Should you lock in your Variable?
There’s a lot to know when it comes to mortgages. At Regional Mortgage Group, we want you feel confident and make informed decisions regarding your finances. With that in mind, we’ve written articles to help you become educated about credit, equity and mortgages. We encourage you to browse our blog posts, or you can always give us a call to schedule a consultation.
Should you lock in your Variable?
The mortgage process can be confusing to say the least. Most of the time our attention is focused on the rate and terms but there are many pieces to the mortgage, and the types of insurance are something that deserve a minute of your time.
As a mortgage professional it is my responsibility to keep abreast of things which may adversely affect my clients. I have seen, since the last round of governmental rule changes, a couple of trends which may herald a widespread change to the Canadian mortgage marketplace.
The level of documentation that is required for the average mortgage these days can be very frustrating. It can seem endless and very nitpicky and annoying because we are able to purchase a vehicle with just a paystub. However, there are a few valid reasons for the increased documentation requirements.
It is a well-known fact that when you purchase a home you will have to provide a down payment. But what we also need to be aware of are the closing costs. What are closing costs, you ask? Let’s take a closer look.
This week, our municipality sent out the 2018 Property Tax Assessment Notice, which makes it the perfect time for a deeper dive into property taxes. The timelines may be slightly different depending upon your municipality, but the balance of the info will apply no matter where you live.
Getting a mortgage can be one of the most stressful things you will go through. Think about it for a moment. A mortgage is a loan that you take out to purchase the home you will live in and create memories for yourself and your loved ones for as long as you live there. Add to this the fact that the government seems to be making changes on a regular basis that may affect you. Also add the fact that not all mortgages are created equal and you want to make sure you are accepting the best one with the best possible rate for you. It’s no wonder that the whole thing can seem exhausting. This week, let’s take a look at what you can do to lessen your stress.
It is nearly impossible to know what will happen to the mortgage universe in 2018, but there are a couple of things we are hearing from the experts. These are particularly important if your mortgage is up for renewal this year as they will allow you to make the best decision for your situation.
Well you have likely noticed that it is time for resolutions according to the plethora of fitness equipment and organizational plastic bins on sale in every flyer you open. It seems fitting that we take a 3 step approach to positioning yourself for financial fitness in 2018 and beyond as well.
So the reality is that life happens and we can become unable to meet our obligations. This week and next, we are going to take a closer look at this situation to develop strategies to get you through as painlessly as possible. This week, we will start with those who have mortgage default insurance.
Last week we looked at those of us with mortgage default insurance in place with their mortgage. This week we will look at options for those without. As we said last week life can happen to any of us. Illness, disability, sick children and the list could truly go on indefinitely.
The news and we mortgage professionals have been talking relentlessly about all the changes to the mortgage rules. It has been one after another, and it is no wonder that the average Canadian is feeling a bit bewildered by the whole thing. Instead of talking about what has changed, we thought we should spend a week on what hasn’t:
So if you feel like all you hear about these days are mortgage rule changes then you should know that you are in fact correct. Every year for the past 8 we have seen a major change to the rules. The latest round of mortgage rule changes have been announced so once again we need to take a closer look at how Canadians will be affected.
This time of year we all clean up the yard and make sure our vehicles are ready for winter but perhaps we should also check our overall finances to make sure that they are winter ready too. We know we should keep everything up to date but this seems to get lost in the business of everyday life. Experts suggest that we take one day a year to make sure things are current. Now that the kids are back in school consider scheduling a full day off work with your spouse (if applicable), turn off your phones, grab a pumpkin spiced whatever and get down to work!
As a mortgage professional there are things I wish more people were aware of, which is why we are going to take a look into the paperwork we all need to hold onto to avoid frustration or even a decline when applying for a mortgage. Each of the following is taken from real-life observations of everyday folks just like you and I.
Sometimes it is a good idea to revisit the basics when looking at a complex thing like a mortgage. There can be misunderstandings which crop up. The mortgage process can be very stressful, as you wait for some anonymous entity to decide whether or not you are able to buy the home of your dreams. It is no wonder that things can get missed. Fear not! We will take a look at some of the basics so you can avoid things best avoided.
There have been a dizzying number of changes to the mortgage rules over the last 6 or 7 years. The red-hot markets in Toronto and Vancouver coupled with increased household debt and concerns over the risk to the Canadian tax payer through CMHC have caused the federal government to step in repeatedly.
Canadians are firm believers in homeownership. We see the long term benefits of paying down our own mortgage as compared to landlords. Our homes become our largest assets and often factor into retirement planning. Here are a series of the extra costs you should consider before writing that offer.
Applying for a mortgage can be very stressful to say the least. It seems as though your hopes and dreams are held hostage to rules set by people you don’t know and your paperwork adjudicated by seemingly unreasonable nameless faces. To make matters worse you are hit with a whole bunch of new words which hold all kinds of significance. So let’s get rid of that piece of worry and look at the common words and phrases you will be hit with.
I met with a client recently who wanted to get a pre-approval before he sold his home. His neighbor is a very grouchy man who causes my client and his family a lot of stress. He just wanted to sell his home and move into a new one away from this situation. I had to tell him no and explain that although he has good credit and a very stable job he does not qualify under the new rules. He was saddened to hear that and is now faced with a decision of should he stay and put up with the situation or should he rent out his home and then he himself rent somewhere else.
The best part of writing about mortgages is that I get the chance to educate people about a topic which I find endlessly interesting. Reverse mortgages are certainly a topic which deserves some consideration. Everyone seems to be quite polarized over this issue, so it seems it is past time we took a closer look.
There is so much information about everything these days and quite frankly it is overwhelming to say the least. You want to make the best decision possible when it comes to the loan you are taking for your home but how can you be sure you are choosing the right mortgage professional to help you? Here is a list of questions you should be sure to ask. Even if you are working with your own financial institution, you should take the position of buyer beware.
So you find yourself looking to move for whatever reason. Maybe you and the neighbours have become the Hatfield’s and McCoy’s or maybe your dream home has come available. Whatever the situation, when you find yourself considering a move, I hope you will remember this article and the sage advice it offers and save yourself some money. It is your money after all so you really should keep as much of it as you possibly can.
There have been so many changes to the mortgage universe and the whole thing can be really confusing, so let’s take a look at the some of the core things that mortgage professionals want you to know.
The next installment in the things we wished people knew series is targeted at the self-employed. This intrepid group of risk takers are entrepreneurial and help keep the economy moving, but all too often we meet with these people and have to give news we would rather not give, so let’s look at what we wish they knew.
Life can go sideways and that is a fact. Illness, divorce, death, longest recession in 30 years or whatever the cause is, before you know it you can find yourself with an awful credit rating and are unsure of what to do. These are the things we mortgage professionals wished you knew.
So we are going to do a series over the next few weeks of things the average mortgage professional wished people knew so that they would not be held back by inadvertent missteps. This week we will look at young adults just starting out. Let’s outline 5 things you really need to be aware of to set yourselves up for true financial dominance.
If it seems like it is harder to get a mortgage that is only because it is. Scallywags and scoundrels have committed fraud on a massive scale and so the lenders all have to ask for a pile of paperwork to prevent fraud. The government is looking to make sure that we don’t get in over our heads and so they have implemented changes to all things mortgage. And finally, the whole dang global economy seems unable to get its bearings so everyone has to be even more diligent about everything so that don’t get stuck with a pile of foreclosures.
It seems counter intuitive that a person with 5% down be offered a lower rate than someone with 20% down. Clearly the second person appears to be much financially stronger. Either they have sold an asset like a home or they have saved extra funds or through some other means they have 20% or more to put down. Or maybe this is existing equity already in place after years of mortgage repayments. This savvy consumer goes to apply for a mortgage after having researched the lowest rates only to be told when they get the approval that those very low rates are only for people with less than 20% down. That seems ridiculous really as the person with more skin in the game, so to speak, is less likely to default on their mortgage and lose that substantial equity stake. It is true nonetheless so let’s take a look at why.
We have all heard the horror stories about huge mortgage penalties. Like the time your friend wanted to refinance her home so that she could open a small business only to find out that it was going to cost her a $13,000 penalty to break her mortgage. This should not come as a surprise. It would have been in the initial paperwork from the mortgage lender and seen again at the lawyer’s office. A mortgage is a contract and when it is broken there is a penalty assessed and charged. You will have agreed to this. The institution that lent the money did so with the expectation that they would see a return on that investment so when the contract is broken there is a penalty to protect their interests. If you think about it, there is even a penalty to break a cell phone contract so the provider can recoup the costs they incurred so it stands to follow that of course there would be a penalty on a mortgage.
The mortgage process can seem huge and overwhelming. It can be an emotional process because a mortgage is the loan you are taking to buy a home for yourself and your family which makes it infinitely more than just a loan. Or it may represent the loan you are taking to refinance your home to invest in business dreams or to clean up some debts after life has thrown you sideways.
So the news has been full of information about mortgage over the last few months, and it can be very overwhelming, to say the least. We are going to take a look at the new reality of the mortgage landscape in Canada in an attempt to dispel some of the misconceptions.
(AKA How to Renew Your Mortgage in 5 Easy Steps)
What is a mortgage renewal you ask?
Each mortgage has a set term which can vary from 1-10 years. Just before the end of your term you will receive and offer from your current lender and you have 3 options:
Well you have likely noticed that it is time for resolutions according to the plethora of fitness equipment and organizational plastic bins on sale in every flyer you open. It seems fitting that we take a 3 step approach to positioning yourself for financial fitness in 2017 and beyond as well.
There seems to be some confusion about what it actually means to co-sign on a mortgage and you know that where there is confusion, your trusted mortgage professional seeks to offer clarity. Let’s take a quick look at why you may be asked to co-sign and what you need to know before, during, and after the co-signing process.
Welcome to 2016! We have all had a few weeks to settle in now and get back to reality and as…
Happy New Year! It’s always a little bit hard to believe just how fast the old year actually passes, but here we are again, and before we move forward it is probably a great idea to take a quick look at 2015 to see how it will impact the year ahead. 2015 was the year of change...
What does all that technical mumbo jumbo mean? Here are some common mortgage related terms. Getting a mortgage can be a daunting task. There is so much to know and understand including some pretty…
Congratulations you have made it through one of the toughest financial times in your life. It feels good to have this under control and know there is a light at the end of the tunnel. I too have…
Are you shopping for a mortgage? The 5 questions to ask your mortgage lender outlined below will help make sure that you make an informed decision. Here are some questions you must ask your mortgage lender before getting a loan. Below are 5 questions…
Having a hard time keeping up your monthly mortgage payments? Luckily, there are options which may help you get back on track, including: mortgage refinancing, loan modification and rounding up payments, and making payment arrangements. Below are 4…
Refinancing your mortgage can help obtain better interest terms and rates. In this article we’ll discuss several reasons why you should refinance your mortgage, including: to take advantage of low interest rates, to consolidate debt, and to tap…
Getting a mortgage can be a hard process to navigate. In this short post we’re going to discuss 3 things you must know about mortgages, including: qualifications, down payments, and longer terms. Below are 3 things you must know about mortgages…
Do you plan on selling your home? Then you can increase its value by following these simple home maintenance tips. 1. Beautify your bathroom - of all the rooms in your house, the bathroom is the workhorse. There is lots of wear…
If you are still a newbie in buying a new home then you should be careful of the following mistakes: 1. Not budgeting for your first home loan - homeownership may seem like a wise alternative to renting, but it’s not necessarily…
1. Search bank websites. Banks often list their foreclosed properties for sale online. At Bank of America, for example, about 800 residential listings are posted, including 156 in California…
If you want to get your mortgage loan application be easily approved then make sure to avoid these costly mistakes…
So if you are considering building a home this year you may want to familiarize yourself with the differences between a draw mortgage and a completion mortgage. You will discover…