Tag Archives: mortgages

Ground breaking mortgage changes coming!

We are 5 days away for yet another change to our mortgage market.

As of the 17th, it’s getting harder to get the amount of money you may want for your mortgage.  Mortgage rules regarding qualification are right around the corner.  Rumor has it that 1 in 5 people will be affected.

Here’s how the rules work: 

For those wanting a short term fixed rate (1 – 4 years) or a variable rate or a line of credit mortgage, you qualify at the Canadian benchmark rate which is currently 4.64%.  You didn’t pay 4.64%, you just qualified at that rate.  The thinking is that if you qualify at this higher rate and the interest rate increases, you should still be able to afford the payment because you’ve qualified for less money.

If you took a 5 year fixed rate (or longer), you qualify at the contract rate; a conservative rate would be 2.49%.  Because you’re qualifying at this rate, you qualify for more money.

We typically think of high ratio insurance for those putting down less than 20% of the home’s value but in fact most lenders buy insurance for all their mortgages; even for conventional mortgages, but the consumer may not be aware of it because the lenders pay for it.

As of Oct 17th, the Canadian benchmark rate will be used for all mortgage qualifications that are backed by either high ratio insurance or low ratio (bulk pooled) insurance . Here are 3 examples of how it will affect clients.

All based on having little ancillary debt, so using 39% of gross income for your mortgage payment, property taxes and heat

Household income $50,000 gross. Old qualification amount =  $299,900

New qualification amount = $239,100

Household income $75,000 gross. Old qualification amount =  $466,500

New qualification amount = $372,000

        House income $100,000 gross. Old qualification amount =  $663,000

New qualification amount = $528,600

In the first example, you will qualify for $60,800 less.  In the second example you will qualify for $94,600 less and in the third example you will qualify for $134,400 less.

While lenders try to make sense of the rules, many are not lending for rental properties, nor doing stated income deals at this time.

New changes can create a little confusion, if you have any questions, never hesitate to give me call. I’m always ready to help.

Summer lovin, happened so fast! How you can make it last.

Summer is officially in its final countdown, stores are geared up for “back to school” and I even dare to say I saw a Christmas decorations being added to the isles at Costco (insert eye roll)!

If you are one of the lucky ones, you have manged to take some time and get away and enjoy some fun in the sun. Whether you call it a cottage, a cabin or a camp, when the temperature begins to rise, the dreams of sitting on the dock at a place of your own start this time of year….. If your wondering how to make your dream a reality this post is for you.

Well…. lets talk truths, if you don’t have the cash on hand to buy one outright, you’ll have to borrow the money, (enter me) I can help with that, and while the basic process of applying for and qualifying for a mortgage are the same, lenders will look at many more variables when assessing a property before lending money to buy a cottage.

As always, if you have questions never hesitate to get in touch. I’m here to help you turn that summer real estate lovin into more than just a one night stand 🙂

mortgage broker kelowna

Kelowna Mortgage Broker

As Kelowna mortgage brokers go, if you are living in or moving to Kelowna and in need of a mortgage, just like choosing the right real estate agent you will often be better off working with a mortgage broker who is experienced in and really knows the Kelowna area. Finding a mortgage broker who knows the Kelowna area AND really knows mortgages can be a little difficult. Dave Lytton gives you knowledgeable, personalized service and always works with your best interest at heart.

  • A Kelowna Mortgage Broker with experience has connections others may not
  • Mortgage Brokers new to Kelowna may not know local people, places, terms and landmarks
  • A Kelowna Mortgage Broker is available to you, locally, when you need them, which is far more convenient
  • An experienced local mortgage broker knows the local financing options
  • A local mortgage broker knows about limited time or exclusive programs only available locally

If you or someone you know is currently in need of a mortgage broker in Kelowna now or in the future, let’s talk. Give me a call today at 250-862-6630, email me at info@thatmortgageman.com or contact me through this website right now. You can also share this information to your preferred social network using the appropriate links below. Remember, even if I don’t ultimately end up being your mortgage broker, I will gladly answer questions and help however I can. I stand firmly by my motto, “My highest interest is you.”

mortgage broker kelowna
Dave Lytton
Mortgage Broker
Kelowna, BC