PRE QUALIFY FOR A MORTGAGE IN 60 SECONDS: BUYER BEWARE

Pre-qualifying

With the recent regulation changes in Canada, being approved for a mortgage has become a little more difficult than to pre qualify for a mortgage in 60 seconds. So why are we receiving contradictory information about how quick and easy getting a mortgage can be? Transparency, as we all know, is not a word that would be dominantly used to characterize the banking world, and in many other industries unfortunately.   We thought it was time to unveil some of the misleading interpretation that might have been adopted due to recent promotional content within our industry. Technology is evolving with…

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What is the biggest misconception with using a Mortgage Broker?

Residential Mortgage Lenders

What is the biggest misconception with using a Mortgage Broker? One of the biggest misconceptions of using mortgage brokers is that brokers place their residential mortgages with private lenders and not banks.  That is misguided information often passed down to borrowers. There are 3 types of residential mortgage lenders that borrowers are placed with. What are the Different types of Residential Mortgage lenders? ‘A’ Lenders – ‘A’ Lenders are the big name Banks, Credit Unions and Monoline lenders.  The big name Banks in the broker channel are Scotia, TD, and ATB.  Brokers in Alberta can deal with Servus Credit Union and First Calgary. There are different Credit Unions that…

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8 Things to Consider Before you sign your Mortgage Renewal

Mortgage Renewal

8 Things to Consider Before you sign your Mortgage Renewal Approximately 47% of mortgages renew this year. There are several things to consider before you sign your next mortgage renewal! Have you explored all your options? Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term. But while this may make sense in many cases, your family or financial situation may have changed over time.  We can look for opportunities that could better meet your needs. Are you comfortable with your payments? If you’ve been feeling financially strapped each month making your mortgage…

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CMHC premiums increase for Homebuyers

CMHC premiums increase

CMHC premiums increased on March 17, 2017. Mortgage insurance or mortgage default insurance, commonly referred to as CMHC insurance, protects the lender in the case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%. This CMHC premiums is added onto your mortgage balance and factored into your monthly principle and interest payment. How Much more will I be paying for my Mortgage Default Premium? Say you are purchasing a $300,000 home with 5% down ($15,000), 5 yr fixed rate is 2.69%. Before March 17, 2017: Premium:  3.60%…

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New Rules Limit First Time Homebuyers

Last week  (Oct. 2016),  the Federal government announced tighter mortgage rules that will affect home buyers, especially First Time Homebuyers. The tightened mortgage lending rules will limit the amount many Canadians can borrow to help ensure that when interest rates rise, they’ll still be able to make their payments. These new rules take effect Oct 17, 2016 Under the new rules, there is a stress test for all home buyers that are putting less than 20% down. The stress test is where borrowers must qualify for their mortgage using a higher interest rate than they will actually be paying on their mortgage. Currently the…

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Types of Insurance when buying a home

Home

4 Types of Insurance Related to your home MORTGAGE DEFAULT INSURANCE is an added premium into your home mortgage. Mortgage default insurance is required for those with a High-Ratio mortgage (less than 20% down) or borrowers with higher risk. This policy is in place to protect lenders from risk of borrower default. The 3 mortgage default insurers in Canada are CMHC, Genworth & Canada Guaranty. You purchased a big investment and you are going to want to insure the building & contents with FIRE & HOME INSURANCE.  Fire insurance policies pay out the mortgage lender if the house burns down. Mortgages won’t fund…

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Downpayment Options

Downpayment options

What Are My Downpayment Options? One of the biggest challenges of home ownership is saving the required downpayment. Your lender will be looking for a minimum 5% down payment on your property. There are generally 5 options available. Your down payment can come from more than one source. Using Your Own Savings or Investments One of the most straight forward down payment options is your own savings or investments.  You will need to provide recent 3 month bank statements to show the history of the savings.  It is required that the full amount of  savings for your down payment must be in…

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Beware of Mortgage Penalties when Rate Shopping

Penalties

Understand your Mortgage Penalties when Rate Shopping is extremely important! Mortgage rates are at an all time low so it’s important to understand the penalties if you break your terms. Rates for a 5 year fixed mortgage have been hovering between 2.59%-2.99% for several months now. When a client comes to see me for a new mortgage, whether it is for a purchase, refinance or their existing mortgage is up for renewal, I will give them the best rate available. I put them in a product that is going to meet their needs and what is going to save…

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Why I check my Credit Rating every 6 months

Credit rating

When is the last time you checked your own credit rating? I’ve made it a habit to check my credit bureau every 6 months or when I close a loan or credit card and here’s why. I purchased a new computer in the fall.  I had the money to buy it out right but decided to use the 0% financing & no payments for 3 months.  The balance was paid on the very last day and received a stamped confirmation of payment. Two months later, I receive a call from CitiFinancial that I owe $106 in late interest.  I corrected…

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House Hunting: 5 Tips to help with the Homebuying Process

House Hunting: 5 Tips to help with the Homebuying Process

There are so many options when you start the house hunting process. It can be overwhelming! Here are a few house hunting tips to help make the process a bit easier: 1)  Get Pre-approved First of all, the #1 thing in home buying is that you need to know how much you can afford before you go house hunting. This saves grief and frustration from looking at homes that are beyond the reach of your budget. In addition, it also puts you in a better position when making a serious offer. There is a difference between being pre-qualified and pre-approved. When you are pre-qualified, a mortgage…

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