Mortgage rates are going up despasito

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Mortgage Rates Are Going Up DespASITOIn the past couple of weeks since the Bank of Canada publically increased the interest rate to 0.75% from 0.50%, we have been notified of by our numerous lenders that their mortgage rates are going up “despasito”, (slowly).

The increase have affected immediately to those borrowers who had a variable rate mortgage, and then to those who are applying for new mortgages either for purchase or refinance purposes and in both variable and fix rate mortgages.

The rate increase effect has been felt also in an increase of mortgage applications as the escalating homeselling price has been not only slowed down but actually reduced in some markets in Ontario.

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1-2-3 Mortgage application

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1-2-3 Mortgage application

1-2-3- Mortgage applicationThe simplest, quicker and most secure online mortgage application is here for you now.

Now is as 1 2 3 to apply to get the funds you need.

Simplest personalized & secure link form you will fill

Your secure personalized link takes you to a most secured application that you fill from the comfort of your home, then get the good news right there.

We care, apply now

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New qualifying federal mortgage rules changes

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New qualifying mortgage rulesNew qualifying federal mortgage rules changes

On October 3rd, Bill Morneau, Minister of Finance announced “Preventative measures for healthy, competitive and stable housing market”. The intention is to address the growing household debt and rapidly rising house prices.

Learn about the new qualifying federal mortgage rules changes that will affect your mortgage affordability during the qualification process and what can you do to qualify for that mortgage that you are seeking

The new rules affect the CMHC insured and Low Ratio Bulk Insured Mortgages.

These new rules might definitely affect the housing market as intended, affecting also a through the qualification process a great number of borrowers with intentions to purchase a home or to renew their current mortgage.

How are these changes affecting you as a borrower and most important what can you do right now to avoid negatively affected?

The following links explain both affected types of mortgages Select the type of mortgage that you would need to purchase of to refinance your current.

What kind of mortgage do you need information about?

For new home buyers, new mortgage rules select according to the amount of your downpayment. Under 20% down payment = high ratio mortgage. Over 20% down payment = low ratio mortgage

New rules high ratio mortgageHigh ratio (less than 20% of downpayment) home purchase or refinance
New rule low ratioLow ratio (more than 20% of downpayment) home purchase or refinance

You can also apply on line now or Call or text 416-262-7139 and request a confidential one on one meeting to look at specific answers and help you get the best mortgage deal.

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A Co-signer story

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A co-signer story Considering co-signers to help your mortgage may be a very smart thing to do in regards to money-saving, however, this advantage may come with some potential risks that may end up consuming some of those savings or even worse, potential legal conflicts.

A good family that I know wanted to buy a house to stop renting, they had been renting for a long while and they wanted to start owning, however, their income was insufficient to prove affordability to a lender that they would be able to repay the requested mortgage. They have saved for their down payment, their credit was ok, It was only the insufficient income.

They approached a good friend in whom they trusted enough to ask to help them being a co-signer so that they could qualify to purchase the home for their family. He would need to commit to their mortgage obligations and responsibilities, except that he wouldn’t be paying the monthly mortgage payments unless the couple couldn’t make them.

The family was able to qualify and purchase their home, they were able to make the payments and live a better life, build some wealth and save more money than when renting. The co-signer was offered a very small percentage of the value of the property for the diligence of being included in the property title.

Suddenly, the good friend that was the father to a teenager passed away, this brought some complications and extra legal work and expenses to the family a couple of years after as they were planning to refinance their mortgage, and they needed to remove the co-signer from the title.

This is an example why it is wise to accept the mortgage protection plan offered with your mortgage.

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No fee refinance promotion

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Street Capital No Fee RefinanceIf you are looking to refinance your current mortgage this limited time promotion might help you save even further.

To optimize your savings, lower your borrowing cost, better your cash flow and most of all meet the financial goals you have set for the short and medium future, consider this not so common promotion that we have just received. It may come in the nick of time for you.

In this limited time promotion, the lender street capital takes care of the legal fees on your behalf when you choose a 5 years term refinancing mortgage, whether you choose a fixed or a variable rate.

The minimum loan amount, for this limited time promotion, is $250,000 and borrowers can refinance their mortgage at the competitive street capital mortgage rate.

Important benefits that you as a borrower need to consider if you are planning to refinance your current mortgage are:

  • Single point of contact at FCT (Who will service the legal process of your mortgage)
  • Expedited funding process
  • In-home signing appointment/notary office in BC

What this promotion includes is:

  • All discharges
  • All cancellations
  • Funding
  • One signing appointment
  • Payout of all secured and unsecured debts (Refinance)
  • Payout of current mortgage (Straight Insured Refinance)
  • Any applicable taxes
  • A title insurance policy in favour of the lender

FCT stands for “First Canadian Title”

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Myths about reverse mortgage

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The Myths of Reverse Mortgage

Here you have the Myths about Reverse mortgage. what to expect and what are the real facts

Myths:

  • The bank owns the home.
  • People with a reverse mortgage will owe more than their house is worth.
  • Reverse Mortgages are too expensive because the rates are high.
  • A reverse mortgage is a solution of last resort.
  • A Home Equity Line of Credit (HELOC) is a better option.
  • The bank can force the homeowner to sell or foreclose at any time.
  • The homeowner cannot get a reverse mortgage if they have an existing mortgage.

Click here to get the facts

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B2B Bank Equity 50 program

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B2B Bank Equity 50 program

B2B Bank Equity 50 ProgramB2B Bank’s Equity 50 program is great for individuals that have a hard time proving income in the traditional sources. Clients can access up to 50% of their home value on a first mortgage or refinance the current mortgage.

This program has proven to be especially popular with those in pension, and other people whose income does not meet their banks requirements of affordability, self-employed people whose notice of assessment income is not enough and part-time employees.

The B2B Bank’s Equity 50 program offers very flexible ratios requirements that are derived from a low-income period suffered by the family, easing the way out when families struggle to meet their current mortgage payments with their current lender.

If you are currently in a similar position as described above, you may consider the B2B Bank’s Equity 50 program as an alternative to refinance and consolidate your debts and better your current cash flow that may help you get back on your feet sooner rather than later.

Let me help you with your mortgage!

 

Clients can be self-employed, be on fixed income (such as pensions), or simply have limited income reported to CRA

400,000 Maximum loan amount

Requirements

The client must have a domestic (Canadian) source of income

Credit score must be fair, good or excellent

Property must be a marketable property (close proximity to major urban centre)

Must be owner occupied primary residence.

Get more details now!

Contact me now

Be prepared for your mortgage

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Be prepared for your mortgage

Plan Ahead and SaveAnticipating for your coming mortgage renewal, refinancing or home purchase will always pay off, it’s a smart decision and an excellent financial practice. Since you are not in control of all the factors that affect your future transaction, it is most convenience to stay ahead of the curve.

Unless you prefer the stress of higher interest rates, mortgage penalties and being declined in the worse scenarios, you surely want to plan ahead every step of your coming mortgage process.

Whether you know where to start or you have no clue, that is not the issue here, because with the right guidance, all you need to know is why you want or need a mortgage. We’ll take care of the how and perhaps even the when.

Timing is important, have your mortgage assessment practiced 6 months ahead to avoid rate increases, missed opportunities, or even false expecttations

If you are a first time home buyer,  planning to renew your mortgage or to refinance existing debt and would like to know about your mortgage, prepare the following before you arrange your mortgage assessment meeting.

  • Personal picture ID’s including your SIN
  • Employment history
  • Information about your income and most recent supporting documents
    • If not all your income can be supported, detail what you can and the type of income you earn (Waitress tips, construction workers, etc)
  • Details about your financial commitments or debts
  • Details about your savings
  • Your home rental or living history
  • Current mortgage statement (for renewals and refinancing)
  • Have your questions ready

There are always more chances you help you when you plan ahead of time

Practice your mortgage assessment, then just follow your strategy, say NO to procrastination and achieve your goal. Where there is a will, there is a way!

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Effects of Recession

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RecessionEconomists officially define a recession as two consecutive quarters of negative growth in gross domestic product (GDP). This is a significant decline in economic activity spread across the entire country.

A short analysis of how recession might affect our families and the positive perspective at the end of all

But, how does affect you as a home owner with a mortgage?

There are a number of different scenarios and a solution to a single scenario should not be considered as a solution to all.

The impact of an economy in recession, besides the slowdown of the industrial production and manufacturing, might be a greater number of job losses affecting first the low levels of a work force, like in retail positions, service industry as the consumer spending slows down, due the decline in real income.

So a small business sees less dynamism in sales ,products may stay longer in shelves as demand of the products slows down as well, obtaining a line of credit now should be considered to improve cash flow

Large companies may stop hiring or even reduce workforce or reduce benefits and other alternatives seeking to cut costs.

May I offer you a one on one advise?

In regards to credits, as income from sales or salaries decreases, repayments to debts may suffer the same effect, damaging credits and leading to reduction of possibilities to obtain new credits or even to keep existing ones, seriously affecting the cash flow in a family or business.

Borrowers with current mortgages with fixed rates, may be more at peace than those with a variable rate if the devaluation of the currency persist, as the bank of Canada may be dragged to increase the prime lending rate and mortgages with variable rates may become un-affordable suggesting an early refinancing early rather than late may be the best to do.

For those who are currently renting and planning to finally purchase their home in the near future, and their source of income is not at risk of being lost, the best advise might be to accelerate their plan as much as possible (see mortgage assessment) and secure a mortgage with a low fixed mortgage rate and take advantage of the first time home buyers credits offered by the government.

The good part of the story is that history shows that those who were prepared to stand during recessions, may become stronger once the economy rebounds, and it will, there is no question about it. They be stronger as some competitors may fade or even be out of business because they were not prepared.

Recessions don’t last forever be prepared!

Contact your mortgage agent

A refinance story

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A refinance story

Hawaii calm beach

Hawaii calm beach

After a period of some stressful time in their life, this including hard work, a change of workplace, some family illnesses and some accumulation in the credit card usage , a client called me asking for some financial advise. Their goal was to recuperate their financial stability, to stop accumulating debt with high interest rates that were consuming a great deal of their fixed income and mainly to get a piece of mind to continue.

We had a chat a coffee shop and before my medium size of black coffee was finished we were filling up their online mortgage application, I simply learned what they wanted and their particulars, the rest was just a matter of simple paper work that we both worked together on.

Can I help you refinancing?

After a few days they were able to reduce considerably their high cost of borrowing and by the first month they were able to feel the financial difference, that was in the very short time, on top of that a projection of their future debt accumulation showed them a great difference in the overall reduction of their debt. Freeing cash using the equity in their home without losing nor risking any future home resale value was the triggering tool that gave them a piece of mind.

After the second month they were able to travel to Hawaii to realize a long due trip they had promised to each other to enjoy.

Today their mortgage payments are low and their debt is on the decline

As a token of thank you they shared the following pictures taken from their hotel room balcony, a time they enjoyed and will remember in their lifetime.

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