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Your Guide to Real Estate Investment in Canada

Tue, 28 Apr 2026 07:30:20 GMT

Your Guide to Real Estate Investment in Canada

Real estate has long been one of the most popular ways Canadians build wealth. Whether you’re purchasing your first rental property or expanding an existing portfolio, understanding how real estate investment works in Canada—and how it’s financed—is key to making smart decisions.

This guide walks through the fundamentals you need to know before getting started.

Why Canadians Invest in Real Estate

Real estate offers several potential benefits as an investment:

Long-term appreciation of property value
Rental income that can support cash flow
Leverage , allowing you to invest using borrowed funds
Tangible asset with intrinsic value
Portfolio diversification beyond stocks and bonds

When structured properly, real estate can support both income and long-term net worth growth.

Types of Real Estate Investments

Investors typically focus on one or more of the following:

Long-term residential rentals
Short-term or vacation rentals (subject to local regulations)
Multi-unit residential properties
Pre-construction or assignment purchases
Value-add properties that require renovations

Each type comes with different financing rules, risks, and return profiles.

Down Payment Requirements for Investment Properties

In Canada, investment properties generally require higher down payments than owner-occupied homes.

Typical minimums include:

20% down payment for most rental properties
Higher down payments may be required depending on:
Number of units
Property type
Borrower profile
Lender guidelines

Down payment source, income stability, and credit history all play a role in approval.

How Rental Income Is Used to Qualify

Lenders don’t always count 100% of rental income.

Depending on the lender and mortgage product, they may:

Use a rental income offset , or
Include a percentage of rental income toward qualification

Understanding how income is treated can significantly impact borrowing power.

Financing Options for Investors

Investment financing can include:

Conventional mortgages
Insured or insurable options (in limited scenarios)
Alternative or broker-only lenders
Refinancing equity from existing properties
Purchase plus improvements for value-add projects

Access to multiple lenders is often crucial for investors as portfolios grow.

Key Costs Investors Should Plan For

Beyond the purchase price, investors should budget for:

Property taxes
Insurance
Maintenance and repairs
Vacancy periods
Property management fees (if applicable)
Legal and closing costs

A realistic cash-flow analysis is essential before buying.

Risk Considerations

Like any investment, real estate carries risk.

Key factors to consider include:

Interest rate changes
Market fluctuations
Tenant turnover
Regulatory changes
Liquidity (real estate is not easily sold quickly)

A strong financing structure can help manage many of these risks.

The Role of a Mortgage Professional

Investment mortgages are rarely “one-size-fits-all.” Lender policies vary widely, especially as you acquire more properties.

Working with an independent mortgage professional allows you to:

Compare multiple lender strategies
Structure financing for long-term growth
Preserve flexibility as your portfolio evolves
Avoid costly mistakes early on

Final Thoughts

Real estate investment in Canada can be a powerful wealth-building tool when approached with a clear strategy and proper financing.

Whether you’re exploring your first rental property or planning your next acquisition, understanding the numbers—and the lending landscape—matters.

If you’d like to discuss investment property financing, run the numbers, or explore your options, feel free to connect. A well-planned mortgage strategy can make all the difference in long-term success.

Divorce and Your Mortgage: What You Need to Know

Tue, 14 Apr 2026 07:30:06 GMT

Going Through a Separation? Here’s What You Need to Know About Your Mortgage
Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward.

Here’s what you need to know:

You’re Still Responsible for Mortgage Payments

Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure.

If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track.

Breaking or Changing Your Mortgage Comes With Costs

Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage.

Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement.

Legal Status Affects Financing

If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify.

No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized.

Qualifying on One Income Can Be Tougher

Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own.

A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs.

Buying Out Your Partner? You May Have Extra Flexibility

In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home.

This option is especially useful for families looking to minimize disruption for children or maintain community ties.

You Don’t Have to Figure It Out Alone

Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals.

Let’s talk through your situation and explore the best path forward. I’m here to help.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

Tue, 31 Mar 2026 07:30:04 GMT

If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it?

Good news: there is. And it starts with your home.

Use the Equity You’ve Built to Lighten the Load

Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool.

Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment.

What Does That Look Like?

This strategy is called debt consolidation , and there are a few ways to do it:

Refinance your existing mortgage
Access a Home Equity Line of Credit (HELOC)
Take out a second mortgage

Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward.

What Can You Consolidate?

You can roll most types of consumer debt into your mortgage, including:

Credit cards
Personal loans
Payday loans
Car loans
Unsecured lines of credit
Student loans

These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress.

Why This Works

Debt consolidation through your mortgage offers:

Lower interest rates (often significantly lower than credit cards or payday loans)
One simple monthly payment
Potential for faster repayment
Improved cash flow

And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster.

Smart Strategy, Not Just a Quick Fix

This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering.

Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again.

Here’s What the Process Looks Like:

Review your current debts and cash flow
Assess how much equity you’ve built in your home
Explore consolidation options that fit your goals
Create a personalized plan to streamline your payments and reduce overall costs

Ready to Regain Control?

If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future.

Reach out today. I’m here to help you make the most of what you already have.

Bank of Canada Holds Rate at 2.25% — March 18, 2026

Wed, 18 Mar 2026 13:57:28 GMT

The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

What the Bank of Canada Said

The Global Picture

The Bank noted that global economic growth was tracking at approximately 3% heading into 2026, but conditions have become more uncertain following the outbreak of conflict in the Middle East. Global oil and natural gas prices have risen sharply as a result, which is expected to push inflation higher in the near term. Transportation bottlenecks — including disruptions tied to the Strait of Hormuz — are also raising concerns about the supply of key commodities.

Financial markets have responded: global bond yields have risen, equity prices have declined, and credit spreads have widened. The Canada-U.S. dollar exchange rate has remained relatively stable through all of this.

The Canadian Economy

Canada's GDP contracted 0.6% in the fourth quarter of 2025, somewhat weaker than the Bank had anticipated — though much of this was driven by a larger-than-expected drawdown in inventories, rather than a collapse in consumer spending. In fact, domestic demand grew by more than 2%, supported by consumer and government spending.

Looking ahead, the Bank expects modest economic growth as Canada continues adjusting to U.S. tariffs and ongoing trade policy uncertainty. However, the labour market has softened. Employment gains made in the fourth quarter of 2025 were largely reversed in the first two months of 2026, and the unemployment rate climbed to 6.7% in February.

Inflation

On the inflation front, CPI inflation eased to 1.8% in February, down from 2.3% in January — below the Bank's 2% target. Core inflation measures have also come down and are sitting close to 2%. That said, the recent surge in global energy prices is expected to push gasoline prices — and therefore total inflation — higher in the coming months.

Why the Bank Held

With growth risks tilted to the downside and inflation risks moving upward due to energy prices, the Bank of Canada's Governing Council chose to hold steady at 2.25% rather than move in either direction. The Bank cited the need to assess the evolving impact of U.S. tariffs, trade uncertainty, and the Middle East conflict before making any further adjustments.

In the Bank's own words, they "stand ready to respond as needed" — signalling that future moves remain on the table depending on how conditions develop.

What This Means for Mortgage Holders and Buyers

A rate hold means no immediate change to variable-rate mortgage payments or home equity lines of credit (HELOCs) tied to the prime rate. However, the language from the Bank signals a cautious, wait-and-see approach in a climate that carries real uncertainty — both on the growth and inflation sides.

The next scheduled rate announcement is April 29, 2026 , at which point a new Monetary Policy Report will also be released with updated economic projections.

As always, every borrower's situation is unique. If you have questions about how today's announcement affects your mortgage — or want to explore your options — don't hesitate to reach out. Staying informed is one of the best tools you have in any rate environment.

Information sourced from the Bank of Canada's official press release dated March 18, 2026.

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

Tue, 17 Mar 2026 13:44:08 GMT

A Deep Dive into the 2026 Canadian Real Estate Landscape

For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?

It's the biggest financial question for many households, and the answer isn't a simple yes or no. It depends on your personal circumstances, financial readiness, and where you are in the country. Let's break down the key factors shaping Canada's 2026 housing market so you can decide if now is the right time for you.

The National Picture: A Market in Transition

After a period of correction, Canada's housing market is showing signs of a gradual recovery, but it's not the frenzied pace we saw during the pandemic. The Canadian Real Estate Association (CREA) forecasts a 5.1% increase in home sales in 2026, driven by pent-up demand from buyers who have been waiting on the sidelines.

However, the Canada Mortgage and Housing Corporation (CMHC) notes that sales will likely remain below historical averages, with the market facing headwinds from a slower economy, modest income growth, and elevated unemployment levels.

What to Expect in 2026

National Home Sales: Recovery is underway with a 5.1% increase expected, driven by pent-up demand. However, sales will still remain below historical highs as economic uncertainty continues to weigh on buyer confidence.
National Average Price: Prices are forecast to rise modestly by 2.8% to $698,881. This represents steady, sustainable growth rather than the sharp spikes we saw during the pandemic years.
New Construction: Housing starts are projected to decline as developers face high construction costs, weaker demand, and rising inventories of unsold units. Fewer new homes being built could put upward pressure on prices in the long term.
Mortgage Rates: Variable rates are holding steady while fixed rates remain uncertain. The current rate environment offers some stability, but affordability continues to be a key challenge for many buyers.

Interest Rates: The Elephant in the Room

Mortgage rates have been a major factor for homebuyers. The good news is that the Bank of Canada has held its policy interest rate at 2.25% in early 2026, providing some stability for variable-rate mortgages. However, fixed rates may still see some upward pressure.

Many homeowners who secured ultra-low rates during the pandemic are now facing renewals at higher rates, which is tightening household budgets. For new buyers, the current rate environment is a significant improvement from the highs of 2024, but affordability remains a key challenge.

Regional Deep Dive: Where Are the Opportunities?

Canada's housing market is not a monolith. The story is very different depending on where you live.

Ontario & British Columbia: The Rebound

These two provinces, which saw the most significant downturns, are now poised for the strongest rebounds. CREA projects sales to increase by over 8% in both Ontario and BC in 2026. This is largely driven by pent-up demand from buyers who have been waiting for prices to stabilize.

However, the CMHC warns that housing starts in Ontario are projected to fall to near two-decade lows, which could put upward pressure on prices in the long run.

The Prairies & Quebec: Steady and Affordable

Markets in Alberta, Saskatchewan, and Quebec have remained more stable and are expected to see continued growth, albeit at a more moderate pace. Alberta, in particular, stands out for its relative affordability, with prices well below the national average.

The First-Time Homebuyer Opportunity

If you're a first-time homebuyer, 2026 could present a unique window of opportunity. After years of being priced out, many are finding that the combination of lower prices and stabilized interest rates has brought homeownership back within reach.

Furthermore, the government has introduced several programs to help first-time buyers, including:

First-Time Home Buyers' GST/HST Rebate: A new rebate designed to help you recover some of the taxes paid on a new home.
Home Buyers' Plan (HBP): The withdrawal limit from your RRSP has been increased to $60,000, giving you more flexibility to fund your down payment.
First Home Savings Account (FHSA): A powerful savings tool that allows you to save for a down payment tax-free, helping you build your nest egg faster.

So, Is It Your Time to Buy?

While the market is showing positive signs, the decision to buy a home is deeply personal. Here are a few questions to ask yourself:

Is my income stable and secure? Job security is crucial when taking on a mortgage commitment that could last decades.
Have I saved a sufficient down payment? A larger down payment not only reduces your mortgage but can also help you avoid costly mortgage insurance.
Is my credit score in good shape? Your credit score directly impacts the mortgage rates you'll qualify for and could save you thousands over the life of your loan.
Am I prepared for the long-term costs of homeownership? Beyond the mortgage, you'll need to budget for property taxes, maintenance, insurance, and unexpected repairs.

Navigating the housing market can be complex, but you don't have to do it alone. A trusted mortgage professional can help you understand your options, get pre-approved, and determine if now is the right time for you to enter the market.

Ready to explore your options? Let's talk. I can help you make sense of the market and find a mortgage solution that fits your life and your goals.

How to Access Your Home Equity Wisely

Tue, 17 Mar 2026 07:30:14 GMT

Need to Free Up Some Cash? Your Home Equity Could Help

If you've owned your home for a while, chances are it’s gone up in value. That increase—paired with what you’ve already paid down—is called home equity, and it’s one of the biggest financial advantages of owning property.

Still, many Canadians don’t realize they can tap into that equity to improve their financial flexibility, fund major expenses, or support life goals—all without selling their home.

Let’s break down what home equity is and how you might be able to use it to your advantage.

First, What Is Home Equity?

Home equity is the difference between what your home is worth and what you still owe on it.

Example:

If your home is valued at $700,000 and you owe $200,000 on your mortgage, you have $500,000 in equity .

That’s real financial power—and depending on your situation, there are a few smart ways to access it.

Option 1: Refinance Your Mortgage

A traditional mortgage refinance is one of the most common ways to tap into your home’s equity. If you qualify, you can borrow up to 80% of your home’s appraised value , minus what you still owe.

Example:
Your home is worth $600,000
You owe $350,000
You can refinance up to $480,000 (80% of $600K)
That gives you access to $130,000 in equity

You’ll pay off your existing mortgage and take the difference as a lump sum, which you can use however you choose—renovations, investments, debt consolidation, or even a well-earned vacation.

Even if your mortgage is fully paid off, you can still refinance and borrow against your home’s value.

Option 2: Consider a Reverse Mortgage (Ages 55+)

If you're 55 or older, a reverse mortgage could be a flexible way to access tax-free cash from your home—without needing to make monthly payments.

You keep full ownership of your home, and the loan only becomes repayable when you sell, move out, or pass away.

While you won’t be able to borrow as much as a conventional refinance (the exact amount depends on your age and property value), this option offers freedom and peace of mind—especially for retirees who are equity-rich but cash-flow tight.

Reverse mortgage rates are typically a bit higher than traditional mortgages, but you won’t need to pass income or credit checks to qualify.

Option 3: Open a Home Equity Line of Credit (HELOC)

Think of a HELOC as a reusable credit line backed by your home. You get approved for a set amount, and only pay interest on what you actually use.

Need $10,000 for a new roof? Use the line.
Don’t need anything for six months? No payments required.

HELOCs offer flexibility and low interest rates compared to personal loans or credit cards. But they can be harder to qualify for and typically require strong credit, stable income, and a solid debt ratio.

Option 4: Get a Second Mortgage

Let’s say you’re mid-term on your current mortgage and breaking it would mean hefty penalties. A second mortgage could be a temporary solution.

It allows you to borrow a lump sum against your home’s equity, without touching your existing mortgage. Second mortgages usually come with higher interest rates and shorter terms, so they’re best suited for short-term needs like bridging a gap, paying off urgent debt, or funding a one-time project.

So, What’s Right for You?

There’s no one-size-fits-all solution. The right option depends on your financial goals, your current mortgage, your credit, and how much equity you have available.

We’re here to walk you through your choices and help you find a strategy that works best for your situation.

Ready to explore your options?

Let’s talk about how your home’s equity could be working harder for you. No pressure, no obligation—just solid advice.

Fixed vs. Variable Mortgage Rates in Canada

Tue, 03 Mar 2026 08:30:10 GMT

Fixed vs. Variable Rate Mortgages: Which One Fits Your Life?

Whether you’re buying your first home, refinancing your current mortgage, or approaching renewal, one big decision stands in your way: fixed or variable rate? It’s a question many homeowners wrestle with—and the right answer depends on your goals, lifestyle, and risk tolerance.

Let’s break down the key differences so you can move forward with confidence.

Fixed Rate: Stability & Predictability

A fixed-rate mortgage offers one major advantage: peace of mind . Your interest rate stays the same for the entire term—usually five years—regardless of what happens in the broader economy.

Pros:

Your monthly payment never changes during the term.
Ideal if you value budgeting certainty.
Shields you from rate increases.

Cons:

Fixed rates are usually higher than variable rates at the outset.
Penalties for breaking your mortgage early can be steep , thanks to something called the Interest Rate Differential (IRD) —a complex and often costly formula used by lenders.

In fact, IRD penalties have been known to reach up to 4.5% of your mortgage balance in some cases. That’s a lot to pay if you need to move, refinance, or restructure your mortgage before the end of your term.

Variable Rate: Flexibility & Potential Savings

With a variable-rate mortgage , your interest rate moves with the market—specifically, it adjusts based on changes to the lender’s prime rate.

For example, if your mortgage is set at Prime minus 0.50% and prime is 6.00% , your rate would be 5.50% . If prime increases or decreases, your mortgage rate will change too.

Pros:

Typically starts out lower than a fixed rate.
Penalties are simpler and smaller —usually just three months’ interest (often 2–2.5 mortgage payments).
Historically, many Canadians have paid less overall interest with a variable mortgage.

Cons:

Your payment could increase if rates rise.
Not ideal if rate fluctuations keep you up at night.

The Penalty Factor: Why It Matters More Than You Think

One of the biggest surprises for homeowners is the cost of breaking a mortgage early —something nearly 6 out of 10 Canadians do before their term ends.

Fixed Rate = Unpredictable, potentially high penalty (IRD)
Variable Rate = Predictable, usually lower penalty (3 months’ interest)

Even if you don’t plan to break your mortgage, life happens—career changes, family needs, or new opportunities could shift your path.

So, Which One is Best?

There’s no one-size-fits-all answer. A fixed rate might be perfect for someone who wants stable budgeting and plans to stay put for years. A variable rate might work better for someone who’s financially flexible and open to market changes—or who may need to exit their mortgage early.

Ultimately, the best mortgage is the one that fits your goals and your reality —not just what the bank recommends.

Let's Find the Right Fit

Choosing between fixed and variable isn’t just about numbers—it’s about understanding your needs, your future plans, and how much financial flexibility you want.

Let’s sit down and walk through your options together. I’ll help you make an informed, confident choice—no guesswork required.

Home Reno Dreams? Let’s Talk Mortgage Financing

Tue, 17 Feb 2026 08:30:11 GMT

How to Use Your Mortgage to Finance Home Renovations

Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability.

Here are three mortgage-related strategies that can help:

1. Refinancing Your Mortgage

If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations.

Key benefits:

You can access up to 80% of your home’s appraised value , assuming you qualify.
It may be possible to lower your interest rate or reduce your monthly payments.

Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals.

2. Home Equity Line of Credit (HELOC)

If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing.

Why consider a HELOC?

You only pay interest on the amount you use.
You can access funds as needed, which is ideal for staged or ongoing renovations.
You maintain the terms of your existing mortgage if you don’t want to refinance.

Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates.

3. Purchase Plus Improvements Mortgage

If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage.

How it works:

The renovation funds are advanced based on a quote and are held in trust until the work is complete.
The renovations must add value to the property and meet lender requirements.

This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one.

Final Thoughts

Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt.

The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you.

�� Ready to renovate? Connect anytime to get started!

First-Time Buyer? Here’s How to Tell If You’re Ready

Tue, 03 Feb 2026 08:30:04 GMT

Ready to Buy Your First Home? Here’s How to Know for Sure

Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership?

Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path:

1. You’ve Got Your Down Payment and Closing Costs in Place

To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments.

If you’ve managed to save this on your own, that’s a great sign of financial discipline.
If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order.

Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership.

2. Your Credit Profile Tells a Good Story

Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history.

What they typically like to see:

At least two active credit accounts (trade lines) , like a credit card or loan
Each with a minimum limit of $2,000
Open and active for at least 2 years

Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert.

3. Your Income Can Support Homeownership—Comfortably

A steady income is essential, but not all income is treated equally.

If you’re full-time and past probation , you’re in a strong position.
If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify.

A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too.

4. You’ve Talked to a Mortgage Professional

Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far.

If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll:

Get pre-approved (and know what price range you're working with)
Understand your loan options and the qualification process
Build a game plan that suits your timeline and financial goals

The Bottom Line:

Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice.

If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.

Bank of Canada Rate Announcement Jan 28th, 2026

Wed, 28 Jan 2026 15:51:37 GMT

Bank of Canada maintains policy rate at 2¼%.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

January 28, 2026

The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.

The outlook for the global and Canadian economies is little changed relative to the projection in the October Monetary Policy Report (MPR). However, the outlook is vulnerable to unpredictable US trade policies and geopolitical risks.

Economic growth in the United States continues to outpace expectations and is projected to remain solid, driven by AI-related investment and consumer spending. Tariffs are pushing up US inflation, although their effect is expected to fade gradually later this year. In the euro area, growth has been supported by activity in service sectors and will get additional support from fiscal policy. China’s GDP growth is expected to slow gradually, as weakening domestic demand offsets strength in exports. Overall, the Bank expects global growth to average about 3% over the projection horizon.

Global financial conditions have remained accommodative overall. Recent weakness in the US dollar has pushed the Canadian dollar above 72 cents, roughly where it had been since the October MPR. Oil prices have been fluctuating in response to geopolitical events and, going forward, are assumed to be slightly below the levels in the October report.

US trade restrictions and uncertainty continue to disrupt growth in Canada. After a strong third quarter, GDP growth in the fourth quarter likely stalled. Exports continue to be buffeted by US tariffs, while domestic demand appears to be picking up. Employment has risen in recent months. Still, the unemployment rate remains elevated at 6.8% and relatively few businesses say they plan to hire more workers.

Economic growth is projected to be modest in the near term as population growth slows and Canada adjusts to US protectionism. In the projection, consumer spending holds up and business investment strengthens gradually, with fiscal policy providing some support. The Bank projects growth of 1.1% in 2026 and 1.5% in 2027, broadly in line with the October projection. A key source of uncertainty is the upcoming review of the Canada-US-Mexico Agreement.

CPI inflation picked up in December to 2.4%, boosted by base-year effects linked to last winter’s GST/HST holiday. Excluding the effect of changes in taxes, inflation has been slowing since September. The Bank’s preferred measures of core inflation have eased from 3% in October to around 2½% in December. Inflation was 2.1% in 2025 and the Bank expects inflation to stay close to the 2% target over the projection period, with trade-related cost pressures offset by excess supply.

Monetary policy is focused on keeping inflation close to the 2% target while helping the economy through this period of structural adjustment. Governing Council judges the current policy rate remains appropriate, conditional on the economy evolving broadly in line with the outlook we published today. However, uncertainty is heightened and we are monitoring risks closely. If the outlook changes, we are prepared to respond. The Bank is committed to ensuring that Canadians continue to have confidence in price stability through this period of global upheaval.

Information note

The next scheduled date for announcing the overnight rate target is March 18, 2026. The Bank’s next MPR will be released on April 29, 2026.

Read the January 28th, 2026 Monetary Report

Collateral vs. Standard Mortgage: Pros and Cons Explained

Tue, 20 Jan 2026 08:30:04 GMT

Mortgage Registration 101:

What You Need to Know About Standard vs. Collateral Charges

When you’re setting up a mortgage, it’s easy to focus on the rate and monthly payment—but what about how your mortgage is registered?

Most borrowers don’t realize this, but there are two common ways your lender can register your mortgage: as a standard charge or a collateral charge . And that choice can affect your flexibility, future borrowing power, and even your ability to switch lenders.

Let’s break down what each option means—without the legal jargon.

What Is a Standard Charge Mortgage?

Think of this as the “traditional” mortgage.

With a standard charge, your lender registers exactly what you’ve borrowed on the property title. Nothing more. Nothing hidden. Just the principal amount of your mortgage.

Here’s why that matters:

When your mortgage term is up, you can usually switch to another lender easily —often without legal fees, as long as your terms stay the same.
If you want to borrow more money down the line (for example, for renovations or debt consolidation), you’ll need to requalify and break your current mortgage , which can come with penalties and legal costs.

It’s straightforward, transparent, and offers more freedom to shop around at renewal time.

What Is a Collateral Charge Mortgage?

This is a more flexible—but also more complex—type of mortgage registration.

Instead of registering just the amount you borrow, a collateral charge mortgage registers for a higher amount , often up to 100%–125% of your home’s value . Why? To allow you to borrow additional funds in the future without redoing your mortgage.

Here’s the upside:

If your home’s value goes up or you need access to funds, a collateral charge mortgage may let you re-borrow more easily (if you qualify).
It can bundle other credit products—like a line of credit or personal loan—into one master agreement.

But there are trade-offs:

You can’t switch lenders at renewal without hiring a lawyer and paying legal fees to discharge the mortgage.
It may limit your ability to get a second mortgage with another lender because the original lender is registered for a higher amount than you actually owe.

Which One Should You Choose?

The answer depends on what matters more to you: flexibility in future borrowing , or freedom to shop around for better rates at renewal.

Why Talk to a Mortgage Broker?

This kind of decision shouldn’t be made by default—or by what a single lender offers.

An independent mortgage professional can help you:

Understand how your mortgage is registered (most people never ask!)
Compare lenders that offer both options
Make sure your mortgage aligns with your future goals—not just today’s needs

We look at your full financial picture and explain the fine print so you can move forward with confidence—not surprises.

Have questions? Let’s talk. Whether you’re renewing, refinancing, or buying for the first time, I’m here to help you make smart, informed choices about your mortgage. No pressure—just answers.

Everything You Should Know Before Buying a Home

Tue, 13 Jan 2026 08:15:26 GMT

Thinking About Buying a Home? Here’s What to Know Before You Start

Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence.

This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together.

1. Are You Credit-Ready?

One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed.

To be considered “established,” you’ll need:

At least two active credit accounts (like credit cards, loans, or lines of credit)
Each with a minimum limit of $2,500
Reporting for at least two years

Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score.

2. Is Your Income Reliable?

Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments.

Salaried employees in permanent positions generally have the easiest time qualifying.
If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation.

The more predictable your income, the easier it is to qualify.

3. What’s Your Down Payment Plan?

Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is:

5% on the first $500,000 of the purchase price
10% on the portion above $500,000
20% for homes over $1 million

You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes).

The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable.

4. How Much Can You Actually Afford?

There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions.

Your approval amount depends on a variety of factors, including:

Income and employment history
Existing debts
Credit score
Down payment amount
Property taxes and heating costs for the home

All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable.

Start Early, Plan Smart

Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you.

We can:

Review your credit profile
Help you understand how lenders view your income
Guide your down payment planning
Determine how much you can qualify to borrow
Build a roadmap if your finances need some fine-tuning

If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.

Best Mortgage Options for Canadian Homebuyers

Tue, 06 Jan 2026 08:30:07 GMT

Thinking of Calling Your Bank for a Mortgage? Read This First.

If you're buying a home or renewing your mortgage, your first instinct might be to call your bank. It's familiar. It's easy. But it might also cost you more than you realize—in money, flexibility, and long-term satisfaction.

Before you sign anything, here are four things your bank won’t tell you—and four reasons why working with an independent mortgage professional is the smarter move.

1. Your Bank Offers Limited Mortgage Options

Banks can only offer what they sell. So if your financial situation doesn’t fit neatly into their guidelines—or if you’re looking for competitive terms—you might be out of luck.

Working with a mortgage broker? You get access to mortgage products from hundreds of lenders : major banks, credit unions, monoline lenders, alternative lenders, B lenders, and even private funds. That means more options, more flexibility, and a much better chance of finding a mortgage that fits you.

2. Bank Reps Are Salespeople—Not Mortgage Strategists

Let’s be honest: most bank mortgage reps are trained to sell their employer’s products—not to analyze your financial goals or tailor a long-term mortgage plan.

Their job is to generate revenue for the bank.

Independent mortgage professionals are different. We’re not tied to one lender—we’re tied to you. Our job is to shop around, negotiate on your behalf, and recommend the mortgage that offers the best balance of rate, terms, and flexibility.

And yes, we get paid by the lender—but only after we find you a mortgage that works for your situation. That creates a win-win-win: you get the best deal, we earn our fee, and the lender earns your business.

3. Banks Don’t Lead with Their Best Rate

It’s true. Banks often reserve their best rates for those who ask for them—or threaten to walk. And guess what? Most people don’t.

Over 50% of Canadians accept the first renewal offer they get by mail. No questions asked. That’s exactly what the banks count on.

Mortgage professionals don’t play that game. We start by finding lenders offering competitive rates upfront, and we handle the negotiations for you. There’s no guesswork, no pressure, and no settling for less than you deserve.

4. Bank Mortgages Are Often More Restrictive Than You Think

Not all mortgages are created equal. Some come with hidden traps—especially around penalties.

Ever heard of a sky-high prepayment charge when someone breaks their mortgage early? That’s often due to something called an Interest Rate Differential (IRD) —and big banks are notorious for using the harshest IRD calculations.

When we help you choose a mortgage, we don’t just focus on the interest rate. We look at the whole picture, including:

Prepayment privileges
Penalty calculations
Portability
Future flexibility

That way, if your life changes, your mortgage won’t become a financial anchor.

A Quick Recap

What your bank typically offers:

Only their own limited mortgage products
Sales-focused representatives, not mortgage strategists
Default rates that aren’t usually their best
Restrictive contracts with high penalties

What an independent mortgage professional delivers:

Access to over 200 lenders and customized mortgage solutions
Personalized advice and long-term financial strategy
Competitive rates and terms upfront
Transparent, flexible mortgage options designed around your needs

Let’s Talk Before You Sign

Your mortgage is likely the biggest financial commitment you’ll ever make. So why settle for a one-size-fits-all solution?

If you're buying, refinancing, or renewing, I’d love to help you explore your options, explain the fine print, and find a mortgage that truly works for you.

Let’s start with a conversation—no pressure, just good advice.

Mortgage Approval 101: GDS & TDS Explained

Tue, 30 Dec 2025 08:15:03 GMT

Can You Afford That Mortgage? Let’s Talk About Debt Service Ratios

One of the biggest factors lenders look at when deciding whether you qualify for a mortgage is something called your debt service ratios. It’s a financial check-up to make sure you can handle the payments—not just for your new home, but for everything else you owe as well.

If you’d rather skip the math and have someone walk through this with you, that’s what I’m here for. But if you like to understand how things work behind the scenes, keep reading. We’re going to break down what these ratios are, how to calculate them, and why they matter when it comes to getting approved.

What Are Debt Service Ratios?

Debt service ratios measure your ability to manage your financial obligations based on your income. There are two key ratios lenders care about:

Gross Debt Service (GDS)
This looks at the percentage of your income that would go toward housing expenses only.

2. Total Debt Service (TDS)
This includes your housing costs plus all other debt payments—car loans, credit cards, student loans, support payments, etc.

How to Calculate GDS and TDS

Let’s break down the formulas.

GDS Formula:

(P + I + T + H + Condo Fees*) ÷ Gross Monthly Income

Where:

P = Principal

I = Interest

T = Property Taxes

H = Heat

Condo fees are usually calculated at 50% of the total amount

TDS Formula:

(GDS + Monthly Debt Payments) ÷ Gross Monthly Income

These ratios tell lenders if your budget is already stretched too thin—or if you’ve got room to safely take on a mortgage.

How High Is Too High?

Most lenders follow maximum thresholds, especially for insured (high-ratio) mortgages.

As of now, those limits are typically:

GDS: Max 39%

TDS: Max 44%

Go above those numbers and your application could be declined, regardless of how confident you feel about your ability to manage the payments.

Real-World Example

Let’s say you’re earning $90,000 a year, or $7,500 a month.

You find a home you love, and the monthly housing costs (mortgage payment, property tax, heat) total $1,700/month.

GDS = $1,700 ÷ $7,500 = 22.7%

You’re well under the 39% cap—so far, so good.

Now factor in your other monthly obligations:

Car loan: $300
Child support: $500
Credit card/line of credit payments: $700
Total other debt = $1,500/month

Now add that to the $1,700 in housing costs:
TDS = $3,200 ÷ $7,500 = 42.7%

Uh oh. Even though your GDS looks great, your TDS is just over the 42% limit. That could put your mortgage approval at risk—even if you’re paying similar or higher rent now.

What Can You Do?

In cases like this, small adjustments can make a big difference:

Consolidate or restructure your debts to lower monthly payments
Reallocate part of your down payment to reduce high-interest debt
Add a co-applicant to increase qualifying income
Wait and build savings or credit strength before applying

This is where working with an experienced mortgage professional pays off. We can look at your entire financial picture and help you make strategic moves to qualify confidently.

Don’t Leave It to Chance

Everyone’s situation is different, and debt service ratios aren’t something you want to guess at. The earlier you start the conversation, the more time you’ll have to improve your numbers and boost your chances of approval.

If you're wondering how much home you can afford—or want help analyzing your own GDS and TDS—let’s connect. I’d be happy to walk through your numbers and help you build a solid mortgage strategy.

Wait! Are You Really Ready to Buy That Home?

Tue, 23 Dec 2025 08:30:06 GMT

So, you’re thinking about buying a home.

You’ve got Pinterest boards full of kitchen inspo, you’re casually scrolling listings at midnight, and your friends are talking about interest rates like they’re the weather.

But before you dive headfirst into house hunting— wait .

Let’s talk about what “ready” really means when it comes to one of the biggest purchases of your life. Because being ready to own a home is about way more than just having a down payment (although that’s part of it).

Here are the real signs you're ready—or not quite yet—to take the plunge into homeownership:

1. You're Financially Stable (and Not Just on Payday)

Homeownership isn’t a one-time cost. Sure, there’s the down payment, but don’t forget about:

Closing costs
Property taxes
Maintenance & repairs
Insurance
Monthly mortgage payments

If your budget is stretched thin every month or you don’t have an emergency fund, pressing pause might be smart. Owning a home can be more expensive than renting in the short term—and those unexpected costs will show up.

2. You’ve Got a Steady Income and Job Security

Lenders like to see consistency. That doesn’t mean you need to be at the same job forever—but a reliable, documented income (ideally for at least 2 years) goes a long way in qualifying for a mortgage.

Thinking of switching jobs or going self-employed? That might affect your eligibility, so timing is everything.

3. You Know Your Credit Score—and You’ve Worked On It

Your credit score tells lenders how risky (or trustworthy) you are. A higher score opens more doors (literally), while a lower score may mean higher rates—or a declined application.

Pro tip: Pull your credit report before applying. Fix errors, pay down balances, and avoid taking on new debt if you’re planning to buy soon.

4. You’re Ready to Stay Put (At Least for a Bit)

Buying a home isn’t just a financial decision—it’s a lifestyle one. If you’re still figuring out your long-term plans, buying might not make sense just yet.

Generally, staying in your home for at least 3–5 years helps balance the upfront costs and gives your investment time to grow. If you’re more of a “see where life takes me” person right now, that’s totally fine—renting can offer the flexibility you need.

5. You’re Not Just Buying Because Everyone Else Is

This one’s big. You’re not behind. You’re not failing. And buying a home just because it seems like the “adult” thing to do is a fast way to end up with buyer’s remorse.

Are you buying because it fits your goals? Because you’re ready to settle, invest in your future, and take care of a space that’s all yours?

If the answer is yes—you’re in the right headspace.

So… Are You Ready?

If you’re nodding along to most of these, amazing! You might be more ready than you think.

If you’re realizing there are a few things to get in order, that’s okay too. It’s way better to prepare well than to rush into something you're not ready for.

Wherever you’re at, I’d love to help you take the next step—whether that’s getting pre-approved, making a plan, or just asking questions without pressure.

Let’s make sure your homebuying journey starts strong.
Connect anytime—I’m here when you’re ready.

Start Smart: Get Pre-Approved for Your Mortgage

Tue, 16 Dec 2025 08:15:17 GMT

Thinking of Buying a Home? Here’s Why Getting Pre-Approved Is Key

If you’re ready to buy a home but aren’t sure where to begin, the answer is simple: start with a pre-approval. It’s one of the most important first steps in your home-buying journey—and here's why.

Why a Pre-Approval is Crucial

Imagine walking into a restaurant, hungry and excited to order, but unsure if your credit card will cover the bill. It’s the same situation with buying a home. You can browse listings online all day, but until you know how much you can afford, you’re just window shopping.

Getting pre-approved for a mortgage is like finding out the price range you can comfortably shop within before you start looking at homes with a real estate agent. It sets you up for success and saves you from wasting time on properties that might be out of reach.

What Exactly is a Pre-Approval?

A pre-approval isn’t a guarantee. It’s not a promise that a lender will give you a mortgage no matter what happens with your finances. It’s more like a preview of your financial health, giving you a clear idea of how much you can borrow, based on the information you provide at the time.

Think of it as a roadmap. After going through the pre-approval process, you’ll have a much clearer picture of what you can afford and what you need to do to make the final approval process smoother.

What Happens During the Pre-Approval Process?

When you apply for a pre-approval, lenders will look at a few key areas:

Your income
Your credit history
Your assets and liabilities
The property you’re interested in

This comprehensive review will uncover any potential hurdles that could prevent you from securing financing later on. The earlier you identify these challenges, the better.

Potential Issues a Pre-Approval Can Reveal

Even if you feel confident that your finances are in good shape, a pre-approval might uncover issues you didn’t expect:

Recent job changes or probation periods
An income that’s heavily commission-based or reliant on extra shifts
Errors or collections on your credit report
Lack of a well-established credit history
Insufficient funds saved for a down payment
Existing debt reducing your qualification amount
Any other financial blind spots you might not be aware of

By addressing these issues early, you give yourself the best chance of securing the mortgage you need. A pre-approval makes sure there are no surprises along the way.

Pre-Approval vs. Pre-Qualification: What’s the Difference?

It’s important to understand that a pre-approval is more than just a quick online estimate. Unlike pre-qualification—which can sometimes be based on limited information and calculations—a pre-approval involves a thorough review of your finances. This includes looking at your credit report, providing detailed documents, and having a conversation with a mortgage professional about your options.

Why Get Pre-Approved Now?

The best time to secure a pre-approval is as soon as possible. The process is free and carries no risk—it just gives you a clear path forward. It’s never too early to start, and by doing so, you’ll be in a much stronger position when you're ready to make an offer on your dream home.

Let’s Make Your Home Buying Journey Smooth

A well-planned mortgage process can make all the difference in securing your home. If you’re ready to get pre-approved or just want to chat about your options, I’d love to help. Let’s make your home-buying experience a smooth and successful one!

Everything You Need to Know About Second Mortgages

Tue, 09 Dec 2025 08:30:01 GMT

What Is a Second Mortgage, Really? (It’s Not What Most People Think)

If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different.

A second mortgage isn’t about the order of mortgages over time.

It’s actually about the number of loans secured against a single property —at the same time.

So, What Exactly Is a Second Mortgage?

When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default.

A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours.

It’s important to note:

You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top.

Why Would Anyone Take Out a Second Mortgage?

There are a few good reasons homeowners choose this route:

You want to tap into your home equity without refinancing your existing mortgage.
Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties.
You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing.

One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second

mortgage can help reduce your overall interest costs and improve monthly cash flow.

Is a Second Mortgage Right for You?

A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals.

If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward.

Reach out anytime—we’ll figure it out together.

Don’t Let Collections Derail Your Mortgage Application

Tue, 02 Dec 2025 08:15:06 GMT

Can You Get a Mortgage If You Have Collections on Your Credit Report?

Short answer? Not easily.

Long answer? It depends—and it’s more common (and fixable) than you might think.

When it comes to applying for a mortgage, your credit report tells lenders a story. Collections—debts that have been passed to a collection agency because they weren’t paid on time—are big red flags in that story. Regardless of how or why they got there, open collections are going to hurt your chances of getting approved.

Let’s break this down.

What Exactly Is a Collection?

A collection appears on your credit report when a bill goes unpaid for long enough that the lender decides to stop chasing you—and hires a collection agency to do it instead. It doesn’t matter whether it was an unpaid phone bill, a forgotten credit card, or a disputed fine: to a lender, it signals risk.

And lenders don’t like risk.

Why It Matters to Mortgage Lenders?

Lenders use your credit report to gauge how trustworthy you are with borrowed money. If they see you haven’t paid a past debt, especially recently, it suggests you might do the same with a new mortgage—and that’s enough to get your application denied.

Even small collections can cause problems. A $32 unpaid utility bill might seem insignificant to you, but to a lender, it’s a red flag waving loudly.

But What If I Didn’t Know About the Collection?

It happens all the time. You move provinces and miss a final utility charge. Your cell provider sends a bill to an old address. Or maybe the collection is showing in error—credit reports aren’t perfect, and mistakes do happen.

Regardless of the reason, the responsibility to resolve it still falls on you. Even if it’s an honest oversight or an error, lenders will expect you to clear it up or prove it’s been paid.

And What If I Chose Not to Pay It?

Some people intentionally leave certain collections unpaid—maybe they disagree with a charge, or feel a fine is unfair.

Here are a few common “moral stand” collections:

Disputed phone bills
COVID-related fines
Traffic tickets
Unpaid spousal or child support

While you might feel justified, lenders don’t take sides. They’re not interested in why a collection exists—only that it hasn’t been dealt with. And if it’s still active, that could be enough to derail your mortgage application.

How Can You Find Out What’s On Your Report?

Easy. You can check it yourself through services like Equifax or TransUnion, or you can work with a mortgage advisor to go through a full pre-approval. A pre-approval will quickly uncover any credit issues, including collections—giving you a chance to fix them before you apply for a mortgage.

What To Do If You Have Collections

Verify: Make sure the collection is accurate.
Pay or Dispute: Settle the debt or begin a dispute process if it’s an error.
Get Proof: Even if your credit report hasn’t updated yet, documentation showing the debt is paid can be enough for some lenders.
Work With a Pro: A mortgage advisor can help you build a strategy and connect you with lenders who offer flexible solutions.

Collections are common, but they can absolutely block your path to mortgage financing. Whether you knew about them or not, the best approach is to take action early.

If you’d like to find out where you stand—or need help navigating your credit report—I’d be happy to help. Let’s make sure your next mortgage application has the best possible chance of approval.

Finance Your Home Renovations

Tue, 18 Nov 2025 08:15:01 GMT

If you’re looking to do some home renovations but don’t have all the cash up front to pay for materials and contractors, here are a few ways to use mortgage financing to bring everything together.

Existing Home Owners - Mortgage Refinance

Probably the most straightforward solution, if you’re an existing homeowner, would be to access home equity through a mortgage refinance.

Depending on the terms of your existing mortgage, a mid-term mortgage refinance might make good financial sense; there’s even a chance of lowering your overall cost of borrowing while adding the cost of the renovations to your mortgage.

As your financial situation is unique, it never hurts to have the conversation, run the numbers, and look at your options. Let’s talk!

If you're not in a huge rush, it might be worth waiting until your existing term is up for renewal. This is a great time to refinance as you won’t incur a penalty to break your existing mortgage.

Now, regardless of when you refinance, mid-term or at renewal, you’re able to access up to 80% of the appraised value of your home, assuming you qualify for the increased mortgage amount.

Home Equity Line of Credit

Instead of talking with a bank about an unsecured line of credit, if you have significant home equity, a home equity line of credit (HELOC) could be a better option for you.

An unsecured line of credit usually comes with a pretty high rate. In contrast, a HELOC uses your home as collateral, allowing the lender to give you considerably more favourable terms.

There are several different ways to use a HELOC, so if you’d like to talk more about what this could look like for you, connect anytime!

Buying a Property - Purchase Plus Improvements

If you’re looking to purchase a property that could use some work, some lenders will allow you to add extra money to your mortgage to cover the cost of renovations. This is called a purchase plus improvements. The key thing to keep in mind is that the renovations must increase the value of the property. There is a process to follow and a lot of details to go over, but we can do this together.

So if you’d like to discuss using your mortgage to cover the cost of renovating your home, please connect anytime!

Smart Steps to Get Your Home Market-Ready

Tue, 04 Nov 2025 08:15:02 GMT

Thinking About Selling Your Home? Start With These 3 Key Questions

Selling your home is a major move—emotionally, financially, and logistically. Whether you're upsizing, downsizing, relocating, or just ready for a change, there are a few essential questions you should have answers to before you list that "For Sale" sign.

1. How Will I Get My Home Sale-Ready?

Before your property hits the market, you’ll want to make sure it puts its best foot forward. That starts with understanding its current market value—and ends with a plan to maximize its appeal.

A real estate professional can walk you through what similar homes in your area have sold for and help tailor a prep plan that aligns with current market conditions.

Here are some things you might want to consider:

Decluttering and removing personal items
Minor touch-ups or repairs
Fresh paint inside (and maybe outside too)
Updated lighting or fixtures
Professional staging
Landscaping or exterior cleanup
High-quality photos and possibly a virtual tour

These aren’t must-dos, but smart investments here can often translate to a higher sale price and faster sale.

2. What Will It Actually Cost to Sell?

It’s easy to look at the selling price and subtract your mortgage balance—but the real math is more nuanced.

Here's a breakdown of the typical costs involved in selling a home:
Real estate agent commissions (plus GST/HST)
Legal fees
Mortgage discharge fees (and possibly a penalty)
Utility and property tax adjustments
Moving expenses and/or storage costs

That mortgage penalty can be especially tricky—it can sometimes be thousands of dollars, depending on your lender and how much time is left in your term. Not sure what it might cost you? I can help you estimate it.

3. What’s My Plan After the Sale?

Knowing your next step is just as important as selling your current home.

If you're buying again, don’t assume you’ll automatically qualify for a new mortgage just because you’ve had one before. Lending rules change, and so might your financial situation. Before you sell, talk to a mortgage professional to find out what you’re pre-approved for and what options are available.

If you're planning to rent or relocate temporarily, think about timelines, storage, and transition costs.

Clarity and preparation go a long way. The best way to reduce stress and make confident decisions is to work with professionals you trust—and ask all the questions you need.

If you’re thinking about selling and want help mapping out your next steps, I’d be happy to chat anytime. Let’s make a smart plan, together.

4 Signs You’re Ready for Homeownership

Tue, 21 Oct 2025 07:15:10 GMT

Buying your first home is a big deal. And while you may feel like you’re ready to take that step, here are 4 things that will prove it out.

1. You have at least 5% available for a downpayment.

To buy your first home, you need to come up with at least 5% for a downpayment. From there, you’ll be expected to have roughly 1.5% of the purchase price set aside for closing costs.

If you’ve saved your downpayment by accumulating your own funds, it means you have a positive cash flow which is a good thing. However, if you don’t quite have enough saved up on your own, but you have a family member who is willing to give you a gift to assist you, that works too.

2. You have established credit.

Building a credit score takes some time. Before any lender considers you for mortgage financing, they want to see that you have an established history of repaying the money you’ve already borrowed. Typically two trade lines, for a period of two years, with a minimum amount of $2000, should work!

Now, if you’ve had some credit issues in the past, it doesn’t mean you aren’t ready to be a homeowner. However, it might mean a little more planning is required! A co-signor can be considered here as well.

3. You have the income to make your mortgage payments. And then some.

If you’re going to borrow money to buy a house, the lender wants to make sure that you have the ability to pay it back. Plus interest. The ideal situation is to have a permanent full-time position where you’re past probation. Now, if you rely on any inconsistent forms of income, having a two-year history is required.

A good rule of thumb is to keep the costs of homeownership to under a third of your gross income, leaving you with two-thirds of your income to pay for your life.

4. You’ve discussed mortgage financing with a professional.

Buying your first home can be quite a process. With all the information available online, it’s hard to know where to start. While you might feel ready, there are lots of steps to take; way more than can be outlined in a simple article like this one.

So if you think you’re ready to buy your first home, the best place to start is with a preapproval! Let's discuss your financial situation, talk through your downpayment options, look at your credit score, assess your income and liabilities, and ultimately see what kind of mortgage you can qualify for to become a homeowner!

Please connect anytime; it would be a pleasure to work with you!

Mortgages Aren’t One-Size-Fits-All

Tue, 07 Oct 2025 07:15:12 GMT

Why the Cheapest Mortgage Isn’t Always the Smartest Move

Some things are fine to buy on the cheap. Generic cereal? Sure. Basic airline seat? No problem. A car with roll-down windows? If it gets you where you're going, great.

But when it comes to choosing a mortgage? That’s not the time to cut corners.

A “no-frills” mortgage might sound appealing with its rock-bottom interest rate, but what’s stripped away to get you that rate can end up costing you far more in the long run. These mortgages often come with severe limitations—restrictions that could hit your wallet hard if life throws you a curveball.

Let’s break it down.

A typical no-frills mortgage might offer a slightly lower interest rate—maybe 0.10% to 0.20% less. That could save you a few hundred dollars over a few years. But that small upfront saving comes at the cost of flexibility:

Breaking your mortgage early? Expect a massive penalty.
Want to make extra payments? Often not allowed—or severely restricted.
Need to move and take your mortgage with you? Not likely.
Thinking about refinancing? Good luck doing that without a financial hit.

Most people don’t plan on breaking their mortgage early—but roughly two-thirds of Canadians do, often due to job changes, separations, relocations, or expanding families. That’s why flexibility matters.

So why do lenders even offer no-frills mortgages?

Because they know the stats. And they know many borrowers chase the lowest rate without asking what’s behind it. Some banks count on that. Their job is to maximize profits. Ours? To help you make an informed, strategic choice.

As independent mortgage professionals, we work for you—not a single lender. That means we can compare multiple products from various financial institutions to find the one that actually suits your goals and protects your long-term financial health.

Bottom line: Don’t let a shiny low rate distract you from what really matters. A mortgage should fit your life—not the other way around.

Have questions? Want to look at your options? I’d be happy to help. Let’s chat.

Fixed-Rate or Variable-Rate Mortgage?

Tue, 23 Sep 2025 07:15:00 GMT

If you're looking to buy a new property, refinance, or renew an existing mortgage, chances are, you're considering either a fixed or variable rate mortgage. Figuring out which one is the best is entirely up to you! So here's some information to help you along the way.

Firstly, let's talk about the fixed-rate mortgage as this is most common and most heavily endorsed by the banks. With a fixed-rate mortgage, your interest rate is "fixed" for a certain term, anywhere from 6 months to 10 years, with the typical term being five years. If market rates fluctuate anytime after you sign on the dotted line, your mortgage rate won't change. You're a rock; your rate is set in stone. Typically a fixed-rate mortgage has a higher rate than a variable.

Alternatively, a variable rate is not set in stone; instead, it fluctuates with the market. The variable rate is a component (either plus or minus) to the prime rate. So if the prime rate (set by the government and banks) is 2.45% and the current variable rate is Prime minus .45%, your effective rate would be 2%. If three months after you sign your mortgage documents, the prime rate goes up by .25%, your rate would then move to 2.25%. Typically, variable rates come with a five-year term, although some lenders allow you to go with a shorter term.

At first glance, the fixed-rate mortgage seems to be the safe bet, while the variable-rate mortgage appears to be the wild card. However, this might not be the case. Here's the problem, what this doesn't account for is the fact that a fixed-rate mortgage and a variable-rate mortgage have two very different ways of calculating the penalty should you need to break your mortgage.

If you decide to break your variable rate mortgage, regardless of how much you have left on your term, you will end up owing three months interest, which works out to roughly two to two and a half payments. Easy to calculate and not that bad.

With a fixed-rate mortgage, you will pay the greater of either three months interest or what is called an interest rate differential (IRD) penalty. As every lender calculates their IRD penalty differently, and that calculation is based on market fluctuations, the contract rate at the time you signed your mortgage, the discount they provided you at that time, and the remaining time left on your term, there is no way to guess what that penalty will be. However, with that said, if you end up paying an IRD, it won't be pleasant.

If you've ever heard horror stories of banks charging outrageous penalties to break a mortgage, this is an interest rate differential. It's not uncommon to see penalties of 10x the amount for a fixed-rate mortgage compared to a variable-rate mortgage or up to 4.5% of the outstanding mortgage balance.

So here's a simple comparison.

A fixed-rate mortgage has a higher initial payment than a variable-rate mortgage but remains stable throughout your term. The penalty for breaking a fixed-rate mortgage is unpredictable and can be upwards of 4.5% of the outstanding mortgage balance.

A variable-rate mortgage has a lower initial payment than a fixed-rate mortgage but fluctuates with prime throughout your term. The penalty for breaking a variable-rate mortgage is predictable at 3 months interest which equals roughly two and a half payments.

The goal of any mortgage should be to pay the least amount of money back to the lender. This is called lowering your overall cost of borrowing. While a fixed-rate mortgage provides you with a more stable payment, the variable rate does a better job of accommodating when "life happens."

If you’ve got questions, connect anytime. It would be a pleasure to work through the options together.

Mortgage Advice to Help You Through a Separation

Tue, 09 Sep 2025 08:00:09 GMT

With the latest stats claiming that about half of marriages end in divorce and with around three-quarters of Canadians being homeowners, it’s important to know how to handle your mortgage if you decide to separate. Here’s a quick list of things to consider.

Keep making your payments.

A mortgage is a legally binding contract between you and the lender. It doesn’t take marriage into account. If your name appears on the mortgage, you're responsible for making sure the regular payments are made. A marital breakdown does not give you an excuse not to make your mortgage payments.

If, during your marriage, you've relied on your spouse to make the mortgage payments and you aren’t certain payments are being made after separating, it's in your best interest to contact the lender directly to verify your mortgage is being paid. If payments aren't being made, it could affect your credit score or worse; the lender could start foreclosure proceedings.

There is always a financial cost to break your mortgage.

When working through how to split your finances, you decided to either refinance your mortgage, remove someone from the title, or sell the property, keep in mind that you will incur legal costs.

If you’re in the middle of a term, the penalty for breaking your mortgage might be significant, especially if you have a fixed-rate mortgage. It’s certainly worth contacting your mortgage lender directly to verify the cost of breaking your mortgage. Having that information accessible when writing out your separation agreement will provide increased clarity.

Listing your marital status as separated or divorced.

When completing a mortgage application for securing new mortgage financing, when you list your marital status as separated or divorced, you can expect that a lender will want to see your legal separation agreement or your divorce papers. The lender wants to make sure you aren’t responsible for support payments. So if you haven’t finalized the paperwork, expect delays in securing mortgage financing.

It could be harder to qualify for a new mortgage.

With the separation of assets also comes the separation of incomes. If you qualified for your existing mortgage on a double income, you might find it hard to maintain the same quality of lifestyle post-separation.

This is where careful planning comes in. Working closely with your independent mortgage professional will ensure you understand exactly where you stand. You’ll want to put together a plan for how to handle the mortgage on the matrimonial home.

Purchasing the matrimonial home from your ex.

There are special considerations given to people going through a separation to buy out the matrimonial home. Instead of looking at the transaction like a refinance where you can only borrow up to 80% of the property’s value, lenders will consider one spouse buying out the other up to a 95% loan to value ratio. This comes in handy when dividing assets and liabilities.

Navigating the ins and outs of mortgage financing isn’t something you have to do alone. If you're going through a separation and you’d like to discuss all your mortgage options, please connect anytime. It would be a pleasure to walk you through the process.

From Summer Shine to Fall Fine: Smart Home Projects to Tackle Before the First Frost

Thu, 28 Aug 2025 00:41:09 GMT

As patios wind down and pumpkin spice ramps up, fall is the perfect reset for your home—and your homeowner game plan. These quick wins boost comfort, curb appeal, and efficiency now, and set you up for a low-stress winter (and a strong spring market).

1) Safety & “silent leak” checks (Weekend-ready)

Clean gutters & downspouts. Add leaf guards where trees overhang.
Roof scan. Look for lifted shingles, cracked flashings, or moss.
Seal the shell. Re-caulk window/door trim; replace weatherstripping.
Test alarms. New batteries for smoke/CO detectors; add one near bedrooms.
Why it matters: Prevent water intrusion and heat loss before storms roll in.

2) Heat smarter, not harder

Furnace/boiler tune-up and filter change.
Smart thermostat with schedules and geofencing.
Draft hunt. Foam gaskets behind outlets, door sweeps on exterior doors.
ROI tip: Efficiency upgrades lower monthly bills and can improve lender ratios if you’re eyeing a refinance later.

3) Fall-proof your yard (so spring you says “thanks”)

Aerate + overseed + fall fertilize for thicker turf next year.
Trim trees/shrubs away from siding and power lines.
Mulch perennials and plant spring bulbs now.
Shut off/bleed exterior taps and store hoses to avoid burst pipes.

4) Extend outdoor season (cozy edition)

Portable fire pit or propane heater + layered blankets.
Path/step lighting for darker evenings (solar or low-voltage).
Weather-resistant storage for cushions/tools to preserve value.
Neighborhood curb appeal: Warm lighting and tidy beds make a big first impression if you list in shoulder season.

5) Water management = winter peace of mind

Re-grade low spots and add downspout extensions (2–3+ metres).
Check sump pump (and backup).
Look for efflorescence or damp corners in the basement.

6) Mini-renos that punch above their weight

Entry/mudroom upgrade: hooks, bench, boot trays, closed storage.
Laundry room tune-up: counter over machines, sorting bins, task lighting.
Kitchen refresh: new hardware, tap, and under-cabinet lighting in one afternoon.
Budget guide: Many of these land under a micro-reno budget—perfect for a modest line of credit.

7) Indoor air quality tune-up

Deep clean vents and dryers (including the rigid duct).
Add door mats (exterior + interior) to catch grit/salt.
Houseplants or HEPA purifier for closed-window months.

Fast Timeline (pin this to the fridge)

Late August–September

Gutters/downspouts, roof/caulking, HVAC service, lawn care, plant bulbs, exterior tap shut-off plan, path lighting.

October

Weatherstripping/sweeps, fire pit setup, organize mudroom/garage, test alarms, sump check, downspout extensions, dryer vent cleaning.

Financing smarter: make your mortgage work for your home

Annual mortgage check-in. As rates, income, and goals evolve, a quick review can free up cash flow or open options for a small fall project budget.
HELOC vs. top-up refinance. For bite-size projects, a HELOC can be flexible. For bigger renos you plan to pay down, a top-up refi might make more sense.
Bundle & prioritize. Knock out the high-impact, low-cost items first (air sealing, safety, water management) before the cosmetic upgrades.

Not sure which route fits your fall plans? We’ll run the numbers and map the best financing path for your specific budget and goals.

Quick Checklist (copy/paste)

☐ Clean gutters/downspouts; add guards
☐ Roof & flashing visual check
☐ Re-caulk, weatherstrip, add door sweeps
☐ HVAC service + new filter
☐ Aerate/overseed/fertilize; trim trees; plant bulbs
☐ Path & entry lighting
☐ Drain/bleed outdoor taps; store hoses
☐ Downspout extensions; sump test
☐ Dryer vent cleaning
☐ Mudroom/garage organization
☐ Schedule mortgage review / discuss HELOC vs refi

Ready to make fall your low-stress season?

Book a quick fall mortgage check-up—15 minutes to see if a small credit line or a tweak to your current mortgage could cover your priority projects without straining cash flow.

What is a Second Mortgage?

Tue, 26 Aug 2025 08:00:07 GMT

If you're not all that familiar with the ins and outs of mortgage financing, the term "second mortgage" might cause a bit of confusion. Many people incorrectly assume that a second mortgage is arranged when your first term is up for renewal or when you sell your first home. They think that the next mortgage you get is your "second mortgage." This is not the case.

A second mortgage is an additional mortgage on a single property, not the second mortgage you get in your lifetime.

When you borrow money to buy a house, your lawyer or notary will register your mortgage on the property title in what is called first position. This means that your mortgage lender has the first claim against the sale proceeds if you sell your property. If you happen to default on your mortgage, this is the security the lender has in repossessing your property. A second mortgage falls in behind the first mortgage on your property title.

When you sell your property, the lawyers will use the sale proceeds to pay off your mortgages in sequence, the first position mortgage is paid out first, and the second mortgage is paid out second. After both mortgages are paid off completely, you get the remaining equity.

When you secure a second mortgage, you continue making payments on your first mortgage as per your mortgage agreement. You must also then fulfill the terms of the second mortgage.

So why would you want a second mortgage? Well, a second mortgage comes in handy when you're looking to access some of your home equity, but you either have excellent terms on your first mortgage that you don't want to break, or you’d incur a huge penalty to break your first mortgage. Instead of refinancing the first mortgage, a second mortgage can be a better option.

A second mortgage is often used as a short-term debt consolidation tool to help provide you with better cash flow. If you’ve accumulated a considerable amount of high-interest unsecured debt, and you have equity in your home, you can secure a second mortgage to lower your overall cost of borrowing.

If you'd like to know more about how a second mortgage works, or if you'd like to discuss anything related to mortgage financing, please connect anytime!

Unsure About the Housing Market? Let's Talk.

Tue, 12 Aug 2025 08:00:07 GMT

If you’ve been thinking about buying a property, whether that be your first home, next home, forever home, or a home to retire into, the current state of the Canadian economy might have you wondering: Is this really the right time to make a move? There is certainly no shortage of doom and gloom in the news out there.

The truth is, that’s a tough question to answer in the best of times. It’s nearly impossible to know for sure what’s going to happen next with the housing market in Canada. It could heat up or it could cool down.

So here’s some advice. Instead of basing your buying decision entirely on external market factors, like the economy or housing market, consider looking for the answers internally. When you stop looking at the market to determine your timing to buy a home, and instead examine the personal reasons you have for wanting to buy a home, the picture can become much clearer.

Here are some questions to consider. Although they are subjective, they will help bring you clarity. Ask yourself:

Does buying a property now put me in a better financial position?
Do I make enough money now to afford a new home and maintain my lifestyle?
Do I feel confident with my current employment status?
Have I saved enough money for a down payment?
How long do I plan on living in this new home?
Is there any scenario where I might have to sell quickly and potentially lose money?
Does buying a property now move me closer to my life goals?
Do I really want to buy now or am I just feeling a lot of pressure to just buy something?
Am I holding back because I'm scared property prices might drop soon?

There’s no doubt that buying a home can be stressful, but it doesn’t have to be. Having a plan in place is the best course of action to help you make good decisions and alleviate that stress.

If you’d like to have a conversation to discuss your plans, ask some questions, and map out what buying a home looks like for you, we can address many of the unknowns together.

The best place to start is to work through a mortgage pre-approval. There is no cost for this service, you’ll learn exactly what you can qualify for, and it will provide a lot of clarity about your situation.

You might decide that it’s best to wait before buying, and that’s just fine. You might find that now’s a perfect time for you to buy! If you'd like to talk, please connect anytime. You’re not in this alone. We can work through everything together.

Improving Your Credit Score

Tue, 29 Jul 2025 08:00:03 GMT

Your credit score and how you manage credit are huge factors in qualifying for a mortgage. If you want the best interest rates and mortgage products available on the market, you want a high credit score. Here are a few things you can do to improve your credit score.

Make all your payments on time.

Making your payments on time is so important; in fact, it might just be the most important factor in managing your credit.

Here's how credit works. When you borrow money from a lender, you agree to make payments with interest on a set schedule until the debt is repaid in full. Good credit is established and maintained by making your payments on time. However, If you break the terms of that schedule by not making your payments, the lender will report the missed payments to the credit reporting agencies, and your credit score suffers. It’s that simple.

The more payments you miss, the lower your score will be. If you fail to make payments for over 120 days, the lender will most likely send your debt to be recovered by a collection agency. Collections stay on your report for a long time.

So the moment you realize you have missed a payment or as soon as you have the money for it, make the payment. If something prevents you from making a payment, consider contacting the lender directly to let them know what happened and work out an arrangement to make the payment as soon as possible.

It's good to note that lenders only report late payments after a payment is 30 days late. If you miss a payment on a Friday and catch it the following Monday, you won't have anything to worry about - except maybe an NSF fee.

Now, just because payments don't report until being 30 days late, don’t get comfortable with making late payments; the best advice is to pay your debts on time, as agreed.

Stop acquiring new credit.

If you already have at least two different trade lines, you shouldn’t acquire new trade lines just for the sake of it. Of course, if you need to borrow money, like to purchase a vehicle to commute to work, go ahead and apply. Just remember: having more credit available to you doesn’t really help your credit score. In fact, each time a potential lender looks at your credit report, it may lower your credit score a little bit.

With that said, if you already have two different trade lines and your lender offers you an increase on your limit, take it. A credit card with a $10k limit is better for you than a credit card with a $2k limit because how much you spend compared to your credit card's limit impacts your credit score. This leads us directly into the next point.

Keep a reasonable balance.

The more credit you use compared to the limit you have, the less creditworthy you appear. It’s better to carry a reasonable balance (15-25% of the card’s limit) and pay it off each month than to max out your credit cards and just make the minimum payments. If you have to spend more than 25% of your card limit, try to remain under 60%. That shows good utilization. Paying down your credit cards every month and carrying a zero balance will undoubtedly improve your credit score.

Check your credit report regularly.

Did you know that roughly 20% of credit reports have misinformation on them? Mistakes happen all the time. Lenders misreport information, or people with the same names get merged reports. Any number of things could be inaccurate without you knowing about it. You might even have become a victim of fraud or identity theft.

By checking your credit regularly, you can stay on top of everything and correct any errors promptly. Both of Canada's credit reporting agencies, Equifax and Transunion, have programs that, for a small fee, will monitor and update you on any changes made to your credit report.

Handle collections immediately.

When checking your credit report for accuracy, if you happen to find a collection has been registered against you, deal with it immediately. It could be a closed-out cell phone account with a small balance owing, a final utility bill that got missed, unpaid parking tickets, wage garnishments, or spousal support payments. Regardless of what it is, it will harm your credit score if it's registered on your credit report. The best plan of action is to handle any collections or delinquent accounts as soon as possible.

Use your credit card.

If you have acquired credit cards to build your credit score, but you rarely use them, there is a chance the lender might not report your usage, and that won’t help your credit score. You'll want to make sure that you use your credit at least once every three months. Many people find success using their credit cards for gas and groceries and paying off the outstanding balance each month.

There you have it. Regardless of what your credit looks like now, you will continue to increase your credit score if you follow the points outlined above.

If you're looking to buy a property and you’d like to work through your credit report in detail, let’s put together a plan to get you qualified for a mortgage. Get in touch anytime; it would be a pleasure to work with you!

Buying a Vacation Home? Here’s What You Need to Know

Thu, 17 Jul 2025 08:00:08 GMT

The idea of owning a vacation home—your own cozy escape from everyday life—is a dream many Canadians share. Whether it’s a lakeside cabin, a ski chalet, or a beachside bungalow, a second property can add lifestyle value, rental income, and long-term wealth. But before you jump into vacation home ownership, it’s important to think through the details—both financial and practical.

Start With Your 5- and 10-Year Plan

Before you get swept away by the perfect view or your dream destination, take a step back and ask yourself:

Will you use it enough to justify the cost?
Are there other financial goals that take priority right now?
What’s the opportunity cost of tying up your money in a second home?

Owning a vacation home can be incredibly rewarding, but it should fit comfortably within your long-term financial goals—not compete with them.

Financing a Vacation Property: What to Consider

If you don’t plan to pay cash, then financing your vacation home will be your next major step. Mortgage rules for second properties are more complex than those for your primary residence, so here’s what to think about:

1. Do You Have Enough for a Down Payment?

Depending on the type of property and how you plan to use it, down payment requirements typically range from 5% to 20%+ . Factors like whether the property is winterized, the purchase price, and its location all come into play.

2. Can You Afford the Additional Debt?

Lenders will calculate your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to assess whether you can take on a second mortgage.

GDS: Should not exceed 39% of your income
TDS: Should not exceed 44%

If you’re not sure how to calculate these, that’s where I can help!

3. Is the Property Mortgage-Eligible?

Remote or non-winterized properties, or those located outside of Canada, may not qualify for traditional mortgage financing. In these cases, we may need to look at creative lending solutions .

4. Owner-Occupied or Investment Property?

Whether you’ll live in the home occasionally, rent it out, or use it strictly as an investment affects what type of financing you’ll need and what your tax implications might be.

Location, Location… Logistics

Choosing the right vacation property is more than just finding a beautiful setting. Consider:

Current and future development in the area
Available municipal services (sewer, water, road maintenance)
Transportation access – how easy is it to get to your vacation home in all seasons?
Resale value and long-term potential
Seasonal access or weather challenges

What Happens When You’re Not There?

Unless you plan to live there full-time, you'll need to consider:

Will you rent it out for extra income?
Will you hire a property manager or rely on family/friends?
What’s required to maintain valid home insurance while it’s vacant?

Planning ahead will protect your investment and give you peace of mind while you’re away.

Not Sure Where to Start? I’ve Got You Covered.

Buying a vacation home is exciting—but it can also be complicated. As a mortgage broker, I can help you:

Understand your financial readiness
Calculate your GDS/TDS ratios
Review down payment and lending requirements
Explore creative solutions like second mortgages , reverse mortgages , or alternative lenders

Whether you’re just starting to dream or ready to take action, let’s build a plan that gets you one step closer to your ideal getaway.

Reach out today—it would be a pleasure to work with you.

How To Establish New Credit

Tue, 15 Jul 2025 08:00:17 GMT

If you’re new to managing personal finance and you want to learn about credit, you’ve come to the right place. Establishing new credit is a bit of a catch-22. To build a credit history, you need credit. But it’s hard to get credit without having a credit history. So, where do you start?

Well, the first thing you should know is that building credit takes time. It’s not something that happens overnight. If you’re looking to secure mortgage financing, you will want to have a minimum of two trade lines (credit cards, loans, or lines of credit) with a minimum limit of $2500, reporting for at least two years.

If you don’t have any credit yet, the best time to get started is right now. However, that may be difficult because, as we've already identified, without a credit history, most lenders won’t feel confident about taking a chance on you. What’s the solution? Consider a secured credit card.

With a secured credit card, you make a deposit upfront that matches the amount you want to borrow. A reasonable amount would be $1000 deposited on a single secured credit card. You then use your secured credit card to make household purchases and regular utility payments, paying off the total balance each month. If you default on the money borrowed for whatever reason, the lender will retain the money you put up as collateral.

When looking for a secured credit card, be sure to ask whether they report to the two nationwide credit bureaus, Equifax and TransUnion. If the credit card company doesn't report, the credit card account will be useless for your purposes; move on until you find a company that reports to both credit bureaus.

Once your secured credit card begins reporting to the credit bureaus, you begin to have a credit score; usually, this takes about three months. Now you can start to seek out a second trade line in the form of an unsecured credit card. Don’t forget to ensure that this card reports to both of the credit reporting agencies. Another option at this point could be a car loan. From here, you simply want to make all your payments on time!

But what happens if you’re looking to secure mortgage financing before you have a fully established credit report?

Well, if you have someone who would consider co-signing, you can certainly go that route. The mortgage application will depend on their income and credit report, but your name will be on the mortgage. Hopefully, when the mortgage is up for renewal, you’ll have the established credit required to remove them from the mortgage and qualify on your own.

Although establishing credit takes a minimum of two years, it really begins with putting together a plan. If you’d like to discuss anything credit or mortgage-related, please get in touch!

Make the Most of Summer: Outdoor Project Ideas for Every Space

Thu, 10 Jul 2025 08:00:17 GMT

Summer in Canada is short—but sweet. With warm weather and long evenings, it’s the perfect time to get outside and enjoy your outdoor space, no matter how big (or small) it is. Whether you have a tiny patio or a sprawling backyard, a few creative upgrades can go a long way toward turning your space into your personal summer oasis.

Below are ideas for every type of outdoor space, from cozy balconies to large backyards!

For Patio-Only Spaces

Limited to a balcony or concrete patio? No problem! Small spaces can still offer big enjoyment.

1. Upgrade the Flooring
Add interlocking tiles to give your concrete floor a more polished look—wood grain, grass panels, or composite styles are all popular, easy-to-install options.

2. Create an Outdoor Movie Zone
Hang a pull-down screen or grab a portable stand, pair it with a mini projector, and voilà—your very own outdoor movie theatre under the stars!

3. Start an Herb Garden
Railing planters are perfect for growing basil, mint, parsley, and more. Fresh herbs at your fingertips—and they smell amazing too!

4. Add Some Twinkle
Wrap fairy lights around your railing or overhead beams to bring cozy vibes and nighttime charm.

5. Grill Like a Pro
Maximize your BBQ season with a compact baby-que. Weber’s Q Series is a great option for small spaces without compromising grilling power.

For Small Yards

A little yard can still pack a lot of personality. Here are ways to make the most of every square foot:

1. Game Time!
Add a mini putting green or an axe-throwing target (just be safe!) for quick bursts of backyard fun that don’t take up much space.

2. Warm Up Your Nights
Add a heating lamp or portable fire bowl to keep your evenings cozy well into the fall.

3. Grow Your Own Produce
Build or buy a raised garden box to grow tomatoes, cucumbers, lettuce, or other easy vegetables. Gardening is relaxing—and delicious!

4. DIY Bird Bath
Make a pedestal bird bath using an old vase, a platter, and strong glue. You likely have everything you need already at home—and the local birds will thank you!

For Big Yards

If space isn’t an issue, the sky’s the limit! Here are some larger-scale projects to take your yard to the next level:

1. Build a Catio
Yep, it’s a “cat patio”! Give your feline friends a safe way to enjoy the outdoors with a screened-in enclosure attached to your home.

2. Create a Permanent Fire Pit
Use stones and a fire ring to build a beautiful, safe fire pit. You can even add airflow cutouts to reduce smoke—perfect for those marshmallow roasts!

3. Tile a Dining Area
Install paving stones or tiles to define an outdoor dining space. Add a table, some string lights, and enjoy al fresco meals all summer long.

Need More Inspiration?

If none of these projects quite fit your vision, check out Home Depot’s DIY backyard ideas—complete with step-by-step instructions and material lists to help you bring your outdoor dreams to life.

Soak It Up While It Lasts

No matter the size of your space, there’s always something you can do to enhance your outdoor experience. So get out there, get creative, and make the most of these sunny summer days.

See you back here in August—with more tips, tricks, and homeowner insights!

4 Ways to Access Your Home Equity

Tue, 01 Jul 2025 08:00:01 GMT

If you've been a homeowner for many years, it is likely your property value has increased significantly. One advantage of homeownership is the opportunity to build equity. Home equity growth, partnered with the security of living in your own home, is why most Canadians believe homeownership is the best choice for them!

While home equity is one of your greatest assets, accessing home equity is often overlooked when putting together a comprehensive financial plan. So if you’re looking for a way to access some of your home equity, you’ve come to the right place!

Simply put, home equity is the actual market value of your property minus what you owe. For instance, if your home has a market value of $650k and you owe $150k, you have $500k in home equity.

If you want to stay in your home but also access the equity you have built up over the years, there are four options to consider.

Conventional Mortgage Refinance

Assuming you qualify for the mortgage, most lenders will allow you to borrow up to 80% of your property’s value through a conventional refinance.

Let’s say your property is worth $500k and you owe $300k on your existing mortgage. If you were to refinance up to 80%, you would qualify to borrow $400k. After paying out your first mortgage of $300k, you’d end up with $100k (minus any fees to break your mortgage) to spend however you like.

Even if you paid off your mortgage years ago and own your property with a clear title (no mortgage), you can secure a new mortgage on your property.

Reverse Mortgage

A reverse mortgage allows Canadian homeowners 55 or older to turn the equity in their home into tax-free cash. There is no income or credit verification; you maintain ownership of your home, and you aren't required to make any mortgage payments. The full amount of the mortgage will become due when you decide to move or sell.

Unlike a conventional mortgage refinance, reverse mortgages won’t allow you to borrow up to 80% of your home equity. Rather, you can access a lesser amount of equity depending on your age.

The interest rates on a reverse mortgage can be slightly higher than the best rates currently being offered through standard mortgage financing. However, the difference is not outrageous, and this is an option worth considering as the benefits of freeing up cash without mortgage payments provides you with increased flexibility.

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit allows you to set up access to the equity you have in your home but only pay interest if you use it. Qualifying for a HELOC may be challenging as lender criteria can be pretty strict. Unlike a conventional mortgage, a HELOC doesn't usually have an amortization, so you're only required to make the interest payments on the amount you've borrowed.

Second Position Mortgage

If the cost to break your mortgage is really high, but you need access to cash before your existing mortgage renews, consider a second mortgage.

A second mortgage typically has a set amount of time in which you have to repay the loan (term) as well as a fixed interest rate. This rate is usually higher than conventional financing. After you have received the loan proceeds, you can spend the money any way you like, but you will need to make regular payments on the second mortgage until it's paid off.

If you’re looking for a way to access the equity in your home to free up some cash, please get in touch. You’ve got options, and we can work together to find the best option for you!

First-Time Homebuyer? A New GST Rebate Could Put Thousands Back in Your Pocket

Fri, 20 Jun 2025 23:11:01 GMT

If you’re a first-time homebuyer eyeing a new build or major renovation, there's encouraging news that could make homeownership significantly more affordable.

The federal government has proposed a new GST rebate aimed at easing the financial burden for Canadians entering the housing market. While still awaiting parliamentary approval, the proposed legislation offers the potential for thousands in savings —and could be a game-changer for buyers trying to break into today’s high-cost housing landscape.

What’s Being Proposed?

Under the new legislation, eligible first-time homebuyers would receive:

A full GST rebate on homes priced up to $1 million
A partial GST rebate on homes between $1 million and $1.5 million

This could mean up to $50,000 in tax savings on a qualifying home—a major boost for anyone working hard to save for a down payment or meet mortgage qualification requirements.

Why This Matters

With interest rates still elevated and home prices holding steady in many regions, affordability remains a challenge. This rebate could offer meaningful relief in several ways:

Lower Upfront Costs: Removing GST from the purchase price reduces the total amount of money buyers need to save before closing.
Smaller Monthly Payments: A lower purchase price leads to a smaller mortgage, which translates to more manageable monthly payments.
Improved Mortgage Qualification: With a reduced purchase amount, buyers may find it easier to meet lender criteria.

According to recent estimates, a homebuyer purchasing a $1 million new home could see monthly mortgage payments drop by around $240 —money that could go toward savings, home improvements, or simply everyday expenses.

Helping Families Help Each Other

This proposal also offers a win for parents who are supporting their children in buying a first home. Whether through gifted down payments or co-signing, a lower purchase price and more affordable monthly costs mean that family support can go further—and set first-time buyers up for long-term success.

Is This the Right Time to Buy?

If you’re thinking about buying a new or substantially renovated home, this proposed rebate could dramatically improve your financial position. Now is the perfect time to explore your options and make sure your mortgage strategy is aligned with potential policy changes.

�� Let’s connect for a free mortgage review or pre-approval. Whether you’re buying your first home or helping someone else take that first step, I’m here to help you make informed, confident decisions.

Worried About Your Mortgage Renewal? You’re Not Alone

Wed, 18 Jun 2025 20:08:04 GMT

Worried About Your Mortgage Renewal? You’re Not Alone

If your mortgage renewal is coming up soon, you're likely feeling a bit of financial pressure—and you’re not the only one.

A recent survey shows that over half of Canadian homeowners believe their upcoming mortgage renewal could impact their current living situation. With interest rates still higher than what many borrowers locked in before 2022, 45% of those renewing in the next 12 months expect their monthly payments to increase.

Even though the Bank of Canada has held its key overnight rate steady at 2.75%, borrowing costs remain elevated compared to the low-rate years we saw earlier in the decade. And that’s changing how Canadians think about their finances.

Changing Plans and Tightening Budgets

Among those worried about their renewal, 73% say they’re already cutting back on discretionary spending—things like eating out, entertainment, or travel—to brace for higher mortgage payments.

For many, it goes deeper than just trimming the budget. Nearly one in four surveyed homeowners said they’re rethinking their entire financial strategy. Some are pressing pause on home renovations (43%), while others are considering downsizing or relocating to a more affordable area (29%). A smaller group (15%) is even open to major lifestyle changes, like moving in with roommates or relocating to a new neighbourhood altogether.

Fixed-Rate Mortgages on the Rise

In this climate, most homeowners looking to renew are leaning toward fixed-rate mortgages, with 75% preferring the stability of predictable payments. For those facing uncertainty, locking in a rate for the next few years can offer peace of mind—even if it means paying a little more in the short term.

First-Time Buyers Are Feeling It Too

It’s not just current homeowners feeling the pinch. A separate survey found that more than half of Canadians planning to buy a home are cutting back on non-essential spending to save for their down payment or other buying costs. About 31% are even considering tapping into savings or investment accounts like TFSAs, RRSPs, or first-time home savings accounts to make their purchase possible.

What This Means for You

Whether you’re preparing to renew or purchase for the first time, this environment calls for smart, strategic planning. You’re not alone in feeling uncertain—but with the right guidance, you can navigate these changes confidently.

Have questions about your upcoming renewal or wondering what type of mortgage is right for today’s market? Let’s connect. We're here to help you make informed, confident decisions about your home financing.

How to Save Money for a Downpayment

Tue, 17 Jun 2025 08:00:06 GMT

Whether you want to set aside money to buy a car or take a vacation, save up for a down payment on a property, or plan for your retirement, the principles are the same.

However, as you’re reading this article on a website dedicated to helping you secure mortgage financing, we’ll assume you want tips on how to save for a down payment!

The key to saving money is getting clarity - clarity around your income and your expenses, developing and following a clear plan, and seeking help from professionals who can help you see the big picture as well as the details. Although this might seem fundamental, sometimes going back to basics is the best place to start.

Assess your income.

If your goal is to save money, you’ll need to identify just how much money you’ve got to work with! The best way to do this is to write everything down. This could be with paper and a pen or on a spreadsheet; whichever way works best for you is fine. The goal is to have all your income in front of you!

If you’re on a fixed income or receive a salary for work, your calculations might be pretty simple. Use the income you actually take home, not your gross income. Include an average of your variable income sources like tips, overtime, bonuses, or shift differentials. You should also include other income sources like an annual tax return, and child tax or other government benefits.

Spend time to make an exhaustive list of all your income sources.

Track your expenses.

Once you’ve identified what you have to work with on the income side, the next step is to figure out just how much you actually spend to maintain your current lifestyle.

Start by identifying regular bills, then look at your discretionary spending. If you have a budget already in place, you should be able to identify these numbers easily. If not, you can expect that getting clarity around your expenses will be very enlightening. It will be helpful to look through a few months’ worth of bank statements to see just how much money you actually spend.

Information is the key to finding clarity. The more information you have, the more equipped you will be to save money. Just like your income, write down all your expenses. This will allow you to assess and reprioritize where you spend your money.

Develop and follow a plan.

Once you have a clear picture of your income and expenses, you need to figure out how to make more money than you spend. Although that sounds so simple, it really isn’t. The majority of Canadians incur debt because they spend more money than they make. This is why saving money can be so hard.

But if we’re going back to basics, remember this: if you’re spending more money than you're making, you need to either increase your income or decrease your expenses to start saving money. There are countless money-saving strategies on the internet; consider following a few financial bloggers, and have fun learning about what works best for you!

Seek help from professionals.

You’re probably here to learn about how to save money for a down payment because you want to buy a home soon. If that's the case, be assured you're in the right place. Putting together a plan to secure mortgage financing is one plan you don't have to make on your own.

As independent mortgage professionals, it’s our job to help you navigate all aspects of mortgage financing. Just like saving for a down payment is about managing income and expenses, so is getting a mortgage. Income and expenses, along with credit and property, are what a lender looks at when assessing your suitability for a mortgage.

So while you might assume that putting together a plan to save for a down payment is where you should start, it might not actually be the best place to start. Saving money takes time, and while you're doing that, there are many other things you could be doing at the same time, like building credit to increase your chances of qualifying for a mortgage sooner.

When you’re ready to assess your financial situation and put together a plan to save for a down payment and get into a mortgage sooner, please get in touch. It would be a pleasure to work with you.

An Overview of the Home Buying Process

Tue, 03 Jun 2025 08:00:01 GMT

If you’re in the early stages of planning to buy either your first home or your next home, you’ve come to the right place! Even if you’ve been through it before, the home buying process can be daunting, but it doesn’t have to be when you have the right people on your side!

The purpose of this article is to share a high-level view of the home buying process. Obviously, the finer details can be addressed once you’ve submitted an application for pre-approval. But for now, here are some of the answers to general questions you may have as you work through your early preparations.

Are you credit-worthy?

Having an established credit profile is essential when applying for a mortgage. For your credit to be considered established, you’ll want to have a minimum of two trade lines (credit cards, loans, or lines of credit) with a minimum limit of $2500, reporting for a period of at least two years.

From there, you’ll want to make sure that your debt repayment is as close to flawless as possible. Think of it this way: Why would a lender want to lend you money if you don’t have a history of timely repayment on the loans you already have? Making your payments on time, as agreed, is crucial.

We all know, however, that mistakes can happen and payments might get missed. If that's the case, it’s best to catch up as quickly as possible! Late payments only register on your credit report if you're past due by 30 days.

How will you make your mortgage payments?

When providing you with a mortgage, lenders are trusting you with a lot of money. They'll want to feel really good about your ability to pay that money back, over an agreed period of time, with interest.

The more stable your employment, the better chances you have of securing mortgage financing. Typically, you’ll want to be employed in a permanent position or have your income averaged over a period of two years. If you’re self-employed, expect to provide a lot more documentation to substantiate your income.

How much skin do you have in the game?

If you're borrowing money to buy a home, you’re going to have to bring some money to the table. The best down payment comes from accumulating your own funds supported by documents proving a 90-day history in your bank account. Other down payment sources, such as a gift from a family member or proceeds from another property sale, are completely acceptable.

In Canada, 5% down is the minimum requirement. However, depending on the purchase price, it might be more. Also, you need to be aware that you will likely have to prove access to at least 1.5% of the purchase price to be allocated for closing costs.

How much can you afford?

Here’s the thing. What you can afford on paper and what you can afford in real life are often very different amounts. Just because you feel you can afford the proposed mortgage payments, know that you will have to substantiate everything through documentation.

The amount you actually qualify to borrow is based on many factors, certainly too many to list in an article designed to provide you with an overview of the home buying process. However, with that said, it’s never too early in the home buying process to seek professional advice. Our services come at no cost to you; it would be our pleasure to help.

Working with an independent mortgage professional will allow you to assess your credit-worthiness, provide insight on how a lender will view your income, help you plan for a down payment, and nail down exactly how much you can afford to borrow. And if you need help putting together a plan to improve your financial situation, we can do that too.

If you’d like to discuss your financial situation and put together a plan to secure mortgage financing, please get in touch!

GDS/TDS Ratios Explained

Tue, 20 May 2025 08:00:05 GMT

One of the major qualifiers lenders look at when considering your application for mortgage financing is your debt service ratios.

Now, before we get started, if you prefer to have someone walk through these calculations with you, assess your financial situation, and let you know exactly where you stand, let’s connect. There is no use in dusting off the calculator and running the numbers yourself when we can do it for you!

However, if you’re someone who likes to know the nitty-gritty of how things work instead of simply accepting that's just the way it is, this article is for you. But be warned, there are a lot of mortgage words and some math ahead; with that out of the way, let’s get started!

“Debt servicing” is the measure of your ability to meet all of your financial obligations. There are two ratios that lenders examine to determine whether you can debt service a mortgage.

The first is called the “gross debt service” ratio, or GDS, which is the percentage of your monthly household income that covers your housing costs. The second is called the “total debt service” ratio, or TDS, which is the percentage of your monthly household income covering your housing costs and all your other debts.

GDS is your income compared to the cost of financing the mortgage, including your proposed mortgage payments (principal and interest), property taxes, and heat (PITH), plus a percentage of your condo fees (if applicable).

Here’s how to calculate your GDS.

Principal + Interest + Taxes + Heat / Gross Annual Income

Your TDS is your income compared to your GDS plus the payments made to service any existing debts. Debts include car loans, line of credit, credit card payments, support payments, student loans, and anywhere else you’re contractually obligated to make payments.

Here’s how to calculate your TDS.

Principal + Interest + Taxes + Heat + Other Debts / Gross Annual Income

With the calculations for those ratios in place, the next step is to understand that each lender has guidelines that outline a maximum GDS/TDS. Exceeding these guidelines will result in your mortgage application being declined, so the lower your GDS/TDS, the better.

If you don’t have any outstanding debts, your GDS and TDS will be the same number. This is a good thing!

The maximum ratios vary for conventional mortgage financing based on the lender and mortgage product being offered. However, if your mortgage is high ratio and mortgage default insurance is required, the maximum GDS is 39% with a maximum TDS of 44%.

So how does this play out in real life? Well, let’s say you’re currently looking to purchase a property with a payment of $1700/mth (PITH), and your total annual household income is $90,000 ($7500/mth). The calculations would be $1700 divided by $7500, which equals 0.227, giving you a gross debt service ratio of 22.7%.

A point of clarity here. When calculating the principal and interest portion of the payment, the Government of Canada has instituted a stress test. It requires you to qualify using the government's qualifying rate (which is higher), not the actual contract rate. This is true for both fixed and variable rate mortgages.

Now let’s continue with the scenario. Let’s say that in addition to the payments required to service the property, you have a car payment of $300/mth, child support payments of $500/mth, and between your credit cards and line of credit, you’re responsible for another $700/mth. In total, you pay $1500/mth. So when you add in the $1700/mth PITH, you arrive at a total of $3200/mth for all of your financial obligations. $3200 divided by $7500 equals 0.427, giving you a total debt service ratio of 42.7%.

Here’s where it gets interesting. Based on your GDS alone, you can easily afford the property. But when you factor in all your other expenses, the TDS exceeds the allowable limit of 42% (for an insured mortgage anyway). So why does this matter? Well, as it stands, you wouldn’t qualify for the mortgage, even though you are likely paying more than $1700/mth in rent.

So then, to qualify, it might be as simple as shuffling some of your debt to lower payments. Or maybe you have 10% of the purchase price saved for a downpayment, changing the mortgage structure to 5% down and using the additional 5% to pay out a portion of your debt might be the difference you need to bring it all together.

Here’s the thing, as your actual financial situation is most likely different than the one above, working with an independent mortgage professional is the best way to give yourself options. Don’t do this alone. Your best plan is to seek and rely on the advice provided by an experienced independent mortgage professional. While you might secure a handful of mortgages over your lifetime, we do this every day with people just like you.

It’s never too early to start the conversation about mortgage qualification. Going over your application and assessing your debt service ratios in detail beforehand gives you the time needed to make the financial moves necessary to put yourself in the best financial position.

So if you find yourself questioning what you can afford or if you want to discuss your GDS/TDS ratios to understand the mortgage process a little better, please get in touch. It would be a pleasure to work with you, we can get a preapproval started right away.

Should You Get Pre-approved For A Mortgage?

Tue, 06 May 2025 08:00:03 GMT

If you’re thinking about buying a property, but you’re not sure where to start, you’ve come to the right place! Let’s discuss how getting pre-approved is one of the first steps in your home buying journey.

Just like you wouldn’t go into a restaurant without knowing if you have enough money to buy your meal, it’s not a good idea to be shopping for a home without an understanding of how much you can afford. You can browse MLS from your couch all you want beforehand, but when you’re ready to start looking at properties with a real estate agent, you need a pre-approval.

Now, as there may be some confusion around exactly what a pre-approval does and doesn’t do, let’s discuss it in detail. First of all, a pre-approval is not magic, and it’s not binding. A pre-approval is not a contract that will guarantee mortgage financing despite changes to your financial situation. Instead, a pre-approval is simply the first look at your overall financial health that will point you in the right direction before you’re ready to apply for a mortgage.

Said in another way, a pre-approval is a map that gives you the plan to secure an actual approval. After going through the pre-approval process, you’ll know how to qualify for a mortgage and at what amount.

When considering your mortgage application, lenders look at your income, credit history, assets vs liabilities, and the property itself. Working through a pre-approval will cover all these areas and will uncover any major obstacles that might be in your way of securing financing.

The best time to secure a pre-approval is as soon as possible; it’s never a bad idea to have a plan. Here are a few of the obstacles that a pre-approval can uncover:

You’ve recently changed jobs, and you’re still on probation
Your income relies heavily on extra shifts or commissions
You’re unaware of factual mistakes or collections on your credit report
You don’t have an established credit profile
You don’t have enough money saved for a downpayment
Additional debt is lowering the amount you qualify for
Really anything you don't know that you don't know

Even if you believe you have all your ducks in a row, working through the pre-approval process with an independent mortgage professional will ensure you have the best chance of securing a final approval. As a point of clarity, a pre-approval is not the same as a pre-qualification. This is not typing a few things into a website, calculating some numbers, and thinking you’re all set. A pre-approval includes providing your financial information, looking at your credit report, discussing a plan for securing mortgage financing with a mortgage professional, and even submitting documents ahead of time.

Mortgage financing can be a daunting process; it doesn’t have to be. Having a plan in place and doing as much as you can beforehand is essential to ensuring a smooth home buying experience. As there is no cost for getting a mortgage pre-approval, there is absolutely no risk. Consider starting the process right now!

If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!

Will Collections Impact Your Mortgage?

Tue, 22 Apr 2025 18:50:58 GMT

A question that comes up from time to time when discussing mortgage financing is, “If I have collections showing on my credit bureau, will that impact my ability to get a mortgage?” The answer might have a broader implication than what you might think; let's spend a little time discussing it.

Collections accounts are reported on your credit bureau when you have a debt that hasn’t been paid as agreed. Now, regardless of the reason for the collection; the collection is a result of delinquency, it’s an account you didn’t realize was in collections, or even if it’s a choice not to pay something because of moral reasons, all open collections will negatively impact your ability to secure new mortgage financing.

Delinquency

If you’re really late on paying on a loan, credit card, line of credit, or mortgage, and the lender has sent that account to collections, as they consider it a bad debt, this will certainly impact your ability to get new mortgage financing. Look at it this way, why would any lender want to extend new credit to you when you have a known history of not paying your existing debts as agreed?

If you happen to be late on your payments and the collection agencies are calling, the best plan would be to deal with the issue head-on. Settle the debts as quickly as possible and work towards establishing your credit. Very few (if any) lenders will even consider your mortgage application with open collections showing on your credit report.

If you’re unaware of bad debts

It happens a lot more than you’d think; people applying for a mortgage are completely unaware that they have delinquent accounts on their credit report. A common reason for this is that collection agencies are hired simply because the lender can’t reach someone.

Here’s an example. Let’s say you’re moving from one province to another for work, you pay the outstanding balance on your utility accounts, change your phone number, and make the move. And while you think you’ve paid the final amount owing, they read your meter, and there is $32 outstanding on your bill. As the utility company has no way of tracking you down, they send that amount to an agency that registers it on your credit report. You don't know any of this has happened and certainly would have paid the amount had you known it was due.

Alternatively, with over 20% of credit reports containing some level of inaccuracy, mistakes happen. If you’ve had collections in the past, there’s a chance they might be reporting inaccurately, even if it's been paid out.

So as far as your mortgage is concerned, it really doesn’t matter if the collection is a reporting error or a valid collection that you weren’t aware of. If it’s on your credit report, it’s your responsibility to prove it’s been remediated. Most lenders will accept documentation proving the account has been paid and won’t require those changes to reflect on your credit report before proceeding with a mortgage application.

So how do you know if you’ve got mistakes on your credit report? Well, you can either access your credit reports on your own or talk with an independent mortgage advisor to put together a mortgage preapproval. The preapproval process will uncover any issues holding you back. If there are any collections on your bureau, you can implement a plan to fix the problem before applying for a mortgage.

Moral Collections

What if you have purposefully chosen not to pay a collection, fine, bill, or debt for moral reasons? Or what if that account is sitting as an unpaid collection on your credit report because you dispute the subject matter?

Here are a few examples.

A disputed phone or utility bill
Unpaid alimony or child support
Unpaid collections for traffic tickets
Unpaid collections for COVID-19 fines

The truth is, lenders don’t care what the collection is for; they just want to see that you’ve dealt with it. They will be reluctant to extend new mortgage financing while you have an active collection reporting on your bureau.

So if you decide to take a moral stand on not paying a collection, please know that you run the risk of having that moral decision impact your ability to secure a mortgage in the future.

If you have any questions about this or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you!

3 Questions To Ask Yourself Before Listing Your Home!

Tue, 08 Apr 2025 08:00:01 GMT

Deciding to list your home for sale is a big decision. And while there are many reasons you might want/need to sell, here are 3 questions you should ask yourself; and have answers to, before taking that step.

What is my plan to get my property ready for sale?

Assessing the value of your home is an important first step. Talking with a real estate professional will help accomplish that. They will be able to tell you what comparable properties in your area have sold for and what you can expect to sell your property for. They will also know specific market conditions and be able to help you put a plan together.

But as you’re putting together that plan, here are a few discussion points to work through. A little time/money upfront might increase the final sale price.

Declutter and depersonalize
Minor repairs
A fresh coat of interior/exterior paint
New fixtures
Hire a home stager or designer
Exterior maintenance
Professional pictures and/or virtual tour

But then again, these are all just considerations; selling real estate isn’t an exact science. Current housing market conditions will shape this conversation. The best plan of action is to find a real estate professional you trust, ask a lot of questions, and listen to their advice.

What are the costs associated with selling?

Oftentimes it’s the simple math that can betray you. In your head, you do quick calculations; you take what you think your property will sell for and then subtract what you owe on your mortgage; the rest is profit! Well, not so fast. Costs add up when selling a home. Here is a list of costs you’ll want to consider.

Real estate commissions (plus tax)
Mortgage discharge fees and penalties
Lawyer’s fees
Utilities and property tax account settlements
Hiring movers and/or storage fees

Having the exact figures ahead of time allows you to make a better decision. Now, the real wildcard here is the potential mortgage penalty you might pay if you break your existing mortgage. If you need help figuring this number out, get in touch!

What is my plan going forward?

If you’re already considering selling your home, it would be fair to guess that you have your reasons. But as you move forward, make sure you have a plan that is free of assumptions.

If you plan to move from your existing property to another property that you will be purchasing, make sure you have worked through mortgage financing ahead of time.

Just because you’ve qualified for a mortgage in the past doesn’t mean you’ll qualify for a mortgage in the future. Depending on when you got your last mortgage, a lot could have changed. You’ll want to know exactly what you can qualify for before you sell your existing property.

If you’d like to talk through all your options, connect anytime! It would be a pleasure to work with you and provide you with professional, unbiased advice.

What is a “No-Frills” Mortgage?

Tue, 25 Mar 2025 08:00:01 GMT

A no-frills service or product is where non-essential features have been removed from the product or service to keep the price as low as possible.

And while keeping costs low at the expense of non-essential features might be okay when choosing something like which grocery store to shop at, which economy car to purchase, or which budget hotel to spend the night, it’s not a good idea when considering which lender to secure mortgage financing. Here’s why.

When securing mortgage financing, your goal should be to pay the least amount of money over the term. Your plan should include having provisions for unexpected life changes.

Unlike the inconvenience of shopping at a store that doesn’t provide free bags, or driving a car without power windows, or staying at a hotel without any amenities, the so-called “frills” that are stripped away to provide you with the lowest rate mortgage are the very things that could significantly impact your overall cost of borrowing.

Depending on the lender, a “no-frills” mortgage rate might be up to 0.20% lower than a fully-featured mortgage. And while this could potentially save you a few hundreds of dollars over a 5-year term, please understand that it could also potentially cost you thousands (if not tens of thousands) of dollars should you need to break your mortgage early.

So if you’re considering a “no-frills” mortgage, here are a few of the drawbacks to think through:

You'll pay a significantly higher penalty if you need to break your mortgage.
You'll have limited pre-payment privileges.
Potential limitations if you want to port your mortgage to a different property.
You might be limited in your ability to refinance your mortgage (without incurring a considerable penalty).

Simply put, a “no-frills” mortgage is an entirely restrictive mortgage that leaves you without any flexibility. There are many reasons you might need to keep your options open. You might need to break your term because of a job loss or marital breakdown, or maybe you decide to take a new job across the country, or you need to buy a property to accommodate your growing family. Life is unpredictable; flexibility matters.

So why do banks offer a no-frills mortgage anyway? Well, when you deal with a single bank or financial institution, it’s the banker’s job to make as much money from you as possible, even if that means locking you into a very restrictive mortgage product by offering a rock bottom rate. Banks know that 2 out of 3 people break their mortgage within three years (33 months).

However, when you seek the expert advice of an independent mortgage professional, you can expect to see mortgage options from several institutions showcasing mortgage products best suited for your needs. We have your best interest in mind and will help you through the entire process. A mortgage is so much more than just the lowest rate.

If you have any questions about this, or if you’d like to discuss anything else mortgage-related, please get in touch. Working with you would be a pleasure!

How to Handle Missed Payments

Tue, 11 Mar 2025 08:00:01 GMT

If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, this article is for you.

But before we get started, if you have an overdue balance on any of your credit cards at this exact moment, go, make the minimum payment right now. Seriously, log in to your internet banking and make the minimum payment. The rest can wait.

Here’s the good news, if you’ve just missed a payment by a couple of days, you have nothing to worry about. Credit reporting agencies only record when you’ve been 30, 60, and 90 days late on a payment. So, if you got busy and missed your minimum payment due date but made the payment as soon as you realized your error, as long as you haven’t been over 30 days late, it shouldn’t show up as a blemish on your credit report.

However, there’s nothing wrong with making sure. You can always call your credit card company and let them know what happened. Let them know that you missed the payment but that you paid it as soon as you could. Keeping in contact with them is the key. By giving them a quick call, if you have a history of timely payments, they might even go ahead and refund the interest that accumulated on the missed payment. You never know unless you ask!

Now, if you’re having some cash flow issues, and you’ve been 30, 60, or 90 days late on payments, and you haven’t made the minimum payment, your creditworthiness has probably taken a hit. The best thing you can do is make all the minimum payments on your accounts as soon as possible.

Getting up to date as quickly as possible will mitigate the damage to your credit score. The worst thing you can do is bury your head in the sand and ignore the problem, because it won’t go away.

If you cannot make your payments, the best action plan is to contact your lender regularly until you can. They want to work with you! The last thing they want is radio silence on your end. If they haven’t heard from you after repeated missed payments, they might write off your balance as “bad debt” and assign it to a collection agency. Collections and bad debts look bad on your credit report.

As far as qualifying for a mortgage goes, repeated missed payments will negatively impact your ability to get a mortgage. But once you’re back to making regular payments, the more time that goes by, the better your credit will get. It’s all about timing. Always try to be as current as possible with your payments.

So If you plan to buy a property in the next couple of years, it’s never too early to work through your financing, especially if you’ve missed a payment or two in the last couple of years and you’re unsure of where you stand with your credit.

Please connect directly; it would be a pleasure to walk through your mortgage application and credit report. Let’s look and see exactly where you stand and what steps you need to take to qualify for a mortgage.

Is It the Right Time to Refinance? 5 Signs You Should Consider It

Fri, 28 Feb 2025 20:44:01 GMT

Refinancing your mortgage can be a smart financial move, but how do you know if it’s the right time? Whether you’re looking to lower your monthly payments, access home equity, or consolidate debt, refinancing can offer valuable benefits. Here are five key signs that it might be the right time to refinance your mortgage in Canada.

1. Interest Rates Have Dropped

One of the most common reasons Canadians refinance is to secure a lower interest rate. Even a small decrease in your mortgage rate can lead to significant savings over time. If rates have dropped since you took out your mortgage, refinancing could help you reduce your monthly payments and save thousands in interest.

✅ Tip: Check with your mortgage broker to compare your current rate with today’s market rates.

2. Your Financial Situation Has Improved

If your credit score has increased or your income has stabilized since you first got your mortgage, you might qualify for better loan terms. Lenders offer lower rates and better conditions to borrowers with strong financial profiles.

✅ Tip: If you’ve paid off debts, improved your credit score, or increased your savings, refinancing could work in your favour.

3. You Want to Consolidate High-Interest Debt

Carrying high-interest debt from credit cards, personal loans, or lines of credit? Refinancing can help consolidate those debts into your mortgage at a much lower interest rate. This can make monthly payments more manageable and reduce the overall cost of borrowing.

✅ Tip: Make sure the savings from refinancing outweigh any prepayment penalties or fees.

4. You Need to Free Up Cash for a Major Expense

Many Canadians refinance to access their home’s equity for renovations, education costs, or major life expenses. With home values rising in many areas, a refinance could help you tap into that value while still keeping manageable payments.

✅ Tip: Consider a home equity line of credit (HELOC) if you need flexible access to funds.

5. Your Mortgage Term is Ending, and You Want Better Terms

If your mortgage is up for renewal, it’s the perfect time to explore refinancing options. Instead of simply accepting your lender’s renewal offer, compare rates and terms to see if you can get a better deal elsewhere.

✅ Tip: A mortgage broker can help you shop around and negotiate better terms on your behalf.

Is Refinancing Right for You?

Refinancing isn’t always the best move—there can be penalties for breaking your current mortgage, and not all savings are worth the switch. However, if you relate to any of the five signs above, it’s worth discussing your options with a mortgage professional.

Thinking about refinancing? Let’s chat and find the best option for you!

Porting Your Mortgage

Tue, 25 Feb 2025 09:00:00 GMT

Porting your mortgage is when you transfer the remainder of your current mortgage term, outstanding principal balance, and interest rate to a new property if you’re selling your existing home and buying a new one.

Now, despite what some big banks would lead you to believe, porting your mortgage is not an easy process. It’s not a magic process that guarantees you will qualify to purchase a new property using the mortgage you had on a previous property.

In addition to re-qualifying for the mortgage you already have, the lender will also assess the property you’re looking to purchase. Many moving parts come into play. You’re more likely to have significant setbacks throughout the process than you are to execute a flawless port. Here are some of the reasons:

You may not qualify for the mortgage

Let’s say you’re moving to a new city to take a new job. If you’re relying on porting your mortgage to buy a new property, you’ll have to substantiate your new income. If you’re on probation or changed professions, there’s a chance the lender will decline your application. Porting a mortgage is a lot like qualifying for a new mortgage, just with more conditions.

The property you are buying has to be approved

So let’s say that your income isn’t an issue and that you qualify for the mortgage. The subject property you want to purchase has to be approved as well. Just because the lender accepted your last property as collateral for the mortgage doesn’t mean the lender will accept the new property. The lender will require an appraisal and scrutinize the condition of the property you’re looking to buy.

Property values are rarely the same

Chances are, if you’re selling a property and buying a new one, there’ll be some price difference. When looking to port a mortgage, if the new property’s value is higher than your previous property, requiring a higher mortgage amount, you’ll most likely have to take a blended rate on the new money, which could increase your payment. If the property value is considerably less, you might incur a penalty to reduce the total mortgage amount.

You still need a downpayment

Porting a mortgage isn’t just a simple case of swapping one property for another while keeping the same mortgage. You’re still required to come up with a downpayment on the new property.

You’ll most likely have to pay a penalty

Most lenders will charge the total discharge penalty when you sell your property and take it from the sale proceeds. The penalty is then refunded when you execute the port and purchase the new property. So if you are relying on the proceeds of sale to come up with your downpayment, you might have to make other arrangements.

Timelines rarely work out

When assessing the housing market, It’s usually a buyer’s market or a seller’s market, not both at the same time. So although you may be able to sell your property overnight, you might not be able to find a suitable property to buy. Alternatively, you may be able to find many suitable properties to purchase while your house sits on the market with no showings.

And, chances are, when you end up selling your property and find a new property to buy, the closing dates rarely match up perfectly.

Different lenders have different port periods

Understanding that different lenders have different port periods is where the fine print in the mortgage documents comes into play. Did you know that depending on the lender, the time you have to port your mortgage can range from one day to six months? So if it’s one day, your lawyer will have to close both the sale of your property and the purchase of your new property on the same day, or the port won’t work.

Or, with a more extended port period, you run the risk of selling your house with the intention of porting the mortgage, only to not be able to find a suitable property to buy.

So while the idea of porting your mortgage can seem like a good idea, and it might even make sense if you have a low rate that you want to carry over to a property of similar value, it’s always a good idea to get professional mortgage advice and look at all your options.

While porting your mortgage is a nice feature to have because it provides you with options, please understand that it is not a guarantee that you’ll be able to swap out properties and keep making the same payments. There’s a lot to know.

If you’re looking to sell your existing property and buy a new one, please connect anytime. It would be a pleasure to walk you through the process and help you consider all your options, including a port if that makes the most sense!

Fixed or Variable Mortgage? How Canada’s Economic Shifts Could Impact Your Decision

Mon, 24 Feb 2025 21:55:49 GMT

Navigating Mortgage Rates in an Uncertain Market

With Canada’s economy facing trade tensions, inflation concerns, and a potential slowdown, mortgage rates are in flux. Borrowers must weigh the risks and rewards of fixed vs. variable rates to make the best decision for their financial future.

What’s Driving Mortgage Rate Changes?

Several key factors are shaping the mortgage landscape:

Trade Uncertainty – New tariffs between the U.S. and Canada could push inflation higher, impacting bond yields and fixed mortgage rates.

Inflation Pressures – If inflation stays above the Bank of Canada’s 2% target, rate cuts may be delayed, keeping borrowing costs higher.

Recession Concerns – If economic growth slows, the BoC could cut rates, making variable-rate mortgages more attractive.

Fixed vs. Variable: Which One is Right for You?

�� Fixed-Rate Mortgages:
✅ Predictable payments for peace of mind
✅ Protection from future rate hikes
❌ Typically higher initial rates
❌ Costly penalties if you break your term early

�� Variable-Rate Mortgages:
✅ Lower starting rates with potential for savings
✅ Easier to break or refinance if needed
❌ Payments can fluctuate with rate changes
❌ Higher risk if inflation pushes rates upward

What’s the Best Move Right Now?

✔ Go Fixed if you want stability and protection from rising rates.
✔ Go Variable if you believe rates will drop and you can handle some risk.
✔ Consider a Hybrid Mortgage to get the best of both worlds.

Stay Flexible & Informed

Mortgage rates are unpredictable, and the best choice today may change in a few months. Working with a mortgage professional can help you navigate these shifts and secure the best deal for your financial future.

Need expert guidance? Reach out today to discuss your options!

Why Downpayment Source Matters

Tue, 11 Feb 2025 09:00:01 GMT

If you’re looking to purchase a property, although you might not think it matters too much, the source of your downpayment means a great deal to the lender. Let’s discuss the lender requirements, what your downpayment tells the lender about your financial situation, a how downpayment helps establish the mortgage loan to value.

Anti-money laundering

Lenders care about your downpayment source because, legally, they have to. To prevent money laundering, lenders have to document the source of the downpayment on every home purchase.

Acceptable forms of downpayment are money from your resources, borrowed funds through an insured program called the FlexDown, or money you receive as a gift from an immediate family member.

To prove the funds are from your resources and not laundered money from the proceeds of crime, you’ll be required to provide bank statements showing the money has been in your account for at least 90 days or that you’ve accumulated the funds through payroll deposits or other acceptable means.

Now, if you’re borrowing all or part of your downpayment, you’ll need to include the costs of carrying the payments on the borrowed downpayment in your debt service ratios. If you’re the recipient of a gift from a direct family member, you’ll need to provide a signed gift letter indicating that the funds are a true gift and have no schedule for repayment. From there, you’ll need to show the money deposit into your account.

Financial suitability

Lenders care about the source of the downpayment because it is an indicator that you are financially able to purchase the property.

Showing the lender that your downpayment is coming from your resources is the best. This demonstrates that you have positive cash flow and that you’re able to save money and manage your finances in a way that indicates you’ll most likely make your mortgage payments on time. If your downpayment is borrowed or from a gift, there’s a chance that they’ll want to scrutinize the rest of your application more closely.

The bigger your downpayment, the better, well, as far as the lender is concerned. The way they see it, there is a direct correlation between how much money you have as equity to the likelihood you will or won’t default on their mortgage. Essentially, the more equity you have, the less likely you will walk away from the mortgage, which lessens their risk.

Downpayment establishes the loan to value (LTV)

Thirdly, your downpayment establishes the loan to value ratio. The loan to value ratio or LTV is the percentage of the property’s value compared to the mortgage amount. In Canada, a lender cannot lend more than 95% of a property’s value. So, if you’re buying a home for $400k, the lender can lend $380k, and you’re responsible for coming up with 5%, $ 20k in this situation.

But you might be asking yourself, how does the source of the downpayment impact LTV? Great question, and to answer this, we have to look at how to establish property value. Simply put, something is worth what someone is willing to pay for it and what someone is willing to sell it for. Of course, within reason, having no external factors coming into play. When dealing with real estate, an appraisal of the property will include comparisons of what other people have agreed to pay for similar properties in the past.

You’ll often hear of situations where buyers and sellers try to inflate the sale price to help finalize the transaction artificially. Any scenario where the buyer isn’t coming up with all of the money for the downpayment, independent of the seller, impacts the LTV.

All details of a real estate transaction purchase and sale have to be disclosed to the lender. If there’s any money transferring behind the scenes, this impacts the LTV, and the lender won’t proceed with financing. Non-disclosure to the lender is mortgage fraud.

So there you have it; hopefully, this provides context to why lenders ask for documents to prove the source of your downpayment. If you’d like to talk about mortgage financing, please connect anytime; it would be a pleasure to work with you.

Understanding a Spousal Buyout Mortgage

Tue, 28 Jan 2025 09:00:00 GMT

If you’re going through or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property and buy out your ex-spouse.

If you’re like most people, your property is your most significant asset and is where most of your equity is tied up. If this is the case, it’s possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program.

It’s called the spousal buyout program. Here are some of the common questions people have about the program.

Is a finalized separation agreement required?

Yes. To qualify, you’ll need to provide the lender with a copy of the signed separation agreement, which clearly outlines asset allocation.

Can the net proceeds be used for home renovations or pay off loans?

No. The net proceeds can only buy out the other owner’s share of equity and/or pay off joint debt as explicitly agreed upon in the finalized separation agreement.

What is the maximum amount that you can access through the program?

The maximum equity you can withdraw is the amount agreed upon in the separation agreement to buy out the other owner’s share of the property and/or retire joint debts (if any), not exceeding 95% loan to value.

What is the maximum permitted loan to value?

The maximum loan to value is the lesser of 95% or the remaining mortgage + the equity required to buy out other owner and/or pay off joint debt (which, in some cases, can total < 95% LTV. The property must be the primary owner-occupied residence.

Do all parties have to be on title?

Yes. All parties to the transaction have to be current registered owners on title. Your solicitor will be required to confirm this with a title search.

Do the parties have to be a married or common-law couple?

No. Not only will the spousal buyout program support married and common-law couples who are divorcing or separating, but it’s also designed for friends or siblings who need an exit from a mortgage. The lender can consider this on an exception basis with insurer approval. In this case, as there won’t be a separation agreement, a standard clause will need to be included in the purchase contract to outline the buyout.

Is a full appraisal required?

Yes. When considering this type of mortgage, a physical appraisal of the property is required as part of the necessary documents to finalize the transaction.

While this is a good start to answering some of the questions you might have about getting a mortgage to help you through a marital breakdown, it’s certainly not comprehensive. When you work with an independent mortgage professional, not only do you get a choice between lenders and considerably more mortgage options, but you get the unbiased mortgage advice to ensure you understand all your options and get the right mortgage for you.

Please connect anytime; it would be a pleasure to discuss your needs directly and provide you with options to help you secure the best mortgage financing available. Also, please be assured that all communication will be held in the strictest of confidence.

Boosting Mortgage Approval Chances After Denial

Mon, 27 Jan 2025 23:46:31 GMT

Getting turned down for a mortgage can feel like a major setback, but it doesn't have to be the end of your homeownership journey. Understanding why your application was rejected is the first crucial step in moving forward. Lenders typically deny applications due to common issues like credit score problems, inadequate income, or high debt levels.

Once you know where you stand, it’s time to roll up your sleeves and work on strengthening your financial profile. This involves not just addressing credit concerns but also getting a handle on your overall finances. Crafting a realistic budget and sticking to it can help you present a more appealing picture to lenders when you reapply.

Besides banks, several other avenues can lead you towards securing a mortgage. Non-traditional lenders and government programs in Canada offer real opportunities for those willing to explore them. Focusing on these options can open doors that might seem closed for now, allowing you to take proactive steps toward owning your dream home.

Understanding Your Mortgage Denial

Facing a denial can be discouraging, but understanding the reasons behind it is key to making improvements. Common issues that lead to mortgage rejections include poor credit scores, insufficient income, and high debt levels. Credit scores play a significant role in how lenders perceive risk. A low score can indicate poor payment history or excessive debt usage, both red flags for lenders. Similarly, if your income doesn't meet the lender's threshold or if you have large outstanding debts, your application can be jeopardized.

Reviewing feedback from the lender is vital. This feedback provides insight into specific areas that need attention. Maybe it’s about increasing your income or tackling some debts. Lenders may provide advice or indicate what changes might make your application more favourable in the future. Understanding their criteria better equips you to address them effectively.

Lenders often look at additional factors like employment stability and down payment size. Addressing these areas can create a stronger profile. Understanding where you fell short matters because it directs your efforts towards the right solutions. By focusing on these specific areas, you can prepare yourself better for future applications, helping you get closer to securing the mortgage you need.

Strengthening Your Financial Profile

Improving your financial profile is essential for increasing your approval odds. Start by enhancing your credit score. Manage this by paying bills on time, reducing your outstanding balances, and refraining from opening new credit accounts right before applying again. Regularly check your credit report for errors, as correcting mistakes can lead to a quick score boost.

Another vital strategy is reducing your debt. High debts make lenders wary, so focus on paying down credit cards and loans. Create a repayment plan that prioritizes higher interest debts first. A lower debt-to-income ratio can significantly impact your application's success positively.

Organizing your financial documents is equally important. Ensure you have recent pay stubs, bank statements, and tax returns readily available. This organization showcases your financial stability and readiness to potential lenders.

Additionally, setting up a realistic budget can help you manage your finances better. Identify your essential expenses, cut back on unnecessary spending, and allocate more towards savings and debt repayment. Keeping a budget not only assists in financial management but also demonstrates to lenders that you have control over your finances.

Improving these aspects of your profile can strengthen your application considerably, making you a more attractive candidate for mortgage lenders.

Exploring Alternative Lending Options

If traditional banks are not an option, non-traditional lenders can serve as a valuable alternative. Credit unions, private lenders, and online mortgage companies often provide more flexible lending criteria. Credit unions, for example, are member-focused organizations that may offer personalized services and competitive rates. They might look at your overall financial picture rather than sticking strictly to credit scores.

Private lenders are another option, usually catering to those with unique financial situations. These lenders often approve applications quicker and with fewer requirements. However, it's important to note that private loans may come with higher interest rates. Online mortgage companies streamline their processes through digital platforms, making application procedures more straightforward and potentially faster.

When choosing non-traditional lenders, understanding the differences is crucial. While banks may offer lower rates, non-traditional lenders can provide more leeway in approval processes. Consider the interest rates, fees, and terms carefully. While these alternative lenders can increase your chances of approval, it’s essential to compare all your choices and ensure the offer benefits your specific needs.

Utilizing Supportive Programs and Resources

The Canadian government offers several programs designed to support homebuyers, providing another avenue to explore after a mortgage denial. The First-Time Home Buyer Incentive helps Canadians lower their monthly payments without interest, making it easier to afford a home. Eligible buyers can apply for a shared-equity mortgage, where the government contributes a portion of the home’s purchase price.

Another helpful program is the Home Buyers' Plan, which allows Canadians to withdraw from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home. This program offers an opportunity to make a down payment more manageable without the added burden of long-term financial strain.

Working with mortgage experts can further enhance your strategy for approval. Professionals can guide you through the intricacies of these programs and find the best fit for your situation. They can also assist in preparing your financial profile to meet necessary requirements, ensuring a smoother application process.

Navigating a mortgage denial requires persistence and creativity. By understanding the reasons for rejection, improving your financial profile, exploring alternative lenders, and utilizing supportive programs, you can significantly improve your chances of success. Each step you take brings you closer to achieving your goal of homeownership.

At the Joel Olson Mortgage Team, we understand that mortgage solutions aren't one-size-fits-all. Our experienced mortgage brokers in BC, Canada , are dedicated to helping you find the best path forward. Whether you're seeking to improve your credit, explore new lenders, or capitalize on government programs, we're here to support your journey. Contact us today and let us help you turn denials into opportunities on your path to owning a home.

Key Documents for Mortgage Reapplication Success

Mon, 20 Jan 2025 22:24:16 GMT

Getting turned down for a mortgage can be disheartening, but it's important not to lose hope. One common reason for rejection is not having all the necessary documents or information needed to satisfy lenders' requirements. Understanding what went wrong is the first step toward improving your application.

When reapplying, strong and complete documentation can make a huge difference. Having the right papers ready shows lenders that you are prepared and serious about securing a mortgage. These documents prove your financial situation and help build confidence that you can manage mortgage payments.

With a bit of organization and guidance, you can turn a rejection into an opportunity to present a more compelling application. Gathering the essential documents and getting them in order can put you in a better position to succeed. Don't overlook the power of well-prepared paperwork in making a fresh start towards your homeownership dreams.

Understanding Why Applications Get Rejected

Facing a mortgage rejection can feel overwhelming, especially when you're keen to move forward on buying a home. One of the main reasons applications are turned down relates to insufficient documentation. Lenders require detailed proof of your financial status to verify your ability to repay the loan. Missing or incomplete documents can raise red flags, causing hesitation to approve the application. It's crucial to supply all necessary paperwork, ensuring everything is up to date and accurate.

Discrepancies in financial records are another common stumbling block. Inconsistent information between what you report and what’s on your credit report or tax returns can create doubt. Lenders need confidence in their assessments and don't want surprises once they’ve done their review. Even minor differences, like inconsistent income figures or outdated accounts, can result in a decline.

Gathering thorough documentation is key to persuading lenders to take a second look. This includes a comprehensive review of your financial documents to spot and correct any errors before resubmission. Presenting detailed and consistent information helps build a trustworthy profile, showing you are committed to securing a mortgage responsibly. By addressing these issues, you increase the odds of getting the green light from lenders.

Essential Documents to Strengthen Reapplications

When preparing to resubmit your mortgage application, having the right documents in hand can make all the difference. Key documents include:

1. Income Verification: Proof of stable income is important. Gather recent pay stubs, employment letters, or contracts if you're self-employed. This shows lenders you have a steady cash flow needed to meet payment obligations.

2. Tax Returns: Provide copies of your tax returns for at least the last two years. This gives lenders a clear picture of your financial history, revealing income patterns and stability over time.

3. Credit History: Up-to-date credit reports help lenders assess your borrowing habits. A strong credit profile can highlight your credibility and discipline in managing credit responsibly.

4. Bank Statements: Account statements from the last several months can demonstrate your financial health. Lenders will look at these to ensure there aren't any worrying signs, like frequent overdrafts.

5. Debt Information: A detailed list of current debts, including loans and credit cards, is vital. This helps lenders determine your debt-to-income ratio, a crucial factor in mortgage decisions.

These documents serve to prove your financial stability and trustworthiness to potential lenders. Having this evidence doesn’t just show you're prepared; it also bolsters your application by making a strong case for your ability to manage mortgage obligations. By being thorough and organized, you set yourself up as a reliable candidate ready to take on homeownership responsibly.

Tips for Organizing and Presenting Your Documents

A well-organized set of documents can make a huge difference when reapplying for a mortgage. Start by creating a checklist of all the essential documents mentioned earlier—income verification, tax returns, credit history, bank statements, and debt information. This helps ensure that you don't miss anything critical. Having a clear plan for gathering and organizing these documents prevents last-minute scrambles and allows for a thorough review.

When compiling your application, aim for clarity and consistency. Arrange documents in a logical order and, if needed, label them for easy reference. Make sure each document is free of errors and shows consistent information across various forms. This helps lenders get a clear view of your financial picture without confusion.

Presenting your documents neatly in a folder or binder can also create a positive impression. It shows lenders that you respect their process and are serious about your application. Remember, the better organized your documents, the easier it is for lenders to see how well you meet their criteria. Good presentation can reinforce the image of a responsible and prepared applicant.

Seeking Professional Guidance for Document Preparation

Navigating the mortgage process can be complex, especially if you've faced rejection before. Seeking help from mortgage professionals or credit counsellors can be extremely valuable. These experts offer insights into what lenders expect and how best to present your financial situation.

Consulting with a professional can help identify gaps or weaknesses in your documentation. They can provide advice tailored to your specific financial circumstances, ensuring you present the strongest application possible. With their guidance, you can learn about adjustments or additional documents you might not have considered, which add credibility to your reapplication.

Professional guidance can help demystify the mortgage process, making it less intimidating and more manageable. They can also keep you updated on any changes in lending practices and advise on strategies to improve your approval chances. Investing time in seeking expert advice can make all the difference between repeated rejection and success in securing a mortgage.

Taking the steps to understand and fix the reasons behind a mortgage rejection can lead to success in future applications. By organizing and presenting detailed and accurate documentation, you set yourself up as a serious contender in the eyes of lenders. Enlisting the help of mortgage experts further strengthens this position, providing both support and expertise to guide you.

Every effort to enhance your application reflects a commitment to achieving your homeownership dreams. With patience and persistence, preparing your documents the right way can turn previous setbacks into stepping stones for success. Start fresh, but wiser, as you aim for that coveted mortgage approval.

No need to navigate these challenges alone. Reach out to the Joel Olson Mortgage Team for expert advice and personalized guidance. Let us help you organize your financial documents and strengthen your next application, making your journey to homeownership a reality.

Connect with us today and take the next step towards mortgage home financing and secure your dream home.

Impact of Credit Scores on Mortgage Approvals in Canada

Fri, 17 Jan 2025 14:33:27 GMT

Getting approved for a mortgage can be a big step towards owning a home. But did you know that your credit score plays a huge part in this process? A credit score is like a report card for your financial behaviour, and lenders use it to decide if you’re a good risk. In Canada, this score can affect not just if you get approved but also the kind of interest rates and terms offered to you.

Understanding Credit Scores and Their Components

A credit score is a number that shows how reliable someone is with money. In Canada, your credit score can range from 300 to 900, and it's calculated using several factors. Payment history is the most significant part; it tracks whether you pay your bills on time. If you've been late or missed payments, it could lower your score. Another important factor is credit utilization, which looks at how much credit you use compared to how much you have available. If you max out your credit cards, it might hurt your score. The length of your credit history also counts. The longer you've had credit, the better it looks, as it gives more data for lenders to examine.

Credit scores fall into different ranges that lenders use to decide your creditworthiness. A score between 800 and 900 is excellent and is likely to get you the best financial offers. Scores from 720 to 799 are considered very good, while 650 to 719 falls into the good category. If your score is between 600 and 649, it's fair, but it might result in higher interest rates. A score under 600 is seen as poor, and lenders might view you as a higher risk, making it challenging to get approved for a mortgage.

Why Credit Scores Matter for Mortgage Approvals

Credit scores are crucial when you're applying for a mortgage. Lenders look at these scores because they help to assess risk. A higher score usually means you have a strong track record of managing your finances. Lenders feel more confident lending money to those with high scores because they are less likely to default on their loans. On the flip side, a lower score could signal potential issues in paying back borrowed money.

These scores do not just impact approval. They also influence the terms of your loan, including the interest rate and other conditions. A high credit score can help secure a lower interest rate, which means you'll pay less money over time. It might also allow for better mortgage terms, like a smaller down payment or more flexibility. Conversely, a lower score might mean higher rates and stricter terms, which can make the loan more expensive in the long run.

By understanding how your credit score affects mortgage approvals, you can be more prepared to work on areas that need improvement, putting you in a stronger position to receive favourable loan terms when you apply.

Improving Your Credit Score for Better Approval Odds

Boosting your credit score before applying for a mortgage can greatly enhance your chances of approval. Here are some effective strategies to consider. First, paying bills on time is crucial as payment history makes up a significant portion of your credit score. Setting up automatic payments or reminders can help ensure you never miss a due date. Reducing debt is another vital step. Aim to lower your credit card balances and avoid taking on new debt, which can improve your credit utilization ratio.

Regularly check your credit report for errors. Mistakes like incorrect account information or outdated balances can negatively impact your score. If you spot any inaccuracies, contact the credit bureau to have them corrected. It’s also wise to limit hard inquiries into your credit report. Each application for new credit can ding your score a bit, so try not to open too many new accounts in a short time.

When should you start working on your credit? Ideally, potential homebuyers should focus on their credit score at least six months to a year before applying for a mortgage. This timeline allows enough room to make meaningful improvements and see results reflected in your score. Remember, a healthy credit score not only improves approval chances but can also secure better loan terms.

Exploring Mortgage Options With Challenging Credit

Having a low credit score doesn’t mean your dream of owning a home is out of reach. There are alternative mortgage options to explore if traditional lenders have turned you down. One option is to work with flexible lenders who focus more on your income and current financial situation rather than solely on your credit score. These lenders may offer alternative loans designed for individuals with less-than-perfect credit.

Government programs can also be a lifeline. Programs like the Canada Mortgage and Housing Corporation (CMHC) offer mortgage loan insurance which allows you to buy a home with a smaller down payment, making homeownership more accessible. Additionally, some provinces offer support programs specifically for first-time buyers or those with moderate income, which can be helpful when dealing with credit challenges.

However, it’s essential to weigh the pros and cons before proceeding. While these alternatives can provide a path to homeownership, they often come with higher interest rates or stricter terms. Make sure to research and fully understand the conditions before committing. A mortgage broker can be an invaluable resource for advice tailored to your unique situation, guiding you to the best option available.

Improving your credit score and exploring all available options are critical steps in the mortgage approval process, especially if you're facing challenges. A good credit score not only boosts your approval chances but also opens the door to better interest rates and terms, saving you money over the life of your loan. By understanding the components of a credit score and taking proactive steps to improve it, you position yourself as a strong candidate for lenders.

If you're looking for personalized help to navigate bad credit mortgage loans in Canada , the Joel Olson Mortgage Team is here to assist you. With expertise in Canadian mortgage solutions, we're ready to guide you through the process, addressing any challenges along the way. Reach out to us to explore your options and find the best path to securing your dream home, even if other lenders have turned you down!

Construction Assignments

Tue, 14 Jan 2025 09:00:01 GMT

One of the benefits of working with an independent mortgage professional is having lots of great financing options! Rather than dealing with a single lender with one set of products, independent mortgage professionals work with multiple lenders who offer a wide selection of mortgage financing options that provide more choice.

Increased choice in mortgage products is beneficial when your situation isn’t “normal,” or you don’t quite fit the profile of a standard buyer. Purchasing a new construction home through an assignment contract would be a great example of this.

Purchasing a new construction home through an assignment contract can be tricky as not every lender wants the added perceived risk of dealing with this type of transaction. Most of these lenders won’t come out and say it; instead, they add a significant list of qualifying conditions to make the process harder.

The good news is, there are lenders available exclusively through the broker channel that have favourable policies for assignment purchases.

Here are some of the highlights:

All standard purchase qualifications apply, including applicable income verification, established credit, and required downpayment
Assignments can be at the original purchase price or current market value
Minimum 620 beacon score with no previous bankruptcies or consumer proposals
The full downpayment must come from the purchaser and not include any incentives from the seller.

As far as documentation goes, the lender will want to see the original purchase agreement signed by all parties, the MLS listing, the assignment agreement signed by the builder, the original purchaser, and the new buyer. The lender will also want to see the side agreement between the original purchaser and the new buyer, including the amended purchase price. The lender will want to substantiate the value through a full appraisal.

Now, as every situation is different, this list of conditions is in no way exhaustive but meant to show that assigning a new construction purchase contract is doable while highlighting some of the terms necessary to secure financing.

If you’re looking to purchase new construction through an assignment contract, or if you’d like to discuss purchasing a home through traditional means, please connect anytime! It would be a pleasure to outline the mortgage products on the market that won’t limit your financing options!

Mortgage Insurance Rule Changes Enable Homeowners to Add Secondary Suites

Fri, 03 Jan 2025 00:02:41 GMT

As housing affordability challenges persist across Canada, innovative solutions are reshaping the way homeowners can contribute to housing supply. Starting January 15, 2025, new mortgage insurance rule changes will allow Canadian homeowners to access insured refinancing options to create secondary suites, such as basement apartments or laneway homes.

This move, announced in Budget 2024 and detailed by the Department of Finance Canada, is part of a broader strategy to increase housing density and improve affordability while offering homeowners the chance to generate additional income.

Why These Changes Matter

Historically, converting extra space into rental units has been both costly and mired in municipal red tape. Recent zoning reforms across Canada’s major cities, driven by Housing Accelerator Fund agreements, are reducing these barriers. The creation of secondary suites not only expands housing supply but also provides financial benefits to homeowners, such as offering seniors additional income to support aging in place.

Key Parameters for the New Rules

The new mortgage insurance program is designed to enable homeowners to build legal, self-contained secondary suites that comply with municipal requirements.

Here are the essential details:

Eligibility Requirements

Homeowners must already own the property.

The homeowner or a close relative must occupy one of the existing units.

Additional units must not be used as short-term rentals.

Project Specifications

New units must be fully self-contained with separate entrances (e.g., basement suites, laneway homes).

Up to four total dwelling units are allowed, including existing units.

Financial Parameters

The “as improved” property value must be less than $2 million.

Homeowners can refinance up to 90% of the property’s value, including the enhanced value from secondary suites.

The maximum amortization period is 30 years.

Additional financing must not exceed the project’s costs.

When Do These Rules Take Effect?

Starting January 15, 2025, lenders can submit applications for mortgage insurance under these updated parameters. This applies to all eligible properties across Canada, provided the new units align with municipal zoning requirements.

What This Means for Homeowners

For homeowners with underutilized space, such as basements or detached garages, this new program offers an opportunity to increase property value and create a source of long-term income. By building legal secondary suites, homeowners can contribute to Canada’s rental housing market while gaining financial security.

A Step Toward Housing Solutions

As housing supply remains a pressing issue, these mortgage insurance changes reflect a commitment to practical, homeowner-driven solutions. Whether you’re a senior looking to age in place or a family seeking to maximize your property’s potential, these changes represent an exciting opportunity to invest in your home and your community.

Stay informed and explore your options with your lender to determine if this program is right for you. The path to unlocking your property’s potential begins in 2025.

Understanding Payment Frequency

Tue, 31 Dec 2024 09:00:00 GMT

You’ve most likely heard that there are two certainties in life; death and taxes. Well, as it relates to your mortgage, the single certainty is that you will pay back what you borrow, plus interest. With that said, the frequency of how often you make payments to the lender is somewhat up to you!

The following looks at the different types of payment frequencies and how they impact your mortgage.

Here are the six payment frequency types

Monthly payments – 12 payments per year
Semi-Monthly payments – 24 payments per year
Bi-weekly payments – 26 payments per year
Weekly payments – 52 payments per year
Accelerated bi-weekly payments – 26 payments per year
Accelerated weekly payments – 52 payments per year

Options one through four are straightforward and designed to match your payment frequency with your employer. So if you get paid monthly, it makes sense to arrange your mortgage payments to come out a few days after payday. If you get paid every second Friday, it might make sense to have your mortgage payments match your payday.

However, options five and six have that word accelerated before the payment frequency. Accelerated bi-weekly and accelerated weekly payments accelerate how fast you pay down your mortgage. Choosing the accelerated option allows you to lower your overall cost of borrowing on autopilot. Here’s how it works.

With the accelerated bi-weekly payment frequency, you make 26 payments in the year. Instead of dividing the total annual payment by 26 payments, you divide the total yearly payment by 24 payments as if you set the payments as semi-monthly. Then you make 26 payments on the bi-weekly frequency at the higher amount.

So let’s use a $1000 payment as the example:

Monthly payments formula: $1000/1 with 12 payments per year. A payment of $1000 is made once per month for a total of $12,000 paid per year.

Semi-monthly formula: $1000/2 with 24 payments per year. A payment of $500 is paid twice per month for a total of $12,000 paid per year.

Bi-weekly formula: $1000 x 12 / 26 with 26 payments per year. A payment of $461.54 is made every second week for a total of $12,000 paid per year.

Accelerated bi-weekly formula: $1000/2 with 26 payments per year. A payment of $500 is made every second week for a total of $13,000 paid per year.

You see, by making the accelerated bi-weekly payments, it’s like you end up making two extra payments each year. By making a higher payment amount, you reduce your mortgage principal, which saves interest on the entire life of your mortgage.

The payments for accelerated weekly payments work the same way. It’s just that you’d be making 52 payments a year instead of 26.

By choosing an accelerated option for your payment frequency, you lower the overall cost of borrowing by making small extra payments as part of your regular payment schedule.

Now, exactly how much you’ll save over the life of your mortgage is hard to nail down. Calculations are hard to do because of the many variables; mortgages come with different amortization periods and terms with varying interest rates along the way. However, an accelerated bi-weekly payment schedule could reduce your amortization by up to three years if maintained throughout the life of your mortgage.

If you’d like to look at some of the numbers as they relate to you and your mortgage, please don’t hesitate to connect anytime; it would be a pleasure to work with you.

Protect Yourself at Renewal

Tue, 17 Dec 2024 09:00:00 GMT

It’s a commonly held belief that if you’ve made your mortgage payments on time throughout the entirety of your mortgage term, that the lender is somehow obligated to renew your mortgage.

The truth is, a lender is never under any obligation to renew your mortgage. When you sign a mortgage contract, the lender draws it up for a defined time, so when that term comes to an end, the lender has every right to call the loan.

Now, granted, most lenders are happy to renew your mortgage, but several factors could come into play to prevent this from happening, including the following:

You’ve missed mortgage payments over the term.
The lender becomes aware that you’ve recently claimed bankruptcy.
The lender becomes aware that you’re going through a separation or divorce.
The lender becomes aware that you lost your job.
Someone on the initial mortgage contract has passed away.
The lender no longer likes the economic climate and/or geographic location of your property.
The lender is no longer licensed to lend money in Canada.

Again, while most lenders are happy to renew your mortgage at the end of the term, you need to understand that they are not under any obligation to do so.

So how do you protect yourself?

Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you.

When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options.

Also, dealing with an independent mortgage professional instead of directly with the lender ensures you have someone working for you, on your team, instead of seeking guidance from someone with the lender’s best interest in mind.

So if you have a mortgage that’s up for renewal, whether you’re being offered a renewal or not, the best plan of action is to protect yourself by working with an independent mortgage professional. Please connect anytime; it would be a pleasure to work with you!

The Property Matters in Mortgage Financing

Tue, 03 Dec 2024 09:00:01 GMT

When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, if you don't have a plan, you might get some pushback from the lender.

The property matters to the lender because they hold it as collateral if you default on your mortgage. As such, you can expect that a lender will make every effort to ensure that any property they finance is in good repair. Because in the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can sell the property quickly and recoup their money.

So when assessing the property as part of any mortgage transaction, an appraisal is always required to establish value. If your mortgage requires default mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty, they’ll likely use an automated system to appraise the property where the assessment happens online. A physical appraisal is required for conventional mortgage applications, which means an appraiser will assess the property on-site.

So why is this important to know? Well, because even if you have a great job, excellent credit, and money in the bank, you shouldn’t assume that you’ll be guaranteed mortgage financing. A preapproval can only take you so far. Once the mortgage process has started, the lender will always assess the property you’re looking to purchase. Understanding this ahead of time prevents misunderstandings and will bring clarity to the mortgage process.

Practically applied, if you’re attempting to buy a property in a hot housing market and you go in with an offer without a condition of financing, once the appraisal is complete, if the lender isn’t satisfied with the state or value of the property, you could lose your deposit.

Now, what happens if you’d like to purchase a property that isn’t in the best condition? Being proactive includes knowing that there is a purchase plus improvements program that can allow you to buy a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, there’s a process to follow, but it’s very doable.

So if you have any questions about financing your next property or potentially using a purchase plus improvements to buy a property that needs a little work, please connect anytime. It would be a pleasure to walk you through the process.

Getting a Mortgage While on Parental Leave

Tue, 19 Nov 2024 09:00:00 GMT

Chances are if the title of this article piqued your interest enough to get you here, your family is probably growing. Congratulations!

If you’ve thought now is the time to find a new property to accommodate your growing family, but you’re unsure how your parental leave will impact your ability to get a mortgage, you’ve come to the right place!

Here’s how it works. When you work with an independent mortgage professional, it won’t be a problem to qualify your income on a mortgage application while on parental leave, as long as you have documentation proving that you have guaranteed employment when you return to work.

A word of caution, if you walk into your local bank to look for a mortgage and you disclose that you’re currently collecting parental leave, there’s a chance they’ll only allow you to use that income to qualify. This reduction in income isn’t ideal because at 55% of your previous income up to $595/week, you won’t be eligible to borrow as much, limiting your options.

The advantage of working with an independent mortgage professional is choice. You have a choice between lenders and mortgage products, including lenders who use 100% of your return-to-work income.

To qualify, you’ll need an employment letter from your current employer that states the following:

Your employer’s name preferably on the company letterhead
Your position
Your initial start date to ensure you’ve passed any probationary period
Your scheduled return to work date
Your guaranteed salary

For a lender to feel confident about your ability to cover your mortgage payments, they want to see that you have a position waiting for you once your parental leave is over. You might also be required to provide a history of your income for the past couple of years, but that is typical of mortgage financing.

Whether you intend to return to work after your parental leave is over or not, once the mortgage is in place, what you decide to do is entirely up to you. Mortgage qualification requires only that you have a position waiting for you.

If you have any questions about this or anything else mortgage-related, please connect anytime. It would be a pleasure to work with you.

Bridge Financing and Deposit Lending

Tue, 05 Nov 2024 09:00:01 GMT

Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea.

Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in.

But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in.

Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying.

So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home.

Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available.

A firm sale is the key to securing bridge financing and a deposit loan.

So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Getting a Mortgage After Bankruptcy

Tue, 22 Oct 2024 08:00:00 GMT

Sometimes life throws you a financial curveball. Bankruptcy and consumer proposals happen. It doesn’t mean your life is over, and it doesn’t mean you won’t ever qualify for a mortgage again.

The key to financial success here is getting things under control as quickly as possible. You must demonstrate to the potential lenders that what happened in the past won’t happen again in the future.

So if you’re thinking about getting a mortgage post-bankruptcy, lenders will want answers to the following questions:

How long have you been discharged?

Securing a mortgage will be dependent on how long it has been since you were discharged from your bankruptcy or consumer proposal. Most lenders consider the discharge date on both to be your new ground zero.

And while there is no legally defined waiting period for when you can apply for a new mortgage post-bankruptcy, what lenders will assess is how you’re managing your finances after your financial troubles.

Have you established new credit?

You can show lenders that they can trust you after bankruptcy by establishing new credit and managing that credit flawlessly. So as soon as you’ve been discharged, it’s a good idea to get a secured credit card and start rebuilding your credit score.

To be considered completely established, you’ll want to have two years of credit history on two trade lines with a credit limit of $2500 on each trade line. You’ll also want to make sure that you have no late or missed payments.

How much do you have available for a downpayment?

The more money you have to put towards purchasing a property, or the more equity you have in your property in the case of a refinance, the better your chances of getting a mortgage. The more money you bring to the table, the more comfortable a lender will feel about the risk they take of losing their investment should you run into future financial difficulty.

What is your total debt service ratio?

Another consideration lenders will look at is how much money you make compared to the cost of making your mortgage payments. So it probably goes without saying that the more money you make compared to the amount you want to borrow, the better.

Conventional or insured financing.

If you’re looking to get the best mortgage products available, here are some of the things a lender will want to see:

You’ve been discharged for at least two years plus a day.
You’ve established your credit (as listed above).
You have at least 5% down for the first $500k of the purchase and 10% down for anything over $500k.
If you don’t have a 20% downpayment, you will be required to secure mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty.
The cost to service the property and all your debts don’t exceed 44% of your gross income.

Alternative lending

As independent mortgage professionals, our job is to provide solutions and strategies for our clients. As such, in addition to dealing with many traditional lending institutions, we also have access to lenders who specialize in working with clients whose financial situation isn't all that straightforward. These private lenders offer alternative lending solutions that consider the overall strength of your mortgage application.

While you won’t qualify for the best rates and terms on the market by going with an alternative lender, if you’re looking for options, you might find that alternative lending is a very reasonable solution for you. Alternative lending isn’t for everyone, but it’s an excellent solution for some, especially if you’ve gone through a bankruptcy or consumer proposal and need a mortgage before fully establishing your credit.

Get in touch anytime.

So whether you’re looking for a plan to help you qualify for a mortgage with the most favourable terms or if you need something more immediate. Please connect anytime. It would be a pleasure to outline your options and work on a plan to get you a mortgage.

New 2025 Program Allows Homeowners to Refinance Up to 90% for Secondary Suites: What You Need to Know

Fri, 18 Oct 2024 23:07:27 GMT

On October 8, 2024, the government announced a new program that will take effect on January 15, 2025, allowing homeowners to refinance up to 90% of their home’s value to create secondary suites. This is a significant increase from the current refinancing limit of 80%. The program aims to provide homeowners with more flexibility to unlock their home equity and add additional legal units like basement suites or laneway homes, provided they meet municipal zoning requirements and are not used for short-term rentals.

The program comes with specific guidelines, outlined by CMHC (Canada Mortgage and Housing Corporation), that include:

Eligibility: Homeowners must already own their property, live in one of the existing units, and plan to add additional fully self-contained suites.
Refinancing Details: Homeowners can refinance up to 90% of the property's value, including the value added by the new units. The maximum property value, once the new units are built, must not exceed $2 million.
Loan Parameters: The loan-to-value limit will be 90%, and the maximum amortization period is 30 years. Any additional financing must not exceed project costs.

To give an example, under this new program, if a home is valued at $800,000, homeowners could now refinance up to $720,000 for building a secondary suite—$80,000 more than the previous limit of $640,000.

This program could be particularly beneficial for homeowners who have recently purchased their property and built up a moderate amount of equity, offering them an opportunity to create an income-generating suite or expand their home without needing to sell. As housing affordability continues to be a pressing issue in many parts of Canada, adding secondary suites could also contribute to easing the rental supply shortage.

While this program represents a significant step forward in unlocking home equity for homeowners, we are still awaiting specific guidelines from lenders. These rules will clarify how lenders will approach refinancing applications under this program. Stay tuned for further updates as more information becomes available from financial institutions.

This program is expected to spark significant interest, particularly from younger homeowners or those with growing families, as it offers a pathway to enhance both living space and long-term financial stability. Homeowners looking to leverage this new opportunity should consult with mortgage experts to fully understand the potential benefits and ensure they are making informed decisions.

If you're interested in how this program could benefit you or want to explore refinancing options to add a secondary suite, get in touch with a mortgage professional today.

Mortgage Options for Older Canadians

Tue, 08 Oct 2024 08:00:00 GMT

Although it’s ideal to have your mortgage paid off by the time you retire, that isn’t always possible in today’s economy. The cost of living is considerably higher than it has ever been, and as a result, many Canadians are putting off retirement, hoping to make just a bit more money to add to that nest egg.

So if you find yourself in the position where you’re considering your mortgage options into retirement, you’ve come to the right place.

The advantage of working with an independent mortgage professional instead of a single bank is choice. When you work with an independent mortgage professional, you won’t be limited to an individual institution’s products; rather, you will have access to considerably more options.

Here are some options available to older Canadians as they plan for mortgage financing through their retirement.

Standard Mortgage Financing

If you’ve got a steady income, decent credit, and equity in your home, there is no reason you shouldn’t qualify for standard mortgage financing, which usually comes at the lowest interest rates and best terms. Some lenders use pension and retirement income to support your mortgage application even if you’ve already retired.

Reverse Mortgage Financing

A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their homes with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians enhance their lifestyle.

Home Equity Line of Credit (HELOC)

A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it but not pay interest if you don’t need it. Many older Canadians like the idea of rolling all their expenses and income into one account.

Private Financing

If you happen to be in a bit of a tight spot, you have a plan but need a financial solution; private financing might be the answer. Indeed not the first choice for many because of the higher interest rates. However, private financing can provide you with options where a traditional bank can’t.

If you have any questions about securing mortgage financing for your retirement, please connect anytime. It would be a pleasure to work with you and walk you through all your options.

OSFI Announces Removal of Stress Test for Uninsured Mortgage Switches

Mon, 30 Sep 2024 19:23:44 GMT

Starting November 21, 2024, borrowers switching lenders with uninsured mortgages will no longer face the stress test, thanks to a new policy from OSFI. Previously, uninsured borrowers needed to prove they could afford their mortgage at a higher rate, which created barriers to switching for better terms. This change encourages competition among lenders and aligns the rules with insured mortgages, providing more flexibility and choice for homeowners.

The decision responds to concerns raised by the Competition Bureau and reflects shifting risk management trends in the mortgage market.

Key Points:

Applies to Straight Switches: This policy is for borrowers switching lenders while maintaining their loan amount and amortization schedule.
Stress Test Removed: No more proving affordability at higher rates during switches, allowing for easier access to competitive offers.
Supports Borrower Flexibility: Homeowners now have more options to find the best mortgage rates at renewal without the stress test obstacle.

Why the Change?

OSFI initially maintained the stress test to manage risk but has now reversed this stance after evaluating that the original concerns have not significantly materialized. This move is designed to balance fairness for borrowers and enhance competition in the mortgage market.

How It Affects You

For those with uninsured mortgages approaching renewal, this policy change is a win. You'll now have the opportunity to seek out better mortgage rates without facing a stress test, making it easier to reduce financial strain, especially in a rising interest rate environment.

Stay informed and take advantage of these changes by reviewing your mortgage options today!

Can you Trust Online Mortgage Calculators?

Tue, 24 Sep 2024 08:00:00 GMT

You’d think an online calculator is a pretty straightforward device, one that you should be able to place your confidence in, and for the most part, they are. Calculators calculate numbers. The numbers are reliable, but how you interpret those numbers, not so much, especially if the goal is mortgage qualification.

If you rely on the numbers from a “What can I afford” or “Mortgage Qualification” calculator without talking to an independent mortgage professional, you’re going to be misinformed.

Don’t be fooled. Even though an online mortgage calculator can help you calculate mortgage payments or help you assess how additional payments would impact your amortization, they’ll never be able to give you an exact picture of what you can afford and how a lender will consider your mortgage application.

While mortgage calculators are objective, mortgage lending isn’t. It’s 100% subjective. Lenders consider your financial situation, employment, credit history, assets, liabilities, the property you are looking to purchase. Then, they will compare that with whatever internal risk profile they are currently using to assess mortgage lending. Simply put, they don’t just look at the numbers.

An online calculator is a great tool to help you run different financial scenarios and help assess your comfort level with different payment schedules and mortgage amounts. However, if you rely on an online calculator for mortgage qualification purposes, you’ll be disappointed.

The first step in the mortgage qualification process is a preapproval. A preapproval will examine all the variables on your application, assess your financial situation, and provide you with a framework to buy a property based on your unique circumstance.

Securing a preapproval comes at no cost to you and without any obligation to buy. It’ll simply allow you the freedom to move ahead with confidence, knowing exactly where you stand. Something a calculator is unable to do.

Please connect anytime if you’d like to talk more about your financial situation and get a preapproval started. It would be a pleasure to work with you.

New Mortgage Rules and CMHC Updates: A Guide for First-Time Buyers

Tue, 17 Sep 2024 21:12:16 GMT

In Budget 2024, the Canadian government introduced significant changes to help first-time homebuyers by extending mortgage amortization periods up to 30 years for those purchasing newly built homes. Effective August 1, 2024, this change will help ease monthly mortgage payments, making homeownership more accessible.

Key Eligibility Criteria for First-Time Buyers:

First-Time Buyer Status: At least one borrower must qualify as a first-time homebuyer, meaning they have either never owned a home, haven't lived in a home they owned in the past four years, or recently went through a marriage breakdown.
Newly Built Homes: The property must be a newly constructed home that has never been occupied.

These extended mortgages will only apply to high-ratio mortgages (loans covering more than 80% of the home’s purchase price) and are limited to owner-occupied properties. All other mortgage insurance eligibility criteria remain unchanged.

CMHC’s New Amortization Rules for Market MLI and MLI Select Programs

The Canada Mortgage and Housing Corporation (CMHC) has also introduced changes. As of June 19, 2024, the maximum amortization period for new construction market projects will increase from 40 years to 50 years. Additionally, the maximum period for re-amortization (for default management) will extend to 55 years for loans under the MLI Select Program.

These changes aim to encourage the construction of more rental housing units while managing housing affordability. CMHC’s modifications also include updates to energy efficiency criteria, lowering the maximum points from 100 to 50 based on energy efficiency, which means developers may need to shift focus toward affordable units to receive maximum benefits.

Changes to "Use of Funds" and Refinancing

CMHC has lifted restrictions on how refinanced funds can be used, reverting to pre-2020 rules. This allows non-approved lenders to offer bridge loans, creating more flexibility in financing options.

Environmental Site Contamination Policies

In response to industry practices, CMHC is reviewing its environmental site contamination policies. For now, projects with known site contamination will be accepted under conditional approval, pending a contamination-free site confirmation.

Why These Changes Matter

For first-time homebuyers, the ability to spread mortgage payments over 30 years is a welcome relief in today’s housing market, particularly for newly built homes. These changes are designed to improve housing affordability and supply, especially for younger Canadians looking to purchase their first home.

Meanwhile, CMHC’s new rules around extended amortizations and energy efficiency adjustments will have a significant impact on developers, especially those focused on building rental properties or using energy-efficient technologies in their projects.

If you're considering buying a home or developing a property, these changes could impact your strategy. To fully understand how these updates may apply to your situation, it's important to consult with a mortgage expert who can offer personalized advice.

Want to know how these changes could affect your home buying or property development plans? Book a call with a mortgage expert today to explore your options!

New Mortgage Rules Make Homeownership More Affordable for Canadians

Tue, 17 Sep 2024 21:11:32 GMT

As of August 1, 2024, the federal government introduced changes to support homebuyers, particularly Millennials and Gen Z. First-time homebuyers purchasing new builds can now access 30-year insured mortgage amortizations , reducing monthly payments and making it easier to afford a home.

Additionally, as of December 15, 2024, several major reforms will take effect:

The price cap for insured mortgages will rise from $1 million to $1.5 million, helping more Canadians qualify for mortgages with less than 20% down.
30-year amortizations will be available to all first-time homebuyers and buyers of new builds , including condominiums. This expansion will incentivize new housing supply, addressing the country’s housing shortage and making homeownership more accessible.

These reforms are part of a broader housing strategy that includes the Canadian Mortgage Charter , which enables insured mortgage holders to switch lenders without undergoing a new stress test at renewal. This promotes competition among lenders, ensuring more Canadians can access better mortgage deals.

In addition to these housing measures, the government has introduced the Renters' Bill of Rights and the Home Buyers' Bill of Rights to protect Canadians from unfair practices, ensure transparency in leases and sales, and simplify homebuying procedures. With $5 billion available through the Canada Housing Infrastructure Fund , the federal government is working with provinces and territories to make housing fairer and more accessible for all Canadians.

Stay tuned for further updates, and if you’re planning to buy a home or need more information, book a call with me to learn how these new rules can benefit you!

Protect Your Credit Through a Divorce

Tue, 10 Sep 2024 08:00:01 GMT

Divorces are challenging as there’s a lot to think about in a short amount of time, usually under pressure. And while handling finances is often at the forefront of the discussions related to the separation of assets, unfortunately, managing and maintaining personal credit can be swept aside to deal with later.

So, if you happen to be going through or preparing for a divorce or separation, here are a few considerations that will help keep your credit and finances on track. The goal is to avoid significant setbacks as you look to rebuild your life.

Manage Your Joint Debt

If you have joint debt, you are both 100% responsible for that debt, which means that even if your ex-spouse has the legal responsibility to pay the debt, if your name is on the debt, you can be held responsible for the payments. Any financial obligation with your name on the account that falls into arrears will negatively impact your credit score, regardless of who is legally responsible for making the payments. A divorce settlement doesn’t mean anything to the lender.

The last thing you want is for your ex-spouse’s poor financial management to negatively impact your credit score for the next six to seven years. Go through all your joint credit accounts, and if possible, cancel them and have the remaining balance transferred into a loan or credit card in the name of whoever will be responsible for the remaining debt.

If possible, you should eliminate all joint debts. Now, it’s a good idea to check your credit report about three to six months after making the changes to ensure everything all joint debts have been closed and everything is reporting as it should be. It’s not uncommon for there to be errors on credit reports.

Manage Your Bank Accounts

Just as you should separate all your joint credit accounts, it’s a good idea to open a checking account in your name and start making all deposits there as soon as possible. You’ll want to set up the automatic withdrawals for the expenses and utilities you’ll be responsible for going forward in your own account.

At the same time, you’ll want to close any joint bank accounts you have with your ex-spouse and gain exclusive access to any assets you have. It’s unfortunate, but even in the most amicable situations, money (or lack thereof) can cause people to make bad decisions; you want to protect yourself by protecting your assets.

While opening new accounts, chances are your ex-spouse knows your passwords to online banking and might even know the pin to your bank card. Take this time to change all your passwords to something completely new, don’t just default to what you’ve used in the past. Better safe than sorry.

Setup New Credit in Your Name

There might be a chance that you’ve never had credit in your name alone or that you were a secondary signer on your ex-spouse’s credit card. If this is the case, it would be prudent to set up a small credit card in your name. Don’t worry about the limit; the goal is to get something in your name alone. Down the road, you can change things and work towards establishing a solid credit profile.

If you have any questions about managing your credit through a divorce, please don’t hesitate to connect anytime. It would be a pleasure to work with you.

Understanding your Employment Status

Tue, 27 Aug 2024 08:00:00 GMT

Chances are if you’re applying for a mortgage, you feel confident about the state of your current employment or your ability to find a similar position if you need to. However, your actual employment status probably means more to the lender than you might think. You see, to a lender, your employment status is a strong indicator of your employer’s commitment to your continued employment.

So, regardless of how you feel about your position, it’s what can be proven on paper that matters most. Let’s walk through some of the common ways lenders can look at employment status.

Permanent Employment

The gold star of employment. If your employer has made you a permanent employee, it means that your position is as secure as any position can be. When a lender sees permanent status (passed probation), it gives them the confidence that you’re valuable to the company and that they can rely on your income.

Probationary Period

Despite the quality of your job, if you’ve only been with the company for a short while, you’ll be required to prove that you’ve passed any probationary period. Although most probationary periods are typically 3-6 months, they can be longer. You might now even be aware that you’re under probation.

The lender will want to make sure that you’re not under a probationary period because your employment can be terminated without any cause while under probation. Once you’ve made it through your initial evaluation, the lender will be more confident in your employment status.

Now, it’s not the length of time with the employer that the lender is scrutinizing; instead, it’s the status of your probation. So if you’ve only been with a company for one month, but you’ve been working with them as a contractor for a few years, and they’re willing to waive the probationary period based on a previous relationship, that should give the lender all the confidence they need. We’ll have to get that documented.

Parental Leave

Suppose you’re currently on, planning to be on, or just about to be done a parental leave, regardless of the income you’re now collecting, as long as you have an employment letter that outlines your guaranteed return to work position (and date). In that case, you can use your return to work income to qualify on your mortgage application. It’s not the parental leave that the lender has issues with; it’s the ability you have to return to the position you left.

Term Contracts

Term contracts are hands down the most ambiguous and misunderstood employment status as it’s usually well-qualified and educated individuals who are working excellent jobs with no documented proof of future employment.

A term contract indicates that you have a start date and an end date, and you are paid a specific amount for that specified amount of time. Unfortunately, the lack of stability here is not a lot for a lender to go on when evaluating your long-term ability to repay your mortgage.

So to qualify income on a term contract, you want to establish the income you’ve received for at least two years. However, sometimes lenders like to see that your contract has been renewed at least once before considering it as income towards your mortgage application.

In summary

If you’ve recently changed jobs or are thinking about making a career change, and qualifying for a mortgage is on the horizon, or if you have any questions at all, please connect anytime. We can work through the details together and make sure you have a plan in place. It would be a pleasure to work with you!

Difference between Deposit and Downpayment

Tue, 13 Aug 2024 08:00:01 GMT

If you’re new to the home buying process, it’s easy to get confused by some of the terms used. The purpose of this article is to clear up any confusion between the deposit and downpayment.

What is a deposit?

The deposit is the money included with a purchase contract as a sign of good faith when you offer to purchase a property. It’s the “consideration” that helps make up the contract and binds you to the agreement.

Typically, you include a certified cheque or a bank draft that your real estate brokerage holds while negotiations are finalized when you offer to purchase a property. If your offer is accepted, your deposit is held in your Realtor’s trust account.

If your offer is accepted and you commit to buying the property, your deposit is transferred to the lawyer’s trust account and included in your downpayment. If you aren’t able to reach an agreement, the deposit is refunded to you. However, if you commit to buying the property and don’t complete the transaction, your deposit could be forfeit to the seller.

Your deposit goes ahead of the downpayment but makes up part of the downpayment.

The amount you put forward as a deposit when negotiating the terms of a purchase contract is arbitrary, meaning there is no predefined or standard amount. Instead, it’s best to discuss this with your real estate professional as your deposit can be a negotiating factor in and of itself.

A larger deposit may give you a better chance of having your offer accepted in a competitive situation. It also puts you on the hook for more if something changes down the line and you cannot complete the purchase.

What is a downpayment?

Your downpayment refers to the initial payment you make when buying a property through mortgage financing.

In Canada, the minimum downpayment amount is 5%, as lenders can only lend up to 95% of the property’s value. Securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. You can source your downpayment from your resources, the sale of a property, an RRSP, a gift from a family member, or borrowed funds.

Example scenario

Let’s say that you are looking to purchase a property worth $400k. You’re planning on making a downpayment of 10% or $40k. When you make the initial offer to buy the property, you put forward $10k as a deposit your real estate brokerage holds in their trust account. If everything checks out with the home inspection and you’re satisfied with financing, you can remove all conditions. Your $10k deposit is transferred to the lawyer’s trust account, where will add the remaining $30k for the downpayment.

With your $40k downpayment made, once you sign the mortgage documents and cover the legal and closing costs, the lender will forward the remaining 90% in the form of a mortgage registered to your title, and you have officially purchased the property!

If you have any questions about the difference between the deposit and the downpayment or any other mortgage terms, please connect anytime. It would be a pleasure to work with you.

Using an RRSP for a Home Purchase

Tue, 30 Jul 2024 08:00:00 GMT

Did you know there’s a program that allows you to use your RRSP to help come up with your downpayment to buy a home? It’s called the Home Buyer’s Plan (or HBP for short), and it’s made possible by the government of Canada. While the program is pretty straightforward, there are a few things you need to know.

Your first home (with some exceptions)

To qualify, you need to be buying your first home. However, when you look into the fine print, you find that technically, you must not have owned a home in the last four years or have lived in a house that your spouse owned in the previous four years.

Another exception is for those with a disability or those helping someone with a disability. In this case, you can withdraw from an RRSP for a home purchase at any time.

You have to pay back the RRSP

You have 15 years to pay back the RRSP, and you start the second year after the withdrawal. While you won’t pay any tax on this particular withdrawal, it does come with some conditions. You’ll have to pay back the total amount you withdrew over 15 years.

The CRA will send you an HBP Statement of Account every year to advise how much you owe the RRSP that year. Your repayments will not count as contributions as you’ve already received the tax break from those funds.

Access to funds

The funds you withdraw from the RRSP must have been there for at least 90 days. You can still technically withdraw the money from your RRSP and use it for your down-payment, but it won’t be tax-deductible and won’t be part of the HBP.

You can access up to $35,000 individually or $70,00 per couple through the HBP.

Please connect anytime if you’d like to know more about the HBP and how it could work for you as you plan your downpayment. It would be a pleasure to work with you.

If You’re Looking to Sell Your Property, Start Here

Tue, 16 Jul 2024 08:00:00 GMT

If you’ve been thinking about selling your existing property, for whatever reason, it would be in your best interest to connect with an independent mortgage professional before calling your real estate agent or listing it yourself.

And while talking with your mortgage professional might not sound like the most logical place to start, here are a few scenarios that explain why it makes the most sense.

If you’re buying a new property

If you’re selling your property, chances are, you’ll have to move somewhere! So, if you plan on buying a new property using the equity from the sale of your existing property, chances are you’ll need a new mortgage.

Don’t assume that just because you’ve secured mortgage financing before, that you’ll qualify again. Mortgage rules are constantly changing; make sure you have a pre-approval in place before you list your property.

Also, by connecting with a mortgage professional first, you can look into your existing mortgage terms. You might be able to port your mortgage instead of getting a new one, which could save you some money.

If you’re not buying a new property

Even if you aren’t buying a new property and want to sell your existing property, it’s still a good idea to connect with a mortgage professional first, as we can look at the cost of breaking your mortgage together.

Unless you have an open mortgage, or a line of credit, there will be a penalty to break your mortgage. The goal is to work on a plan to minimize your penalty. Because of how mortgage penalties work, sometimes it’s just a matter of waiting a few months to save thousands. You'll never know unless you take a look at the details.

Marital breakdown

The simple truth is that marriages break down. When that happens, often, people want closure, and unfortunately, they make decisions without really thinking them through or seeing the full picture. So, instead of simply selling the family home because that feels like the only option, please know that special programs exist that allow one party to buy out the former spouse. The key here is to have a legal separation agreement is in place.

If you’d like to discuss the sale of your property and your plans for the future, connect anytime. It would be a pleasure to work with you!

Downpayment Options

Tue, 02 Jul 2024 08:00:00 GMT

Your downpayment refers to the initial payment you make when buying a property through mortgage financing. A downpayment is always required when purchasing, because in Canada, lenders are only allowed to lend up to 95% of the property value, leaving you with the need to come up with at least 5% for a downpayment.

In fact, securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. Canada has three default insurance providers: the Canadian Mortgage and Housing Corporation (CMHC), Sagen (formerly Genworth Canada), and Canada Guaranty. There is a cost for default insurance which is usually rolled into the total mortgage amount and is tiered depending on how much you put down.

As your downpayment can be a significant amount of money, you probably need a plan to put this money together. So, let’s take a look at some of the options you have to come up with a downpayment.

Money from your resources

If you’ve been saving money and have accumulated the funds and set them aside for to use for your downpayment, you'll need to prove a 90-day history of those funds. As far as the lender is concerned, this is the most straightforward way to prove a downpayment.

Any large deposits to your bank account that aren’t from payroll will require you to prove the source of funds. For example, if you recently sold a vehicle, you’ll need to provide the paperwork as proof of ownership, which corresponds to your account’s deposit. Or, if you have funds in an investment account that you’ve transferred over, statements of that transfer or account would suffice.

You have to prove the source of your downpayment funds to the lender when qualifying for a mortgage to help prevent money laundering.

Funds from the sale of another property

If you’ve recently sold a property and you’re using the proceeds of that sale as the downpayment from your new purchase, you can provide the paperwork from that transaction to substantiate your downpayment.

RRSPs through the Home Buyer’s Plan

Okay, so let’s say you don’t have all the money set aside in your savings, but you do have cash in your RRSP. Assuming you’re a first-time homebuyer, you can access the funds from your RRSP Tax-Free to use as a downpayment.

You’re able to access up to $35k individually or $70k as a couple. The money has to be paid back over the next 15 years. If you’d like more information on what this program looks like, please get in touch.

Gifted downpayment

Now, if you don’t have enough money in your savings, but you have a family member who is willing to help, they can gift you funds for your downpayment. With the increased cost of living, making it harder to save for a downpayment, receiving a gift from a family member is becoming increasingly commonplace.

Now, to qualify, the gift has to come from an immediate family member who will sign a gift letter indicating there is no schedule of repayment and that the gift doesn’t have to be repaid. Proof that the money has been deposited into your account is required through bank statements.

Gifted funds can make up part of or the entire amount of downpayment. For example, if you purchase a property for $300k and have $10k saved up, your parents can gift you the remaining $5k to make up the total 5% downpayment.

Borrowed downpayment

Suppose you aren’t fortunate enough to have a family member who can gift you a downpayment, but you have excellent credit and a high income compared to the amount you’re looking to borrow. In that case, you might qualify to borrow part or all of your downpayment.

It’s possible to borrow your downpayment as long as you include the payments in your debt service ratios. Typically this is 3% of the outstanding balance.

So there you have it, to qualify for a mortgage, you’ll need to come up with a downpayment. That can be through your resources, a property you sold, an RRSP, a gift from a family member, borrowed funds, or a combination of all five sources.

If you’d like to discuss your downpayment or anything else related to mortgage financing; It’s never too early to start the conversation about getting pre-approved for a mortgage. Please connect anytime. It would be a pleasure to work with you!

Pay Down Your Mortgage Faster

Tue, 18 Jun 2024 08:00:00 GMT

Being a home owner is excellent, having a huge mortgage isn’t. So, if you have a mortgage that you’re looking to get rid of as quickly as possible, here are four things you should consider doing.

Accelerate your payments

Making the change from monthly payments to accelerated bi-weekly payments is one of the easiest ways you can make a difference to the bottom line of your mortgage. Most people don’t even notice the difference or increased payment.

A traditional mortgage with monthly payments splits the amount owing annually into 12 equal payments. Accelerated biweekly is simply taking a regular monthly payment and dividing it in two, but instead of making 24 payments, you make 26. The extra two payments accelerate the paying down of your mortgage.

Increase your regular mortgage payments

Chances are, depending on the terms of your existing mortgage, you can increase your regular mortgage payment by 10-25%. Alternatively, some lenders even offer the ability to double-up your mortgage payments. These are great options as any additional payments will be applied directly to the principal amount owing on your mortgage instead of a prepayment of interest.

Make a lump-sum payment

Depending on your lender and your mortgage product, you should be able to put down anywhere from 10-25% of the original mortgage balance in a bulk payment. Some lenders are particular about when you can make these payments; however, you should be eligible if you haven’t taken advantage of a lump sum payment yet this year.

Making a lump-sum payment is a great option if you’ve come into some money and you’d like to apply it to your mortgage. As this will lower your principal amount owing on the mortgage, it will reduce the amount of interest charged over the life of the mortgage.

Review your options regularly

As your mortgage payments debit from your bank account directly, it’s easy to put your mortgage on auto-pilot and not think twice about it until your term is up for renewal. Unfortunately, this removes you from the driver's seat and doesn’t allow you to make informed decisions about your mortgage or keep up to date with market conditions.

So let’s talk about an annual mortgage review. Working through an annual mortgage review with an independent mortgage professional is beneficial as there may be opportunities to refinance your mortgage and lower your overall cost of borrowing. By reviewing your mortgage at least once a year, you can be sure that you’ve always got the best mortgage for you! There is no cost involved here, just a quick assessment and peace of mind.

If you’ve got questions about your existing mortgage or want to compare your mortgage to options available today, please connect anytime. It would be a pleasure to work with you.

Lowering Your Overall Cost of Borrowing

Tue, 04 Jun 2024 08:00:01 GMT

If you’re like most Canadians, chances are you don’t have enough money in the bank to buy a property outright. So, you need a mortgage. When you’re ready, it would be a pleasure to help you assess and secure the best mortgage available. But until then, here’s some information on what to consider when selecting the best mortgage to lower your overall cost of borrowing.

When getting a mortgage, the property you own is held as collateral and interest is charged on the money you’ve borrowed. Your mortgage will be paid back over a defined period of time, usually 25 years; this is called amortization. Your amortization is then broken into terms that outline the interest cost varying in length from 6 months to 10 years. From there, each mortgage will have a list of features that outline the terms of the mortgage.

When assessing the suitability of a mortgage, your number one goal should be to keep your cost of borrowing as low as possible. And contrary to conventional wisdom, this doesn’t always mean choosing the mortgage with the lowest rate. It means thinking through your financial and life situation and choosing the mortgage that best suits your needs.

Choosing a mortgage with a low rate is a part of lowering your borrowing costs, but it’s certainly not the only factor. There are many other factors to consider; here are a few of them:

How long do you anticipate living in the property? This will help you decide on an appropriate term.
Do you plan on moving for work, or do you need the flexibility to move in the future? This could help you decide if portability is important to you.
What does the prepayment penalty look like if you have to break your term? This is probably the biggest factor in lowering your overall cost of borrowing.
How is the lender’s interest rate differential calculated, what figures do they use? This is very tough to figure out on your own. Get help.
What are the prepayment privileges? If you’d like to pay down your mortgage faster.
How is the mortgage registered on the title? This could impact your ability to switch to another lender upon renewal without incurring new legal costs, or it could mean increased flexibility down the line.
Should you consider a fixed rate, variable rate, HELOC, or a reverse mortgage? There are many different types of mortgages; each has its own pros and cons.
What is the size of your downpayment? Coming up with more money down might lower (or eliminate) mortgage insurance premiums, saving you thousands of dollars.

So again, while the interest rate is important, it’s certainly not the only consideration when assessing the suitability of a mortgage. Obviously, the conversation is so much more than just the lowest rate. The best advice is to work with an independent mortgage professional who has your best interest in mind and knows exactly how to keep your cost of borrowing as low as possible.

You will often find that mortgages with the rock bottom, lowest rates, can have potential hidden costs built in to the mortgage terms that will cost you a lot of money down the road. Sure, a rate that is 0.10% lower could save you a few dollars a month in payments, but if the mortgage is restrictive, breaking the mortgage halfway through the term could cost you thousands or tens of thousands of dollars. Which obviously negates any interest saved in going with a lower rate.

It would be a pleasure to walk you through the fine print of mortgage financing to ensure you can secure the best mortgage with the lowest overall cost of borrowing, given your financial and life situation. Please connect anytime!

Before You Co-Sign a Mortgage

Tue, 21 May 2024 08:00:00 GMT

So you’re thinking about co-signing on a mortgage? Great, let’s talk about what that looks like. Although it’s nice to be in a position to help someone qualify for a mortgage, it’s not a decision that you should make lightly. Co-signing a mortgage could have a significant impact on your financial future. Here are some things to consider.

You’re fully responsible for the mortgage.

Regardless if you’re the principal borrower, co-borrower, or co-signor, if your name is on the mortgage, you are 100% responsible for the debt of the mortgage. Although the term co-signor makes it sound like you’re somehow removed from the actual mortgage, you have all the same legal obligations as everyone else on the mortgage. When you co-sign for a mortgage, you guarantee that the mortgage payments will be made, even if you aren’t the one making them.

So, if the primary applicant cannot make the payments for whatever reason, you’ll be expected to make them on their behalf. If payments aren’t made, and the mortgage goes into default, the lender will take legal action. This could negatively impact your credit score. So it’s an excellent idea to make sure you trust the primary applicant or have a way to monitor that payments are, in fact, being made so that you don’t end up in a bad financial situation.

You’re on the mortgage until they can qualify to remove you.

Once the initial mortgage term has been completed, you won’t be automatically removed from the mortgage. The primary applicant will have to make a new application in their own name and qualify for the mortgage on their own merit. If they don’t qualify, you’ll be kept on the mortgage for the next term.

So before co-signing, it’s a good idea to discuss how long you can expect your name will be on the mortgage. Having a clear and open conversation with the primary applicant and your independent mortgage professional will help outline expectations.

Co-signing a mortgage impacts your debt service ratio.

When you co-sign for a mortgage, all of the debt of the co-signed mortgage is counted in your debt service ratios. This means that if you’re looking to qualify for another mortgage in the future, you’ll have to include the payments of the co-signed mortgage in those calculations, even though you aren’t the one making the payments directly.

As this could significantly impact the amount you could borrow in the future, before you co-sign a mortgage, you’ll want to assess your financial future and decide if co-signing makes sense.

Co-signing a mortgage means helping someone get ahead.

While there are certainly things to consider when agreeing to co-sign on a mortgage application, chances are, by being a co-signor, you'll be helping someone you care for get ahead in life. The key to co-signing well is to outline expectations and over-communicate through the mortgage process.

If you have any questions about co-signing on a mortgage or about the mortgage application process in general, please connect anytime. It would be a pleasure to work with you.

Protect Yourself with a Pre-Approval

Tue, 07 May 2024 08:00:00 GMT

There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market.

Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without.

Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel.

One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range.

So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed.

Protect yourself with a mortgage pre-approval. A pre-approval does a few things

It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend.
It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau.
It will outline the necessary supporting documentation required to get a mortgage so you can be prepared.
It will secure a rate for 30 to 120 days, depending on your mortgage product.
It will save your heart from the pain of falling in love with something you can’t afford.

Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford.

Get a pre-approval before you start shopping; your heart will thank you.

If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!

Costs Associated with Buying Property

Tue, 23 Apr 2024 08:00:00 GMT

When calculating if you can afford to purchase a property, don’t just figure out a rough downpayment and quickly move on from there. Several other costs need to be considered when buying a property; these are called your closing costs. Closing costs refer to the things you’ll have to pay for out of your pocket and the amount of money necessary to finalize the purchase of a property.

And like most things in life, it pays to plan ahead when it comes to closing costs. Closing costs should be part of the pre-approval conversation as they are just as important as saving for your downpayment.

Now, if your mortgage is high-ratio and requires mortgage default insurance, the lender will need to confirm that you have at least 1.5% of the purchase price available to close the mortgage. This is in addition to your downpayment. So if your downpayment is 10% of the purchase price, you’ll want to have at least 11.5% available to bring everything together. But of course, the more cash you have to fall back on, the better.

So with that said, here is a list of the things that will cost you money when you’re buying a property. As prices vary per service, if you’d like a more accurate estimate of costs, please connect anytime, it would be a pleasure to walk through the exact numbers with you.

Inspection or Appraisal

A home inspection is when you hire a professional to assess the property's condition to make sure that you won’t be surprised by unexpected issues. An appraisal is when you hire a professional to compare the property's value against other properties that have recently sold in the area. The cost of a home inspection is yours, while the appraisal cost is sometimes covered by your mortgage default insurance and sometimes covered by you!

Lawyer or Notary Fees

To handle all the legal paperwork, you’re required to hire a legal real estate professional. They’ll be responsible for transferring the title from the seller's name into your name and make sure the lender is registered correctly on the title. Chances are, this will be one of your most significant expenses, except if you live in a province with a property transfer tax.

Taxes

Depending on which province you live in and the purchase price of the property you’re buying, you might have to pay a property transfer tax or land transfer tax. This cost can be high, upwards of 1-2% of the purchase price. So you’ll want to know the numbers well ahead of time.

Insurance

Before you can close on mortgage financing, all financial institutions want to see that you have property/home insurance in place for when you take possession. If disaster strikes and something happens to the property, your lender must be listed on your insurance policy.

Unlike property insurance, which is mandatory, you might also consider mortgage insurance, life insurance, or a disability insurance policy that protects you in case of unforeseen events. Not necessary, but worth a conversation.

Moving Expenses

Congratulations, you just bought a new property; now you have to get all your stuff there! Don’t underestimate the cost of moving. If you’re moving across the country, the cost of hiring a moving company is steep, while renting a moving truck is a little more reasonable; it all adds up. Hopefully, if you’re moving locally, your costs amount to gas money and pizza for friends.

Utilities

Hooking up new services to a property is more time-consuming than costly. However, if you’re moving to a new province or don’t have a history of paying utilities, you might be required to come up with a deposit for services. It doesn’t really make sense to buy a property if you can’t afford to turn on the power or connect the water.

So there you have it; this covers most of the costs associated with buying a new property. However, this list is by no means exhaustive, but as mentioned earlier, planning for these costs is a good idea and should be part of the pre-approval process.

If you have any questions about your closing costs or anything else mortgage-related, please connect anytime; it would be great to hear from you!

Understanding the Recent Housing Affordability Measures in Canada

Thu, 18 Apr 2024 23:44:07 GMT

In recent years, housing affordability has become a significant concern for many Canadians, particularly for first-time homebuyers facing soaring prices and strict mortgage qualification criteria. To address these challenges, the Canadian government has introduced several housing affordability measures. In this blog post, we'll examine these measures and their potential implications for homebuyers.

Increased Home Buyer's Plan (HBP) Withdrawal Limit

Effective April 16, the Home Buyer's Plan (HBP) withdrawal limit will be raised from $35,000 to $60,000. The HBP allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards a down payment on a home. By increasing the withdrawal limit, the government aims to provide young Canadians with more flexibility in saving for their down payments, recognizing the growing challenges of entering the housing market.

Extended Repayment Period for HBP Withdrawals

In addition to increasing the withdrawal limit, the government has extended the repayment period for HBP withdrawals. Individuals who made withdrawals between January 1, 2022, and December 31, 2025, will now have five years instead of two to begin repayment. This extension provides borrowers with more time to manage their finances and repay the withdrawn amounts, alleviating some of the immediate financial pressures associated with using RRSP funds for a down payment.

30-Year Mortgage Amortizations for Newly Built Homes

Starting August 1, 2024, first-time homebuyers purchasing newly built homes will be eligible for 30-year mortgage amortizations. This change extends the maximum mortgage repayment period from 25 years to 30 years, resulting in lower monthly mortgage payments. By offering longer amortization periods, the government aims to increase affordability and assist homebuyers in managing their housing expenses more effectively.

Changes to the Canadian Mortgage Charter

The government has also introduced changes to the Canadian Mortgage Charter to provide relief to homeowners facing financial challenges. These changes include early mortgage renewal notifications and permanent amortization relief for eligible homeowners. By implementing these measures, the government seeks to support homeowners in maintaining affordable mortgage payments and mitigating the risk of default during times of financial hardship.

The recent housing affordability measures announced by the Canadian government are aimed at addressing the challenges faced by homebuyers in today's market. These measures include increasing withdrawal limits, extending repayment periods, and offering longer mortgage amortizations. The goal is to make homeownership more accessible and affordable for Canadians across the country.

As these measures come into effect, it's crucial for homebuyers to stay informed about the changes and their implications. Consulting with a mortgage professional can help individuals explore their options and make informed decisions about their housing finances.

If you're interested in learning more about these changes and how they may affect you, please don't hesitate to connect with us. We're here to walk you through the process and help you consider all your options and find the one that makes the most sense for you.

A First Home Savings Account (FHSA)

Thu, 18 Apr 2024 23:43:13 GMT

Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers.

What is an FHSA?

An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA.

Reasons to Invest in an FHSA:

Save up to $40,000 for your first home.
Contribute tax-free for up to 15 years.
Carry over unused contribution room to the next year, up to a maximum of $8,000.
Potentially reduce your tax bill and carry forward undeducted contributions indefinitely.
Pay no taxes on investment earnings.
Complements the Home Buyers’ Plan (HBP).

How Does an FHSA Work?

Open Your FHSA: Start investing tax-free by opening your FHSA.
Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster.
Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home.

Benefits of an FHSA:

Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income.
Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA.
No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home.

Numbers to Know:

$8,000: Annual tax-deductible FHSA contribution limit.
$40,000: Lifetime FHSA contribution limit.
$0: Taxes on FHSA earnings when used for a qualifying home purchase.

In Conclusion

A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.

Alternative Lending Provides You With Options

Tue, 09 Apr 2024 08:00:00 GMT

Alternative lending refers to any lending practices that fall outside the normal banking channels. Alternative lenders think outside the box and offer solutions to Canadians who wouldn’t otherwise qualify for traditional mortgage financing.

In an ideal world, we’d all qualify for the best mortgage terms available. However, this isn’t the case. Securing the most favourable terms depends on your financial situation. Here are a few circumstances where alternative lending might make sense for you.

Damaged Credit

Bad credit doesn’t disqualify you from mortgage financing. Many alternative lenders look at the strength of your employment, income, and your downpayment or equity to offer you mortgage financing. Credit is important, but it’s not everything, especially if there is a reasonable explanation for the damaged credit.

When dealing with alternative lending, the interest rates will be a little higher than traditional mortgage financing. But if the choice is between buying a property or not, or getting a mortgage or not, having options is a good thing. Alternative lenders provide you with mortgage options. That’s what they do best.

So, if you have damaged credit, consider using an alternative lender to provide you with a short-term mortgage option. This will give you time to establish better credit and secure a mortgage with more favourable terms. Use an alternative lender to bridge that gap!

Self-Employment

If you run your own business, you most likely have considerable write-offs that make sense for tax planning reasons but don’t do so much for your verifiable income. Traditional lenders want to see verifiable income; alternative lenders can be considerably more understanding and offer competitive products.

As interest rates on alternative lending aren’t that far from traditional lending, alternative lending has become the home for most serious self-employed Canadians. While you might pay a little more in interest, oftentimes, that money is saved through corporate structuring and efficient tax planning.

Non-traditional income

Welcome to the new frontier of earning an income.

If you make money through non-traditional employment like Airbnb, tips, commissions, Uber, or Uber eats, alternative lending is more likely to be flexible to your needs.

Most traditional lenders want to see a minimum of two years of established income before considering income on a mortgage application. Not always so with alternative lenders, depending on the strength of your overall application.

Expanded Debt-Service Ratios

With the government stress test significantly lessening Canadians' ability to borrow, the alternative lender channel allows expanded debt-service ratios. This can help finance the more expensive and suitable property for responsible individuals.

Traditional lending restricts your GDS and TDS ratios to 35/42 or 39/44, depending on your credit score. However, alternative lenders, depending on the loan-to-value ratio, can be considerably more flexible. The more money you have as a downpayment, the more you’re able to borrow and expand those debt-service guidelines. It’s not the wild west, but it’s certainly more flexible.

Connect anytime

Alternative lending can be a great solution if your financial situation isn’t all that straightforward. The goal of alternative lending is to provide you with options. You can only access alternative lending through the mortgage broker channel.

Please connect anytime if you’d like to discuss mortgage financing and what alternative lending products might suit your needs; it would be a pleasure to work with you.

Benefits of Working with an Independent Mortgage Professional

Tue, 26 Mar 2024 08:00:00 GMT

If you need a mortgage, working with an independent mortgage professional will save you money and provide you with better options than dealing with a single financial institution. And if that is the only sentence you read in this entire article, you already know all you need to know.

However, if you’d like to dig a little deeper, here are some reasons that outline why working with an independent mortgage professional is in your best interest.

The best mortgage is the one that costs you the least over the long term. An independent mortgage professional can help you achieve this.

Mortgages aren’t created equally. Oftentimes slick marketing leads us to believe the lowest “sticker price” is the best value. So when it comes to mortgage financing, you might assume the mortgage with the lowest rate is the best option. This isn’t always the case.

When considering a mortgage, your goal should be to find the mortgage that will cost you the least amount of money over the total length of the mortgage. There are many factors to consider, such as your specific financial situation, the rate, initial term length, fixed or variable rate structure, amortization, and the penalties incurred should you need to break your mortgage early; the fine print matters.

An independent mortgage professional can walk through all these factors with you and will help you find the mortgage that best suits your needs. Sometimes taking a mortgage with a slightly higher rate can make sense if it gives you flexibility down the line or helps you avoid huge payout penalties.

Working the numbers with an independent mortgage professional will save you money in the long run instead of just going with what a single lender is offering.

Save time by letting an independent mortgage professional find the best mortgage product for you.

Let's face it, getting a mortgage can be challenging enough on its own. Everyone’s financial situation is a little different and making sense of lender guidelines is a full-time job in itself.

So instead of dealing with multiple lending institutions on your own, when you work with an independent mortgage professional, you submit a single mortgage application that is compared to the lending guidelines of various mortgage lenders. This will save you time as you don’t have to go from bank to bank to ensure you’re getting the best mortgage.

Simply put, an independent mortgage professional works for you and has your best interest in mind, while a bank specialist works for the bank and has the bank's best interest in mind.

It’s no secret that Canadian banks make a lot of money. It seems every quarter they turn billions of dollars in profit (despite the economic environment). They do this at the expense of their customers by charging as much interest as they can and structuring mortgages to their benefit.

It’s all about the alignment of interest. Bank employees work for the bank; the bank pays them to make money for the bank. In contrast, independent mortgage professionals are provincially licensed to work for their clients and are paid a standardized placement or finder’s fee for matching borrowers with lenders. When you work with a single bank, you only have access to the products of that bank. When you work with an independent mortgage professional, you have access to all of the lenders that mortgage professionals have relationships with and all their products.

Working with an independent mortgage professional will save you money, time, and provide you with better mortgage options. Plus, you have the added benefit of working with a licensed professional looking out for your best interest, providing you with the best possible advice.

If you’d like to know more or to discuss mortgage financing, please connect anytime; it would be a pleasure to work with you.

How to Ensure a Smooth Home Purchase

Tue, 12 Mar 2024 08:00:00 GMT

Chances are, buying a home is one of the most important financial decisions you’ll make in your life. And as mortgage financing can be somewhat confusing at the best of times, to alleviate some of the stress and to ensure your home purchase goes as smoothly as possible, here are six very high-level steps you should follow.

While it might seem like the best place to start the home buying process is to browse MLS on your phone and then contact a Realtor to go out and look at properties, it’s not. First, you’re going to want to work with a licensed independent mortgage professional.

When you work with an independent mortgage professional, instead of working with a single bank, you’ll be working with someone who has your best interest in mind and can present you with mortgage options from several financial institutions.

The second step in the home buying process is to put together a mortgage plan. Unless you have enough money in the bank to buy a home with cash, you’re going to need a mortgage. And as mortgage financing can be challenging and not so straightforward, the best time to start planning for a mortgage is right now. Don’t make another move until you discuss your financial situation with an independent mortgage professional. It’s never too early to start planning.

As part of your mortgage plan, you’ll want to figure out what you can afford on paper, assess your credit score, run some financial scenarios, calculate mortgage payments, and have a clear picture of exactly how much money is required for a downpayment and closing costs. You’ll also be able to discuss which mortgage product is best for you, considering different mortgage terms, types, amortizations, and features.

Now, what you qualify to borrow on paper doesn’t necessarily mean you can actually afford the payments in real life. You need to consider your lifestyle and what you spend your money on. Understanding your cash flow is the key. Make a budget to verify you can actually afford your proposed mortgage payments and that you have enough funds to close on the mortgage. No one wants to be house-poor or left scrambling to come up with funds to close at the last minute.

If everything looks good at this point, the next step will be to get a preapproval in place. Now, a pre-approval is more than just typing some numbers into a form or online calculator; you need to complete a mortgage application and submit all the documents requested by your mortgage professional.

Only proceed with looking at properties when you’ve been given the green light from your mortgage professional. When you’ve found a property to purchase, you’ll work very closely with your mortgage professional to arrange mortgage financing in a short period of time. This is where being prepared pays off.

As you’ve already collected and submitted many documents upfront during the preapproval process, you should be set up for success. However, remain flexible and provide any additional documentation required by the lender to secure mortgage financing.

Once you have firm lender approval and you’ve removed conditions on the purchase agreement, don’t change anything about your financial situation until you have the keys. Don’t quit your job, don’t take out a new loan, or don’t make a large withdrawal from your bank account. Put your life into a holding pattern until you take possession of your new home.

So there you have it, six steps to ensuring a smooth home purchase:

Work with an independent mortgage professional.
Put together a mortgage plan.
Figure out what you can actually afford.
Get a pre-approval.
Provide the necessary documentation.
Don’t change anything about your financial situation until you take possession.

If you’d like to discuss your personal financial situation and find the best mortgage product for you, let’s work together. We can figure out a plan to buy a home as stress-free as possible.

Please connect anytime; it would be a pleasure to work with you.

What is a Cashback Mortgage?

Tue, 27 Feb 2024 09:00:00 GMT

As the name implies, a cashback mortgage is similar to a standard mortgage, except that you receive a lump sum of cash upon closing. This lump sum will either be a fixed amount of money or a percentage of the mortgage amount, usually between 1-7%, depending on the mortgage term selected.

How you use the cash is entirely up to you. Some of the most common reasons to secure a cashback mortgage are to:

Cover closing costs.
Buy new furniture.
Renovate your property.
Supplement cashflow.
Consolidate higher-interest debt.

Really, you can use the cash for anything you like. It’s tax-free and paid to you directly once the mortgage closes.

Understanding the cost of a cashback mortgage.

Now, while it might appear like a cashback mortgage is a great way to get some free money, it’s not. Banks aren’t altruistic; they’re in the business of making money by lending money. Securing a mortgage that provides you with cash back at closing will cost you a higher interest rate over your mortgage term.

A cashback mortgage is like getting a fixed loan rolled into your mortgage. Your interest rate is increased to cover the additional funds being lent.

Now, with so many different cashback options available and with interest rates constantly changing, it's nearly impossible to run through specific calculations on a simple article to outline how much more you’d pay over the term. So, if you'd like to identify the true cost of securing a cashback mortgage, the best place to start is to discuss your financial situation with an independent mortgage professional.

When you work with an independent mortgage professional instead of a single bank, you receive unbiased advice, more financing options, and a clear picture of the cost associated with securing a mortgage.

Getting cashback at closing is a mortgage feature that makes the bank more money at your expense. This isn’t necessarily a bad thing; the key is to be informed of the costs involved so you can make a good decision.

Eligibility for a cashback mortgage.

Simply put, a cashback mortgage isn’t for everyone. This is a mortgage product that has tougher qualifications than standard mortgage financing. Any lender willing to offer a cashback mortgage will want to see that you have stable employment, a fabulous credit score, and healthy debt service ratios. If your mortgage application is in any way “unique,” the chances of qualifying for a cashback mortgage are pretty slim.

Breaking your mortgage term early.

In addition to paying a higher interest rate to cover the cost of receiving the cashback at closing, a cashback mortgage also limits your options down the line.

If your life circumstances change and you need to break your mortgage mid-term, depending on the conditions set out in your mortgage contract, you’ll most likely be required to either pay all of the cashback received or at least a portion, depending on how long you’ve had the mortgage.

As all cashback mortgages are tied to fixed-rate terms, so in addition to repaying the cashback, you’d also be required to pay the interest rate differential penalty; or 3 months interest, whichever is greater for breaking your mortgage term early.

Sufficed to say, should you need to pay out your mortgage early, breaking your cashback mortgage will be costly. Certainly, this is something to consider when assessing the suitability of this mortgage product.

Get independent mortgage advice.

Understanding the intricacies of mortgage financing can be difficult at the best of times. With all the different terms, rates, and mortgage products available, it’s hard to know which mortgage is best for you.

So while a mortgage that offers a cash incentive upon closing might initially seem like an attractive offer, make sure you seek out the guidance of an independent mortgage professional to help you navigate the costs associated with a cashback mortgage. While it might be a great option for you, there might be other mortgage options that better suit your needs. It's worth a conversation for sure!

If you’d like to discuss what a cashback mortgage or any other mortgage product would look like for you, please get in touch. It would be a pleasure to work with you.

Buying a Second Property

Tue, 13 Feb 2024 09:00:00 GMT

If you’ve been thinking about buying a second property and you’re looking to put some of the pieces together, you’ve come to the right place!

Whether you’re looking to buy a vacation property, start a rental portfolio, or help accommodate a family member, there are many reasons to buy a second property (while keeping your existing property), which might make sense for you!

Now, while there are many great reasons to buy a second property, there is also a lot to know as you walk through the process. The key here is to have absolute clarity around your why.

Ask yourself, why do you want to buy a second property? This isn’t a decision to be taken lightly or one that should be made too quickly. Buying a second property should be a strategic decision that allows you to accomplish your goals, and it should include an assessment of your overall financial health.

So with clear goals in mind, the best place to start the process is to have a conversation with an independent mortgage professional. This will allow you to assess your financial situation, outline the costs, and put together a plan to make it happen.

While purchasing a second property is similar to buying a primary residence, there are some key differences. Just because you’ve qualified in the past for your existing mortgage doesn’t mean you’ll qualify to purchase a second property.

One key difference is the amount of downpayment you might be required to come up with. A property that is owner-occupied or occupied by a family member on a rent-free basis will require less of a downpayment than if the second property will be used to generate an income. So, depending on the property's intended use, you might have to come up with as much as 25%-35% down.

This is where strategic planning comes in. Consider unlocking the equity in your existing home to finance the downpayment to purchase your second home. Here are a few ways you can go about doing that:

Securing a new mortgage if you own your property clear title
Refinancing your existing mortgage to access additional funds
Securing a home equity line of credit (HELOC)
Getting a second mortgage behind your existing first mortgage
Securing a reverse mortgage

The conversation about buying a second property should include assessing your overall financial health, leveraging your existing assets to lower your overall cost of borrowing, and figuring out the best way to accomplish your goals.

And as it's impossible to outline every scenario in a simple blog post, if you’d like to discuss your goals and put a plan together to finance a second property, connect anytime. It would be a pleasure to work with you.

Reposition Your Debts Through Mortgage Financing

Tue, 30 Jan 2024 09:00:00 GMT

If you’re a homeowner looking to optimize your finances, consider taking advantage of your home’s equity to reposition any existing debts you may have.

If you’ve accumulated consumer debt, the payments required to service these debts can make it difficult to manage your daily finances. A consolidation mortgage might be a great option for you!

Simply put, debt repositioning or debt consolidation is when you combine your consumer debt with a mortgage secured to your home. To make this happen, you’ll borrow against your home’s equity.

This can mean refinancing an existing mortgage, securing a home equity line of credit, or taking out a second mortgage. Each mortgage option has its advantages which are best outlined in discussion with an independent mortgage professional.

Some of the types of debts that you can consolidate are:

Credit Card
Unsecured Line of Credit
Car Loan
Student Loans
Personal or Payday Loans

Most unsecured debt carries a high interest rate because the lender doesn't have any collateral to fall back on should you default on the loan. However, as a mortgage is secured to your home, the lender has collateral and can provide you with lower rates and more favourable terms.

Debt consolidation makes sense because it allows you to take high-interest unsecured debts and reposition them into a single low payment.

So, when considering the best mortgage for you, getting a low rate is important, but it’s not everything. Your goal should be to lower your overall cost of borrowing. A mortgage that allows for flexibility in prepayments helps with this. It’s not uncommon to find a mortgage at a great rate that allows you to increase your payments by 15% per payment, double your payments, or make a lump sum payment of up to 15% annually.

As additional payments go directly to the principal repayment of the loan, once you’ve consolidated all your debts into a single payment, it’s smart to take advantage of your prepayment privileges by paying more than just your minimum required mortgage payment, as this will help you become debt-free sooner.

While there is a lot to unpack here, if you’d like to discuss what using a mortgage to reposition your debts could look like for you, here’s a simple plan we can follow:

First, we’ll assess your existing debt to income ratio.
We’ll establish your home’s equity.
We’ll consider all your mortgage options.
Lastly, we’ll reposition your debts to help optimize your finances.

If this sounds like the plan for you, the best place to start is to connect directly. It would be a pleasure to work with you.

How To Avoid An Accidental Home Purchase

Tue, 16 Jan 2024 09:00:05 GMT

Buying a property might actually be easier than you think. So, if you have NO desire AT ALL to qualify for a mortgage, here are some great steps you can take to ensure you don’t accidentally buy a property.

Fair warning, this article might get a little cheeky.

Quit your job.

First things first, ditch that job. One of the best ways to make sure you won’t qualify for a mortgage is to be unemployed. Yep, most mortgage lenders aren’t in the practice of lending money to unemployed people!

If you already have a preapproval in place and don’t want to go through with financing, no problems. Unexpectedly quit your job mid-application. Because, even if you’re making a lateral move or taking a better job, any change in employment status can negatively impact your approval.

Spend All Your Savings.

To get a mortgage, you’ll have to bring some money to the table. In Canada, the minimum downpayment required is 5% of the purchase price. Now, if the goal is not to get a mortgage, spending all your money and having absolutely nothing in your account is a surefire way to ensure you won’t qualify for a mortgage. So, if you’ve been looking for a reason to go out and buy a new vehicle, consider this your permission.

Collect as Much Debt as Possible.

After quitting your job and spending all your savings, you should definitely go out and incur as much debt as possible! The higher the payments, the better.

You see, one of the main qualifiers on a mortgage is called your debt-service ratio. This takes into count the amount of money you make compared to the amount of money you owe. So the more debt you have, the less money you’ll have leftover to finance a home.

Stop Making Your Debt Payments

So let’s say you can’t shake your job, you still have a good amount of money in the bank, and you’ve run out of ways to spend money you don’t have. Don’t panic; you can still absolutely wreck your chances of qualifying for a mortgage! Just don’t pay any of your bills on time or stop making your payments altogether.

Why would any lender want to lend you money when you have a track record of not paying back any of the money you’ve already borrowed?

Provide Ugly Supporting Documentation.

Now, if all else fails, the last chance you have to scuttle your chances of getting a mortgage is to provide the lender with really ugly documents. To support your mortgage application, lenders must complete their due diligence. Here are three ways to make sure the lender won’t be able to verify anything.

Firstly, and probably the most straightforward, make sure your name doesn’t appear anywhere on any of your statements. This way, the lender can’t be sure the documents are actually yours or not.

Secondly, when providing bank statements to prove downpayment funds, make sure there are multiple cash deposits over $1000 without explaining where the money came from. This will look like money laundering and will throw up all kinds of red flags.

And lastly, consider blacking out all your “personal information.” Just use a black Sharpie and make your paperwork look like classified FBI documents.

Follow-Through

So there you have it, to avoid an accidental home purchase, you should quit your job, spend all your money, borrow as much money as possible, stop making your payments, and make sure the lender can’t prove anything! This will ensure no one will lend you money to buy a property!

Now, on the off chance that you’d actually like to qualify for a mortgage, you’ve come to the right place. The suggestion would be to actually keep your job, save for a downpayment, limit the amount of debt you carry, make your payments on time, and provide clear documentation to support your mortgage application!

If you'd like to make sure you're on the right track, connect anytime. It would be a pleasure to walk through the mortgage process with you.

Standard or Collateral Charge Mortgage. What’s best for you?

Tue, 02 Jan 2024 09:00:01 GMT

When arranging mortgage financing, your mortgage lender will register your mortgage in one of two ways. Either with a standard charge mortgage or a collateral charge mortgage. Let’s look at the differences between the two.

Standard charge mortgage

This is your good old-fashioned mortgage. A standard charge mortgage is the mortgage you most likely think about when you consider mortgage financing. Here, the amount you borrow from the lender is the amount that is registered against the title to protect the lender if you default on your mortgage.

When your mortgage term is up, you can either renew your existing mortgage or, if it makes more financial sense, you can switch your mortgage to another lender. As long as you aren’t changing any of the fine print, the new lender will usually cover the cost of the switch.

A standard charge mortgage has set terms and is non-advanceable. This means that if you need to borrow more money, you'll need to reapply and requalify for a new mortgage. So there will be costs associated with breaking your existing mortgage and costs to register a new one.

Collateral charge mortgage

A collateral charge mortgage is a mortgage that can have multiple parts, usually with a re-advanceable component. It can include many different financing options like a personal loan or line of credit. Your mortgage is registered against the title in a way that should you need to borrow more money down the line; you can do so fairly easily.

A home equity line of credit is a good example of a collateral charge mortgage.

Unlike a standard charge mortgage, here, your lender will register a higher amount than what you actually borrow. This could be for the property's full value, or some lenders will go up to 125% of your property's value.

In the future, if the value of your property appreciates, with a collateral charge mortgage, you don't have to rewrite your existing mortgage to borrow more money (assuming you qualify). This will save you from any costs associated with breaking your existing mortgage and registering a new one.

However, if you’re looking to switch your mortgage to another lender at the end of your term, you might be forced to discharge your mortgage and incur legal fees. Also, by registering your mortgage with a collateral charge, you potentially limit your ability to secure a second mortgage.

So what’s a better option for you?

Well, there are benefits and drawbacks to both. Finding the best option for you really depends on your financial situation and what you believe gives you the most flexibility. This is probably a question better handled in a conversation rather than in an article.

With that said, undoubtedly, the best option is to work with an independent mortgage professional. It’s our job to understand the intricacies of mortgage financing, listen to and assess your needs, and recommend the best mortgage to meet your needs. As we work with many lenders, we can provide you with options. Don’t get stuck dealing with a single institution that may only offer you a collateral charge mortgage when what you need is a standard charge mortgage.

So if you’d like to have a conversation about mortgage financing, please get in touch. It would be a pleasure to work with you and answer any questions you might have.

What Banks Won’t Tell You About Mortgage Financing

Tue, 19 Dec 2023 19:40:08 GMT

If you’re looking to buy a property or have a mortgage up for renewal, and you’re thinking about connecting with your bank directly, save yourself a lot of money and regret by reading this article first.

Here are four things that your bank won’t tell you, accompanied by four reasons that explain why working with an independent mortgage professional is in your best interest.

Banks have Limited Access to Mortgage Products.

Now, while this one may seem pretty straightforward, if you’re dealing with a single institution, they can only offer mortgages from their product catalogue. This means that you’ll be restricted to their qualifications which are usually very narrow. Working with a single institution significantly limits your options, especially if your financial situation isn’t straightforward.

In contrast, dealing with an independent mortgage professional, you will have access to products from over 200 lenders, including banks, monoline lenders, credit unions, finance companies, alternative lenders, institutional B lenders, Mortgage Investment Corporations, and private funds. Working with an independent mortgage professional will give you considerably more options to secure a better mortgage.

Banks Employ Salespeople, not Mortgage Experts.

Banks don’t employ mortgage experts; they employ salespeople. Banks pay and incentivize salespeople to sell their products. There is a fundamental misalignment of values here. If the bank incentivizes a banker to make a profit for the bank, how can they at the same time advocate for you and your best interest? They can’t.

Banks don’t have your best interest in mind. In fact, the more money they make off of you, the better it is for their bottom line.

However, when you work with an independent mortgage professional, you get the experience of someone who understands the intricacies of mortgage financing and will advocate on your behalf to get you the best mortgage. It’s actually in our best interest to assist you in finding the mortgage with the best terms for you.

Once your mortgage completes, we get paid a standardized finder’s fee by the lender for arranging the financing. So although we get paid by the lender, that lender has had to compete with other lenders to earn your business.

When you work with an independent mortgage professional, everyone wins. You get the best mortgage available, we get paid a standardized finder’s fee, and the lender gets a new borrower.

Banks Rarely Offer You Their Best Terms Upfront.

Banks are in the business of making money, and they’re usually pretty good at it. As such, banks will rarely offer you their best terms at the outset of your negotiation.

This is especially true if you’re looking to refinance your existing mortgage. With over half of Canadians simply accepting the renewal offer they get sent in the mail without question, banks don’t have to put their best rate forward. Instead, they rely on you to be ignorant of the process and will take advantage of your trust in them.

When you work with an independent mortgage professional, we don’t play games with rates and terms. Our goal is always to seek out the lender who has the best mortgage for you from the start of the process, and if there are any negotiations to be had, we handle them for you. There is no reason for us to do otherwise. In fact, the better we do our job, the more likely it is that you’ll be happy with our services and refer your friends and family.

Banks Promote Restrictive Mortgage Products.

As if it’s not bad enough that banks don’t offer their best terms upfront, they actually promote mortgage products that are restrictive in nature. The fine print in your mortgage contract matters; understanding it is challenging. Banks do what they can to make it hard for you to leave.

Now, if you’ve ever heard stories of outrageous penalties being charged, this is what’s called an Interest Rate Differential penalty (IRD). Each lender has its own way of calculating the IRD. Chartered banks are known for their restrictive mortgages and high IRD penalties.

When you work with an independent mortgage professional, we take the time to listen to your goals and assess your mortgage needs based on your life circumstances.

The best mortgage is the one that lowers your overall cost of borrowing. So not only will we walk through the cost of the mortgage financing, but we’ll also clearly outline the costs incurred should you need to break your mortgage before the end of your term. This might be the deciding factor in choosing the right lender and mortgage for you.

Working with an Independent Mortgage Professional is in Your Best Interest.

Banks have limitations to the mortgage products they offer. Working with an independent mortgage professional gives you mortgage options!

Bankers work for the bank; they are incentivized to make money for the bank. An independent mortgage professional advocates on your behalf to get you the best mortgage available.

Banks rarely offer their best terms upfront; they leave negotiations up to you. An independent mortgage professional outlines the best terms from multiple lenders at the start of the process.

Banks promote restrictive mortgage products that make it difficult to leave them. An independent mortgage broker will outline all the costs associated with different mortgage products and recommend the mortgage best suited for your needs.

So if you’d like to talk about the best mortgage product for you, you’ve come to the right place. Please connect anytime. It would be a pleasure to work with you.

Locking in a Variable Rate Mortgage

Tue, 05 Dec 2023 21:40:53 GMT

If you have a variable rate mortgage and recent economic news has you thinking about locking into a fixed rate, here’s what you can expect will happen. You can expect to pay a higher interest rate over the remainder of your term, while you could end up paying a significantly higher mortgage penalty should you need to break your mortgage before the end of your term.

Now, each lender has a slightly different way that they handle the process of switching from a variable rate to a fixed rate. Still, it’s safe to say that regardless of which lender you’re with, you’ll end up paying more money in interest and potentially way more money down the line in mortgage penalties should you have to break your mortgage.

Interest rates on fixed rate mortgages

Fixed rate mortgages come with a higher interest rate than variable rate mortgages. If you’re a variable rate mortgage holder, this is one of the reasons you went variable in the first place; to secure the lower rate.

The perception is that fixed rates are somewhat “safe” while variable rates are “uncertain.” And while it’s true that because the variable rate is tied to prime, it can increase (or decrease) within your term, there are controls in place to ensure that rates don’t take a roller coaster ride. The Bank of Canada has eight prescheduled rate announcements per year, where they rarely move more than 0.25% per announcement, making it impossible for your variable rate to double overnight.

Penalties on fixed rate mortgages

Each lender has a different way of calculating the cost to break a mortgage. However, generally speaking, breaking a variable rate mortgage will cost roughly three months of interest or approximately 0.5% of the total mortgage balance. While breaking a fixed rate mortgage could cost upwards of 4% of the total mortgage balance should you need to break it early and you’re required to pay an interest rate differential penalty.

For example, on a $500k mortgage balance, the cost to break your variable rate would be roughly $2500, while the cost to break your fixed rate mortgage could be as high as $20,000, eight times more depending on the lender and how they calculate their interest rate differential penalty.

The flexibility of a variable rate mortgage vs the cost of breaking a fixed rate mortgage is likely another reason you went with a variable rate in the first place.

Breaking your mortgage contract

Did you know that almost 60% of Canadians will break their current mortgage at an average of 38 months? And while you might have the best intention of staying with your existing mortgage for the remainder of your term, sometimes life happens, you need to make a change.

Here’s is a list of potential reasons you might need to break your mortgage before the end of the term. Certainly worth reviewing before committing to a fixed rate mortgage.

Sale of your property because of a job relocation.
Purchase of a new home.
Access equity from your home.
Refinance your home to pay off consumer debt.
Refinance your home to fund a new business.
Because you got married, you combine assets and want to live together in a new property.
Because you got divorced, you need to split up your assets and access the equity in your property
Because you or someone close to you got sick
Because you lost your job or because you got a new one
You want to remove someone from the title.
You want to pay off your mortgage before the maturity date.

Essentially, locking your variable rate mortgage into a fixed rate is choosing to voluntarily pay more interest to the lender while giving up some of the flexibility should you need to break your mortgage.

If you’d like to discuss this in greater detail, please connect anytime. It would be a pleasure to walk you through all your mortgage options and provide you with professional mortgage advice.

Credit and Mortgage Financing

Tue, 21 Nov 2023 21:40:56 GMT

Credit. The ability of a customer to obtain goods or services before payment, based on the trust that you will make payments in the future. When you borrow money to buy a property, you’ll be required to prove that you have a good history of managing your credit. That is, making good on all your payments.

But what exactly is a “good history of managing credit”? What are lenders looking at when they assess your credit report? If you’re new to managing your credit, an easy way to remember the minimum credit requirements for mortgage financing is the 2/2/2 rule. Two active trade lines established over a minimum period of two years, with a minimum limit of two thousand dollars, is what lenders are looking for.

A trade line could be a credit card, an instalment loan, a car loan, or a line of credit; basically, anytime a lender extends credit to you. Your repayment history is kept on your credit report and generates a credit score. For a tradeline to be considered active, you must have used it for at least one month and then once every three months.

To build a good credit history, both of your tradelines need to be used for at least two years. This history gives the lender confidence that you’ve established good credit habits over a decent length of time.

Two thousand dollars is the bare minimum limit required on your trade lines. So if you have a credit card with a $1000 limit and a line of credit with a $2500 limit, you would be okay as your limit would be $3500. If you’re managing your credit well, chances are you will be offered a limit increase. It’s a good idea to take it. Mortgage Lenders want to know that you can handle borrowing money.

Now, don’t confuse the limit with the balance. You don’t have to carry a balance on your trade lines for them to be considered active. To build credit, it’s best to use your tradelines but pay them off in full every month in the case of credit cards and make all your loan payments on time.

A great way to use your credit is to pay your bills via direct withdrawal from your credit card, then set up a regular transfer from your bank account to pay off the credit card in full every month. Automation becomes your best friend. Just make sure you keep on top of your banking to ensure everything works as it should.

Now, you might be thinking, what about my credit score, isn’t that important when talking about building a credit profile to secure a mortgage? Well, your credit score is important, but if you have two tradelines, reporting for two years, with a minimum limit of two thousand dollars, without missing any payments, your credit score will take care of itself, and you should have no worries.

With that said, it never hurts to take a look at your credit every once and a while to ensure no errors are reported on your credit bureau. So, if you’re thinking about buying a property in the next couple of years and want to make sure that you have good enough credit to qualify, let’s talk.

Connect anytime; it would be a pleasure to work with you and help you to understand better how your credit impacts mortgage qualification.

Purchase Plus Improvements

Tue, 07 Nov 2023 21:40:57 GMT

The best place to start the mortgage process is with a pre-approval. But once you’ve been pre-approved for a mortgage and you’ve been shopping with location in mind, what happens when you can’t find a suitable property?

There's no doubt about it; finding the perfect property within your price range is a difficult task, especially for first-time homebuyers. So, before buyer’s fatigue sets in, maybe you should consider adding the cost of renovations into your purchase.

Buying a property and including the cost of renovations into the mortgage is available through a program called purchase plus improvements. When purchasing a home, you can add the cost of home upgrades into your mortgage, making it a great option if you can’t find something move-in ready and aren’t afraid to do a little work!

But while this sounds simple enough, in all honestly, it’s quite the process. There are some pretty strict rules to follow, but nothing that you can’t handle with the guidance of an independent mortgage professional.

Here’s a quick overview of the process. Firstly, you must provide quotes to the lender ahead of time for the work you would like to complete. It’s good to note that the renovations will have to increase the value of the property accordingly. From there, the lender doesn’t give you the money to do the upgrades; you have to come up with that yourself. However, once the work has been completed and verified by an appraiser, the lender will reimburse you and include the money in your mortgage.

This program isn’t for everyone. Buying a home is a stressful endeavour in and of itself. The added stress of having to undertake renovations right away might not be a good idea. But then again, if you have the financial wherewithal to handle the cost of renovations and like the idea of making it yours from the start, then this might be just the option you’ve been looking for!

Please connect directly; it would be a pleasure to walk through the exact process and outline what securing a purchase plus improvements would look like for you!

Rate Change - September 2022

Wed, 07 Sep 2022 17:13:00 GMT

The Bank of Canada raised its key lending rate by 0.75% today.

This means most lenders will raise their prime rate to 5.45%. Watch the video below to learn how this will affect you and your mortgage.

If you have any questions or concerns, feel free to reach out.

How we are helping realtor partner's clients create more listings and deals by creatively solving problems.

Wed, 23 Mar 2022 23:11:00 GMT

In busy markets, the average consumer will assume that it's like a gravy train for us, but you and I know that couldn't be further from the truth...

In busy markets, the average consumer will assume that it's like a gravy train for us.

Money's constantly coming in, followed by days of long lunches and endless leisure activities as we make the easiest money we've ever made in our lives.

In reality, both you and I know that a busy market is not easy.

In fact, it's very hard work.

The challenges that we face today are much different than a different market climate and the challenges that we face today, some of them can become even more challenging and more frustrating than what we've encountered before.

I know it, and we hear it from realtors we talk to daily that the crucial lack of inventory makes a huge impact on their business.

Many of our buyers who are pre-approved for months on end, finally leave the market finding nothing to suit their needs after countless multiple offers.

After countless situations where they're outbid feeling frustrated and some never return to the market to purchase a home

Lately, I've been noticing from the clients we talk to that they are keenly unaware of some strategic ways that they can take advantage of the seller's market.

In fact, there's clients that we have right now that have things that you could be listing, that they don't even realize.

Below, I've articulated a few different ideas that I've found lately with clients that you may not have thought about and should give you a great opportunity to reach out to some of those clients, to see if you can find a few more listings to fill up the inventory that we're all lacking.

Number one:

Any buyer with an acreage, or maybe a lot that could be subdivided are potentially people that have not thought about selling off part of their lot.

Many people are daunted by what they assume is cost prohibitive for them to subdivide.

What if I told you that we offer mortgages that don't require income or credit, but short term loans specifically to allow somebody to subdivide their lot and to take the cost of which to pay out when they sell off the lot .

You could be approaching your clients that have bigger lots that could be subdivided with the idea that you could sell off their lot for them, and also arrange the cost of the subdivision in order for them to profit off the lot.

This is truly something that most people haven't even thought of.

Especially if you have buyers that maybe are feeling like they don't need that much more area to their property.

Number two

A very interesting thing that I saw last year was a lot of clients who typically have seen opportunities such as buying suited homes.

Of course, it makes sense. We all talk about the holy grail of buying a property with a mortgage helper that enables the cost on a monthly basis to go down and how much that increases your qualifying and makes it more appealing to the average buyer.

However, a new, a strategy evolved last year that we thought many of our clients taking advantage of.

That strategy was to split their house into two, essentially making it a duplex, selling off that one side.

And for most of our clients... becoming absolutely mortgage free, especially with the house price increase in the market.

We saw people paying for the cost to simply stratify their house into a duplex, being able to go from having a mortgage, to being mortgage free completely.

For many of these clients, they were not near retirement and were easily in their early thirties and now have a completely different financial picture.

If you have clients that have a house that could be split into a duplex and they are talking to you about not needing all that space, we offer loans that will give them the cost of both renovating and the legal cost to subdivide their property into two, without them them needing any income or credit.

Again, a short term loan where they are able to do that and end up in a much better financial picture.

And of course you have one more listing that you can sell in this busy market and actually a listing that probably is something that's easier to move and is something that is in the price range of many of the people that are being priced out of the market.

Number three

The folks that want to downsize, but don't know how.

It dawned on me a few weeks ago when we had a client call talking about his fear that he would sell his house and not find another house and essentially be homeless because he knew his house would sell fast, but he also knew it'd be very difficult to find a house and he could not put himself in that position.

But with his health failing and with his situation turning where his house was certainly not what he needed to be in.

And the idea where he'd have to go into something a lot smaller making complete sense, he was at a crossroads.

How would he do that?

He was a senior with a lower income.

Most of his wealth was tied up in his house as is often the case.

How would he be able to arrange that time period?

Did you know that we offer bridge loans for clients that have a home that they need to sell and are buying another home that they want to buy?

These loans have no payments and we pay them off when the home is sold.

So if you have clients that are downsizing, we can offer them the money to go into that home and wait to make all the timing work, so they have not one night of being homeless.

Certainly these are just a few of the ways that we are seeing realtors come up with listings where it seems like there isn't any.

I would always welcome the opportunity to sit down for a coffee with you and see if there's any way we can help make your business better.

As always, I'm available to help any of your clients at any point

How are people buying houses in this market... with these prices???

Wed, 23 Mar 2022 18:44:00 GMT

The market is crazy and prices are high, but there are some options that might fit your situation...

With the housing market being as crazy as it is, have you ever turned to somebody and said, "How are people buying houses?"

When you're always looking at the average price escalating, and you come and visit someone like me, have you ever wondered, "how are people paying these prices?"

I'm not here to dispute whether the market should be that high or whether different markets are pricing different incomes and families out... that's certainly a topic for another day.

However, I can say that everyday I see people qualify for mortgages and markets that are heavily priced with massive appreciation.

And obviously, the market continues to become hotter and hotter because there is a way for people to buy houses at this price.

So below, I've laid out a few things that you could do to get yourself into this market.

It doesn't mean you have to do them, and it doesn't mean it's something that you have to be willing to take on.

It's just some ideas, that we're seeing, that you could consider if that makes sense for your circumstance.

Number one: don't buy where you want to live by where you want to invest.

Way too many people these days are obsessed with making sure they buy a home in the area that they are living.

You don't have to go far to look at the news to see that house prices particularly in Metro Vancouver, are far out of reach of many working families, even far out of reach of a working professional.

But perhaps that's not the market you need to own real estate in anyway... at least not yet.

Perhaps it's not the spot you need to start with.

Perhaps it's not the place you get your foot in the market, perhaps is not all that bad to be renting in that market.

And perhaps it's not all that bad to not plan on buying that market.

Did you know that if you compare metro cities, a condo may be expensive in Vancouver, but you could buy a condo in a place like Calgary for $250,000 - $300,000.

Certainly you'll have some a little higher and some a little bit lower.

But the point is made there is a meaningful price difference from those two major cities in Canada.

And you can see examples like this all across the nation.

So perhaps instead of thinking about buying where you're living, rent where you live and buy where you want to invest.

So if you're having a problem getting into the market, don't think about buying where you are, think about buying a different market and getting your foot inside the housing market, at a place you can afford, at a place that makes sense for you and using that as a rental property until which time you may qualify in different markets.

This will allow you to get into the housing market and to acquire some appreciation without having to be disappointed while you chase high real estate prices in other places.

Number two , the amount of people that we see that are buying homes together has increased significantly.

In fact, just last month, I had people buy a home together where there was five friends involved.

Now this may seem quite whimsical or quite crazy.

But if you think about it, it's not as crazy or inconvenient as people might think.

Combining five incomes together surely gives a significant amount of buying power in a market and makes mortgage payments seem very small compared to what it would be by servicing the payment yourself after the qualifying perspective opens up a lot of doors and options on which you can pursue.

If you are in a life situation where you're single, or perhaps there is only you and your partner and you don't have kids, you could really consider buying a big house and joining up with a few friends to buy a home.

Now this is not a situation where you have to commit your life to it, but maybe this is a situation where you think about for the next three to four years you bought a home with three or four of your friends, you're each paying the mortgage payment and there's an exit strategy where you can appreciate some equity and go on to your own things down the road.

This enables you to get into pricey markets and markets that would easily be out of your price range due to your income but allow you to be in there and take advantage of appreciation in markets that would often be very difficult to get into. The data is clear that a lot of people are thinking this way.

It was only a short time ago that the popularized McMansions in Vancouver would happen where 2 families were buying gigantic homes in order to qualify for a bigger mortgage with each family taking one separate wing of the house.

These ideas are not as crazy as we think.

Number three , at this point, everybody's pretty familiar with the idea that you buy a home with a suite and that would allow you to qualify for more income that would allow somebody to service your mortgage payment and thus make your monthly payment and what you qualify for easier.

The problem is this is a much more common thing these days.

Suites are priced accordingly.

It's harder to find this stuff.

And, getting a mortgage helper is not as an easy as a way to get in the housing market as it once was just a few short years ago.

Perhaps is time to think a little out of the box.

If you're thinking about buying a home that has even just a little bit of property on it, perhaps instead of thinking about a suite, think about the idea that you could build a carriage home ,or you could build a tiny home or you could build something that is not already on the property.

Did you know that we offer loans without adding to your income where we could have we could have the construction costs added to your mortgage.

In many situations, this can take a home that is priced below what you would have paid for a suite at home and make it something where you can turn into income generating.

Number four , I haven't seen this trend start to pick up yet, but I'm very curious that this could be something that could be very worthwhile for our clients.

Over the past few years, we've seen more and more people go towards remote work and more and more companies allowing their client their employees to work from home.

Does this mean as pandemic restrictions are taken off, that everybody will go back to the office?

Does it mean that businesses will take a second look on whether they want to spend the operating income on huge office spaces that they once used?

My guess is that some typical office space retail spaces and industrial spaces will no longer be as desirable for businesses and you will see a lot of real estate that was once used for those purposes become vacant, and in many cases become screaming deals for people to purchase.

Now, why am I saying this?

You're looking for a house after all.

Well, perhaps you were to take one of these industrial buildings or retail spaces and renovate that into a residential home.

Not only would that be a very cool idea, you could get these properties for a significant discount.

Again, we could finance the construction costs.

And it'd be like having a blank canvas and perhaps buying a home like this would enable you to get into markets while paying a significant discount off of what could be available.

Again, it's not that you have to do any of these.

But it's important to be creative in order to take advantage of some of the opportunities and so it's important to think about other ways that you can get in get into the market.

As always, I remain available for us to discuss creative and custom strategies just for your situation.

What are we going to do with all the multiple offers this year?

Wed, 26 Jan 2022 22:23:00 GMT

(*What's your preference? Listen to the podcast above or read the blog post below)

So what is 2022 going to look like and how do we handle multiple offers differently?

So here we go. 2022 What's this year going to look like on the market?

Is it going to be another year full of multiple offers escalating house prices and buyers being frustrated not being able to crack into the market?

Is it going to be another year where we see limited inventory as a result of a lack of supply?

Where there isn't really that much to buy in the first place?

I mean, there's lots of predictions.

We all have our own opinions, but I suppose only time will tell.

All we know is what it is today.

And I can tell you a few things that we've learned that we are doing differently this year.

First, we are expecting there are going to be a lot of situations with multiple offers in particular, where people are meant to go firm, at least until this cooling off period is put into place by the government.

That means we have to be a lot more diligent about making sure our clients are ready to put in an unconditional offer.

A lot of brokers are scared to guarantee something like this.

A lot of brokers are nervous to give clients the go ahead on unconditional offers.

However, there's some better ways than what people have done.

The key here is to set up what's called Plan B financing.

It means that if, for some reason, the mortgage insurer doesn't approve you, if for some reason, you don't get approved by that lender that we’re 99.9% sure will approve you… what are we going to do?

That may include some type of approval with a B lender, or a higher interest rate or attaching a cosigner or adding security for the property.

All these things are things that we can put in place as a B plan so a client can go comfortably into an unusual offer, knowing that they do have at least guaranteed financing in some form.

This is a key difference to what people are doing in the marketplace.

You would not believe the amount of frightened phone calls we get from people that have firm offers that really didn't have financing organized in the first place.

It's safe to assume that, even though people are telling you they think they'll be okay.

Really, it's a scramble to the end making for a very, very stressful situation for our clients.

So our plan and our process includes for everyone who's offered, to put a “B” financing plan in place.

This is an important distinction and will make you look better to your clients and have a less stressful situation.

It also means that the client can comfortably offer in a situation not just unconditional, but I think to go above asking they can do so comfortably with us talking through that.

The second part that we might add to that would be to do an inexpensive pre-appraisal on a property through an actual appraisal.

Now we all know what property a should sell for and won't sell for - we will have our comparables, but why don't we have something that is legitimate from an appraiser?

That’s something we can rely on… that means that we could actually go a little bit higher on that property.

There's a way to do a pre-appraisal that can give some comfort around those values and comfort around going above asking (price).

Now, of course, if this cooling off period comes into play, all bets are off.

It means that we will have a week to sort out financing.

This means our mortgage approval assurance plan we've talked about many times, which means our pre- approval is going to come with a $5,000 guarantee to the seller is going to make all the difference.

If you don't know about that and want to schedule a time so you can have your clients take advantage of having $5,000 against the seller, please do schedule a call with me.

Lastly, time kills all deals.

We've heard loud and clear that a big issue with offers is that people do not have enough time to get the offer done.

Many banks, many brokers, many lenders are asking for a full one week for some locations and finding that those offers rarely even pique the interest of most sellers.

Now of course, people want to have adequate time, but what if there was a way to get the client extra pre- approved?

I'm talking about making sure we have the identification.

Making sure we have the voided check, making sure we have every bank statement.

What if there was a way for us to make that pre-approval work so that they can have a one day approval?

This is possible for a limited amount of realtors and a limited amount of clients on an ongoing basis.

We can offer approvals that are firm in one day. If you'd like to know how to take advantage of this and the strategy this uses, please schedule a time with me because we can do an approval in one day.

That's right.

Make an offer 24 hours later and remove the subjects - this is huge in this market.

Obviously these are just some of the many strategies we do and many are catered to your specific marketing needs.

We would love to have a chance to go through anything we can help you with this year.

It's going to be a busy one.

Let's be prepared!

How do we tap into the first-time investors hiding in your database?

Thu, 20 Jan 2022 22:15:00 GMT

(*What's your preference? Listen to the podcast above or read the blog post below)

Did you know that most first-time investors are right under your nose?

There is a lot of media around the idea that investors are scooping up rental units and houses all across the province.

But what if I told you that on our side investors are not some lucrative big city investor with millions, millions of dollars?

What if I told you they're not people that are Uber wealthy, but they're actually the clients you’ve served over the past 24 months.

In fact, our data shows that almost 80% of the clients we've served in the last two years are in a position since when they were first time homebuyers can now become first time investors.

And this is not a bad thing.

The idea that a first time homebuyer can build their wealth, especially when many of them tend to be quite young, by buying a rental property is extraordinary.

And we do ourselves a disservice by not reaching out to our buyers in the last two years and seeing if instead of selling a house, we can help them buy their second home.

Imagine if you can gain a whole book of clients without having your previous clients have to sell their home but having them keep what they have.

The only thing stopping you from doing that is most clients don't even know where to start.

But with huge equity gains in the last 24 months, the majority of people have enough equity for us to leverage their current home to buy a rental property.

With the increases in rental income being derived from most rental properties, it means that the vast majority of rental properties they will buy will more than cash will enable them to have a home that does not put any extra burden on their monthly family budget.

In fact, it's almost as if they'll be able to get a rental unit for free while letting the long term appreciation over 10, 20 or 30 years allow them to be in a better position than ever before.

This is a really about changing a family's financial position.

So who are these people we're talking about?

The majority of people that we've helped the last two years are first time homebuyers that put 5% down.

Now, they have enough equity to pull up to to pull enough equity out of their home by a refinance or adding a home equity line of credit.

The situation or strategy we would do would depend on the client - taking the equity out not putting any additional cash in and using that money to buy another home.

Now, another strategy can be looked at at this point, is a lot of people might think about that idea that they may have bought a condo or a townhouse and maybe now's the time to move to a single family home. In that scenario, they may turn their existing home into a rental and actually only put 5% down on the next house.

So we're not even talking about a huge amount of equity having to be pulled out.

In many cases, we could probably even see them get into a second home by putting 20 to $70,000 down depending on what they're buying and the market they're in.

So if you'd like help, we are currently offering a program where we can reach out to your past clients and see if we can help them strategize and build a realistic strategy on getting into their very first rental property with a little bit of guidance.

This is very, very easy for the vast majority of clients.

The other thing we're doing right now is that we are currently starting a newsletter based on hot investment properties around the province.

Now we invite you to submit some properties that we could show to our database that ranges from Northern BC to Vancouver Island to the interior to the Lower Mainland, really all throughout the province.

If you would submit those properties to us, we're putting them out in a weekly newsletter so they can be exposed to more and more people that may be looking for an ideal rental property strategy.

Additionally, we're setting this newsletter out to our existing clients and building even more clients that may be looking at it.

So, if you're interested in maybe getting a hold of some of these leads, and maybe being part of some of these leads please reach out to us on that as well.

As always, let us know any way we can help you.

What are you going to do with all that equity?

Thu, 20 Jan 2022 20:31:00 GMT

(*What's your preference? Listen to the podcast above or read the blog post below)

Valuations are in for 2022, but what can you do with it?

What are you gonna do with all that Equity from your recent home assessment?

There is no question that more and more people have been asking us about the surprise on a huge gains on their personal assessment.

First off, a lot of people misunderstand how these assessors are covered in the first place.

That assessment is based on the “sight unseen” value of your home from July of the previous year.

That means a system takes comparable sales in the area and determines the value based on July of last year in your marketplace.

It doesn't take into consideration any recent repairs you may have done, or any updates you've done to the property since its last sold.

The most recent data normally an assessment has on hand is the MLS data from the last time the house sold, so for instance, if your house has had major upgrades since you've last sold it or you've owned it for quite a long time, it is assuming that it's in original condition and that depreciation has been taken into consideration on your Property Assessment.

This makes the vast increase on your property assessments even more surprising, knowing that logically it means that assessments are much lower than what true values are.

Nobody will question the fact that between July and December of last year, values went up in nearly every market across Canada.

Now it, by no means, means that it is accurate… the system may have made errors.

The system may have used data that was incorrect.

It doesn't mean that your house is worth what is on the assessed value.

In fact, it doesn't mean it's accurate at all.

It certainly doesn't mean, as we hear from clients all the time, that your house has already went up 40% in value … and it doesn't mean your house automatically 30% of value is just a barometer of value based on a system last year.

It also definitely means you shouldn't try to appeal it to get that a little bit higher so you can pay more taxes.

Anyway, what it does mean and what is an unquestionable truth these days is that houses across Canada, and for that matter,

North America, are up in value.

And it means you have more equity in your house simply because houses have gone up in value vs a year ago… and by no other reason, whether you've done repairs, whether you've done anything to your house.

What you have to think about are just a few things.

First of all, a lot of people may look at this market and go, “is now the time to sell?”

“Maybe I should cash out and take that money.”

This could be a useful strategy, especially if you're thinking about downsizing or you're thinking about moving to a market that may be less expensive.

However, remember the market’s up everywhere.

So, even though you will sell high you will also buy high, so many of the gains that you will have achieved, you'll also see that when buying and so you'll more or less transfer your equity.

It doesn't mean it's a bad idea, but that it’s a worthy consideration.

In fact, this is the same logic that I would say to somebody that's selling a home feeling the market is depressed.

They're selling low but they're buying low as well.

Now, the worthy conversation is whether or not the equity in your home needs to be put to work.

We put up blogs and videos on this all the time.

But now is the time to review your equity options.

If you haven't already, even if you look at doing a refinance or did a refinance in spring or summer of last year, it may be time to relook at that again.

The first thing you ought to look at is if now is the time to do renovations.

If you are up for major renovations such as your roof, such as your siding, or things that are big ticket items, now's the time to get that cash at a very very low cost to you.

Down the road, it might be more difficult to finance those repairs that you inevitably have to do.

Of course, now it's also time to think we're updating that flooring, that painting, that floor plan, all that type of thing in your home.

But you can look at more unconventional ideas as well: Is now the time to add an addition?

Is now the time to add an extra suite?

All of those things will achieve extra income in your house that could more than pay for the nominal $50 $100 extra you're paying on your mortgage payment.

If we move off of renos, now's the time to look at any high interest debt that you might be carrying.

Maybe it's credit cards, maybe it's car loans, maybe it's student loans…

Now's the time to roll those into the mortgage at a lower rate.

Now you'll hear people say that this can be a problem in doing so.

As you don't really pay off the debt, you just move it.

Now a more higher level strategy on something like this is to say I'm going to continue to pay the same amount of money but have that money applied to my mortgage.

So I'm paying it off at a much more aggressive rate, meaning I'm going to pay it off faster and cheaper, paying less interest over time.

After that, you ought to look at the fact that there could be some opportunity to leverage your equity for other investments.

Certainly business investment can make sense.

Certainly there could be some investment you could be making in all types of things.

These ideas, with the help of a good qualified professional, may make sense for you.

But in particular, now may be the time to look at other real estate investments.

Maybe you're thinking about buying a piece of land.

You could maybe buy that piece of land with cash from taking the equity out of your home.

Maybe you're thinking about buying that second home, which might be a condo for kids to live in during the time they go to college.

Or maybe it's a home that your elderly parents will live in for a while.

Or maybe it's a second home you're going to be using for a recreational basis.

Maybe that's a beach home or maybe that's a ski home.

All of these things are options that you could utilize the equity without tapping into your hard earned savings or other investments you might have that could cause you very dearly when it comes to taxes.

It's a good idea for you to get a hold of us so we can review all your equity options and make sure that you are doing things that may make a lot of sense in order to achieve your wealth goals in the next coming year.

Don't wait until you've missed out on further market gains.

Let's make sure we go through some options today and see what makes sense for you.

Now of course, you may also decide that now's the time to take advantage of low interest rates and aggressively pay off your mortgage to be mortgage free faster.

That of course is an option too, but again this is why it makes sense to schedule a time so we can go through some great options and see what works best for you.

Schedule your call today!

Can you use your credit card for a down payment?

Wed, 12 Jan 2022 18:19:00 GMT

You can. But should you?

So here's an interesting question.

Could you use a credit card as a down payment when you're buying your first home?

Technically, this is allowed.

There's nothing restricting you from doing that.

We do use a standardized payment when you're using credit or something in order to finance your down payment, but there's nothing restricting you from doing that.

Now, whether or not that's financially going to make a lot of sense, use a 12% credit card for your down payment, that's an entirely other deal.

But the idea that you might use a credit line is certainly something that could be a good idea.

If you're using a credit line that might be 3%, 5% interest and you're borrowing a down payment of $20,000 to $50,000, that's definitely something that's both allowed, and you don't need to do something creative as some brokers and banks suggest, like making that into a gift.

It is totally allowed... it's called flex down, and you're allowed to do that when you're buying a home.

Now, you want to make sure your profile is very strong: That is, good credit, otherwise, good job tenure and history.
But other than that, that's totally allowed.

So if you're struggling for a down payment and you have a lot of credit handy, know you can use that for buying a home that you're going to live in and occupy and essentially get into something 100% down.

If you want any more mortgage scripts, please subscribe to our channel, or go ahead and share this with as many people as you can think of.

We'd love to share more tips with them.

If you have a question, feel free to comment below.

Maybe we can address those questions on one of these videos. Thanks so much. Have a great day!

Can you get a mortgage on a work visa in BC?

Wed, 12 Jan 2022 18:11:00 GMT

New to Canada? Worried that you can’t buy until you have residency?

It should come as no surprise to most people that Canada has some really great immigration policies, which means that a lot of people buying homes in Canada are new to Canada, or they've immigrated at some point, or they're still on some type of temporary visa or something like that.

A constant thing we get is people misunderstanding some of the policies around that.

So if you do not have your PR card... once you have your PR card and/or you're a resident of Canada, you can definitely get a mortgage under our programs.

Now we're probably going to look at some alternate credit, like if you don't have a lot of established credit in Canada, we're going to have to look at some landlord letters, some utility letters, some credit bureaus in the country that you originated from.

All those things are possible.

But what if you're not a permanent resident?

So if I'm on a work visa, can I still get a mortgage?

Yes, you can get a mortgage if you're on a work visa.

10% is usually the going down payment on that with some alternate credit and making sure that you have an extension on that visa and that type of thing.

Now here's another important thing to be aware of.

So you can get a mortgage if you are on a PR card, not a citizen.

You can get a mortgage if you're on a work visa.

Now here's the type of mortgage that you can't really get very easily... is if you're a Canadian citizen living overseas, working overseas and not residing in Canada, that's a much harder mortgage to get.

So generally where the mortgages are easy to get are people that are living and working in Canada.

The way to think about that, too, is that a bank wants to think about, if you don't pay, they want to be able to track you down.

If you're out of the country, that's a very difficult thing to do.

So if you're on a work visa, you can get a mortgage.

If we can help you out with that, please reach out to us.

Please also share this video with anyone you know where this information can be helpful to them.

And, please subscribe to our channel and we would be happy to give you as many mortgage tips as possible.

2022 property assessments are in: Are you rich beyond your wildest dreams yet?

Wed, 12 Jan 2022 18:01:00 GMT

What will you do with all the equity?

Happy New Year!

I'm just touching base on a big subject these days, and that is property assessments.

What's causing property assessments to be, in some cases, 30 and even 40% higher than the previous year?

We're seeing people come in with house values that were 725K in 2021, come up with like 1.1 million for 2022.

So what is your property assessment based on, and is that something we're even using?

It's worthy to know that, most of the time, we don't even look at property assessments when it comes to lending values.

In fact, there's maybe 5% of the time that it even has a factor on what we use for the value, so that's really important to know.

Your property assessment value is based on July of the previous year, site unseen.

So that means if they haven't been inside your house, haven't looked inside, it's based on the average values in the neighborhood.

So it means that, if you haven't sold your house for a long time, or you bought it 40 years ago, and you've updated it, it's not going to make a difference.

Also, if you have never updated it and maybe the house isn't as good a shape, your property assessment is affected by that as well.

So it means that, a lot of times, property assessments are either much higher than the true value or they're much lower.

We see a lot of people have varying degrees of how they feel about this, but that's how it is at the end of the day.

It's based on July of the previous year's average site unseen values based on the neighborhood.

Now, it's important to know, because a lot of people think busy markets are just stuff flying off the shelves, which is true.

There is lots of things that are selling very quickly, but it also means there's not a lot of inventory.

And so what happens is that you might get a situation where there was only a very few houses in your neighborhood that could have been sold.

And a house could be not very good comparable, but moving that value up.

But even though these might not be entirely accurate, it's worthy to know the property values are up.

There's no question about that.

A 30 or 40% increase on property values is meaningful across the province.

So if you want to know what way you can do the equity... is it time to sell, is it time to refinance to clean up some debt?

Is it time to do some renovations and expand it, put an addition on, add a suite, add a garage or anything like that?

Is it time to buy another property?

An interesting thing you'll see is that condo values actually have not soared that much.

And so if you're buying a rental condo, it'd be a great time to do so because they are still at a very, very affordable amount of money.

Is it time to buy a condo?

Is it time to look into investing in other places?

All those options, you can do with your equity.

With the rate still being at 1.25%, obviously your money could be used somewhere else in a more effective way.

So if you have questions, please reach out about your property assessment and ask how we can help you and what we can do to help you with your equity.

As always, please share this with your friends, subscribe, and leave a comment, if you can.

If you have any questions, we'd love to help you.

Have a great day!

How to buy a rental property for less than 5% down

Wed, 12 Jan 2022 17:47:00 GMT

20% down isn't the only way...

Certainly a really great question I get is how to get into rental properties.

Now, rental properties being required that you have 20% down when you're buying it as an investment property.

But, did you know there's a way to get into 5% down without having to move into the property?

One way is through our second home or family home program.

So, if I'm buying a property, let's say for example, and the most prevalent example would be, I'm buying a home because my kid is going to college.

And I'm going to buy a condo by the college or university. He or she is going to live in it during college, and after he/she is done that could turn into a rental property.

I'm going to use it as a rental property.

That's a totally allowable 5% down deal.

It's a little bit harder to qualify for, but it's allowed.

The second thing might be that I have parents or a family member that's moving into a condo.

I buy a condo for them to live in.

That's a 5% down deal, a "second home" type of thing so I don't have to move into that.

So those are at least 2 ways you can get into rental properties for less than 20% down.

If we can help with that, please do reach out to us.

Please like our channel, subscribe to our channel here https://www.youtube.com/channel/UCMm4ANhnIibo6LirxLkCAGw, and share with as many people you know.

Thanks so much.

Have a great day.

Are there special mortgages for realtors, brokers and commissioned sales people?

Mon, 20 Dec 2021 20:06:00 GMT

It's interesting, really when you think about it, both me and yourself, work towards helping people achieve homeownership,

whether that's a home they're going to live in, or an investment property that's going to benefit them financially for many years to come.

It's amazing that many of our clients have an easier time being approved for a mortgage than we do, even when we are sometimes in a much better financial position.

So what is available in terms of mortgages for commissioned salespeople?

In particular, what is available in terms of mortgages for people like me and you, realtors and mortgage brokers?

Did you know that there are actual mortgages that exist with the idea of allowing us to benefit from many tax advantages, like keeping money in our corporations, or writing off a significant amount of our expenses so that we are still able to buy a home while claiming much, much less on our taxes.

Sure, there can be some variety in interest rates, but even the very worst mortgage can be as low as two to 3% of our interest rate, and enables you to verify your income by only showing your commission statements and six months bank statements.

So let's review.

Here are a few ways that a realtor can qualify for a mortgage.

Now this applies if you're buying a primary residence or if you're buying rental properties.

Yes, we do go off your taxes by using a two year average of your income but many times this gets us nowhere near what's needed to qualify for a mortgage.

But we also have programs where we look at the retained earnings in your company or what net income you have after taxes and some of that income is added back allowing you to qualify for much more than your T1 General would allow.

After using those expenses, if we don't get you to a healthy amount of money, or perhaps you've had some of your better years this year or previous years and you have not yet claimed a tax return or done your corporate financials for those years to show, we can still qualify you by basing it on your current year and your obvious success you've had thus far.

We have many lenders out there that are using a simple six month bank statement showing the deposits of your commissions to qualify you for a mortgage. Now as I mentioned previously, this does not mean and exorbitant interest rate. This does actually mean an interest rate that is often 2 to 3% enable you to take advantage of a very, very good market and to get into a house and get into some savvy deals yourself.

As always, it makes the most sense to work with someone really qualified to navigate different properties and different loan programs to allow you to take advantage of what you're seeing in front of your eyes... clients taking advantage of.

So if we can help you with a realtor or mortgage, please let us know as we love helping people just like us!

Schedule a time on my calendar here to explore options:

https://calendly.com/joel-20/discovery-zoom-call

Are you ready for a financial reset?

Mon, 20 Dec 2021 19:42:00 GMT

As we come to the end of the year, a lot of people are going to take stock of their current financial situation.

Have they saved enough money this year?

Have they paid down enough debt?

Have they put themselves in a situation where they're moving forward financially?

Or, maybe they're looking forward with anticipation to the New Year...

Maybe there is a job change that's on the horizon.

Maybe there is a kid heading off to college that they have to financially prepare for.

Maybe retirement is on the horizon.

And now is the time to make sure that that can be done in a financially acceptable way.

Whatever it is, people are taking a look at their financial situation and making adjustments and changes to make sure they are in the best position possible.

Obviously, we're in a unique situation in the world where people have seen major benefits on our current world situation and major disadvantages that may have affected them as well.

Now's a great time to look at doing some type of financial reset as it relates to your mortgage and all debts.

What does a financial reset look like?

Number one, what do you have for debt right now?

If you have any debt that's involved with credit cards, that's not being paid off a monthly basis and I'm paying eight 9% or even higher at 20 to 24%...

...if you have loans, maybe there are loans that are somewhere in the eight to 10% range or even in the four to 5% range, whether they be student loans, car loans, or just personal loans, with interest rates being below 2% and in many cases mid 1%, you are going to save a ton of interest by rolling these into the mortgage.

With the vast amount of equity you would have achieved with the escalating housing market, now is a time where there's an opportunity to do so that may not have existed one year ago or even six months ago.

Now is the time to look at putting that debt into your mortgage to save interest but also to vastly improve your monthly payment.
We are seeing clients that are having their monthly cash flow go up by as much as $1500 to $2,000 a month.

How much of a difference would that make your life if you had to pay $1500 to $2,000 per month?

That's only one way of looking at it.

For some people it's just about saving the interest.

Maybe they keep their payments the same but have that loan payment be paid at a much lower interest rate, which means they will save interest and ultimately pay that loan off much much faster.

The second way so may look at a financial reset, is maybe now's the time you're going to look at updating your real estate.

What I mean by that?

Now's the time to look at renovations.

Maybe now's the time to put in those big renovations that you've been deterring because you haven't had enough money... now's the time you have equity to do so.

So if you are within a few years of improving the roof, updating your septic and sewer systems, updating your furnace, etc., now would be the time to take money out to do that.

Perhaps your home would benefit by being completely redone...

...both kitchens and bathrooms make a ton of difference to your value.

Maybe now's the time you look at adding a suite to the home, adding extra income on a monthly basis.

Now's the time where you can do that without having to put any extra cash flow in, even possibly doing an expansion of your home can also be in the cards to add extra money and the renovation, and cost of doing so would more than pay off even though you're increasing your borrowing load.

The third way you may be looking at a financial reset would be using your equity towards investment.

Now, maybe this involves buying another property.

Many people are surprised to know though the equity in their house they may buying the property and putting none of their own money in!

Maybe that involve buying a rental property.

Maybe if you're looking at your kids going into college, maybe you buy them a property that they're going to live in during college that will then become a rental property when they are finished.

In many situations like that, you could do that for as little as 5% down.

Maybe you could be looking at other investment opportunities.

With a wise strategy, you could look at investing into stocks or businesses or other types of investment opportunity that can have a greater yield than the very, very low interest rates you're going to pay on your mortgage.

All of these options are things to look at when you're looking at a financial reset.

If I can help you with any different options or just reviewing your particular situation to see if there's opportunity to do some financial reset, please do reach out.

You could literally see yourself being a completely different situation and going to the New Year in a much, much better way than you've ever seen before!

The easiest way to discuss any strategies is to schedule a time on my calendar here:

https://calendly.com/joel-20/discovery-zoom-call

How Much Does a Mortgage Broker Cost

Thu, 02 Dec 2021 20:52:00 GMT

The best things in life are free?

Okay, a really great question that we get a lot is that, how much do we charge as brokers?

How much does it cost for you to come to us, have us move around you to lenders to lenders, and present your borrowing request in front of different banks, credit unions, and other types of trust lenders, and that type of thing.

Mortgage broker services are 100% free.

How it works is that if you go into the TD Bank or you go into your local credit union, you don't actually pay to talk to the teller, you don't have to pay to talk to the loans person, but you know some way, somehow those folks are getting paid from operational costs.

They're getting a wage, all that type of thing.

So, that operational cost goes towards us as a broker because you're not going to go inside of a branch in the vast majority of cases.

You're not going to need to have them do the work, so that's not an additional cost.

So when you're using us, we are charging you nothing whatsoever and the bank's paying as a separate transaction.

But it's not something where you're getting paid for, it's getting slid in, or it's affected your rate.

It is a situation where we are getting that cost that would normally go towards a bank employee.

Now here's where it gets really, really great.

When you legally go and talk to an independent financial planner or you're going inside of your bank, they are not legally obligated to work or look out for your best interests.

If you go inside TD, they can't tell you to go to CIBC because they're going to be a better deal.

That would make them lose their job.

However, the opposite is true of a mortgage broker.

If we are always favoring one lender over another lender, that means that we are in violation of what our licensure recalls.

We have to be looking for the best possible deal for the lender.

This is why we will often hear us talk about the idea that even if you think or even if we're going to place you with your existing lender, your existing bank, it's worth it to come to us because we have to make sure that they are actually offering the best deal.

It's very common for people to get better deals to their own bank through us than it is when they go directly into the branch.

Anyway, I hope that helps you out to know that our services are free.

There are certainly some private loans we do that we charge broker or lender fees, but those are the vast majority and very, very extreme circumstances, and those cases truly we can do what no one else can do.

So if you have any questions, please reach out to us.

We have loved to answer any of your mortgage questions as well as if you could subscribe to this channel, like our post, and share with anybody you know.

We'd really appreciate that.

Thanks so much, have a great day.

Don't forget to subscribe to our Youtube Channel here:

https://www.youtube.com/channel/UCMm4ANhnIibo6LirxLkCAGw

And if you need to discuss any strategies, you can schedule a time on my calendar here:

https://calendly.com/joel-20/discovery-zoom-call

Who I Am Listening to for Different Kinds of Investing Advice

Mon, 15 Nov 2021 17:41:00 GMT

Who I believe is worth listening to when it comes to unique investment strategies

Okay, so as people have more and more money, we're often asked, "What do we do for different types of investments?"

And, "Were are we putting our money?"

And, "Where do we get advice from?"

Now I'm a big advocate for the idea that people use professionals and get information and do a ton of research in order to get the best return on their money, in order to get the best information and to have the best situation possible.

So here's a list of some of the people I'm listening to on a variety of different investments that could be helpful for you.

Number one: Sports card investing. I love sports card investing!

Did you know that the average sports card has a 30 to 35% return year over year?

It's one of the most lucrative investments out there.

You'll be surprised at how many very wealthy people consider this a core part of their investing strategy.

My "go to" advisor on this is SportsCardInvestor.com.

On this site and Youtube Channel, you can find weekly tips.

You can find secrets on how to get into the hobby on how to start your collection and different strategies.

In particular, the principal person behind this is someone who has invest in tech companies and knows the business side really, really well.

So Sports Card Investor is the best YouTube channel for me when it comes to investing.

Number two: gold, silver and commodities.

Obviously people are looking more and more on physical gold and silver. It's a hard thing to understand, but I found that it is a really good way to hedge yourself against inflation.

My “go to” video advisor right now that I'm watching is a guy by name of Silver Dragons

On his page he has a list on different types of chunk server you can buy, different ways you can buy it, how to understand “spot”... it's got a lot of really basic videos that I find UBER helpful on things.

Number 3 - What about real estate?

Well, you don't have to be around very long to be familiar with Rich Dad Poor Dad.

Rich Dad's advisor, Ken McElroy, has a YouTube channel full of great real estate investing tips.

His takes on things far exceed most people you'll find on the internet.

I'm looking at Ken McElroy’s stuff for how to get into real estate investing, different strategies, different opportunities….

This is definitely the person that I would go to if I want to look at some things and as far as real estate investing.

Number 4 : stocks…

Stocks have still proven to be a worthy investment to go into.

I'm a big fan of “Stock Moe”.

Stock Mo is teacher.

He goes into a variety of different stocks... why he picks the stocks he does...

He has some options on penny stocks, dividend stocks, and things that he has gotten into as well.

So Stock Moe is the YouTube channel that I go to when it comes to stocks.

Oh, and of course I would be remiss without mentioning...

Number 5 : cryptocurrency!

A lot of people have gotten into cryptocurrency and man is that a confusing field in order to look into.

The YouTube channel I love to look at you when it comes to cryptocurrency is Lark Davis.

Lark Davis goes to into how to build a portfolio around different crypto coins and also goes into some great information both on what’s happening currently in the market as well as some great beginner tips.

So Lark Davis is my “go to: when it comes to crypto currency.

This is my "go-to" list when it comes to investing in different types of investing and creative investment strategies... What are some of yours?

How much do I qualify for?

Wed, 10 Nov 2021 18:58:00 GMT

Cash Offers? Why Not Try This Instead?

Fri, 05 Nov 2021 17:15:00 GMT

Instead of just going with the all-cash offer, give your buyers options and be a real hero in their eyes!

Okay, obviously, these days we hear a lot about people talking about cash offers.

Obviously, a cash offer seems like it's gonna be a pretty good thing to take advantage of.

I mean, what could go wrong with a cash offer?

Why couldn't that be the best possible client?

No conditions... no stress... no worries!

But are you missing an opportunity, having cash offers?

Those cash offer buyers may be people with a good amount of down payment to buy a home for cash, but they may not have a lot of monthly income coming in. Maybe moving to the area means they can take advantage of a higher amount of monthly cash flow.

Let me explain.

If a client comes in to a situation where they can pay cash for an $800,000 house, I realize that sometimes that number may be much bigger or a little bit smaller. But let's say it's $800,000.

Let's say instead of them buying the house for cash, you advise them to buy a home and put down 600,000 leaving a minuscule $200,000 mortgage and taking that other $200,000 and putting that into an investment property where they put $200,000 down as a down payment.

Now, there's a number of scenarios that might evolve here.

But on most properties without math, we are talking about that person because of the size of their down payment and because of of rental income, netting an additional 1500 to $2,000 a month.

How much of a hero would you appear to them by advising the client who probably may be at the end of their working years and not having the ability to earn extra dollars by going and getting a job or working some elusive side hustle?

How good would you look to suggest that they could put 1500 or $2,000 extra in their pocket?

Now many clients may still decide that the idea of having a mortgage at this age is not for them, but just the advice of giving them the option is going to make you seem like much smarter than your "average Joe".

Additionally, on top of that, for the clients that do take advantage of this, you're looking at more business for you, more business for me and a much, much better situation for the client where they're able to have monthly cash flow that significantly impacts their life.

So the next time you see the words "cash offer" come across your desk, or a client saying, "don't worry we'll go all cash", tell them there might be another option that they should maybe just consider in order to have a better quality of life.

I mean 2 deals are always better than one.

Do you have cash offers currently? Do you have challenging real estate transactions? Did you have someone get turned down recently? Let us have a look at your clients' situations and offer a fresh perspective to help you get more transactions done!

Tricky Doc requests

Thu, 28 Oct 2021 00:01:00 GMT

TRICKY DOC REQUEST What to do, when you don't know what to do.

1. I have no agreement and have been separated for years.

If you are separated or divorce, we are looking for an agreement that confirms that you pay no spousal support, child support and that all your assets have been divided equally. If none of these things would have applied you can reply to that doc request that you wish to sign a stat dec at the time of closing as none of this applicable.

2. I can’t get a job letter.

Every lender these days need to verify your employment by way of a job letter from your employer. Whoever does payroll will be able to provide you with one. The letter should be signed have a number in which a lender can to verify. The letter itself must state your start date, # of guarnateed hours every week or your yearly salary as well as your hourly wage.

3. I don’t have access to Tax Returns

You can get your tax returns from your bookkeeper or accountant or whoever assembled your taxes. Your tax returns are not the same as your notice of assessments that just tell us how much income that you have made. Your tax return must contain all the pages, which will tell us how much any business or rental property grossed and its applicable expenses. We have to get all the pages of the return to be able to use it.

4. Where do I get a property tax statement?

You can simply call your applicable municipal office, they can supply you with one by email which will be sufficient.

5. Where do I get a gift letter from?

We don’t need to have a gift letter signed till after we get you approved. Every lender will have their own form.

6. Do I have to sign all the contracts?

Yes, it's important that you know exactly what to expect and when to expect it, so please make sure to address any questions that you have.

7. Do I need to show the downpayment if I haven’t found a house yet?

Different sources of downpayment matter. We need to know that we can verify where your downpayment funds are coming from. We can’t wait to see funds in your account, but we need to know where we are coming from. Anti-money laundering insists that we can give a history of every account that is sourcing the downpayment as well. We can’t just accept a screenshot of your account

8. I work for myself- do I need a job letter?

If you are an owner of a company regardless of how you get paid, we will need to see your last two years tax returns as well as your last two years company financial statements. You won’t need a job letter though

9. Do you really need a void cheque?

The void cheque is the account which will be debited the mortgage payment. We can wait on that, but we will need it.

10. Can you give me a rough idea on what I qualify for

There are some many way we have to calculate qualifying. How much you work, for how long you have worked, how many hours, how much downpayment, and where you are buying are all questions that can make a meaningful impact on your application and change how much you qualify for. This is why we have to get all the information and documents before making a decision.

The 34 coolest online workouts that you can do from home during COVID-19

Sun, 19 Apr 2020 21:04:00 GMT

1. Fitness Blender: https://www.fitnessblender.com/videos

This husband and wife team’s websites contain a plethora of workouts. Workouts contain a total body, strength, pilates, kickboxing. The workouts contain a variety of different options for time, so its something you can use regardless of how much time you have. They also have some paid options for some more custom plans.

2. Do Yoga with Me: https://www.doyogawithme.com/yoga-classes

The majority of the classes are filmed outdoors in BC. Do Yoga with me, contains yoga classes for all different levels. It also has options for kids as young as two years old and a section for seniors. Another added feature is they have a lot of yoga videos that target specific areas that you may want to target.

3. Orange Theory Fitness: https://www.orangetheory.com/en-us/athome/

This science-based workout around getting your heart rate to go through several different zones to achieve maximum results has “At-Home” workouts that contain cardio and strength training. All of the workouts contain options for household objects you can use for the weight component.

4. Upside-Down Pilates:

https://www.youtube.com/user/jefforig/videos

Video workouts here contain various pilates workouts for all levels. Workouts are designed for at home, or even when traveling. Many of the workouts are quite short, and there is also some to go with foot injuries.

5. HASfit:

https://www.youtube.com/user/KozakSportsPerform

This particular workout channel has videos designed for all types of fitness goals. There are great videos for HITT, Dumbell, and also age-specific classes for seniors and teenagers for working out.

6. BodyArt: https://www.bodyart-studios.com/take-class

BodyArt was designed by Ryan Daniel Beck, a choreographer, it combines Yoga, Dance, Mindfulness, and Strength Traning. They hold live classes on Facebook at 7amPSt, and Instagram at 4:30Pst for free.

7. Rumble: https://www.instagram.com/p/B92fcZfHPHJ/

Rumble, a popular boxing studio, hosts daily Instagram live classes with Cardio and Bodyweight Workouts. Classes vary in times, so best to check their schedule daily.

8. Rowhouse: https://www.facebook.com/rowhousego/

Rowhouse is exactly like it sounds. A workout with rowing machines. They are hosting daily facebook lives classes for free. Some workouts require a mat and some small weights.

9. Barry’s Bootcamp: https://www.instagram.com/barrys/

The popular fitness gym combines weight training and treadmill work. Daily they are broadcasting Instagram live sessions with trainers from around the world. They have also opened up an online store to allow you to order anything you need to work out from home- most of their classes are bodyweight though.

10. Ta Bo Fitness: www.youtube.com/channel/UCMGIp3jifsoufZv_y8_c1Qg

These free workout videos combine cardio and martial arts. The workout claims to burn up to 120 calories per workout and last in length from 30 minutes to one hour.

11: 567 Broadway: https://www.567broadway.com/

This is a musical workout to your favorite Broadway shows. All workouts have cardio and strength training and the are currently free on youtube.

12. Box and Flow: https://www.instagram.com/boxandflow/

Box and Flow combines boxing and yoga into one workout. They are currently streaming free classes via Instagram Live at various times throughout the day.

13. Fhitting Room on Demand: https://ondemand.fhittingroom.com/

The fhitting room offers HITT workouts with strength building through Kettlebells. You can currently receive a free 30 day trial for on-demand workouts.

14. Mayweather Boxing and Fitness: https://mayweather.fit/

Currently they are offering free Instagram workouts with cardio and boxing. They also have several ongoing challenges that you can be involved in.

15. Spartan Unbreakable: https://life.spartan.com/tag/be-unbreakable

Designed by the Spartan Company responsible for the Spartan Events, they are currently uploading a family workout for every day. The site also has quite a bit of content around fitness, nutrition, and relationships.

16. 9Round: https://www.facebook.com/9RoundOfficial/

The popular kickboxing workout offers a Facebook Live streaming workout at 3 pm PST every day.

17. MySwimPro: https://myswimpro.com/

MySwimPro has workouts for swimmers to use on dryland and inside of the pool. It’s a downloadable app with other content that can be accessed as well

18. Nike Training Club: https://apps.apple.com/us/app/nike-training-club/id301521403

A brand that needs no introduction. The Nike training app is free and has over 185 workouts that you can stream.

19. Fly London: https://www.instagram.com/fly_ldn/?utm_source=ig_embed

This London yoga and barre studio offers hip hop yoga classes and sweaty barre classes. Currently, they are streaming their classes on Instagram Live and posting them on YouTube. Sessions last for 45 minutes.

20. Sweaty Betty: http://www.sweatybetty.com/us/free-online-workout-videos

Sweaty Betty is a UK-Based Fitness Brand. They have loads of free fitness videos, varying in length and also in type of workouts (yoga, barre, HITT, and boxing).

21. Zuzka Light: https://zuzkalight.com/

There is a ton of content here. In the free workout section, you can find bodyweight, kettlebell, HITT, and jump rope workouts. There is also a ton of great content in the form of blogs, and some great custom options.

22. Blogilates: https://www.youtube.com/user/blogilates

This streaming channel has Pilate workouts set to music. All workouts are easy for anyone to do, and the channel has many other videos around clean eating and self-esteem that are excellent too.

23. The Fitness Marshall: https://www.youtube.com/user/TheFitnessMarshall

The Fitness Marshall workouts are set to popular music. All workouts are short and cardio-based.

24. Tone it up: https://www.youtube.com/user/ToneItUpcom

This streaming workout offers toning workouts. All workouts allow you to use household objects and you combine many short ones into a playlist to design a great workout.

25. SLT: https://www.instagram.com/sltnyc/channel/

SLT stands for strengthen, lengthen and tone. Currently, they are offering Instagram Live classes for free.

26. Aarmy: https://www.instagram.com/aarmy/?hl=en

Streaming on Instagram live, these boot camps are not for the faint of heart. They usually have four live classes in the morning.

27. FightCamp: https://joinfightcamp.com/

FightCamp is online virtual booking workouts. In addition to working out with online instructors, their app allows your progress to be tracked and improved upon.

28. Y7 Studio: https://www.instagram.com/y7studio/

Y7 Studio is a yoga class that is down in the dark to candlelight and hip-hop music. They are currently offering Instagram classes live for all levels.

29. Physique57: https://physique57.com/

Physique 57 is offering a free trial to have online access to all their studios. Physique 57 is a barre workout, and all the needed materials are things that you will have access to in your house.

30. Johnson and Johnson 7 Minute Workout: https://apps.apple.com/us/app/j-j-official-7-minute-workout/id784797900

Johnson and Johnson has created a free app full of seven-minute workouts that you can get maximum results from.

31: SoulCycle’s Off the Bike: https://soul-cycle.com/news/offthebike

Soulcycle is currently offering free Instagram classes that focus on bodyweight, cardio, and mindfulness. No equipment needed.

32. “The Class” https://theclass.com/digitalstudio

Taryn Toomey’s workout class combines both plyometric and calisthenics with popular music. There is a mindfulness component, that means it’s a great workout that also helps with stress and anxiety. Currently, there is a two- week free trial.

33. Solidcore: https://www.instagram.com/solidcore/channel/

Solidcore is offering free Instagram live classes. The workout combines Pilates, strength training and sliders to take the place of the reformers.

34. ConBody: https://conbody.com/

Conbody is a workout developed by Coss Marte – when he was in prison. The workout is designed to be done in small places and uses only bodyweight. You can get a subscription for $9/month.

Getting a Mortgage During COVID-19

Thu, 16 Apr 2020 21:13:00 GMT

Houses are still selling and people are still looking to buy. Others are looking to improve their interest rate, and finally, there are many people looking to access current equity in their by refinancing.

Here are some answers to some common questions that we are seeing.

1. I heard rates are really low and that they will go even lower.

Rates went down in the time period that we call “Pre-local” COVID-19. That means when we were still leaving our house, but everyone knew it existed and it was wreaking havoc on China’s economy. China being 20% of the world economy means that this had an effect on interest rates driving them down really low for a few days. Once COVID-19 become local, which means we had local restrictions, you couldn’t leave home and places were shut down, interest rates went back up. This is because the banks all of sudden had less money to lend. Best way to understand this is that over a period of a short amount of days, people dumped their money out of the stock market and went and stuffed their money under a mattress. There is a bit more to it than that, but that’s more on less what happened. Now, the government is giving money to banks through various methods which means that this will at some point lower fixed rates down.

2. I see that the Bank of Canada has lowered rates three times. How does this affect my mortgage?

The Bank of Canada lowering rates does not directly create any difference to your mortgage. The overnight rate is a rate at which banks borrow money from each other. This affects lots of things but does affect the prime rate that lenders can offer a client. Thus, if you have a variable rate when banks lower the prime rate you variable rate goes down. It is not automatic that the overnight rate changes the prime rate though.

Currently, most banks passed on the savings to clients, so if you had a variable pre-march, the last thing you should do is lock-in.

If you haven’t seen your payment or interest rate go lower, don’t worry that letter is coming from your lender.

3. Should I defer my mortgage? Isn’t it free money?

Deferring your mortgage is not free money. You take whatever your payments are and they are added to your principal. This means that whatever money you add to your mortgage you are now paying interest on the extra. Does that mean its a bad idea? If you are out of work and can’t make your mortgage payments, it is still a much better option then the alternatives that exist.

4. Can I still get approved for a mortgage if I’m not working?

It really depends on your situation, if it is likely that you will go back to work as soon as restrictions are lifted. It’s quite possible. Additionally, if you are self-employed, we are still looking at your situation from what you made historically.

5. Should I get pre-approved, if I want to buy much later in the year?

Yes, you should because we can get you ready and make sure there are no issues that might come up later.

As always, everyone’s situation is highly personal, so feel free to reach out so we can go through your specific options.

The Ultimate Guide to COVID-19 for Kids: 135 things that are free or almost free right now!

Sat, 11 Apr 2020 21:14:00 GMT

Starfall : www.starfall.com

This is a reading app that is mostly for Pre-School and Kindergarten Kids. The free option gives you access to various reading games and songs. There is a paid option as well which has some other options. A lot of focus on learning sounds and letters.

Endless Alphabet: https://apps.apple.com/us/app/endless-alphabet/id591626572

This app costs $8.99. It is primarily to learn your alphabet with some sight words as well. It does not seem to be a desktop option though. Geared towards Pre-K. There is a follow up for kids as they get older called, Endless Reader: https://apps.apple.com/us/app/endless-reader/id722910739

Skybrary: https://www.levarburtonkids.com/skybrary

The is a program that is done by Levar Burton of Reading Rainbow. The idea is that kids travel through all these lands in a hot balloon, and there are books to read along the way. It works on a desktop and also on a tablet. There is a free trial on right now for one month. Cost is $4.99 a month, with a cheaper option if you buy for the whole year. It is for younger readers, but a pretty interactive option.

Writing Wizard for Kids: https://apps.apple.com/us/app/writing-wizard-for-kids/id631446426?mt=8&ign-mpt=uo%3D4

This is only for use on a device. It costs $4.99. Kids can write and trace words on a tablet or phone, You can build your list and the list can be printed out so kids can trace with an actual writing utensil as well.

Ollie’s Handwriting: https://apps.apple.com/us/app/ollies-handwriting-phonics/id647775236?mt=8&ign-mpt=uo%3D4

This is another writing app only for a device, You write on a virtual chalkboard. There is a free version that unlocks part of the Alphabet. To get the whole thing it costs $2.99. It’s a good app that helps kids work on reading and writing at the same time. Ollie the Owl does videos to show kids how to write each letter. It seems to be mostly for younger kids.

Intro to Cursive: https://apps.apple.com/us/app/montessorium-intro-to-cursive/id687552892?mt=8&ign-mpt=uo%3D4

This is an app that teaches kids how to start doing handwriting. The app is free, and kids get to practice their handwriting by writing in the virtual sandbox as things disappear.

Epic: https://www.getepic.com/

This is a massive virtual library. Currently, its free for all teachers, so most kids have been given access to this through their teachers. If they haven’t passed this link on to their teachers, and they will get full access. It’s also free for parents for 30 days. After that it costs $8.99. It’s all geared for kids 12 and under. It has quizzes after books to test comprehension. A great feature of this is that it has both fiction and non-fiction. You can access it through a device or a computer.

Quizlet: https://quizlet.com/

This can be used via a device or computer. Its a study tool where you can study, use flashcards, and take quizzes on a variety of subjects. Good program to see where kids are at and to see what they need to work on. Its mostly free, but costs 99 cents for the whole version. It’s very useful for all ages – even high school kids.

Spelling City: https://www.spellingcity.com/app.html

This is exactly how it sounds. Spelling tests for all age levels. Works well on both desktop and devices. You can select the level of the child, and also there are some games to help them as well. There is a real focus to teach kids how to use the words in a sentence. The premium membership is $34.95 per year and you can sign up to five kids.

Khan Academy: https://www.khanacademy.org/downloads

This program has several different courses, all of them are free. Courses range in subjects from Math, Science, Engineering, Economics, Finance, Arts, Humanities, etc. There is a separate app for younger kids (age 2-7). Most of the content is a video of each specific lesson. Lots of great things, especially if kids are older or need some help on getting ready for college. The kids app allows them to play different games – mostly centered around Math.

SplashLearn: https://play.google.com/store/apps/details?id=com.splash.kids.education.learning.games.free.multiplication.reading.math.grade.app.splashmath

This app is for younger kids (K-5) to learn math skills. The app is free. Everything is centered around different games from addition, subtraction, fractions, multiplication, and other math concepts that kids need to learn at that level.

Animal Math: https://play.google.com/store/apps/details?id=com.eggrollgames.animalmathkindergartenfree

This is a free app, It is mostly suited for younger kids under 8. There are about 100 games on the app. The games focus on counting, addition and subtraction and basic geometry.

Prodigy: http://prodigythegame.com/

This is a game where kids conquer different levels and lands- all relating to math. There is a free version of this, but the premium version is $8.95 per month and goes down if you get a longer subscription. It can be played on a desktop and a device, the program just looks like an awesome video game

Math Blaster: http://www.mathblaster.com/

This is a math game that is built for all ages. There is both a free version and a paid version, the paid version is about $8 per month. This is a sci-fi themed game, as opposed to Prodigy where it involves dragons, and kingdoms, etc. This one is also built for older kids then Prodigy is.

Dragon Box Math: http://www.mathblaster.com/

This game is built for ages 12 and up, You learn Algebra and you build a dragon and unlock chapters while you build your dragon, Costs 7.99 per month. It’s also not a desktop them, but an app for devices.

Scholastic Learn at Home: https://classroommagazines.scholastic.com/support/learnathome.html

Scholastic has built daily lesson plans. The ages start at Pre K- Grade 9. There are lesson plans for four weeks and they include videos, quizzes, handouts on a variety of topics. Everything is 100% free.

Code.org: https://code.org/

Code.org is a website that has online classes teaching kids to code. There are several different classes on building dance parties, writing games, working with A, I, etc. Best of all this is all free. On Wednesdays, every week at 10 am/PST, they have live classes called “Code Break

PBS Learning Media: https://www.pbslearningmedia.org/

Everyone knows about “Channel 13”. They have developed free lesson plans for Pre K- Grade 12. Subjects include Science, Math, Reading, Language Arts, and Social Studies.

The lessons include videos, games, crafts, and printable sheets to go with the lessons.

Cosmic Kids Yoga: https://www.youtube.com/user/CosmicKidsYoga

Cosmic Kids Yoga is a youtube channel that has various lessons for kids of all ages. Sessions last for 10 Mins- 30 Mins. They have cool themes like Frozen and Moana. They also have some sessions around relaxation and mindfulness.

“Wow in the World”: https://tinkercast.com/shows/wow-in-the-world/

This is a podcast that investigates factual world-stories. Each episode has a printable sheet where you can write some questions before and after and work through the episode. Each episode lasts for about 20-30 minutes.

Mystery Science: https://mysteryscience.com/school-closure-planning

Mystery Science has lessons that are 10-45 minutes in length for ages up to Grade 5. Some lessons are just videos, but most have an activity where you can print out everything that you need and instructions are provided with the lessons. Most everything is free, but you do need to sign up for an account. It appears that some of the resources are mostly free due to COVID-19.

DIY: www.diy.org

DIY is a website full of different projects kids can do. Currently, you can have a 14 day trial for free, and it costs about $20 a month after that, Course typically have video instruction, and then kids have the chance to do the task themselves. Courses include action, photography, animation, app development, backyard farming, beekeepers, beat-making, fashion design, first aid, home repair and a lot more, There is also an online community for kids to interact with as well.

Cool Math Games: https://www.coolmathgames.com/

Everything on this site is free, and it has many small math games. They include online sudoku, puzzles, and chess.

National Geographic for Kids: https://kids.nationalgeographic.com/

National Geographic has plenty of lessons, videos and games around different science subjects. Of course, much of the content is around different animals.

Brain Pop: https://www.brainpop.com/

Currently, they have free access to everyone by signing up for an account. Brain Pop has lots of different subjects, with quizzes, challenges, games, and worksheets. Particular topics include science, social studies, arts, engineering, tech and science

Minecraft Education: https://education.minecraft.net/

This program uses the popular Minecraft Game to teach creativity, collaboration and problem-solving. When you register, you get a free coding lesson and also an option for a free trial.

Ken Burns: In the Classroom: https://www.pbslearningmedia.org/collection/kenburnsclassroom/home/

This is a collection of about 300 Documentary films. Mostly geared for Grades 4 and Up. With each documentary comes activities(some of which that can be printed) and various discussion questions.

Poppins at Home: https://learn.mommypoppins.com/pages/courses

Poppins at Home has daily zoom classes around yoga, STEM Classes, arts, lego, 3D Modeling, cooking, etc. There are some course that are free, and some that cost as much as $30,

Legoland: https://www.legoland.com/llcbuildingchallenge/

Every Wednesday, there is a new builder video uploaded, where kids are given a tutorial on building a new lego structure. All previous videos are on the page as well. In addition to the videos, there are weekly coloring sheets, maze challenges, word searches, silly stories, brick- tac-toe, and trivia.

Heal The Bay: Knowledge Drops: https://healthebay.org/knowledge-drops/

Heal the Bay holds webinars on Monday, Wednesdays, and Friday at 1:30 PST. During the webinar there are scientists, experts who speak about different marine environment topics. Sessions last for an hour, and you can ask questions – as well as there is some fun polls and videos added. It seems to be pretty good for all ages, but they do recommend it for Grade 3-8.

Upcoming topics include sewer systems, plastics, jellies, sharks and rays and much more!

Lincoln Center Pop-Up Classroom: https://www.facebook.com/pg/LincolnCenterNYC/videos/

Classes start at 7 am PST (via Facebook live) on Weekday Mornings with creative lessons around the many art forms you can usually see at the Lincoln Center. Previous classes have been writing a song, creating puppets from homemade objects, and dance lessons.

VIrtual Whale Lessons with Nona the Naturalist: https://www.youtube.com/channel/UC6rlK4oYOdj9loOw9dpM64g

The lessons are not live, but every day Nona the Naturalist posts a video about whales with fun facts. It’s kind of like doing virtual whale watching.

Quogue Wildlife Refuge: https://www.facebook.com/quoguewildliferefuge/

Quogue Wildlife Refuge does Facebook Live Episodes on Tuesday and Thursday at 10 am Pst.

The segments are short and have previously discussed various topics like worms and composting.

DC Kids Comics: https://www.instagram.com/dckids/

Every weekday at 10 am on Instagram Live DC posts different videos. Most of the videos are on how to draw different DC Superheroes, but some videos have been about different skills for making your comics.

Gatorland Virtual School of Croc: https://www.facebook.com/gatorland/

Live at 7 am PST on Facebook Live every day, there are videos about Crocodiles and Alligators.

The program streams live from Gatorland Orlando

Monster Art School with Steve Ellis: https://www.facebook.com/SteveEllisArtist

There are two daily art classes for free on weekdays via Facebook Live. The first one is at 11 am PST, and is for Beginners or ages 8-13. The second class is at 12 PST for Intermediate or ages 13 and up. Steve is a comic book artist, so lessons are on dragons, samurai and other cool things. After the lesson is done, the lesson is posted on YouTube.

Chuck Jones Center for Creativity: https://www.chuckjonescenter.org/going-virtual

There are three free classes a day on zoom. Times are 11 am, 1 pm, and 3 pm PST. Classes are drawing classes where you learn to draw character likes Bugs Bunny and Marvin the Martian.

The Broad Museum: https://www.facebook.com/thebroadmuseum

The Broad Museum uploads a new family art workshop every Friday. Most workshops just allow you to use stuff around your home and model a current artist.

Rockefeller Center: https://www.rockefellercenter.com/whats-happening/2020/3/29/spring-sunday/

There are programs live at 8 am PST on Sundays via Facebook, Instagram, and YouTube. Every week there is an art workshop, live music, puppet theater, DIY arts and crafts, and other demos

National Theater London: https://www.youtube.com/user/ntdiscovertheatre

Every Thursday, the National Theater of London streams on of their previous plays. They stream them at 7 pm London time, so it’s worthy to note that it’s available in canned version after the fact for one week, Plays are streamed through YouTube, and the schedule indicates upcoming plays include Treasure Island and the Twelfth Night

Bob Baker Marionettes: https://www.instagram.com/bobbakermarionettes/

The Marionettes upload a new puppet number at 11:30 PST on Wednesday and Saturday mornings. Videos are posted on Instagram live. In addition to this, on their YouTube Channel there are tutorials on how to make the puppets.

Alvin Alley American Dance Theater: https://www.alvinailey.org/performances-tickets/ailey-all-access

The popular dance theater broadcasts free live streaming performance at 4 pm PST on Thursdays. In addition to the performance, there are Q and A’s with the dancers and also videos on different dance techniques to learn.,

The Show Must Go On: https://www.youtube.com/theshowsmustgoon

Andrew Lloyd Webber is releasing one of his musicals for viewing every Friday night for 48 hours. Shows to be released include Joseph and the Technicolor Dreamcoat, and Cats.

LeVar Burton Reads: https://twitter.com/levarburton

Levar Burton reads live via twitter,. Mondays, 9 am PST for Children. Wednesdays, 3 pm PST for Young Adults, and 6 pm PST on Fridays for Adults. A bonus would be to listen to the podcast which has a lot of great episodes.

Goodnight with Dolly: https://imaginationlibrary.com/goodnight-with-dolly-read-aloud/

Dolly Parton reads aloud via Facebook, Instagram, and YouTube, It happens every Thursday at 4 pm Pacific.

Shakespeare Sonnets with Patrick Stewart: https://www.instagram.com/sirpatstew/

Every day Sir Patrick Stewart posts a video of him reading a Shakespearean Sonnets.

Narwhal and Jelly: Ben Clayton: https://www.facebook.com/narwhalandjelly/photos/a.1539246199430573/2371292832892568/?type=1&theater

Every Monday at 9:30 PST, Ben hosts Instagram Lives on how to draw Miximals. Classes are 20-30 Minutes long. Videos are posted on Facebook.

Code Monster: http://www.crunchzilla.com/code-monster

This is a cool little free game that teaches kids how to write code.

Swift Playgrounds: https://www.apple.com/swift/playgrounds/

This is a free apple program that teaches kids how to write code. It can be downloaded on a Mac or an IPAD.

PPO: https://www.youtube.com/channel/UCNvT4F1eFg2mRI5VFL5y7jA

PPO is a streaming YouTube Channel that teaches kids Origami.

Garfield Park Conservatory: https://garfieldconservatory.org/resource-center/digital-tours/

Garfield Park in Chicago is currently offering online tours with images, videos, and audio features.

Museum of Science and Industry Chicago: https://www.msichicago.org/science-at-home

On their website, you can participate in “Science at Home”. There are some videos, but it is mostly ideas for activities that you can do at home.

Field Museum: https://www.fieldmuseum.org/educators/learning-resources?

This website is centered around Chicago’s Field Museum. There are videos and entire lesson plans. Interesting topics around ecosystems, world culture and earth science.

Mac Barnett: https://www.instagram.com/p/B9ueK7AnSO6/?utm_source=ig_web_copy_link

Children’s author Mac Barnett does a storytime via Instagram Live every day at noon PST.

Met Opera: https://www.metopera.org/

Every day starting at 4:30 PST, The Metropolitan Opera streams one of their previous performances. The performances are available for 20 hours afterward.

Cincinnati Zoo Home Safari: https://www.facebook.com/cincinnatizoo

The Cincinnati Zoo features a different animal and activity to do at home at noon PST daily.

Museum of American Revolution: http://www.amrevmuseum-virtualtour.org/?utm_source=news-mark-image&utm_medium=email&utm_campaign=news-mark-image-email-03172020

Currently they are offering immersive virtual tours. It’s a little easier to navigate than some of the options out there, and there is an audio guide that plays while you are touring.

Children’s Museum of Manhattan: https://cmom.org/learn/cmom-at-home/

COMO posts daily activities and instructions on how to do them. Most are simple art projects, but easy to use nonetheless.

Treasure Trunk Theater: http://www.treasuretrunktheatre.com/online-classes/

The classes are geared towards kids under six years of age. Featuring lots of music and activities, it happens every weekday at 12:30 PST.

The Laboratory Collective: https://www.facebook.com/thelaboratorychi

Free live interactive wizarding science classes. Classes happen online on Facebook at 8:30 PST.

The Arboretum: https://www.arboretum.org/learn/kids-families/

The Arboretum is a LA- Based Botanical Garden. Every week on Monday and Thursdays they are posting new outdoor nature-based activities. Some recent classes included Flower Dissections and Bug Hunts.

Sesame Street: https://www.sesamestreet.org/caring

Of course, there are tons of videos, games, and printable activities. There is also a great section on learning about COVID19.

Children’s Museum of Indianapolis: https://www.childrensmuseum.org/museum-at-home

Their “Museum at Home” program has Facebook live videos on science experiments, and even things like dinosaur digging. They also are posting different lists of activities that you can do at home.

Burke Museum: https://www.burkemuseum.org/burke-from-home

The Burke Museum in Seattle offers weekly lessons plans on prehistoric animals, like dinosaurs and whales. Some great crafts can be printed out, as well as other worksheets.

There is also a pretty interesting podcast to go along with everything.

Virtual Purple Museum: https://www.cdm.org/virtual-museum/

The Children’s Museum in San Jose has created new activities that they email you twice weekly

They also offer facebook live classes at 10:30, 11:30, and 1:30 PST. Additionally, their website has tons of archived at-home activities and videos for kids.

San Diego Zoo Global Academy: https://collabornation.net/register/sdzk12

San Diego Zoo offers courses around their various zoo topics. They are geared for kids that are 13+ or older. You are not even allowed to register if you are younger than that. There are 22 different courses around different animal groups and species. All of that is free.

Adler Planetarium: https://www.adlerplanetarium.org/learn/resources/online-resources/

Quite a few different few resources on Astronomy here. They have both a podcast and a blog, as well as all their virtual exhibitions open. There is also a spot to collaborate on research and do different projects at home.

Monterey Bay Aquarium: https://www.montereybayaquarium.org/animals/live-cams

Currently, they have 10 live web-cams, which include Shark Cams, Jelly Cams, and Ocean Cams. There are also other free resources to go with the different cams.

National Baseball Hall of Fame: https://baseballhall.org/discover/safe-at-home

Their “Safe at Home” program has virtual exhibits, a virtual tour of the whole museum, loads of YouTube VIdeos, and also some very cool activities that you can print out at home.

Union Square Play: https://unionsquareplay.com/

Every day one family activity, one kids’ video and one event for parents are uploaded online. They also allow to access all of the previous content as well.

Activity Hero: https://www.activityhero.com/

Activity Hero has online classes around sports, coding, science and art. Some of their classes are free and some have a fee. The classes are a way for small businesses around North America to still offer their content while they may be closed. There is also a good mix of live and canned content.

Northern Lights LiveStream: https://explore.org/livecams/aurora-borealis-northern-lights/northern-lights-cam

This is a Livestream of the Northern Lights based out of Churchill, Manitoba.

The camera is located right under the aurora borealis making for an amazing light show.

San Diego Zoo: https://kids.sandiegozoo.org/

You can view webcams of animals, play games, watch videos, and download the many free activities.

Skate Like a Girl: https://www.youtube.com/skatelikeagirl

“Skate Like a Girl” uploads a new video every Wednesday on different skateboarding warm-ups. They also have plenty of videos on how to different skateboard tricks as well.

Museum of Flight: https://pages.museumofflight.org/museum-at-home

Their “Museum at Home” program has virtual tours of the museum and also virtual tours inside all the different aircraft- there are 150!. You can walk through Air Force One, Concorde, and many others. There is a section for family activities which has many stem workshops, activity sheets, coloring sheets, and online pages. There are also challenges that kids can compete in.

Beanstalk: https://beanstalk.co/

There are interactive kids classes for ages 6 and under. All classes are free, but you do need to sign up. Classes range in topics from art, science and other fun subjects.

Created by Crayola: https://created.crayola.com/at-home-learning-home/homelearning

Crayola offers free family projects every Monday. In addition to this, there are a lot fo virtual art classes and there are some options for things you can do with Crayola products that are online.

Encantos: https://www.encantosbrands.com/learning/

Encantos is a free program for younger kids that combines many schools around culture, language, geography and history. There is also an option for kids to learn the information in a bilingual and learn in both English and Spanish.

Go Noodle: https://www.gonoodle.com/

Go Noodle offers movement and mindfulness videos for kids. All videos are free.

Marco Polo: https://www.marcopololearning.com/special-offer/RDT30

Although you have to sign up, MarcoPolo World School has offered all of its STEM lessons for free during COVID-19. They have video lessons with activities and are geared for kids under 7 years old.

Noggin: https://www.noggin.com/

Noggin is an app that has been developed by Nick, Jr. Currently, they are offering a 60 Day Trial. Noggin has free episodes of some of the most popular pre-school shows including Peppa Pig, Paw Patrol and Dora the Explorer.

Online Ocean: https://ocean.org/learnonline/

The Vancouver Aquarium’s online program has plenty of online activities and printouts.

The content is for all ages of kids right to 18. In addition to this, there are Facebook live talks, and live streams. All live streams are archives to access at any time.

Other Goose: https://othergoose.com/welcome/#welcome

Other Goose is an online curriculum for charter schools for kids ages 2-7.

Currently, all content is free for three weeks as long as you register a profile.

Tinkergarten: https://tinkergarten.com/athome

Tinkergarten is learning for younger kids completely based outside.

Currently, the are providing free weekly activities, how-to guides, and also Facebook Live sessions on Tuesday at 8:30 PST.

Scribd: https://www.scribd.com/readfree?utm_source=readfree

Scribd is the “Netflix” of books. You can find any book on anything you are looking for.

They have both books that can be read online or audiobooks. Scribd also has a full slate of every magazine you have ever heard of that you can read it well. Free for 30 days, and $8.99 after that.

America’s Test Kitchen: https://www.americastestkitchen.com/kids/home

America’s Test Kitchen has created a weekly plan around different classes and activities. Classes are around Kids’ cooking and also the science of cooking like “What Makes Fizzy Drinks Fizzy”.

Best Robot Ever: http://www.bestrobotever.com/

Best Robot Ever is a company that offers some of the coolest kids podcasts out there.

Shows include Earth Rangers, Tumble (A science podcast), Young Ben Franklin and many more

edHelper: https://www.edhelper.com/teacher-education/Daily-Free-Learning-Workbooks-for-Teachers-to-Share-with-Parents-while-Schools-are-Closed-Kids-will-actually-do-these.htm

edHelper offers free printable workbooks for all subjects and all ages of kids.

Elementari: https://www.elementari.io/

Elementari is a program where kids write their own stories and also re-tool existing stories. It always them to also work with learning how to code. They are currently offering free premium access during COVID-19

HeartMath: https://www.heartmath.org/education/e-learning/heartsmarts-adventure/100k-coherent-kids-initiative/

HeartMath is giving away free access to its HeartSmart Adventure. HeartSmart teaches kids ways to deal with stress, develop a good diet, sleep better and learn self-care.

Highlights Kids: https://www.highlightskids.com/

Highlights Kids – based on the magazine has tons of free resources for kids of all ages. There are quizzes, online games and activities, jokes, polls, and much more.

Legends of Learning: https://www.legendsoflearning.com/

Legends of Learning allows kids in Grade 3-8 to learn Math and Science through a super-hero designed video game. Currently, it has free access, and you can either let your child navigate and play at their own pace, or parents can set-up a customized learning plan that sends them reports of the progress.

Peanuts Gang Family Resource Gallery: http://ymiclassroom.com/lesson-plans/peanutsfamily/

Everything is based around Snoopy and Woodstock, and the lessons are all based around space. It is all printable in PDF format, and there are lessons for kids K-8.

Peterson Automotive Museum: https://www.petersen.org/

There are tons of videos about how cars are made, and there are offering free virtual tours every day at 11 am PST. There are also live stream video activities around all things automotive including building your race cars. There are also coloring sheets that can be printed or colored digitally.

The Fab Lab: https://www.thefablab.com/

You have to sign up for access, but its’s free. Currently, they are live streaming a free episode a day, which comes directly to your email. All topics are around STEM and other creative lessons.

We Love Weather: https://weloveweather.tv/for-kids/

Every day “We Love Weather” posts a different science video and experiment that kids can try all around the weather.

Time for Kids: https://time.com/tfk-free/

Time Magazine is offering free access to “Time for Kids’ and “Your $” Financial Literacy Magazine, There are also quizzes and discussion sheets. There are also various age groups to choose from,

Typing Club: https://www.typingclub.com/

This is a program for kids to learn how to type. There are free and paid versions. The program tests your typing skills until you get five stars. You don’t need to sign up for an account, but if you do it does track your progress.

Rich Kid. Smart Kid: http://richkidsmartkid.com/

Based off of the popular “Rich Dad, Poor Dad” book series. This site contains four different games to teach kids about money and financial literacy. There are different age groups to choose from including Pre K through high school.

Storyline Online: https://www.youtube.com/user/StorylineOnline

Storyline Online has a huge stream of videos of different celebrities reading children’ books.

Daily Lunch Doodle with Mo Willems: https://www.facebook.com/watch/?v=2576730175772671

Mo Willems is the artist-in-residence at the Kennedy Center Education Center. He hosts daily doodling at 10 am PST via the Kennedy Center’s website.

Wendy MacNaughton: https://www.instagram.com/wendymac/?hl=en

Best-selling children’s illustrator Wendy MacNaughton hosts art classes every weekday via Instagram Live at 10 am PST.

The Louvre: https://www.louvre.fr/en/visites-en-ligne?fbclid=IwAR2RJXkLra0RA3Az0QgghPK4AH0XLqvs_nbvHqFQ-3pLV0bpxaJ-ai9xXj0

Most of the exhibition rooms and galleries are available for virtual tour right now. Visiting the museum is pretty overwhelming anyway, so its a good way to see a lot of the exhibits.

Smithsonian’s National Zoo: https://nationalzoo.si.edu/webcams

The National Zoo offers free animal cams of most of their animals, and also educational activities for kids grades K-5.

Museum of Modern Art: https://www.moma.org/

MOMA is currently offering virtual exhibitions, free online courses, and family art activities.

The Paley Center for Media: https://www.paleycenter.org/paleyathome-on-youtube/

The Paley Center is currently offering updated content every week. On Wednesdays at 7amPST, is Paley Family Comedy Block, where you can watch the best comedies that are suited for the whole family. On Thursdays, they offer at 7 am PST conversations with the best thought leaders in media, technology, finance and entertainment.

The Guggenheim: https://www.guggenheim.org/plan-your-visit/guggenheim-from-home

The Guggenheim offers virtual tours with audio guides. There is a series on the actual architecture of the building as well. They have some great artist profiles as well.

New-York Historical Society: https://www.nyhistory.org/education/history-home

In addition to all the virtual tours, the New-York Historical Society has online social studies classes focusing on American History for two different age groups a day. The classes are for K-12, and include reference to much of the exhibits in the museum. Several other programs are accessible by signing up for their weekly emails.

Intrepid Air & Space Museum: https://www.intrepidmuseum.org/education#2

The Intrepid is offering daily online classes relating to space. They are for all age groups, but you have to register two days in advance to get an email with the materials that you will need. There is also a cap of 300 people per class.

The American Museum of Natural History: https://www.amnh.org/

The museum is offering various online activities and games. There are also live videos and events posted every day. A recent example was live bird watching. The museum itself focuses on the study of “Ology” which means the subjects are around Anthropology, Archaeology, Climate Change, Genetics, BioDiversity, Physics and much more.

Whitney Museum of American Art: https://whitney.org/whitney-from-home

The Whitney currently offers all its exhibitions online with audio guides. There also videos with conversations with the artists that can be watched on-demand.

National Museum of Mathematics: https://momath.org/upcoming-events/

MoMath is offering virtual field trips and online programs. Some programs cost a nominal fee. Every course is very cool, there are even some for adults. Topic include MindBenders, MathPlay for Pre-Schoolers, Games of Little to no chance, and many other very cool things.

New York Hall of Science: https://nysci.org/home/science-behind-coronavirus/

NYSCI is currently offering a virtual exhibit relating to diseases, viruses and more specifically COVID- 19.

SpyScape: https://spyscape.com/

SpySpace is the New York Museum around all things relating to spies, espionage, and the art of deception. Their online activities include exercises developed by the Head of Training of British Intelligence, and different stories and experiences around spy skills.

The British Museum: https://britishmuseum.withgoogle.com/

The British Museum has over 8,000,000 artifacts. The museum is dedicated to human history, art and culture. You can certainly view the museum online and browse through the many floors and areas and there is an audio guide as well. Its’ home to artifacts like the Rosetta Stone.

Rijksmuseum: https://artsandculture.google.com/partner/rijksmuseum

The Riijksmuseum is Amsterdam has 8,000 objects relating to different parts of dutch history. The entire museum can be viewed online. One of its most famous works is “The Night Watch”.

Schaubune: https://www.schaubuehne.de/de/seiten/online-spielplan.html

Schaubune is Berlin’s very famous theater. One play is streamed nightly from 6 pm- midnight or 9:30 am PST- 3 pm PST.

Sadler Wells: https://www.sadlerswells.com/whats-on/2020/digital-stage/

Sadler Wells is a major dance theater in London. Currently they are streaming one play per week. Many of the plays are family-friendly, such as Rumplestilskin. They also have courses on dance and family dance workshops.

Windsor Castle: https://www.royal.uk/virtual-tours-windsor-castle

Windsor Castle is the Queen’s official residence. Currently, they are offering free virtual tours.

The White House: https://artsandculture.google.com/partner/the-white-house

The White House is the private residence of the US President, and also holds all the administration of the President. You can currently tour the White House virtually.

Bread Ahead Bakery: https://www.breadahead.com/live-bake

World-famous Bread Ahead Bakery is offering free baking classes at 2 pm. Being that the bakery is based in London, Instagram classes start at 6 am PST.

Grammy Museum: https://grammymuseum.org/museum-at-home/

The Grammy Museum has taken all of its exhibits online. Current exhibits include Whitney Houston, John Prine, and Drawing to Music. They also have a lot of canned videos regarding some of their most famous interviews.

Sydney Opera House: https://www.sydneyoperahouse.com/digital.html

The Sydney Opera House has made a ton of content free. This includes live performances for all ages. Content for kids includes learning how to make classical music, learning set design, how to perform circus arts and many podcasts and archived videos.

Museums Victoria: https://museumsvictoria.com.au/museum-at-home/

Museums Victoria in Australia is offering “Museum at Home”. It’s a combination of several different museums. There are exhibits from dinosaurs, to Stem, to a great exhibit of immigration in Australia.

Massimo Bottura: https://www.instagram.com/massimobottura/

Famous Italian Chef, Massimo Bottura is offering free “Kitchen Quarantine” Instagram live at noon every day. His videos are saved on his Instagram account.

Masterclass: https://www.masterclass.com/

Masterclass has some of the coolest classes you will find online. Learn comedy with Steve Martin. Cooking with Gordan Ramsey. Fiction writing with R.L. Stine. Basketball with Step Curry.

There is so much good content. Currently, they are running live Q & A with many of their instructors as well. It cost $240 for a yearly membership.

Superbook: https://us-en.superbook.cbn.com/

Superbook is a faith-based program that has bible stories, games, and tv episodes. You have to create a login, but all the content is free.

Orange-Theory Fitness: https://www.orangetheoryfitness.com/

The popular science-based workout is offering free at-home workouts. You don’t need to have any equipment as you can use objects from home for the resistance portion of the workout. Lots of it is easy for kids to do as well.

ConBody: https://conbody.com/

ConBody is a workout designed by ex-convicts where you do workouts in small spaces with only your bodyweight. An online membership is $9/ per month. The workouts can be scaled for kids, but the language is a little rough sometimes, so keep that in mind also.

Young Woodworkers Club: https://www.youngwoodworkers.com/

Every month you receive a woodworking project for about $10. All of the instructions and materials are included in the box, and kids can learn how to use basic tools such as hammer, nails, and screws while assembling their projects.

Sign School: https://www.signschool.com/

Sign School is 100% free and is an online course to learn sign language. It’s very easy to understand and for kids to work through at their own pace.

Canadian Museum for Human Rights: https://humanrights.ca/covid-19-information-and-updates

Located in Winnipeg, the Canadian Museum of Human Rights is dedicated to different historic human rights issues as well as issues that we currently face. Currently, there is the ability to view the museum virtually and also do online activities that relate to the exhibits.

Nikon: https://www.nikonevents.com/us/live/nikon-school-online/

Nikon is currently streaming for free all of their online photography courses.

New York Yankees: https://www.mlb.com/yankees/fans/kids

Yankees Kids offers new games to play outside, quizzes and trivia, and as well as a massive printable activity book.

Outschool: https://outschool.com/

Outschool is loaded with different online classes for kids. Prices vary from free to a few hundred dollars. Classes include basic life skills, music, art, coding, science and more! There are over 10,000 classes to choose from.

How long will it take to get an approval?

Fri, 01 Sep 2017 17:48:00 GMT

A single individual at a lender with the computing power of a Commodore 64 and surrounded stacks of paper files, is

expected to review and approve not only all of your files documents, but those of 16 other files within a single

workday.

The process depends on a complete documents package being submitted on day one - that is vital. Those files will receive the fastest response, and even then the response may well be two, three, or even five business days away.

Switch - Submit 45 days in advance – ‘File Complete’ 30 days prior to maturity

Refinance - 10 business days for review, 30 days to fund from date of submission

Purchase (no conditions) - 5-10 business days for review – ‘File Complete‘ 15 days prior to funding

Purchase (with conditions) - 3-5 business days for review – ‘File Complete‘ 15 days prior to funding

What does the APR on some of the documents mean and how is it different from my mortgage rate?

Fri, 01 Sep 2017 16:34:00 GMT

On some of our forms you will see an interest rate and an annual percentage rate. This two numbers are not the

same.

The definition of an APR is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as

applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate.

In other words, your APR includes the cost of your mortgage for the year, For example should you pay $1000 in

legal fees and $1000 in interest fees for one year on the mortgage, and your mortgage is $100,000. Your APR

would be 2%.

In most cases, in terms of a mortgage this is an irrelevant number. However, if you were given a credit card with a

30% APR and 5% interest rate, you would know there is a a fee you are paying that you are not aware of.

When do I give my downpayment?

Mon, 31 Jul 2017 18:19:00 GMT

It’s important to know that at no point will use or the lender ever have your downpayment funds.

What extra documents are needed for construction?

Fri, 28 Jul 2017 17:30:00 GMT

When doing a construction mortgage , there are several other documents that you will need to supply:

Some of these documents cannot be supplied till after financing is approved, but all documents must be supplied

prior to a second draw.

For a look at how construction works check out our video on it:

http://www.showme.com/sh/?h=QFHycdc

Why do I need a job letter?

Sat, 22 Jul 2017 17:59:00 GMT

Almost all lenders require a job letter from your employment in order to approve your income. The only time this

would not be needed is when you are self-employed. There are many reasons that this benefits you.

The truth is that most people don’t want to get a job letter, because they don’t want to bother their employer. Yet

every employer will have had to write one at some point for an employee.

It is also possible, that you have heard that a letter was not ever required for a mortgage, this was pre- a government regulation in the last several years that requires lenders to be much more strict.

Rates are NOT rising- well, not the way you think - UPDATED

Mon, 10 Jul 2017 18:08:00 GMT

UPDATE: The Bank of Canada has increased their overnight rate to .75% as of July 12, 2017.

How does it work to buy a foreclosure?

Thu, 29 Jun 2017 18:22:00 GMT

From time to time their may be a foreclosure that comes on the market that may be of interest. They are a little

different, than purchasing a regular property.

The lender will always want an appraisal- if you are putting less than 20% down, the mortgage insurer may order

and pay for it- but if not you will need to have us order you an appraisal. The value is very rarely a concern. The

lender is looking at the condition of the property, and should it be in poor condition or need lots of repairs they may

decline to finance it, even if you are a very good borrower.

Once your offer is accepted and conditions are removed, a court date is set, once a court date is set, you will have

you offer accepted in court and a court order can be prepared. However, in court there is allowed to be other bids,

and if someone else bids higher, they will be able to have the house over you. It is a good idea to be prepared to

increase your offer in court- you need to check with us before, and the offer should still not exceed your appraised

value. If you need to increase your offer, but are not sure you can approved for the difference, you can do so, but

you need to make sure you can pay your increase in cash. Its also important to know that even if you can afford a

higher amount of payments, a lender will still not finance you for more, if you bid above the appraised value.

Do I need house and fire insurance?

Fri, 09 Jun 2017 16:38:00 GMT

All homes that have a mortgage need house and fire insurance.

Depending on the location of the home, they may require earthquake and flood insurance as well.

It is important to quote this out prior to removing subjects, as if the cost of insurance is higher than expected you

will be stuck if you do it after the fact.

House Insurance must cover the cost of the replacement value of the home, which means that the insurance policy

must cover whatever it costs to replace the home should the home be damaged, and the insurance company must

be listed as first loss payable.

When getting house insurance, if you feel like you are getting a quote that is much higher than expected, check

with your provider to see if their are any repairs, etc that may change the quote.

When will an appraisal be required and who pays for it?

Wed, 07 Jun 2017 18:20:00 GMT

Every mortgage needs some consideration of value. Your downpayment and the type of property you are buying

will determine when an appraisal is needed.

Despite contrary belief, a bank or a lender does not always pay for an appraisal. Although, this doesn’t apply in

every situation – here is an idea of when an appraisal will be required.

If you put down less than 20%, a mortgage insurer will have their own valuation system. If it fails, then they will

order an appraisal at their cost. The lender, the mortgage broker, and the client do not get to see this report or

know information about it. If a property fails the valuation and there is a concern surrounding the property such as

conditions, a private sale, or a foreclosure then a lender may require you to pay for an appraisal as part of your

conditions.

If you put more than 20% down, an appraisal will be always be required. Some lenders have valuation systems that

they will charge a fee for, but these are usually exclusive to bigger centers and only for owner-occupied properties.

In this situation, it would always be a client cost. Sometimes lenders will order an appraisal for you and not charge

you upfront, but they will add this expense to their closing costs. This often makes it seem that you don’t need to

pay the appraisal cost but in reality, it’s still billed to you.

How does a mortgage broker get paid?

Wed, 07 Jun 2017 17:52:00 GMT

Our services are free! Well, sort-of…to you anyway!

Picture this. You go to your bank, and you ask to speak to a Loans Manager. You have an appointment and you see a few different people, but you don’t pay for any of them. Yet, somehow they are all getting paid.

So, instead of all that money going to a bank employee, it goes to us. And still, the cost to you is nothing.

There are certain times when a broker fee is charged, but these are rare and will be disclosed in the commitment

that you sign with us.

What documents do I need to verify my downpayment?

Wed, 07 Jun 2017 16:55:00 GMT

There are several laws around tracking the money that is alloted for your downpayment. It can be very frustrating to

provide the proper documentation. Here is what would be needed in several situations:

Any funds being borrowed, we need to know upfront or it could change your approval.

If you are having trouble getting these statements, you can take a screenshot of your account. Here are some

instructions on how to do this: https://www.take-a-screenshot.org/

https://www.take-a-screenshot.org/

What are the responsibilities of a co-signer?

Mon, 13 Feb 2017 19:14:00 GMT

When you are co-signing for a mortgage, we look at your entire financial situation – credit and income .

This means that we need just as many documents from you as we need from the main applicant.

Mortgages have changed a lot over the last decade, so you can expect that you will be required to supply more documents than you may have when you first applied for a mortgage. However, once the mortgage has been signed you will be only be called upon if the the main applicant starts missing payments.

Most people find the process of getting approved more involved than they thought; however, they find being on the Title for the long-term to be less involved than they thought.

It’s important to note that most lenders will require all borrowers to be on the Title. Read here for more information on the difference between a guarantor and a co-signer.

Why do you need both the T1 Generals and Notice of Assessments?

Mon, 13 Feb 2017 19:02:00 GMT

Your T1 Generals are what has been inputted by you or your accountant but has not yet been confirmed.

The NOA confirms that the government has confirmed your income. The good news is that if you can’t find them, we can retrieve your NOA for you in order to make sure you have no income tax owing.

What extra costs are part of my mortgage?

Mon, 13 Feb 2017 18:03:00 GMT

Lawyer Costs: We estimate that it’s about $1500. This includes all the legal fees, title insurance, etc. This is not

something we charge, it’s just an estimate of what your lawyer will charge.

Property Transfer Tax: This is a tax applicable in both British Columbia and Ontario. The tax is charged as 1% of

the first $200,000 of the purchase price and 2% of the balance of the purchase price. If you have never owned

property anywhere in the world, you will probably qualify for an exemption on this. In the case of two people buying

a home, we have a strategy where you may also be exempt on your next house. This will save you thousands, so

be sure to make sure we have talked about this, if we haven’t already.

Here’s some more information on Property Transfer Taxes: http://www2.gov.bc.ca/gov/content/taxes/property-

taxes/property-transfer-tax/understand/exemptions

Property Tax: You will have to pay the seller back for any property taxes they have paid. For example if the owner

paid $2000 in July, and you buy in December, you will have to pay $1000 back. A very confusing part of this can be

if the lender is paying your property taxes. In this case, upon starting the loan they will begin collecting for the next

tax year. With most tax years beginning in July, there is a strong possibility that when you buy a home you will be

behind in the tax year. As a result, you can expect that your property tax payments will reflect that in the coming

year. If you are less than four months until property taxes are due, you will have to pay your property taxes upfront

at the lawyer at the time of closing.

CMHC or Default Insurance Fee: You will see this on your documents at the lawyer. This is not a cost you have to

pay, it is added to your mortgage. There is no way around it, as the government adds this to every mortgage where

less than 20% is put down as a down payment. This insurance protects the lender so that if you default on your

payments, the government pays back the money the lender has lost. This is not to be confused with house

insurance or life and disability insurance.

Lender and Broker Fees: These are fees charged by the lender and deducted from the money you are getting.

The broker fees are not actually given to us, the brokers, in their entirety. The broker fees are also paid to the

lender and then shared with the brokers.

What is the difference between a co-borrower and guarantor?

Mon, 13 Feb 2017 17:50:00 GMT

A co-borrower is on the Title with the main borrower. A guarantor is not on the Title, but is responsible for the

loan. It is rare for a lender to allow a guarantor, so most require individuals to be co-borrowers. There are some

considerations on tax and estate in each situation.

When a borrower is not on title, but on the loan:

Pros:

You can qualify for exemption from Property Transfer Tax on another purchase if you ever buy again.
The main borrower may qualify for an exemption with only them on title.

Cons:

In the case of a Separation, there can be some more involved legal work to split the matrimonial home.
In the case of a death, the property does not automatically go to the other borrower, so this can create additional estate problems.