If you are thinking of buying your first home, next home or a rental property, now is the time to get a mortgage pre-approval and lock in that rate for up to 120 days. This way, you’ll know exactly what you can afford and have your mortgage ready in hand.
I will support you every step of the way from shopping for your home, to making an offer to getting your keys.
I will help you understand the process and ensure that you get personalized advise on the best mortgage solution for you and your needs.
Things that make your loan officer cry!
If you have ever applied for a mortgage you know how much paperwork it can be. Although we still close average transactions in less than 4 weeks, there are situations where unexpected things happen. This blog is a quick guide to the 3 things that can throw off deals, and sometimes make your mortgage originator cry. Consider it a list of things not to do during the loan process.
1. When a borrower quits their job (or gets fired) in the middle of the loan process. This shouldnt be much of a surprise but if you are trying to qualify for a loan based on your income dont change jobs during the transaction. You dont have to stay at your job forever, just dont quit in the middle of your mortgage process.
2. SURPRISES! Although life is full of surprises try to be as honest and upfront about all of your debts and financial information with your loan originator up front. Its never good when all of a sudden your mortgage team pulls your information and finds out you make great money but you have $23,000 in collection debt on that boat you forgot about. Remember you dont need to over exaggerate your income to impress your mortgage company, we are more impressed with honesty and organization.
3. Disappearing Acts. Nobody loves vacations as much as we do but there are a lot of moving parts in the real estate and mortgage process and you may need to be around to sign documents and communicate. You can still take vacations just make sure to let everyone involved in the transaction know so that they can plan around your travel.
Just remember, your Realtor, your loan originator and an entire team of others are working their to their best level to help you close on your real estate transaction- before you make a bone head move, just think What Would My Loan Officer Do?
No harm can come from asking a question so whether you are already in the mortgage process or you are thinking about jumping in soon, you can call me or email me any time for free advice that will avoid tears in the future!
OSFI tightens mortgage rules Edit
The Office of the Superintendent of Financial Institutions Canada (OSFI) published the final version of Guideline B-20 Residential Mortgage Underwriting Practices and Procedures. The revised Guideline, which comes into effect on January 1, 2018, applies to all federally regulated financial institutions.
The changes to Guideline B-20 reinforce OSFIs expectation that federally regulated mortgage lenders remain vigilant in their mortgage underwriting practices. The final Guideline focuses on the minimum qualifying rate for uninsured mortgages, expectations around loan-to-value (LTV) frameworks and limits, and restrictions to transactions designed to circumvent those LTV limits.
OSFI is setting a new minimum qualifying rate, or stress test, for uninsured mortgages.
Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.
OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.
Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.
OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits.
A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institutions maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.
To find out how this will affect you, please contact me at anytime.
Easy ways to keep more money in your pocket
It goes without saying that most of us would appreciate a little more money in our pockets. Believe it or not, its actually an achievable goal. In fact, a few simple tips can help you uncover meaningful savings each and every month. Need some ideas? Heres a little inspiration to get you started:
1. Pack food from home for lunches and snacks. Skip sandwich bags and opt for reusable containers, cutlery and drink bottle.
2. Switch light bulbs to CFLs. On average, it costs $250 a year in energy costs to light your home with incandescents. Save $150 by going with CFLs. Theyre more expensive initially, but will last 10 times longer.
3. Review and negotiate your service plansphone, internet, cable and television content.
4. Invest in topping up your insulation. Attic insulation can settle and compact over time, diminishing its original R-value and increasing heating/cooling costs. Topping it up with a quality batt insulation, like Roxul Comfortbatt, will immediately help improve the comfort of your home and reduce your monthly energy bills.
5. Pay off credit card debt and swap cards for lower interest rate options.
6. Install low-flow water fixtures to cut down on excess water consumption.
7. Lower your thermostat by two degrees in cold weather and increase it by two degrees in warmer weather.
8. Launder your clothes in cold water and at off-peak times.
9. Avoid impulse shopping. Stick to your list and avoid window shopping, which tends to draw buyers in.
10. Save money on entertainment by looking for free activities. For options in your area, try a simple internet search. You might be pleasantly surprised at the wide variety of activities and entertainment available for no or low cost.
Collectively employing the tips above could potentially add up to thousands in annual savings, proving that sometimes change can be a good thing.