Marie-France Lavigne and Michele Quinn – Dominion Lending Centres The Mortgage Source 10145 | mortgages
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mortgages

financing tips, home purchase, mortgages / 28.05.2019

When is it time to think about saving for a down payment? I would say about a year before you think about buying a home. While that’s ideal in today’s world, we often do not have much time to save for a down payment. Sometimes your landlord is planning on retiring and wants to sell the property. How do you get a down payment? Here’s a few ways to get a down payment for your home: Save – it’s old fashioned but it works. Open a Tax Free Savings Account (TFSA) and put a set amount into it. If you don’t...

mortgages / 22.05.2019

Working with your DLC mortgage professional can save you thousands of dollars by making the most of your variable rate mortgage in a shifting market. In the past year we have seen an increase in the prime lending rate by 1%. For those home owners with variable rate mortgages who secured a low discount, savings can be gained moving to a new higher discount variable mortgage rate even if prime is higher than before. How is that possible you ask? Consider this. Ed and Anna refinanced their mortgage in 2016 at prime minus .15% (2.55% at the time). The original mortgage was $556,000...

home purchase, mortgages, Uncategorized / 07.05.2019

You know at one time I could give you a quote over the phone and not worry that I would be too far out. Today is a totally different story, here are some of the variables that come into play. 1. What’s your credit score? A 700 FICO score is the new 650 for many lenders as their investors demand better quality borrowers. 2. Where is the property located? Rural areas are getting harder to finance. 3. Is it an insured file, are you putting less than 20% down payment? 4. Is it insurable? Are you putting down more than 20% on the purchase...

home purchase, mortgages / 04.04.2019

It’s important to understand the home buying process, so here’s a 7-step checklist. Step 1: Down Payment The hardest part to buying a home is saving the down payment (a gift from the Bank of Mom & Dad also works). • For purchases under $500,000 minimum down payment is 5%. • Buying between $501-999,000 you need 5% on first $500,000-PLUS 10% down payment for anything over $500,000. • Buying a home over $1 million you need 20% down payment. For any home purchases with less than 20% down payment, you are also required to purchase Mortgage Default Insurance. Step 2: Strategize, Define Your Budget and get Pre-Qualified Unless...

mortgages / 28.03.2019

To begin with, these programs are not scheduled to begin until September of this year assuming no governmental changes. I have taken the time to break down the math a little further to show the potential savings. Bear in mind that the incentive funds of up to 10% on a new home and 5% on an existing home are merely an interest free loan that must be repaid upon sale of the property. This is for first time home buyers and household income cannot exceed $120,000 per year. I will use the example that was in the budget release that illustrates the very...

home purchase, mortgages / 20.03.2019

In its fourth fiscal plan, the Trudeau government spent its entire revenue windfall leaving the deficit projection little changed. In this election budget, Finance Minister Bill Morneau announced $22.8 billion over six years in new spending initiative mostly for homebuyers, students and seniors. Trudeau promised in his first budget to have eliminated all red ink by this year. He will instead head for an October election with an annual deficit of nearly $20 billion. Ottawa is projecting a string of double-digit deficits through the end of 2022. The key debt-to-GDP ratio is expected to be 30.8% this fiscal year and edges...

home purchase, mortgages, real estate / 07.03.2019

Homebuyers are starting to see relief and the pendulum swing their way for the first time in years. It’s no surprise, as we’ve have had a collision of circumstances that have both slowed the local real estate market and dropped prices down as much as 30 per cent. We have the stress test forcing borrowers to qualify at two per cent higher, a speculation tax in B.C. and raised interest rates from record lows. We had a seller’s market with less than four months of supply on the market, then four to six months of a balanced market and now a buyer’s market,...

financing tips, mortgages / 21.02.2019

1. Too Much Debt When home buyers seek a mortgage, the words “debt-to-income ratio” quickly enters into the vocabulary, and it’s not without reason. Too much debt is a red flag to lenders, signifying you may not be able to handle credit responsibly. Lenders will analyze how much debt you carry and what percentage of your income it takes to pay your debt. Debt ration is just as important as your credit score and payment history. Two affordability ratios you need to be aware of: • Rule #1 – GROSS DEBT SERVICE (GDS) Your monthly housing costs are generally not supposed to exceed 32%...

mortgages / 07.02.2019

Many of my clients and friends regularly ask me when or if they should consider a refinance. Here are 4 quick questions that I ask of them. The answer they give me, will very quickly tell me if we should be taking a deeper look at the mortgage refinance options available to them. What do you believe the current value of your home is and what is the outstanding balance on your mortgage? Have you ever heard your mortgage broker or banker talk about “loan to value”(LTV)? They are looking to determine what your outstanding balance of your mortgage is as a...

mortgages / 05.01.2019

It is a reoccurring but common misconception that you will qualify for a mortgage in the future because you have qualified for a mortgage in the past. This is not accurate! Do. Not. Assume. Anything. Even if your financial situation has remained the same or has improved, securing mortgage financing is more difficult now than it has in recent years. The latest changes to mortgage qualification by the federal government has left Canadians qualifying 20-25% less. On top of that, guidelines that lenders would use in determining your suitability have been replaced with non-negotiable rules and declarations. As mortgage professionals, we keep up to date...