AGENT LICENSE ID
137465

Lynn McLellan BA
Mortgage Professional
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Phone:
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Address:
308-15252 32nd Ave, Surrey, British Columbia
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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.
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.
BLOG / NEWS Updates
Should I Refinance? Answers here.
Renewing vs. refinancing a mortgage
Whats the difference between refinancing and renewing your mortgage? The terms are often used interchangeably, but they are different processes:
Renewing a mortgage applies to the current mortgage loan. You will be looking for a new term and interest rate based on the amount remaining in your mortgage at the end of your term. This is a great time to look at ways to reduce the principal amount by making a lump sum payment or changing payment amount and frequency.
Refinancing a mortgage is a renegotiation of an existing mortgage loan and is usually used to access the equity in the home or take advantage of better mortgage terms. Its a more involved process than renewing, especially if the loan amount is changing because it is essentially a new mortgage.
Reasons to refinance a mortgage
There are many reasons you may wish to refinance your mortgage. For example:
You may be in the middle of a higher interest term and want to take advantage of a lower rate. Although there may be prepayment penalties to get out of the current mortgage, it might be worth it for the long-term savings of a lower rate. Your mortgage broker can help you weigh the options.
If you have a lot of high-interest debt, you may wish to refinance and consolidate your debt into a single payment at a lower rate.
You may wish to access the equity in your home to fund a renovation, purchase a second property, or invest.
Pros and cons of refinancing a mortgage
There are advantages and disadvantages to refinancing a mortgage. What you consider a benefit depends on your situation. Here are some things to consider:
Additional costs of refinancing
When you refinance your mortgage, there may be some additional fees to keep in mind. Depending on how close you are to the end of your mortgage term, there might be penalties for paying out your term early. Your lender may also require you to get an appraisal on your home because the amount they will refinance is based on the current appraised value.
Peace of mind from refinancing
Finances can be a major stressor and removing financial pressure is priceless. Consolidating debt into a single monthly payment has its benefits. Youll likely spend less of your monthly budget on debt payments, and you wont be juggling your money trying to pay down multiple debts (which may pay more toward interest than principal). That said, if you cant manage your debt payments now and youll be paying roughly the same with the new mortgage, youre putting your home at risk.
New interest rate on a refinanced mortgage
When you refinance, youll be doing so at current interest rates. Are they higher or lower than what you have now? Sometimes its worth breaking your current mortgage term because the interest savings will more than cover the pre-payment penalties. Even a slightly higher rate might be okay if youre consolidating a lot of high-interest debt. Either way, do the math with an experienced mortgage broker who can help you weigh your options.
Longer amortization
Refinancing may mean youre stretching out youramortizationto keep the payments affordable. Before you commit, look at your entire financial picture. For example, will it affect your retirement?
Requalifying for a refinanced mortgage
Refinancing your mortgage to incorporate debt means youll need toqualify for the new mortgage amount. If your circumstances have changed and you dont think youd qualify with a traditional lender, talk to your mortgage broker about alternative lenders.
Alternative lenders are refinance experts and will work directly with your broker to understand the story behind the refinance and find a solution. They are more willing to consider self-employment and non-traditional sources of income, and they are also a little more flexible withdebt ratios.
How much can you borrow against the equity in your home?
Generally, the amount you can borrow is 80% of the appraised value of your home. This is the current market value, not the amount you paid when you purchased it.
The formula is:
(Value of home x 0.80) Remaining mortgage amount Loans secured against home = Home equity
Multiply the value of your home by 80% (0.80).
Subtract the amount remaining on your mortgage.
Subtract any other loans you have secured against your home, such as a line of credit.
The amount remaining is the equity you have in your home.
For example, if your home is valued at $400,000 today, multiply that amount by 0.80 to get $320,000. Now if you have $150,000 left to pay on your mortgage, subtract that to get $170,000. Now lets say you have an RV or car loan for $20,000 secured against your home. That gives you $150,000 of equity in your home.
($400,000 x 0.80) $150,000 $20,000 = $150,000
Refinancing a mortgage is not a HELOC
You might be wondering, Why not just get a home equity line of credit (HELOC) instead of refinancing? You could, but there are some advantages to refinancing.
Both options will give you access to the same amount of equity in your home.
Both options will likely require an appraisal and take about the same amount of paperwork.
Refinancing will probably give you access to the money at a lower interest rate.
Refinancing gives you access to the funds one time. A HELOC allows you to borrow, pay back, and borrow again. If youre borrowing to consolidate debt, you might be better served by refinancing so that your only option is to repay it (and not re-spend it).
Work with your mortgage broker to find your best options
Refinancing your mortgage is not as simple as visiting your bank. You should view it as though you are shopping around for a mortgage.
This is when you are well served by the expertise of a mortgage broker. First, theyll do the legwork to find you the best rate you qualify for. They have relationships with both traditional banks and alternative lenders, which opens more options for terms and rates. A mortgage broker will also consider your immediate needs and your long-term goals when helping you select a mortgage. They are in your corner.
Mortgage Deferral Agreements and Their Impact
CMHCs Fall 2020 Residential Mortgage Industry Dashboard discusses mortgage deferral agreements and their impact.
At the end of the second quarter, credit unions, mortgage finance companies (MFCs) and mortgage investment entities (MIEs) have allowed mortgage deferral agreements for about 6%, 7% and 7% of their respective residential mortgage portfolios.
Chartered banks have allowed 16% of mortgages to go into deferral since the beginning of the pandemic. Of these, close to 2 out of 3 borrowers had resumed payments on their mortgages at the end of the third quarter of 2020. In the coming months, we could see higher delinquency rates if some borrowers are unable to resume their payments; these mortgages will have to be booked as arrears.
These deferral agreements have affected financial institutions cash flows, with reductions of:
4% in scheduled mortgage payments
3% in non-scheduled payments (accelerated monthly payments and lump-sum payments)
While remaining at low levels, mortgages in arrears (90 or more days delinquent) have increased slightly between the first and second quarters of 2020 from:
0.24% to 0.26%, on average, for chartered banks
0.23% to 0.25%, on average, for non-bank mortgage lenders
We also observe an increase in early-stage delinquencies (31 to 59 days and 60 to 89 days), which suggests that arrears could continue on an upward trend.
Source: CMHC
Bank of Canada will maintain current level of policy rate until inflation objective is achieved, continues its quantitative easing program
The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of percent, with the Bank Rate at percent and the deposit rate at percent. The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week.
The rebound in the global and Canadian economies has unfolded largely as the Bank had anticipated in its October Monetary Policy Report (MPR). More recently, news on the development of effective vaccines is providing reassurance that the pandemic will end and more normal activities will resume, although the pace and breadth of the global rollout of vaccinations remain uncertain. Near term, new waves of infections are expected to set back recoveries in many parts of the world. Accommodative policy and financial conditions are continuing to provide support across most regions. Stronger demand is pushing up prices for most commodities, including oil. A broad-based decline in the US exchange rate has contributed to a further appreciation of the Canadian dollar.