Welcome to the Close More Deals podcast. I'm your host, Scott Dillingham. I'm really excited to be here today to show you guys how to grow your business. I've been helping, teaching, coach realtors for years about special programs, rates, terms, conditions, anything and everything under the sun, which has enabled realtors to close more deals. So I'm here today to show you how to close more deals as well.
Scott Dillingham:So generally when I do these things, I like to start off with rates. So I'm gonna share my screen if you're watching this or listening on Spotify, you can watch this and you can see exactly what I'm going over here. Ideally, five year fixed, this is insured, so we're putting less than 20% down. We've got a 3.94 and up. If we go with a variable, we've got 3.54 as the lowest as you can see.
Scott Dillingham:Now if we go insurable, so insurable means behind the scenes, the lender is still insuring it with CMHC or equivalent insurance provider. However, there's no CMHC fee to the borrower. So you do have to have 20% down or more, and you have to have a twenty five year amortization. So that can be a negative for some buyers because they want, you know, some might want the smallest payments and want the third year. But if we look at the five year fixed, the lowest is actually remains the same at three point nine four.
Scott Dillingham:But for the variable, that does go up a little bit. We're at 3.69. And then lastly, uninsurable. This is purchases 20% down. We're getting a thirty year amortization.
Scott Dillingham:The lowest rates are starting at 4.24. And then if we go with the variable, we're showing around 3.95. Now please keep in mind, all rates are as of today. So you wanna wanna realize that because we don't wanna, you know, expect rates and then they're they're not there. Right?
Scott Dillingham:That's that's not good. So that's kind of where the rates are right now. The next thing I wanna talk about is part of these episodes. I'm trying to do like five minutes or less once a week, so you have the latest updates. I think the most important thing that I wanna get this started off with is you want your clients to deal with an experienced mortgage lender or broker.
Scott Dillingham:I used to work at a big bank and I got so many referrals because the realtor said, oh, well, my client banks there. It was easy to easy to go there. And you know what? That might be right, but you are severely handicapping your client's preapproval and your paycheck by having your client just go to the bank. Now on the broker side of things, realizing and seeing all the different lenders and all the different terms, there's differences.
Scott Dillingham:So for an example, and I'm not gonna call out the lenders names here, but there is a major bank that let's say you have two credit cards and they total like $30 of limit. Okay? And you owe nothing on them. There are some lenders that will factor in a minimum payment against that debt as if you leveraged it all. Okay?
Scott Dillingham:So for credit cards, they factor in 3% of most lenders, it's it's 3% of what's owing. But some of these lenders are gonna do 3% of the limit. So that means we're using 900 of artificial payments for the client's preapproval, which means their amounts that they can get are much smaller, Where we would, knowing that, we would partner with a lender that doesn't factor that in, to have your borrower qualify at the maximum leverage. You see what I mean? And I'm not gonna call out the bank, but it is a big bank and it's one of those banks that people just say, Oh, you bank there, Just go.
Scott Dillingham:Bring all your documents. Just go with them. It's easy. So I know it's a little more challenging to be like, hey, you should speak to an expert who has all of the lenders, not all, but, you know, as close to all of the lenders as possible. So you're getting the best information.
Scott Dillingham:Another example, child tax benefit. Right? Some of the lenders only use 30% of it. Some will only use 50% of it, while others will use 100. So right there, there's three different lenders with three different policies that we could get three different preapproval amounts for your borrower.
Scott Dillingham:So if I know they're trying to qualify for the maximum, I'm gonna leverage that and partner with the lender who understands this and can qualify your client, not using a 100% of their child tax benefit. So there's little tricks and tweaks. So I just wanna start off this week with that. Okay? Don't just let them go to the bank that is the path of least resistance.
Scott Dillingham:We will ask the client as well when we're working with them if they prefer the bank, but then they get access to us and our expertise. But when we start to show them where the other lenders are in comparison to where their bank, you know, would qualify them, what the rates might be, they're on it. They don't care anymore about going with their bank. So we've just done them a huge service by showing them what's out there. Anyways, looking forward to hearing from you next week.
Scott Dillingham:If you wanna work with us or any expert on my team, the link is below to refer your clients to book strategy calls or even you yourself can call us and we'll give you any information that you need about your clients and we'll work with you to help you to close more deals. See you next week.