Newcomer to Canada?

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

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

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?

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

CHIP Home Equity

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

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.

          

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

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."