Wednesday, February 23, 2011

Another BOOM???

Last night, CTV Edmonton aired a special assignment entitled "Fort McMurray on the Verge of a Boom". In this special they are indicating that there is another boom on the way, which will be more controlled and lengthy. Fort McMurray is already seeing these effects, as job postings are up, housing vacancies are almost non-existent, and people from all over Canada are moving there again. As we know from a few years ago, this will have a direct effect on the Edmonton area.

As well, oil is nearing $100 per barrel! They are estimating $150 per barrel by July of this year.

With all this activity and recent media buzz, the real estate market here will be affected. As well, with the mortgage guidelines changing soon, home ownership will be out of reach for some people. If you missed out last time, you won't want to miss out this time around!

Thursday, February 17, 2011

Mortgage Broker Myths

Some Mortgage Broker Myths

Myth: Mortgage Brokers are Aligned with One Bank
Independent brokers are fully licensed and work for either an independent mortgage brokerage company or have their own independent companies. Brokers access the entire mortgage market to get the best mortgage for the client. Being independent means brokers will recommend mortgage products based on the individual needs of the client, not the needs of the bank.

Myth: You Pay Brokers
Independent brokers are paid by the lender they place the mortgage with, not the client in the vast majority of cases. The pay is based on the size of the mortgage not the rate. They work hard to get their clients the very best mortgage at the very best rate. When you are using a Travel agent, a Financial Planner an Insurance Agent – it works the same with a mortgage broker– those individuals are compensated by the company your product or service is placed with.

Myth: All Mortgage Brokers are Created Equal
There are many kinds of people that process mortgages:
Bank Representatives work in-house at the bank and sell only bank type mortgage products. They are generally not licensed and have to go through many levels to get an approval. They tend to rotate their positions in the bank hierarchy and may not always stay at the same branch which requires clients to re-establish relationships.
Bank Brokers are the banks "mobile" mortgage arrangers. The majority of time they are not licensed or regulated and only sell their own banks products.
Brokers that are licensed but work for companies that are owned by banks have access to all mortgage products on the market however tend to lean towards selling products that support their bank.

Myth: You only deal with a broker if you are credit challenged
1 in 3 Canadians (real statistics) understand the benefits of using a broker to source the best mortgage on their behalf. These people are primarily educated professionals with good paying careers, excellent credit and growing net worth. They understand that the broker will save them time and effort in the mortgage process—all this with NO FEES charged!

Myth: All Mortgage Brokers are licensed
Not True. All brokers have different experience levels and different qualifications. Ask if your broker is the owner of the firm or an agent of the firm. Ask the broker his or her number of years in the industry. Ask if the broker specializes in the kind of mortgage requirement you have. Ask if the firm works with online mortgage placement or will need to meet you in person.

Myth: Brokers sell other products like investments and credit cards
Unlike bank representatives, independent brokers only arrange mortgages. They are specialists in their fields. With hundreds of mortgage products available in the market today - each with different features and benefits, independent brokers are committed to understanding the various products and matching those with the need of their clients.
At Mortgage for Less we will arrange the right mortgage and make the process easy and seamless for you!

Myth: Mortgage Brokers Deal with unknown lenders
In over 75% of the cases your mortgage is with a MAJOR BANK- maybe even the same one you deal with. Dealing with a special mortgage centre that deals in high volumes means you are dealt with more efficiently and often has better rates that the Bank Branch Level. Other companies we deal with you may not have heard of but some of them have been around for 100 years.. Some lenders are owned by a Major Bank but operate under a different brand you may never have heard of.

Monday, February 14, 2011

First Time Buyers Tax Credit and Home Buyers Plan

Home Buyers’ Plan
The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw amounts from a Registered Retirement Savings Plan (RRSP) to purchase or build a home without having to pay tax on the withdrawal. Budget 2009 proposes to increase the HBP withdrawal limit to $25,000 from $20,000.
For HBP purposes, an individual is generally considered to be a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year in which the HBP withdrawal is made or in any of the four preceding calendar years. Special rules apply to facilitate the acquisition of a home that is more accessible or better suited for the personal needs and care of an individual who is eligible for the disability tax credit, even if the first-time home-buyer requirement is not met. These rules will also be modified to provide the same $25,000 withdrawal limit.
Withdrawn funds must generally be used to acquire a home before October of the year following the year of withdrawal. Amounts withdrawn under the HBP are repayable in installments over a period not exceeding 15 years. To the extent that a scheduled repayment for a year is not made, it is added to the participant’s income for the year. A special rule denies an RRSP deduction for contributions withdrawn under the HBP within 90 days of being contributed.
This increase in the HBP withdrawal limit will apply to the 2009 and subsequent calendar years in respect of withdrawals made after January 27, 2009.
First-Time Home Buyers’ Tax Credit
Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.
An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.

Prepared by Amy Wilson:

Tuesday, February 8, 2011

Rates on the rise

The lenders are saying to get your mortgage applications in quickly as rate are going up and up! The bond yield has increased therefor the rates need to increase.

Contact Amy Wilson ASAP and lets get you approved now!