28 Oct

Mortgage Changes – Oh How Times Have Changed

General

Posted by: Lynn Nequest

 

Mortgage Changes - Oh How Times Have ChangedWith the recent changes to the mortgage rules in Canada, we take a moment to look back at the evolution of the mortgage, and to highlight these new changes and what they mean.

LOOKING BACK

BEFORE 2008

During this time, lending and mortgages were much more laid back! There was 100% financing available, 40 year amortizations, cash back mortgages 95% refinancing, 5% down payment required for rental properties, and qualifications for FIXED terms under 5 years and VARIABLE mortgages at discounted contract rate. There was also NO LIMIT for your GROSS DEBT SERVICING (GDS) if your credit was strong enough. Relaxed lending guidelines when debt servicing secured and unsecured lines of credits and heating costs for non subject and subject properties.

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24 Oct

Bi-Weekly Payment Workaround

General

Posted by: Lynn Nequest

 

Bi-Weekly Payment WorkaroundMost of us know that changing your mortgage payment from monthly, or semi monthly, to an accelerated bi-weekly payment instantly reduces your standard 25 year amortization by 2.58 years with today’s rates. (If you didn’t know that, you’re likely not working with the mortgage professionals at Dominion Lending Centres).

Sometimes, however, an accelerated bi-weekly payment option might not be available to you. Either the lender does not offer it as an option with that particular product, or they may not allow you to set it up if the accelerated payment knocks your qualifying ratios out of line. Although these situations are rare, they do come up from time to time. Here’s a workaround for those that might find themselves in this situation.

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20 Oct

Practice Your New Mortgage

General

Posted by: Lynn Nequest

 

Practice your mortgage...  What exactly do I mean by that? Well, if you’re a first-time buyer and just beginning to explore the housing market, chances are you’re currently renting or living with family, and very likely paying less than you will be going into your new home. For this reason, I strongly suggest you start getting used to your new mortgage payments sooner than later.Practice your mortgage…

What exactly do I mean by that? Well, if you’re a first-time buyer and just beginning to explore the housing market, chances are you’re currently renting or living with family, and very likely paying less than you will be going into your new home. For this reason, I strongly suggest you start getting used to your new mortgage payments sooner than later.

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19 Oct

Can You Handle the Projected Increase In Mortgage Rates?

General

Posted by: Lynn Nequest

 

Can You Handle the Projected Increase In Mortgage Rates?Lately we’ve seen projections that rates will begin to increase through the next 15 months. Some banks have projections that show the 5 year bond will increase from the current .65% to 1.7% that1.05% increase will equate to these numbers.

The 5 year mortgage rate on average is set by most lenders at the bond rate and adding what some call their comfort margin of 1.8%. So by today’s standards that rate would be 2.45% which pretty close to what we see on average somewhere between 2.39% and 2.49%. Take the projected increase in the bond to 1.7% and add the 1.8% then we are now at 3.5% so almost a full percent higher. Doesn’t sound like much does it, let’s look at the numbers to see what difference per month it makes in your payment.

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