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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 
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.

Friday, 9 September 2016

Reasons Why You Need a Mortgage Pre-approval

Posted by Joe Samson on Thursday, September 8th, 2016 at 1:57pm. in Twitter re-posted here by MortgagePRO Ltd. when you need a mortgage, you need a pro 

When making financial decisions that will heavily impact your life, such as buying a home, it’s important to be informed before jumping into a decision and making sure ahead of time that you are ready to buy a home.
This means asking questions and using all resources available to understand more about the commitment of purchasing a property. To gain this understanding, the first (and arguably the most important) step is to determine how you will pay for it. While paying all cash is ideal because it eliminates the need to pay interest, this isn’t something most people can do. This is when the majority of home buyers turn to obtaining a mortgage so they can secure the funds they need to purchase a home.
Fortunately as a buyer you have many mortgage options available to choose from. You will find that each of these are different, as some will require more money down while others may have strict requirements dependent on their financial history. To determine which is best for your situation, getting pre-approval for a mortgage is crucial. In fact, doing this before you ever look at homes is highly recommended by real estate agents and it can even help streamline the entire buying process.
With awareness of the fact that you need to get pre-approved for a mortgage, the next step is to understand more about the process of how to go about getting a mortgage pre-approval. The following guide will help you get started and anticipate what to expect. The information you learn through this can help you have a more enjoyable experience and smoother transaction in the future.
Reasons for getting a mortgage pre-approval:
1.       Negotiate Better Terms & Price
2.      Build Trust & Win Multiple Offer Situations
3.      Take Possession of Your New Home Faster
4.      Get Your REALTOR®’s Attention & Priority
5.      Seller May Request Proof of Financing
6.      Establish a Laser Focused Search 
7.      Avoid Disappointment and Frustration
8.      Interest Rate Increase Protection
What is a Mortgage Pre-approval?
Each lender has a specific set of guidelines that they use to determine whether a borrower will get approved for a mortgage. These guidelines are more in-depth than those associated with a pre-qualification, as that only involves a superficial look at you as the borrower. Due to the fact that requirements can be so different with each lender, it’s easy to see why doing your own calculations is not recommended. An official pre-approval means that the lender has gone through your financial information and qualified you as a borrower. This will give you a more accurate idea of what your interest rate will be, as it will be based on your specific information as a borrower.
It’s always recommended to get pre-approved before you ever start looking at homes so you have a more realistic and accurate idea of what you can afford. In addition to saving money, it’s one of the most beneficial things you can do as a responsible buyer. The length of time it takes to get pre-approved will is usually no more than a few days once you have provided all of the supportive documents
Most mortgage pre-approvals and interest rate holds are guaranteed for a period of 3-4 months, which is why it’s recommended to start the process up to 120 days before you’d like to purchase a property. By taking care of this early you will be able to look at homes with more peace of mind and avoid the potential stress of dealing with offer negotiations at the same time.
Before filling out any paperwork, it’s important to gather financial documents that support your ability to afford a home. This may include paperwork proving income, proof and source of down payment funds, asset information, and liability information. In addition this, you will need to provide personal information such as your social security number or SIN number, so the lender can review your credit score.
How Do I Get Pre-approved for a Mortgage?
To get the pre-approval process started, you will need to speak with an experienced mortgage broker (or lender) who can help you. If you aren’t familiar with any professionals you can rely on, then ask your REALTOR® for recommendations. Once you meet with the mortgage broker ask them questions to help you learn more about their rates and programs. If you aren’t interested in interviewing different lenders, then go online and research banks or mortgage brokers.
...if you work with a real estate agent who doesn’t mention getting a pre-approval letter at all, then they may not have the expertise that’s so important in this type of profession.
While doing this research is pretty straight-forward, it’s important to keep awareness of lenders that make things seem “too easy”. If you speak with any lender that claims they can provide you with a pre-qualification letter without taking a look at your financials, do not go with them. Also, if you work with a real estate agent who doesn’t mention getting a pre-approval letter at all, then they may not have the expertise that’s so important in this type of profession.
How Much Mortgage Can You Afford?
With most buyers, there’s a considerable difference between what they think they can afford and what they actually can afford. Getting the mortgage pre-approval will point you in the right direction, as it will give you the best idea of what you can realistically afford. However, it’s important to be aware that some lenders approve buyers for less than they want to spend while others will approve buyers for more. This is when it’s important to be self-aware of your finances and what you’re genuinely comfortable with spending on this significant purchase.
The hard numbers you receive from the lender will be a great starting point that allows you to narrow down your search for homes. Knowing your price range will give you an idea of how many rooms you can afford, which area you might want to live in, and if you can genuinely afford what you want. For most people, this is when shopping for a home becomes more real and they can finally picture themselves as homeowners.
By taking the time to get pre-approved, you will ultimately be helping yourself avoid many pitfalls that first time buyers run into. For instance, knowing your financial position can help you avoid looking at (and falling in love with) homes that you simply cannot afford. When you’re ready to start looking, analyze the approval letter and monthly payment information provided by your lender. Once you’ve determined the maximum that you’re content with, the down payment and closing costs can be calculated so you can look at homes within your ideal budget. 
Obtain a Mortgage Pre-approval Letter
A pre-approval letter is contingent on you as the borrower keeping your credit score and finances the same until you close. This is why most lenders warn their clients against making large purchases or taking out new credit cards, as these types of transactions can affect their credit score and financial situation. As long as they do this, the pre-approval letter, FREE advice will play an important role in the buyingprocess. Sellers will appreciate the fact that a qualified buyer is looking at their home, and if you end up competing with another buyer, this could be what helps you secure the property. The pre-approval essentially shows that you are qualified and serious about purchasing.
Negotiate Better Terms & Price
One common and frustrating situation for sellers is dealing with buyers who aren’t qualified to buy their home. This wastes time because it generally results in the deal falling through and other potential buyers moving on. As a pre-approved buyer, sellers will appreciate the fact that you’ve proven your financial backing. Beyond that appreciation, this approval can act as a negotiation tool because you’ve already gone through the work of proving your ability to buy. This entices the buyer to negotiate with you, as they won’t have to worry that the deal will fall through because you won’t get approved for a mortgage.
Your pre-approval may also persuade the seller to accept your offer rather than a higher one from a buyer without the same approval. In addition to this, an eager seller may be willing to change their terms of the sale due to the fact that your purchase would be a done deal. With the pre-approval being such a strong negotiation point, it’s easy to see why top real estate agents request that their clients take care of this before they are shown properties.
Build Trust & Win Multiple Offer Situations
The real estate market is always changing, therefore you can never anticipate whether or not a home is going to attract offers from multiple buyers at the same time. However, it’s important to be prepared just in case this situation does occur. A pre-approval letter from your lender is just what you need, as this will make you stand out. Sellers see this letter as security, not only because you have proven that you can obtain financing, but also because you’ve proven that you’re serious about buying the property. As a result, you will be one of the top candidates they consider accepting an offer from.
Take Possession of Your New Home Faster
Finally your offer has been accepted; what next? If the home inspection turns out to not show any issues, then you’ll likely anticipate moving into your new home. While packing your bags is a great way to get started, there will be some waiting time before your new keys are in hand. Most of this wait time is the seller deciding whether or not to accept your offer, which will generally be minimized with your pre-approval letter. Even more beneficial is the fact that your bank will already have the paperwork and documents that are needed to approve the loan, so you can close on the home as quickly as possible.
To gain insight on what happens after your offer is accepted, the lender will need to have all your information in order to determine if you can afford the property. Having already done this legwork to get the pre-approval, your lender will be able to move on to requesting an appraisal on the property. Once everything is in order, you will finally be able to close on the home, likely without having to wait the 45-60 days that most average buyers do.
While choosing to get pre-approved for a mortgage is your decision, it’s a smart and beneficial move on your part. If you are serious about buying, it’s the very first move you should make. A top real estate agent will tell you the same thing, making it something you don’t want to wait to take care of.
Get Your REALTOR®’s Attention & Priority

Getting pre-approval for a mortgage is not something that is guaranteed. Even if you think your finances are in order and you’ll be approved for a specific amount, you won’t know for certain until you have that letter in hand. To avoid frustration and stress for you, your REALTOR
®, and the seller, don’t ask to be shown properties until you’ve taken time to get your pre-approval taken care of. Real estate agents want to spend quality time showing you potential homes you could buy, not homes you may only dream of living in.
If you get pre-approved for a mortgage, you will have the attention of your real estate agent if they are caught between deciding which client they can make time for. By showing that you are ready and able to buy, your real estate agent will know they aren’t wasting their time or yours by showing you properties.
Seller May Request Proof of Financing
There are many additional reasons, aside from time savings, why real estate agents request their clients obtain pre-approval before showing them homes. One of the most common is because the seller often requires it, as they don’t want non-qualified buyers walking through their home. This is most common with luxury real estate, although this seller preference is seen with budget-friendly homes as well. For these reasons, don’t take it personally when you are requested to have pre-approval done before you’re allowed to view a home.
An added benefit of having this done is that you’ll be in a better position to present an offer on a home that you would like to buy. Sellers take buyers who have pre-approval letters readily available much more seriously because they have shown their ability to pay. Without this, the seller would never know if you would be able to get financing for their home or if the deal with go through.
Establish a Laser Focused Search
You’re ready to buy and don’t want to waste time looking at homes that may be outside of what you can afford. By taking care of financing before you search, you’ll have an accurate idea of the amount you can spend on a home. This is due to the fact that your lender will analyze bank statements, pay stubs, your credit report, and all other necessary financial information to determine what you can borrow. With that information you can establish a much more accurate price range so you can search for homes you can afford with confidence.
One additional highlight of knowing your budget is the fact that you will be able to narrow down your options for properties. This will give you a limited selection to choose from so your search can be expedited. Another advantage of knowing how much you can spend is that you will be less likely to find properties you like but cannot afford. You will only see homes that fit in your budget so the entire buying process is overall more enjoyable and efficient.
Avoid Disappointment and Frustration
When you think about applying for a pre-approval, you may be intimidated by all that’s involved. From digging out your tax returns to proving your income, it can be a lot to take in at once. However, this shouldn’t be a reason to postpone doing the pre-approval until you actually find a home that you like. To avoid disappointment and frustration, you should embrace your inner-strength and put all of your documents together. Once you have done this, you’ll likely find that the process isn’t as intimidating as you thought it would be.
After the application is completed and you’ve been pre-approved, you will know exactly what your realistic budget for a home and taxes is. This means you won’t waste time looking at listings that are far outside of your budget, such as homes that cost $400,000 whereas you’re only approved for $350,000. Ultimately this saves you from disappointment when home buying, making it clear why real estate agents request you do this from the very start. By doing something as simple as applying for pre-approval now, you will do yourself a great service that will make shopping for a home easier down the road.
Interest Rate Increase Protection
Most pre-approvals for mortgages provide buyers with a 90-120-day rate guarantee to protect them in the event that rates increase when searching for a home. This essentially allows you to lock in a rate so you can shop for homes knowing you won’t see an increased rate surprise when you’re ready to buy. However, if interest rates decrease while you’re shopping, most lenders will honour that rate instead. If no other reason compels you to obtain a pre-approval, this “lock in advantage” may be just what does.
Final Thoughts

Buying a home is a huge financial decision and therefore should be treated with careful consideration. Real estate agents understand this, which is why they are likely to request their clients take care of this before they are shown homes. Walking through properties before doing so will be pointless as well as a waste of time for both you and your agent. If you are serious about buying, then prove it by obtaining your pre-approval as soon as you can. Once you know how much you can afford, you’ll find that buying a home is less stressful and you’re able to enjoy searching with confidence.

Tuesday, 16 August 2016

Low Rate Mortgages - A massive impact on your overall financial health

Landing up in the dream house at low rate mortgages is the ultimate aim for many. Getting the right deal at the right time can influence your financial situation in the near future. Before deciding to purchase a house, it is advisable to compare between the mortgage rates that are currently available in the market.
As market research suggests, the mortgage rates for the houses are at a historic low in the year 2016. Coming off as really good news for people planning to buy a house, it is high time that people start consulting the professionals and get their help before fixing the mortgage rate.

Landing up a low rate mortgage

Market experts, after thorough research have been stating that, it is a good time for people to start investing in real estates. They also state that, the rates might work in favour even if they wait for some time. All in all, the time is ripe for you to invest in the dream house that you have long wanted.
Before you decide how, here are few steps that you need to take before signing on the dotted lines for the mortgage deal.

  • Compare the rates that have been put forth to you
  • Make changes to your credit score to sell them up
  • Start saving up to increase the down payment you wish to pay
  • Decide upon the time period of your stay in the house

What are credit scores?

Credit scores of a person will give an overview of the financial worthiness of the person. Realtors, banks, credit card companies and lenders consider the credit score of the person before moving ahead to make a business with them. If they feel that the credit score of the person works well for them, they would consider dealing with them. Many of the mortgage brokers in Calgary have been emphasising the need for good credit scores for their clients. It has been well established that, if you plan to apply for a loan to buy the house, a good credit score would lead to affordable and better interest rates. Loan options tend to grow big with higher credit scores.

Debt-income ratio in mortgages

People who lend you money calculate what is called as the debt-income ratio. According to this, the mortgage lenders would be able to measure the capability of an individual to pay monthly instalments to repay the debts. This is done by taking in the annual and the monthly income of the individual. You would be able to land up with best rates mortgages if your debt-income ratio turns out to be good.

Getting the right mortgage broker

Getting affordable and better low rates mortgages to people have been the work of many of the mortgage brokers in Calgary. Anyone can advice you on choosing the mortgage rates but only a professional like Mymortgagepros can help you in getting the right mortgage rate for the house you have been looking for. Choose from the best brokers in Calgary if you wish to get down with this for a long time. Give a call and book and appointment for a free consultation.


Lower mortgage rates can be fixed only by the professionals and by those who are well versed with the system. Get the help of the best mortgage brokers in Calgary and ensure a safe future for yourself today.

The experienced mortgage brokers of MortgagePRO Ltd. have access both institutional and private lender funds for the leading edge in home financing and refinancing.
Call Us: 403-253-2022 or Email Us:

Friday, 29 July 2016

First time home buyers? Tips to protect from Contingencies and Disclosures

Buying a home is a dream for many. Getting the right house with the hard earned salary requires proper planning and guidance. One has to be really careful in making sure that they get the house for the money’s worth and has to finish many formalities in order to finalise the deal on the house. There are many forms of contingencies and disclosures that have to be in order to make sure that you do not spend money than it should be spent.

All the first time home buyers need to be extra cautious about the deals and the transactions. They are generally advised to get the help of the professionals who have some experience in the field. Since this deals with a lot of money, it is always better to get the help of some experienced person who would be able to guide you in finalising the deal after making sure that you do not face any threat from the disclosures or the contingencies that follows.

What are the contingencies and disclosures?

Contingencies are the set of deals that are struck between a buyer and a seller. This is called as the “If-Then” deals. For instances, the buyer would have a deal with the seller of the house that, “If” I am able to sell my current property, “then” I would buy the property from you. These are included in the purchase contract and some can be controlled and the others cannot be. Some common contingencies that have to be in order are:

  • Finances: This deals with the scenario where the buyer has to take steps to obtain finances for purchasing the property. If he/she fails to do so, then the buyer cannot be penalised in any way for being unsuccessful in qualifying for the home loan.
  • Home inspection: The seller might fix a price in the deal for the house, but the buyer must get the home inspected by a qualified home inspector to make sure that the deal is set right. All the repairs and remodelling the house needs would be verified here. 
  • Selling the current house: This contingency state that, the deal can be finalised based on the sale of the current house that the buyer has possession over. If the deal is unsuccessful, the seller can back out from the deal.
The Disclosures deal with the defects and the environmental hazards that the house might potentially have. The buyer must be thoroughly informed about the same before negotiating the deal.
Some common disclosures are:

  • Standard disclosures: In this, the seller provides a list of the items that might be missing from the house like the mechanical parts and other such major issues. The buyer must verify the whole list completely. 
  • Hazard zones: Few properties might have been built on zones that are prone to earthquakes, fires, floods and other natural calamities. The buyer must get the area checked for such cases.
  • Paint used: Seller must give the full detail about the composition of the paint that has been used. The buyer must be given a time of 10 days to conduct tests to check the lead composition in the paint.

These contingencies and disclosures are to be followed closely since a small mistake can lead to the loss of huge amounts of money.

The experienced mortgage brokers of MortgagePRO Ltd. have access both institutional and private lender funds for the leading edge in home financing and refinancing.
Call Us: 403-253-2022 or Email Us:

Friday, 15 July 2016

Government wants lenders to tighten underwriting on residential mortgages

Last week’s open letter from the Office of the Superintendent of Financial Institutions (OSFI) to Canada’s big banks is a better economic bellwether than the Bank of Canada’s announcement to hold interest rates steady, according to MortgagePRO Ltd.
Green said the federal government can’t use its go-to of raising interest rates to stem a hot housing market because the overheating is related to two isolated real estate markets -- Vancouver and Toronto -- and the rest of the country needs affordable lending rates due to an “unsettled” economy.
The Bank of Canada is relying on fiscal stimulus from federal infrastructure spending and the Canada Child benefit to boost growth in the third quarter, according to Scotiabank economists in in a note to clients .
The OSFI warns if Canada’s big banks don’t tighten up mortgage lending requirements for locals and foreigners, an already shaky economy could become even shakier.
“The current macroeconomic environment in Canada is characterized by elevated financial risks and associated vulnerabilities for Canadian financial institutions. Persistently low interest rates, record levels of household indebtedness and rapid increases in house prices in certain areas of Canada (such as Greater Vancouver and Toronto) could generate significant loan losses if economic conditions deteriorate.”
Green added the OSFI, in place to supervise and regulate federally registered banks and insurers, trust and loan companies, and private pension plans, has keyed in on foreign lending as a big problem. Specific areas warranting increased attention include income verification, non-conforming loans, debt service ratios, appraisals, loan-to-value ratio calculations and institutional risk appetite.
Green said a lot of this has to do with different rules that apply to foreigners when it comes to getting a mortgage either in Canada, or through an international bank.
“They want better income verification including sources that are outside of Canada. So that means some of the programs for non-residents which are actually much easier to obtain mortgage financing, instead of someone who lives in Canada that has a job here.”
This is all quite interesting given the context, he added.
“A number of years ago the only reason the major banks created these non-resident or ‘new-to-Canada’ programs that are more lenient than regular programs is due to the government insisting that the banks have them.”
- with files from Albert Van Santvoort

Monday, 11 July 2016

Mortgage insurance, is it a must or smart move?

By Hometrust
Mortgage default insurance is one of those things that many home buyers don’t often think about when purchasing their new home. But if you don’t have at least 20% of the purchase price available as a down payment, you will need to purchase this form of insurance before you can arrange financing. In this Home Trust Mortgages Blog post, we’ll discuss what you need to know about mortgage default insurance.
Many home buyers, especially those purchasing their first home or those buying in one of the country’s more in-demand areas, often have less than 20% of the purchase price available as a down payment. In markets like Toronto and Vancouver where the average price of a new home is now well above $500,000, a 20% down payment easily exceeds $100,000. This is not an insignificant amount, and it is understandable why many fall short of this 20% down payment.
Conventional Mortgage Versus a High Ratio Mortgage
A down payment of 20% or more means you can arrange for a conventional mortgage. For the lender, this means the property has sufficient equity to protect the lender from a shortfall should the borrower default on the mortgage. A higher down payment also means the borrower has a greater personal investment in the property making them less likely to default.
For those with at least 5%, but less than 20% of the purchase price available for a down payment, it is still possible to arrange a mortgage, but this will be considered a mortgage. The higher loan-to-value (LTV) percentage of a high-ratio mortgage means there is less equity available to protect a lender from losses in the event of a default. To ensure lenders are able to provide mortgages to buyers with smaller down payments while still protecting the financial institution from the greater risk that comes with a high-ratio mortgage, separate mortgage default insurance is required.
While having to obtain mortgage default insurance does add to the cost of purchasing a new home, it also make it possible for those with limited savings – particularly first-time buyers – to get into the market sooner.
Mortgage Default Insurance Providers
Home Trust works with three approved mortgage default insurance providers. The Canada Mortgage and Housing Corporation is a crown corporation and is the largest provider of mortgage insurance in Canada. Home Trust also accepts insurance guarantees from Genworth Canada and Canada Guaranty.
It is the lender that actually arranges and pays for the mortgage insurance, but this cost is typically passed to the borrower and is incorporated directly into the mortgage payments. Insurance premiums are based on the amount borrowed and the down payment. To qualify for mortgage default insurance, the following conditions must be met:
·         Minimum 5% down payment
·         Single-family dwelling or two-unit building
·         Total monthly housing costs not to exceed 32% of gross monthly income

·         Total debt load not to exceed 40% of gross household income

MortgagePRO is one of the best choices getting a mortgage when you purchase or refinance, remortgage your home. We provide low, best possible rate mortgages with the best mortgage products available. Free advise is just the beginning as we believe the educated buyer has a better chance to save and makes a better deal, gets a better mortgage!
MortgagePRO Ltd. is an Alberta Corporation based in Calgary, licensed by the Real Estate Council of Alberta (RECA)and proud member of the Alberta Mortgage Brokers Association (AMBA), we offer unique mortgage solutions: across Canada truly a Canadian Mortgage Broker. We have broker partners and lenders across Canada to fund in jurisdictions MortgagePRO is not licensed.

Monday, 4 July 2016

Impact of Brexit on Canadian Mortgage Industries


The world is changing. The United Kingdom (commonly known as UK or Britain), just left the European Union. For those who don’t know, the European Union is a conglomeration of European countries bringing them under the same umbrella, with a common currency, and cutting down on many cross country migration laws. #Brexit has been trending on every social platform. The European Union includes most European countries, of which the Great Britain Republic (GBR) is no longer a part of.  The UKs parliament voted out of the European Union just recently and this caused a global stir.

The reason provided by the British was that the immigrants were too high due to this and this suppressed their native population. Some might think that this is comical for a country, who almost occupied the whole world with their conquering, but it has happened, and this article will give you an insight into what Brexit can do to Canada and its mortgage industries and the entire world as well. While most other countries voted to remain in the EU, the British exited, causing furore across the world.

What it Means, the Exit? 

The exit is bound to bring about many different things as UK was one of the major and most important countries in the EU. Here are few points that can show the effect that Brexit will have on this world.

  • This can cause a breakup of the entire UK, followed or preceded by the entire EU. 
  • Brexit will be followed by referendums and repudiations by different countries which might result in the entire break down of the union. 
  • Financial turn of events, with drop in value of both Euro and the Pound Sterling. 
  • The I, me, myself sort of ideology is on the rise, marking Brexit as the first of its kind. 

The Canadian Mortgage Rates

The Canadian Mortgage rates will also see a changeover with this exit.

  • Fixed Rate Mortgages:
    Fixed rate mortgages are the short term mortgages, which are predicted to not fluctuate much. If you happen to own a lot of British Pounds, then you are in for a period of volatile ownership, while others, not much. Even if there is precipitously large fall, lenders will not bring about any immediate cuts. Knee jerking reactions is not something that lenders want to do.
  • Variable Mortgage Rates:
    The Canadian and the US monetary policy links are very closely related and thus, investors should be careful about the direction of US Federal Reserve’s moves and calculate their risks accordingly as Canada’s market moves in a straight line with the US monetary policies.
    While the basics of the mortgage systems seems to be firmly placed on the ground, Brexit will not bring about any major changes in the short-term mortgages, but it can be predicted that in the longer run, Brexit will have major impacts, which can be seen only with time. Heightened financial risk is eminent and it should and will be a cause for concern at a later stage. 

The experienced mortgage brokers of MortgagePRO Ltd. are happy to help you find solutions for your clients’ mortgage needs. Call Us: 403-253-2022 or Email Us: