ValueMags, marketing agency for magazine publishers understands that choosing whether to rent or buy a condo, house, and apartment or duplex can be a very hard decision that can affect the rest on one’s life. Even for small businesses like ValueMags, understanding what type of business space was best for them when they expanded was difficult. Were they going to expand fast or at a slower pace? Was a small space worth renting or buying? Purchasing a house and then not being able to meet the payments of the mortgage can be very stressful or buying any kind of building. Getting the maximum appraisal for a mortgage and living each day until the building is paid off by simply eating, working and sleeping has put many people into a depression. When approaching your future living arrangements, it is a wise idea to do comparisons of all of the possible places.
The initial situation when going to purchase/get a mortgage for anything is to choose a bank. There are commercial banks (type A) and there are online banks (type B). Online banks are good in the sense that the chances of someone getting a lower interest rate is higher since their main focus is profit. However, this definitely changes for business properties verses residential explains ValueMags executives. Since online banks have no building, not an “official” bank and all they have to pay is employees their expenses are a lot lower than that of commercial banks. Almost all phone calls for help services are virtual and therefore they do not mind giving away better interest rates since they know that their costs are low and people will find it easy to access (always in their pocket). That is a type B bank, when it comes to type A, such as RBC, Scotia and TD bank for Canada there are a lot more expenses.
They have many branches for people to create an account with so that there is at least one in each city in more populated areas and one not too far for non-populated areas. Since there are many branches the banks must pay either rent on the property if they don’t own it or pay it off if they do, they must pay all of their employees in every branch as well as pay for electricity and furniture to make the buildings presentable, commercial banks must also pay the different machinery that they have and more. In terms of systems ValueMags has to pay for, they have to pay for reading mobility systems, CRM, and all the technology associated to their magazine distribution. All of that to say that commercial banks are less lenient on mortgage rates but could be better to go with in the long run.
For more information about ValueMags’ processes, check out the ValueMags new blog which discusses all sorts of news from company news, to new magazines, to commentary on local, national, and international events.
