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Monday, 5 December 2016

Dream Home! Credit not perfect? Lease TO Own Option Available!
Beautiful 182 Sq.M. two story home for sale or LTO! Calgary, Everglade community SW. 3 Bedrooms, 2.5 bathrooms, den on main floor with French door, totally redone with all new stainless steel appliances. Hardwood floor throughout the main floor. Must see how nice is this home and have a great floor plan. Great location, easy access to ring road and 100 yards to Fish Creek Park. With a 10% down payment vendor will grant 3 years Lease To Own contract. Vendor is a mortgage broker, will assist with financing at appropriate time. $599,000  zmpadar@gmail.com or 403-616-9114



























Tuesday, 1 November 2016

What is a Mortgage Broker?

We are inundated constantly with so much information on so many topics that it can be exhausting to keep it all straight. Add this to the fact that realistically most of us only go through the mortgage process a few times in our lives so you only have to know it very briefly before getting back to real life. On top of both of too much info and not doing it often is the fact that a mortgage involves your home and you finances making it it a potential hotbed of stress. It really is no wonder that many Canadians are not totally familiar with what exactly a mortgage broker does and why they should even consider them. Let’s take a look and why you should give them a call next time you are in the mortgage process.
What is a mortgage broker? A mortgage broker is an individual who has taken their provincially administered course and passed an exam allowing them to deal in mortgages. From there they are watched forever by their provincial regulatory association to make sure your best interests all always protected. You as a consumer can file a complaint should you need to and I can assure you it is taken very seriously by these associations.
What do they do exactly
? They take your application and gather all the necessary documentation for the mortgage lender. They submit to the lender they see as having the best product for you and work as a go between you and the lender until they know you have full approval for the mortgage.Who pays them? Usually it is the banks and the mortgages lenders but in some cases you pay them directly though you would know this well ahead of time.  The commission a mortgage broker makes is budgeted for by these companies. It is a normal cost of business and can be paid to the broker or to the bank employee and the net effect is the same to you the consumer.
Why would you consider using a mortgage broker?
 They have access to a wide variety of mortgage lenders. Considering that every situation is slightly unique, it can be a relief knowing that if bank A says no to your application that there are many more the mortgage broker can present your application to without you having to make appointments with each.
What if you want a bank you know?
 Mortgage brokers deal with many of the main banks in Canada but often do a much higher volume than you doing just your own mortgage. They can get better rates and often faster turnaround
Are they safe
? You bet! This group is watched carefully by the regulators.
Aren’t they just for people with bad credit? 
Heck no!!  
  1. Self employed
  2. Owning more than one property
  3. Normal folks looking for their best mortgage
  4. Going through the separation process
  5. Investors
  6. Builders
  7. Credit challenges
  8. And on and on...

 Mortgage brokers have made the Canadian mortgage market competitive which means lower rates for you and more money in your pocket at the end of the day. According to a CMHC survey, approx. 51% of first time home buyers chose to go through a mortgage broker.  They know the pitfalls you need to avoid. Mortgage brokers are a great resource to save you money both now and down the road as well as saving you time and reducing your stress overall.  Considering your debt is the largest debt you will ever take on, it just makes sense to ensure you are getting the best mortgage rate and terms possible for your situation
Best assured, here we can give you the advice you need in a FREE session!

Monday, 17 October 2016

Stress test for new mortgages aka rates might go up soon?

THE FOUR CHANGES:  

1. The Mortgage Rate "Stress Test"  Effective October 17th, you're going to need to pass a tougher stress test when qualifying for any insured mortgage. This applies even if your down payment is more than 20% but your lender requires mortgage insurance. You can still avail of today's low interest rates. The government is saying you should qualify based on a higher rate. That rate would be the Bank of Canada's five-year fixed posted mortgage rate. As of September 28th, that rate is 4.64%.  What does this mean exactly?  *Any home buyer

that has less than 20% down payment will now have to qualify using the Bank of Canada's 5-yer posted rate regardless of what the product or term is chosen. So for instance, if you are getting 5-year fixed term today at 2.34% today, you will still have to qualify at 4.64% which is nearly double than your actual interest rate. This will significantly cut the mortgage amount you could borrow.   * Any home buyer or existing homeowner looking to purchase or refinance will be subject to the same qualifications above if their lender requires mortgage default insurance even with more 20% down payment or equity.  
 
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2. New restrictions for low-ratio mortgages  Beginning November 30th, there are specific criteria for any home buyer applying for a low ratio mortgage  The amortization (period of the loan) must be 25 years or less  The purchase price is less than $1 Million  Your credit score has to be 600 or greater  The property has to be owner occupied   


3. Capital gains exemptions for primary residences  Selling your primary residence is tax-free. You don't have to report it as income tax on your tax returns. When these changes come into effect, selling your primary residence remains tax free. But now it has to be reported to the Canada Revenue Agency.    This change is primary targeting foreign buyers who have been evading Canadian tax laws. They buy a home (as an investment), flip it, and sell it at profit without paying taxes. They do this buy saying it's their primary residence, even though they may not have lived there.   


4. Lenders and the risks they take  The government is telling the banks and lenders to take some of the risk. This mortgage rule change could to higher mortgage rates. Lenders can no longer rely on the government to cover mortgage defaults. They would take on some of the responsibility. This would encourage more prudent and careful mortgage practices. Ultimately it could lead to higher mortgage rates so that lenders can afford to cover themselves for defaults.

Wednesday, 5 October 2016

Reverse mortgages, learn about the facts

What is a reverse mortgage?
How does it work?
Advantages of a reverse mortgage!
Disadvantages of a reverse mortgage!
Where can you get a reverse mortgage?
How do you qualify?
Tips to keep in mind!
Before you make a decision, be sure you also consider:
Be sure you fully understand the terms and conditions of the contract before you sign it. By exploring all of your options, you will be better able to make the decision that best suits you.
Ask all of these questions before you commit to a reverse mortgage:
·        What are the fees?
·        Are there any penalties if you sell your home within a certain period of time?
·        If you move or die, how much time will you or your estate have to pay off the balance of the loan?
·        At your death, what happens if it takes your estate longer than the stated time period to fully repay the loan?
·        What happens if the amount of the loan ends up being higher than the value of the home when it’s time to pay the loan back?
For more information and get a FREE consultation session:

Tuesday, 4 October 2016

New mortgage rules comming in effect

 DLC Regional Mortgage Group Oct.04.2016.

Over the past few years we have seen a large number of mortgage rule changes. 
  •      -Maximum amortizations decreased from 40 to 25 years
  •      -Terms less than 5 years required a borrower to qualify at a higher interest rate
  •       -Refinances capped at 80% of a property’s value
  •       -Income for self-employed individuals had to be more verifiable
  •       -Increased down payment for homes over $500,000

And the list can go on and on. We have heard rumors since March of this year that another round of rule changes were coming through but we were not 100% on exactly what they would entail.
Why are they even worried about it you may ask? The reason is simple, they are heavily invested in our real estate market. CMHC stands for the Canadian Housing and Mortgage Corporation which is owned by the federal government.  They are issuing insurance policies that they are potentially going to have to cover losses on from tax payer’s money if/when people stop paying. 

1.      Mortgage Stress TestAs of October 17th, 2016 all insured mortgages, regardless of term or type, will be required to qualify at the bank of Canada posted rate.To put that in perspective:
  1. Family Income $80,000
  2. Monthly Debts     $500
  3. Property Taxes  $3,500
  4.  25 year term (Qualification rate today is 2.39% and after will be 4.64%)

    Today that family can buy a home worth approx. $393,000 but after the 17th that drops to $310,000. That is a large decrease to say the least.
    The rate you pay will not change, just the interest rate we have to use to qualify you for the loan.
    Safer LendingMortgages with a loan to value of less than 80% were not subject to the same stringent rules as those with less than 20% equity. As of November 30th, 2016 that will change and mortgages will all be subject to the same lending criteria.
2.      Closing Loopholes and Managing Tax Fairness
There is a proposed change to the tax laws on the table as well. They want to make sure that the Capital Gains tax exemption on a primary residence is not abused by either residents or non-residents buying and selling a primary residence within the same year.  This is in all likelihood an attempt to cool Toronto and Vancouver markets.
3.      Managing Risk and Protecting Tax Payers
The final piece in the announcement is a little bit unclear as to exact ramifications. Currently CMHC and the other mortgage insurers take on all the risk associated with mortgage default. They are planning to implement a consultation process on a policy option where mortgage lenders would have to manage a portion of their loss.  We will have to wait and see what exactly happens from here.

So there you have it. Getting a mortgage just got even harder and it doesn’t matter if you walk into your trusted branch or go through a mortgage broker. The rules have changed for us all.
I cannot stress enough the necessity of making sure you speak to a well-qualified mortgage professional before you make any decisions about buying or selling in case you are one of the folks affected by these changes. I will keep you up to date on any changes which come down the road.

Saturday, 17 September 2016

Game of mortgages, this you can not afford to lose

What if I tell you that you will be able to save over $15,000 on a $300,000 mortgage amortized over 25 years during a 5 year term? Would it grab your attention and would be willing to get a FREE assessment of your situation?
Here are the reasons you should get well educated on mortgages: 
  • save thousands on interest by getting the best possible rate
  • grab the mortgage product suits your circumstances
  • have a wide variety of lenders to pick from
  • chose the lender makes you to make changes to your mortgage
  • take a mortgage from lender does not want to penalize you paying out your mortgage early
  • have a lender with flexible options and willing to help
  • banks are not the only options, there are many others available for only by brokers
  • many other reasons to talk to mymortgagepros.com 
Not all mortgage brokers are the same, just like in any other professions, you must find the one with experience in creative solutions, tight connections with lenders, not only the obvious choices, but the lenders available only by mortgage brokers. Lenders battling for your business, it is only a game for them, but it is a game you literally can not afford to lose.