We are now 3 weeks into 2012 and continue to get inundated with predictions and commentary from everyone on what course this year is going to take. Since the financial meltdown of 2008 and the close to collapse of the world’s financial system, we have seen new shifts in the world at an unprecedented pace. With this continued economic turmoil I thought it timely to share with you again one of my very favourite stories. It truly is amazing how our attitude determines our outcome. And while we can all have opinions, no one knows the ultimate direction. I personally feel it is up to each one of us to use our intellectual capital and belief in ourselves to create the best year in 2012 and let the rest of the events fall where they may.
Please see below for my Economic Update and my favourite story… How's Your Hot Dog Business Doing these Days?
I wish you a productive and successful January.
As expected the Bank of Canada announced this morning that the Bank Prime lending rate will remain unchanged at 3%. This continues to keep us in the lowest fixed interest rate environment in Canadian history. Looking back over the last 25 years, its amazing to see the continued decline in mortgage rates making home ownership in this country a reality for so many more people. In 1991 for example, the average 5 year fixed rate mortgage was 11.16%, in 2007 we dropped to an average of 6%, and now we continue to enjoy a 5-year fixed rate mortgage average of 3.19-3.5%. With stable low unemployment rates and incredibly low mortgage rates, I predict we will continue to see stability, affordability and growth…. At least in my business! (tongue and cheek, this leads into my story…)
How's your business doing these days?
"A man sold hot dogs at the side of the road. He was proud of his hot dogs and made a good deal of money selling his hot dogs. Every day, he would put out his signs, go out and yell from his hot dog stand, "Come and get your hot dogs! The best hot dogs in town!" And people came from all over to eat his hot dogs. He would have lines of people all day long. He loved selling hot dogs and believed they were delicious, fresh, and the best. He talked to his patrons and was grateful for them. And they loved this man.
Anyway, the man saved enough money to send his son to college and one day, the son came home and asked his dad what he was doing during the day. The man said that he was still selling hot dogs and business was booming. The son looked at him and said, "Daddy, what's the matter with you? Don't you know we're in a recession? No one is going to buy hot dogs. I can’t believe you're wasting your time and money trying to sell hot dogs. You need to cut your losses and close that stand."
Well, the man believed his son; after all his son was educated, in college, and certainly knew more than he. The man became a bit despondent, but did not want to close his hot dog stand because people came to him every day. They depended on him for their hot dogs. He continued to go to his hot dog stand, but he no longer put out his signs nor yelled about his great hot dogs; he did not talk and laugh with his patrons as much. "We're in a recession," he thought, "What is there to laugh about?" Little by little, the patrons stopped coming and the man sold fewer and fewer hot dogs. Then no one came and he had to close his hot dog stand. He said, "Well, my son was right."
Attitude is often times more important than fact. The man did not know that the country was in a recession and, therefore, continued to behave in a way which generated a profitable business. Once his attitude changed; his behaviour changed and then his business changed.
If you know of anyone that would like to talk with me regarding the current rate changes please feel free to pass along my number, I'm here to help.
Your Friend in the Mortgage Business,
Jared Dreyer, AMP
About Dreyer Group Smiles
Dreyer Group Smiles is a program dedicated to giving to facilities that provide safe and transitional housing to children and youth in the Fraser Valley of British Columbia. By providing funds to these programs, Dreyer Group will make a meaningful difference to kids who otherwise may not have a roof over their heads, or hope for a bright future.
Dreyer Group hopes to expand this effort through their clients and business partners. In addition, they plan to raise additional funds through annual events and corporate fundraising initiatives. Dreyer Group is working closely with the Salvation Army to allocate these funds to the children and shelters.
About Dreyer Group Mortgages, A Member of the VERICO Brokers Network
As a senior mortgage consulting team with extensive experience in the financial services industry and thousands of happy clients throughout the Lower Mainland, we understand what it takes to build long-term relationships through service and expertise. As an independent brokerage, we are not restricted to one financial institutions mortgage options. We provide the best range of financing solutions by accessing over 40 lenders and hundreds of products coast-to-coast.
Each VERICO member is an independently owned and operated business.
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