Tag Archives: mortgage broker vs. banks

How to get a mortgage with bad credit

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Truth: Your credit rating is not the only piece of the mortgage puzzle but you need to know where you stand.

I have been in the mortgage business for a long time and still, the most common question that I get asked is plain and simple……

“How do I actually get a mortgage with bad credit?”

I get asked this a lot and my very BEST ADVICE is NOT TO MAKE ASSUMPTIONS.  Many people think they have poor credit from something that happened years ago and are pleasantly surprised to find out the item in question is no longer pulling their credit down.  Conversely, many people think they have good credit only to find out that parking ticket or phone bill they didn’t agree with nor pay, is costing them dearly on their credit report!

Here’s what to do:

  •  let me check your report out so you know exactly where you stand. (Free)
  •  If you do have some serious problems, let me give you some tips on how to improve your situation, if not for now, for a future application (Still free)
  • You would be surprised how many mistakes I find on credit reports; things that have been paid off long ago but aren’t logged on the credit report – Again never make assumptions….

If your curious to know your score, give me a shout if there are improvements to be made, you would much rather tackle those now than have a nasty surprise later 🙂

5 Secrets You Didn’t Know About Mortgages

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The big “secret” about mortgages, from the lender’s point of view, is that it’s all about competition and risk. Competition limits what a bank can charge because borrowers will look for the best deal. But competition is tempered by risk. People with good credit scores – evidence that they habitually pay their bills on time – are better risks than people who don’t, no matter the reasons, so they usually get better rates.

Whatever your situation, here are some things you may not know – but need to – when getting a mortgage. Be sure to keep them in mind.

If you have any questions, never hesitate to get in touch, I’m happy to help 🙂

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 🙂

Down payment rule changes, house hunters listen up.

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The facts:

The change– Effective in the new year, those lucky enough to be house hunting for a new home over $500,000 this effects you…. you will now be required have 10% minimum as a down payment (previously 5%) on insured mortgages.

Timeline for the new change – Feb. 15, 2016

The background for the change – “The governments role in the housing market is to set and maintain a framework that is equitable, stable & sustainable. This change addresses emerging vulnerability in certain housing markets, while not overburdening other regions” said finance minster Bill Morneau in his recent release “They also re balance government support for the housing sector to promote long term stability & balanced economic growth”

The key motive  to ensure that homeowners have enough “skin in the game” (equity).  For many of us middle class Canadians, our biggest investment is our home. This change will increase homeowners equity and will help keep our housing market stable and secure for years to come.

If you have any questions about the upcoming change,  please get in touch and i will be happy to crunch some numbers with you 🙂

 

Is it time to abandon the 20% downpayment rule?

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This one’s for the housing true believers out there.

You’re the buyers who keep pushing house prices higher in cities such as Vancouver, Toronto and Hamilton. Incomes are edging higher in these cities, prices are surging. If you’re primed to buy anyway, then listen up. Stop trying to save a 20-per-cent down payment and get into the market now!

A popular bit of advice is that you should ideally wait to buy a house until you have a down payment of at least 20 per cent and thus are excused from buying mortgage default insurance. But if it takes a few years to save that much, you may find that soaring prices more than offset the savings on mortgage insurance.

This insurance got a little more expensive in some cases this summer, so it’s time for a fresh look at the case for avoiding the cost of buying it.

Background for housing rookies: If you have a down payment of less than 20 per cent, you have to pay a hefty premium to insure your lender in case you default on your payments. The amount is usually added to your mortgage principal, which means it’s out of sight and out of mind. But it still costs you.

To get a full scope of expense continue reading…..

More changes to the mortgage industry

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Recently I have received info proposing that CAAMP (Canadian Association of Accredited Mortgage Professionals) is pushing the “transparency” envelope even further. The prospective changes would require brokers to disclose the exact amount of commission we receive from each deal, residential and commercial.  It has caused a bit of a stir within my circle, not because we don’t want to share, but more because, why should we have to share? My job, is to walk my clients through the mortgage process from start to finish. I make it clear from the start, that my services are free to them and that the lender (whichever one we choose to use) pays me a commission to bring them great peeps, like themselves…. Clients are aware that my compensation is paid by the lender to save in overhead costs and IS NOT a fee for the borrower.

The idea poses a minor problem, this potential change has come about through FICOM, without  adequate market research from brokers & consumers like you. It will cause confusion for the average mortgage shopper and potentially impede brokers from competing directly with bank employees , who by the way, wouldn’t have to disclose.

Now don’t get me wrong…. I like FICOM as much as the next mortgage broker. They hold brokers to a high standard, protect borrowers & generally are referred to as the “mortgage police” (all good things) Since I like market research just as much as the next guy, I’m asking…would it be attractive to YOU, to find a broker to do it for less, even though your not paying? Do you want to know/or do you care how much we make? I have no problem telling you, after all you tell me all your financial details on your mortgage application….

Should the door swing both ways?

Send me your thoughts 🙂

 

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. 

Banks Don’t Provide Proper Pre-qualifications, Mortgage Brokers Do

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Mortgage tip of the week & food for thought for those who are considering house hunting…

First time home buyer should confirm their eligibility to purchase through a mortgage pre-approval in conjunction with their real estate agent. Mortgage Brokers ensure FTHB’s are pre-approved prior to searching for property so a budget is established and a pre-approval rate hold is tied down. If the client is already working with a realtor, that realtor can rest assured that the client is motivated, and looking in their appropriate price range. It saves all 3 parties involved a lot of time, and headache. A mortgage broker can be considered more valuable in this regard, as banks do not provide proper pre-qualifications based on a full application or review of documents, leaving less room for error.

If you have any questions NEVER hesitate to get in touch & stay tuned for more tips 🙂