Happy New Year
What a great way to start the New Year with a 5 year fixed Mortgage at 3.29% *
Variable Mortgages available as low as 2.50% *
* some conditions apply and rates are subject to change.
Wednesday, 8 January 2014
NEW YEAR Mortgage predictions
Here are my predictions fro 2014
Mortgage Rates
Fixed rates will drop due to competition within the Lenders for Market Share and a recovering Stock Market. The Bond Market should allow 5 Year Fixed rates to land around the 3.19% level by March this year.
I predict the Back of Canada Rate will be stable at least until July this year and the 3.00 % Prime rate
will hold. Later this year we might see a .25% jump.
Lending Policies
I see further tightening by the government by way of Bill 20/21 this time focusing on the insurers. Lenders will have to do more due diligence on Self Employed files and more focus on the property itself.
Auto Appraisals.
Many Lenders use Auto Appraisal systems instead of Appraisals. I see a tightening and more full appraisals being requested. Wait times could be as much as 3-5 days as Appraisers find it hard to keep up with the demands.
As always, I suggest using a Mortgage Broker for your purchase or refinance. You get access to many products and Lenders. Theses days, everyone needs advice and experience behind them to get the best deal and the job done.
Mortgage Rates
Fixed rates will drop due to competition within the Lenders for Market Share and a recovering Stock Market. The Bond Market should allow 5 Year Fixed rates to land around the 3.19% level by March this year.
I predict the Back of Canada Rate will be stable at least until July this year and the 3.00 % Prime rate
will hold. Later this year we might see a .25% jump.
Lending Policies
I see further tightening by the government by way of Bill 20/21 this time focusing on the insurers. Lenders will have to do more due diligence on Self Employed files and more focus on the property itself.
Auto Appraisals.
Many Lenders use Auto Appraisal systems instead of Appraisals. I see a tightening and more full appraisals being requested. Wait times could be as much as 3-5 days as Appraisers find it hard to keep up with the demands.
As always, I suggest using a Mortgage Broker for your purchase or refinance. You get access to many products and Lenders. Theses days, everyone needs advice and experience behind them to get the best deal and the job done.
Wednesday, 13 November 2013
Mortgages for Rental Properties
Several years ago, it was fairly easy to obtain a mortgage to purchase a rental property.
If the rent carried the mortgage, taxes and condo fee's if applicable your would probably get approved for up to 80% financing.
That's changed is recent years. Now lenders are looking for Debt Servicing. example.
A client needs to be able to carry their own home and the rental property against there own income and 50% of the rental property income. The Total debt cant exceed 42% of the total income.
This is difficult for many investors and pretty much impossible if you own 2 rental properties.
One solution is to use a non bank lender that has different risk models and uses different underwriting calculations. I have access to these lenders. You might pay a slightly higher rate but don't forget its all tax deductible if the property is for investment.
Getting preapproved for rental purchases is often overlooked and yet this type of mortgage financing has been tightened up almost as much as self employed deals.
Get preapproved and try to avoid properties with heavy taxes and condo fee's
If you own a Rental property or plan to purchase one or two give me a call to see what you can borrow.
If the rent carried the mortgage, taxes and condo fee's if applicable your would probably get approved for up to 80% financing.
That's changed is recent years. Now lenders are looking for Debt Servicing. example.
A client needs to be able to carry their own home and the rental property against there own income and 50% of the rental property income. The Total debt cant exceed 42% of the total income.
This is difficult for many investors and pretty much impossible if you own 2 rental properties.
One solution is to use a non bank lender that has different risk models and uses different underwriting calculations. I have access to these lenders. You might pay a slightly higher rate but don't forget its all tax deductible if the property is for investment.
Getting preapproved for rental purchases is often overlooked and yet this type of mortgage financing has been tightened up almost as much as self employed deals.
Get preapproved and try to avoid properties with heavy taxes and condo fee's
If you own a Rental property or plan to purchase one or two give me a call to see what you can borrow.
Wednesday, 30 October 2013
Exclusive Mortgage Offers
I just finished a conference call with our Head Office.
We discussed our Exclusive offer not available from other Banks or Mortgage Brokers.
Mortgage Centre Canada is now offering a 5 Year Term at 3.49% .
This rate is .20 below other Banks and Lenders.
This offer is for clean deals, owner occupied, good credit.
We discussed our Exclusive offer not available from other Banks or Mortgage Brokers.
Mortgage Centre Canada is now offering a 5 Year Term at 3.49% .
This rate is .20 below other Banks and Lenders.
This offer is for clean deals, owner occupied, good credit.
Wednesday, 9 October 2013
Bank Mortgage Approval Turnaround Time
I spoke with a former co-worker today who sells mortgage at a major bank.
He was quite upset that his approval centre is running about 4 days right now.
he is losing deals to other bankers and the Broker industry because of this service.
At the same bank, I get a maximum 2 day turnaround and most times even faster. Also I have 4 dedicated
underwriters to work with which gives me a familiarity and my old friend has no idea who his deal will go with at any time.
In the broker world we are treated like a preferred customer so that the Lender can win our business every time.
Another reason to work with an experienced Mortgage Broker
He was quite upset that his approval centre is running about 4 days right now.
he is losing deals to other bankers and the Broker industry because of this service.
At the same bank, I get a maximum 2 day turnaround and most times even faster. Also I have 4 dedicated
underwriters to work with which gives me a familiarity and my old friend has no idea who his deal will go with at any time.
In the broker world we are treated like a preferred customer so that the Lender can win our business every time.
Another reason to work with an experienced Mortgage Broker
Monday, 7 October 2013
5 Year Mortgage Best Rate
Our company has been given access to a special 5 Year Fixed Mortgage Rate.
3.49%
This rate is well below the best rate offered by several major lenders.
5 year Variable is also available at 2.50%
Best Rates Best Service Best Advice
3.49%
This rate is well below the best rate offered by several major lenders.
5 year Variable is also available at 2.50%
Best Rates Best Service Best Advice
Wednesday, 2 October 2013
Self Employed Clients
Some Brokers and Bank reps say its more difficult to finance Self Employed clients.
I would agree that there is more work involved but fundamentally nothing has changed.
Being prepared and understanding the Lenders Polices and paperwork will still get you up to 75% financing. You need your NOAs and T1 Generals right up front. A 2 year average income will be used.
We also have the B Lenders who will do these deals for a higher rate to compensate for the perceived risk of no income proof. You can get up to 80% financing here.
As always use an experienced Broker to get the best results
I would agree that there is more work involved but fundamentally nothing has changed.
Being prepared and understanding the Lenders Polices and paperwork will still get you up to 75% financing. You need your NOAs and T1 Generals right up front. A 2 year average income will be used.
We also have the B Lenders who will do these deals for a higher rate to compensate for the perceived risk of no income proof. You can get up to 80% financing here.
As always use an experienced Broker to get the best results
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