Are you gearing up to buy your first place, upgrading, or purchasing a vacation or investment property? Shopping for a home is exciting, exhausting, and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Follow these 10 tips before and during your home shopping to help you to avoid any surprises the may delay or put an end to your dreams.
1. Knowing What You Can Afford
As we've all learned from the subprime mortgage mess, what the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. If you don't already have a budget, make a list of all your monthly expenses (excluding rent), including vehicle costs, student loan payments, credit card payments, groceries, health insurance, retirement savings and so on. Don't forget major expenses that only occur once a year, like any insurance premiums you pay annually or annual vacations. Subtract this total from your take-home pay and you'll know how much you can spend on your new home each month.
If you end up looking at homes that are outside your price range, you'll end up lusting after something you can't afford, which can put you in the dangerous position of trying to stretch beyond your means financially or cause you to feel unsatisfied with what you actually can afford. You may even learn that you can't afford the type or size of home that you desire and that you need to work on reducing your monthly expenses and/or increasing your income before you even start looking.
2. Speak to us to get Pre-qualified.
What you think you can afford and what the lenders are willing to lend you may not match up, especially if you have poor credit or unstable income. We will ask you to do a credit check and start to send us documentation for mortgage approval before you put in that offer to give you the best chance for a successful purchase. If you don't, you'll be wasting the seller's time, the seller's agent's time, and your agent's time if you sign a contract and then discover later that the lender won't lend you what you need, or that it's only willing to give you a mortgage that you find unacceptable.
Be aware that even if you have been pre-approved for a mortgage, your loan can fall through at the last minute if you do something to alter your credit score, like finance a car purchase. If you cause the deal to fall through, you may have to forfeit the several thousand dollars that you put up when you went under contract.
3. Consider Additional Expenses
Once you're a homeowner, you'll have additional expenses on top of your monthly payment. Unlike when you were a renter, you'll be responsible for paying property taxes, insuring your home against disasters and making any repairs the house needs (which will occasionally include expensive items like a new roof or a new furnace).
If you're interested in purchasing a condo, you'll have to pay maintenance costs monthly regardless of whether anything needs fixing because you'll be part of a homeowner's association, which collects a couple hundred dollars a month from the owners of each unit in the building in the form of condominium fees.
4. Don’t Be Too Picky (Especially for First-time Homebuyers)
Go ahead and put everything you can think of on your new home wish list, but don't be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time homebuyers often have to compromise on something because their funds are limited. You may have to live on a busy street, accept outdated decor, make some repairs to the home, or forgo that extra bedroom. Of course, you can always choose to continue renting until you can afford everything on your list - you'll just have to decide how important it is for you to become a homeowner now rather than in a couple of years.
5. Lacking Vision
Even if you can't afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home otherwise meets your needs in terms of the big things that are difficult to change, such as location and size, don't let physical imperfections turn you away. Besides, doing home upgrades yourself, even when you have to hire a contractor, is often cheaper than paying the increased home value to a seller who has already done the work for you.
6. Being Swept Away
Minor upgrades and cosmetic fixes are inexpensive tricks that are a seller's dream for playing on your emotions and eliciting a much higher price tag. Sellers may pay $2,000 for minimal upgrades or staging that you'll end up paying $40,000 for. If you're on a budget, look for homes whose full potential have yet to be realized. Also, first-time homebuyers should always look for a house they can add value to, as this ensures a bump in equity to help you up the property ladder.
7. Compromising on the Important Things
Don't get a two-bedroom home when you know you're planning to have kids and will want three bedrooms. By the same token, don't buy a condo just because it's cheaper when one of the main reasons you're over apartment life is because you hate sharing walls with neighbors. It's true that you'll probably have to make some compromises to be able to afford your first home, but don't make a compromise that will be a major strain.
8. Neglecting to Inspect
It's tempting to think that you're a homeowner the moment you go into escrow, but not so fast - before you close on the sale, you need to know what kind of shape the house is in. You don't want to get stuck with a money pit or with the headache of performing a lot of unexpected repairs. Keeping your feelings in check until you have a full picture of the house's physical condition and the soundness of your potential investment will help you avoid making a serious financial mistake.
9. Not Choosing to Hire an Agent or Using the Seller's Agent
Once you're seriously shopping for a home, don't walk into an open house without having an agent (or at least being prepared to throw out a name of someone you're supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties' best interests, but you can see how that might not work in your best interest if you start dealing with a seller's agent before contacting one of your own.
10. Not Thinking About the Future
It's impossible to perfectly predict the future of your chosen neighbourhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.
Some questions you should ask about your prospective property include:
• What kind of development plans are in the works for your neighbourhood in the future?
• Is your street likely to become a major street or a popular rush-hour shortcut?
• Will a highway be built in your backyard in five years?
• What are the zoning laws in your area?
• If there is a lot of undeveloped land, what is likely to get built there?
• Have home values in the neighbourhood been declining?
If you're happy with the answers to these questions, then your house's location can keep its rose-coloured lustre.
The majority of the above information is from an article published in the Globe and Mail July 22nd, 2010.
We hope that following these 10 simple steps should make your home shopping experience much smoother. It should also help you to avoid any delays or regrets with your home purchase. Please feel free to contact us with any questions.
In addition we would like to announce that Kevin has received his Mortgage Associates licence and is able to assist you will all your mortgage needs. He can be contact by phone at 403-589-3021 or e-mail kevsas@telus.net. So please feel free to contact Betty or Kevin to help you with all your mortgage needs.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Associate
Thursday, August 12, 2010
Friday, July 16, 2010
When Is The Best Time To Buy?
What is happening to house prices? What is happening to interest rates? Both of these questions are asking the same thing; when is the best time to buy? Unfortunately, this question is appropriate for purchasing a property for strictly investment purposes but is not as critical when buying your home. The main reason is once you enter homeownership most people will be homeowners for over 50 years, whether it is the same home or different homes it is still your home. Yes your home is an investment, but we have to start thinking more long term instead of wondering how much the value will increase or decrease over the next six months. Even if your home increases in value in six months by $10,000 what does that do? If you sell, most likely the next home you buy will have also increased by the same amount. In addition, after you sell if you decide to wait because you feel house values are coming down in the near future, where are you going to live until the time comes when you purchase a home again? You can rent but the money you saved will quickly deplete with rent and other costs. Regardless if it is your first home or you sell and buy again, you must remember interest rates may go up or down during this waiting period which can also impact you overall cost.
So again, when is the best time to buy? The best time to buy is when you are ready and can afford it (the sooner the better). Again we must start thinking long term (25 plus years) instead of thinking what will happen in 6 months. Trying to time the market ups and downs is virtually impossible due to the multiple variables that come into play such as home prices, mortgage rates, and the other variables that affect the home prices and mortgage interest rates. This means that if you are just looking at the home prices and not taking into account other factors such as interest rates, you may be losing more than you think. If interest rates are increasing, the savings on the purchase price can be easily offset with the increased interest costs.
If you are truly looking to save money make sure you are making accelerated bi-weekly mortgage payments and take advantage of your prepayment privileges. By using these privileges you will be paying off your mortgage faster which can save you tens or even hundreds of thousands of dollars over the life of the mortgage. With accelerated bi-weekly mortgage payments alone this will add up to more savings then trying to time the market.
In summary whether you are purchasing your first home or thinking of upgrading the best time to buy is when you are ready and can afford it. Please contact us today as we are happy to help you with all your mortgage needs now and in the future.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
So again, when is the best time to buy? The best time to buy is when you are ready and can afford it (the sooner the better). Again we must start thinking long term (25 plus years) instead of thinking what will happen in 6 months. Trying to time the market ups and downs is virtually impossible due to the multiple variables that come into play such as home prices, mortgage rates, and the other variables that affect the home prices and mortgage interest rates. This means that if you are just looking at the home prices and not taking into account other factors such as interest rates, you may be losing more than you think. If interest rates are increasing, the savings on the purchase price can be easily offset with the increased interest costs.
If you are truly looking to save money make sure you are making accelerated bi-weekly mortgage payments and take advantage of your prepayment privileges. By using these privileges you will be paying off your mortgage faster which can save you tens or even hundreds of thousands of dollars over the life of the mortgage. With accelerated bi-weekly mortgage payments alone this will add up to more savings then trying to time the market.
In summary whether you are purchasing your first home or thinking of upgrading the best time to buy is when you are ready and can afford it. Please contact us today as we are happy to help you with all your mortgage needs now and in the future.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Wednesday, June 16, 2010
Variable Rate Mortgage Discounts Looking Good!
With fixed rates that have risen from all time lows and not likely to decrease again, variable rate mortgages may be an option for you. Also, with the rate discounts looking good it may be time to think about going with a variable. Currently the best variables are as follows:
*Prime rate today is currently 2.50%
1) 5 year variable closed at Prime – 0.60% (1.90%) – offered by one lender with great pre-payment privileges.
2) 3 year variable closed at Prime – 0.65% (1.85%) – offered by one lender with great pre-payment privileges.
One factor when deciding if a variable rate mortgage is for you is to know that as the prime interest rate fluctuates so can your mortgage payments. This means with today’s prime rate still at a very low level and expected to increase about 3% over the next three years, your payment may increase substantially. In addition with the new qualifying rules brought in place recently by the federal government you now must qualify at the 5 year bank rate which is currently 5.99%. Therefore you will not be able to qualify for as large of a mortgage as if you went with a 5 year fixed rate mortgage.
Please contact us today if you can handle the payment fluctuations and are able to qualify for your purchase at the higher qualifying rate or to inquire further if the variable rate mortgage is right for you.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
*Prime rate today is currently 2.50%
1) 5 year variable closed at Prime – 0.60% (1.90%) – offered by one lender with great pre-payment privileges.
2) 3 year variable closed at Prime – 0.65% (1.85%) – offered by one lender with great pre-payment privileges.
One factor when deciding if a variable rate mortgage is for you is to know that as the prime interest rate fluctuates so can your mortgage payments. This means with today’s prime rate still at a very low level and expected to increase about 3% over the next three years, your payment may increase substantially. In addition with the new qualifying rules brought in place recently by the federal government you now must qualify at the 5 year bank rate which is currently 5.99%. Therefore you will not be able to qualify for as large of a mortgage as if you went with a 5 year fixed rate mortgage.
Please contact us today if you can handle the payment fluctuations and are able to qualify for your purchase at the higher qualifying rate or to inquire further if the variable rate mortgage is right for you.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Tuesday, June 1, 2010
Prime Rate Increased By 0.25% Today. Is There More To Come?
The Bank of Canada today announced the bank rate has been increased by 0.25% to 0.50%. With this announcement the lenders have subsequently increased their prime rate 0.25% to 2.50%. Over the past few weeks this increase was widely expected as the lenders have increased their fixed mortgage rates a few times during this period. Prime at 2.50% is still considered historically low however, the big question is, are there more interest rate increases expected in the future and when.
The prime interest rate will be increasing in the future. Most economists expect the prime rate to increase another 2% to 3 % over the next 2 to 3 years. With today’s Bank of Canada announcement it is very uncertain whether the interest rates will increase quickly in the short term, stay low in the short term and then increase faster in the future, or increase gradually over time. According to the Bank of Canada future interest rate increases will be dependent on a few factors: 1) How well our economy is growing. If Canada`s economy continues to grow at this fast pace, provided today`s increase does not slow down the economy, expect to see another interest rate increase at the next scheduled rate announcement in 6 weeks. 2) Inflation. If inflation is still increasing and is near or over the Bank of Canada`s 2% target also expect an increase in interest rate in 6 weeks. 3) How other global economies are faring, such as the United States and Europe. The Bank of Canada will have to look at these other global economies and how they are prospering. The degree of influence these global economies are having on Canada`s economy will be factored into the next rate announcement in 6 weeks. Looking at these three factors should help us answer the question of when and how fast the prime rate will increase in the future.
What does this mean to your mortgage rates? Historically speaking those who choose the variable rate mortgage over fixed rates saved more interest over the long term. However, you must remember this is over the long term so trying to time the market and flip between variable and fixed rates can be quite difficult and usually never works. In addition, with the variable rate mortgage, over time your payments will fluctuate. This means with the expected increase in the prime interest rate of 2% to 3%, your payments will increase as well and can be very substantial. If you are able to budget for your payment fluctuations, variable may work for you. If you do not like your mortgage payments changing during the mortgage term then a fixed mortgage is best where the payments do not change for the duration of the term you chose.
Whether you choose to go with a fixed or variable mortgage rate it can be a lot of information to process. You must remember that the decision should be based on your situation and what you and are comfortable with, not what rumours you are hearing is best. Remember there is no wrong decision when it comes to your mortgage no matter what someone tells you as they do not know your situation. We can help you to look at your situation and help you decide the best mortgage for you so contact us today.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
The prime interest rate will be increasing in the future. Most economists expect the prime rate to increase another 2% to 3 % over the next 2 to 3 years. With today’s Bank of Canada announcement it is very uncertain whether the interest rates will increase quickly in the short term, stay low in the short term and then increase faster in the future, or increase gradually over time. According to the Bank of Canada future interest rate increases will be dependent on a few factors: 1) How well our economy is growing. If Canada`s economy continues to grow at this fast pace, provided today`s increase does not slow down the economy, expect to see another interest rate increase at the next scheduled rate announcement in 6 weeks. 2) Inflation. If inflation is still increasing and is near or over the Bank of Canada`s 2% target also expect an increase in interest rate in 6 weeks. 3) How other global economies are faring, such as the United States and Europe. The Bank of Canada will have to look at these other global economies and how they are prospering. The degree of influence these global economies are having on Canada`s economy will be factored into the next rate announcement in 6 weeks. Looking at these three factors should help us answer the question of when and how fast the prime rate will increase in the future.
What does this mean to your mortgage rates? Historically speaking those who choose the variable rate mortgage over fixed rates saved more interest over the long term. However, you must remember this is over the long term so trying to time the market and flip between variable and fixed rates can be quite difficult and usually never works. In addition, with the variable rate mortgage, over time your payments will fluctuate. This means with the expected increase in the prime interest rate of 2% to 3%, your payments will increase as well and can be very substantial. If you are able to budget for your payment fluctuations, variable may work for you. If you do not like your mortgage payments changing during the mortgage term then a fixed mortgage is best where the payments do not change for the duration of the term you chose.
Whether you choose to go with a fixed or variable mortgage rate it can be a lot of information to process. You must remember that the decision should be based on your situation and what you and are comfortable with, not what rumours you are hearing is best. Remember there is no wrong decision when it comes to your mortgage no matter what someone tells you as they do not know your situation. We can help you to look at your situation and help you decide the best mortgage for you so contact us today.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Tuesday, May 25, 2010
New Lending and Insurer Guidelines Regarding Condo Conversions
New lending and mortgage insurer’s guidelines have been recently announced in regards to condo conversions. Here is a list of documentation required up front by the lenders before the mortgage funds can be advanced.
1) The lenders and insurers need to know the actual upgrades performed to the building. An Engineer’s Report or Certificate of Completion ensures there are no structural issues with the building. This will show that construction is complete because the lender will not fund the construction costs on a conversion.
2) The title of the units must have separately registered titles. Sometimes developers will try to sell the units before the condo has been approved and there are no separate registered titles. This is not acceptable and a separate title must be available for the mortgage charge. The appraiser will comment on the legal description of the property or if there is no title.
3) The lenders and insurers will require a Certificate of Incorporation to show that a condo corp. exists, and is in place to handle any property issues that may arise.
4) The lenders and insurers will also need to address the condition of the building and future maintenance. For this, a Reserve Fund Study will be required. Since many conversions are older apartment buildings this will show us the current condition of the building and what maintenance will be over the next fifteen to twenty years. The Reserve Fund Study also outlines the amount of condo fees that should be paid and if there will be any immediate cash needs.
5) Condo financials, bylaws and proposed budgets are also required by the lenders and insurers to approve a condo conversion.
Therefore, for mortgages required for condo conversions, in addition to the regular mortgage approval requirements please provide the additional documentation mentioned up front to avoid any delays in mortgage funding or the deal falling through.
If you have any further questions in regards to condo conversions please contact us at your convenience.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) The lenders and insurers need to know the actual upgrades performed to the building. An Engineer’s Report or Certificate of Completion ensures there are no structural issues with the building. This will show that construction is complete because the lender will not fund the construction costs on a conversion.
2) The title of the units must have separately registered titles. Sometimes developers will try to sell the units before the condo has been approved and there are no separate registered titles. This is not acceptable and a separate title must be available for the mortgage charge. The appraiser will comment on the legal description of the property or if there is no title.
3) The lenders and insurers will require a Certificate of Incorporation to show that a condo corp. exists, and is in place to handle any property issues that may arise.
4) The lenders and insurers will also need to address the condition of the building and future maintenance. For this, a Reserve Fund Study will be required. Since many conversions are older apartment buildings this will show us the current condition of the building and what maintenance will be over the next fifteen to twenty years. The Reserve Fund Study also outlines the amount of condo fees that should be paid and if there will be any immediate cash needs.
5) Condo financials, bylaws and proposed budgets are also required by the lenders and insurers to approve a condo conversion.
Therefore, for mortgages required for condo conversions, in addition to the regular mortgage approval requirements please provide the additional documentation mentioned up front to avoid any delays in mortgage funding or the deal falling through.
If you have any further questions in regards to condo conversions please contact us at your convenience.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Wednesday, May 5, 2010
Why Use Our Services As Mortgage Specialists?
Even if you have used our services in the past, you may not be aware of all the benefits of our mortgage specialist services. In this newsletter we will explain the difference between using our mortgage specialist services compared to going directly to the bank.
1) Bank – Each time you inquire about a mortgage at a bank, before they can disclose to you an interest rate you will be required to go through the application process including a credit check. The interest rate the bank offers you is very dependent on your credit score. Therefore not only is this exercise time consuming but can also negatively affect your credit score. The multiple checks may lower your score thus affecting the interest rate the bank may offer you, potentially stopping you from purchasing the home of your dreams.
Mortgage Specialist – With our services only one application and one credit check is required. This not only saves you time but also has the least impact on your credit score. In addition we can also disclose to you the best interest rates available before the application process and as long as you meet the minimum credit requirements the best interest rates are available to you from the beginning.
2) Bank – The banks can only offer their line of products so they may not have the best mortgage rates and product for your situation.
Mortgage Specialist – We deal with multiple lenders who compete for your business. Combined with multiple products offered by these lenders, we can match the best product for your individual needs.
3) Bank- May not be offering you the best interest rate available due to your credit score or they just may not be offering you the lowest mortgage rate available on the market.
Mortgage Specialist – We have better interest rates than those offered to you by your bank. We deal with multiple lenders who compete for your business including major banks as well as non-bank lenders. The main difference between the two is that the non- bank lenders do not have branches like the major banks so all servicing of your mortgage is done by phone, fax, e-mail and mail. With the lower cost of not having branches, the non-bank lenders can potentially offer better interest rates and may be an option for your mortgage.
4) Bank – When you inquire about your mortgage at your bank not only will they speak to you about your mortgage, they will also try to sell you other products such as bank accounts and investments. Also the person you may be dealing with may only have limited knowledge about their mortgage products and experience as they are required to know so much about all of the products they sell.
Mortgage Specialist – Our specialty is your mortgage and we have extensive experience with hundreds of satisfied clients. With a home purchase most likely being the largest and one of the most important purchases in your lifetime, would you not want to have a specialist to help you with your individual needs?
5) Bank – Will be only available during bankers hours and appointments are usually necessary. Also you may be speaking with different people at the bank throughout the process.
Mortgage Specialist - We work flexible hours including evenings and weekends to discuss your mortgage at your convince. In addition no appointments are necessary and your mortgage can be started immediately over the phone with no obligation. Also you will only be speaking with Betty and Kevin, both of whom know your individual needs so you will not have to continually explain your story over and over again.
If you know of anyone that you think may require mortgage financing, please forward this newsletter so they’re aware of our services as mortgage specialists.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) Bank – Each time you inquire about a mortgage at a bank, before they can disclose to you an interest rate you will be required to go through the application process including a credit check. The interest rate the bank offers you is very dependent on your credit score. Therefore not only is this exercise time consuming but can also negatively affect your credit score. The multiple checks may lower your score thus affecting the interest rate the bank may offer you, potentially stopping you from purchasing the home of your dreams.
Mortgage Specialist – With our services only one application and one credit check is required. This not only saves you time but also has the least impact on your credit score. In addition we can also disclose to you the best interest rates available before the application process and as long as you meet the minimum credit requirements the best interest rates are available to you from the beginning.
2) Bank – The banks can only offer their line of products so they may not have the best mortgage rates and product for your situation.
Mortgage Specialist – We deal with multiple lenders who compete for your business. Combined with multiple products offered by these lenders, we can match the best product for your individual needs.
3) Bank- May not be offering you the best interest rate available due to your credit score or they just may not be offering you the lowest mortgage rate available on the market.
Mortgage Specialist – We have better interest rates than those offered to you by your bank. We deal with multiple lenders who compete for your business including major banks as well as non-bank lenders. The main difference between the two is that the non- bank lenders do not have branches like the major banks so all servicing of your mortgage is done by phone, fax, e-mail and mail. With the lower cost of not having branches, the non-bank lenders can potentially offer better interest rates and may be an option for your mortgage.
4) Bank – When you inquire about your mortgage at your bank not only will they speak to you about your mortgage, they will also try to sell you other products such as bank accounts and investments. Also the person you may be dealing with may only have limited knowledge about their mortgage products and experience as they are required to know so much about all of the products they sell.
Mortgage Specialist – Our specialty is your mortgage and we have extensive experience with hundreds of satisfied clients. With a home purchase most likely being the largest and one of the most important purchases in your lifetime, would you not want to have a specialist to help you with your individual needs?
5) Bank – Will be only available during bankers hours and appointments are usually necessary. Also you may be speaking with different people at the bank throughout the process.
Mortgage Specialist - We work flexible hours including evenings and weekends to discuss your mortgage at your convince. In addition no appointments are necessary and your mortgage can be started immediately over the phone with no obligation. Also you will only be speaking with Betty and Kevin, both of whom know your individual needs so you will not have to continually explain your story over and over again.
If you know of anyone that you think may require mortgage financing, please forward this newsletter so they’re aware of our services as mortgage specialists.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, April 19, 2010
New Lending Rules Summary
Three new lending guidelines were recently released by the Federal Government. The guidelines are to be enforced effective April 19, 2010. Below is a list of the new rules along with an explanation:
1) All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. – Currently, some lenders will allow you to qualify at the 3 and 4 year fixed rate terms when choosing a fixed rate mortgage term of less than 5 years. In addition, for variable rate mortgages some lenders will allow you to qualify at their best 3 year term fixed rate. The 3 year fixed rate is normally lower than a 5 year fixed rate. The lower qualifying rate allows you to qualify for a larger mortgage and thus a higher purchase price. Under the new rules, you will no longer be able to take advantage of the shorter terms and lower rates to qualify for a higher mortgage. For example, with an income of $50,000 per year, no other monthly debt and great credit, your current maximum purchase price would be approximately $400,000 with a 5% down payment. This maximum purchase price is based on the current 3 year qualifying rate with property taxes not to exceed $1,900/year and no condo fees. When the new rule takes effect, your maximum purchase price decreases to approximately $375,000 with 5% down payment. This maximum purchase price is based on the current 5 year qualifying rate with property taxes not to exceed $1,700/year and no condo fees. The $375,000 maximum purchase price is regardless of whether you choose a fixed, variable, or a term of 5 years or less.
2) The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home. – This change allows you to borrow less upon refinancing your existing property. This means if your property is valued at $300,000, the maximum you could borrow today is $285,000 (95%). However, after the rule change takes effect your maximum borrowing power drops to $270,000 (90%). This change only applies to existing owner occupied properties for refinance purposes.
3) Non-owner occupied properties will require a minimum down payment of 20%. – Currently, you have the ability to purchase an investment/rental (non-owner occupied) property with as little as 5% down payment. After the changes take effect, 20% down payment will be required. This means if you were to purchase an investment/rental property valued at $300,000, currently your minimum down payment is $15,000 (5%). When the new rule takes effect, your minimum required down payment to purchase the same property will increase to $60,000 (20%).
We hope that you now have a little more knowledge about the new mortgage guideline changes. If you have any further questions about the above changes please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. – Currently, some lenders will allow you to qualify at the 3 and 4 year fixed rate terms when choosing a fixed rate mortgage term of less than 5 years. In addition, for variable rate mortgages some lenders will allow you to qualify at their best 3 year term fixed rate. The 3 year fixed rate is normally lower than a 5 year fixed rate. The lower qualifying rate allows you to qualify for a larger mortgage and thus a higher purchase price. Under the new rules, you will no longer be able to take advantage of the shorter terms and lower rates to qualify for a higher mortgage. For example, with an income of $50,000 per year, no other monthly debt and great credit, your current maximum purchase price would be approximately $400,000 with a 5% down payment. This maximum purchase price is based on the current 3 year qualifying rate with property taxes not to exceed $1,900/year and no condo fees. When the new rule takes effect, your maximum purchase price decreases to approximately $375,000 with 5% down payment. This maximum purchase price is based on the current 5 year qualifying rate with property taxes not to exceed $1,700/year and no condo fees. The $375,000 maximum purchase price is regardless of whether you choose a fixed, variable, or a term of 5 years or less.
2) The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home. – This change allows you to borrow less upon refinancing your existing property. This means if your property is valued at $300,000, the maximum you could borrow today is $285,000 (95%). However, after the rule change takes effect your maximum borrowing power drops to $270,000 (90%). This change only applies to existing owner occupied properties for refinance purposes.
3) Non-owner occupied properties will require a minimum down payment of 20%. – Currently, you have the ability to purchase an investment/rental (non-owner occupied) property with as little as 5% down payment. After the changes take effect, 20% down payment will be required. This means if you were to purchase an investment/rental property valued at $300,000, currently your minimum down payment is $15,000 (5%). When the new rule takes effect, your minimum required down payment to purchase the same property will increase to $60,000 (20%).
We hope that you now have a little more knowledge about the new mortgage guideline changes. If you have any further questions about the above changes please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Wednesday, April 7, 2010
Housing Affordability Only to Get Worse
With the recent mortgage rate increases purchasing a home has become less affordable. What this means is that a house you could purchase a couple of months ago is unaffordable today. In addition the affordability erosion is due to the recent appreciation of house prices. This newsletter covers how you still have an opportunity to take advantage of the historically low rates.
Looking further into the future, home prices are predicted to continue to keep rising at a moderate pace. In addition, as the economy recovers future salaries are also expected to increase. The main factor that is going to affect future affordability is mortgage interest rates. The expectation is that interest rates will increase another 0.50% by the end of 2010 and 2.5% higher in total over the next 2 to 3 years. Even with the recent increase in the mortgage rates, the rates are still considered being at historical lows. These historically low mortgage rates mean it is still a great time to purchase or refinance your home. The following example shows how you may not be able to afford your home if you wait any longer. Also it proves there is still opportunity to save on interest choosing to purchase or refinance a home in the near term rather than waiting until next year:
Example: $300,000 mortgage amortized over 35 years
Scenario 1: Current 5 year fixed closed interest rate 4.29%
Payment $1,374.08
Interest paid for entire term $61,690.85
Principle balance at end of term $279,246.05
Remaining amortization 30 years
Scenario 2: Predicted 5 year fixed closed interest rate at the end of 2010 of 4.79%
Payment $1,465.23
Interest paid for entire term $69,029.74
Principle balance at end of term $281,115.94
Remaining amortization 30 Years
From the example above you can see how the payments have increased by $91.15. This may not seem like much but it can actually lower the maximum mortgage you can qualify for substantially. This could mean that dream house you were hoping for may now be unaffordable if you wait until the end of the year to purchase. Not only could you afford more with the lower interest rates but there are two other great benefits as follows: 1) Interest savings of $7,338.89 over the 5 year term. 2) Lower principal balance that will save thousands in future interest.
So if you are looking to purchase a home or were thinking about refinancing, do not wait! You may no longer have the ability to afford your dream home or take advantage of the interest savings, if you do not act soon. Please contact us today to take your first step to purchase your new home.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Looking further into the future, home prices are predicted to continue to keep rising at a moderate pace. In addition, as the economy recovers future salaries are also expected to increase. The main factor that is going to affect future affordability is mortgage interest rates. The expectation is that interest rates will increase another 0.50% by the end of 2010 and 2.5% higher in total over the next 2 to 3 years. Even with the recent increase in the mortgage rates, the rates are still considered being at historical lows. These historically low mortgage rates mean it is still a great time to purchase or refinance your home. The following example shows how you may not be able to afford your home if you wait any longer. Also it proves there is still opportunity to save on interest choosing to purchase or refinance a home in the near term rather than waiting until next year:
Example: $300,000 mortgage amortized over 35 years
Scenario 1: Current 5 year fixed closed interest rate 4.29%
Payment $1,374.08
Interest paid for entire term $61,690.85
Principle balance at end of term $279,246.05
Remaining amortization 30 years
Scenario 2: Predicted 5 year fixed closed interest rate at the end of 2010 of 4.79%
Payment $1,465.23
Interest paid for entire term $69,029.74
Principle balance at end of term $281,115.94
Remaining amortization 30 Years
From the example above you can see how the payments have increased by $91.15. This may not seem like much but it can actually lower the maximum mortgage you can qualify for substantially. This could mean that dream house you were hoping for may now be unaffordable if you wait until the end of the year to purchase. Not only could you afford more with the lower interest rates but there are two other great benefits as follows: 1) Interest savings of $7,338.89 over the 5 year term. 2) Lower principal balance that will save thousands in future interest.
So if you are looking to purchase a home or were thinking about refinancing, do not wait! You may no longer have the ability to afford your dream home or take advantage of the interest savings, if you do not act soon. Please contact us today to take your first step to purchase your new home.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Thursday, March 18, 2010
Housing Affordability Only to Get Worse
Recent publications show that purchasing a home has become less affordable. What this means is that a house you could purchase a couple of months ago is unaffordable today. This affordability erosion is due to the recent appreciation of house prices. The reports also show salaries increasing and interest rates decreasing slightly over the past couple of months. However, the higher wages and lower rates were not enough to offset the increased home prices.
Looking further into the future, home prices are predicted to continue to keep rising at a moderate pace. In addition, as the economy recovers future salaries are also expected to increase. The main factor that is going to affect future affordability is mortgage interest rates. It is widely expected that interest rates will be 1% higher by the end of 2010 and 3% higher in total over the next 2 to 3 years. This outlook for interest rates only has one outcome and that is for affordability to continue to go down.
So if you are looking to purchase a home, do not wait! You may no longer have the ability to afford your dream home if you do not act soon. Please contact us today to take your first step to purchase your new home.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Looking further into the future, home prices are predicted to continue to keep rising at a moderate pace. In addition, as the economy recovers future salaries are also expected to increase. The main factor that is going to affect future affordability is mortgage interest rates. It is widely expected that interest rates will be 1% higher by the end of 2010 and 3% higher in total over the next 2 to 3 years. This outlook for interest rates only has one outcome and that is for affordability to continue to go down.
So if you are looking to purchase a home, do not wait! You may no longer have the ability to afford your dream home if you do not act soon. Please contact us today to take your first step to purchase your new home.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, March 1, 2010
New Lending Rules and What They Mean to You
Three new lending guidelines were recently released by the Federal Government. The guidelines are to be enforced effective April 19, 2010. Below is a list of the new rules along with an explanation:
1) All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. – Currently, some lenders will allow you to qualify at the 3 and 4 year fixed rate terms when choosing a fixed rate mortgage term of less than 5 years. In addition, for variable rate mortgages some lenders will allow you to qualify at their best 3 year term fixed rate. The 3 year fixed rate is normally lower than a 5 year fixed rate. The lower qualifying rate allows you to qualify for a larger mortgage and thus a higher purchase price. Under the new rules, you will no longer be able to take advantage of the shorter terms and lower rates to qualify for a higher mortgage. For example, with an income of $50,000 per year, no other monthly debt and great credit, your current maximum purchase price would be approximately $400,000 with a 5% down payment. This maximum purchase price is based on the current 3 year qualifying rate with property taxes not to exceed $1,900/year and no condo fees. When the new rule takes effect, your maximum purchase price decreases to approximately $375,000 with 5% down payment. This maximum purchase price is based on the current 5 year qualifying rate with property taxes not to exceed $1,700/year and no condo fees. The $375,000 maximum purchase price is regardless of whether you choose a fixed, variable, or a term of 5 years or less.
2) The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home. – This change allows you to borrow less upon refinancing your existing property. This means if your property is valued at $300,000, the maximum you could borrow today is $285,000 (95%). However, after the rule change takes effect your maximum borrowing power drops to $270,000 (90%). This change only applies to existing owner occupied properties for refinance purposes.
3) Non-owner occupied properties will require a minimum down payment of 20%. – Currently, you have the ability to purchase an investment/rental (non-owner occupied) property with as little as 5% down payment. After the changes take effect, 20% down payment will be required. This means if you were to purchase an investment/rental property valued at $300,000, currently your minimum down payment is $15,000 (5%). When the new rule takes effect, your minimum required down payment to purchase the same property will increase to $60,000 (20%).
You may have heard news in regards to increasing the minimum down payment for owner occupied purchases from 5% to 10%. In addition, there was discussion about lowering the maximum amortization period from 35 years to 30 years however, these guidelines were not affected with the changes. Thus, you can still purchase owner occupied properties with 5% down payment and amortize your mortgage for 35 years.
As mentioned, the deadline for the lenders to make the appropriate changes is April 19, 2010. However, we expect the lenders to adopt the new guidelines before the April 19, 2010 deadline. If you are requiring mortgage financing and you feel that the above rule changes will affect you, don’t wait, please contact us today to start your mortgage application immediately.
We hope that you now have a little more knowledge about the new mortgage guideline changes. If you have any further questions about the above changes please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at http://www.yourmortgagecontact.com/ or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: http://www.yourmortgagecontact.com/
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. – Currently, some lenders will allow you to qualify at the 3 and 4 year fixed rate terms when choosing a fixed rate mortgage term of less than 5 years. In addition, for variable rate mortgages some lenders will allow you to qualify at their best 3 year term fixed rate. The 3 year fixed rate is normally lower than a 5 year fixed rate. The lower qualifying rate allows you to qualify for a larger mortgage and thus a higher purchase price. Under the new rules, you will no longer be able to take advantage of the shorter terms and lower rates to qualify for a higher mortgage. For example, with an income of $50,000 per year, no other monthly debt and great credit, your current maximum purchase price would be approximately $400,000 with a 5% down payment. This maximum purchase price is based on the current 3 year qualifying rate with property taxes not to exceed $1,900/year and no condo fees. When the new rule takes effect, your maximum purchase price decreases to approximately $375,000 with 5% down payment. This maximum purchase price is based on the current 5 year qualifying rate with property taxes not to exceed $1,700/year and no condo fees. The $375,000 maximum purchase price is regardless of whether you choose a fixed, variable, or a term of 5 years or less.
2) The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home. – This change allows you to borrow less upon refinancing your existing property. This means if your property is valued at $300,000, the maximum you could borrow today is $285,000 (95%). However, after the rule change takes effect your maximum borrowing power drops to $270,000 (90%). This change only applies to existing owner occupied properties for refinance purposes.
3) Non-owner occupied properties will require a minimum down payment of 20%. – Currently, you have the ability to purchase an investment/rental (non-owner occupied) property with as little as 5% down payment. After the changes take effect, 20% down payment will be required. This means if you were to purchase an investment/rental property valued at $300,000, currently your minimum down payment is $15,000 (5%). When the new rule takes effect, your minimum required down payment to purchase the same property will increase to $60,000 (20%).
You may have heard news in regards to increasing the minimum down payment for owner occupied purchases from 5% to 10%. In addition, there was discussion about lowering the maximum amortization period from 35 years to 30 years however, these guidelines were not affected with the changes. Thus, you can still purchase owner occupied properties with 5% down payment and amortize your mortgage for 35 years.
As mentioned, the deadline for the lenders to make the appropriate changes is April 19, 2010. However, we expect the lenders to adopt the new guidelines before the April 19, 2010 deadline. If you are requiring mortgage financing and you feel that the above rule changes will affect you, don’t wait, please contact us today to start your mortgage application immediately.
We hope that you now have a little more knowledge about the new mortgage guideline changes. If you have any further questions about the above changes please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at http://www.yourmortgagecontact.com/ or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: http://www.yourmortgagecontact.com/
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, February 22, 2010
Green Housing Can Save You Money
When purchasing an energy efficient (green) home, in addition to saving on energy costs, you can also save on the mortgage insurance premium. Here are two ways to save on your mortgage with an energy efficient home:
1) 10% CMHC Mortgage Insurance Premium Refund for energy-efficient homes. You can apply for the refund after you take possession of the property directly through the mortgage insurer.
2) Amortization flexibility for energy-efficient homes without premium surcharges. This means you can increase your amortization to 35 years without paying the extra insurance premium surcharge for an extended amortization.
To qualify for these savings, your property must be built to certain standards. The guidelines are as follows:
1) Must be: R-2000 compliant, or
2) Certified under a CMHC eligible energy-efficient building program (i.e. Built GreenTM, Alberta and BC – gold label, NovoclimatMC, ENERGY STAR® and Power Smart™), or
3) Rate 77 or higher on an energy assessment performed by an NRCan licensed energy advisor.
Previously built homes or new construction homes that have the certificates and/or documentation as above can qualify you for the savings. Please call us for further details.
If you are looking to purchase a property, now is an excellent time with interest rates predicted to remain low for the near future, continued price appreciation during the coming years and further savings for going green. Contact us today to take your first step of mortgage financing to purchase you new property.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) 10% CMHC Mortgage Insurance Premium Refund for energy-efficient homes. You can apply for the refund after you take possession of the property directly through the mortgage insurer.
2) Amortization flexibility for energy-efficient homes without premium surcharges. This means you can increase your amortization to 35 years without paying the extra insurance premium surcharge for an extended amortization.
To qualify for these savings, your property must be built to certain standards. The guidelines are as follows:
1) Must be: R-2000 compliant, or
2) Certified under a CMHC eligible energy-efficient building program (i.e. Built GreenTM, Alberta and BC – gold label, NovoclimatMC, ENERGY STAR® and Power Smart™), or
3) Rate 77 or higher on an energy assessment performed by an NRCan licensed energy advisor.
Previously built homes or new construction homes that have the certificates and/or documentation as above can qualify you for the savings. Please call us for further details.
If you are looking to purchase a property, now is an excellent time with interest rates predicted to remain low for the near future, continued price appreciation during the coming years and further savings for going green. Contact us today to take your first step of mortgage financing to purchase you new property.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, February 1, 2010
How Fixed and Variable Rates Are Determined By The Lenders
Interest rates are a very big topic on the minds of many, especially when it comes to a mortgage. However do you really know how interest rates are determined by the lenders? This newsletter will explain the factors examined when determining interest rates.
How are fixed rates determined?
One misconception about fixed mortgage rates is that they move up and down accordingly to the Bank of Canada’s overnight rate or the lenders prime rate. In reality the prime rate is not used to determine fixed mortgage rates at all. Lenders use the Canadian bond market yields to determine the fixed mortgage rates offered. Meaning, if the bond market yields start to increase the fixed mortgage rates will also increase and conversely decrease when the bond yields decrease. So to know where fixed rate mortgages are, heading you need to know what is happing in the bond market. Bond yields are determined on demand for bonds. The reason why current fixed mortgage rates are low is because bond demand is high and yields are also low. Bond yields are currently low because many investors are buying bonds creating a high demand which lowers the yield. Bond demand is higher when money transfers from the equity markets to the safer bond market which usually happens during more uncertain economic times or recessions. As the equity market demand picks up money starts shifting away from the bond market (lowering the demand), thus the yields start to increase which effectively increases fixed mortgage rates.
How are variable rates determined?
Variable rates are directly reflected by what the Bank of Canada’s overnight rate and lenders prime rate are set at. The Bank of Canada does not set the prime rate but the lenders usually adjust their prime rates when the Bank of Canada changes the overnight rate. This means today with the overnight rate and prime rate not being able to move down any further that variable rate mortgages have nowhere to go but increase in the future.
We hope that you now have a little more knowledge about how mortgage interest rates are determined. If you have any further questions about interest rates please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
How are fixed rates determined?
One misconception about fixed mortgage rates is that they move up and down accordingly to the Bank of Canada’s overnight rate or the lenders prime rate. In reality the prime rate is not used to determine fixed mortgage rates at all. Lenders use the Canadian bond market yields to determine the fixed mortgage rates offered. Meaning, if the bond market yields start to increase the fixed mortgage rates will also increase and conversely decrease when the bond yields decrease. So to know where fixed rate mortgages are, heading you need to know what is happing in the bond market. Bond yields are determined on demand for bonds. The reason why current fixed mortgage rates are low is because bond demand is high and yields are also low. Bond yields are currently low because many investors are buying bonds creating a high demand which lowers the yield. Bond demand is higher when money transfers from the equity markets to the safer bond market which usually happens during more uncertain economic times or recessions. As the equity market demand picks up money starts shifting away from the bond market (lowering the demand), thus the yields start to increase which effectively increases fixed mortgage rates.
How are variable rates determined?
Variable rates are directly reflected by what the Bank of Canada’s overnight rate and lenders prime rate are set at. The Bank of Canada does not set the prime rate but the lenders usually adjust their prime rates when the Bank of Canada changes the overnight rate. This means today with the overnight rate and prime rate not being able to move down any further that variable rate mortgages have nowhere to go but increase in the future.
We hope that you now have a little more knowledge about how mortgage interest rates are determined. If you have any further questions about interest rates please feel free to contact us anytime.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, January 25, 2010
Housing Recovery
The Housing Recovery has seemed to take hold across all of Canada. It all started back in the summer of 2009 where the activity for new builds and existing house sales started to increase. This trend continued into the fall and winter. Usually in the last two months of the year home sales slow but even through the winter months of November and December this increasing sales trend continued. Housing sales in 2009 were better than 2008 due to the extraordinary 4th quarter. In addition the average price of detached bungalows rose to $315,055 (up six per cent), the price of a standard two-storey home rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).
This strong recovery in the housing market was attributed to the low mortgage rates as well as some pent up buyer demand. It is expected that this home sales trend and price appreciation should continue while interest rates stay low. As interest rates start to increase the hot real estate market will level off to more normal historical levels during the second half of 2010.
So if you are looking to purchase a property, now is an excellent time with low interest rates for the near future and continued price appreciation during the coming years. Contact us today to take your first step of mortgage financing to purchase you new property.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
This strong recovery in the housing market was attributed to the low mortgage rates as well as some pent up buyer demand. It is expected that this home sales trend and price appreciation should continue while interest rates stay low. As interest rates start to increase the hot real estate market will level off to more normal historical levels during the second half of 2010.
So if you are looking to purchase a property, now is an excellent time with low interest rates for the near future and continued price appreciation during the coming years. Contact us today to take your first step of mortgage financing to purchase you new property.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
Monday, January 4, 2010
Property Taxes 101
The time has come for a new property tax year. In most areas property taxes are based from January to December but must usually be paid in full in June. There are three ways to pay your property taxes 1) Lump sum 2) Through a monthly municipality program (eg. TIPPS) and 3) Through the lender.
1) Lump Sum – You can pay your property taxes when due with one payment but most lenders do not allow this. It also can be very difficult to pay a large $2,000 tax bill fully when due. In addition if the full amount is not paid on time penalties will be charged in addition to your tax payment. It is more advisable to spread your tax payments throughout the year.
2) Monthly Municipality program – Most areas will allow you to pay your taxes on a monthly basis directly to the city or town. These programs are designed to help spread out the responsibility instead of one lump sum payment. In addition you can avoid any late payment penalties if you cannot come up with the full amount using the lump sum option.
3) Through the Lender – This option is similar to option 2 above. The lender collects the taxes along with your regular mortgage payments spreading the tax bill over the entire year. When the taxes are due the lender pays for your taxes in full with the payments collected from you over the year.
With options 2 and 3 payments may be adjusted higher or lower when your property tax payment amount is set by the municipality. Therefore if you pay your property taxes monthly with taxes due in June, the taxes are collected from July to June to pay the taxes fully in June. Please look at the following example.
Tax bill in June 2009 was $1,200.
Start making your monthly tax payments of $100 starting July 1st 2009.
In January of 2010 you receive your property tax assessment (Your property taxes owing be for 2010 due in June).
Based on your new tax assessment, your monthly payments can be adjusted higher or lower, also remembering you have already paid $700 ($100 per month) in taxes From July 1st to January 1st. If your new tax assessment comes in higher at $1,300 your payments get adjusted to $1,300 - $700 = $600 / 5 months remaining until tax bill due in June = $120 per month. If your new tax assessment comes in lower at $1,100 your payments get adjusted to $1,100 - $700 = $400 / 5 months remaining until tax bill due in June = $80 per month.
One misconception is that if you pay your taxes through the lender you pay higher property taxes. This is false as your property taxes are not set by the lender and no matter what option chosen your property taxes paid are always the same. We recommend using options 2 and 3 as they are the best ways to manage and pay for your property taxes.
When purchasing a new property, how property taxes are accounted for is different for your first tax bill. The easiest way to illustrate is with the following example:
Purchase a home with property tax bill for 2010 of $1,200 due in June 2010.
1) If you purchase the property between January and June, upon signing the papers at the lawyers you will receive a property tax credit. For example, if you purchased the property May 1st, the original owner has paid the property taxes from January to April ($400). Therefore when you sign the papers at the lawyers you will receive $400 credit to you from the sellers part of the property taxes. However, you will now be responsible for the full $1,200 property tax bill due in June. This means that if you pay through a monthly tax program you only have 2 months to pay the full $1,200 and the next two payments would be $600 each. Starting July 1st your monthly tax payment will go down to $100. Typically the lenders may let you spread the payments for the current taxes ($600/month) over a longer period of time to ease your payments however the effect is that your payments will not return to the $100 level on July 1st.
2) If you purchase the property between July and December, upon signing the papers at the lawyers you must pay extra for the property taxes. For example, if you purchased the property September 1st, the original owner has paid the full property taxes of $1,200 in June but only owes from January to August ($800). So when you sign the papers at the lawyers you will pay an extra $400 to the previous owner as they have paid the taxes to December. Now your monthly payment for your next years tax bill will be $1,200 / 10 months remaining until next property tax bill = $120. When your new assessment comes in January this monthly payment may be higher or lower.
You now have the basics of how your property taxes are collected and paid. If you have any further questions please feel free to contact us any time and we would be happy to assist you with your questions.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Wishing you, your family and friends a healthy and prosperous New Years in 2010.
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
1) Lump Sum – You can pay your property taxes when due with one payment but most lenders do not allow this. It also can be very difficult to pay a large $2,000 tax bill fully when due. In addition if the full amount is not paid on time penalties will be charged in addition to your tax payment. It is more advisable to spread your tax payments throughout the year.
2) Monthly Municipality program – Most areas will allow you to pay your taxes on a monthly basis directly to the city or town. These programs are designed to help spread out the responsibility instead of one lump sum payment. In addition you can avoid any late payment penalties if you cannot come up with the full amount using the lump sum option.
3) Through the Lender – This option is similar to option 2 above. The lender collects the taxes along with your regular mortgage payments spreading the tax bill over the entire year. When the taxes are due the lender pays for your taxes in full with the payments collected from you over the year.
With options 2 and 3 payments may be adjusted higher or lower when your property tax payment amount is set by the municipality. Therefore if you pay your property taxes monthly with taxes due in June, the taxes are collected from July to June to pay the taxes fully in June. Please look at the following example.
Tax bill in June 2009 was $1,200.
Start making your monthly tax payments of $100 starting July 1st 2009.
In January of 2010 you receive your property tax assessment (Your property taxes owing be for 2010 due in June).
Based on your new tax assessment, your monthly payments can be adjusted higher or lower, also remembering you have already paid $700 ($100 per month) in taxes From July 1st to January 1st. If your new tax assessment comes in higher at $1,300 your payments get adjusted to $1,300 - $700 = $600 / 5 months remaining until tax bill due in June = $120 per month. If your new tax assessment comes in lower at $1,100 your payments get adjusted to $1,100 - $700 = $400 / 5 months remaining until tax bill due in June = $80 per month.
One misconception is that if you pay your taxes through the lender you pay higher property taxes. This is false as your property taxes are not set by the lender and no matter what option chosen your property taxes paid are always the same. We recommend using options 2 and 3 as they are the best ways to manage and pay for your property taxes.
When purchasing a new property, how property taxes are accounted for is different for your first tax bill. The easiest way to illustrate is with the following example:
Purchase a home with property tax bill for 2010 of $1,200 due in June 2010.
1) If you purchase the property between January and June, upon signing the papers at the lawyers you will receive a property tax credit. For example, if you purchased the property May 1st, the original owner has paid the property taxes from January to April ($400). Therefore when you sign the papers at the lawyers you will receive $400 credit to you from the sellers part of the property taxes. However, you will now be responsible for the full $1,200 property tax bill due in June. This means that if you pay through a monthly tax program you only have 2 months to pay the full $1,200 and the next two payments would be $600 each. Starting July 1st your monthly tax payment will go down to $100. Typically the lenders may let you spread the payments for the current taxes ($600/month) over a longer period of time to ease your payments however the effect is that your payments will not return to the $100 level on July 1st.
2) If you purchase the property between July and December, upon signing the papers at the lawyers you must pay extra for the property taxes. For example, if you purchased the property September 1st, the original owner has paid the full property taxes of $1,200 in June but only owes from January to August ($800). So when you sign the papers at the lawyers you will pay an extra $400 to the previous owner as they have paid the taxes to December. Now your monthly payment for your next years tax bill will be $1,200 / 10 months remaining until next property tax bill = $120. When your new assessment comes in January this monthly payment may be higher or lower.
You now have the basics of how your property taxes are collected and paid. If you have any further questions please feel free to contact us any time and we would be happy to assist you with your questions.
We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.
Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com
Wishing you, your family and friends a healthy and prosperous New Years in 2010.
Sincerely,
Betty Saskiw, AMP
Mortgage Associate
&
Kevin Saskiw, CFA
Mortgage Assistant
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