Christine Buemann Mortgage Broker

The Bank of Canada announced today that it is maintaining its target for the overnight rate at 1%. In turn, prime rate will remain at 3.00%

Canada Mortgage and House Corporation released its housing Market Outlook for the second quarter in 2011. Here are a few highlights. • Housing starts: Housing starts are moving back in line with demographic fundamentals, after peaking in the second quarter of 2010. Since then, they have progressively moderated, including in the first quarter of 2011. Housing starts are forecast to be 179,500 units for 2011 and 185,300 units for 2012. • Resales: Sales of existing homes through the Multiple Listing Service® (MLS®) have made further gains in the first quarter of 2011. MLS® sales are expected to increase modestly both in 2011 and in 2012. Overall, 452,100 sales are expected in 2011, followed by 461,300 in 2012. • Resale prices: The increase in the average MLS® price in the first quarter of 2011 was stronger than expected, but the average MLS® price is expected to moderate throughout the remainder of the year. For 2011, the average MLS® price is forecast to be $361,100 while 2012 will see a

Feature: Stated Income Product I currently have access to a stated income product that is extremely beneficial for clients who do not make as much “on paper”. Most lenders offer Stated Income products, but the difference with this particular lender is that they accept clients who earn a base salary plus commission (or tips) instead of only self-employed clients. It is usually in the client’s best interest to try an “A” lender first, but if you are looking for alternative lending options, it is nice to know that they are available. The interest rates for this particular product are slightly higher due to the higher level of risk the lender is assuming therefore it should be considered a back up option. 5.5% cash-back for down payment Please note that the lender who is currently offering 5.5% cash-back that can be used towards the down payment will only be offering this until June 30th, 2011. After that time, I will still have access to cash-back for down payment products, but only up to

A meagre 1 in 4 borrowers made extra principal payments on their mortgage last year. There are easy ways to make extra payments and erase your mortgage many years quicker. What follows is a basic strategy to shorten your effective amortization dramatically, and barely make a dent in your bank account. The idea isn’t fancy. All you need to do is increase your mortgage payments each year to match the rate of inflation. Over the long-haul, inflation has come in at about 2% on average. Two percent also happens to be a reasonable expectation of annual wage growth—at least according to long-term averages and income growth forecasts. If you’re a typical Canadian family earning $68,860* a year, 2% wage growth suggests you’ll make about $1,377 more next year. So, given this information, let’s consider the median Canadian family with a “typical” mortgage (e.g., a $250,000 loan fixed at 3.99% interest, with a 30-year amortization and $1,187 monthly payments). If a borrower proceeded down this pat

Time is running out to take advantage of the 5.5% cash-back for down payment. Contact me today for details http://www.youtube.com/watch?v=grGobhmlBOA

One common misconception that I hear frequently is that mobile homes are cheaper and easier to purchase. Although they can be, if purchased on their own land, mobiles in parks tend to cost more over the long term than some buyers anticipate. There are several factors that contribute to this: • You generally cannot extend the amortization beyond 25 years (sometimes not past 10 or 15 years depending on the age of the home). This makes monthly payments higher, hence the buyers qualifying maximum mortgage amount will be lowered • Banks will usually charge their “posted rate” as opposed to the discounted rates that you may receive for a small house or duplex • Although you commonly pay less in property taxes for a mobile in a park, you will have to factor in the pad rent that is in addition to the taxes Here is a comparison of $120,000 purchase with 5% down. I have factored in $100 a month for heating as per the industry standard. I have also factored in CMHC fees. Mobile in park (at curren