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

 

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 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.

Posted in BC Mortgages, Best Rate Mortgages, British Columbia Mortgages, Canadian Economy, Canadian Housing Market - Lisa Alentejano, First Time Home Buyer Steps, Hombuyers Downpayment, Home Loans, Mortgage Affordability, Mortgage Rates

Six questions to ask before you buy a home

Wondering if you should continue renting or take the plunge into home ownership? To help you clarify this debate, we’ve compiled a list of questions from various professionals associated with a real estate transaction. Answering the right questions about the early stages of the home ownership process will likely help you sit confidently with your decision to stay put, or leap with eyes wide open into the market.

More related to this story

Discussion Tuesday, 1 p.m. (ET)

Where are the housing hot spots?

Why do you want to buy a house?

This is an important question for first-time buyers, according to Sarah Wilson, a Calgary-based Certified Financial Planner and consultant with T.E. Wealth.

First-time buyers have to ask themselves if they want a home because their friends are buying and they think it’s the next step or because it actually fits into their long-term life plan and will be a smart financial move. Ms. Wilson adds that we should have an overall financial plan that takes into account our short and long-term life goals, to ensure that such a significant investment makes sense. If you don’t have a financial plan, then locating a certified financial planner for a discussion would be a smart step.

What values will I honour by buying or renting?

Christie Mann, a Toronto based leadership coach and consultant, asks clients how buying or renting will align with their life vision and specifically their five-year plan. Travel plans, entrepreneurial pursuits and timelines for starting a family are all examples of things to consider in your five-year plan.

If you are thinking of starting a family in the next five years, for example, will the home you are considering accommodate such a life change? If not, you should think about the financial implications of selling a few short years after buying.

Why take a five-year view? According to Ms. Wilson, we have to realize that when we’re buying a home, we’re buying into a market, and if we are going to buy, we need to be in our home for at least five years. If we sell our homes prior to the five-year mark, there’s a higher risk we won’t get our money back due to the fees associated with the transaction, compared to the increase in the home’s value.

Are you ready for home ownership?

Owning may match up with your values and fit neatly into your financial plan, but that might not mean you’re ready for ownership. When you own, you see the property in a different light, according to David Fleming, founder of TorontoRealtyBlog.com.

“You look at your floors and think about replacing and upgrading them. You get down on your hands and knees and plant flowers. You paint. You decorate. You want bigger and better for your house,” Mr. Fleming says.

However, he adds that people should be ready to “rake leaves, shovel snow, take out garbage, and deal with racoons, damp basements, and leaky roofs.” If a problem arises, you can’t just call the landlord and be done with it. You’re now on the financial hook for the repairs and the upkeep. You inherit the good and the not-so-good elements of home ownership when you’re handed your keys.

Do you have a steady job and income?

It’s harder and harder to be approved for a mortgage if your provable earnings are not steady. A steady income and a reliable job make a very big difference these days, according to Mike Averbach, president of Averbach Mortgages in Vancouver. He adds that going through a full analysis of credit and income is an important first step for house-hunters because it provides an accurate feel for the amount of house you can afford and will address any possible issues before you begin your search.

A credit check can be done free of charge with a broker, or you can receive your score and a detailed credit report for around $20 at either Equifax or Trans Union. The best lending rates are usually reserved for those with a score of 750 or higher. A higher score could translate into thousands saved over the life of a loan. When you get your report, scan it for any discrepancies – they happen more often than you think – and correct them right away. It’s best to know you’re in good standing prior to applying for any type of loan.

Do you have any money saved for a down payment? What about for the closing costs?

You can purchase a home with less than 20 per cent down, but if you do, you’ll be required to pay mortgage insurance. If you’re purchasing a home later in life, and with a partner, 20 per cent isn’t entirely unrealistic. However, it’s still very difficult.

You’ll also need to consider closing costs, which can add thousands to your total bill. Click here for a list of costs to consider, such as moving expenses and legal fees. If you’re not prepared for the closing costs, you could be left shocked and scrambling at the eleventh hour to find the necessary funds.

It’s also important to consider how much your monthly mortgage payment will increase if rates rise (if you choose a variable rate mortgage) or when your mortgage comes due at the end of the first term, Mr. Averbach says. It is quite easy to calculate the outstanding balance due at the end of a mortgage term and worth the exercise to see how much an increase in interest rate will affect the monthly payment, he says. Then, it’s back to your five-year plan. Will you be in a position to manage an increased debt load, or do you plan to be living on one salary with two children at home?

How much are you spending now for rent v. your expected mortgage payment?

Speaking with a mortgage specialist or plugging numbers into an online comparison calculator will help you get a rough idea of the financial implications of each scenario. It’s often a good idea to pretend you’re making the increased monthly payments for at least a few months. If you’re paying $1100 in rent, for example, and your mortgage broker tells you your housing costs would double, try socking away $2200 a month to see how it feels, how it affects your lifestyle and if it’s doable. You might be in a better position a few months from now if you socked away more money and worked toward the goal of homeownership in the future.

If you’re new to the mortgage process, there are a number of great sites, www.mortgageplayground.com to help simplify the mortgage process and provide a wealth of important information to consider.

I’ve been to housewarming parties where the homeowners are ridiculously happy, full of pride showing off their new space, and clearly ready for the financial commitments. I’ve also spoken to friends, months after their purchase, who feel house poor, overwhelmed and unprepared. You don’t want to end up like the latter, so it’s key to consider all aspects — financial realities, goals and values — before you make any move.

financial post

Posted in BC Mortgages, Canadian Housing Market - Lisa Alentejano, Canadian Mortgage News, Hombuyers Downpayment, Interior home mortgage, Interior Mortgages, Kamloops Mortgage Broker, kamloops mortgage financing, Mortgage Affordability, Mortgage by Lisa Alentejano

Mortgage Market Changes – Effective April 2010

Mortgage Market Changes

Effective in April – make sure you’re in the know

Home buyers and real estate investors need to keep up with some upcoming changes to mortgage rules that could affect their purchase, if they are applying for a mortgage with a down payment of less than 20% of the value of the property.

Qualifying for a Mortgage

Borrowers applying for a variable-rate mortgage or a fixed-rate mortgage with a term of less than 5 years must qualify based on the Bank of Canada’s five-year fixed posted mortgage rate.

Rental Properties

A minimum down payment of 20% will be needed for government-backed mortgage insurance on non-owner-occupied properties such as rental properties.  There are also changes in how much of rental income can be used when qualifying for financing.

Self Employed?

Make sure you contact me about how to show proof of income to lenders, and access mortgage products tailored for your needs.

Call Me

for the Information You Need to Know

For full details on the changes, and personalized advice on the mortgage that fits your needs, contact me for a free, no-obligation consultation.