Self-employed income

If you work for yourself, in most cases, lenders require a 2 year history of your income to approve you for mortgage financing. By presenting your last 2 years of T1 Generals and Notice of Assessments from Revenue Canada, we can use a 2 year average of your income. Some lenders will also allow us to gross up the income. If you work for yourself and are not sure if you can qualify to buy a home, call me toda For more information about all kinds of mortgages, call me today!

24 hours!

It is yet another amazing week in the land of mortgages with clients looking for all kinds of financing. So far, this month has been full of mortgage renewals, refinances, property purchases, construction financing and a private deal that had to be approved an funded in less than 24 hours (which we successfully did!). Regardless of the kind of mortgage financing you are looking for, I have the expertise to assist you. Call me today to review your options. The market seems to be as warm as the weather. Housing prices across the country are remaining strong and this is encouraging for everyone. If you are considering selling your home and upgrading, call me for advice about how best to structure your financing. I can also recommend a wonderful realtor if needed. I look forward to assisting you!

Collateral Charges

Many chartered lenders secure their mortgages as collateral charges or as running accounts on the title meaning that, although a client's mortgage term may be over, the charge held by the lender does not expire. Collateral charges are typical for secured lines of credit where there is no set end date for the loan. A mortgage term however, does typically expire and having a collateral charge means the client is not able to transfer their mortgage to a new institution without incurring legal fees. Always ask your broker or lender about collateral charges, they can limit your ability to move your mortgage in the future. See the article below for news on changes to collateral mortgage rules. For more information about all kinds of mortgages, call me today!

Expanded living

New studies are showing that the housing market has been fairly strong in 2014 despite stating that home prices across the nation seems to be overvalued. This is creating a challenge for move up buyers who are wishing to expand from living in stratified properties to single family dwellings. Thankfully, in the Lower Mainland, prices have not risen dramatically compared to cities like St. Johns, Quebec City and Victoria which posted price increases of 5% so far in 2014. Because housing prices are too high for some buyers, many will opt to renovate rather than upgrade. If you are looking at options of whether to move or renovate, call me. I can offer you a full assessment of the numbers. Please remember that my services are free and I have access to over 50 lenders across Canada. I can advise you on financing for purchasing a home, refinancing a current mortgage or offer you options for your mortgage renewal. Call me today!

Bank accounts

It really doesn't matter where you do your banking however, when buying a home, you will need to ensure that the money you have saved for your down payment is sitting in a bank account or is invested with a reputable firm. The reason is that, in order to confirm your down payments funds, you will need to provide 3 months of banking or investments statements to show you have had the funds in your possession.

Bank of Canada met today - Did rates go up?

Welcome to September! The Bank of Canada met this morning and left the prime rate stable and it doesn't look like rates will be increasing any time soon. The expectation is that, next year once the American Federal Reserve starts to increase rates, the Bank of Canada will follow suit. For the time being, variable rate mortgages are a an excellent option for those looking to make larger payments and decrease their principals more quickly. This week I am really excited to be helping several families buy homes. Many have been looking for a long time and finally found what they are looking for. If you are considering a home purchase and are not sure where to begin, call me! I can get you pre-approved for financing and introduce you to my team of realtors who can assist with searching for a new home, and selling your current home, if necessary

Green is the new Orange

We are almost at the end of August and the summer sure has flown by! Our office has been very busy making me hopeful that we will have a strong Fall market. This week many clients have been asking about mortgage refinances. Refinancing a mortgage is a great way to pay for renovations, consolidate debts or restructure a first and second mortgage into one low rate mortgage. The rules are such that, so long as 20% equity is left in the home, we can refinance a mortgage based on the clients' ability to qualify. If you are not sure if a refinance is right for you, call me today to look at numbers and discuss options. I also just want to give a shout-out to all my clients in Rider Nation. The Lions played a good game versus us over the weekend and I am proud to say that Green is certainly the new Orange. Guaranty that!

1st and 2nd mortgages

If you currently have a 1st and 2nd mortgage and have more than 20% equity in your home, you may qualify to consolidate your mortgages into one low rate mortgage. Lenders will assess employment, credit bureaus and also the property itself when approving a new mortgage. Several lenders even have special programs which can put a 1st and 2nd mortgage at the same low rate. If you have a high interest second mortgage, call me today to see if we can slash your interest rate. For more information about all kinds of mortgages, call me today! Call me today!

Co-Applicant

If you are looking to qualify for a mortgage and the numbers are looking tight, consider having a parent or family member co-sign for the mortgage with you. By using a co-applicant, lenders are able to use the family member's income which can often times increase your purchasing power. A co-applicant can also be helpful if you have had past credit challenges and are needing a strong co-applicant to guarantee the loan. For more information about all kinds of mortgages, call me today!

Lay of the Land

The housing market is doing surprisingly well and predictions of the market are improving. That is really showing in our office as applications are piling up for people looking to qualify for all kinds of financing. Regardless of your situation, I am always more than happy to speak with you about your mortgage options. Whether you currently have financing and are exploring better rates, or if you are a first time home buyer and are trying to figure out the lay of the land, I am here to help. Please remember that my services are free to you and I am always available to answer questions.

Rental Property Purchases

In the last couple of years, CHMC and other insurers have stopped insuring rental properties meaning that to buy an investment property you will need 20% - 25% down payment. When considering the purchase of a rental property there is one key factor that must be in line. Cash flow! If you are out of pocket every month on a property, it is not a good investment. You need to ensure you are bringing in enough rent to cover the mortgage, taxes, strata fees and insurance. For more information about buying or refinancing a mortgage, call me today!

Feels like the first time

We are nearly half way through 2014 and there is no doubt that the market is stronger than years past. A big difference is the increase of first time how buyers who are entering the market and buying up condos and townhomes. With prices remaining stable and interest rates at all-time lows, now is a wonderful for first time home buyers. A pre-approval can be held at 2.99% for a 5 year term. Meaning that you can buy a condo for $250,000 with just $12,500 down payment and have monthly payments of just $1160. That is lower than most rents! If you have a little money saved and want to explore buying a home, I can get you pre-approved in a day. And remember, my services are free to you so please call me today!

Ever changing

It has been another week of changes in the land of mortgages. CMHC announced last Friday that it would no longer be offering insurance for home valued over $1 million. It will also eliminate insurance for the financing on construction mortgages for multi-unit condominiums. This will certainly impact larger cities like Vancouver, Toronto and even Calgary. In an ever changing market, it is important to know how regulatory changes will affect you if you are considering buying a home or refinancing. Please contact me any time to review your situation and make sure your mortgage is in line with you financial goals. And remember, my services are free to you so please call me today!

Part-time income

Do you have a part-time job and wish to buy a home? If you have been working for the same company for 2 years, lenders will allow you to use your part-time income by way of a 2 year average. This means that we average your gross income from your T4s for the past 2 years and use that income to qualify you to buy a home. For more information about buying or refinancing a mortgage, call me today!

Home Owners Grant - How to get $570 off your property taxes

If you are a current home owner, you will be receiving your property tax bill shortly. You may have to pay this bill yourself or, your lender may be collecting the taxes on your behalf. Either way, if you live in the home you are eligible for the Home Owners Grant allowing you to deduct $570 off your tax bill. You must claim this grant by mailing in the ticket at the bottom of your property tax bill or claiming it on your municipality's website. Please contact me with any questions. For more information about buying or refinancing a mortgage, call me today!

Bank of Canada did not raise prime

The Bank of Canada met this morning and, to no one's surprise, the prime rate has remained unchanged. Although the economy is looking promising, it has not recovered enough to merit an increase in the prime rate. There are concerns about the Canadian dollar as well as the trade deficit from the Spring. We are not expecting any change to the prime rate for about another year. No change in the rate means that if you have a variable rate mortgage or a line of credit, your rate will not be changing. I suggest paying more than the minimum payment on variable rate mortgages because every extra dollar goes straight to the principal. This means you pay your mortgage off faster and, when rates do go up, if you wish to lock in a fixed rate, the mortgage balance will be lower. Ask me how to arrange extra payments today and I will be happy to help! If you are looking for advise about a new or current mortgage, please call me today!

Good Reason

The last week of May is upon us and soon we will be half way through 2014. Where has the time gone? It also means we are inching closer to 2015 when rates are expected to rise. Spring market has been quite strong this year and, if you are considering buying a home, make sure you get pre-approved before you start shopping. There are 2 excellent reasons for this. First of all, we can then help you to determine your purchasing power so you can be confident that you can qualify for the mortgage amount you need to buy your home. Secondly, we can hold interest rates for you for up to 4 months. Knowing how much you can spend on a home is important so you can shop in the right price range and have a good understanding of the monthly payment commitments. If you are looking for advise about a new or current mortgage, please call me today!

Challenged Credit

If you have had challenges with your credit because of loss of employment, illness or divorce, there are lenders who will be willing to explore offering you mortgage financing. Many of these lenders have competitive rates and are willing to use part time income, child tax credits and alimony. If you have money for a down payment and wish to buy or, own your home and need new financing, call me today! For more information about buying or refinancing a mortgage, call me today!

Rental Income

In a changing economy, many people consider buying a home with a rental suite to help to offset the monthly overhead of owning a home. Many lenders will allow us to use rental income to help to qualify for a mortgage but don't count on being able to rely heavily on rental payments. Most lenders will only use 50% of the rental income towards qualifying for a home purchase. There are a few lenders who will consider up to 90% of the rental income so make sure you know how you qualify before you write an offer on your new home. For more information about buying or refinancing a mortgage, call me today!

Dotted Line

There has been a lot of press around low interest rates over the last few weeks. Products from many companies offering unreal rates and hoping borrowers will blindly sign on the dotted line. Before you put a pen to the paper, make sure you understand the fine print on low interest rate mortgages. Many of the products I have seen lately are basic mortgage products that could end up costing the borrower thousands of dollars in the long run. These mortgages offer few perks such as the inability to get out of the mortgage unless you sell your home, the inability to top up, blend or assume the mortgage at a later date, limited pre-payment options and penalties that are as high as 3% of the balance of the mortgage. When shopping for a mortgage you can look at it 2 ways, you can get the lowest rate possible and risk paying more in the long run or, you can take a competitive rate with all the flexibility you will need to save money in the long run. Ask me today about the best options for your mortgage. If you are looking for advise about a new or current mortgage, please call me today!

State income premiums

Genworth and Canada Guaranty will continue to provide mortgage insurance for self-employed borrowers using stated income programs. The premiums, however, will be increasing. For a self-employed borrower the premium to put a 10% down payment was 4.75% which is increasing to 5.45%. Premiums decrease as the down payment increases and are charged based on the mortgage balance. For more information about buying or refinancing a home using a self-employed stated income program, call me today!

Solution

While CMHC has been cutting programs and announcing that it will insure less mortgages in 2014, private insurers and lenders have stepped up to fill the gap. Stated income through Genworth and Canada Guaranty remain intact and, this week, lender Home Trust, has announced an uninsured product called their "90% Solution" allowing borrowers to buy a home with as little as 10% down without the use of insurance. The market remains very hot and, first time home buyers are helping to relieve some of the pressure by buying condos and town homes. The increase in markets activities is usual for this time of year and should remain strong through the summer. Sellers should consider getting listed sooner than later as many families wish to secure homes for summer moves. If you are looking for advise about a new or current mortgage, please call me today!

Subject to Financing

You should always have a subject to financing in place when buying a home. Being pre-approved is great to know your purchasing power and hold interest rates however, a pre-approval is not a full mortgage approval. Lenders must approve the borrower AND the property when issuing a full approval. During your subject removal, job letters, pay stubs, tax information and property details are collected. For more information on the process, call me today!

Stated income lives on!

After last week's big announcement that CMHC was no longer insuring borrowers who wish to own more than 1 primary residence and eliminating stated income for self-employed borrowers, Genworth Canada and Canada Guaranty, Canada's second and third largest mortgage default mortgage insurers, came out to say they were not getting rid of their stated income program. This means there are still good options for those who are self-employed to be able to qualify for a mortgage despite writing down their income on their personal income taxes. The market is very hot in the Lower Mainland right now with bidding wars occurring and multiple offer situations. If you are wishing to buy a home, please contact me to get pre-approved for your financing. If you are expecting a lot of competition for a particular home, we can even get you a full mortgage approval upfront so you can make a subject free offer. Ask me today about getting approved! If you are looking for advise about a new or current mortgage, please call me today!

Self-Employed Borrowers

With CMHC changing how self-employed people qualify for mortgages, there are now 3 options for qualifying for a mortgage when you work for yourself. 1. Have at least 10% down and use a lender who can qualify you without CMHC insurance (fees may apply). 2. Use your income as claimed on your Notice of Assessment. 3. Bypass CMHC and put over 20% down (usually 25%) allowing us to work with a lender who does not require CMHC insurance to qualify you. If you would like more information... Call me today!

Two HUGE Announcements

There are 2 huge announcements this week. The first is that, effective May 30th, CMHC has cut 2 significant programs. No longer will self-employed borrowers be able to use stated income, they will have to provide third party income validation. Also, CMHC has eliminated the second home program which allows Canadians to purchase a second home. Although these products account for less than 3% of CMHC's insured business, this is still a major change for some borrowers. In happier news, I have a HUGE announcement to make. I am absolutely thrilled to announce that I have moved offices and am now a part of the Langley based Dominion Lending Centres office called the Mortgage Negotiators. Most of my clients are in the Langley area and I am happy to have moved my license home. Absolutely nothing with my business is changing and I will continue to be available anytime for all of your mortgage needs. My contact information will remain the same and I want to thank the team at the Mortgage Negotiators for welcoming me with open arms. If you are looking for advise about a new or current mortgage, please call me today!

29 Meetings

The Bank of Canada met this morning and, to no one's surprise, they kept the prime rate steady. This is the 29th consecutive meeting without a rate change which has left prime stable since September 2010. Fixed rates have also remained rock bottom with rate sales and specials jumping out everywhere. Buyers are eagerly picking up properties across the Lower Mainland and several of my clients even been in bidding wars on homes last week. If you are considering buying a home, now is the time to get pre-approved. Determining your purchasing power before you start shopping is key. By knowing what you can afford, you can better know what price range to shop in and save time and money when the perfect home becomes available. Call me today to get started.

Home Inspectors

When looking at a new or previously owned home, it is always a good idea to get a home inspection. A certified inspector can help you to find many problems with a new home to ensure you are not surprised down the road. They may find small problems such as disconnected fire alarms or leaking faucets or, they may find larger problems like mold, foundation cracks or faulty electrical wiring. If you are buying a new home and wish to speak with a certified home inspector, call me today and I will be happy to refer you. If you would like more information...Call me today!

I can help across Canada

Did you know that as a mortgage broker, I can help clients all across Canada. I have helped clients buy homes and refinance mortgages in Nova Scotia, Ontario, Saskatchewan (Go Riders!), Alberta, BC and the Yukon. Whether you are looking to invest in another province or are being relocated for work, I can help you to secure the financing you need. If you would like more information... Call me today!

Flip a coin

Happy Tuesday! This week we have seen a lot of lenders offering different rate sales and promotions and some lenders have announced a drop in their qualifying or benchmark rate. When qualifying for a variable rate mortgage, a line of credit or a mortgage term shorter than 5 years, lenders have been required to use a qualifying rate of about 5.34%. This week that rate has dropped to 4.99% with many lenders making it easier to qualify for non-5 Year Fixed products. Now is definitely the time to get pre-approved if you are planning to buy a home before July. Rate holds are good until the middle of July and can protect you against any rate hikes which may arise. Also, if you have your home purchase into CMHC prior to May 1st, you can avoid the premium increase. Call me today to get started!

Premium Increases

There are two BIG things to announce this week. I'll start with the good news. The Bank of Canada met this morning and, as expected, the Prime rate did not go up. Variable rate mortgage and line of credit holders can breathe another sigh of relief. We are not expecting increased until 2015. Now for the not so good news. CMHC has announced that starting May 1st, their premiums will be increasing by 15%. This is not a huge upset for mortgage borrowers as for an average home buyer it means only a $5 per month increase in their payment. Genworth and CG have not announced any increase and it is likely that lenders will begin to favor those insurers. So long as you have a home you are going to buy and the application is in to CMHC prior to May 1st, you will get the current premium. After that date, premiums increase to 3.15% from 2.75% for a 5% down payment, from 2% to 2.4% for a 10% down payment and from 1.75% to 1.8% for a 15% down payment. If 2014 is the year you wish you buy a home, call me today to get pre-approved and start shopping!

What is CMHC?

CMHC is the Canadian Mortgage and Housing Corporation and they provide mortgage loan insurance for home buyers with less than 20% down payment. The insurance is mandatory by law and is put in place to protect the mortgage lender against default. Basically, it is an insurance premium charged to borrower to ensure that if the payments are not made, the lender can get their money back. Borrowers pay a premium of their mortgage amount which is rolled into the mortgage. CMHC, Genworth and Canada Guaranty are Canada's 3 mortgage loan insurance providers. Genworth and CG have not yet announced any premium increases. If you would like more information... Call me today!

RRSPs

The deadline to contribute to your RRSPs is March 3rd this year. If you have considered buying a home, saving your down payment in an RRSP is a wonderful way to do it. Each first time home buyer can use up to $25,000 of their RRSP on a down payment for their first home tax free. You must repay the funds within 15 years. If you would like to speak with one of my financial advisor partners about contributing to an RRSP, contact me today!

Being Fancy

Interest rates continue to be rock bottom and it is prompting tons of first time home buyers to make the leap and jump into a home of their own. While prime remains low, a new report from the Canadian Association of Accredited Mortgage Professionals shows that in 2013, 82% of new mortgage borrowers opted for fixed rates. It's not much of much of a surprise since just a few short years ago 5 year fixed rates were close to 6%. If you are considering buying a home or refinancing your current mortgage, let's talk about options. Ensuring your mortgage is set up to meet your goals is key to your financial success.

Bite the Bullet

February is upon us and Spring is right around the corner, at least the real estate market thinks so. It was a great January for the Jamie Moi Mortgage Team. In fact, based on mortgage volume, we had our largest January in 4 years! 2014 is looking good! I often have clients ask me about whether or not they should make the leap from a condo to a house or, take the in between step of buying a town home. There are new articles out, such as the one below, that suggested that making the leap is the safer thing to do. Several factors such as employment stability, low interest rates, a stable real estate market and the high costs of real estate fees and property transfer tax are considered. It is concluded that making one move is cheaper than making 2. Because interest rates are so low, it makes it easier to pay down a larger mortgage faster than jumping from a mid-sized mortgage to a larger mortgage mid-stream. Are you ready to buy a house? Ask me!

Renovating to sell?

If you are planning to sell your home and thinking of doing renovation to increase salability, consider talking to a real estate agent before you start flinging paint brushes and ripping out carpets. While some renovations have excellent returns on investment, others are not worth making. Also, some buyers are looking to put their personal touches on their new home. Knowing you home's market value before and after a renovation could save you thousands of dollars. If you would like a free consultation with one of my most recommended realtors, call me today! Call me today!

Rental Restrictions

When looking to purchase a condo or town home, one important thing to research in the strata bylaws is whether or not the complex allows for rentals. Allowing rentals can be seen as both positive and negative. On one hand, rentals allow owners the flexibility of moving without needing to sell however, the complex may suffer from residents who do not express as much care for the complex's maintenance. You must decide what is right for your family so make sure to ask your realtor about rental restrictions in properties you look into buying.

Misconception

It has been a smoking busy time in the mortgage market this week. Tons of first time home buyers seem to be leaping head first into new homes. It's great! There is a common misconception that repeat home owners have a harder time qualifying for buy homes than first time home buyers. This is not true. As a repeat home buyer you can still qualify to buy a home with just 5% down and, those funds can even be from a gift. Lenders evaluate your income and credit just like any other application so, it is no harder to buy a second home than it is to buy the first. If you are considering upgrading to a larger home, contact me! I can walk you through the steps and show you exactly what you can qualify to buy.

Come on, get in!

Another busy week in the world of mortgages and, despite the Bank of Canada Governor saying that long terms rates may be on the rise, experts say there is nothing to be alarmed about. Several banks came out this week with rate specials including lots of variable options. If you are planning to get into the market in the Spring, now is the time to get pre-approved to secure your low are. The process is simple and easy and, as a mortgage broker, I take care of all the leg work for you. For those of you who currently have a variable rate mortgage, ask me about how you can dramatically increase the equity in your home in a short amount of time. 2014 is shaping up to be a strong financial year for Canada and taking advantage of low rates now is key to financial security in the future.

Bruised credit

Sometimes credit challenges happen. Missed payments, balances over the limit, collections. It is important to remember that there are lenders out there who work specifically with clients who have bruised or damaged credit. Whether you own a home currently or are looking to buy, we can help you to explore all the options and get you set on the right path. It never hurts to ask so call me today and let's start saving money! Call me today!

High interest credit cards

Have you considered consolidating high interest credit card debts into your mortgage? Did you know that if you make minimum payments of $125 a month on a $5000 credit card with an 18% interest rate, it will take you 23 years to pay it off! You will actually be paying over $7000 in interest just to borrow that initial $5000. If you would like to learn about options for consolidating, give me a call!

Renewals and Running Accounts

When a lender registers a mortgage on a title they get to choose if they wish for it to be a running account. If they choose this, the mortgage has the ability to be readvanceable and the client can opt to refinance without needing to see a lawyer. The downside is that even when the mortgage term is up for renewal, the client cannot change to a new lender without visiting a lawyer to break the running account charge. The client is tied to that lender unless they pay the legal fees. When shopping for a mortgage, ask if the mortgage is registered as a running account and the benefits and pitfalls of that kind of product.

Cut backs

The housing market is looking strong as we get to the mid-way part of January and there are now talks that longer term interest rates could be on the rise as early as May. The Bank of Canada Governor Mark Poloz expects this rise in long term rates because of tapering in the U.S. bond market. This month the U.S. Federal Reserve cut back it's buying of bonds which may result in increased bond values come the late Spring. Not effect is expected for shorter term rates or the Prime rate. If you are considering securing a longer term rate, now is the time to do it. Call me today!

High interest credit cards

Have you considered consolidating high interest credit card debts into your mortgage? Did you know that if you make minimum payments of $125 a month on a $5000 credit card with an 18% interest rate, it will take you 23 years to pay it off! You will actually be paying over $7000 in interest just to borrow that initial $5000. If you would like to learn about options for consolidating, give me a call!

I can't help you lose 30 pounds...

The New Year is upon us and for many people it is a fresh start. Did you make resolutions this year? Whether personal, spiritual, physical or financial, the goals you set for 2014 are likely very present for you right now so it is a good time to get started on working towards them. While I cannot help you to lose 30 pounds or develop s stronger relationship with your spouse, I can help you if your plans for 2014 include buying a home or consolidating some debts. The housing market across Canada is looking stable and rates remain very low. Getting pre-qualified for a mortgage has never been easier and it never hurts to gather information and explore your options, even if you don't plan to make any changes until later in the year. Give me a call today and let me help you make 2014 the best year yet!

I can't help you lose 30 pounds...

The New Year is upon us and for many people it is a fresh start. Did you make resolutions this year? Whether personal, spiritual, physical or financial, the goals you set for 2014 are likely very present for you right now so it is a good time to get started on working towards them. While I cannot help you to lose 30 pounds or develop s stronger relationship with your spouse, I can help you if your plans for 2014 include buying a home or consolidating some debts. The housing market across Canada is looking stable and rates remain very low. Getting pre-qualified for a mortgage has never been easier and it never hurts to gather information and explore your options, even if you don't plan to make any changes until later in the year. Give me a call today and let me help you make 2014 the best year yet!