Monday, January 25, 2016

Below is a scenario I just went through with a client of mine.  Please keep in mind every person has a different mortgage situation and it is important that your mortgage experience is tailored to you and your needs.  See below on how I took my client through the whole process so she could make a confident buying decision.

I had a client contact me who has been to THREE other banks and was declined!  She was so confused with the whole mortgage process and felt like her head was going to explode.  She did not understand why she was declined and was shocked to know her credit was also being effected with all the credit inquires.

 I told her that I would take her through the entire process, Step by Step so she understood what was going on without being overwhelmed and anxious.  I explained that I will work out some options to get her approved, or show her why she was declined so we can work on a plan to get her approved in the coming months.

Step One:  The first point of contact:
a. I found out she was declined at 3 banks
b. I found out she had a salary job and was a single mom who also received ongoing verifiable child support payments.
c. I found out she had her own down payment saved
d. I found out she wanted to purchase a New home that was ready for possession in 35 days.
e. I found out she will be staying in this home long term - 5 years or greater
f. I found out that pre-payment options were not important to her, rate was.

I emailed her a client consent form to fill in and sign and date and return to me by email or fax.

Step Two:
I received the clients Signed consent form and contacted her to take a mortgage application.  This takes approx 5 to 10 minutes and it helps me gather all your information.  Before pulling her credit bureau, I was able to determine he debt to income ratios were not within the 44% required amount.  I asked her if anyone had reviewed her current monthly debt with her - Her answer was "No". 

Based on a few calculation, I figured out she could re write her loan for a payment that was half of what she was paying by getting a fixed loan for 16 months - so I lowered the rte and only had to extend the term by 4 months and I increased her overall purchasing power for a new home, see example below:

Home price - $425 000.00
Down payment - $21 250.00
Mortgage Insurance -$14 535.00 - CMHC, Genworth or Canada Guaranty
Income Required  - $73 350.00 if you have no debts - so no payments

This client has a car loan for $945.00 and a visa for $3200 and a cell phone bill. 

Based on her income she was at 46% TDS or Total debt to income and this is why the banks declined her.  She was not give any further options, she was just told she was declined.

I explained to the client how her income and debt work and told her I could get her a loan for her vehicle for $473.00 and then her ratios fell back to 42.3% and she qualified to purchase the home.

Step Three:

I pulled the client bureau to ensure her credit was paid on time as stated when I took the credit application.

Step Four:

I gave the client a list of paperwork I required to verify the pre-approval.
1. Letter of employment dated within 30 days
2. Most recent pay stub dated within 30 days
3. 90 day banking history to verify her 5% down payment
4. Two pieces of ID - one a picture ID as she was not able to meet me in person
5. verification of her Child Support payments - in case we needed to show more income to help her qualify.

Step Five:

I received all the paperwork and verified that the pre-approval would work.

Step Six:

She signed the offer to purchase on the new home and had copies sent to me.

Step Seven:

I submitted for approval and within 1 day, I received a mortgage commitment outlining the mortgage and option in detail - focusing on a five year term with the lowest rate possible as per her mortgage needs outlined in step one.

Step Eight:

The client and I reviewed the mortgage commitment and ensured she understood before signing.

Step Nine:

We removed conditions with the lender and a very frustrated upset client was beaming and excited!

She now understood what goes into the mortgage process, she understood the mortgage she was getting and was excited to become a home owner for the first time!!!

Moral of this story:  As a broker I only deal in mortgages and I only represent you:)  This is the perfect cocktail to ensure that I am yourmortgagegirl!  Ensure that you and your needs are heard and being represented all the time.  " Mortgage Options, Not Restrictions"

Amy Wilson,
Verico Brokers For Life

Friday, January 22, 2016

What To Expect During The Mortgage Process

Happy Friday everyone! Please find below my next video blog. This time I am talking about what to expect during the mortgage process. Feel free to contact me should you have any further questions. ‪#‎mortgages‬ ‪#‎amywilson‬ ‪#‎firsttimehomebuyers‬

Wednesday, January 20, 2016

Bank of Canada Has Left The Key Interest Rate Unchanged

Bank of Canada is leaving the key interest rate unchanged.  Stephen Poloz and his colleagues decided that it is in the best interest of the country to leave the overnight rate at 0.5%.  The Prime rate will remain at 2.70% as well.

Please click here to read further on this decision by the Bank of Canada.

Tuesday, January 19, 2016

Mortgage Rates

Attention Rate Shoppers!!

Most of the clients I get a phone call or email from are so focused on rates that they lose site of the other mortgage details:

The reality is, the mortgage rate is a just one piece to the mortgage process.  Rate is very important, as long as the mortgage that is offered with that rate works with your purchase plan.

For example:  here are some things to consider

1. How long do I need a rate hold for? 30, 60 or 90 days or a year.....
2. What type of mortgage do I need - Draw or completion......
3. What options does the mortgage come with
     a) pre-payment privileges
     b) payout penalties
     c) can it be ported or the rate be blended
     d) how is the title registered
4.  Do I need Bridge financing from the sale of my current home
5. Does the rate work with my credit situation
a) First Time Home Buyer
b) New to Canada
c) Self Employed
d) Commission Income
e) Union income
f) Maturnity Leave
g)Divorce or Separation

As Your Mortgage Girl, I take you on a step by step process so I can ensure you have been properly pre-qualified and quoted a rate that encompasses your entire mortgage needs, not just a rate.  You can confidently go shopping for a home once you have been pre-qualified by me:)

I work around your schedule and I am available by email, phone, text or fax and I have a office located in Edmonton if you wish to meet.  I will make this process as easy for you with " Options, Not Restrictions"

Check out my YouTube channel

Thank-you for your time,
Amy Wilson
VErico Brokers For Life

Wednesday, January 13, 2016

Mortgage Down Payment Issues?

First Time Home Buyer? 

Having trouble coming up with your down payment? 

Here is a solution!!

ATB and RBC will lend up to $25,000 over 10 years to invest in an RRSP. 
TD will only lend over 5 years. Scotia will give you an RRSP loan line of credit but we will need to use 3% of the limit as your payment.
So your best offer is ATB and RBC.  I have the best contacts at ATB that also ensures a quick turn around.
They will allow you to keep the RRSP investment for the minimum 90 days required and then withdraw it to be used as the down payment on your home(under the first time home buyers program). These banks do not require you to payout the loan before you withdraw the RRSP. So your loan payment will continue to run for the 10 years and will be included in your qualification for the mortgage. This is a smart way to get your down payment. You save the tax on your RRSP investment (at estimated 30% that would save you $7,500). You don't pay the tax if you withdraw it under the first time home buyers program.

BMO, CIBC will not allow you to do withdraw the money from the RRSP investment, until the loan is paid in full.!

Thank you Pam and Len for the above article.

Amy Wilson
Verico Brokers For Life

Monday, January 11, 2016

"Do it your self garage" or "builder garage"?

Good Morning,

I had a wonderful conversation this morning with a client of mine that purchased a brand new home 3 months ago.   She gave me some excellent feedback that I will share here and pass on to all my home builder contacts so we can help future home buyers.

Megan had purchased a lane home with the option of getting a parking pad or a garage in the back. She was told to just build the garage on her own as it would be cheaper.  Megan took this advice and decided to get into the home and then work on the garage aspect after possession.

She has now learned that the builder garage package quoted at $16 000.00 was an excellent price. She has called a number of contractors and found out that she will need to pay a contractor $15 500.00 and THIS QUOTE WAS AFTER MANY THAT WERE HIGHER THAN THE BUILDERS QUOTED PRICE.  With her time included, the Builder's Garage was the way to go.



She learned even the simple items for example,siding can be a headache.  Did you know that upgraded siding bought in a big bundle could make no difference to the builders quote, but if you do it yourself, you are buying small amounts of siding, so your costs go up.

If anyone has any other tips to pass on to the future home
buying community please feel free to share here or direct to me.

Amy Wilson

Thursday, January 7, 2016

RBC’s mortgage rate hike - lesson's home buyers should take from this increase

Now may be the best time as any to get into that new home that you have been sitting on the fence wondering if it is a good time or not. One of Canada’s biggest banks has announced that they will be raising their rates on several of its fixed mortgages starting Friday with other major banks soon to follow.
Click here to read more about this rate change and how I as a Mortgage Broker can help you.

YOU DO HAVE OPTIONS…. please feel free to also contact me today, and I can help you navigate through all the details and find the best rate option for you- stress free! ‪#‎mortgagerates‬ ‪#‎homebuyers‬

Sunday, January 3, 2016

Positive Predictions For Canadian Housing Market in 2016

Due to low interest rates and strong markets in Toronto and Vancouver, several experts are predicting a steady year for the overall housing market in Canada in 2016.

The national average sale price is forecast to reach $448,700 in 2016, up 1.4 per cent from 2015, the Canadian Real Estate Association (CREA) says. That’s more moderate than the 8.4 per cent increase seen this year. 

But the key 2016 housing story is one of regional variations — and some regions of the country are going to come out in much better shape than others.

Click here to read more about the predictions for Canada's housing market.