Posted in Applying for a mortgage - Lisa Alentejano services the interior, Bank VS Broker, BC Mortgages, Canadian Housing Market - Lisa Alentejano, Canadian Mortgage News, Credit Scores, First Time Home Buyer Steps, fixed or variable rate or both, Fixed rates, Hombuyers Downpayment, Home Buyer Closing Costs, Home Loans, Interior home mortgage, Interior Mortgage Expert - Lisa Alentejano, Interior Mortgages, kelowna mortgage, Kelowna Mortgage Broker, Kelowna Mortgage Financing - Lisa Alentejano, Low Interest Rates, Mortgage Affordability, Mortgage by Lisa Alentejano, Mortgage Playground - Lisa Alentejano, Mortgage Consultant, Mortgage Rates, Protecting your biggest investment your mortgage, rate fixed mortgage, Save your money, Why use a mortgage broker

BANK VS BROKER

Buying your first home and getting your first mortgage can be an overwhelming experience.

If this is your first home buying experiencing, applying for a mortgage can be the most intimidating part of the process , so where do you start?

In the past, the home buyer turned to their banks for their mortgage needs, but now you have more options at your disposal with over 40% of consumers turning to mortgage brokers for their mortgages needs instead of the banks.

Mortgage brokers are provincially licensed and regulated by CMBA .   They can help you with all aspects of a mortgage, from figuring out how much you can truly afford, to determining the best mortgage product for you, to finding ways to save you money and pay off your mortgage faster.

Many lenders’ rates and mortgages can only be accessed through a mortgage broker. Not having the selection of lenders, and simply choosing to get a mortgage with a bank, can mean choosing harsher prepayment penalties for breaking your mortgage in the future, as well as a higher interest rate; which can cost buyers thousands upon thousands of dollars over the life of their mortgage.

A mortgage broker is also able to better tailor a mortgage product to your specific needs, whether that be working with a lender who is more flexible when it comes to self-employed income; one who has more flexible prepayment terms; or one that has more options for consumers that possibly have suffered some credit challenges in the past.  Because mortgage brokers have access to more lenders, they’re better able to find a lender and a mortgage based on your specific needs and financial situation to get you the lowest mortgage rates today.

Mortgage brokers offer convenience, which lets you meet around your schedule, not the banks hours.

Mortgage brokers also operate on commission and are paid by the lenders who ultimately grant you your mortgage, so there is no cost to the consumer.   Referrals are the life blood of our business so it is in our best interest to serve you as best we can.

Bottom line,  using a mortgage broker gives you the freedom of CHOICE and comparables to consider, using a bank gives you no other choice but ONE, theirs.

Feel free to contact me with any questions you may have at 1-888-819-6536 or lisa@mortgageplayground.com

 

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Posted in Applying for a mortgage - Lisa Alentejano services the interior, Bank of canada rates, BC Government Loans, BC Mortgages, Canadian Mortgage News, downpayment loans, First Time Home Buyer Steps, Fixed rates, Hombuyers Downpayment, Home Equity, Home Loans, Kelowna Mortgage Broker, Kelowna Mortgage Financing - Lisa Alentejano, Low Interest Rates, Mortgage Affordability, Mortgage by Lisa Alentejano, Mortgage Language, Mortgage Playground - Lisa Alentejano, Mortgage Consultant

BC First Time Home Buyer Downpayment Loans

save_moneyThere has been a lot of changes with regards to qualifying for a mortgage as of late, but I was happy to see that there is now some relief available for Canadian first time home buyers when it comes to buying a home and  saving for a downpayment.

The BC Government has implemented the BC Home Owner Mortgage and Equity Program granted to Canadian citizens or permanent residents who have never previously owned a property and only apply to homes worth less than $750,000. A buyer must be able to     pre-qualify for a mortgage (that’s where I come in) and have a gross household income of less than $150,000. Applications open Jan. 16, and the program ends March 31, 2020.

The government would put a second mortgage on a property to reflect the amount it loaned, but not require any interest payments or payments on the principal for the first five years. After that, the 20-year repayment plan would be set at the prime lending rate plus 0.5 per cent, leaving the homeowner to pay back both the original mortgage and the down-payment loan at the same time.  There is no restriction to pay the loan out in part or full at any time.

The loans are available for condos, townhouses or detached homes. On a property worth $600,000, the government loan could help a buyer meet or exceed the federally set minimum down payment of $35,000. In one example, provided by B.C. Housing, a person who saved $30,000 could apply to get an additional $30,000 from the province, giving the buyer a $60,000 down payment.

Another example for reference is; as the minimum downpayment requirement is 5%, you, the consumer,  would have to come up with 2.5%, then the government would match the additional 2.5% required to make up the total 5% downpayment.  There are different sources of downpayment to consider as well;  RRSP, Borrowed, gifted from a family member or your own savings.

As always if you’re considering purchasing a home in the near future, the best thing to do is be informed.  My consultations are free and there is no obligation.  If you are simply looking to explore your options or curious and have some questions, please do not hesitate to email me at lisa@mortgageplayground.com or call me toll-free at 1-888-819-6536.

Lisa Alentejano

 

 

 

Posted in advice on locking in your mortgage, Applying for a mortgage - Lisa Alentejano services the interior, British Columbia Mortgages, Canadian Economy, Canadian Home Buyers Academy, Canadian Mortgage News, First Time Home Buyer Steps, Hombuyers Downpayment, Home Buyer Closing Costs, Home Loans, Kamloops broker, Kamloops First Time Home Buyer Tips, Kamloops home mortgages, Kamloops Mortgage Broker - Lisa Alentejano, Kamloops Mortgages, Mortgage Affordability, Mortgage Broker Kamloops, Mortgages - Get a second opinion, Pre Approval Mortgage, Protecting your biggest investment your mortgage, Real Estate Market, Refinance Your Mortgage, Refinancing, Save your money, Why use a mortgage broker

CANADIAN HOME BUYERS ACADEMY

Working For You!

 

 

Are you interested in making some cash when you buy or sell your next home? Maybe you simply want to learn more about Real Estate in Canada? Have You been looking for general information on buying and financing a home but cant seem to find the information in one specifac place that has consistent information.  Take a good look at this program, I think you will find alot of great information and tools for you to use.

I am proud to be a part of this worthy and valuable program.

Go check it out here http://www.canadianhomebuyersacademy.ca

Posted in BC Mortgages, BCMortgage, Benchmark interest rate, Best Rate Mortgages, British Columbia Mortgages, buy vs rent for students, Canadian Economy, Canadian Housing Market - Lisa Alentejano, First Time Home Buyer Steps, fixed or variable rate or both, Fixed rates, fixed term mortgages, Hombuyers Downpayment, Home Equity, Interior Mortgages, Jim Flaherty, Kamloops broker, Kamloops mortgage consultant, Low Interest Rates, Mortgage Affordability, Mortgage Rates, new mortgage rules canada, Protecting your biggest investment your mortgage, rate fixed mortgage, Refinance Your Mortgage, Refinancing, Renewing your mortgage, Why use a mortgage broker

TD, RBC End 2.99% Mortgage Deals Early

After a crazy month fielding calls about rates and competitive rates from the major banks, they have put a hault on them.  Although the product that were attached with them were limited and badly disclosed to consumers, there are still amazing rates to be had in the mortgage market.  The problem with banks is that they can choose to give one rate today and a different rate tomorrow.  All I can suggest be informed and do your homework and ask questions when shopping for a mortgage.  Its not always about rate its about having a mortgage plan that suits your needs and someone that can show you ways to save money on your mortgage long term!  If your interested in learning more about how to save money on your mortgage , no tricks no catch good ole information for you from me  http://bit.ly/AfD2RR    Here’s the article below;

After briefly offering record-low rates of less than 3% on some of its mortgages in response to its rivals, Canada’s two biggest banks have pulled back their offers prematurely.

Toronto-Dominion Bank, Canada’s second-largest bank, raised its special four-year closed fixed rate mortgage 40 basis points to 3.39%, effective Wednesday, while also introducing a special five-year closed fixed rate mortgage at 4.04%.

The bank also hiked its five-year closed mortgage 10 basis points to 5.24%.

TD had said it would offer the special rates until Feb. 29.

The moves put TD back in line with Royal Bank of Canada, which made the same rate decisions on Monday, coming into effect Wednesday.

RBC had also initially planned to keep its special rates available until Feb. 29

 

The only difference is RBC already had the special five-year closed fixed rate mortgage product, which it increased 10 basis points to 4.04%.

RBC had first cut its rate to 2.99% in January in response to a similar cut from BMO.

Matt Gierasimczuk, a spokesman with RBC, said the bank had to end its special prematurely because of rising funding costs.

“Our long-term funding costs have gone up considerably due to global economic concerns and, while we have held off in passing on these rate changes to our clients, it is now necessary for us to increase this mortgage rate,” he said in an interview with Bloomberg News on Monday.

With household debt-to-income ratios at at historic highs and still on the rise, the Bank of Canada has repeatedly voiced its concerns over the past year that Canadians are living beyond their means.

“We have expressed on numerous occasions our concerns about rising household indebtedness,” senior deputy governor Tiff Macklem said in a question-and-answer session following a speech in Toronto Tuesday. “The simple fact is that consumers are consuming more than they’re earning.”

With files from Reuters and Bloomberg News

Posted in Bank of Canada, Bank of canada rates, BC Mortgages, Benchmark interest rate, Canadian Economy, Canadian Housing Market - Lisa Alentejano, Canadian Mortgage News, First Time Home Buyer Steps, fixed or variable rate or both, Fixed rates, Jim Flaherty, Kamloops broker, Kamloops First Time Home Buyer Tips, Kamloops Mortgages, Kelowna Mortgage Broker, Low Interest Rates, mark carney, Mortgage Broker Kamloops

No evidence of housing bubble:Flaherty

NEW YORK – The Vancouver housing market is attracting unusually strong demand but Canada as a whole does not face a housing bubble that requires government action, Finance Minister Jim Flaherty said on Wednesday.

Mr. Flaherty and Bank of Canada Governor Mark Carney have paid close attention to Vancouver housing prices, and they have warned Canadians not to take on so much debt that they will not be able to service it when interest rates rise.

Asked at a news conference in New York what it would take for Canada to act again to cool the market, he said: “It will take clear evidence of a bubble in the housing market in Canada, which we have not seen.”

Given low interest rates, the level of housing demand in Canada is not surprising, Mr. Flaherty said. But he added: “We have seen in the past year some softening in the Canadian housing market, in part due to the tightening of the insured mortgage market rules that we did earlier this year… That’s an appropriate result from that tightening.”

The International Monetary Fund said in a report on Wednesday that private credit remains strong in Canada and that the government might need to consider further measures to prevent households from taking on too much debt.

“Developments on the housing front require increased vigilance, and consideration may need to be given to additional prudential measures to prevent a further buildup in household debt,” the lender said in its Western Hemisphere outlook.

A survey released on Wednesday by Canada’s leading real estate broker showed the average price of detached one- and two-story homes in Vancouver has risen by about 17% in the past year to more than $1-million — about three times the national average.

Home resale prices for Canada as a whole have risen between 5.7% and 7.8% over the past year, the report said.

Asked what would constitute evidence of a bubble, Mr. Flaherty said: “If we saw dramatic surges in prices in some part of the country. There’s some demand in Vancouver in particular, particularly from the Asian people coming to Canada who are investing in real estate. So there’s some demand there that is unusual in terms of the entire country, but overall across the country there’s been some moderation, which is good.”

The government has tightened mortgage rules three times since 2008, most recently in January.

Posted in Canadian Economy, Credit Scores, Debt, First Time Home Buyer Steps, Home Equity, Kamloops broker, Kamloops mortgage consultant, kamloops mortgage financing, Mortgage Affordability

Young Money, Striking a balance after graduation

A great read here for you.  Finances, savings and investments for the future seems to be the furthest things from our young peoples minds after graduation.  Its a great opportunity to start education our younger generation before they graduate and introduce them to simple and small steps on how to apply and build their credit, saving for their future and what it takes to apply and be approved for a mortgage later down the road when they need one.

Personally I would love to see a mandatory life skills/financing course be offered earlier on in life, like high school, to teach and prepare our younger generation on these important topics.  Its sets them up for success later on in life and teaches them the importance of managing credit early on.  Its also a good time for us as parents to take the lead role and have a conversation and teach our kids the importance of managing money and credit responsibly.  I’m guessing that alot of us simply leave it for them to figure out on their own.  Here is a great place to start, simply click on the link below, here you will find numerous topics of interest to help guide you about, the best bank accounts that are free,  the lowest rate credit cards, mortgage calculators and the list goes on.   Of course if you have any questions about financing or credit, please feel free to contact me directly.

http://www.fcac-acfc.gc.ca/eng/default.asp

University graduation is a significant milestone. Being a student means a few things; studying hard, spending frugally, developing friendships, sleepless nights, and dreaming of what’s next.

It only seems right that graduation be the end culmination of some of these habits. With year-round employment income, no longer does one have to pass over the weekend Vegas trip, the spring break in Mexico or the purchase of a new car. Right?

As a financial advisor, I am fortunate to meet a significant portion of the population who have recently completed their studies, they’ve landed their first job and they’re eager to continue learning, with a newfound emphasis on personal finances. In our industry, for the benefit of the individual, it is common to place individuals amongst various stages in the financial life cycle. Placement in these stages is broad, but adequate, and helps bring clarity to preparation for tomorrow and beyond. For ease purposes, let us consider a recent graduate, an occupant of the “young adult” life stage. Young adults are currently employed and have little monthly expense obligations. What is most important for young adults is considering the near future, for most, marriage, home purchase and children are on the horizon. These are three distinct life events that all come with significant financial consequences, this next stage entails some of the largest expenses one is likely to incur in their entire life; the importance of preparation is obvious.

Young adults have a window of opportunity for great savings, though it is mainly true that these are their lowest income-earning years, expenditure obligations are also at their lowest. All too often individuals ignore this opportunity, lured instead by the vast availability of credit, nights on the town, vacations and all the newest consumer goods.

It’s easy to lack budgetary awareness when excess funds are only a credit limit increase away. In no time at all balances accumulate and instead of heading into the next life cycle stage fully prepared, they often go into it well-behind, strung down by these outstanding balances and sometimes even a poor credit score. Down the road in this instance, seeking a mortgage approval to house a young family becomes a fierce obstacle, not to mention the difficulty in saving for a down payment. Why not go into that stage armed and ready. Having significant savings and a clean slate of credit can mean a quick approval, possibly a larger down payment, significantly decreasing the interest one pays, unlocking even more savings.

This solid financial foundation may also put one in the position to bargain for a much lower mortgage rate, again more saving. In regards to mortgages, interest rate, amortization and down payment all greatly affect total payback amount (the amount that actually comes out of your pocket in the end).

Getting the ball started on savings is critical, but how one saves is also important. Young adults are extremely lucky to have the TFSA at their disposal. It is a plan geared to help individuals save faster, by not paying taxes on any and all accumulated gains (interest or capital), one can keep more money in their pocket. What makes this demographic so lucky is they have time on their side, a 22 year old graduate today has the potential benefit of 40 years worth of tax-free savings between now and age 62 (a very general assumption for an age of retirement), the plan does not break down either, the funds can be kept TFSA sheltered for even longer if desired. An individual in their 40’s does not have the benefit of this extensive time frame. The TFSA does not have to be retirement oriented, withdrawals are not limited (though re-contributions are over-contributions face penalty fees) so if the time comes to make a significant purchase, funds in your TFSA can be made available.

An individual contributing $400 monthly for five years into a no-interest savings account would accumulate $24,000. That same $400 contribution put into a TFSA, earning a modest 4.5% annual average, would achieve an amount of $27,100. The importance of interest, and more specifically, the importance of tax-free interest, is seen in the extra $3,100.

$400 is a great starting amount. Firstly, it sets up well in regards to TFSA contribution restrictions, the $4,800 annually that you contribute falls within the current $5,000 maximum. Further savings can be kept in non-registered accounts or deposited to an RRSP (for further tax advantage). TFSA contribution maximums have the potential to increase in the coming years, so an increase to the $400 may soon be of option as well. Secondly, it’s an amount that, added with a young adults current monthly rent amount, is lower than what ones monthly shelter cost would be on a mortgage. It is important to consider mortgage payment (principal, interest and insurances), utilities, property taxes, condo fees, etc. when calculating shelter costs. This could be considered experience gained towards the budgetary constraints that will someday come along with future mortgage costs.

Doing the things that you were forced away from during school is still important. Strike a balance between spoiling yourself and saving. It is best that the balance be savings heavy, spoiling yourself should never come at the expense of one’s credit or savings.

I know it’s difficult, I’m living it, I graduated one year ago this month. I wasted hours of study time daydreaming of my future lifestyle, fast cars, Vegas villas, and a lot of golf. I overlooked many of the costs that were to come.

Reality sure can hit a person, but I’ll choose being hit now while I can handle it, as opposed to ten years from now when it’s possible my wife and children also have to take the brunt.

Kyle Baranyk is a Financial Advisor at Servus Credit Union Ltd. in Calgary

Posted in British Columbia Mortgages, Canadian Economy, Canadian Mortgage News, First Time Home Buyer Steps, Hombuyers Downpayment, Mortgage Rates, Mortgages - Get a second opinion, Protecting your biggest investment your mortgage, Why use a mortgage broker

RBC mortgage specialist goes to far

Royal bank mortgage specialist wrote a very mis informed article about what mortgage brokers do and what type of services we offer. Read the statement here

Competition is good i think, and it gives me more reasons to show the clients that come from RBC to me,  things like this.  Move over RBC , brokers are gaining more and more market share.

Im not going to spend alot of time arguing her points, you can clearly find other articles on my blog that explain the value of using a mortgage broker.

Enjoy the read, i sure did.