Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available in the market. The mortgage process can be intimidating for homeowners, and some financial institutions don't make the process any easier. But I'm here to help!
I'm a VERICO mortgage Advisor and I'm an independent, unbiased, expert, here to help you move into a home you love.
I have access to mortgage products from over twenty lenders and I work with you to determine the best product that will fit your immediate financial needs and future goals.
I save you money by sourcing the best proudcts at the best rates - not only on your first mortgage but through every subsequent renewal or purchase. So whether you're buying your first home, renewing your mortgage, refinancing, renovating, investing or consolidating your debts - I'm the VERICO Mortgage Advisor who can help you get the right financing from the right lender at the right rate.
Back to Basics - the 5 C's of Credit
The 5 Cs of Credit
We all want the best interest rate possible when obtaining a mortgage but did you know that your best interest rate actually depends on YOU, not your mortgage broker or lender? Your best rate is determined by a number of factors including your credit history. When we talk about credit history we are referring to The 5 Cs of Credit. These include:
1. Credit - This shows the lender a snapshot of what your payment historyhas been over a period of time. It helps the lender predict yourlikelihood to make future payments. Your Credit Score is theprimary measurement of this factor. Outlined below is how much emphasis lenders put on each category of credit.
Payment history 35%
Amounts Owed 30%
Length of Credit History 15%
Types of Credit Used 10%
New Credit Applied for 10%
2. Capacity-Your ability to repay loans - what funds do you have coming in tosupport your loan(s) as well as for every day financialrequirements? This is the most important of the 5 Cs.
3. Capital -The amount of money that you are investing into the property,otherwise known as down payment. The minimum down paymentfor an owner occupied property is 5%. The more you put downon a property the more likely you are to repay the loan and protectyour investment.
4. Character - Your general trustworthiness to repay loans and credit. Factorssuch as length of employment, your ability to use credit wisely andyour ability to save money all help to establish character.
5. Collateral - The security the lender receives in exchange for providing theloan. Typically the security is the property itself.
Top five home renovations that increase property value
Looking to increase your homes property value? Here are five of the best renovations you can do to your home to increase property value. These five renovations can sometimes have a return on investment 5-6x what they cost.
Flooring is one of the most important aspects of your house. You will see an immediate rise in property valuation with the installation of hardwood floors. Existing hardwood floors that you can refinish are ideal as they are less costly to restore and in higher demand than new flooring materials. For the bathroom, tile will always be in demand and retain value exceptionally well.
Kitchens often look tired and dated, in large part due to old fixtures. Replacing or updating cabinet hardware, light fixtures, countertops and faucets will result in an immediate increase in your homes value. This small, but effective upgrade will also revitalize the entire home. Pot lights are in high demand in open concept style homes.
Thebathroomis the second most important room in the home in terms of valuation. If you can add a three-piece bathroom to a home with only one full bathroom, you will see a dramatic rise in the market value of your home. While you should never compromise bedroom space for a bathroom, try sneaking one in dead space in the home. Scott managed to fit in a 3-piece bathroom under a staircase the width of the room measured just 44 inches. As an added tip, use glass for the shower to make the bathroom feel more spacious.
Kitchens are the single most important room in the home relating to valuation. The kitchen can make a significant difference in the value of your home. As such, it is crucial that you invest in having a modern, fresh anddesirable kitchen. Modern cabinetry, under cabinet lighting and new appliances will all significantly increase the value of your home on the market. To save on cost without compromising construction and desirability, look at options like Ikea cabinets as opposed to custom cabinetry.
#1 An Income Suite
No surprise, but the single biggest way to increase the value of your home is to build an income suite within the property. Whether this is converting yourbasement into a rental, or another floor in the home, an income property will increase your homes worth. The main reason for this is that it covers a portion, or sometimes all of your mortgage payments, and results in your home being cash flow positive which creates real wealth that can supplement your income.
Valuable Fraud Prevention Tips for Homebuyers and Homeowners: Part 1
March is Fraud Prevention Month. Canada Mortgage and Housing Corporation (CMHC) has consistently been a leader in the fight against mortgage fraud and offers the following tips to protect yourself against becoming a victim of mortgage fraud.
Misrepresentation of Information
Mortgage fraudoccurs when someone deliberately misrepresents information in order to obtain mortgage financing that would not have been granted if the truth had been known. This can include:
Misstating ones position or inflating ones income or length of service at their job;
Misstating employment status (ie. salaried/full time versus contract, part time, hourly or commission-based or self-employed);
Misrepresenting the amount and/or source of the down payment;
Purchasing a rental property and misrepresenting it as owner-occupied;
Not disclosing existing mortgage and/or debt obligations;
Misrepresenting property details or omitting information in order to Inflate the property value;
Adding co-borrowers who will not be residing in the home and do not intend to take responsibility for the mortgage.
Another common form of fraud is when a con artist convinces someone with good credit to act as astraw buyer.A straw buyer is someone who agrees to put his or her name on a mortgage application on behalf of another person. In return for their participation, straw buyers may be offered cash or promised high returns when the property is sold. Often, straw buyers are deceived into believing that they will not be responsible for the mortgage payments.
Consequences of Misrepresentation
Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be responsible for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.
If you suspect that you or someone you know has been the victim of mortgage fraud, please contact your local police department or The Canadian Anti-Fraud Centre.
Toll Free: 1-888-495-8501
Toll Free Fax: 1-888-654-9426
To find out more about mortgage fraud, visit the fraud prevention section of the Canadian Association of Accredited Mortgage Professionals (CAAMP) website athttp://mortgageconsumer.org/protect-yourself-from-real-estate-fraud.
For over 65 years, Canada Mortgage and Housing Corporation (CMHC) has been Canadas national housing agency, and a source of objective, reliable housing information.