Christine Buemann Mortgage Broker

There have been many changes in the mortgage world in the past 3 years, more specifically in the past 6-12 months. There are many changes to lender policies that have unfortunately moved qualified buyers to a position where they cannot qualify for a mortgage or perhaps have fewer options. There was a well written article in Canadian Mortgage Trends last week ( please take a moment to read it here ) and here are a few changes they have highlighted: ·     Some lenders now factor in a monthly payment for secured credit lines with  zero balance.    *this is by far creating the most issues ·     On revolving unsecured credit, monthly payments are being set at 3% of the outstanding balance . ·     Many lenders now calculate heating costs using a specific formula based on property size . ·     Conventional variable-rate mortgages and fixed terms less than 5 years are now qualified using the Benchmark Rate.   Here are a few more changes that I have noticed as well: ·    

There are 2 different ratios that lenders use in order to determine your maximum mortgage amount. (GDS) Gross Debt Serving Ratio : This pertains to the costs associated with owning the home. That includes your mortgage payment, property taxes and heat. Traditionally $100 flat rate has always been used for the heat amount, however since the mortgage changes last year that amount will vary by lender. No more than 35% of your gross income can be used towards the combined total of those expenses. If you have a credit score above 680, that is increased to 39%   (TDS) Total Debt Servicing Ratio: That includes all of the expenses listed for the GDS as well as any other monthly obligations. That could be credit cards payments, loans, child support ext. Keep in mind that for most revolving credit (credit cards, lines of credit ext.), they will use at least 3% of the balance as your monthly payment. No more than 42% of your gross income can be used towards all of your debts combi

It is that time of year again… property tax time! Property taxes are due July 1 st , 2013 and that covers from January to December 2013. There are several ways that homeowners can pay their property taxes: Pay them annually or make arrangements at City Hall to make instalments throughout the year. Here is their contact information: http://princegeorge.ca/Pages/Contact.aspx   (if you do not live in Prince George, BC please contact your municipality for this information) If you have a mortgage on your property, your lender may pay them on your behalf and take out monthly instalments with your mortgage payment. If you have purchased a home in the last several months, it is important to find out your lender’s guidelines on property tax payments. Some lenders will start collecting for next year and it will still be your responsibility to pay for this year’s taxes. If you cannot find your property tax information, you can search for