Friday, July 13, 2018

10 SECRET “To-Do’s” After you file Consumer Proposal or Bankruptcy

10 SECRET “To-Do’s” After you file Consumer Proposal or Bankruptcy


Many people go through challenges in life that affect their finances. Divorce, job loss, health issues top the most common reasons. I commend you on getting your finances sorted out and back on track. The moment you FILE that consumer proposal or bankruptcy is the time to start rebuilding your credit history. YES, there are companies that can help with that. Too often I see people waiting YEARS to pay off their debt program before getting credit again, which sets you back two years.
Mortgage Lenders/Banks view Bankruptcy, Consumer Proposal and Debt Programs all the same…bad credit management.
When will it come off my Credit Bureau?
Consumer Proposal Programs:
Transunion and Equifax state that it will take three years for a consumer proposal to fall off your credit score after it has been completed. So if your proposal takes you four years to pay, then your score will be damaged for seven years in total. If you are able to pay off your proposal quicker than your credit rating after a consumer proposal will get better faster. The key is that it will stay on your credit bureau for three years from completion.
Bankruptcy
A first bankruptcy for six years from the date of your discharge
A second bankruptcy for 15 years
TEN SECRET “To-Do’s” you must adhere too:
A mortgage is something most people will have for a very long time. The rules for mortgages have tightened up in the past few years. A LOT.
Once you have filed a debt program…you MUST adhere to these 10 rules.
Excuses don’t fly with Lenders.
You need to prove to THEM you are financially capable.
They owe you nothing.
  1. If you go bankrupt or file a consumer proposal while you have a mortgage, the Lender will see this when they review for your renewal and could deny your renewal and you will need to prepare to look for another lender/bank or they charge super high renewal rates. If you are considering either option or are currently in a proposal, please contact me to review your options far in advance of your renewal.
  2. No NSF charges on your bank accounts. Get yourself an overdraft to protect yourself.
  3. No missed mortgage payments – EVER
  4. No late payments on anything that reports to your Credit Bureau; credit cards, car loans, student loans or cell phone bills.
  5. No collections for any reason. Pay that issue and sort it out later.
  6. Double Bankruptcies or one Consumer Proposal and a Bankruptcy will make it difficult to get a mortgage. You can’t get around this anymore. It would be mortgage fraud. Lenders can look this up easily via the Bankruptcy Records Search.
  7. If you have a Bankruptcy that has property included, it will be VERY difficult for you to get a mortgage without at least 25% down payment (for a purchase) or equity (refinance). On top, you will likely be in an Alternative mortgage for a very long time with higher rates and fees.
  8. Get two tradelines. Credit Card, Car Loan or Line of Credit. You need to have two years of history and two of them with spending limits of at least $2,500.
  9. Don’t spend to the limits. Only use a max 50% of available credit.
    Use a Mortgage Broker who specializes in Credit Repair; who can review your file with you on a semi-annual basis to keep you on track as mortgage rules change.
  10. You need to look “squeaky clean” until your Bankruptcy or Consumer Proposal is removed from your credit bureau.

Thursday, June 21, 2018

5 Tips on how to get out of debt and into your own home

5 Tips on how to get out of debt and into your own home


To get out of debt, you need a plan and you need to execute that plan. That’s why I’ve created this simple, five-step, get-out-of-debt checklist that can help you leave that financial burden behind you.
As you work on your plan, you’ll need to make all necessary adjustments to your budget along the way so you don’t overspend and slide back into debt. Plus, if you don’t have an emergency fund, consider setting some money aside in savings beforehand.
Keep this checklist someplace where you’ll see it often (like your refrigerator door ), and make it your goal to check a task off the list each day (or each week), depending on how quickly you want to become debt-free.
1- Make a list
Take all your bills and put them in a chart that includes: the name of creditor, interest rate, balance, minimum monthly payment. Figure out how long it will take you to pay the balance down to zero. Many credit card statements now feature this.
2. Lower your rates
This is easier than you think. Call up each of your credit card companies starting with the ones with the highest interest rates and ASK them to lower your interest rate. You can tell them that other credit cards are offering lower rates and you wanted to let them keep your business. They won’t give you an answer on the phone but you should receive a letter with a new lower rate within a couple of weeks. Another possible solution is a balance transfer. Often a credit card company will allow you to transfer your balance from another card to theirs and they charge you 0% for 6 months. They assume that you will see zero being added and will spend more. Show them that you are disciplined and keep paying the balance down as if it was still at 19%. Consider getting a debt consolidation loan. If you have a home with equity you can often get a very good rate and clear up all your debts. Often you can get these loans at considerably less than your credit cards. Once again, keep your monthly payments up as if you were still paying a credit card of 19% interest and your balance will go down quickly.
Next contact your car loan company. If you have been paying your loan on time they may lower your rates. Now you are ready to tackle the utility companies. In Alberta the gas/electric companies really want your business. You can often get a better rate just by threatening to switch. This also works with cellphone companies. They often have better plans than the one you are on but will only offer it when you say you are going to leave.
3. Get your Number
What is the amount you need to pay off all your debts? Now that you have a number in mind you can set a goal. Can you pay this off in six months? 12 months? two years?
Get your credit score number. How much does it have to improve before you can qualify to buy a house? Check with your Dominion Lending Centres mortgage broker for help getting this.
4. Make a plan
What will be your target debt? Is it the credit card balance with the highest interest rate? The lowest balance? Set a short term goal to pay one card off in a manageable amount of time. One down and three to go sounds better than tackling all the debt at once. Pay each debt off one by one. Does your community library offer debt counselling financing planning courses? Consider signing up for one.
5 – Monitor your progress
How quickly are the debts coming down? Is your credit score going up? It should if the debts are coming down.
Do you have to adjust your plan to make your deadlines? Don’t be discouraged. Large companies make plans and set budgets and then adjust them quarterly based on how the previous three months performance was.
Stick with your plan and if you show some self-discipline you can achieve your goals in time. Finally, Contact Amy Wilson and tell me what your goal is and what your timeline is. I will be happy to help you along the way. Nothing makes me happier than to tell people like you that you are approved for home financing.



Thanks David Cooke from DLC Clarity Mortgages in Calgary for this insite

Thursday, April 26, 2018

8 Things You Can Do To Get The Best Renewal

8 Things You Can Do To Get The Best Renewal


With 47 per cent of homeowners scheduled to renew their mortgages this year, 2018 is a year of change for lots of Canadians.
Here are the top 8 things you can do to get the best renewal:
1. Pull out your mortgage renewal now, and start early. When you are proactive instead of reactive you can see if there is anything on your credit score or lifestyle that we can modify to ensure you are positioned for the best renewal. You are only in a position to do this when you start early- in the last year of your mortgage you will have the most amount of options available. For example, there can be an inaccuracy in your credit report or you may be considering an income/job change that would impact your options. We can look at timing accordingly for you.
2. Do not just sign the renewal offered. Lenders can change the terms of your mortgage, and the renewal you are signing can cost you up to four per cent of your equity if you are with the wrong lender for your current life stage.
3. Most people think the best rate is the best renewal – WRONG. The terms are most important and with all terms moving or selling is the only reason most people think they would ever break a mortgage- THIS is simply not the case, a change in the interest rate market, divorce, health, job change, investment opportunity and many other reasons would contribute to a future modification being beneficial for a consumer.
4. Take into consideration lender history. The lender can have a higher prime then anyone because they know the cost to leave outweighs staying the course. The lenders are very smart with their calculated risks- and this is not something they have an obligation to disclose.
5. Remember your lender has a bias – their job is to handcuff you so they can make as much profit off you as possible- don’t be a victim.
6. Do not shop each lender on your own, it takes points off of your credit score. All lenders have different rates based on your score and you want to position yourself to get the best. By using a mortgage professional, they can shop multiple lenders protecting your credit using only one application, while the rate variation can be on average a half a percent!
7. Don’t get sucked into the online rate shopping- any monkey can post a rate online and you can drive yourself crazy looking at something that does not exists. In today’s complex mortgage market there are significantly different rates based on – insured mortgage vs uninsured mortgage, switch vs refinance, purchase or renewal, principal residence vs rental, salary or self-employed, 600 credit score or 700 credit score, amortization of 20 years to 30 years, type of property condo vs house, and leased land or freehold. The variations can mean a difference in thousands of dollars. Like diagnosing a medical condition, you can’t go online, you do have to put in the appropriate application and supporting documents to verify which options are available to you that will result in the lowest cost in borrowing.
8. Remember your mortgage is the largest debt and investment most of us have, when you contact an independent mortgage professional, we are going to invest all the work and expertise and advise you in your best interest regardless if we get your business. We may after our review advise you to stick with your existing lender, or make another recommendation for you. We are only here to enhance your finances and save you money, and there is no cost for our service.

Thank-you Angel Calla from DLC Angela Calla Mortgage Team for this blog post!







Friday, April 20, 2018

Mortgage Broker Value

Mortgage Broker Value


Not surprisingly, borrowers often default to their own Banker. And why not? It’s an established and comfortable relationship. Perhaps it’s viewed as the path of least resistance. But is it the right lender for the borrower’s current specific needs? Perhaps not.
More sophisticated borrowers may be of a size or scale that they have their own internal resources in finance, quite capable of securing the required financing. They are likely only in the market infrequently however, and almost certainly not fully knowledgeable as to all of the financing sources available.
Aren’t all Lenders pretty much the same?
Borrower’s may think that all institutional lenders are pretty much the same. Offering comparable rates, and standardized borrowing terms. This is rarely the case. Lender’s often prefer one asset class over another. They may have a particular need for one type of loan. A specific length of loan term may be desirable, for funds matching purposes. Real Estate risk is a fact for real estate lenders. How they mitigate this risk differs however. It may be stress testing interest rates during the approval process. Sophisticated risk pricing models may be used, having regard to previous loss experiences. The lender may rely significantly on collateral value, or guarantees. The conditions precedent to funding will often differ from lender to lender.
A real world example
I had the pleasure last year in advising a client who had 3 sizable real estate assets, in 3 quite distinct asset classes. The borrower’s loan amount requirements were significant, however they were flexible on loan structure. Accordingly, I sought out competitive, but differing deal structures. My goal was to provide a competitive array of options. A number of “A” class lenders were approached, several/most of whom this particular borrower had no previous experience with. I shortened the list to 5 lenders, and received Term Sheets from each.
Each Offer was competitive on a stand alone basis, but they differed quite substantially, in the following ways:
  • Loans were either stand alone, or blanket loans, or some combination.
  • Length of terms offered, differed by asset class.
  • There was as much as a 75 bps rate difference, from highest to lowest Offer.
  • The amortization period depending upon asset class, ranged from 15 to 25 years.
  • Loan amounts on individual assets differed as much as 20%.
  • Third party reporting requirements differed between lenders.
  • There were a combination of fixed vs. floating rate loan structures.
  • Recourse was limited by some lenders, on select assets, or waived entirely, upon a higher rate structure.
Leverage Your Knowledge
These variances are striking, yet each of the 5 lenders were considering the precise same asset, at the same time, with common supporting information from which to base their analysis. How was the borrower to know which Offer to exercise? As a Broker, I can add value by helping the borrower to consider both their immediate and longer term strategic requirements, in the context of their overall real estate portfolio needs. This was precisely how this borrower landed on the most appropriate Offer for their particular circumstances. In this particular case we presented different, yet competitive, and uniquely structured options for the borrower’s consideration.
Consider a Dominion Lending Centres Mortgage Broker when next in the market for financing. Leveraging a Broker’s knowledge is a tremendous value proposition.
Thank-you Allan Jenson from DLC The Mortgage source for this blog post
Allan Jensen

Allan Jensen

Dominion Lending Centres - Accredited Mortgage Professional
Allan is part of DLC The Mortgage Source based in Ottawa, ON.


Thursday, April 19, 2018

Mortgages are confusing!


With the plethora of every changing mortgage rules and the access to banks, online lenders, investors, alternative lenders etc.  and multiple types of mortgages, where does a home buyer start?

What is a broker?  I have always used my bank, is that bad?  I am overwhelmed and I don't know how to go about this? My friend was offered something else, why is it different for me?
I never try because I don't think I can get a mortgage? 

The questions and or statements in regards to mortgages can go on forever!  I have been a licensed mortgage associate with Brokers For Life DLC for 8 years now and I continue to get new questions every day.  No ones situation is the same or equal when it comes to qualifying for your mortgage.

As your mortgage professional I try to make things simple by taking every potential client through the same process every time so I can truly understand your unique buying situation and make sure I tailor a mortgage to fit your needs.

I am a trained professional who is continually training and learning so I can take the confusion out of your mortgage experience!

I offer a free 5 star service, so call me and ask any questions you have in regards to mortgages and see if getting pre approved for a mortgage will be your next step!

Don't have any questions, but want to get started!  Go to my website and apply online today!





Tuesday, April 17, 2018

Next tip to save money on your mortgage:


Accelerate your mortgage payments:
The most painless way to ramp up your mortgage payments and shorten your amortization period is switching from monthly to accelerated bi-weekly payments, or increase your monthly payments by any % within your pre payment options on your mortgage.  See my two examples below:
1. An accelerated re payment schedule is a monthly payment divided by 2 and paid 26 times in the year.
eg. Instead of making your payments monthly, ask the lender to go accelerated biweekly and on a $350 000.00 mortgage at 3.25% you can SAVE approx. $9300.00 in the first five years of your mortgage.

2. Take a $350 000.00 mortgage amortized over 25 years, based on the rate being 3.25%.
Increase your payments by 10% using your pre payment options:
Your payment will go from $1701.58 to $1871.74 and you will shave approx. 10 years off your mortgage and save just over $62 000.00 in interest.


Monday, April 16, 2018

Tips to save you interest on your mortgage!!!!!



1. Shop around and not just for the lowest rate
Of course, you should get the lowest interest rate that you can. But rates aren’t the only thing to consider when comparing options. With your mortgage the lowest rate does not equal the best mortgage.
Your mortgage should have:
  • Prepayment privileges: As interest rates rise, a bigger chunk of your mortgage payments will go toward interest rather than the principal. That’s why it’s important to get a mortgage that will allow you to make large lump-sum contributions and increase your monthly payments if you decide to pay down your debt faster. Mono line lenders might both lower rates and offer more generous prepayment privileges than the big banks. “Mono Line lenders with a solid track record are worth considering, especially if it means paying down your mortgage sooner,” Mono line lenders have lower overhead costs because they are online and can pass that savings onto you!  

  • Penalties: What would happen if you were to break your mortgage? That’s a question every mortgage applicant should ask. People wind up having to break their mortgage for any number of reasons: They move, they get divorced, they lose their jobs. And that can cost them thousands of dollars in mortgage penalties, which is why it’s important to look at the fine print. In Canada, if you have a variable-rate mortgage, the penalty is generally three months’ interest. If you have a fixed rate, however, you could get dinged for much more than you think. That’s because you’ll have to pay the greater of either three months’ interest or something called the interest rate differential (IRD), which is based on current mortgage rates and your remaining mortgage balance. If you’re going for a fixed-rate mortgage, it’s important to ask your lender whether the IRD is calculated based on their discounted rate or their considerably higher posted rate. “The big banks calculate fixed-rate penalties using their posted rates,”  Mono-line lenders calculate their  penalty using their discounted rate, please see one example from my mono-line lender First National Bank.
  • This is an exceptional example from Frist National on penalty savings


  • Portability: Speaking of mortgage penalties, one way to avoid them, have a portable mortgage,(If you move the mortgage moves with you). This means you can transfer your mortgage to your new home and combine it with a new loan, if necessary. Another great feature that could save you thousands of dollars in penalties is having an assumable mortgage. That would allow you to leave your mortgage behind for another qualified buyer instead of breaking it.
Stay tuned for more tips to come this week!

Friday, March 23, 2018

Spring Into Action: Refinance Your Mortgage With the Help of a Mortgage Broker

Spring Into Action: Refinance Your Mortgage With the Help of a Mortgage Broker


We sprung forward last earlier this month by changing our clocks one hour ahead. For some, their microwave and oven clocks are once again displaying the correct time since the last time we needed to adjust our clocks (in the Fall). Patience is a virtue – except for when it comes time to refinance a mortgage!
The Spring is a busy time for mortgage brokers across the country. We welcome this change in season knowing that we are in the best position to give families mortgages that make sense for them.
This is the time of year that banks begin to send out their mortgage renewal notices. Some people will simply sign the documentation sent over from their bank and take on a new mortgage at the rate the bank has suggested. However, this may not be the best rate for which you and your family can qualify.
What is a Mortgage Renewal?
A mortgage renewal is when the current terms of your mortgage come to an end and you sign on for a new mortgage term.
The time is now to spring into action, up to three months ahead of your mortgage renewal deadline. By shopping around for the best mortgage rate for your financial circumstances, you may save yourself thousands of dollars. To do that, you may want to consider working with a seasoned professional – your local mortgage broker.
The benefits of working with a mortgage broker to help find a mortgage solution that works best for you are three-fold.
A mortgage broker gives you a second opinion.
While your current mortgage lender claims to have your best interest at heart, getting a second opinion on your financial situation does not hurt. There may be new options and products available for you that your current lender is forgetting or unable to offer. A second opinion on your changed financials may be able to save you money or highlight some new options that may be better suited to your needs.
A mortgage broker does the work for you, at no cost.
Some people are still concerned that hiring a seasoned professional to look at your finances and find new mortgage rates will cost a lot of money. This is a myth! Mortgage brokers provide their services at no charge (yes, free!) and take a fee from the lending institution, not the client. So, let us look around for the best mortgage rates available to you on your behalf – all at no cost to you.
A mortgage broker does ONE credit check but can check MULTIPLE lenders without lowering your credit score.
One of the biggest advantages to having a mortgage broker shop around on your behalf is having them conduct one credit check and then using that information to shop around among several different lenders. If you wanted to shop around on your own, you would have to allow each institution to run a credit check and, as a result, lower your credit score. Working with a lender also means a lot less paperwork for you, too!
In short, a Dominion Lending Centres mortgage broker does the legwork on finding the best mortgage rate for you, at no cost and with only one credit check. Be sure to spring into action this Spring to and get a jump on your mortgage renewal process.

Thanks Max Omar with DLC for this blog post