Monday, January 30, 2017

Understanding the upcoming increase to Mortgage Insurance Premiums

Are you putting less than 20% down to purchase your home?  If your answer is yes, please contact Amy Wilson today as the mortgage insurance premiums are set to increase on March 17th/2017.

How this will effect you: see an example chart below:

Down payment between 5% and 9.99%
Loan Amount$150,000$250,000$350,000$450,000$550,000$850,000
Increase to Monthly Mortgage Payment$2.82$4.70$6.59$8.47$10.35$15.98
Based on a 5 year term @ 2.94% and a 25 year amortization 

Down payment between 10% and 14.99%
Loan Amount$150,000$250,000$350,000$450,000$550,000$850,000
Increase to Monthly Mortgage Payment$4.94$8.23$11.52$14.81$18.10$27.98
Based on a 5 year term @ 2.94% and a 25 year amortization

Down payment between 15% and 19.99%
Loan Amount$150,000$250,000$350,000$450,000$550,000$850,000
Increase to Monthly Mortgage Payment$7.06$11.75$16.46$21.16$25.86$39.96
Based on a 5 year term @ 2.94% and a 25 year amortization

Contact Amy Wilson with any questions you may have and feel free to click here for more information from CMHC!

Sunday, January 29, 2017

Your Mortgage Plan! I promise it is easier than you think.........

YOUR MORTGAGE PLAN

 
What does your mortgage plan mean?   I have customers come to me on a referral basis daily and the only thing in common with all my clients is that their mortgage needs and what they need to do to qualify is unlike anyone else!!!!  This is where I come in - as your mortgage girl, I look at each individuals unique situation and figure out a mortgage plan for them based on their credit, job history, down payment and what their lifestyle needs are.  What I want to stress to anyone who is reading this article and all the people who are referred to me - this is a safe zone for you, no judgment - I am here to help no matter what. 
Today I am going to focus on something that many people are not aware is available to them, absolutely free of charge and it can change your buying future for the better.

START RIGHT PROGRAM!

 My start right program is working for many clients and has proven to be very successful for my clients and my referral partners.

I have a follow up system in place, based on what is required to get a client, you, in a mortgage.  For some reason you don't qualify to buy right now and usually get discouraged and give up when you are told you are declined by the lenders. 
 
I look at  your decline from a lender as an opportunity - the first step is taken - you know you want to own a home - so what needs to happen to get you there.  I set up a plan, free of charge for you so you can reach your home ownership goals. 

The program is set from 4 months to 2 years to get you qualified! Instead of staying in the same dreaded cycle of not qualifying because you don't fully understand why you didn't in the first place or didn't know how to fix it.

All the correspondence I send to you to get back on track is also co-branded with your original referring partners(realtor, home sales consultant, friend) information on it and when you are ready to buy, you are referred back to them to buy your home!

Contact Amy Wilson today!  I promise it is easier than you think and well worth it!

You dont' even need to leave the comfort of your own home as all my services are done over phone, email and or fax!

Click here to do an ONLINE APPLICATION NOW!



Wednesday, January 18, 2017

Contribution Deadline - March 1/2017- RRSP as a Down Payment



Are you a first time home buyer and looking to use your RRSP's as a down payment here's a few things you need to know.
  1. To use this program you must have not owned a home in the last 4 years but did you know that if your spouse owned a home previously and you didn't live in the house then you may still qualify.
  2. RRSP contributions need to be in the RRSP account for at least 90 days before they can be used. If you are a monthly contributor to the account then only the amounts there for more than 90 days can be used for down payment.
  3. You can borrow money to put into an RRSP and have it be there 90 days to use for down payment. Using this method of acquiring the RRSP means that you must be sure of two things, one being that the lender is okay with you taking it out in 90 days. Secondly that it isn't put into an account that will not have fees to take the money out, money market funds or simple 90 day term certificates shouldn't cost you any penalty.
  4. You can withdraw up to $25 000 dollars from your RRSP to put down on a home. Locked in LIRA's are not eligible for this program so make sure before you start down this path that you know what type of account you have your money located in at the bank.
  5. You have to pay the amount you borrowed back to the RRSP account over the next 15 years. If you took 15000 dollars out you would need to repay $1000 dollars a year to the account. Failing to pay this money back may result in CRA taxing it as income.
  6. You can contribute to your 2016 RRSP up until March 1st and receive a tax deduction for the contribution, this also applies if you borrowed the money to contribute. Theoretically you can also take the tax refund and apply it back to the loan or use it for your new home.
Contact DLC Brokers for Life - Amy Wilson and we can direct you to our partners companies so that you can take advantage of this opportunity to enter the home owners market...We've got a mortgage for that..

Wednesday, January 4, 2017

It is never to early to Teach your kids about MONEY



Happy New Year!

Over the holiday I was lucky enough to spend much of my time with family!  A key conversation that came up was money - "I know shocker!" As adults, we do our best to manage money, cover our bills, save etc. but are we teaching our kids how to do the same? Finance may seem like a grown-up concept, but the kids ranging in ages from 9 to 18 that I "hung out with" said that they are taught nothing about money and wish they knew more.  I heard about many things they wish they didn't have to learn.... but that is a whole other story!

I learned that kids are never to young to learn about money and they know more than we give them credit for, so start early and teach them the value of money and the basics of budgeting, so they’ll have those skills when they’re older.

Below is some spit balling I did with my nieces and nephews that would interest them:)  Okay "spit balling - maybe I spent too much time with the teenagers - HAHA!"

Give Your Kids Money to Manage

Every home has a different way that they could give their own kids money -such as a chore chart and they get paid to complete the chores as does a parent(s) when they go to work.  You could let them earn money based on school achievement or a combination of both.  How they get the money is up to your household and the decision you make, but what to do next.

Teach Them Budgeting Basics

Give them a responsibility with that money - such as, you can spend 70% of this money on anything you like, and the remaining 30% must be saved.  They need to understand this money can't be spent on anything as it is a savings plan.

When children get cash of their own, they need to decide how to spend it—and that’s the time to talk about smart buying choices. You have now taught them that they have 70% of their money to buy what they want, but now you need to teach them how!  Let’s say 70% of your child's allowance at the end of a month is $7.50, but your child wants to buy a toy that costs $30. While going out and buying that toy immediately isn’t possible, your kid can set aside some money every week, then buy the toy later. That’s the value of a savings account in a nutshell.

What to do with the remaining 30% ?

When they are young, put the savings portion in a clear jar so they can watch their money grow and as they get older help them open a bank account so they can see their own money grow.

When they get to teenage years - you could show them how to invest the money.

Just think:  8 year old - puts $10/month away for 10 years

Your Result
Your monthly deposit of $10.00  for 10 years with an interest rate of 2.00% compounded Monthly
with an initial starting balance of $1.00

Final Savings Balance: $1,328.42
( this is just a simple interest calculation - but it gives you an idea - $1200 grew to $1382.42, now apply that to a child earning babysitting money or working a job - show them how to save for a car or a new phone etc. and what it would take to get their - the ideas are limitless and the whole time you are teaching valuable money basics to your kids!

Help Children Understand That Everything Costs Money

Your children need to know the value of their allowance compared to the value of the things they’d like to buy. When they want a new toy, point out the cost and remind them how much they have to spend. (This is a good opportunity to encourage kids to save money.)

When they’re buying something with their allowance, make the process visual: Take the money from their jar, bring it to the store, and hand it to the cashier. They’ll clearly see their amount of money shrink, though they’ll get a toy (or whatever else they want) in return.
As your kids decide how to spend their money, also teach them to prioritize. If they spend all their savings on one item, they won’t have the money to spend on other things they might want. Because they don’t have enough money to buy everything they’d like, they need to figure out what’s most important to them.

Show Them How to Shop Smart

While everything costs money, some options cost less. From buying generic products to doing cost comparisons, adults try to make their budgets stretch as far as possible—and you can teach your kids to do the same with their allowances.
If your children want to buy a new toy, help them check the price at different stores.
Also talk about sales and coupons, which require patience but can stretch their allowance money a little further. Again, this will help teach your children how to prioritize: Would they rather pay full price for an item or wait for it to go on sale and keep the extra cash? Your children will be delighted to have more spending money, and will learn how to make the most of a limited budget. That’s a skill that will come in handy later.

Let Them Make Decisions (and Mistakes)

Offer advice, but don’t dictate what your children do with their money; allow them to make their own spending decisions. While they’re likely to make mistakes along the way, it’s better to make those mistakes—and learn from them—now rather than later.


 The ideas in this post originally appeared on DealNews.

Sunday, January 1, 2017

2017! Don't allow these 5 Things Jeopardize Your Mortgage

Don't allow these 5 things Jeopardize Your Mortgage

Here’s what you need to know if you’re thinking about getting a mortgage on a home in 2017.

Your ability to qualify for a mortgage is based on specific lender guidelines and if you are putting less than 20% down, there are mortgage insurer guidelines you also must meet.

I have compiled a few items below, and I am happy to work with you, to create your individual mortgage plan.

1. Applying for Credit
  
It is imperative that you protect your credit score, this means, if you are looking to purchase a home, ensure that you are not allowing anyone to pull your credit bureau and also put a hold on any other credit shopping, such as car loans, furniture loans or any credit cards or line of credit.  Contact me first to set up your mortgage plan before doing anything else!

After I have created your mortgage plan and you have found a home to buy, it’s best not to apply for any credit  as well. This means not applying for car loans, credit cards, utility bills, cell phone bills or any other form of credit whatsoever. Doing so could change your credit score and impact your rate! 

2. Changing Credit
 
In order to ensure you are not putting yourself at risk, let me review your credit report to determine if closing a credit card or increasing a limit will effect your opportunity to buy your home.Changes or activity on your credit bureau can effect your credit score - lenders use your credit score to determine your purchasing power and your ability to qualify for the loan.
 
3. Moving Money Around
 
Moving money around can cause more headaches than necessary.   The lenders need to see a 90 day history of your bank accounts that the down payment is coming from - so if you move a lump sum to another account - you then must provide a 90 day history of two accounts.  Leave the money where it is until directed to move it:)

If you are receiving gift funds,the lender will need their gift letter signed and then proof of the deposit into your bank account and then the lender will do further checks to ensure it is intended to be a gift.


4. Switching Jobs
 
Changing jobs and getting into contract with the proper documentation is one thing. Signing a purchase contract and changing jobs is something else entirely, as most mortgage banks need to ensure you have passed probation at your work. If you have removed finance conditions on a home and then you switch jobs, the lender can come back and reverse the approval - you will lose the home and your deposit. 

5. Get Pre-approved ( Last and defiantly not least!  MOST IMPORTANT!)

It is imperative that you get properly pre-approved!  Contact me as soon as you are thinking of buying a home.  A pre-approval helps you set a budget that works for you, prepares you for anything on your credit report that may not belong, it allows time to collect proper paperwork for your approval - such as tax returns - (that can take weeks to get form the government if you have lost your own copy)and gives you more confidence when making your buying decision!

I am a licensed mortgage associate, with my only focus being on mortgages!  I work a quickly as you need me to and I work 100% via phone, email and text - whichever is easier for you with extended hours to meet your schedule!  I also book appointments at my office between 10 am and 2 pm on Tuesday, Wednesday and Thursday every week!