It PAYS to shop around.
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 forty lenders at my fingertips and I work with you to determine the best product that will fit your immediate financial needs and future goals.
VERICO mortgage specialists are Canada’s Trusted Experts who will be with you through the life of your mortgage.
I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal. So whether you're buying a 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.
Housing and the Big, Bad, Budget
A lot has been said about Thursday's budget announcement. From Flaherty's shoe selection to a vague job-training program, many Canadian's were left slightly confused following the much-anticipated announcement. With that being said, Flaherty's eighth (and potentially final) budget announcement could have been worse, especially for the mortgage industry. Thursday's budget included a tightening of controls on mortgage lending once again, as well as another promise to further limit lender access to bulk mortgage insurance. While this will inconvenience some lenders, it's actually good news for taxpayers. The announcement is just the latest in a long line of moves from the Finance Department that touch on concerns over the housing market. As Canadian's continue to sink themselves deeper into household debt, Flaherty once again verbalized his mounting anxiety over interest rates. “Our concern, my concern for a number of years, is with very low interest rates that people can afford their mortgages when interest rates go up,” Flaherty told reporters while purchasing is budget-day shoes, a long-running Canadian tradition, at a Roots factory in Toronto on Wednesday. The Housing Market Under a MicroscopeFlaherty has made a career out of meddling in the in the mortgage market, influencing a number of policy changes in the past decade. And while home sales have slowed significantly and prices are beginning to drop in some of the critical markets since Ottawa's intervention last summer, Flaherty still feels that more needs to be done to protect consumers from themselves. As the economy slowly begins to right itself and interest rates eventually begin to rise, economists like Flaherty are worried that current mortgage holders won't be able to meet their increased mortgage payments. And since Ottawa backstops mortgage insurance, the Canadian taxpayer would be on the hook to cover this exposure. The Bad Side of Bulk Mortgage InsuranceMortgage insurance, which is backed up by the Canadian Mortgage and Housing Corporation, is intended to help consumers with low down payments enter the housing market more easily. Unfortunately, over time, it's also become a tool for banks to manage their risk. Banks' appetite for bulk mortgage insurance (also referred to as portfolio insurance) has continue to grow over the years. In fact, it's one of the main factors behind the government-owned CMHC's growing balance sheet. You see, whenever a new homeowner purchases a house without the mandatory 20 percent down, the mortgage needs to be insured to protect the lender. However, banks also offer this extended coverage to insure large swaths, or portfolios, of mortgages that don't necessarily need the protection. The budget states that, “With the financial crisis well behind us, the government is amending the rules for portfolio insurance to increase market discipline in residential lending and reduce taxpayer exposure to the housing sector.” New RulesFallout from the budget will include new rules that will gradually limit the sale of insurance on low loan-to-value mortgages (i.e. mortgages where the consumer ponies up a higher down payment) to those that are being used in Ottawa's securitization program through the CMHC. This will prevent banks from insuring their portfolio mortgage products in order to reduce their capital requirements. Flaherty's changes will also enable Ottawa to stop the use of any taxpayer-backed insured mortgages (even the high ratio ones)as collateral in securities that are not sponsored by the Canadian Mortgage and Housing Corporation. This will protect Ottawa's potential exposure. Flaherty and the Department of Finance noted that they intend to further consult with the finance industry before implementing this rules later in the year. In the meantime, financial institutions will continue to have access to a broad array of financing options. As always, we'll follow this story as it unfolds right here on the Mortgage Talk Canada Blog.
What to Know Before You Get an Investment Property Mortgage
Investing in property has long been a great way to diversify your portfolio and improve your long term returns. Unfortunately, recent rule changes have changed the playing field for many potential real estate investors. While buyers used to be able to purchase an investment property with very little down and still receive a great rate, current hiccups in the market and changes to legislation are making it more difficult for investors to get in the game. Today, investors looking to secure financing for any non-owner-occupied rental property are now required to put down one-fifth of the purchase price in order to secure a reasonable rate. While the days of cheap high-risk rental mortgages are long gone, that's not to say that the market isn't ripe for investment. If owning a rental property has always been an investment option, don't give up hope. Instead, work with an experienced mortgage broker who can guide you through the ins and outs of investment financing. Four Things to Remember When Investing in a Rental Property If you're serious about a rental property investment, remember the following three details: #1 - Don't Settle for Just Any Lender Finding a lender on your own can be risky, especially when you're looking for an investment property mortgage. This is because of the way lenders qualify rental property mortgage products. Rental property mortgage rates are often dependent on how much rental income the lender will recognize. This is calculated using a total debt ratio - a formula that is often unique to each lender. A mortgage broker who has experience with rental property financing will work with you to find a borrower-friendly lender, specifically ones that are open to negotiating underwriting exceptions. #2 - Rates Aren't the Only Thing Worth Researching Many first time real estate investors make the mistake of jumping on the lowest rate right off the bat. While this may seem like a good idea at the time, it might not be the best long-term investment decision. This is because rental property mortgages with the lowest interest rates often come with the most restrictions. While flexible mortgages will cost you more, they'll likely offer you one or more of the following options: Flexible rental income rules A line of credit with your rental mortgage Second mortgage options Lengthy amortization periods to maximize cash flow Flexible minimum net worth requirements #3 - Take Things One Step at a Time Many lenders frown upon investors owning and/or financing multiple rental properties. While it's not explicitly prohibited, lenders don't like to take on clients with risky portfolios. As such, if you're planning to invest in multiple properties, take the time to find a broker that have experience working with clients who have 10 or more rentals. He or she will know which lenders are willing to work with you. #4 - Plenty of Paperwork When you sit down with your mortgage broker, remember to bring along some paperwork. Nowadays, lenders will often require rental property investors to have a signed lease or other proof of rental income prior to finalizing a deal. If possible, remember to bring along two years' worth of tax returns as well. Your returns will show your net gain or loss on a property, which often makes it easier for a lender and your broker to qualify your application. Invest in your future - invest in real estate. Contact a FamilyLending.ca mortgage broker today to learn more about the rules and regulations of investment property mortgages.
Get a Better Rate: Five Questions to Ask Your Broker
Mortgage brokers are expected to be honest when it comes to providing their customers with financial advice. It's their job, after all, to find you the best possible rate based on your unique financial situation. But, as with any other position of authority, there are always a few bad apples in the bunch. If you're shopping for a mortgage rate, never assume that just because your broker has a friendly face, that he or she is looking out for your best interests. Educate yourself in order to avoid less-than-ethical mortgage brokers. Remember, mortgage brokers are usually paid by the lender for referring customers and processing applications. This compensation varies based on the lender and the mortgage type. As such, it's difficult for many brokers to resist the temptation of a higher commission for recommending a certain product.The following are five important conflicts to discuss with your broker the next time you're shopping for a new rate. #1 - Why are you recommending a certain mortgage term?Many lenders will compensate brokers on a term-based scale. Generally, the longer the term of your mortgage, the more money the broker will get. This is why mortgage regulators in Ontario, Saskatchewan, and Nova Scotia require mortgage brokers to confirm suitability when recommending a mortgage product to a customer. This requirement, which doesn't apply to mortgage sales representatives at major banks, protects consumers from unethical recommendations. If you live in a province that doesn't have suitability legislation in place, be sure to ask your broker to provide you with a risk/reward analysis of different mortgage terms. This will help you to pick the product that's right for you. #2 - Is this really the lowest rate for that term and that lender?This may seem like a redundant questions, however it's anything but. This is because of something known as scaled pricing in the brokerage world. This is when a lender offers two rates for the same mortgage: one rate is competitive and offers the broker a fair compensation; the other is a higher, less-competitive rate which pays the broker extra. Unethical brokers will sell the above-market rate without batting an eye. In order to protect yourself from this shady business, simply ask your mortgage broker whether or not the rate they're quoting you is the lowest rate for that term on the lender's broker rate sheet. If you have doubts, ask another broker for a second opinion. #3 - What's your mortgage volume?Many mortgage brokers participate in status programs. These arrangements reward brokers who sell a high volume of mortgages for a specific lender. On one hand, this is good for customers; lenders often offer high volume brokers better rates. However, some mortgage brokers will recommend a particular lender solely to maintain perks with the lender, even when another outlet may be offering a better product. There's real power in volume, so don't be afraid to ask your brokerage about their closing record. Brokerages that have a record of closing a high number of mortgages will likely have access to a larger book of lenders, providing you with more options. #4 - Why are you pushing rates?If rates are the first thing that your broker talks about when you walk in the door, it's probably best that you turn around and walk out the door. Rates are just a part of the mortgage puzzle. Fees, penalties, prepayment restrictions, portability, and closed terms should also factor into your mortgage decision. The only way a broker will know what product is best for you is if he or she takes the time to understand your financial situation. In some cases, a higher rate with fewer restrictions might make sense in the long run. #5 - What happens if I don't understand your disclosures?Mortgage brokers are required to disclose conflicts, like the ones above, in government mandated disclosure documents. Unfortunately, disclosure documents are often vague and confusing for customers who aren't well-versed in mortgage intricacies. Before you work with a broker, ask to review these disclosures. If you don't understand something, don't be afraid to ask for further clarification. If the broker can't provide you with a firm answer, find another representative. The mortgage brokers are FamilyLending.ca are dedicated to providing you with honest service. Locate a broker in your community today to further discuss your financing options.