Thursday, November 22, 2018 / by Price Team Mortgages
Since we know that lenders can back-end insure our mortgages (please read our Mortgage Insurance Market and Wholesale Lenders article first), and that this specifically makes these mortgage investments more attractive to investors, what does it mean for borrowers (every day people like you and me)?
To recap, any mortgage that is inexpensive for a wholesale lender to get financing for allows the lender to pass on savings to their clients, meaning mortgages that are insured get the best rates! An insured mortgage is where a borrower pays the mortgage default insurance because they have less than 20% down payment and is required on all mortgages where the down payment is less than 20%.
But, lenders can also pay for insurance for their client! An “insurable” mortgage is one where the clients puts 20% down (or more), and their mortgage is approved as though a client is paying for insurance, but the actual insurance is paid for by the lender.
Rates for insurable mo ...
Wednesday, November 21, 2018 / by Price Team Mortgages
As many of you already know, Canada just became the second country in the world to legalize marijuana for medical and recreational purposes. Of course, this historic moment in Canadian history has cannabis activists jumping for joy while others are not s-toked on the idea.
With legalization comes the realities of growing your own pot at home which already has Global News giving Canadians a step-by-step guide on how to do so properly and legally — sorry Manitoba and Quebec!
We always have clients contacting us for restructuring advice on their current mortgages. However, through our initial discussions, we have found out that some have started growing pot plants within their homes. Since this legislation is new to everyone, including the mortgage community, we had to do some research.
Prior to September 17, growing cannabis at home was a legal grey area. Mortgage wise, it was a red flag. Any home that has previously or is currently being used in the growing of canna ...
Tuesday, November 20, 2018 / by Price Team Mortgages
There are many challenges that come into play when you’re in the market to buy a home.Buyers say the number one obstacle to home ownership is saving enough for a down payment, the amount that the buyer provides toward the purchase of their home.Exactly how much do you need to put down? Assuming you can finance the debt with your current income you can get a mortgage for as little as 5% down PLUS pay for Mortgage Default insurance if you put less than 20% down.A smart rule of thumb is always try to put a least 20% down. Although that may be a challenge in Greater Vancouver where the current Vancouver MLS stats indicate an average house price of $1,227,420
1. Easier to service your debt. Putting 20% down reduces the size of your monthly mortgage payment, making you more likely to qualify for and afford, your mortgage. Lenders want to make sure you can service your debt with your current income using 2 rules:o Rule #1 – GROSS DEBT SERVICE (GDS) Your monthly housing costs ar ...
Monday, November 19, 2018 / by Price Team Mortgages
The need for private money has never been so great in our community. We have been helping hundreds of local people get back on their feet over the years. These are deserving homeowners with issues that cannot be solved by a bank mortgage and caught in circumstances that can only be solved with a cash infusion with private money. We listen to their story (everyone has one) and come up with creative solutions. With the new government regulations, many people do not qualify due to income even though they can easily afford payments. If credit has slipped even a little bit, these homeowners fall through the cracks. So our innovative solutions are short term usually a year or two which help homeowners get back on track. The new government B20 regulations have in addition to making it more difficult to qualify, effectively allow Canadians to qualify for 25% less than before, have also made it impossible even with good credit and income for many to q ...
Friday, November 16, 2018 / by Price Team Mortgages
Often new clients call us and ask. “What is your best rate?”
A few years ago, this was a pretty straight forward question. But since the government has changed the mortgage rules, the best rate offered by our 95 different lenders is now a very complicated question. Best rate is now limited to high ratio purchases or people buying homes for less than 20% down. This is confusing for most clients. You mean ,if I put less money down, I get a better rate. Yes, that is correct. These mortgages are insured through CMCH, Genworth or Canada Guaranty so there is a premium paid by the borrower and added to the mortgage amount for receiving this fantastic rate.
So, any switches or transfers also qualify for best fixed and variable rates. So that is essentially waiting until your maturity or it can be done before with penalty for existing amount of the mortgage.
Now refinances have different rates attached to them. If you had an insured mortgage on your last renewal or purchased prio ...