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!