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Friday, 11 December 2015

Changes to down payment requirements coming February 2016 for home purchase

Today Finance Minister Bill Morneau announced changes to down payment requirements. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from five per cent to 10 per cent for the portion of the house price above $500,000. The five per cent minimum down payment for properties up to $500,000 remains unchanged.

The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.

Homes priced at more than $1 million by law require a minimum down payment of 20 per cent. Today's announcement therefore focuses on homes priced between $500,000 and $1 million.



You need a Mortgage PRO more than ever to get you through the labyrinth of mortgage financing.
We are the best bet of financing a new and or refinancing an old mortgage!

Wednesday, 2 December 2015

Low credit score can still get approved by Private Lender Inc.

Real Estate Agent with Kamloops PropertyFor Sale
With a credit score under 600, it is likely that you will be turned down by a bad credit or prime lender and you may have to turn to a private lender. Private lenders provide an option to clients with bruised credit. Since it is a fast financing option with a higher risk to the lender, interest rates are almost always higher.
Most borrowers – real estate investors included – think of private lenders as a last-resort option if they can’t secure financing anywhere else. But private funds are gaining traction as a financing option due to the new mortgage rules set by the federal government and the continued post-crisis caution being exercised by institutional lenders. Private lenders have realized that conservative lending guidelines used by banks and conventional lenders exclude many individuals who are in fact able to pay back loans. Most importantly, private lenders take into account a property’s overall value and marketability as opposed to simply the borrower’s credit history.
The one new mortgage insurance rule real estate investors have become all too familiar with is the requirement of a 20 per cent down payment for non-owner-occupied investment property purchases. The Canadian Mortgage and Housing Corporation has also changed its underwriting policy when qualifying real estate investors for mortgage insurance, going from counting 80 per cent rental offset to an to a much lower 50 per cent addback.

Why would I use a private mortgage lender?
You would use a private mortgage under any of the following circumstances:
·         You want to purchase an unconventional property that a prime lender or bank won’t finance.
·         You need fast financing and don’t want to wait for a long approval process.
·         Your bad credit history means you are being turned down by conventional lenders.
·         You only need a short term loan.
·         You have non-confirmable income that is preventing you from obtaining a traditional mortgage.
Carmen Capagnaro, an Oakville, Ont.-based mortgage broker who specializes in real estate investing, says she already sees a bigger demand for private financing due to the new rules, particularly for higher ratio, smaller investment properties like single-family homes and condo units used for rental income purposes (The CMHC can still approve commercial and multi-unit residential properties for up to 85 per cent LTV financing). “Not everyone can come up with a 20 per cent down payment, so one of the options is private money,” she says. “Anyone who is buying in that smaller category has the ability to get up to 90 per cent financing with private funds as opposed to 80 per cent with a traditional lender.”
“What we’ve seen in this marketplace is a big resurgence on the investment property side,” says Chuck McKitrick, CEO of Alta West Mortgage, a private lending company based in Calgary. “There are all these investors rolling back into the marketplace and they’re tired of dealing with the banks’ stringent parameters, meaning they’re fine with private money because it’s quick and easy even though it’s more expensive.” Something else that might drive real estate investors to private lenders are tightened CMHC rules for self-employed borrowers. These newly tweaked rules state that BFS borrowers with more than three years in the same business, as well as commissioned-income borrowers, are required to provide traditional proof of income (or “third-party validation”) to qualify for a loan. Those who have recently become self-employed and don’t have third-party validation can still apply for a mortgage, but have to come up with a 10 per cent down payment. McKitrick says these changes will have a big impact and expects to see more applications from this category of borrowers.
“To apply for a mortgage cannot be simpler than this, at Private Lender Inc. A few minutes to complete the application here and just relax, we will contact you upon reviewed your application, bureau and have a solution for you” says Zoltan Padar president and private lender of MortgagePRO LTD. a licensed and bonded boutique brokerage headquartered in Calgary, serving client across Canada since the turn of the century.

Also, we believe the educated, well informed home-buyer and homeowner makes better decision and save thousands on interest payments. We train you to save money, look here for deep in detailed information to become a better decision maker.

Friday, 30 October 2015

Calgary is not in danger of real estate market correction; according to CMHC

Globe and Mail:

Home prices in most major housing markets in the country are overvalued, with Toronto and some Western cities facing a high risk of a correction, Canada’s federal housing agency warned.
In a new quarterly forecast on the housing market, Canada Mortgage and Housing Corp. said it saw scant evidence of serious problems in the Canadian housing market over all, but warned that home prices are now outstripping economic fundamentals in 11 out of 15 major markets and that four cities – Toronto, Winnipeg, Regina and now Saskatoon – face serious headwinds because of high prices and a surge in the supply of new homes under construction. Read more to be well informed
Well informed clients are making better choices, save more and have a better mortgage by knowledge. Our mission is to keep you informed and provide you the best FREE advice in the industry. Our Mortgage Reference Centre will give you the knowledge you need to see your....

Friday, 18 September 2015

Who will save you from foreclosure when you lost your job and

We’ve seen the headlines about the softening housing market in Alberta and Saskatchewan. But how much of a threat do declining home prices there pose to the rest of the country?
Little, according to a report from National Bank of Canada (NBC).
How to fend off foreclosure lawyers by using your equity in the home to pay your mortgage payment and or some cases to bring your mortgage up to date? How to get a private mortgage to deal with your expenses, till you back in the workforce? Private lender Inc. might have the right answer to your burning issues. We understand what it takes to lend you a helping hand...

Thursday, 20 August 2015

Time to get off the fence; we are your best bet when you finance a new or refinance an old mortgage

Now summer is over, back to normal soon. Generally, fall is one of the best times to purchase a home and this year it might be even busier with interest rates still very low and inventory of homes are providing you with choices.
While the weather will begin to cool soon, the mortgage market with more lenders competing for your mortgage remains hot. Mymortgagepros.com have access to many specialized lenders, giving you many more options than we’ve seen in a long while. All this is great news for you.  This is the best time to review an existing mortgage and determine if now is the time to renew early or refinance to take advantage of all the options.
The Globe and Mail recently quoted Bank of Nova Scotia senior economist Adrienne Warren, stating: “The persistence of exceptionally low borrowing costs will likely maintain a healthy level of sales in the coming months.”  
I can let you know if it makes sense to renew or refinance your mortgage and perhaps save thousands. In many cases it makes sense to refinance if you consolidate higher interest debt at the same time. With Our expertise we can together determine if there is chance to reduce your monthly payment, save you thousands in unnecessary interest cost and have your mortgage paid off years sooner.

Whether it’s buying this fall or simply having getting FREE advice, call me today and let’s get started.

Thursday, 13 August 2015

mymortgagepros.com better mortgage rate, better mortgage products

Well informed home-buyers are making better decision when they are ready to buy a home. All mortgage brokers are not created equally, some better connected then others, some has lenders others don't, providing them an edge over the every day broker. Mymortgagepros.com is well positioned, well connected and has a seasoned team of mortgage professionals, able to provide you finance, refinance mortgages where others failed. Get a second opinion, not only when you buy a home, but when you refinance a home. Rates and fees are as important as the mortgage product to consider, so you do not set yourself up to major disappointment and most importantly loss of your hard earned money.  We provide information , you need to knows here and also once you have completed little read on, please get one of our professionals to book you for a FREE consultation. Do not go alone, we will come with you on the hunt for a better mortgage, better mortgage rate, better mortgage product.

Friday, 19 June 2015

Find out if reverse mortgage is the solution for you

A Reverse Mortgage is a loan secured against the value of your home.

Unlike a loan or a regular mortgage, with CHIP you are not required to make payments. You only repay the loan when you move or sell your home.
You've worked hard to own your home, time to get your home to work hard for you:
-pay off debts
-renovate and or make your home more accessible
-handle unexpected expenses
-help your children and or grandchildren
-improve your day-to-day living standards
-make a special trip or purchase
-money to finish your "bucket list"

A CHIP Reverse Mortgage is secured by the equity in your home.

Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you. The big advantage with the CHIP Reverse Mortgage is that you do not have to make any payments – principal or interest – for as long as you or your spouse live in your home. That’s what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries.

The CHIP Reverse Mortgage is designed exclusively for homeowners age 55 and older.

This age qualification applies to both you and your spouse.You can receive up to 50% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home’s current appraised value. You can choose how you want to receive the money. CHIP gives you the option of receiving all the money you’re eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time.
Wouldn’t it be nice if you had the money to do more of the things you want to do? A CHIP Reverse Mortgage could be just what you need. It’s the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.

You receive the money tax-free.

It is not added to your taxable income so it doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.

You can use the money any way you wish.

Maybe you want to build up your savings or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans secured by your home must be retired with the proceeds from your CHIP Reverse Mortgage.

No payments are required while you or your spouse live in your home.

The full amount only becomes due when your home is sold, or if you move out.

You maintain ownership and control of your home.

You will never be asked to move or sell to repay your CHIP Reverse Mortgage. All that’s required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.

You keep all the equity remaining in your home.

In many years of experience, 99 out of a 100 homeowners have money left over when their CHIP Reverse Mortgage is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.
For detailed information on how to start the process, please visit our website, complete a short form and we will make sure you will be contacted and treated like a member of our family. MortgagePRO Ltd., a Calgary based mortgage brokerage that has access to all the best mortgage products, lowest rates and provide solutions.

Tuesday, 19 May 2015

Mortgage fraud can effect everybody, dont be a victim



Do not become an unwilling victim of growing fraud for profit schemes. Keep yourself safe and rely on the experience of a licensed mortgage professional at MortgagePRO. Our streamlined process accelerates your application to a trusted lender which makes securing financing for your needs worry-free. We have the knowledge and expertise to detect and deter mortgage fraud.
We commit ourselves to educating our clients which in return eliminates the opportunity for fraudsters to take advantage of the problems you are facing. With our help, you can recognize weaknesses and save yourself from becoming the victim.
The term used by real estate industry members is “Red Flags.” As a customer, the list of things to remember can be overwhelming. However, as a real estate industry brokerage, dealing in mortgages on a day-to-day basis since before the turn of the century, we have developed an instinct to determine whether there is a legitimate or fraudulent transaction. A list of red flags can be found here: http://www.reca.ca/industry/legislation/information-bulletins/mortgage-fraud-red-flags-mortgage-brokerage.htm
Before making a decision or if you have any hesitation, talk to a MortgagePro and become educated. The following pages have excellent advice for protecting your interests:
http://mortgageconsumer.org/portals/0/docs/Fraud%20Brochure_2.pdf
http://www.aara.ca/files/tips/mortgage_fraud.pdf
http://www.servicealberta.gov.ab.ca/pdf/tipsheets/mortgage_fraud.pdf
http://www.cmhc-schl.gc.ca/en/co/buho/plmayomo/plmayomo_004.cfm
At MortgagePro, our main objective is to create a strategy that you can trust will work. A mortgage should not limit your possibilities, but enhance them.
You can find out if the person you are dealing with has gone through the required basic education of becoming licensed, for example in Alberta, by visiting the following website provided by the Real Estate Council of Alberta (RECA): https://www.myreca.ca/online/aspx/pubinquiry.aspx

Wednesday, 22 April 2015

TFSA contribution ceiling has increased, what does it means to YOU



The federal budget has been a blessing for some. It is no doubt politically motivated, just like many things our politicians do. So nothing new there.
The highlights are:
      -TFSA contributions from $5500 to $10000 (good news for people conscious of their financial future and understand the concept money makes money and it is a bonus the profit is sheltered from the tax man)   
      --Balanced budget with a tiny surplus (1.4 billion)

CMHC) recently announced that it has increased the insurance premium meaning 5% down the premium goes from 3.15% of the total amount borrowed to 3.6%. effective June 1, 2015. So no brainier, hurry up if you want to save on insurance. (my advice; do not rush to save a little, might lose a lot on the long run)
As your trusted mortgage adviser, my duty to make sure you are well educated and informed about mortgages, as we believe you will make better decisions. I will keep you up to date and will ad to the Knowledge-website more information dealing with issues, news and everything. Come back and visit us online and enjoy the savings what will result in keeping us close for support and advice.

Monday, 23 March 2015

Fixed or variable rate is the way to go?

Thomas Beyer on mortgage rates and on what you need to consider:

5 or 3 years ?

That is the debate I am having with my daughter and her future husband right now as they prepare to buy a house this late spring / early summer in Edmonton (in one of the Top 5 areas recommended by REIN, no less)

I'd say: go variable, not 5 but 3 years. With 5 years you'd pay a far higher mortgage penalty if they decided to move in 3 or so years which is more likely with younger folks. 3 year variable money is also cheaper than 5 year money, and variable is cheaper than fixed, currently around 2%, whereas a fixed rate is 2.39%. Sounds like a small difference. But 0.39% on a $450,000 mortgage is $1755 a year, or almost $150/month. Two meals out, c/o the bank ! I'd take that any day !

A fixed rate is essentially "rate insurance" and some folks prefer that so they can sleep better at night, but at almost $1800/year or $9000 in 5 that is expensive insurance indeed. The link below argue why rates will not go up for many many years, and as such the insurance premium is not justified. It helps mainly the bank !

2.39% is almost 20% more than 2% money. Also, we expect prime rate to be lowered one more time by the Bank of Canada as early as this summer if oil does not go up to $60/barrel. Since that is unlikely this year, due to the oil glut, I expect prime to be lowered to 0.5% from currently 0.75% and thus, banks will offer variable rates sub 2%, say 1.85% as early as this summer.

Now it is time to use a Mortgage Broker, refinance your mortgage to save, purchase revenue property as an investment. 
We at MortgagePRO Ltd believe the best way is to go, get educated about mortgages and with the trusted Mortgage Adviser, us, you will be making better decision and will have a solid ground in the financial world. 

Saturday, 7 March 2015

Homeowners equity loans the easy way

Using you home equity to get a loan when you need one and the bank turned their back on you, is smart, indeed. myprivatelender.com

Tuesday, 10 February 2015

Mortgage rates down, how to take advantage and save?

Overnight rate has gone down to 0.75%. Good news banks will have to follow soon, matter of fact BOC has indicated they will go even lower in a few months.
Here’s what it means to you:
      Lenders will offer very low rates in the foreseeable future on their 5 year Variable and fixed rate.
      Some lenders have already announced a drop in their fixed rates.
      If your mortgage coming up for renewal in the next 16 months, it is time to contact your mortgage broker to be ahead of the game and take advantage of the new never seen rates as soon as possible
      If your mortgage is a Variable one, you will see a notice from your lender of the rate drop in the coming months
       Variable rate is adjusted to the Prime rate, what is now 2.85%
Overnight rate drop was an unexpected move by BOC which will impact every home owners with a mortgage one way or another.
More you can find out form our professionals when you ask for your FREE no obligation Consultation
How about a 2.4% Variable rate for new mortgage or refinance an old one?