Mortgage Life Insurance

What would happen to your family or spouse if you died tomorrow? Life insurance can offer you the protection to know that if anything were to you, your partner and children would be protected. Lenders offer more expensive declining policies, this means you make the same payments even though, as your mortgage is being paid down, you are covered for less. An independent life insurance advisor can offer you the protection you need. I have excellent people I personally work with and would be happy to refer you to them.

Comparing

Interest rates have increased slightly and with the threat of them increasing even more, many Canadians are jumping in and buying homes while they can afford it. Sales in September were up 18.2% compared with last year according to CREA. The average home price was $385,900 which is an 8.8% increase over 2012. So how much are rate increases going to affect buyers? Consider this, if you buy a home today and get a $300,000 mortgage, the payment for a 5 year term at 3.59% is $1512 per month. If interest rates increase to 4.59%, that payment jumps to $1675 per month or $163 per month more. If you feel that now is the time to begin exploring buying a home, call me today. I can secure rates for you and help guide you through the process.

Gifted Down Payment

Did you know that lenders will accepted gifted down payments from immediate family members? This means that if a parent is will to gift you the funds, they can be used to buy a home right away. You can put as little as 5% down on a new home. Not sure if you will qualify, call me today!

Stricter Rules

On December 31st new and stricter mortgage lending rules are coming into play. CMHC (Canadian Mortgage and Housing Corporation) will be instating a few new rules, some of which will have an impact on new home buyers. Two notable changes are as follows. All payments on unsecured loans held by an applicant will be calculated as 3% of the outstanding balance. That is a big deal for interest only debt holders. Also, if a guarantor on an application does not live in the home, we cannot use their income. This means that if mom or dad were willing to co-sign for their kids, after December 31st their income will not be eligible for use on the application. If you are a new home buyer and are wishing to buy a home, act now before the new rules apply to you!

Home Appraisals

When buying a home, many times a home appraisal is required by the bank. This is usually the case when a buyer has more than 20% down payment and is bypassing CMHC insurance. Because CMHC does its own internal property valuation, an appraisal is rarely required. However, when CMHC is not involved, lenders typically require that an independent home appraisal be done to confirm the property's value. This offers the lender a full report on the home and it's marketability and also offers the home buyer peace of mind to know the price they are paying for their new home is a fair value. Call me today!

Retirement

With interest rates on the rise, many Canadians are pulling the trigger and getting into home ownership. There has also been a flux of current home owners who are exploring longer term rates to help stabilize their payments. If you own your home and are looking to stay in it for the next 5 - 10 years or longer, securing a longer term interest rate may be of benefit especially if income changes, such as retirement, are on your horizon. By getting into a 5, 7 or 10 year term, your payments are guaranteed for that term and will not change. Depending on your future plans, this could be a great way to ensure you can maintain your home comfortably into retirement. Call me today to discuss!