Thursday, October 29, 2015

Mortgage Market: What we may expect from Trudeau's new government

The Liberals’ new majority gives them all the power they need to influence Canada’s mortgage market. Interest rates, mortgage policy and affordable housing initiatives will all be affected.
Here’s some of what the mortgage market can expect from Mr. Trudeau’s new government:
  1. Higher bond yields: Balancing the budget is not a priority for the Liberals until 2019. Trudeau is expected to go on a spending spree and bond traders aren’t keen about it. It suggests a greater supply of government debt and potentially higher long-term yields to come. That, of course, could mean at least slightly higher fixed mortgage rates than we’d otherwise see.
  2. A More Hawkish Poloz: The odds just dropped for a cut in prime rate. More spending by Ottawa puts less pressure on governor Stephen Poloz to stimulate the economy with rate cuts. The implied probability of a rate hike by next October has almost doubled, from 8% yesterday to 15% as we speak.
  3. Wider RRSP Access: The Liberals say they’ll open access to the RRSP Home Buyer’s Plan, particularly for homebuyers coping with significant life changes (divorce, death of a spouse, a sick or elderly family member, etc.). More access to down payment funds will prop up housing sales and home ownership slightly, and support home prices.
  4. More “Affordability”: The Liberal platform includes a review of housing policy in high-priced markets. The new government will “consider all policy tools that could keep home ownership within reach.” What that means, we’ll have to wait and see. It could definitely be positive for renters and income property investors, given the Liberals have promised to “direct CMHC…to provide financing to support the construction” of new rental housing.
  5. First-timer Support: Trudeau’s government will add more flexible programs for first-time homebuyers. This could mean any number of things, potentially even higher amortization limits for new buyers.
  6. New Blood at the DoF: The Liberals will be installing a new Minister of Finance, who has enormous power over housing regulation. Will he or she be as hands-off on mortgage policy as the outgoing Joe Oliver? We’re guessing not. We’ll likely have an answer by the time the Liberals release their first budget next spring.
(Source: Canadianmortgagetrends)

Wednesday, October 28, 2015

What You May Want To Know About The Alberta Budget

If you had missed the Alberta Budget announcement yesterday, you can read below an overview of 5 ways the budget may affect you.

  1. Sin tax hike – The province is planning to increase taxes on tobacco and liquor for the second time this year starting at midnight Tuesday
  2. Corporate tax hike and end of flat income tax – While Alberta will continue to have no provincial sales tax, the province affirmed the abolition of the flat income tax model — which is slightly different than what was proposed by the PCs in March. A small increase started for those who make over $125,000 this October, but will increase again starting on Jan. 1, 2016.
  3. Business tax credits – In the months leading up to today’s budget, the province said it would focus on job creation, which was reinforced last week when Premier Rachel Notley announced the new portfolio of Economic Development and Trade — with roughly $279 million in operating costs next year and slight increases over the next two years.
  4. Funding for families and seniors – There will be $120 million over two years starting in 2016-2017 for new long-term care spaces, and also $90 million over the same period to expand public home care.
  5. Increased infrastructure spending – The province says a 15 per cent increase to the capital plan will put $4.5 billion more towards fixing roads, building schools and expanding hospitals over the next five years.

Click here to read more about the Alberta budget.

Monday, October 26, 2015

New to Canda Mortgage Programs for Permanent or Temporary residents


WELCOME TO CANADA!
 

There are many programs offered by the numerous lenders in Canada and backed by our three mortgage Insurers: CMHC, Genworth and Canada Guaranty. If you contact me, I am happy to get you pre-qualified for a mortgage and set up a plan and a timeline for you to purchase your first home in Canada.

Borrower Qualifications:
 1. Mortgage application must be within 5 years of the date the applicant arrived in Canada
 2. Borrower must have established residence in Canada and obtained permanent resident status or have work permit.
 3. Not available to diplomats or any other foreign political appointed individuals who do not pay income tax in Canada.
     4. A minimum of 3 months full time employment in Canada is required with no probation.
     5. Verification of 12 months of payments with no late or missed payments and must be in good current standing, no exceptions.  We would need this verification from two different sources, example:  cell phone bill, power bill, rent payments.  Call me to discuss your specific situation and get properly pre-qualified with a plan that is tailored to your current credit and job status.  Everyone's situation is different and a well thought out plan is the best way to get you into your first home.
     6. Minimum 5% of the purchase price down payment is required, possibly up to 10% for temporary residence.

CMHC has an excellent website with a wealth of information for New to Canada Mortgage programs, click the link below:

http://www.cmhc-schl.gc.ca/newcomers/english/

For all you mortgage needs, Contact Amy Wilson
amy@yourmortgagegirl.ca
Phone: 780-919-0475
Fax: 780-640-1243
Verico Brokers For Life

 

Tuesday, October 20, 2015

LOVE YOUR HOME, BUT IT NEEDS UPDATING?

" Amy, we love our home, it is where our children have been growing up, the trees in the yard are just now looking the way we imagined and the layout is perfect, but we need more space!  We look at these new homes and are thinking that maybe we should give up this home so we can have something new and fresh, Can you help us?"

The statement above or variations of this are brought to my attention all the time and I always tell my clients I have two options for them to consider:

Option 1. Yes you can sell your home, take the equity out and purchase a new home

OR

Option 2. If you love you home so much, let's just make it New!  We can use the equity you have in your home to fund the renovations. 


How does this work:  I can arrange a refinance plus improvements mortgage on your behalf to pay for your renovations, with one manageable mortgage, and we can use the equity in your home up to 80% of the appraised value.

Option 1 - We get your home appraised and if you have sufficient equity in the home to cover the cost of renovations ( must have 20% equity or greater) we complete the mortgage and you get the additional funds and start your job - there is nothing more to be done with the lender.

Option 2 - We obtain an appraised value based on the completion of the renovations and can then get you funds up to 80% of the improved vale of the home.  Once you have competed the work, we have the property inspected and as long as you met the initial quote for the renovations, the remaining money is released to you.


 " TURNING your home into your DREAM HOME"

Contact Amy Wilson to learn more or to start the process. 
I work direct with many clients and also work with my realtors for value added service!

Let's get started today,
Amy Wilson
Verico Brokers For Life,
Phone - 780-919-0475
Fax - 780-640-1243
amy@yourmortgagegirl.ca

Monday, October 19, 2015

BUYING A HOME, BUT THE KITCHEN NEEDS A FACELIFT


 



In today's market more and more people are looking to purchase a home due to location, maturity of the yard, neighbourhood and many more reasons. 

The Problem they face:  The home needs updating, for one reason or another.

The solution:  I can arrange a purchase plus improvements mortgage on your behalf to help my  home buyers pay for their renovations, with one manageable mortgage, and as little as 5% down!

What does this mean? 

1. Your find the home that could be perfect once it has had some improvements:)
2. Write an offer on it subject to a contractor getting access to the home to do a quote for improvements and anything else it is subject to.
3. Get a Contractor to quote in writing on the job and the time it will take to complete the work. Most lenders will allow up to 10% of the purchase price to a maximum amount of  $40000.00 possibly more.
4. We get the improved value approved
5. You move in and start construction right away and the funds for the renovation get issued to you once the work is verified by an inspector as being complete.
 
" TURNING DREAM HOMES INTO A REALITY "

Contact Amy Wilson to learn more or to start the process. 
I work direct with many clients and also work with my realtors for value added service!

Let's get started today,
Amy Wilson
Verico Brokers For Life,
Phone - 780-919-0475
Fax - 780-640-1243
amy@yourmortgagegirl.ca

 

Thursday, October 15, 2015

My Commitment to YOU!


 








    
There are many reasons why I enjoy helping people with their mortgage needs. Perhaps the most obvious is the deep satisfaction that comes from helping people to realize their dreams, as well as helping them accomplish financial success.

Another reason is that mortgages are a real learning process. No two clients are the same, no two mortgages are the same and no two dreams are the same. Each has its own characteristics and challenges. However, it is particularly through overcoming the challenges that I learn the lessons that enable me to improve my quality of service.

It is this ongoing commitment to first-class service that enables me to confidently say that if I can't answer a specific mortgage question you have, I'm a phone call or email away from an expert in my professional network who can.

So if you have any mortgage related questions or concerns, or if you have any family, friends and neighbours that do, I hope you'll contact me.


Sincerely,

    
       

Amy Wilson
Verico Brokers For Life
Amy@yourmortgagegirl.ca
Tel: 780-919-0475

Wednesday, October 14, 2015

DON'T SIGN THAT MORTGAGE RENEWAL!

Many Canadians simply sign their mortgage renewal papers. A 2011 Manulife survey found that almost two out of three Canadians surveyed stayed with their current mortgage provider and didn't negotiate.
"Why?"  My short answer: People are busy, their lives are busy, mortgages aren't on their mind, the maturity date comes and goes and they just sign back whatever is offered."
If you are renewing your mortgage, here are four things to keep in mind before you sign that document.
The posted rate isn't the best rate: Think of the posted rate as the opening offer in a negotiation, Banks use the posted rate to provide a value proposition to their clients. They often start with the posted rate and then offer discounts to preferred clients. I want to educate you, my client, and help you shop around for the best rate.  I have access to a number of online lenders and banks to get you the best rate upfront and do all the shopping on your behalf, saving you precious time at no cost to you.  In most cases I get the lender to cover all your fees to move the mortgage as well.
Shop around: Do your research before you sign an auto renewal with your current lender:  Don't have time - no problem, call or email me and I will do it all for you. Once you know the rates offered for your preferred mortgage term (fixed or variable), then I can shop around for a competitive offer.  If the offer you have is the best, I will let you know and you have the peace of mind continuing with your current lender; or if we find you something better we will make the change to a new one.
Bank or Monoline (online only, no branch to go into)
Did you know: The general belief is that brokers can offer a better rate than banks due to their access to multiple lenders.  The Bank of Canada survey found that using a broker can result in getting a lower rate. Part of that is due to them getting multiple quotes from various institutions.  I always tell you, my client, that being loyal to your bank does not get you a better rate.  I will compare with banks and monoline lenders and this is how we get you the best renewal rate!
Check the terms before you sign: The cheapest rate may not be the best rate so always read the small print before you sign. Make sure the rate you choose offers other options; such as the ability to pay extra on your mortgage and clearly defines any penalties should you decide to break your mortgage early. We have "no frill" rates on the market now that have a very low rate but cheat you in mortgage options and other rates that may not be the lowest but have more mortgage options. I will tailor the mortgage to you based on your needs and find a rate that fits.
"Mortgage Options. . . NOT . . . Restrictions!

        
AMY WILSON
780-919-0475
VERICO BROKERS FOR LIFE
 

Tuesday, October 13, 2015

Mortgage Loan Insurance


What is Mortgage Loan Insurance?

In Canada, we have the amazing opportunity to purchase a home with as little as 5% down of the purchase price.  In order for Canadians to take advantage of this we needed Mortgage Loan  Insurance.

Direct from the CMHC website: http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_010.cfm
Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.
To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

As yourmortgagegirl, I would be happy to answer any questions you have regarding mortgage insurance and see how it factors into your next mortgage.
.
Contact me anytime at 780-919-0475 or at amy@yourmortgagegirl.ca