Dawna Providenti Blogspot

Population of Various Cities and Towns

2012-02-16T16:51:00.001-08:00

Population of Various Counties

2012-02-16T16:50:00.000-08:00

New Listing! Visit www.greatmobile4sale.com

2012-02-09T11:54:00.000-08:00

Apply Now at :http://mortgageintelligence.ca/dawnaprovidenti

Helping Canadian Immigrants Obtain a Mortgage

2012-02-08T13:39:00.000-08:00

Before you Renew Your Mortgage-Know your Options

2012-02-08T13:37:00.000-08:00

Great Mobile for Sale in Bentley Lake Trail Estates Asking only $65000

2012-02-08T13:21:00.000-08:00

History of Interest Rates

2012-01-21T14:28:00.000-08:00

New Rate Sheet January 2012

2012-01-19T12:24:00.001-08:00

Average Sale Prices for Various Counties from 2005 to 2011

2012-01-14T17:20:00.000-08:00

Number of Sales per Various Counties from 2005 to 2011

2012-01-14T17:18:00.000-08:00

Average Sale Prices for Various Cities from 2005 to 2011

2012-01-14T17:15:00.001-08:00

Number of Solds Various Cities from 2005 to 2011

2012-01-14T16:56:00.000-08:00

Market Outlook for 2012

2012-01-14T16:42:00.000-08:00

Exclusive Offer from Mortgage Intelligence

2012-01-07T14:10:00.000-08:00

As a Mortgage Associate I am now able to help my clients obtain affordable Home and Auto Insurance from Unitas Insurance. Once a mortgage has approved and a commitment has been signed by my clients a representative from Unitas will automatically call the client and give to them a free quote on House Insurance and or Auto Insurance. Often when my clients combine their home and auto insurance policies there are additional discounts.

New Testimonial

2012-01-07T13:29:00.000-08:00

Advantages to Using a Mortgage Broker

2012-01-07T13:27:00.000-08:00

Financial Resolutions for 2012

2012-01-07T13:25:00.000-08:00

Canadians Buying US Properties

2011-12-06T15:57:00.000-08:00

2011-11-22T17:12:00.000-08:00

Refinancing Options

2011-11-22T10:42:00.000-08:00

Up and Coming Trends

2011-11-22T10:31:00.000-08:00

Comparison of Resale Prices from July 2010 & July 2011

2011-10-14T17:47:00.000-07:00

Exclusive Offer from Mortgage Intelligence

2011-10-14T11:18:00.000-07:00

As a Mortgage Intelligence Mortgage Advisor I am proud to be able to offer to my clients the opportunity for Home and Auto Insurance. You may call or one will automatically be scheduled when you are approved for your mortgage through me. The quote is free and you are under no obligation.

October Newsletter

2011-10-14T10:37:00.000-07:00

Economic conditions will help Canada's real estate sector stay healthy: CMHC

2011-09-15T20:31:00.000-07:00

Canada's national housing agency says it expects home sales and construction activity will cool but remain healthy in the second half of the year, due to favourable economic conditions that push up demand for homes.

Canada Mortgage and Housing Corp. said Monday that lower unemployment, a steady level of immigration, and low interest rates are working together to prop up Canada's real estate industry.

"I think the Canadian housing market is healthy at the moment despite the uncertainty we observed in the financial market," Mathieu Laberge, deputy Chief Economist at CMHC said in an interview.

He was referring to the stock market ups and downs earlier this month as investors worried about the European debt crisis and feared the U.S. could slip back into recession.

"Employment is expected to grow at a moderate pace in the next few years," he said.

"We expect interest rates to remain flat for the remainder of the year and increase in 2012, and new immigration is an addition to demand in the housing market."

Laberge said the CMHC predicts the market sales volumes will hold at a stable level next year.

Canada Mortgage and Housing Corp. said low unemployment, immigration and low interest rates led to fewer claims in the first half of the year under its mortgage insurance programs, which protect lenders from defaults by borrowers.

The agency said it expects fixed mortgage rates to stay relatively flat for most of the year, with the five-year posted rate at between 4.1 per cent and 5.6 per cent, then increase slightly in 2012.

CMHC said variable rate mortgages would remain near historically low levels, although some banks recently increased their variable rates to reflect the higher cost of raising money.

Prices of homes shown on the Multiple Listing Service are expected to grow only slightly going forward because the supply and demand for resale homes will likely stay in balanced territory, CMHC said.

A least one analyst agreed that the real estate market should stay fairly healthy for the rest of 2011, but said it's already cooling slowly and home prices may decline in the longer term.

"What you're probably looking at is a period where prices are relatively flat, maybe a little bit lower in the next few years," said Adrienne Warren, an economist at Scotiabank who specializes in the real estate industry.

"Affordability from a price perspective has deteriorated and that's going to have to, over time, come back to more normal levels but it doesn't imply that that has to happen quickly as a type of correction that occurs quickly."

She said interest rates are low and attractive right now and encourage first time home buyers to enter the market, which drives up prices. Once those rates begin to rise — likely in the second half of 2012 — the current price of homes will become unaffordable for many, putting downward pressure on future prices.

In its report Monday, CMHC said changes to mortgage rules introduced by the federal government earlier this year played a part in reducing mortgage interest payments and allowed Canadians to build equity in their homes faster.

Canadians are finding it easier to pay off their mortgages, with arrears levels improving and the volume of mortgage insurance claims lower than expected.

In March, the federal government put through new rules that reduced the maximum amortization period to 30 years and cut the maximum amount Canadians can borrow to 85 per cent of the home's value.

After the changes, refinancing activity fell by nearly 40 per cent, which means fewer Canadians took on more debt. Federal Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have repeatedly warned of the dangers of the ballooning debt level of Canadian consumers.

CMHC also reported its net income for the quarter was $383 million, up $61 million from $322 million in the same quarter last year. Revenues were down slightly at $3.3 billion, versus $3.4 billion.

The agency's predictions for the rest of the year echo a revised forecast by the Canadian Real Estate Association released earlier this month. CREA said it expected higher national home resales this year, reversing upward its previous forecast of a one per cent dip.

National average prices will be in the range of $347,700 to $374,300, growing to between $349,500 to $385,000 in 2012, CREA predicted.

CMHC said sales of existing homes should range between 429,500 and 480,000 units in 2011 and between 410,000 and 511,900 units in 2012.

Earlier this month, the CMHC said that national housing starts rose to 205,100 units on a seasonally adjusted basis in July, 11.6 per cent higher than the 188,900 reported in the same month last year and 4.3 per cent more than the 196,600 recorded in June.

Home building activity has been increasing through the first seven months of 2011, but starts are still down 4.6 per cent from a year ago.

Fixed, Variable, or Both?

2011-09-15T20:17:00.000-07:00

Indeed, noted CIBC economist Benjamin Tal says: "We know the five-year (fixed) rate is attractive, but we also know that the prime rate is not rising any time soon.
In the end, most people’s fixed/variable decision boils down to how much they want to pay (or need to pay) a lender for borrowing cost certainty.
Variable rates are roughly prime - 0.70% and a good 4-year fixed (arguably the best fixed term at the moment) is 3.09%. At the outset, that variable rate would save you $37/month per $100,000 of mortgage.
Your financial breathing room will largely determine if this upfront savings is enough to gamble that rates stay low after 18 months or so. If you don’t want to bet all your chips you can always consider a hybrid (i.e., a mortgage split into fixed-rate and variable-rate portions).
Professor Moshe Milevsky, Canada’s best known mortgage researcher, recently told FP: "I still don't get why more Canadians don't split their mortgage."
Milevsky is a noted proponent of hybrid mortgages, for two reasons: 1) people have no clue where rates will go; and, 2) rate diversification offers the same benefits as investment diversification.
If you’re interested in a hybrid, the most competitive nationally-available hybrids in Canada are currently available through Mortgage Intelligence.

September Newsletter

2011-09-15T19:55:00.000-07:00

New Rate Sheet for August 24 2011

2011-08-24T19:07:00.000-07:00

Average Resale Price for Local Markets for June 2010 & 2011

2011-08-05T17:21:00.000-07:00

2011-07-26T08:56:00.000-07:00

Smart Spending Strategies

2011-07-22T16:03:00.000-07:00

Average Resale Price for Local Markets

2011-07-22T14:43:00.000-07:00

New Rate Sheet for July 22 2011

2011-07-22T14:29:00.000-07:00

New low 5 Year Fixed

2011-07-12T09:07:00.001-07:00

Our best 5 year fixed is 3.64% but wait....we can do even better than that, but unfortunately those are unpublished specials that I can not advertise. So you must call to find out what they are.

Licensing of Home Inspectors

2011-07-11T21:22:00.000-07:00

Licensing of Home Inspectors

Effective September 1, 2011 all Home Inspectors in Alberta will be required to have a license. CAHPI Alberta has been lobbying the Alberta Government for several years to implement regulations for Home Inspectors in Alberta and are pleased that it has become a reality.

The current regulations have established a minimum level of education and experience. Registered Home Inspectors (RHI) and Associates with CAHPI - Alberta surpass the Government required levels.

To find a home inspector in your area visit:

http://cahpi-alberta.com/FindAnInspector.aspx

Borrowedd Downpayment

2011-07-11T21:02:00.000-07:00

Flex Down – Borrowed Funds

Target Client:

Despite having good credit, you have not been able to save up the required down payment. Clients can borrow the required down payment from a LOC, credit card or other source. Payments on borrowed funds must be included in TDS.

Advantages:

• Gives clients up to 95% financing
• Down payment will not be amortized with the mortgage, potentially saving money in interest charges
• Both fixed and adjustable rates are available

4 Payment Frequencies (Monthly, Semi-Monthly, Bi-weekly, Weekly)

Full Prepayment Privileges

This is just one of the products I offer to better meet client needs, today!

Buying a cottage and keeping the peace

2011-07-11T20:57:00.000-07:00

As summer approaches thoughts start turning to lapping waves, crackling campfires and tranquil forests. It’s the time of year when cottage, cabin or beach house fever starts to take hold.

But the sunny dream of owning a vacation home may be dampened by the reality of property prices in many of Canada’s popular vacation destinations, plus the usual homeownership expenses such as a mortgage, utilities, and taxes. Sharing these costs, along with joint ownership, can be ways for families or friends to buy a place that still feels like their own.

However, before making the leap into co-ownership of a vacation property, buyers must be sure that they really understand the ins-and-outs of sharing a vacation property.

“Before deciding to split the purchase with relatives or friends, having the right mix of personalities is key to a long-lasting arrangement,” “You and the other owners will have to decide jointly on everything, from when maintenance or urgent repairs need to get done, to shopping for common supplies.”

Considering the following questions as a group before moving forward:

Does owning a vacation property fit your lifestyle?

In addition to the fun and leisure aspects of a vacation home it is important to factor in the time and cost involved in year-round upkeep. How will the property be used? If your dream is to own a ready-to-live-in relaxing hideaway while your co-owners dream of a northern DIY project, you may not see eye-to-eye when it comes to how you will be spending your weekends.

It’s important to think carefully about how much time you and your co-owners plan to spend at the vacation property. Will you be vacationing as a group, or do you want to trade off on weekends? Will one use the property more than the other? Will it be a 50/50 split?

Have you thought about what’s involved before you put it up for rent?

Did You Know?

2011-07-11T20:48:00.001-07:00

Did you know…

75% of buyers feel it is very important to pay off their mortgage as soon as possible. 39% have their payment set higher than the minimum required, and 20% have made a lump sum payment since obtaining their mortgage. (2011 CMHC Mortgage Consumer Survey)

Purchase Plus Improvements

2011-07-11T20:27:00.000-07:00

Summer is here and customers are looking to upgrade. Why not consider a purchase plus improvements program. This program is great especially for those who found the home of their dreams in a great neighbourhood but it needs work.

Improvements available up to 10% of the purchase price

- C Contractor quotes must be submitted with application

Cosmetic upgrades (flooring, paint, kitchen, bathroom, basement development etc.)

Also receive Home Service Warranty and My Mortgage online

New Rates & Promotions

2011-07-11T19:42:00.000-07:00

1. 5.5%* Promotional Cashback Program until September 2^nd, 201. Use the equity in your home to lower your monthly payment plus get cash back.

2. New low rate, 5 year fixed at 3.69%. But wait, with increasing competion and the introduction of a new lender I can do better than that. But unfortunately, the lender does not allow me to advertise it. So you must call me in order for me to tell you the best possible rate available.

Millrates for 2011 for various Cities and Towns

2011-06-16T12:26:00.000-07:00

The following are is a list of updated millrates for various towns and cities.
Sylvan Lake-Residential 7.784 Commercial 13.298
Ponoka-Residential 8.3587 Commercial 13.298
Rocky Mountain House Residential 9.855 Commercial 11.1356
Lacombe Residential 9.1909 Commercial 12.4624
Bentley Residential 11.27794 Commercial 16.25294
Eckville Residential 10.75 Commercial 16.806
Rimbey Residential 9.1784 Commercial 12.0772
Red Deer 8.2209 Commercial 16.0387
Many of these rates are including both the additinal taxes collected for school and senior housing but it is always a good idea to check in with the municipal office for any changes.

Bigger Effort by Canadians to Pay Off Mortgage Sooner

2011-06-13T19:36:00.000-07:00

The Spring 2011 CAAMP/Maritz survey has found that mortgage holders - especially those who have purchased their homes recently are making considerable efforts to accelerate repayment of their mortgages.

Increased monthly payments:

· 22% of mortgageholders have increased their monthly payments during the past year,

· 16% had increased their payments in prior years (but not in the past year)

· 62% reported they had never increased their payments.

Made a lump sum contribution:

· 18% have made a lump sum contribution to their mortgage in the past year

· 17% did so in prior years (but not in the past year).

· 65% who reported that they had never increased their payments.

These payments are in addition to amortization that would occur via scheduled payments.

*Of the respondents, 40% (800 repondents) were homeowners with mortgages. The remainder were renters, homeowners without mortgages or individuals who lived with their families.

Source: CAAMP.ca

Great New Low Rate

2011-06-08T19:39:00.000-07:00

Mortgage Intelligence has another new lender who loves to help my clients save money on interest.
They are offering 3.51% for a limited time for my clients who are either purchasing or refinancing. This rate does not apply for those who are looking for a preapproval.

Protecting Clients Assets-CHIP Home Income Plan

2011-06-03T21:33:00.000-07:00

This is the time of year when your senior clients pay their income and property taxes.
With restricted cash flow, many seniors resort to drawing down on investments in order to meet their tax obligations.
I offer my clients a sound, tax-efficient alternative … CHIP Home Income Plan.
CHIP Home Income Plan proceeds are not added to income for tax purposes.
Best of all, CHIP will allow you to pay taxes and increase your cash flow without sacrificing your investment assets.
In certain situations, where unregistered investments generate income, CHIP Home Income Plan interest expense may be applied to gain tax deductions, further reducing your clients’ taxes.
And there are more great benefits:

no interest or principal payments due until your clients choose to move or sell
no income, credit or medical qualification required
Rates starting at 4.75% and 50 bps rate discount when interest payments are made annually

Seniors are the fastest-growing segment of the population. Like no other generation, they have been living longer, spending more, and saving less. I can help you meet your needs by providing you with a long-term borrowing solution that will meet your needs.

Mortgage Rate Outlook

2011-06-03T21:25:00.000-07:00

On April 12th, the Bank of Canada

announced that it was leaving the

Target for the Overnight Rate

unchanged at 1.0 per cent. The last

increase in the overnight rate

occurred on September 8, 2010 when

the Bank of Canada raised it by 25

basis points. The Bank of Canada is

expected to resume raising the

overnight rate in the fourth quarter of

2011. Mortgage rates, particularly

short term mortgage rates and

variable mortgage rates, are expected

to remain at historically low levels.

According to CMHC’s base case

scenario, posted mortgage rates will

remain relatively flat in 2011 before

increasing moderately in 2012. For

2011, the one-year posted mortgage

rate is assumed to be in the 3.1 to 3.5

per cent range, while three and

five-year posted mortgage rates are

forecast to be in the 4.1 to 5.6 per

cent range. For 2012, the one-year

posted mortgage

rate is assumed to

be in the 3.4 to 4.3 per cent range,

while three and five-year posted

mortgage rates are forecast to be in

the 4.2 to 6.3 per cent range.

Rates could, however, increase at a

faster pace if the economy ends up

recovering more quickly than

presently anticipated. Conversely, rate

increases could be more muted if the

economic recovery is more modest in

nature.

Source: CMHC

Rate sheet for June 3 2011-Check out the new low 5 year fixed

2011-06-03T20:44:00.000-07:00

Rate Sheet for May 24 2011-Check out my new low 5 year fixed!

2011-05-23T15:25:00.000-07:00

Mortgages Designed for the Self Employed

2011-05-23T14:19:00.000-07:00

It’s a favourite daydream of working Canadians: to go intoSource: Mortgage Intelligence

business for yourself! For some Canadians who are self-employed,

their situation is the consequence of corporate

downsizing. For others, it is a carefully planned decision to

leverage their knowledge and experience for themselves

and improve their own bottom line.

Typically a very innovative and energetic bunch, the selfemployed

now comprise approximately 16% of Canada’s

total workforce. We like to imagine that these are the lucky

folks who are living their entrepreneurial dreams.

Talk to self-employed Canadians about getting a mortgage

and many will tell you that the dream can have downsides.

These individuals – who may actually be more financially

successful than ever – often do not fit traditional mortgage

lending criteria. It can make mortgage shopping a frustrating

and, for some, a humiliating experience.

Without an established stream of pay stubs from an employer,

lenders have none of the traditional assurances that

you can meet your mortgage obligations. You may be expected

to undergo a long and complicated process to prove

your ability to service your debt. Lenders want to verify your

employment and your income – not a simple task for someone

who is self-employed. Lenders are also looking ahead;

they will want some evidence that payments can be made

for the life of the mortgage – not just over the next year.

Most frustrating of all, small business owners are usually

expected to provide detailed financial statements for their

business for the past two years. What picture do those

statements paint for the lenders? An astute business owner

with a good accountant will work hard to minimize taxable

income for the business: a smart financial management

strategy. When lenders plug those figures into their lending

formulas – they may conclude that you are a high-risk

borrower.

The problem is not with the self-employed as a category;

it is with lenders’ traditional criteria and their inability to

reflect the different income environment of a self-employed

homebuyer.

Thankfully, the lending landscape has adapted to this

market need. Certain lenders have designed mortgage

products precisely for this very attractive market segment.

Naturally, the lender will still need to assess risk, but the

criteria are tailor-made for the self-employed and

essentially take a common sense approach to the definition

of income. You could qualify for your mortgage based

solely on what you state your income to be, and after

confirmation that your lending ratios, credit and tax liabilities

are in good order. It can be that quick and easy!

As more lenders enter this market niche, you’ll find that not

all products are equal. As a group, the self-employed often

delegate to other professional service providers and this is

a situation where you may want to seek advice from a

mortgage professional so you get the best mortgage for

your needs.

For the self-employed – who build their own success on

understanding the needs of their customers – the new

mortgages designed for them are good business. And

they’re also welcome news to the growing number of

Canadians who are building their own success in their

own way.

STABILITY IN THE CANADIAN MORTGAGE MARKET

2011-05-11T21:37:00.000-07:00

May 2011 Significant Statistics-Report Completed by the Canadian Association of Accredited Mortgage Professionals (CAAMP)
There is currently $855 billion in mortgages on principal residences and $215 billion in Home Equity Lines of Credit (HELOC)
 Individuals with HELOCs only have an average 65 per cent equity in their homes
 HELOC prevalence is highest among middle age homeowners
 Equity takeouts amount to $26 billion annually, with most funds used for renovations ($9.4 billion), followed by investments ($5.0 billion)
 The average down payment for a home purchased in the last 12 months was 30%, up from 26% for homes purchased two years ago
 Among all borrowers, 63 per cent have fixed rate mortgages, 30 per cent have variable rate mortgages and 6 per cent have a combination of both
 Less than a quarter (22 per cent) of all borrowers have amortization periods longer than 25 years
 34 per cent of those who most recently renewed or renegotiated their mortgages did so before their term expired. The average time to pay off a mortgage is 7.4 years less than the original amortization
 200,000 homeowners paid off their mortgages in the last 12 months
 The average mortgage interest rate discount is 1.44 per cent for those who chose a five year fixed rate mortgage in the last twelve months with the average mortgage rate being 4.04%
 Of those who renewed their mortgages in the last twelve months, 65 per cent are paying lower rates than previously
 66 per cent of all mortgage borrowers can tolerate a monthly mortgage increase of $300 or more
 Among borrowers who took out a new mortgage in the last 12 months, 27% obtained it from a mortgage broker. Overall mortgage broker share stands at 23%
 Canadian appetite for home buying has returned to pre-recession levels, following a slide over the past three surveys. Almost 60 per cent respondents thought that now was a good time to buy
 Optimism is returning to the market with almost half (46 per cent) of those questioned saying that they expect prices to rise

For Sale

2011-05-10T21:11:00.000-07:00

Commercial Building for Sale in Rimbey. Asking $225000. For video presentation visit www.rimbeyrealestate.ca.
Business is negotiable but not necessary. Rental income from apartments and Purolator. Additional large storage area as well in basement. Showroom measures just over 3000 sq ft.

New Low Rate

2011-05-10T14:09:00.000-07:00

Our best 5 year fixed rate is now only 3.99%.

My best variable is still available at 2.25%.

Possible Costs When Selling or Buying a Home

2011-05-10T14:06:00.000-07:00

Home inspection -- A house inspection or property inspection can cost in the $350-500 range for most single-family homes. Home inspections are recommended to identify if there are any other potentially costly expenses – issues not visible to the naked eye – that may impact the costs and upkeep of the home.

Property survey A land surveyor carrries this out. They measure the property and hopefully obtains a stamp of compliance from the municipality in which the home is located. With a RPR or Survey, the buyer will precisely know the boundaries. Sellers if one is not in place will in most cases pay for this. It is a requirement when selling a home and if one is not in place then some sellers will provide and pay for title insurance.

Water testing -- for properties not on a municipal water system, most - if not all - financing institutions require the water source to be tested to ensure it meets standards for human consumption. If I am representing a buyer and helping them purchase an acreage I will pay for the water testing. The water test is often a "condition" on the Offer to Purchase.

Status certificate fee -- When making an offer to purchase a condominium, it’s a good idea to ensure an offer is conditional upon obtaining and having time to review an Status certificate. This fee (not applicable in Quebec) applies when buying a condominium or strata unit and could cost up to $100.

Land transfer tax- Alberta has no land transfer tax.

Legal Fees -- Legal costs will depend on the complexity of the transaction and the lawyer’s experience.

Prepaid property tax or utility bills- Buyers should be prepared to reimburse the seller for prepaid property taxes and utility bills if say they were taking possession mid year or month depending on the circumstances.

Average Price Per Province for the Month of March 2010 & 2011

2011-05-04T18:07:00.001-07:00

Mar 2010 to March 2011 Average Prices for Various Cities

2011-05-04T14:58:00.000-07:00

2011-05-01T17:48:00.000-07:00

Mortgage Intelligence in the News

2011-04-28T20:42:00.000-07:00

The Toronto Star

Thursday, April 28, 2011

Variable-rate mortgages can save a lot

Long-term savings entice, but consider your risk-tolerance

Leanna Mamatis and her husband Rick knew exactly what they were after when they sold their home in North York and bought a new one in Markham.

They wanted more space, but not too much, and a swimming pool in the back yard.

Mamatis also knew what she was looking for on the mortgage. Even though interest rates are poised to increase, the couple decided to go with a variable-rate mortgage for a three-year term.

"It's lower than the fixed rate," Mamatis said. "I'm not a financial expert, but it seems to me that interest rates are not going to go up too fast too soon. I just wanted to make the payments as minimal as possible in terms of the interest."

With other pressing expenses, such as tuition and fees and lessons in music, karate, hockey and baseball for their four teenagers, making extra mortgage payments is not a priority right now, Mamatis added. "But if we can put a chunk of money down on the principal, then we will."

Research shows that homeowners who take a variable-rate mortgage can save much more over the life of a mortgage than those who stick with a fixed rate.

But even those experts caution that variable mortgages, which go up and down with the prime rate, aren't necessarily right for everyone. What looks best on paper may not be what fits your life.

If you opt for a fixed rate, you know that your payments will not change over the mortgage term. You'll pay a higher interest rate in exchange for that peace of mind.

A quick glance at RateSupermarket.ca shows the great divide between fixed and variable.

For a $200,000 mortgage at a five-year fixed rate of 5.69 per cent, you'll have a monthly payment of $1,243. Over the 25-year life of the mortgage, you'll pay a total of $372,898, of which $172,898 is interest.

On a variable rate of 2.85 per cent, your payments on a similar mortgage are just $931 per month. You'll pay total interest of $79,350 over the life of the mortgage.

Of course, that assumes your variable rate stays the same, and that's an assumption you just can't make.

That's why homebuyers must give a lot of thought to their tolerance of risk and the state of their personal finances when they decide on a rate and a term. Ask yourself: if you choose a variable rate and rates go up, will you be able to afford the higher monthly payments?

In 2001, Moshe Milevsky, a finance professor at York University, released a detailed statistical study showing that variable-rate mortgages saved borrowers money 88.6 per cent of the time over fixed rates.

An update in 2008 also came down on the side of variable rates.

"That study has to be taken with caution. It is a probability argument," Milevsky said.

"It's a lot like buying stocks and bonds. While overwhelming research shows that stocks outperform bonds most of the time, there will be prolonged periods of time when bonds do better.

"That's why we always tell people with investments, if you can't take the chance of losing money and you don't have the risk appetite, don't put all your money in stocks."

The Bank of Canada, which kept interest rates at historic low levels to support the economy through the recession, is expected to begin raising rates later this year.

Mortgage broker Jeff Mayer of Mortgage Intelligence has clients with variable mortgages asking if they should lock in before rates rise.

"I tell them you have to look at the trends and the past history. The rates will go up in time, but the Bank of Canada usually only changes rates by 25 basis points (one-quarter of a percentage point) at a time," he said.

The difference between a variable and fixed rate right now is one percentage point or, in some cases, even more.

Broker Paula Roberts urges clients to think about the term of the mortgage.

"Most people automatically go to the five-year term. Sometimes they don't even realize they have other options," said Roberts, a broker with Mortgage Intelligence.

"People need to think about their plans for the next three to five years. If you know you're going to be moving or having kids, you can take a shorter term. If you want the certainty of the fixed rate, you can choose a longer one."

She also suggests that borrowers with a variable rate set their monthly payments at a higher amount, closer to the fixed rate. The excess will go directly to the mortgage principal and if your rates go up and you lock in, there won't be any payment shock.

"Start with your own financial goals and work backwards from there," said Colette Delaney, senior vice-president at CIBC Mortgages, Lending and Insurance.

"Interest rates can change, but so can things in your life, particularly for younger people. You may be changing jobs and moving away or starting a family in the next couple of years," Delaney said.

For instance, you probably have other financial goals, such as saving for retirement or your children's education.

"Just because you take out a mortgage doesn't mean you forget about all your other goals or saving a little bit each month. If rates move up, are you still going to be able to put money away in that RESP or take a holiday?

"It's not just about looking at the interest rates today and choosing the lowest one; it's about looking at the years to come and having a mortgage that will allow you to adapt."

Newest Testimonial

2011-04-28T18:40:00.001-07:00

Dawna Providenti is a very accomodating agent. Her pleasing personality knowledge and business expertise is impressive. She is very considerate realtor and aware of all circumstances pertaining to making a sale. Her consistency and follow up was much appreciated.
Winston & Arlene Edwards

Bert Bruinsma, RHI Home Inspector Homealyze

2011-04-28T18:29:00.000-07:00

What does your inspection cover?

It is designed to produce a report that includes a visual assessment of the house as a system including the foundation, structure, exterior, heating system, ventilation, plumbing, electrical system, interior, insulation, roof and other components that are found in homes.

How long have you been practicing in the home inspection profession and how many inspections have you completed?

I have been inspecting homes for many years. I purchased my Home-Alyze franchise in 2001 and chose Home-Alyze because they have been inspecting homes since 1978, and have an excellent reporting system. I personally have inspected more than 3000 homes in the past 10 years.

How long will the inspection take?

An inspection typically takes about 3 hours, but it could be longer depending on the age, size and features of the house.

Will I be able to attend the inspection?

You can and should plan to be present for the inspection and feel free to ask any questions that may come to mind along the way. We enjoy our work and love to share what we know.

Also, be sure to allow time for your inspector go through the inspection report with you at the conclusion of the inspection. This provides another opportunity for you to ask questions and to clarify any concerns, adding significant value to the inspection process for you.

Do you maintain membership in a professional home inspector association? If not is your industry going to become a licensed industry where home inspectors must maintain it with education requirements?

I have the following professional credentials, all of which require annual proof of continuing education:

Registered Home inspector (RHI) with the Canadian Association of Home and Properly Inspections. (CAHPI)
Certified Inspector with the American society of Home Inspectors (ASHI)
National accreditation through National Certification Authority. (NCA)

In Alberta, there is currently no licensing for home inspectors. So anyone can become a home inspector. It is therefore important to ask about credentials when you are hiring a home inspector. Also, your realtor may be able to help you with the names of home inspectors they have worked with in the past.

What kinds of qualifications should someone be looking for in a home inspector

Your home inspector should have several years of construction and/or technical experience. At Home-Alyze, we view a home as a system with many components in it that need to work together. We attend regular technical meetings and/or courses through Association Membership.

Why Get A Home Inspection?

A home is one of the most important investments we all make, and home inspections help us to maintain and protect that investment while at the same time ensuring that the home environment is safe and secure.

Should a Home Inspection be performed on a newly constructed house?

Inspection of a new home (while the new home warranty is still available) can sometimes help to identify things that still need to be completed that the homeowner might miss. It is more important to use a professional Home Inspector just before your “primary” warranty period expires so you can notify both the Warranty Company and the Builder of apparent deficiencies that may still be covered by the warranty.

What are some common things found wrong with a property?

Every house is unique, but the following are often found during the inspection process:

Leaks (roof, flashings, basements, plumbing).
Unprofessional electrical work
Cracked heat exchangers
Deficiencies around ceramic tile that lead to mould and rot behind the walls.

How can such things be prevented?

As part of the inspection process, we provide our customers with a schedule for when maintenance and repairs need to be done. Doing these things before problems occur and on a regular basis where necessary will help to prevent unexpected costs as well as promote efficiency and safety. Also as part of our service to our clients, and since we have a file on their house, they’re free to call us with questions anytime as long as they own the house. Without re-inspecting the home, we will answer questions for them, even if they are developing the basement or adding an addition.

Any words of advice for sellers so that a property inspection goes smoothly?

Consider a ‘pre-listing’ inspection’ of your home. It has many benefits and can often give you better leverage on the price of your home. It will give you a good idea of what the purchaser may find, avoiding surprises and allowing you to make any necessary repairs before listing your home. Sellers are provided with signs to let potential buyers know that their home has been pre-inspected.

When a buyer chooses to have a home inspection, the seller can make the process smoother by ensuring that:

There is no clutter, boxes, clothing, etc. on the floor impeding access to areas that need to be inspected.
There is access to all areas of the home and garage.
Any hazards such as loose wiring, wet floors, etc. are eliminated or if that is not possible, that the inspector is aware of the hazard prior to the inspection
The inspector is aware if you have pets that are free in the house and not allowed outside.
There is clear access to the attic access panels. If the attic panel is in a closet, remove any stored items that may impede access.
All electrical panels are unobstructed and easily accessible.
All utilities are turned on (water, gas, electrical) if the property is vacant, so that those systems can be properly inspected.
The inspector is aware of any special considerations or concerns that require extra care during the inspection process.

Any words of advice for a buyer so that a property inspection goes smoothly?

The more you know – The easier and better the process will be for you:

Gather as much information as possible about the process of buying a home and about the home you are considering.
Attend seminars and ask questions if this is the purchase of your first home.
Make the sale conditional, subject to a Home Inspection.
Hire an experienced and qualified home inspection expert.
Plan to attend the inspection if at all possible, and be sure to have plenty of time to review the inspection report and to ask questions after it has been completed.

Mortgage renewing? Let me negotiate on your behalf

2011-04-28T18:26:00.000-07:00

When renewing your mortgage, you are most likely in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage that is optimal for our needs and goals. At renewal time, I can offer expert advice on a customized mortgage strategy to ensure you are taking full advantage of the many mortgage options on the market in

Canada

. I will also negotiate with lenders on your behalf to make certain that you get an extremely competitive interest rate.

For those who are thinking of switching their current mortgage to another lender to get a better interest rate, most lenders now offer "no cost or low cost switches." This can be a smart way to reduce your interest costs. As a mortgage broker I can take care of all the details.

Whether it’s time to renew your mortgage, or you’re wanting to switch lenders, get me working for you today.

Smart spending strategies

2011-04-28T18:23:00.000-07:00

These days, many of us know we should be more careful with our money. However, being cash conscious doesn't mean you have to feel like you're on a tight budget.

There are some simple strategies to manage your spending, to help you reach your financial goals sooner.

Follow the money: Have a plan detailing your financial commitments and outlining your long-term goals. Knowing exactly where your money is going month by month is a key step to saving for the long term.

The 10% approach: Almost everyone can afford to take ten per cent of their regular earnings to put aside in a savings account. Take the money out just after you are paid and you won't even notice it's gone. This beats keeping an excess amount on hand, as it removes the temptation to buy non-essential items.

A weekly allowance: Consider giving yourself a weekly allowance ensuring you have enough to buy groceries, with some extra for incidental spending and other expenses.

Up your mortgage payments: Try increasing the contribution you make to your mortgage each month. The more cash you put toward your home, the faster you'll be able to pay off your mortgage or access home equity for other projects or investments.

Keep high-interest debt in check: With high interest rates on most credit cards, it’s essential not to run up your credit card balance. For larger purchases, use savings from your salary/income, or consider accessing your home’s equity.

Source:Mortgage Intelligence

Testimonial

2011-04-07T10:15:00.000-07:00

My most recent clients asked me to help them sell their home. They were looking to downsize from their farm. I was fortunate to be able to work with clients who followed my advise in terms of pricing and getting their property ready for sale. I am proud to say that their house sold and that they are now enjoying a new lease on life in a brand new home.

Dawna Providenti is a very accomodating agent. Her pleasing personality knowledge and business expertise is impressive. She is very considerate realtor and aware of all circumstances pertaining to making a sale. Her consistency and follow up was much appreciated.
Winston & Arlene Edwards

Thinking of Refinancing or Switching Mortgage Lender

2011-04-02T15:11:00.000-07:00

Now more than ever is a great time to look at other options for your mortgage needs. Some lenders are willing to pay for appraisal and legal fees because they want your business.

Bonus Air Miles

2011-04-02T14:41:00.000-07:00

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Bonus Air Miles

2011-04-02T14:33:00.001-07:00

To print off your coupon visit: http://lnkd.in/ekkSrt

Prepayign now means mortgage-free sooner

2011-04-02T14:32:00.001-07:00

Current Mortgage Rates

2011-04-02T14:19:00.000-07:00

The NOWiCAN Consumer Contest featuring a $25,000 giveaway.

2011-04-02T14:05:00.000-07:00

http://nowican.ca/?id=41000289

Get a great mortgage with me and be entered into winning $25000. Contest ends December 31, 2011.

How much home can you afford?

2011-04-02T13:44:00.000-07:00

How much home can you afford? Buyers with good incomes and excellent credit ratings may be able to access "free downpayment mortgages" that will give the purchaser five percent of the purchase price for the mortgage on closing.

Riding the wave of variable-rate mortgages

2011-04-02T13:40:00.000-07:00

Riding the wave of variable-rate mortgages

Brokering the best mortgage deal

2011-04-02T13:38:00.000-07:00

Brokering the best mortgage deal

March 18 New Mortgage Rules

2011-03-15T17:50:00.000-07:00

What are the new mortgage loan insurance requirements?

Effective March 18, 2011:

Reduce the maximum amortization period from 35 to 30 years for new insured mortgages with loan-to-value ratios of more than 80 per cent.
Lower the maximum amount Canadians can borrow when refinancing a 1 – 4 unit owner-occupied property from 90 to 85 per cent of the value of their homes.

Effective April 18, 2011:

Mortgage loan insurance will no longer be available for non-amortizing secured home equity lines of credit, or HELOC.

I already have an insured mortgage. How will these changes affect me?
CMHC mortgage insurance is good for the life of the mortgage. Borrowers renewing an insured mortgage will not be affected by these changes. For example, if a borrower had a 40 year amortization and there are 37 years remaining on the mortgage, the mortgage can be renewed with a 37 year amortization, as long as no new funds are being added to the mortgage.
What is required to qualify for an exception to the new parameters?

If the approved lender has documentation of a binding purchase and sale, financing or refinancing agreement and that agreement was dated before March 18, 2011, CMHC will not apply the new parameters, even if the application for insurance is received by CMHC on or after March 18, 2011.
Will a purchase and sale agreement dated prior to March 18, 2011 be considered binding if there are outstanding conditions that have not been fulfilled prior to March 18?

Yes, if the date on the purchase and sale agreement is earlier than March 18, the new parameters will not apply, even if the conditions of the agreement have not been waived.

Will the new refinancing rules allow a borrower with a mortgage above 85 per cent loan-to-value (LTV) to refinance by extending the amortization period?
No. Effective March 18, 2011, borrowers will not be permitted to refinance a mortgage above an 85% loan-to-value, unless the borrower has a binding refinance agreement dated prior to March 18, 2011.

I have a written mortgage pre-approval from a lender, dated before March 18, 2011 with a 35 year amortization. Will I still be eligible for a 35 year amortization if I don’t sign an agreement of purchase and sale until March 18 or later?
No, a mortgage pre-approval is not considered to be a “binding agreement”. You may have a 35 year amortization only if your agreement of purchase and sale is dated before March 18, 2011.

Will the new parameters apply to assignment (“switch” or transfer) of a previously-insured loan from one approved lender to another?
No. As long as the loan amount and amortization period are not increased, the new parameters will not apply to a switch/transfer/assignment of mortgage to a different approved lender.

If I sell my current home and buy another, will the new parameters apply if I transfer the outstanding balance of my CMHC-insured mortgage to the new home?
As long as the outstanding balance of the insured loan, the loan-to-value ratio and the remainder of the amortization period are not increased, the new parameters will not apply when the CMHC mortgage insurance is transferred from one home to another.

What if I need to increase the amount of my insured loan when I sell my current home and buy another?
In this situation the new parameters will apply for any insured loan.
Is it only new Home Equity Lines of Credit (HELOCs) that are affected by the new parameters or existing HELOCs as well?

As of April 18, 2011, CMHC will no longer offer mortgage loan insurance on non-amortizing lines of credit to approved lenders, such as HELOCs. However, if a HELOC is already CMHC insured then it remains insured for the life of the mortgage.

HELOCs will no longer be insurable as of April 18, 2011. Is there any situation which would quality for an exception (e.g. binding agreement) to allow for these loans to be insured?

No. As of April 18, 2011, non-amortizing lines of credit will not be eligible for mortgage loan insurance. Lenders can continue to offer non-amortizing HELOCs with a loan-to-value ratio up to 80 per cent on an uninsured basis.

http://www.cmhc-schl.gc.ca/en/corp/faq/faq_008.cfm

2011-03-10T12:53:00.000-08:00

When I meet potential clients who are inquiring about selling their homes, I always ask them about their current mortgage and whether or not it is a fixed or variable rate. Most often they are locked into a fixed rate mortgage. I always ask them to call their current lender to see how much the balance owing is and what the penalty is to discharge the mortgage.

Many are surprised when they are told that the penalty is thousands, not hundreds. Many consumers assume that the penalty is 3 months worth of interest when in fact it is 3 months interest or the Interest Rate Differential, whichever is greater. Most often unless you are near the end of the your term on your fixed rate mortgage it will be the IRD. The chart illustrates the potential costs in discharging your fixed rate mortgage early.

Current Mortgage Balance                    $300000
Original Interest Rate                                  5.5%
Current Interest Rate                               3.99%
Remaining Term on Mortgage
(in months)                                                30
3 Months Interest Penalty                           4125
Interest Rate Differential                         $11325

What this could mean when it comes time to selling.

Market Value                                      $350000
Sold Price                                             340000
Penalty and Balance Owing                   311325
Misc Costs such as Realtor Fees,
Title Insurance, Property Taxes              160000
Balance                                                 $12675

Part of my duties and responsibilities as a realtor and mortgage broker is helping my clients make informed decisions on the costs involved in selling their home.

A Mortgage Pre-Approval – A Smart First Step When Looking for a Home

2011-03-05T14:45:00.000-08:00

Getting a pre-approval for mortgage financing before you start to look for a home is a smart move.

A pre-approval assures you of a locked-in mortgage rate for a set period – so there is no risk of any interest rate increases while you are house hunting. The great news for those who turn to a mortgage broker is that a broker may be able to obtain a longer pre-approval rate hold. Also, with a pre-approval, you’ll get a clear-cut sense of how much you are eligible to borrow.

Keep in mind that the property you intend to purchase – along with your supporting information (such as income, down payment and employment history) – has to meet the financial institution's criteria to be approved for lending. Also, a pre-approval is not a guarantee of financing, and does not eliminate the need to make a conditional offer.

If you are planning on looking for a home this spring, call a Mortgage Intelligence broker today to get pre-approved. He or she can get you an extremely competitive interest rate and length of rate hold – you’ll soon be on track to finding the home that’s ideal for you and your family.

Ways to Improve Your Credit Score

2011-03-04T10:29:00.000-08:00

If you're in the market for a mortgage, a car loan, or looking to rent an apartment, it may be time to check your credit score.
A credit score is an ever changing three-digit number between 300 and 900. The higher your number, the more likely you are to be approved for a loan or to negotiate a preferred interest rate. If your credit score is low, you may pay higher rates or be denied credit based on the lender's criteria.
Your credit score is an important piece of financial information. It's used by lenders, insurers, and landlords to gauge your credit behaviour and determine if you're a good candidate for credit. If you've lost out on an apartment or been denied a loan recently, it may be your credit score that's holding you back.
But don't worry if your score is low, there are ways to improve it. Since your credit score is recalculated continuously to reflect your recent bill payments and debt levels, your score from a month ago is probably not the same score today. Here are seven ways to raise your credit score:
1. Check your credit score at BOTH credit reporting agencies. Your credit score can vary between Canada's two major credit reporting agencies, Equifax and TransUnion. Each agency uses different credit data as well as a slightly different credit scoring model to tally your number. If you're being denied credit, it may be that one agency is reporting differently. Checking your credit report and score at both agencies can also help you detect any fraudulent activity or possible instances of identity theft.
2. Report and correct any inaccuracies. Don't let your credit score suffer due to inaccurate information on your file. Be proactive and protect yourself by reviewing your credit files. If you find an inaccuracy, contact the creditor or the credit reporting agency to correct it immediately.
3. Pay all your bills on time. Lenders look for patterns and love to see a solid history of paying every bill on time. Any late credit card payments, collections, or bankruptcies can significantly lower your credit score -- so be punctual with each bill payment to raise your score.
4. Watch your debt. Don't run your credit balances close to your limit! Staying below half your available credit limit can help to improve your score sooner. For example, if you have a credit card with a $5,000 limit, try to keep the balance owed below $2,500.
5. Avoid applying for credit. When you apply for credit, a "hard query" may be made to your report by the lender to check your creditworthiness. Too many "hard queries" in a short period of time can lower your score, so stick to applying for credit only when you need it. Checking your own score won't lower your score since this is a "soft query". Applying for a lot of credit may be interpreted as a sign of financial difficulty, which can impact your score as well.
6. Give yourself some time. Time can improve your credit score, especially if you can establish a long history of paying bills on time and being responsible with credit. Negative factors such as bankruptcies, collections, or foreclosures drop off your report after a number of years, depending on your home province or territory.
7. Don't close old accounts. It may seem counterintuitive to us, but unused credit is a good thing in the eyes of a credit reporting agency and lowering the amount of money you can borrow relative to your debt can impact your score

2011-03-04T10:19:00.001-08:00

2011-03-04T10:15:00.001-08:00

Bank of Canada Keeps Rate Steady

2011-03-04T09:34:00.000-08:00

Bank of Canada Keeps Rate Steady

The Bank of Canada announced this morning that it is holding its key policy rate steady, the fourth time in a row that it has kept the rate unchanged. This comes despite news yesterday that the Canadian economy expanded by 3.3 percent in the last three months of 2010, a full point more than the Bank of Canada had predicted and ahead of the pace in the US.

In its statement the Bank indicated the economic recovery in Canada is proceeding “slightly faster than expected, and there is more evidence of the anticipated rebalancing of demand.”

The prime rate at most lenders will stay at 3.00%, which means those with variable-rate mortgages will still enjoy relatively low rates. A new variable-rate mortgage can often be obtained by qualified borrowers at Prime minus 0.70%, or 2.30%. Home equity lines of credit and variable-rate credit cards are also commonly linked to the prime rate.

Newcomer to Canada?

2011-02-06T14:19:00.000-08:00

Newcomers to Canada play an increasing role in Canada’s future
population growth, creating new market opportunities. Insured financing is available to borrowers with permanent and
non-permanent residence status, helping newcomers realize
their dream of home ownership in Canada.

Cashback Mortgage

2011-02-06T14:08:00.000-08:00

Did You Know!!

You can get as much as 8% in a cashback with a 10 year term!!
Yes its still true! You can do a 90% refinance and then use our 8% cashback to essentially get a 98% LTV refinance. This is the last chance before the new Bank of Canada rules take effect changing the max refinance to 85%. Once this change takes place 93% LTV will be the new max LTV using the cashback program. (85%+8% cashback) This is available as well as our 5.5% cashback.

Seven Emerging Mortgage Trends

2011-01-27T17:31:00.000-08:00

1. Canadians will have a wider range of options when selecting a mortgage. With increased competition brokers with the cooperation of the lenders will be able to provide more user friendly options, competitive rates and product offerings

2.An increase in self serve options such as telephone, online applications. Canadians no longer need to go into the local banks to apply for a mortgage.

3. Mortgage Brokers will evolve from "Rate Shoppers" to "Advisors" Canadians are so well educated on current rates that they don't need a mortgage broker to tell them the current rates but rather advise them on what is in their best interest.

4. Major banks will continue to compete for broker business but in order to compete they will be increasing their mobile mortgage specialists. In the past this was one of the biggest advantages a mortgage broker had over the banks. What that means for a mortgage broker is that they are going to have to "step up" to the challenge of providing better service, convenenience and better products.

5. Investments in technology will speed up convenience in obtaining a mortgage. Turnaround times will be hours not days.

6. The Mortgage Broker industry will see a consolidation so that there will only be a few major mortgage companies in Canada. These "Super Brokers" will increase and find technological improvements, higher training standards, greated negotiating power,

7. Lenders will offer more specialized products aimed at consumers who previously had very few options such as "New To Canada Immigrants", "Self Employed" and Individuals with bad credit.

Tired of Making Home Improvements?

2011-01-27T17:30:00.000-08:00

There is a simple process for those who have made the decision to build a new home.

Sometimes after careful decision making you realize that instead of buying an older home in need of renovations you decide to build a custom home for yourself.

You must get preapproved. As your mortgage broker makes this process easy and convenient.

You will need 5% downpayment which can be from a persons own resources such as savings and RSP's. In some cases a gifted downpayment is acceptable as well. Ultimately the more money you have to put towards a downpayment will help me help you in getting a better rate.

Signed and accepted copy of building contract, builders construction specifications (blueprints) of the house to be built, plan showing legal description, dimensions of property, proposed location

The proposed house is built in stages. Your mortgage is advanced in stages much like a purchase plus improvements mortgage which I discussed in an earlier blog.

The first-when the basement is ready to backfill
The second-when the interior is ready for drywall
The third-when the drywall is installed and taped
The forth is when the house is competed

An inspection is completed prior to funds being advanced

The mortgage insurers will pay for 4 of the inspections but anymore than that the borrower is responsible

Eligibe Builders/Contractors

1.    The individuals own the land & contract a builder to rebuild the home
2.    Self Built Homes where the borrower builds the home & subcontracts out some of the work     but ultimately will occupy the home. The client must be a registered trades person.
3.    Builder owns the land and once the purchase contract is signed and money is advanced to begin building a new home.

Lenders prefer a builder that provides New Home Warranty but in some situations exceptions are made.
For further information any potential home buyer should visit http://anhwp.com/

First Time Buyers

2011-01-14T17:57:00.001-08:00

CHIP Home Equity

2011-01-14T17:36:00.000-08:00

Happy New Year!

Did you know?
That the first Baby Boomer to turn 60 occurred on January 1, 2006
For the next 10 years 1763 Canadians turn 60 everyday
The first Baby Boomer to turn 65 just happened on January 1 2011
There are 267, 952 baby boomers aged 45 to 64
In Canada 9 million people were born between 1946 and 1965
Between 2011 and 2021 the nunber of Albertans aged 65 or older will increase from 11-15%
By 2031, 1 in 5 Albertans will be 65

A CHIP Home Income Plan is a tax free source of money to:
Eliminate Debt
Enhance your retirement
Gifts
Travel
Upgrade your Current Home

As long as you own your home, regardless of income you can qualify for up to 40% of the equity in your home. You do not have to make any payments until you sell or move.

Income producing properties do not qualify and the property must have its own water supply. No shared water wells are excluded. The older the applicant, the more they qualify for.

An appraisal is completed
The applicant must fill out an application
I pull a credit bureau
I collect a copy of the property taxes from the town/city office
If the applicant is a widower, and both spouses are still on title, then a copy of the death certificate or letter from funeral home is sufficient. When the funding is completed, the lawyer will change the status of the title

I have successfully completed many of these types of applications. I think it is a great tool for any senior living on a pension. You can pick from a fixed rate or variable rate interest plan. It is set up much like a mortgage but with fewer payments if you choose.

http://www.mortgagebrokerdawna.com/ http://www.dawnaprovidenti.com/ http://www.wehaveamortgageforthat.ca/

Purchase Plus Improvements

2010-11-09T13:39:00.000-08:00

PURCHASE PLUS IMPROVETMENTS

The market is right for buyers as it is still a buyers market. Interest rates are at their all time low and there is an abundance of homes to choose from. When you are out searching for that perfect home you may find one you love because of the neighbourhood but it needs a lot of work..

wwww.wehaveamortgageforthat.com! Its called Purchase Plus Improvements.

In essence what this mortgage allows you to do is buy that very affordable fixer upper home and finance the renovations needed for upgrades.

You are expected to get 3 quotes for each planned improvement.

At each stage of construction an inspection is completed at which time funds are released.

Lenders are looking for significant material upgrades like renovating a kitchen or bathroom, new flooring or plumbing.

There are 2 mortgage insurers for this program and below is a comparison of their guidelines.

As a potential borrower keep in mind or be prepared in having some savings or have access to a Line of Credit for those unexpected costs such as deposits, extra inspections, renovations that are over and above what was originally planned, higher solicitor fees because of disbursements.

2010-11-03T20:29:00.000-07:00

STATED INCOME MORTGAGES At Mortgage Intelligence we help our clients in achieving homeownership especially for those self employed. The “Stated Income” mortgages are for those self employed persons who are sole proprietors or corporations who write off a lot of their income for tax purposes so that ultimately when they file their person income taxes it shows very little income. A Notice of Assessment or (NOA) for short is mailed to you from the Canada Revenue Agency once you have filed your personal income taxes. (the blue forms). This can also be recognized as the forms that determine whether or not you owe income taxes or if you are receiving a refund. Lenders use the amount on line 150 to determine a person’s yearly income. I have a mortgage for that! There are three mortgage insurers in Canada. Their guidelines are somewhat similar but with a couple of differences. 1. Genworth and Canada Guaranty (CG) will allow a person who has been self employed for longer than 3 years to use the stated income program whereas CMHC will not allow self employed people to do a stated income if they have been in business for longer than 3 years. In other words after 3 years CMHC wants the person in business to be showing an income. 2. Genworth and CG have a higher min credit score than CMHC. 3. Genworth unlike the other 2 insurers will allow half of the 10% downpayment required on a purchase to be gifted from an immediate family member. Special Considerations: Lenders will require more documentation such as business fianancials (accountant prepared), articles of incorporation (if incorporated), up to 12 months of business bank statements. There are some additional forms to be signed by the applicant but overall I try to do as much as possible to make the application process easy.
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Mortgage Intelligence in the News

2010-11-02T13:30:00.000-07:00

Calgary Herald

Thursday, October 28, 2010

More Canadians seek mortgage broker's help

The percentage of Canadians using mortgage brokers to buy their homes has increased significantly this decade.

The Deloitte report, Winning Strategies in the Brokered Mortgage Marketplace, released Wednesday, said that in the 1990s mortgage brokers numbered in the hundreds and were a last resort for borrowers unable to obtain a mortgage directly from a bank or credit union.

"Over the last decade, an increasing number of viable options for borrowers have surfaced," said the report. "In addition to branch-based lenders, borrowers can now consult with the banks' own mobile mortgage specialists as well as independent brokers -- while also conducting their own research online.

"In this changing and information-abundant environment, the mortgage brokerage channel has emerged as a legitimate competitor."

The report said the share of transactions increased from 26 per cent in 2003 to 38 per cent in 2009 as mortgage brokers made inroads, particularly with first-time homebuyers and young Canadians.

"Overall, this channel has evolved from a fragmented 'lender of last resort' network to a legitimate option for prime customers."

Years ago, mortgage brokers were the best-kept secret out there, said Karen Blomquist, a mortgage associate with Mortgage Intelligence in Calgary.

"I think the perception was that we only work with people with really (bad) credit and the perception was also that it cost them money to work with us, because why on earth would we do all this work for nothing? I think there's been a real trend change there. I think people are becoming smarter in terms of what a mortgage broker is and the services we're able to offer consumers, as opposed to just going to the big banks and settling for what it is they're being sold," said Blomquist.

"In my circle, I think a lot more people are calling mortgage brokers now to at least get a quote or at least dip their toe in the water."

Blomquist said young people and first-time homebuyers also use Twitter, Facebook and other social media to find things out and do more research than the older buyer.

"They realize the value in getting a broker who's going to look around and get you the best rate. So perhaps they're more savvy than we think they are," she said. "I would say those people are a big percentage of who uses us because they're on the Internet checking everything out."

Jim Murphy, president and CEO of the Canadian Association of Accredited Mortgage Professionals, said the organization will be releasing its annual report in early November.

"Mortgage broker share overall is about 25 per cent of the market," said Murphy.

"It's higher for first-time buyers. First-time buyers are more likely to use a mortgage broker than those who renew their mortgage.

"(Brokers) have access to different lenders, including banks and credit unions, and they really work on behalf of the customer."