Mortgages

Changes in Government backed Insured Mortgages

Fri, 11 Mar 2011 11:40:48 GMT

In January the Federal Government announced changes to the rules for government backed insured mortgages. These changes will come into force on March 18, 2011. The changes are as follows:

The Maximum amortization period has been reduced to 30 years from 35 years. This applies to new government insured mortgages with a higher loan to value ratio of 80%.

The percentage of home value to refinance a mortgage against has been reduced to 85% of the home value, down from 90%.

To withdraw government insurance backing on lines of credit secured by homes, such as Home Equity Lines of Credit. This will start April 18th, 2011.

This information was drawn from a publication from the Victoria Real Estate Board.

To see how these new changes will be applied to the CMHC (Canada Mortgage and Housing Corporation) you can follow this link http://www.cmhc-schl.gc.ca/en/corp/faq/faq_008.cfm

Charmaine Harris,

Managing Broker / Owner,

Coastal Life Realty Ltd.

American Purchasers

Thu, 13 May 2010 23:30:17 GMT

Please see the attached mail out regarding American Purchasers and mortgages created by Ron Demmers - Mortgage Broker

FLYER (PDF)

Can Americans Qualify for Mortgages for Canadian Property?

Sat, 24 Apr 2010 16:14:42 GMT

Can Americans Qualify for Mortgages for Canadian Property?

Yes.

Finally there is a program that allows American residents to purchase or refinance Canadian properties by using their U.S. tax returns and U.S. Credit bureaus.

U.S purchasers of either primary or secondary residences may borrow up to80% of the value of their home.

Qualification is based on the same debt servicing and credit score requirements as Canadian purchasers. These U.S. clients will benefit from the same low fixed and variable rates now available to Canadian buyers. As of April 24^th 2010 the 5 year fixed rate for this program is 4.6% and the variable rate is prime minus .40% ( presently 1.85% ). Purchasers must demonstrate the income required to cover U.S. and new Canadian debt.

American borrowers will need to provide two years of their Form 1040 and W2. A U.S credit bureau report will also be required.

If you are interested in this program, please call Ron Demmers, Mortgage Broker, toll free at 1-877-925-9079

Disclaimer: Coastal Life Realty Ltd. or Charmaine Harris has provided this information as a convenience to readers and does not accept any liability for the actions of Ron Demmers or Verico Paragon Morgage Group.

Why would I use a mortgage broker over my own bank?

Thu, 08 Apr 2010 21:48:48 GMT

Why would I use a mortgage broker over my own bank?

It might make sense to use your own bank instead of a broker, but you won’t know unless you shop around.

Mortgage brokers are professional mortgage shoppers.

1) They are in touch with dozens of lenders and can tell you in short order what the most competitive rates are.

2) They can tell you if your lender or bank lends mortgages in your area.

3) Different lenders lend for different purposes and to different clients. For instance, if you are self employed, some lenders will treat you more favorably than others.

4) Many loans officers at branch level are just getting started in their careers and they are not as familiar with the mortgage process as a seasoned mortgage broker. For instance, many lenders have leeway in what documentation is required such as income confirmation and property appraisals. Mortgage brokers know which documents are essential to the lenders and which aren’t. This can save you time and headache.

5) Brokers only get paid if they get you what you need. In almost all instances, there is no cost to you. If there is going to be a cost, it must be clearly be spelled out in advance. Because a broker gets paid when the job gets done, they answer their phone in the evenings and on the weekends.

6) In some instances, a broker will not be able to beat your bank. A good broker will let you know. Let a broker find you the best deal they can and compare it to your bank. You have nothing to lose and a lot to gain.

For more information, call Ron Demmers anytime at 1-877-925-9079

Interest rates went up

Wed, 31 Mar 2010 17:22:57 GMT

Should you be concerned about the increase of Mortgage rates?

If you saw the news yesterday you might be feeling a bit of a panic. It seems that anytime they can run with a ball they will. I am not going to give you any recommendations on if you should lock in your mortgage now or hang tight. I also won’t promise that rates will continue to go up or down. If we all knew those answers we would have clear idea of where to go from here.

What I will tell you is that if you are shopping for a new mortgage or you have a variable interest rate on your current mortgage there are two things you should do:

1) Ask your lender to provide a rate guarantee for you.

Depending on the lender they will hold for 30 - 120 days with the norm being 90 days.

This will ensure you can get the possible interest rate available to you. If the interest rates increase then you will get the guaranteed interest rate, if they go down you will get the lowest of the two.

2) Discuss with your lender the benefits and risks of different types of mortgages.

If you have your lender hold a rate for you it will eliminate panic and those knee jerk decisions. You will buy the time you need to evaluate your current situation, watch the market and find out how the different types of mortgages will affect you. Once you feel you have all the information you need you will be ready to make a decision.

First Time Buyers - Mortgage Info

Mon, 08 Mar 2010 16:07:45 GMT

Buying a house on the Gulf Islands may be easier than you think.
Get started with Ron Demmers, your Gulf Island Mortgage Broker.

With a purchase price of $225,000, a down payment of 5% ( $ 11,250 ),
your mortgage payment with a 5 year fixed rate of 3.89% and based on an amortization period of 35 years, would be $958.
With property taxes estimated at $100 per month, your monthly payment is only $1058.
In order to qualify for this payment you will need an income
of $36,000 per year. If you are buying with a friend or spouse, that is only $18,000 each.
Based on $10 per hour 40 hours a week, 48 weeks a year you make $19,200.
So it is truly possible!! ( other condition may apply )

How do you get started?

Knowing how much you can afford is a very important part of your home buying decision.
An experienced mortgage broker can quickly help you find out how much you can borrow.
In many cases, you will want to borrow less than you actually qualify for.
Start by deciding how much you want to spend each month.
Most first time buyers will use their present rent as a guide.
Owning your own home also involves the added expenses of home ownership such as maintenance.
Before owning a home, it is easy to spend money on impulse purchases.
Owning a home can involve focusing more of your financial resources on where you live.
For most people, buying their first home is the beginning of building their future.
Don’t let the complexity of buying a home stop you from getting on the road to a bright future.

When do I get started?

Buying a house is a big step to take.
Although it is possible to learn what you need to learn to buy a home in a matter of weeks, it is never too early to start learning about what is involved in the process of buying a home.
A patient broker can start by helping you understand what things cost, how much money you need for a down payment, and what the risks and rewards are for fixed or variable rate mortgages.
There is a lot to learn. Starting early and asking questions often ( and sometimes repeatedly) is the best way to ensure that you have the smoothest buying experience possible.

Should I use a mortgage broker?

A mortgage broker is a trained professional.
As brokers, they have access to many lenders and in most instances can get you a better interest rate.
In addition, an experienced broker can sometimes provide you a better borrowing experience, as they have often been in the industry longer than junior people at lender branch level.
Mortgage brokers are paid by the lender, not by you, so you have the guidance of an experience shopper working on your behalf at no extra expense.
As a first time buyer, you will need to be apprised of current programs available to help you buy your first home.

Is working with a mortgage broker confidential?

There are strict laws protecting the clients of a mortgage broker.
A broker is not allowed to share your information with anyone, including your Realtor without your express permission.
With a good broker, you will have a safe and beneficial place to discuss your questions and concerns, from the start to the finish of your home buying experience.

What if I have bad credit?

The first thing to do is fill out a credit application and have your credit bureau checked.
A mortgage broker will not send your information to any lender without your permission.
This allows you the chance to review your credit file and decide how and when to proceed.
The best way to start repairing your credit is to know exactly what is outstanding.
An experienced mortgage broker can review all your options and put you in contact with the best agencies to help you repair your credit.
With a little patience, it is possible to repair a lot of credit problems and get on the road to home ownership.

No charge consultation.

Different people need answers to different questions.
All questions are good questions.
It’s your future.
Ask how you can start building it now.
If you would like to begin to understand what is involved in buying your first home on the Gulf Islands please call or email Ron Demmers anytime.

Disclaimer: Coastal Life Realty or Charmaine Harris has provided this information as a convenience to readers and does not accept any liability for the actions of Ron Demmers or Ambro & Associates.