22 Nov

The Personality of Your Mortgage

General

Posted by: Lynn Nequest

 
Everyone knows that Mortgages come with a rate attached to them. But few know that each Mortgage Product has a PERSONALITY too!  The Personality of a mortgage product is a key component in selecting the right mortgage for you and your unique needs. So sit back, take some notes, and take your mortgage on a little coffee date—lets get to know it a bit better shall we?  8 Questions You Should Ask:Everyone knows that Mortgages come with a rate attached to them. But few know that each Mortgage Product has a PERSONALITY too!

The Personality of a mortgage product is a key component in selecting the right mortgage for you and your unique needs. So sit back, take some notes, and take your mortgage on a little coffee date—lets get to know it a bit better shall we?

8 Questions You Should Ask:

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21 Nov

Interest Rates & More

General

Posted by: Lynn Nequest


Interest Rates & MoreLast week we touched on TD’s 0.15% move with existing variable rate mortgage clients. There is nothing new to add as TD remains the only lender to make such a move with variable rate clients. Perhaps TD back downs down soon, perhaps other banks join them – time will tell.

The fresh news on rates is that most lenders, not all, hiked the venerable 5-year fixed rate for new applicants by as much as 0.25%.

WHAT DOES IT ALL MEAN?

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18 Nov

Your Pay Went Up But You Don’t Qualify For a Mortgage?!

General

Posted by: Lynn Nequest


Your Pay Went Up But You Don't Qualify For a Mortgage?!I want to share with you a story. Below is the story of John, and if you ever want to own a home, you need to read his story.

John was a 25 years old. He was good with money. He went to school and he worked his butt off to support himself. John had been saving $250 every pay cheque for the past 2 years allowing him to accumulate $12,500. This was hard for John as he was barely making $15 an hour and was not left with much spending money after each payday. Six months ago, John started a new job working full time getting paid more than $25 an hour. With the increase in income, he bought a new car with monthly payments he could easily make. Financially, John was feeling confident.

John called his mortgage broker to tell him the good news. He had his 5% down payment, had his new full time job getting more than $25 an hour and was ready to put in an offer on a $250,000 condo. John was excited- he’d been saving for 2 years, he could finally move out and have his own home. Unfortunately, John’s mortgage broker informed him that even though he had the 5% down payment and full time job, he wouldn’t be able to buy a home for at least another two years!

What the heck happened?

Well, a couple things.

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11 Nov

What is YOUR Number? Your Maximum Mortgage Number

General

Posted by: Lynn Nequest

 
What’s YOUR Number? Your Maximum Mortgage NumberWhat is the maximum mortgage amount one now qualifies for with the rules that came into effect on October 17th?

Short answer: LESS. A minimum of 20% less, in fact.

Before October 17th, the lenders calculated the maximum mortgage amount based on the contract rate of 2.49%, but now it is based on the Bank of Canada benchmark rate of 4.64%

Here are three random scenarios that I have created to outline borrowers’ qualifying power before and after the change. Note they are all based on  25-year amortization, the new qualifying interest rate (5-year Bank of Canada benchmark, currently 4.64%) as well as a GOOD credit score of 680 or greater. The first two are based on 5% down; the third is based on a 20% down payment, which does not require mortgage insurance.

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11 Nov

Aside From Banks, What Other Options Are There For My Mortgage?

General

Posted by: Lynn Nequest

Aside From Banks, What Other Options Are There For My Mortgage?When purchasing a property, it can be an overwhelming experience. Especially with the current real estate market when you need to make fast decisions and you need to get your questions answered quickly. Many think that their only option is talking to their bank where they do their daily banking to get their mortgage. The question is you’re your ever considered working with a Mortgage Expert? A Mortgage Broker?

There are many reasons why you can benefit from using a Mortgage Expert. A mortgage consumer survey conducted in 2015 by CMHC (http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/sure/fihosu/upload/2015-First-Time-Homebuyers-Survey.pdf) found in that 55% of first-time buyers reported arranging their mortgage through a mortgage broker.

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8 Nov

3 Steps to Keep Your Credit In Check

General

Posted by: Lynn Nequest

3 Steps to Keep Your Credit In CheckIf you have have overextended yourself with credit card debt, or have consolidated all of your consumer debt into your mortgage, or are at the point where you just want to cancel your credit cards, we have the 3 steps for you to follow to get your credit back in check.
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2 Nov

Is Being Mortgage Free My Plan For Retirement?

General

Posted by: Lynn Nequest


Is Being Mortgage Free My Plan For Retirement?Most people believe that being mortgage free is their plan for retirement. That means paying off your mortgage as fast as possible becomes the priority and having other forms of investments are considered only after your property is paid off.

It is important to decide what option will give you the balanced diversification and protect you from the real estate market and economic fluctuations.

One strategy to be mortgage free is that you will have minimal property expenses when you retire and have 100% of the value of your home in equity. You will then have extra funds when you decide to downsize to a smaller home. But by putting all of your eggs in one basket you could be limiting the ability to use other investment options that could give you a higher return on investment and would help you achieve your retirement goals faster.

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