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Advantages of using a Mortgage Broker

Advantages of using a Mortgage Broker

Borrowing, Home Buying Advice, home loan, interest rates, mortgage broker, Mortgages, online mortgage
Mortgage Brokers are your personal shopper when it comes to mortgages. Brokers will have access to many lenders, each of them servicing a certain type of borrower. Brokers can present your application to the right lender, knowing which one will be a great fit. Using established relationships with lenders and presenting the file to them can save time. Timing is everything in a purchase situation; brokers will present the deal to the right lender to get an approval. Many of the lenders brokers use are only accessible through the broker channel. There are many situations where a borrower may not get the best rate, or possibly even a mortgage from their own bank. Brokers help borrowers who are self-employed, have tarnished credit or are just looking for the best rates.…
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House prices expected to drop in 2017

House prices expected to drop in 2017

Borrowing, crea, home buyer, Home Buying Advice, home prices, home sales, Mortgages
Canadian realtors are forecasting a price drop across Canada for the first time since 2008. They blame the new mortgage regulations brought in by the federal government in the last quarter of 2016. 2016 was a strong year for real estate, the forecast is more bleak for 2017. House prices are expected to fall nationally by 1.6%, with sales activity dropping by 11.5%. Some markets may see an even bigger drop. Tighter regulations will decrease the number of buyers that qualify for mortgages. Regulations have increased capital costs for lenders, causing an increase in interest rates. It is still too early to say what the long term effect of these policy changes will be on the Canadian housing market. Share this:
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Longer amortizations…why do they cost more?

Longer amortizations…why do they cost more?

Borrowing, Home Buying Advice, interest rates, mortgage payments, mortgage rates, mortgage rules, Mortgages
With new regulations, insured mortgages have a maximum 25 year amortization. Banks often choose to insure low ratio mortgages, and cover the cost themselves. Having insured mortgages allows banks to off load the risk and securitize these mortgages.Consumers can choose to go with longer amortizations 30 or 35 years. These longer amortizations would equate to lower monthly payments. Banks are charging a premium from .1% to .25% on mortgage rates for extended amortizations. The increase in the rates cover the risk as these mortgages can no longer be insured. Share this:
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Mortgage insurance rule changes…how will they affect you?

Mortgage insurance rule changes…how will they affect you?

Borrowing, Home Buying Advice, homebuyers, interest rates, mortgage insurance, mortgage payment, Mortgages, Residential Mortgages
In October and November this year the Government of Canada made changes to mortgage insurance requirements. Mortgage insurance is provided by three companies in Canada. The biggest provider of mortgage insurance is CMHC a crown corporation. This insurance is paid for by the borrower and protects the lender in case of default. It reduces the lenders risk therefore enabling consumers to purchase homes with as little as 5% down. Changes include having all insured mortgages pass a “stress test” to ensure that borrowers can afford a rise in interest rates. Traditionally mortgage insurance only affected high ratio mortgages, 5 – 20% down payment. Recent changes include all refinances and conventional insured mortgages. Borrowers still pay the contract rate that the lender is offering; but have to qualify at the benchmark…
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The Home Buying Process

Borrowing, Home Buying Advice, Home Page
What's involved in buying a home? 1: Getting your Pre-Approval The first thing that you should do, even before looking for a home, and getting your hopes up is getting pre-approved for a mortgage. This can save you countless hours of going to shop for houses, only to find out that you don't qualify or have the credit available to get a mortgage. 2: Get looking for a home This is the fun part. Go and find a realtor, and tell them all the stuff that you want in your home. Maybe you like granite countertops and hardwood floors. With the vast information and listing information at their fingertips, they will be able to find one that not only has what you want but fits in your budget. 3: Put an…
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The Lender’s Equations: How Much Mortgage will you Qualify for?

The Lender’s Equations: How Much Mortgage will you Qualify for?

Borrowing, credit, debt, gds, Home Buying Advice, mortgage, mortgage application, mortgage calculator, Mortgages, Residential Mortgages, tds
Knowing how much you can reasonably, comfortably and responsibly contribute to home ownership is paramount in your making a wise and sound investment on your Canadian property. The big four factors that generally contribute to this mortgage amount are: Monthly income generated The amount you can contribute to your down payment The mortgage interest rates and term you qualify for Other financial commitments or debts you are obliged to pay Lenders basically use two rules to determine the mortgage you are eligible to be funded to receive, in addition to examining your credit history and FICO score: Gross Debt Service Ratio (GDS) Total Debt Service Ratio (TDS) The Gross Debt Service Ratio (GDS) includes mortgage payment (principal and interest), heating expenses and property tax (referred to in the mortgage industry…
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Happy Home Hunting Tips for Canadians

Happy Home Hunting Tips for Canadians

Borrowing, budget, financing, Home Buying Advice, homebuyers, investments, mortgage application, mortgage insurance, Mortgages, Residential Mortgages
Finding the right home for you and your loved ones really comes down to three chief factors: Affordability: Does the home fit into your budget? Have you determined the financing you can qualify for through a mortgage pre-approval? Have you factored in mortgage insurance, utilities and heating expenses, association fees and taxes? Lifestyle: Is the home located in an area within the proximity of the amenities you and your family require? Is the lot large enough for your pet(s)? Will owning this home impede you from doing the things you love doing? Are you close enough to work, family and friends? Future Needs: Are kids a possibility in the future? Is the home large enough for a family? Is the basement developed? Are there schools nearby? Or, if you are…
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Protecting Yourself From Identity Theft is Common Sense

Protecting Yourself From Identity Theft is Common Sense

Borrowing, credit card, fraud, Home Buying Advice, mortgage, Residential Mortgages
Protecting Your Identity Your DNA solely codes you. Your fingerprints will never match someone else’s. There is no reason why your identity should be any different. The vast majority of people rarely think about the possible ramifications for using their identity improperly, or how devastating an identity theft can be to their personal lives. We come across emails every day wherein people include all of their personal information. Our online mortgage application is secure, firewalled and password protected, but email is not. Email transmissions are not protected from hackers, phishers, thieves, and con artists. Take these measures to keep your identity protected: When using an Internet service use a secure application, no matter how small the transaction is. Sending credit card numbers through an email could be dangerous. Never share…
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Building the Right Team at Mortgage Time

Building the Right Team at Mortgage Time

Borrowing, broker, Home Buying Advice, mortgage, mortgage rates, Residential Mortgages
Your mortgage is one of the largest purchase items you will probably take on in your life. In making that commitment, you will most likely seek advice from several people: your family, your partner, your real estate agent, your financial planner and your mortgage broker. Ensuring that you employ the best real estate professionals that you have access to – home buying professionals with your best interest in mind – will save you exponentially down the line. It takes a solid team to secure an optimal home. Finding a well-connected Canadian mortgage broker is your first step. A mortgage broker will help you ascertain the true amount you can afford to spend on your new home, before you start shopping. A mortgage pre-approval will give you powerful buying power with…
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