31 Oct

Don’t ‘Fix’ It If It Isn’t Broken

General

Posted by: Lynn Nequest

Don’t ‘Fix’ It If It Isn’t BrokenBy now the media, along with multiple mortgage brokers’ social media feeds, have likely let you know that more changes to your ability to get a mortgage are arriving soon. But so what? Should you care?

SHORT VERSION; Probably Not.

LONG VERSION; The five ’W’’s follow to help answer the above questions and more;

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30 Oct

5 Simple Steps to Owning Your Own Home

General

Posted by: Lynn Nequest

 

5 Simple Steps to Owning Your Own HomeOften, the route to owning your own home can seem like a trip to the moon and back.

Really though, it comes down to five key steps:

1 – Manage your credit wisely.
If there is one thing that will gum up the purchase of that perfect home, it’s an unwise purchase or extra credit obtained. Keep your credit spending to a minimum at all times, make every payment on time and most of all pay more than the minimum payment. Remember that if you just make the minimum payment on your credit cards, chances are you will still be making payments 100 years from now.

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26 Oct

Payment frequency, does it really make a difference?

General

Posted by: Lynn Nequest

Payment frequency, does it really make a difference?It has been said that there are two certainties in life; death and taxes. Well, as it relates to your mortgage, the single certainty is that you will pay back what you borrowed, plus interest. However, how you make your mortgage payments, the payment frequency, is somewhat up to you! The following is a look at the different types of payment frequencies and how they will impact you and your bottom line.
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24 Oct

Helping Children with A Down Payment

General

Posted by: Lynn Nequest

Helping Children with A Down PaymentAlthough home prices in Toronto and Vancouver seem to have stabilized recently, they are still at historical levels.

The average home price in these two major Canadian cities are still well over $1 Million. Unsurprisingly, first-time homebuyers are finding it increasingly difficult to get onto the “property ladder”. It is now harder than ever for first-time homebuyers to own a home; so what are they to do? Studies have shown that more and more millennials are turning to the bank of mom and dad for help with their down payments.

According to the latest statistics from Mortgage Professionals Canada, down payment gifts from parents have increased significantly in the last 16 years, going from 7% in 2000 to 15% for homes purchased between 2014-2016. The average gift amount has skyrocketed as well. Industry experts have seen many down payments in the six-figure range – $100,000 to $200,000. The trend is expected to continue, as 2017 is predicted to be “the most difficult year for a first-time homebuyer in the last [decade]”, according to James Laird, co-founder of RateHub, a mortgage rate comparison website.

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20 Oct

New mortgage changes decoded

General

Posted by: Lynn Nequest

New mortgage changes decodedThis week, OSFI (Office of the Superintendent of Financial Institutions) announced that effective January 1, 2018 the new Residential Mortgage Underwriting Practices and Procedures (Guidelines B-20) will be applied to all Federally Regulated Lenders. Note that this currently does not apply to Provincially Regulated Lenders (Credit Unions) but it is possible they will abide by and follow these guidelines when they are placed in to effect on January 1, 2018.
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18 Oct

The Impact of Mortgage Rule Changes

General

Posted by: Lynn Nequest

The Impact of Mortgage Rule ChangesThe mortgage rule changes that were passed by the Ministry of Finance in October 2016 are still having their effect one year later. Higher qualification requirements and new bank capital requirements have split the industry into two segments – those who qualify for mortgage insurance and those who don’t.
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13 Oct

What is an interest rate differential (IRD)? How do you calculate it?

General

Posted by: Lynn Nequest

What is an interest rate differential (IRD)? How do you calculate it?A mortgage in its simplest form is a contract. It has terms, conditions, rights and obligations for you and the lender. When you sign on the dotted line, you are agreeing to those terms for the length of time laid out in the contract. However, sometimes life throws us an unexpected event that brings around the need to make key decisions and changes. One of these changes, for whichever reason, might be needing/wanting to break your mortgage contract before the end of the term. Can you do that? What are the penalties? Let’s take a look!
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6 Oct

Time to lock in your rate? Make sure you have an exit strategy

General

Posted by: Lynn Nequest

Time to lock in your rate? Make sure you have an exit strategyLike many of you, I received a call last week, from my mortgage provider, asking whether I wanted to “lock in” a new five-year fixed rate. The rate was a special offer and would only last for the week, so I would need to make a decision quickly, with little time to think about the consequences to my own mortgage strategy.

While it may appear that your financial institution is acting entirely in your best interests, this is only partially the case. While it is true that locking in or switching to a new fixed rate can help you control your costs, they are doing it to manage their own costs, not yours. It’s important to remember that each time a financial institution lends you money, it’s not their own money. Their strategy is to borrow the money from investors, depositors and other corporations in order to lend you the money. The five year fixed rate renewal they sign with you is backed up with a five year investment contract with someone else. Always.

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3 Oct

Canadians tell their stories of how mortgage rules put the dream of home ownership out of reach

General

Posted by: Lynn Nequest

Canadians tell their stories of how mortgage rules put the dream of home ownership out of reachThis letter will also appear as a full page ad in today’s Globe and Mail.

Dear Prime Minister Justin Trudeau and Finance Minster Bill Morneau;

One year ago, your government introduced new mortgage rules that put the dream of home ownership out of reach for many Canadians. Although well intended, the changes have reduced the average Canadian family’s purchasing power by upwards of 20 per cent, and have had the unintended consequence of making housing less affordable for Canadians.

Instead, Canadians who were once able to purchase or re-finance their home are being shut out of the market or forced to pay more interest to traditional lenders as competition in our sector declines.

The new stress test that requires all new mortgages to qualify at the greater of either the Bank of Canada benchmark rate or the contract rate offered, means that Canadians who previously could reasonably afford a mortgage payment at the standard rates no longer qualify.

Additionally, changes to portfolio insurance requirements have resulted in some monoline lenders being unable to insure mortgages, thus reducing overall competition, which hurts consumers, regardless of what solution they use for their homes.

Canadians who are now unable to fulfill their dream of owning a home have been telling us their stories and we’ve been listening. We’ve documented their stories and we think it’s important for you to see them.

We’ve posted these stories at www.NewRulesHurt.ca and are sending every Member of Parliament a printed copy so they can read firsthand how the new mortgage rules have impacted the lives of hard working individuals and families in their constituencies.

Please take the time to read these stories and seriously consider changing mortgage rules to make them fair and equitable for all Canadians trying to purchase, or keep their home.

Gary Mauris
President and CEO
Dominion Lending Centres

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2 Oct

Don’t assume anything when dealing with mortgage financing

General

Posted by: Lynn Nequest

Don’t assume anything when dealing with mortgage financingA lot of people get into hot water when they assume that because they’ve qualified for a mortgage in the past, they will qualify for a mortgage in the future.

This article has one point to make and it’s this:

Don’t assume anything when dealing with mortgage financing!

And if that’s all you take away, that’s enough!

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