Christine Buemann Mortgage Broker

I have had quite a few questions over the last few weeks regarding shorter amortizations and how they are going to affect Canadians. Whether you are looking to purchase a home or refinancing your current home, shorter amortizations may mean less available credit. If you have an income of $50,000 a year you would qualify for approximately $242,307 over 35 years . If the amortization is reduced to 30 years , they would then only qualify for $ 224,584 . That is a reduction of almost $18,000.* If you were to choose a mortgage of approximately $ 250,000 at 3.99% interest and shorten the amortization it from 35 years to 30 years your monthly payments would increase approximately $87 a month. If you have any questions on the new mortgage rules, please do not hesitate to contact me. *For illustration purposes, I have used average property taxes of $2000 and standard $100 for heating. I have also not factored in any additional debts

The basic Home Owner’s Grant for Prince George residents has increased to $770 as of January 2011 https://cobweb.city.pg.bc.ca/tempestlive/webinquiry/frames.cfm

http://www.youtube.com/watch?v=AKgePpjy1Jw

As most know by now, the government will ban insured refinances over 85% loan-to-value on March 18. This has raised a question about mortgages registered as a collateral charge (like those offered by certain banks [e.g., TD] and credit unions). Moving a collateral charge mortgage generally requires a refinance. However, the Finance Department’s Monday announcement didn’t carve out an exception for them. Therefore, it appeared that some people might be prevented from switching lenders if their collateral charge mortgage had an LTV higher than 85%. We’ve now received welcomed clarification on this policy from CMHC. Benoit Sanscartier, Director, Insurance Policy and Technology Operations, says CMHC will allow an exception to the refinance restriction for qualified borrowers who need to refinance to switch lenders. “We don’t consider these refinances in the traditional sense,” said Benoit. The key is that the borrower must not be increasing their loan amount or amortization. CMHC has long

Check out my video on the recent changes to mortgage lending rules in Canada http://www.youtube.com/watch?v=Nxn8cQnrg18

http://www.financialpost.com/personal-finance/Flaherty+tightens+mortgage+rules/4119505/story.html

http://www.youtube.com/watch?v=pj9jCD7ZMMM

You'd trade-up your mortgage for the same reason that you'd trade-up your job, car, or living arrangement-because circumstances change. What you need out of a mortgage today may be different from what you needed five years ago. Refinancing can achieve one or more of the following objectives: 1. Lower your monthly payment. You can reduce your monthly payment by refinancing to a lower interest rate. Have market rates dropped since your old mortgage was funded? Has your credit improved? Has your home increased in value? Any one of these happenings could mean that you'd qualify for a lower rate. 2. Shorten your pay-off term. Paying off your mortgage loan in 15 years rather than in 25 can save you tens of thousands of dollars in interest over the life of the loan. If you can afford the higher monthly payment and plan to stay in the home indefinitely, it's well worth it. 3. Optimize your loan structure. Your current loan structure may no longer be suitable for you in the futu

In many ways, 2010 was the start of a return to normalcy. Interest rates began their slow march back to sustainable levels, non-insured mortgage options returned to the marketplace, and private default insurers re-asserted themselves (Genworth and Canada Guaranty). In other ways, 2010 was atypical. The government enacted sweeping new mortgage rules and mortgage rates yo-yo’d back to all-time lows despite widespread predictions otherwise. Among these developments came three of the year’s top mortgage trends. 1. New Mortgage Guidelines: In an effort to pre-empt excessive borrowing, the government imposed far-reaching new mortgage rules. That made it harder to qualify for a variable-rate mortgage, harder to consolidate debt, harder to get a rental property mortgage, and harder for self-employed homeowners to qualify for high-ratio financing. 2. Astonishing Rates: Mortgage rates made historic lows in 2010. In turn, rock-bottom rates and extended amortizations stoked home demand (some say o