Tag Archives: best rates

Expect tougher mortgage rules by November

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Here we are again, more changes to the mortgage industry are heading our way, and soon.

Home buyers may feel the pinch as banks comply to stricter rules, but what will change and when…

How it will impact the Canadian home buyer?

As a federal regulator, OSFI’s requirement will impact banks and lenders across Canada. This means buyers in all markets will feel the impact of these changes, not just home buyers in hot markets, such as Toronto and Vancouver.

Banks and mortgage lenders will pass down the extra costs of these stricter regulations to the end user. This is done by either increasing mortgage rates or implementing tougher lending requirements for those applying for a mortgage.

For the average Canadian home buyer, then, this could mean that as early as November, it will either be:
→ harder to get a mortgage
→ mortgage rates will start to rise (even slightly)
→ or you won’t qualify for as large a mortgage as you would’ve prior to these new rules.

When will tougher rules take affect?

This announcement of the proposed new mortgage guidelines comes after more than six months of private consultations between OSFI and the banking sector. Now the public and other stakeholders have until October 18 to submit comments before any of these new guidelines take effect. Then the implementation of new mortgage rules will be phased in—some lenders, with a fiscal year-end of October 31, will need to enforce these stricter mortgage rules starting November 1, 2016, while lenders with a fiscal year-end of December 31, will enforce the new rules as of January 1, 2017.

But don’t expect changes in the mortgage or residential real estate market to stop here. This week, it was mentioned that additional measures may be needed to manage the risks associated with the “highly charged” Vancouver and Toronto housing markets.

Unfortunately hot markets cause change, if your contemplating buying, refinancing or renewing lets rock, I’m here to help answer any questions & help you into the best mortgage for YOUR needs 🙂

Mortgage Brokers vs. Bankers

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It is a mortgage tale as old as time… and one of the biggest choices that mortgage shoppers face when getting into the market is where to go….. broker or bank?

It can be a tough choice, many of us have been with our banks for years and it just seems easier to meet with the specialist there. Our parents went to the banks, your friend got a “great rate” at the bank and well, it just seems like the traditional thing to do.

Word is on the street that our society is taking a turn back towards “traditional” ways but before you make an appointment at your nearest financial institution, here are the top 5 reasons why mortgage brokers are just plain GREAT!

We offer mortgage plans that a banker does not have access to: Part of being an independent mortgage broker is that I am able to “shop around”! Banks only have typically about 3 products to offer, I can take your application to over 50 lenders and without a doubt find you the best rate and plan to suit YOUR needs.

We don’t turn our noses up at those with bad credit:  Mortgage brokers have flexibility and can often find a lender who will work with you.  Unfortunately, bankers have to adhere to their bank policies often placing restrictions on available options.

Flexible hours: Not a 8-5 person? No worries, I’m not either!! Now granted, if you call at 3 am you might have to give me a minute to fire up the Keurig but other than that, meeting outside regular business hours or at a location of your choice is not a problem!

Worried that you’re self employed? Don’t worry so am I: Banks can often times remind me of the government, there is not a lot of room for “grey area” black and white or nothing… If you are receiving your income from a non-conventional source ex: self employment, long term disability, alimony etc.  than have no fear. Brokers love the “grey area” in fact, we thrive in it. We keep ourselves up to date on the rules and the trends of the lending industry, knowledge is power and we will deliver your application to a lender who will happy to work with you!

We work for YOU: We offer a unbiased, free service to clients that helps them properly asses and understand the mortgage process. We love what we do and we like saving you money. We get down in the trenches, negotiate, shop around and provide options!

If I haven’t convinced you, feel free to give me call and get ready to be surprised.

Kelowna MortgageDave ~ Kelowna mortgage broker 🙂

How to get a mortgage (when your not the ideal borrower)

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If you’re a credit-worthy employee at a Fortune 500 company and don’t have much debt, the mortgage world is your oyster. Banks knock on your door looking to give you the best rates, most advantageous terms and any other perks they can use to get your business. You’re an A-lister. A borrower with impeccable credentials.

But what if you don’t quite fit that pic? It doesn’t mean you’re out of luck, it just means you have to learn how to work the system in your favour.

Truth: You can get a mortgage if you’re self-employed, got a poor credit history, or if you own more than three rental properties……

To help you, here is a list of some of the most common B-class borrower hurdles and the best ways to minimize the risks and get better mortgage rates and terms.

Have a read & as always, if you have ANY questions, never hesitate to get in touch.

Mortgage Brokers vs. Bankers

News, ,

It is a mortgage tale as old as time… and one of the biggest choices that mortgage shoppers face when getting into the market is where to go….. broker or bank?

It can be a tough choice, many of us have been with our banks for years and it just seems easier to meet with the specialist there. Our parents went to the banks, your friend got a “great rate” at the bank and well, it just seems like the traditional thing to do.

Word is on the street that our society is taking a turn back towards “traditional” ways but before you make an appointment at your nearest financial institution, here are the top 5 reasons why mortgage brokers are just plain GREAT!

We offer mortgage plans that a banker does not have access to: Part of being an independent mortgage broker is that I am able to “shop around”! Banks only have typically about 3 products to offer, I can take your application to over 50 lenders and without a doubt find you the best rate and plan to suit YOUR needs.

We don’t turn our noses up at those with bad credit:  Mortgage brokers have flexibility and can often find a lender who will work with you.  Unfortunately, bankers have to adhere to their bank policies often placing restrictions on available options.

Flexible hours: Not a 8-5 person? No worries, I’m not either!! Now granted, if you call at 3 am you might have to give me a minute to fire up the Keurig but other than that, meeting outside regular business hours or at a location of your choice is not a problem!

Worried that you’re self employed? Don’t worry so am I: Banks can often times remind me of the government, there is not a lot of room for “grey area” black and white or nothing… If you are receiving your income from a non-conventional source ex: self employment, long term disability, alimony etc.  than have no fear. Brokers love the “grey area” in fact, we thrive in it. We keep ourselves up to date on the rules and the trends of the lending industry, knowledge is power and we will deliver your application to a lender who will happy to work with you!

We work for YOU: We offer a unbiased, free service to clients that helps them properly asses and understand the mortgage process. We love what we do and we like saving you money. We get down in the trenches, negotiate, shop around and provide options!

If I haven’t convinced you, feel free to give me call and get ready to be surprised.

Kelowna MortgageDave ~ Kelowna mortgage broker 🙂

Going from Renting to Owning a Home in 60 Seconds

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It will only take you 60 seconds to read this post and by the time you finish, you can be well on your way to plan out the next steps of your home ownership dreams or to help someone who you really care about to start investing in their own home.

If you’re a renter then chances are you have high hopes of owning your own home one day. You want to put those rent payments towards something you’ll eventually own, and the closer you get to finally achieving the goal, the better you feel. But, while you’re saving up for that down payment, are you doing anything else to prepare? Having the downpayment is just one piece of the puzzle…..

Take a look at these tips to help you get closer to finally owning your own place!

As always if you have ANY questions, never hesitate to get in touch.

 

Waiting for fixed mortgage rates to drop? You might be disappointed

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If you’re a mortgage shopper stressing about whether to lock into a five-year fixed rate, you’re probably wondering if rates can drop further.

No one wants to leave interest savings on the table and it’s way more fun to say you timed your mortgage like a champ.

But those of us waiting for fixed rates to drop much more might be disappointed. Here’s why. 

Mortgage rules are changing again, but this one will make you smile!

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Homes with rental suites will be in even higher demand! As of this morning CMHC has released an amazing change for those house hunting & mortgage shopping…

100% of income from rental suites will now be factored into your mortgage!

Starting Sept. 28th, CMHC will start allowing 100% of rental income from legal suites to be applied when qualifying for a mortgage. Currently, CMHC only allows 50% of rental income to be used.

What does this all mean?

This is a mortgage market change that will leave you smiling 🙂 This will increase your mortgage qualification in the vicinity of $50,000. If you’re looking at a place of $400,000, now being able to bump that up to $450,000 is HUGE!

But dont just take my word for it….. Read more here.

As always, never hesitate to get in touch if you have questions 🙂

 

Bank vs. Mortgage Broker

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Traditionally, those looking to get into the housing market have simply gone to the bank for their mortgage needs, but you now have more options at your disposal with the growing presence of mortgage brokers. Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. We essentially negotiate the lowest rate for YOU & WE WORK FOR YOU & ONLY YOU! Because we have access to high quantities of mortgage products, we mortgage brokers can pass volume discounts & amazing rates directly onto the mortgage shopper. I’m not saying the old way is bad, but using a broker will get you the best. The bank very well may me able to offer you a lower rate, please guard against this & speak to a broker like me. Lower doesn’t always mean better & many of these “hot rates” often come with some fairly tough “fine print” & remember , banks can only access and offer you their own rates/products. They will regularly give discounts on their posted mortgage rates; however, you are responsible for this negotiation.  If you are the type of person that likes options, affordability & flexibility,  give me shout & let me do the shopping for you.