like, this is easy.
We can make this work all day.
So it's not that that person hasto go and shop around and figure
(36:16):
out which lender has whatguideline.
You just find someone that you'reconfident with and you work with
them and they'll do the hard workfor you.
Yeah, that's a great point.
One third of the benefits of house
hacking is the mortgagequalification.
So you want to use that to thebest of your abilities.
And I think you're talking aboutMCAP and Strive.
I'm going to drop some namesbecause it's for the good for you.
So going to drop somequalification, you're going to get
(36:38):
more when you house hack versus onyour own and you're just buying a
straight up residence.
You're going to have your mortgage
pay down from someone else doingit.
And your cash flow is going to bebetter because someone's helping
you with the mortgage payment.
And you're going to get into the
market quicker because if you'redebating on moving out of the
province even we're seeing a lotof people go out west to calgary
west for us instead of doing thatmaybe you can look in your own
area and try to see if you canmake it work and that's your first
(37:01):
step is reach out to someone liketaylor and he's got the options on
his side for the best rentaloffsets and that goes that goes
back to also like how long yourterm is and variable reverses a
fix and all those kinds of things.
Yeah.
Yeah.
The other piece I love to do with
the house hacking comparison islike once you do that budget and
you see how much your carryingcost is to then compare that to
what it would cost you to rentthat exact same unit as you're
buying.
And that's the mind blowing one.
Like I helped a woman out insarnia area do this and her
(37:23):
monthly carrying cost is like 750and the rent for that home would
be like 2200 minimum so she waslike over the moon and building
equity paying down the mortgagelove and you send her an invoice
every month for like 1500 buckshad a call me after a full year
and they were like i feel reallybad i paid my lawyer i paid my
realtor the commission on the saleof my last home i never got your
bill and like the husband and ihave just been feeling terrible
(37:44):
they thought you just forgot theythought you just forgot about it
yeah like i just need to like, I'mclean.
Like, let me know and I'll pay it.
Like, I don't know if you forgot.
I'm like, I don't charge youanything.
I'm paid directly by the lender.
And she's like, what?
I'm like, thanks for coming clean.
(38:06):
is hilarious.
That actually just happened to meas well.
A client was like, Hey, I'm doingmy taxes.
And it was a rental property.
Need to know how much you charged
me.
I was like, I didn't charge you
you anything.
It happens so often, man.
And that's so often, man.
And that's why I like to go to a
mortgage broker.
Like, well, I don't cost too much
(38:26):
money.
I'm like, no, it does not.
does not.
I opened my calls with that.
Now I'll say like, Hey, by theway, like before we proceed, I'm
not charging you anything just toheads up.
Cause like you would get to theend of your phone call and the
whole time they're probablythinking like like what is this
guy charging me by the end of thisso i try to get it up front now
(38:49):
because general population stilldoesn't really know what mortgage
brokers do and it's not to theirfault it's just not really public
knowledge probably thinking likelike what is this so i knowledge
there is private lenders you haveto yeah so certain alternative
lenders and private lenders youhave to charge a fee because they
don't charge anything but there'sobviously reasons why we need to
use those.
So yeah, people are interested in
that.
We do have a podcast.
I forget which episode it was, butwe did have a private lender on
(39:10):
talking about that.
Yeah, that's just how they
structure it.
But for any kind of a conventional
monoline lenders, yeah, they justpay to yeah so going to lead into
our kind of wrap up questionshere.
If you could buy any property inthe Okanagan in the next 12
months, what would it I'm going togo like on Okanagan Lake so I can
swim with Ogopogo.
I was going to say Okanagan Lake
too, but that's definitely awittier.
You have to make sure he's freeday.
Yeah.
I was actually scared of that when
(39:31):
I was a child swimming in thatlake.
So there is, I think, Sturgeon inOk hey taylor i haven't seen any i
haven't seen any either prettydeep i think they go pretty deep
but yeah i think you're safeyou'll have all your toes when you
get out of the water my limbs arebigger now so i think is, I any
the best thing you guys have spentmoney on airpods airpods you have
them right now 200 bucks no you'renot no no but my wife it.
I wear them all over the house allthe time.
(39:53):
Like I have YouTube premium, so Idon't go through the ads and I'll
just put it on like one and a halfor two times speed.
And man, like the $200 investmentfrom the AirPods, I've learned so
much.
I've been wearing AirPods for a
while, but like the AirPods prolove them.
Got to get those.
But yeah, just biggest investment
for me.
I me i gotta say i now 200 I me i
(40:16):
gotta say i love how you startedthat well i shouldn't say i love
that but you're like airpods mywife hates them right yeah that's
a great investment buddy um greatinvestment buddy um you in
marriage counseling yeah yeah forme i'm gonna go i think the best
investment is usually liketraveling and booking trips trips
(40:37):
to the okanagan trips to okanaganyeah i'm gonna come in the summer
next time i keep going in likejanuary yeah like always yeah next
time you guys time you guys comeout here we'll do a live recording
yeah yeah definitely what is uhwhat's your favorite charity or
how do you give yeah yeahdefinitely what is uh what's my
favorite is going to be sick kidsjust helped out some of my family
before and so i'll donate to themannually and then kind of whenever
(40:58):
they're doing the LCBO collectingon them, I always toss a few Mine
is Burlington Hospice and that'sin my hometown and grandma always
loves when we donate to it.
that's fantastic.
How can Taylor or I or ourlistener help you guys out?
What you want us to do for you?So if you are on YouTube, as we
talked about, check out theInvested Entrepreneur.
That is the best place to find ourshorts and to listen to our full
episodes as well.
Also anywhere that you listen to
(41:18):
podcasts, if you look up theInvested Entrepreneur, that'd be
wonderful.
Right on.
Do you have pants on YouTube aswell or just shorts?
pants on You two kids.
I got two kids.
That was a bad question.
Yeah.
All right.
Well, it was great having you guys
on the show.
We'll finish on a high and yeah,
we'll see you on YouTube.
Great I got two kids.
That was a bad question.
be here.
Thanks for listening to theKelowna real estate podcast.
Be sure to reach out and let usknow how else we can add value to
your Kelowna real estate journey.
(41:39):
Please show some support by
hitting the like, share andsubscribe button.
This is sponsored by Matt GlennReal Estate and Taylor Adventure
Mortgages.
Estate Podcast with your host,award-winning realtor, Matt Glenn,
and top producing mortgage broker,Taylor Atkinson.
Professionals in the industry,enthusiastic entrepreneurs, and
successful investors.
When it comes to real estate,
we're all in.
comes to real estate, we're all
(00:27):
in.
Okay, Matt, Throne Speech came out
recently from BC government.
Some pretty exciting information.
One very valuable piece ofinformation, and I mean like
monetary value, which ispotentially saving one of my
clients over $12,000.
This is why you got to hire
Taylor, man.
He does ideas like this.
Just listen to this.
And just to be clear, you don't
actually have to hire me.
I'm free.
The banks pay for me.
No, dude, I think it sounds better
(00:49):
when I hire you.
That means I have my own possible.
Right.
Yeah.
I'm going to send you an invoice.
So yeah, the property transfer tax
exemption, which has been anabsolute thorn in my side when
you're talking first-timehomebuyers, because the limit was
$500,000.
like in Now, there's Kelowna, not
a lot of houses.
first-time homebuyers are getting
Like, into yeah, the market, butit just pushed a lot of people
(01:13):
over that threshold and then theyhad to pay property transfer tax.
And like it had a sliding scale to525, which was completely useless.
Yeah, it needed to be revamped.
So I'm glad it is.
So now they've increased that to835,000, And just to be Right.
Yeah.
I'm So now they've which allows a
lot more people, specifically inthe Okanagan region to get that
grant for that exemption.
So I have a client right now,
property under contract,everything's firm, we're broker
complete, instructions are readyto be sent to the lawyer, but
(01:35):
we're going to see if we can pushback closing by an extra couple of
weeks because it's closing inMarch.
And if we close April 1st oronwards, they're going to save
$12,700 in property transfer tax.
And that's not an expense that
just gets added to the mortgagelike CMHC fees.
It is directly out of your pockettime closing.
Pay it on closing.
Yeah.
If you are closing on a propertyin the next couple months, you
(01:56):
know, ideally it's in April, it'sgoing to be a pretty rare occasion
that you'd be able to push closingback a couple months because the
person you're buying from isprobably moving or needs those
funds.
But in this instance, it's
currently a rental property.
So we're able to push that back
and save a bunch of money.
Like it's only for first time
homebuyers buying in a certainway.
(02:17):
So not every sale has to be pushedback.
But yeah, you save them.
Now they have over $12,000 to
spend on renovations instead oftax.
So good for you.
So good for you.
Other things that are positive inthe market?
Inflation report, Matt?You were reading that.
Well, first, hold on.
Let's go talk about the
anti-flipping tax.
So house flipping in BC is, I'd
say, pretty much dead.
It was 20% to sell in one year
(02:37):
yeah or up to two years with asliding scale so but interestingly
there are some exceptions and thatis if you add a basement suite
assume it had to be a legalbasement suite or a carriage house
which i've always thought is idealif you go find like a two-story
house and you buy it and renovatethe whole thing you add a legal
suite into there you make them topnicer like i always thought that
(02:59):
was a play anyway to try and getthe most value add into a property
and then also kind of the safestexit strategy too because now you
have a rental property at the endif you can't sell it so i always
thought that was a play anyway andthen i got this i think people are
going to be taking advantage ofthe legal suite thing what do you
think i like it i don't know if itwould incentivize people to make
that large of an investment likeit definitely helps but i don't
know if it'd be the decidingfactor would it like it's still
(03:21):
going to cost a ton of money liketo do a flip at all well to add a
suite is that going to be the onepiece that changes if someone's
going to do it or not i don't knowi think it's a good legislation oh
yeah not everyone for sure i thinkflipping is effectively not a
thing unless you specialize inadding legal suites.
Yeah.
I just thought that was a good
point.
That's a good point.
Maybe now professionals are goingto add more suites, but I don't
love restricting flipping becauseit's a service that's needed.
(03:43):
There's a lot of rundown housesand people want a nicer place to
live in and they don't want totake the headache, buy it and then
renovate it and have nowhere tolive in the meantime.
So I don't love the governmentintervention on that one.
Honestly, I agree with you.
I always thought it was not a bad
thing.
Like obviously the lipstick ones
and the shitty things that youhear about people flipping a house
(04:05):
and it's just absolutely garbagejob and they up the price by 150
grand or whatever they do.
Like I always thought that was
obviously a little little suspectbut people that go in and do a
really nice renovation making thehouses nicer in the street like
they are increasing the value ofthe house but the house is just
worth more because it's a nicerhouse yeah so i agree with you i
kind of like when people did itright there's also the issue with
people just like buying a houseand not doing anything with it
(04:27):
like just buying it and selling itas is yeah yeah, yeah.
A few months later, like that's...
Like speculating on it, for sure.
Yeah.
I guess maybe it also limits that
strategy if like an investor isgoing to buy and try and kick out
the tenant based on a renovationand then sell.
But I don't know.
Yeah, I just, I don't love that
rule so much.
And I don't think there's any
massive companies like who isgoing around and buying hundreds
of single family houses to flipthem.
(04:48):
I don't think think it's thatprevalent i don't know what if
they are like do they need anagent yeah that helps oh yeah I
just thought on it, for so also wehave this inflation report 2.9
we're now under three percentwhich is ticking close to lower in
interest rates yeah right like i'mhearing more and more talk coming
down in the spring i don't know ifi'm totally on that train yet but
like it also hasn't left thestation so it could happen in the
(05:09):
spring but i think it's in thesummer i'm loving your analogies
today you're killing it yeah i istill think it's probably going to
be the summer the bond market'sactually picked up a little bit
from the data from the statesabout 10 days ago yeah but it is a
very good sign for our well not agood sign for our economy but it's
a good sign for our balancedmarket if you want to say that i
(05:29):
just i also noticed that sincethat inflation report came out gas
prices have actually went up whichwill affect the inflation thing so
yeah maybe a little too soon butit's good news it's heading in the
right direction yeah so that'skind of killing it yeah i i other
thing watching the news thismorning global news i saw on the
ticker going across the screen acolossally high number of
canadians plan to buy a homewithin a year saw that didn't
(05:50):
really see any context i was likeman i gotta check this out so i
googled it went to the old googlemachine went to global figured it
out here's what it says so withcanada's housing market starting
to turn a corner there is agrowing demand for home ownership
with a colossally high number ofpeople planning to buy a home
within the next year, according toa new poll.
Almost half, 49% of peoplesurveyed last month said that they
(06:11):
plan to purchase a home within thenext five years.
That percentage is up from a yearago when it was only 43% expressed
the same intent.
Over the next 12 months, about 1
in 10, 11%, or 4.4 millionCanadians plan to buy a home,
which is still a colossally highnumber given that the greatest
number of homes ever sold in asingle year in Canada was 700,000.
So 4.4 million people in Canadasay they want to buy a home this
(06:32):
year.
And the highest number we've ever
sold is 700,000.
So obviously not 4.4 million
people are going to buy a home,but what if a quarter of those
people do that's over a million,that's 1.1 million people.
Or what if 20% do, I don't knowwhat the math is on that, but it's
equaling the highest number ofhomes ever sold.
Yeah.
So this could be a good year for
(06:54):
turnover at least.
I don't know what the price Well,
is or what that but with theinterest means, rates coming this
could be a good year down, for atI don't turnover, know what least.
Well, the prices or what thatmeans, but with the interest rates
coming down, this could be a goodyear.
Yeah.
I mean, in terms of like our sales
revenue, for sure, I think it'sgoing to be a good year in terms
(07:17):
of like what the government'strying to do affordable housing.
I think this is going to counterthat some very interesting number
of sales, I guess.
Yeah.
More people buying buying demand,but if people moving doesn't
really well yeah it's tough to seethe transparency in that data
because we have had the largestgrowth of our trying to
immigration most of those peopleneed to find somewhere to live
whether they're going to buy orrent and then the renter that's
moving out of that tenantedproperty is then going to buy so i
I think that's adding a lot to it.
And I've seen some charts recently
that like the amount we'rebuilding is historically the
highest we have ever produced inCanada.
Like hundreds of thousands of ourprojects are currently in place,
(07:40):
building permits, like everyone'strying to do their best to build,
but we can't keep up with thedemand because we have this
massive influx of people that arebuying.
So it kind of, yeah, correspondswith your data there.
I honestly think there is amassive opportunity in Kelowna to
buy a condo this year.
I've been saying this, condo
prices are going to come down inthe next few months.
(08:01):
Like it's almost a certainty withthese certain short-term rental
things, but they're not going tostay down.
Right.
So they're going to come down.
Our interest rates are going tocome down.
There is an opportunity to go buya condo i would say mid-range
condo so i'm talking about onethat's like kind of six hundred
thousand to a million dollars ithink you're going to get the best
deals on those condos in the nextsix months until the fall i think
(08:22):
there's an opportunity if you area first-time home buyer you should
be looking at a decent condo thereare going to be sales and you get
your property transfer tax waivednow that the threshold is high
enough like there is a hugeopportunity and property transfer
tax waived now that the thresholdis high enough like there isn't a
huge opportunity and propertytransfer tax on new builds i think
it's up to 1.1 don't quote me forsure but it's definitely a million
but i think it's 1.1 where youdon't have to pay property
(08:44):
transfer tax on new builds ifyou're a first-time homebuyer
don't quote us on anythinghomebuyer don't quote a good year
to buy a condo in Kelowna.
I'm telling you.
You heard it here first.
Yeah.
Talking about like a national kindof figure, like some of the stats
we've been talking about.
The two guys we have on today are
near and dear to us.
Tom and Brandon, both mortgage
agents, brokers out in Ontario.
We discussed the difference.
Yeah.
Yeah.
But big entrepreneur guys, theyhave their own couple podcasts.
Like we struggle.
Yeah, they're doing good things
(09:04):
over there at InvestedEntrepreneur and the Commission
Breath podcast.
Yeah, so great guys to reach out
to.
Yeah, good things want to know
about, you know, tips and tricksjust to run a business or kind of
the Ontario market, definitelygive them a lesson to their pretty
knowledgeable dudes.
And if you think our social media
is banging, it's basically becausewe copy everything they do.
So they're doing the research.
We're reaping the rewards.
(09:24):
And if you don't like ours, thentell them to change theirs and
then we'll follow.
Yeah, exactly.
Yeah.
We'll get it.
We'll get it somewhere down theline.
But yeah, all the improvements arecoming from them.
Awesome.
Well, enjoy the show.
There are a couple of fun guysconnect with them for sure.
Definitely.
if you don't like to the show,
(09:44):
Brandon and Tom.
How are you guys doing?
great.
Thanks for having us.
Fantastic.
Is the vibe different on our show?
What do you notice right away?We're just getting started.
We're just opening up, so we'llsee where the direction takes us.
feel like we already had anhour-long podcast before we hit
record.
Well, we like to start our show
for you guys to kind of connectwith our listener a little bit.
What's your perfect productiveFriday look like?
(10:06):
Yeah, basically what gives youkind of energy throughout the
workday leading into the weekend?Go for buddy.
it, Yeah, so my perfect Friday, Iget my daughter dropped off at
school.
I come back.
I catch up on a couple emails.
I try not to have any active files
or client meetings on Fridays justbecause going into the weekend, if
things get delayed, it's a bit ofa shit show.
I send my weekly realtor email andthen I try to wrap things up.
(10:26):
So right now I'm usually wrappingup kind of around like that one
o'clock marker on Fridays.
I was saying to Tom last week, my
goal is to just completely removeFridays for us going forward.
I love that.
Is that like from any that you
just want like a longer weekend orwhat's the purpose of I was at my
chiropractor and he was like yeahat a certain point i just
eliminated on my friday and i'mlike what'd you do with all the
(10:48):
clients he's like i just jammedthem all in monday through
thursday and i just work likeinsanely hard during that stretch
i'm like how's it working out foryou like i love it i feel like so
great for those four days my brainis so focused on just work and it
works so well for me and i waslike i wonder if i could do that
with mortgages and i'm like alwaystelling people don't close on
Fridays.
Don't do this on Fridays.
(11:08):
I'm like, what if I just saidwe're closed on Fridays?
got a four hour work week vibessure.
Yeah.
I do love Timothy Ferris, but not
to the level of like havingeverything VCs and that level, but
you you know him pretty well.
I've never heard anyone call him
Timothy.
I was just going to say that.
There's like you're his father.
heard anyone call him Timothy.
I was just going to say that.
There's buddies.
I usually just call him Timmy.
buddies.
I usually just call him What aboutyou, Thomas?
(11:29):
I love it.
about you, Yeah, so pretty similar
actually because we had thisconversation last week and still
working on it, but I'm trying toget at least start with a half day
on Friday and be done at 12.
And I tried to get all of my files
kind of like wrapped up for theweek by that point.
But obviously, the nature of ourbusiness, things come up.
So as of right now, I'm stillattempting that.
But to back things up the start ofthe day, what I do is Monday to
(11:49):
Friday, I wake up at 445 in themorning.
From there, I'll either work out.
Monday, Wednesday, Friday is my
workout times.
If I'm not working out, I'll pound
a coffee and just go work.
And then I'll just work until
probably 7.30 when my son wakesup.
Press the rest of the day.
And on Friday, if I'm done at 12
that day, go do something with thefamily.
And then from there, I'll alwaysfinish the day with at least one
drink.
It's either going to be a Negroni
(12:12):
or an Old Fashioned.
I like Most people are Nice.
I'm it.
always going to do with like, at
least one to be a Nice.
Fashioned.
I like it.
It's like most people are I'm
always going to do somethinghealthy.
like, You're like, I'm alwaysgoing to have a Yeah.
I'm healthy all week.
That's my little treat to myself
on a Saturday.
Friday, Saturday.
Friday, How'd you pick 445?No, never.
(12:32):
So it started probably, I want tosay 10 years ago.
I transitioned to wanting to wakeup earlier.
And it was strictly for the factthat I wanted to just install
habits in my life, like whether itwas exercise, eating healthier,
and just having a set routine.
And then I started lowering that
time, I want to say I probablystarted at like maybe 630 or
something.
And then this year, specifically,
I went from 530 down to 445, likeprogressively.
(12:53):
And the reason for that is I justwant to crush out more work before
the day kind of gets ahead of you.
And I found that once like nine
o'clock hits, client emails comein, you got to deal with active
files.
And I just found that I was way
more productive getting myselfdone earlier.
And another thing that was ofinfluence that was i do have a
young boy he's one years old so hewakes up even earlier now at 6 30
so i'm trying to get everythingdone before he wakes up so at
(13:14):
least i feel a little bitproductive before uh the day gets
ahead me good for you yeah yeahi'm lucky my son can get till 6 30
is he up earlier i'm usually upearlier too i'm not up at 4 45 but
i'm up earlier than that i knowhis son's up at five and mac gets
up at six so yeah let's walkaround for an hour i know his
(13:34):
son's up at around for an hourlittle bit about your guys's
business you guys are bothmortgage agents from ontario yeah
you're speaking to a to a brokerhere what is the difference in in
ontario i i can't follow you guysso mortgage agent level one can do
mortgages mortgage agent level twocan do mortgages private and
alternative as well and thenbroker can manage a team wow
really okay well sorry for you canyou manage a team taylor can you
(13:58):
manage a team, Taylor?Can you can Not well, not well.
In we're BC, just called brokersor like a sub broker.
Yeah, nice.
Yeah, not well.
Yeah, nice.
Yeah, there's no agent.
I'm jealous of that, man.
Like we had to do a full week
course test after.
Hold though.
on, It's not to get your Holdthough.
on, It's not to get your licensein Ontario, though you can do it
in like a week, right?Yeah, it's like minimum three
(14:18):
months.
Yeah, it's like Both very short.
very short.
Yeah, no kidding like to help
people with the biggest investmentor purchase in their life and
you're saying like you can get thecourse done in three months on
your side even quicker for usbecause it's all online for the
agent license i always found thatpretty nuts and that's why you
have so much turnover in theindustry is because of these
people that think it's like a getrich quick scheme and they enter
(14:41):
and then they leave after a yearbecause they totally yeah there's
a test pretty material then foryou guys the agent test was really
easy the broker test was hardbecause like it's all based on
what the government would do andthen you're like you've been
brokering mortgages for a fewyears here this is what i would
(15:02):
actually do in this scenario yeahso it was just kind of like not
the same i think that test and bcis pretty hard hey that test oh
passed it yeah yeah exactly it'slike a lot of courses like that
like the theory is not thatapplicable to the real life that's
like an agent also read the bookyou jump through the hoops you
memorize and then you pretty muchput 90% of it, you know, back on
the bookshelf and you start tolearn the real world.
(15:22):
But in terms of like beingsuccessful in the industry, you
guys have done great.
You also, I mean, we've been on
your podcast.
That's why we wanted to bring you
on ours as well.
So Invested Entrepreneur is a
podcast.
You guys interview people weekly,
obviously entrepreneurs, mostlywithin Canada, a lot kind of in
the real estate business.
What do you find separates like
successful and unsuccessfulentrepreneurs?
Like what can people do?What are the key takeaways that
(15:44):
you guys it yeah yeah exactly it'slike a that's like an agent also
read book you Obviously everyonehas a different industry and a
different angle for a lot ofthings, but the common threads
that we see a lot is that thepeople who are successful know
what to focus on and they pour alltheir energy and efforts into
those things and they basicallyignore everything else or do it as
their like fun thing to do it'slike i'm gonna do all my
(16:04):
prospecting calls and then it'snice to have this extra layer on
my business that's like a podcastor something like that but they
don't ever give up the prospectingfor the fun thing i would probably
say the same if i had to boil itdown to two things.
It's not like revolutionary whatI'm about to say, but it's
consistency and sticking to basicsand just sounds super cheesy, but
never really giving up on whatyou're trying to pursue.
(16:26):
Because I find that the breakingpoint for most entrepreneurs,
they're almost like, if you lookat a graph, they're probably like
humming along like this.
And then all of a sudden, they
would hit that breaking point andtheir business would shoot off.
But a lot of people give up rightbefore that happens.
I feel like that happens with alot of entrepreneurs.
And it's the ones that just kindof believe in themselves and
(16:48):
sticking long term to it, and notchasing that shiny object and
trying multiple different thingsin their business.
I think that's the commonalitieswe've seen since starting our
podcast.
What made you guys switch to being
entrepreneurs or have you alwaysbeen entrepreneurs?
Like, was it the autonomy, thefreedom, the money, the stress?
Yeah, I've always beenentrepreneurial and I think it was
just like, I would try to go dosomething like consulting or
working for a different companyand like try to fit in that box
and be like, I would do it thisway.
(17:10):
You're an idiot, whatever.
And just like, eventually I'm
like, Hey, fuck, I cannot work forsomeone else.
I need to just work for myself.
So that became pretty clear about
mid twenties that I knew that thatwas never going to be a course I
could take.
So I just had to figure out
something in the entrepreneurialspace.
Just a terrible full-timeemployee.
So you were forced to Yeah yeah weYeah yeah we grew up together and
it's funny because like he alwayshad something going on and from
(17:33):
what i remember back in highschool is he was like always the
wallet man bacchus and barley wasthis company he had started up
making wallets and other thosekeychain holders or whatever you
call them right you call themright it's like my buddy's dad won
like a leather company that madethe back patches on jeans so we're
like he makes all these otheraccessories so we had like a great
manufacturer and we would justlike make wallets catch all trays
(17:54):
key rings it was a great businessbut we were way too young to
handle like the responsibilitycool yeah he cool still got it
yeah lifetime guarantee i stillhave guarantee i still have
Passport cases.
Like everyone still uses it.
Like they were fantastic.
But like we were in Golf Digest.
We got like tons of like greatfeedback.
What?But then we couldn't we couldn't
handle it.
like, We would get thousands of
(18:15):
dollars in and then we would belet's order so much inventory.
like, We couldn't sell Like it.
we just had no discipline.
We were just really bad at this.
So you did So you did what Tom
said.
You kind of gave up before it
really took off you just needed acouple things a couple things
literally there was a period wherewe would meet and we would like
talk for half an hour and then wewould i don't know who's listening
(18:35):
to this but sorry mom we wouldsmoke a joint and have a couple
beers and then we'd be like thatwas a good day it was amazing
sounds like in the early 20s yeahi know it was just like if you
gave me the opportunity i wouldtotally do different yeah that
would it is i mean you like in youalways been an entrepreneur you
always been an entrepreneur yesand no it's always been in
(18:56):
something i realized i'd say threeyears ago it's always been in the
back of my mind and the way ithink about things but i never
really of my up until yeah threeyears ago where i was always
working as an employee.
It took me seven year journey to
get hired on as a professionalfirefighter.
So all I did in my life was justfocus on trying to get hired as a
firefighter.
And for those that are listening
(19:17):
that are they understand how hardit is just to get into that
career.
So it took me the seven years.
And then once I got on, love thejob.
And you know, at that point, Ijust wanted something to keep
working towards after getting onbecause that was my life, seven
years of trying to get on.
(19:37):
So at that point, I started doing
mortgages and realized quicklythat like, entrepreneurial
endeavors and just the whole spacein general was like something that
really clicked for me.
And then that's kind of what
started off our podcast too, wasboth of us have always been
interested in the FIRE FinancialIndependence Retire community, So
we wanted to And then that's kindof Early.
what started off our podcast isboth of us have always been
interested too, in the firecommunity, financial independence,
retire early.
So we wanted to start a podcast,
not only about that, but morespecifically focusing on the FI
part.
So financial independence.
And both of us are of thatmindset.
(19:58):
And that's kind of what brought usto starting the podcast.
That's funny.
A firefighter to the fire.
Yeah.
Or the firefighter to the That's
fire.
Firefighter to the And is just
fire.
Firefighter.
Yeah.
That's perfect.
With that, like what role do youthink entrepreneurs play in the
Canadian economy or just in Canadain general?
Like personally, I feelentrepreneurs are like very
crucial to Canadian growth andevolution on a lot of things,
technology, you know, the waybusinesses are run, et cetera.
But I don't feel it's really thatsupported by the Canadian
(20:20):
government.
Like I feel they would rather have
everyone is like a fire.
Firefighter.
Yeah.
paying a T4 kind of tax.
Yeah.
What's your guys' stance on agree
with you more.
I think entrepreneurs are such an
important part of like the overallmosaic of Canada and like
creativity, business owners, whatthey contribute and like how they
have society evolve.
It always starts with
entrepreneurship, I think.
And I think largely they're
shunned by the top level ofsociety.
(20:41):
Like if you look at mortgagelending, for example, it's harder
as an entrepreneur, anything to dowith your taxes, it's extremely
difficult from the government asan entrepreneur.
Anything to do with your taxes,it's extremely difficult from the
government as an entrepreneur.
Anything like this makes it very
difficult to be a small businessowner.
Once you scale and you start togrow, they're great to support you
once you're big business.
(21:01):
But when you're a small business,
it's quite a difficult journey.
And I think that's really wrong in
our society.
But it also, it creates kind of a
separate microcosm whereentrepreneurs are also supporting
each I don't know other.
about you but it guys, it creates
also, kind of a separate microcosmwhere entrepreneurs are also
supporting each other.
Like, I don't know about you guys,
but I'm like more likely to stopat the mom and pop shop or like go
somewhere else because I recognizethat's someone else who's paying
for their kids hockey or trying totake their trip a year kind of
(21:24):
thing.
So there's two sides to
everything, right?Yeah.
Yeah.
What you, Tom?
Do you got any input on that?Yeah.
I mean, I would agree with allthat.
And it's just, I always look backand think like, why wasn't
entrepreneurship like everpresented to me at an early age?
Like, why is it never talkedabout?
And it goes back to like, ofcourse, like the school systems,
(21:45):
it's always geared towardsteaching people, like you got to
go to college, university, pickthe job that's right for you.
And thinking back to like when Iwas in high school, I had no idea
what I wanted to do.
And I just wish someone told me
like, Hey, this is an option herethat you can do.
You don't have to go to college.
You can figure things out before
(22:07):
you do that.
Like not saying don't go to
college or university, but Hey,here's this other option.
And it actually might be a betterfit for you and your personality.
It is It is funny.
A school like it does teach you
how to be a really good employee.
Like I feel like entrepreneurship
is something that people don'teven, they know that you can be an
entrepreneur, but they don'treally understand how limitless
(22:28):
the possibilities are.
And like, you can do anything you
want to do, you know?Yeah, exactly.
I always thought ofentrepreneurship as like just the
typical business owner that ownslike, yeah, mom and pop shop.
Like there's so many levels to itin different types of businesses.
And I never knew any of that.
Yeah.
Honestly, probably up until likefour years ago you know what i
mean what's the definition of anentrepreneur is it just
self-employed taking fridays offstarting a business like i guess
so many people start with your dayoff anywhere from there that's
what you do like so many peoplecan just be there but yeah it is
(22:50):
kind of a loose term yeah startwith your day off anywhere from
there that's what you do like somany people can just be there but
used to be the running joke thatlike we used to call ourselves
when we had that leather businessand stuff like that we were kind
of like we're entrepreneursbecause we like want to be
entrepreneurs but we have thisbusiness where like we're not
doing much work i think for medefines an entrepreneur now as
(23:11):
someone who's actually working oncreating a business for themselves
and that's what they're pouringtheir energy and their life's
focus towards yeah and i thinklike said said, too, there's
different layers to it.
Like just because you're an
entrepreneur doesn't mean that youhave more freedom.
If anything, a lot ofentrepreneurs work more hours than
the typical employee, but that'swhere the different layers come
into play.
Like if you're starting out your
business, you're probably going tobe grinding for a while until you
can hire out some people and takesome tasks off your plate.
(23:33):
And to me, that's where the realmagic happens is when you buy back
your time by having this systemand people underneath you that can
help support your Okay.
Well, since this is a real estate
based show as well, leading into2024, what are you guys kind of
seeing in your market out East interms of transactions or our
prices going down, up?And part two of that, kind of
where do you see the market goingin terms of interest rates?
And just, yeah, what are thetransactions looking like?
(23:53):
It's so weird hearing outies.
Yeah, I know.
Like from like down in Ontario, wenever hear that.
Yeah, so if I can speak to ourbusiness specifically, January was
super, super slow.
And February has come out kind of
like out of the gates flying interms of people reaching out,
whether it's people that arelooking to get an update on their
pre-approval or people that havebeen sitting on the sidelines for
(24:14):
a bit.
We're seeing a lot more of that
right now.
So it definitely is heating up a
little bit.
Not saying it's craziness, but
we're definitely seeing that now.
And just speaking to like other
realtors that we're partnered upwith, I'm seeing more activity in
the major hubs.
So like GTA area and the bigger
cities, but it hasn't reallytrickled out too much to the
secondary markets.
So that's what I'm seeing.
And in terms of rate cuts, I stillsee between 0.75 to 1%.'s a bold
prediction but i'll put it outthere i'm seeing that in terms of
a rate cut for 2024 but i think wewon't see the first cut until
(24:35):
mid-year now with the recent newsin the u.s coming out so a lot of
people were predicting earlyspring is when we're going to see
that first cut but i think we'llprobably see it Like from like
yeah i had faith that it was goingcome in march but now i'm thinking
june too yeah i was always goingwith april but i had that written
down anytime someone asked me i'mlike it's going to be in april
(24:56):
that's my prediction now i'm likemaybe a little bit after but it's
going to happen at some point idon't know it's going back it is
know it's going back it isinteresting how this conversation
shifted like obviously going upit's just off the table now
completely and it's coming down.
It's just a matter of time.
Like, what month, really?We're just waiting for these
announcements to see what happens.
So it's a shift that's subtle, but
it's significant.
(25:16):
Are you finding, like, your guys'
clients out there are comfortablenow with where rates are?
Like, I feel more stressfulconversations were happening
seven, eight months ago when thevolatility was still there and
fixed rates were pretty high.
But now that fixed rates have kind
of come down substantially sincethen, or maybe there's just a
complacency where people are like,yeah, I'm used to a 5.5% rate now.
(25:38):
Yeah, I can see that too, man.
I think it's just people are more
comfortable with where rates areat now.
And a lot of them are pleasantlysurprised when we show them fixed
rates too, because nobody knowsthat fixed rates fluctuate more
rapidly and volatile versus theBank of Canada overnight rates.
So just explaining that to peopleand understanding that, hey, fixed
(25:59):
rates have actually dropped overthe last one to two months and
showing them, hey, we have ratesin the low fives and some like
insured, we're in the high fours.
So people are more comfortable
with it.
Okay.
Here's it.
Okay.
Here's a tough question that youguys probably answer it weekly.
Client comes to you, insuredmortgage, so owner occupied less
than a million dollars.
So very competitive rates.
What are you putting them in ifqualification isn't an issue?
(26:20):
Meaning they could go variable,they could go three year fixed,
four five year.
Yeah.
So is it first time home buyer?Yeah.
on the profile first timehomebuyer i've been recommending
fixed more frequently just becausethey get the stability of making
the monthly payment they build outtheir first kind of budget that
way term wise i don't everrecommend past three year unless
someone's really like i want afive and then i'm like just please
(26:41):
take a four but like three yearsis kind of the sweet spot if we're
doing variable right now is ithave to have that conversation
with them that they're going tohave short-term pain and hopefully
long-term gain and some of themcan wrap their head around it if
they're not getting their headaround it i'm like okay let's just
go short-term yeah variable is atough one right now because it's
so much higher than fixed likeit's gonna have to drop two and a
half percent over like a threeyear term compared to a three year
(27:02):
fix to kind of break even on that.
Whereas like, yeah, I don't want
to put anyone in a five year, butlike qualification wise, sometimes
you just depending on the lender,you kind of force your kind of
force your hand.
It's nice.
The three year?Yeah, the three year is nice.
It's just like, yeah.
Why wouldn't you do a five year?
What's the reasoning behind that?Peak market right now for where
(27:25):
rates are.
So yes, you're getting a bit of a
discount, but they're locked infor that long period.
No flexibility there.
Also, statistics show that
majority of Canadians break theirmortgage around the three-year
marker.
So you're either setting them up
to be forced to port that productor incur a penalty to break their
mortgage.
So I like the three-year because
you hit that statistical marker,they get the stability of the
fixed product, and then they alsoget that sweet spot in terms of
(27:49):
the rate cycle.
Why Yeah, the penalty needs to be
a conversation when you're puttingsomebody in a five-year fix right
now.
Because if rates drop even a
percent, percent and a half,depending on the lender, interest
rate deferential calculation onthat is going to be massive if
one, they either sell or they wantto break it and go to a different
product or do a refi or likethere's so many scenarios that,
you know, there's a huge liabilitythere.
(28:11):
So I do love like asking thatquestion and hearing brokers say,
yeah, like I do three year a lotright now, because generally
brokers get paid less on a shorterterm where if a client just goes
to a bank, I've never heard of abank posing, hey, why not a three
year?That's a great product for you
because the banks are going tomake less money on that, you know?
(28:32):
So yeah, good for you give a bitof a spin to that.
I'm actually okay with a five yearfix if it's insured.
I don't push it because I wouldagree with Brandon, I would rather
them go into a shorter term.
But for first-time homebuyers that
want that stability, they want thelowest rate, the lowest payment,
like a five-year fix, say call it5.09% right now for the average
monoline lender, pretty good.
(28:53):
And I wouldn't be too shocked if
we don't go too much lower thanthat in the next couple, two,
three years.
So I don't think it's horrible,
but I would lead towards theshort-term fix.
And then if it were me and mypersonal mortgage and I was going
insured, I would definitely gowith the five-year variable.
If we have that discount of 0.9%off of prime, I would definitely
go with that.
But I'm more risk tolerant versus
like if it was the first time homebuyer, I wouldn't really that.
(29:14):
Yeah.
The three years are tough one with
that because you're hedging thatin three years rates are going to
be substantially cheaper than theyare right now in a five year.
So it's like I find right now themargins, especially predicting
them are much slimmer than theywere over the past couple of
years.
Like previous, it was so much
easier to be like, oh, the threeyears a great option or like a
year and a half ago, a three yearwas a really good product because
(29:37):
in three years like we'repredicting that but now it's like
well three years out are theygoing to be much lower so yeah
yeah you guys found people justreluctant to go into a variable at
all because of what happened overthe last few you guys found oh
yeah yeah there's a lot of peoplethat either are scared of
themselves themselves or theirparents are telling them, don't go
variable.
Like, look what happened to me
(29:58):
when I renewed variable.
I'm paying this amount more.
So there's a lot of people likethat.
I always just tell those people,I'm like, you know what?
Like, if that's your mindset goinginto this, there is a price on a
good night's sleep.
Just take the fixed option and
don't think about your mortgageuntil you come up for renewal.
Yeah, it does seem somethingsatisfying about just knowing what
your payments are for the nextthree four or five years like as
(30:20):
long as you can make them seemskind of easy to do that especially
also it Yeah, it does also itdepends on the lender you're with
but you have options too like ifyou want a lower rate and you're
locked into a five year fix if youwant to latch on to a lower rate
you can do that without breakingyour mortgage too like there's
lenders like sc Scotia where youcan go and you can do what's
called a blend and extend.
(30:41):
Say you're two years in and rates
have dropped and you have afive-year fixed, you can go back
to them and request a lower rate.
They'll blend your current rate
with whatever the rate is at thatpoint.
There's pros and cons to it.
You're going to extend back to a
five-year term.
But if you really want that lower
rate, it's an option for people togo with.
(31:01):
Is there options for people thathave variables right now that are
higher to into a fixed what thatlook like for somebody so we did
actually quite a bit of thataround the springtime last year
there was like a rate drop and itwas pretty attractive there was
kind of stuff in the mid fours atone point and we were just
breaking the variable so paying athree-month interest rate penalty
and then putting them in ashort-term product.
And for those people, it workedout because now they're in like a
(31:22):
three year fixed, saved all thatmoney because the variable hasn't
come down yet.
And they've recovered that penalty
plus now on the positive side ofthings.
You also do that with certainlenders.
If you're not switching lenders,you can take what their fixed
product is.
That's also a strategy right now
that people might have if I thinkis, bond OK, take what their fixed
product That's also is.
a strategy right now that people
(31:43):
might have is, okay, if I thinkbond market and the fixed product
is still going to go down over thenext year, but I don't want a one
year fixed and then hope that it'sgoing to be there in a year, take
a variable.
And then whenever you see rates
drop what you want, then you cankind of lock into that.
There's a million ways to sliceit.
Yeah.
Most of them aren't letting you
lock in and lower your termthough.
(32:03):
So if you take the variable andyou go for one year, you have to
then lock into the four yearoption.
They won't let you go and thenlock into the one year.
So there's a little bit of likegaming and nuance to it.
That's why you call a brokerthough.
Yeah.
A agent.
Either one works.
Nothing changed on our day to
Okay.
day.
Nothing changed on our day toOkay.
day.
Another question for you guys then
then what do you find?Like is the most powerful tool
(32:25):
right now?If you're either just trying to
get into the market or buy arental property, like what can
people do to position themselvesbest, whether it's a mortgage
product or.
We on three, Brandon.
I already know what you're goingto say.
Yeah.
Okay.
We should say it on three, but Itest it.
Okay.
You got to say stayed on three
brandon so i already know whatyou're gonna say yeah okay we
should say it on three but i testit okay you gotta say it on three
then i test it you Yeah.
(32:45):
Okay.
We should say it on three but itest it okay you gotta say it on
three then i test it you gottasend it oh you go on goal so three
two one it oh we gotta redo thatepisode of the office too.
Yeah, redo that episode of I playrock and my House hacking is the
Can you explain best.
that to our listener?
Yeah, for sure.
So take a house you're looking at
getting, either there's a basementunit or a granny suite or
something like that.
(33:05):
You are using that rental income
to qualify for the mortgage.
And then that rental income also
offsets your monthly payment.
So it becomes a lot more palatable
for your budget.
And it also starts to build equity
that way.
So you get in your first house,
you can house hack with as littleas 5%.
And the beauty of this is whenyou're ready for the next
property, you can buy that nextproperty with as little as 5% once
(33:26):
again.
Keep the house that you're
currently hacking, rent out theother unit.
And now you have two units rentedout contributing to your income.
So it increases your qualificationonce again, as well as offsets the
mortgage and gives you somecashflow.
It's the dream.
It's a It's the dream.
It's a real estate leverage dreamto start with.
If I can go back, I would do ithands down.
If I knew about that strategy andI didn't have a family, I would
100% do it.
Too late for me now, but that's
what I would do to scale.
(33:46):
I lost us.
what I would do to scale.
I lost us.
Yeah.
Yeah.
And you can't go backwards too,right?
You can't go backwards in the eyesof the lender's juice.
It's like, why are you giving upyour single family home to now go
live in a duplex or a triplex?Like, it doesn't make sense.
I'm looking at your incomestatements.
Times aren't that So yeah.
Yeah.
It's kind of funny the things thatyou don't right?
know, Let's go back toentrepreneurship too.
(34:07):
Like you just don't know what youdon't right?
know, So how do you fix that?like, You got to go talk to
people.
You have to read listen books, to
podcasts.
I Like, wish I would have known
this too when I bought my firsthouse because I probably would
have made sure it was one with asuite or I think it's getting
better though, like in terms ofresources, because when I was in
high school, I mean, I can'tremember when YouTube came out,
(34:28):
but it definitely wasn't asprevalent as it is now.
Like just having YouTube orpodcasting like this wasn't around
and there wasn't as manyresources.
Whereas I think like the youngergeneration, they're on these
platforms.
So the information is going to
come at them more often than notversus like when we were younger,
we didn't really have this.
No shit.
So I when it No shit.
So I had a cousin gives me a call
and he's like 20 years old andhe's asking me questions about
investing in real estate.
I was like, I just learned about
(34:48):
this like four years ago.
And here you are like 20.
Just even the fact that you'reasking me this questions, just a
given that you're going to be asuccessful kid.
Right.
Nail right on the head there.
Like there's just a lot moreresources out right now.
And people like us are 20.
the word all the time.
Yeah.
And like, we always say this, like
people turn to YouTube now insteadof like watching TV, the younger
(35:11):
kids.
So like my step always watch stuff
on YouTube.
And I like the other day I was
like looking for something onNetflix.
I'm like, fuck this.
I'm just going to watch a few
YouTube videos.
And I ended up watching like way
more focused stuff on like realestate entrepreneurship, like down
this whole rabbit hole.
But I'm like, that's what what
they're getting they're gettinglike the five to ten minute pure
(35:32):
information versus like sellingsir hant or whatever kind of
selling sunset content are youtelling me listener is not going
to understand my office referencea few minutes ago yeah yeah our
listeners might yeah yeah i wasjust gonna go back a second there
too like kind of doing hosthacking for a client yeah our also
have to work with someone thatyou're comfortable with and you
are aligned with and you thinkyeah is the right fit for you
(35:54):
because they went to their localbank it's a basement suite it's a
house obviously it's a house witha basement suite, but the rental
income, and I know how theirspecific bank calculates it for
the subject owner occupied houseis not enough to qualify them for
purchase price needed.
But we have access to, you know,
two lenders and specifically theyuse a hundred percent of the
rental income from that less theproperty taxes and the the heat.
I was like, this is easy.
We can make this work all day.
So it's not that that person hasto go and shop around and figure
(36:16):
out which lender has whatguideline.
You just find someone that you'reconfident with and you work with
them and they'll do the hard workfor you.
Yeah, that's a great point.
One third of the benefits of house
hacking is the mortgagequalification.
So you want to use that to thebest of your abilities.
And I think you're talking aboutMCAP and Strive.
I'm going to drop some namesbecause it's for the good for you.
So going to drop somequalification, you're going to get
(36:38):
more when you house hack versus onyour own and you're just buying a
straight up residence.
You're going to have your mortgage
pay down from someone else doingit.
And your cash flow is going to bebetter because someone's helping
you with the mortgage payment.
And you're going to get into the
market quicker because if you'redebating on moving out of the
province even we're seeing a lotof people go out west to calgary
west for us instead of doing thatmaybe you can look in your own
area and try to see if you canmake it work and that's your first
(37:01):
step is reach out to someone liketaylor and he's got the options on
his side for the best rentaloffsets and that goes that goes
back to also like how long yourterm is and variable reverses a
fix and all those kinds of things.
Yeah.
Yeah.
The other piece I love to do with
the house hacking comparison islike once you do that budget and
you see how much your carryingcost is to then compare that to
what it would cost you to rentthat exact same unit as you're
buying.
And that's the mind blowing one.
Like I helped a woman out insarnia area do this and her
(37:23):
monthly carrying cost is like 750and the rent for that home would
be like 2200 minimum so she waslike over the moon and building
equity paying down the mortgagelove and you send her an invoice
every month for like 1500 buckshad a call me after a full year
and they were like i feel reallybad i paid my lawyer i paid my
realtor the commission on the saleof my last home i never got your
bill and like the husband and ihave just been feeling terrible
(37:44):
they thought you just forgot theythought you just forgot about it
yeah like i just need to like, I'mclean.
Like, let me know and I'll pay it.
Like, I don't know if you forgot.
I'm like, I don't charge youanything.
I'm paid directly by the lender.
And she's like, what?
I'm like, thanks for coming clean.
(38:06):
is hilarious.
That actually just happened to meas well.
A client was like, Hey, I'm doingmy taxes.
And it was a rental property.
Need to know how much you charged
me.
I was like, I didn't charge you
you anything.
It happens so often, man.
And that's so often, man.
And that's why I like to go to a
mortgage broker.
Like, well, I don't cost too much
(38:26):
money.
I'm like, no, it does not.
does not.
I opened my calls with that.
Now I'll say like, Hey, by theway, like before we proceed, I'm
not charging you anything just toheads up.
Cause like you would get to theend of your phone call and the
whole time they're probablythinking like like what is this
guy charging me by the end of thisso i try to get it up front now
(38:49):
because general population stilldoesn't really know what mortgage
brokers do and it's not to theirfault it's just not really public
knowledge probably thinking likelike what is this so i knowledge
there is private lenders you haveto yeah so certain alternative
lenders and private lenders youhave to charge a fee because they
don't charge anything but there'sobviously reasons why we need to
use those.
So yeah, people are interested in
that.
We do have a podcast.
I forget which episode it was, butwe did have a private lender on
(39:10):
talking about that.
Yeah, that's just how they
structure it.
But for any kind of a conventional
monoline lenders, yeah, they justpay to yeah so going to lead into
our kind of wrap up questionshere.
If you could buy any property inthe Okanagan in the next 12
months, what would it I'm going togo like on Okanagan Lake so I can
swim with Ogopogo.
I was going to say Okanagan Lake
too, but that's definitely awittier.
You have to make sure he's freeday.
Yeah.
I was actually scared of that when
(39:31):
I was a child swimming in thatlake.
So there is, I think, Sturgeon inOk hey taylor i haven't seen any i
haven't seen any either prettydeep i think they go pretty deep
but yeah i think you're safeyou'll have all your toes when you
get out of the water my limbs arebigger now so i think is, I any
the best thing you guys have spentmoney on airpods airpods you have
them right now 200 bucks no you'renot no no but my wife it.
I wear them all over the house allthe time.
(39:53):
Like I have YouTube premium, so Idon't go through the ads and I'll
just put it on like one and a halfor two times speed.
And man, like the $200 investmentfrom the AirPods, I've learned so
much.
I've been wearing AirPods for a
while, but like the AirPods prolove them.
Got to get those.
But yeah, just biggest investment
for me.
I me i gotta say i now 200 I me i
(40:16):
gotta say i love how you startedthat well i shouldn't say i love
that but you're like airpods mywife hates them right yeah that's
a great investment buddy um greatinvestment buddy um you in
marriage counseling yeah yeah forme i'm gonna go i think the best
investment is usually liketraveling and booking trips trips
(40:37):
to the okanagan trips to okanaganyeah i'm gonna come in the summer
next time i keep going in likejanuary yeah like always yeah next
time you guys time you guys comeout here we'll do a live recording
yeah yeah definitely what is uhwhat's your favorite charity or
how do you give yeah yeahdefinitely what is uh what's my
favorite is going to be sick kidsjust helped out some of my family
before and so i'll donate to themannually and then kind of whenever
(40:58):
they're doing the LCBO collectingon them, I always toss a few Mine
is Burlington Hospice and that'sin my hometown and grandma always
loves when we donate to it.
that's fantastic.
How can Taylor or I or ourlistener help you guys out?
What you want us to do for you?So if you are on YouTube, as we
talked about, check out theInvested Entrepreneur.
That is the best place to find ourshorts and to listen to our full
episodes as well.
Also anywhere that you listen to
(41:18):
podcasts, if you look up theInvested Entrepreneur, that'd be
wonderful.
Right on.
Do you have pants on YouTube aswell or just shorts?
pants on You two kids.
I got two kids.
That was a bad question.
Yeah.
All right.
Well, it was great having you guys
on the show.
We'll finish on a high and yeah,
we'll see you on YouTube.
Great I got two kids.
That was a bad question.
be here.
Thanks for listening to theKelowna real estate podcast.
Be sure to reach out and let usknow how else we can add value to
your Kelowna real estate journey.
(41:39):
Please show some support by
hitting the like, share andsubscribe button.
This is sponsored by Matt GlennReal Estate and Taylor Adventure
Mortgages.
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