Did you know that even if you are not a First Time Buyer you could still be exempt from Property Transfer Tax? BC's…
Today's interest rate announcement from the Bank of Canada was a good one for those with variable rate mortgages!For…
The Bank of Canada keeps the overnight interest rate the same for the 4th consecutive meeting!
Below is a snipet from a Globe & Mail article over the weekend explains how homeowners in Canada have been spoiled with fixed in the range of 2.5-3% in the recent past. Now that these mortgages are coming up for renewal, the shock of what the new payment will be can be alarming. Re-allocating hundreds of dollars to a mortgage payment can seem impossible!
SOME TIPS: shop renewal interest rates, consider a variable rate mortgage, extend your amortization if possible, and if your mortgage is insured some banks offer MUCH more competitive rates!
Ask me for more details if your mortgage is coming up for renewal!
What is a private mortgage?
Yes Wikipedia you are right! When you do not qualify at a regular financial institution such as a bank or credit union,…
Client: “What is your rate?”
There has been regulatory changes announced by the Office of Superintendent of Financial Institutions (OSFI) and they will be implemented for January 1, 2018.
The changes will drastically decrease how much a borrower qualifies for on a refinance or a purchase with 20% down payment or more. See the 3 changes outlined below and contact me with any questions!
I recently wanted to share with my buyers how smart they were by contacting me and getting a pre-approval and rate hold done. They have been requesting to extend the rate hold for the last 8-9 months as they looked for a home and went into several multiple offer situations, and unfortunately took a few times before they got an accepted offer. We worked together with the changing rate environment throughout the year, and now they are soon to be home owners! We looked at the current interest rates versus their pre-approval rate hold.
The rates recently went up, and they are savings over $7500 in interest alone during their 5 year term! And the principle of their mortgage will be $2619 lower than it would have been with current rates!
Be sure to work with a mortgage broker that will work with you even before you have an accepted offer! This is the time it counts as you never know when rates will spike!
The variable rate mortgage prime rate went up by 0.25% at banks across the country after the Bank of Canada (BoC) announced they are increasing their interest rate by 0.25% yesterday.
DLC’s chief economist, Dr. Sherry Cooper, states how the Canadian economy is on a tear, dramatically outperforming the U.S. The BoC is concerned with increasing household debts and welcomes a slowdown in housing in borrowing activity.
October 25th is the next interest rate announcement by the BoC.
Have you been approved for a mortgage and waiting for the completion date to come? Well, it is not smooth sailing until AFTER the solicitor has registered the new mortgage. Be sure to avoid these 10 things below or your approval status can risk being reversed!
1. Don’t change employers or job positions
Any career changes can affect qualifying for a mortgage. Banks like to see a long tenure with your employer as it shows stability. When applying for a mortgage, it is not the time to become self employed!
2. Don’t apply for any other loans
This will drastically affect how much you qualify for and also jeopardize your credit rating. Save the new car shopping until after your mortgage funds.
3. Don’t decide to furnish your new home or renovations on credit before the completion date of your mortgage
This, as well, will affect how much you qualify for. Even if you are already approved for a mortgage, a bank or mortgage insurance company can, and in many cases do, run a new credit report before completion to confirm your financial status and debts have not changed.
4. Do not go over limit or miss any re-payments on your credit cards or line of credits
This will affect your credit score, and the bank will be concerned with the ability to be responsible with credit. Showing the ability to be responsible with credit and re-payment is critical for a mortgage approval
5. Don’t deposit “mattress” money into your bank account
Banks require a three-month history of all down payment being used when purchasing a property. Any deposits outside of your employment or pension income, will need to be verified with a paper trail. If you sell a vehicle, keep a bill of sale, if you receive an income tax credit, you will be expected to provide the proof. Any unexplained deposits into your banking will be questioned.
6. Don’t co-sign for someone else’s loan
Although you may want to do someone else a favour, this debt will be 100% your responsibility when you go to apply for a mortgage. Even as a co-signor you are just as a responsible for the loan, and since it shows up on your credit report, it is a liability on your application, and therefore lowering your qualifying amount.
7. Don’t try to beef up your application, tell it how it is!
Be honest on your mortgage application, your mortgage broker is trying to assist you so it is critical the information is accurate. Income details, properties owned, debts, assets and your financial past. IF you have been through a foreclosure, bankruptcy, consumer proposal, please disclose this info right away.
8. Don’t close out existing credit cards
Although this sounds like something a bank would favour, an application with less debt available to use, however credit scores actually increase the longer a card is open and in good standing. If you lower the level of your available credit, your debt to credit ratio could increase and lowering the credit score. Having the unused available credit, and cards open for a long duration with good re-payment is GOOD!
9. Don’t Marry someone with poor credit (or at lease be prepared for the consequences that may come from it)
So you’re getting married, have you had the financial talk yet? Your partner’s credit can affect your ability to get approved for a mortgage. If there are unexpected financial history issues with your partner’s credit, make sure to have a discussion with your mortgage broker before you start shopping for a new home.
10. Don’t forget to get a pre-approval!
With all the changes in mortgage qualifying, assuming you would be approved is a HUGE mistake. There could also be unknown changes to your credit report, mortgage product or rate changes, all which influence how much you qualify for. Thinking a pre-approval from several months ago or longer is valid now, would also be a mistake. Most banks allow a pre-approval to be valid for 4 months, be sure to communicate with your mortgage broker if you need an extension on a pre-approval.