Christine Buemann Mortgage Broker

I have had a wonderful experience for the past 3 years at Key Life WCF but unfortunately as a growing company, they needed my office space for a new advisor. As of June 1 st , I have moved back in with Angela Crowe from Raymond James. She has just opened a new office and has completely renovated the inside. It looks awesome and I am excited to be here. My new office address is 1338 Central Street East. Here is a link to Google Maps . All of my other contact information will remain the same.     Please feel free to stop by and grab a coffee and check out my new space. As always, if you or anyone you know have any mortgage questions, I am always happy to help. Have a great day! www.christinebuemann.com

You may have heard that Investors Group has recently offered a 3 year variable rate at Prime – 1.01% (1.99% for now). Although this definitely could be a good deal for some, it is important to consider the fine print before getting wrapped up in the rate. Here are a few points to consider: ·          It is a collateral mortgage which makes switching from IG very challenging after the 3 year term is up. Typically you will need to refinance in order to get out of these mortgages which means you will need at least 20% equity in your home. If you cannot switch or refinance, you will be subject to IG’s mortgage rates at the time of renewal which are typically higher than the industry standard ·          It is a variable rate mortgage which means it (along with your mortgage payment) will fluctuate with prime rate. They do give you the option to “lock in” your rate which essentially means you can convert it to a fixed rate mortgage however you are again subject to their fixed rates whic

The Bank of Canada lowered their Qualifying Rate to 4.79% effective today. The Qualifying Rate is used for qualifying variable rate mortgages as well as terms with less than 5 years. Please refer to my previous blog posting on how a lower qualifying rate can benefit consumers.    I met with a manger from Genworth last week regarding their programs as well as the recent CMHC announcement and changes (see this post for information on changes). He has confirmed that although they understand the reasons behind CMHC’s changes, they will not be following suit. Canada Guaranty has also confirmed that they will not be implementing the same changes as CMHC to their “Low Doc Advantage” program for self-employed borrowers however they will be increasing their premiums for this particular program. As most people have heard, the maximum amortization for insured mortgages is now 25 years.   In order to avoid default insurance, you have to put at least 20% down. What many people aren’t

Last week, CMHC announced that it will be taking away 2 of their programs effective May 30, 2014. They are the Second Home program and the Self-Employed without traditional income verification programs. Here are the key components of the change: ·          You will now only be allowed to have one CMHC insured mortgage at a time ·          If you are self-employed, you will now need to provide the standard documentation   to support your declared income   Some scenarios of people it will affect the most are: ·          If you have a current CMHC insured mortgage and you wish to purchase another home and keep your current property as a rental ·          If parents wish to co-sign for a child however they already have a CMHC insured mortgage on their home ·          If parents wish to purchase a home for their child to live in (rent free), however they already have a CMHC insured mortgage ·          If parents have co-signed for a child and they wish to sell and purcha

The Bank of Canada’s Finance Minister Jim Flaherty was known for criticizing BMO’s 2.99% mortgage promotion. He even went as far as encouraging other banks not to follow suit. Now that he has stepped down, they have come out with their Spring special yet again. Although rates are always an important factor in a mortgage, it is important to look at all of the aspects and/or restrictions in a mortgage. This particular special has caught a lot of flack because of their restrictions but there are several other lenders and products on the market to be aware of as well. Here are a few of the restrictions on this particular BMO Special: ·          Pre-payment options are reduced to 10/10% ·          Amortization is capped at 25 years (most you can still go to 30 or 35 years with 20% down) ·          Full repayment before maturity can only occur if property is sold to an unrelated purchaser at fair market value or if the mortgage is renewed or refinanced into another BMO mortgage prod

The Bank of Canada decreased their Qualifying Rate to 4.99% which is great news for anyone looking for a term other than a 5-10 year fixed. You may wonder what the Qualifying Rate is or how it could affect your potential mortgage. As of April 19, 2010 all insured mortgages (less than 20% down) with a term of less than 5 years or a variable rate must be qualified at the current Qualifying Rate as opposed to the actual interest rate. Here is an example*: Purchase price       $300,000 Down payment     $  15,000 CMHC Premium   $ 7,837.50 Total Mortgage     $292,837.50 For this mortgage with a 5 year fixed rate term, you would need to earn just over $60,000 a year in income to qualify**. For this same mortgage at a variable rate or term less than 5 years, you would need to earn at least $70,000**. The Qualifying Rate was at 5.34% as a few weeks ago so this recent drop will definitely help those who will be subject to it.  With the same mortgage at that rate, you would

The mortgage world has patiently been awaiting CMHC’s announcement this morning. They recently announced that they will be increasing their premiums for mortgage loan insurance as of May 1 st , 2014. Mortgage loan insurance is mandatory in Canada if you have less than 20% down. Many lenders also purchase the insurance where the borrower has more money down and they cover the cost to minimize their exposure to risk. The premiums typically range from .60% to 3.35% of the total mortgage amount and it is generally included in your mortgage.    So what is mortgage loan insurance? It basically protects the lender in the case that the borrower defaults The example provided on the CMHC website is for a $250,000 mortgage at 3.49% with 5% down and a 25 year amortization. With the rate premium increase, the mortgage insurance premium on this loan would increase by $1000 and the borrower’s monthly payments would increase by approximately $5 a month. For more examples and for the

Amount     Under this plan, the maximum RRSP withdrawal is $25,000 for each eligible person. That is, a home buyer and his/her spouse may each withdraw up to $25,000 from their respective RRSPs. Eligibility     You have to be considered a first-time home buyer. You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal. Minimum Waiting Period     The RRSP contribution must be made a minimum of 90 days before any withdrawal is allowed. Payback     RRSP funds withdrawn for a first-time home purchase must be repaid in equal annual installments over a 15-year period. If more than the minimum amount is repaid during a year, the annual amount to be repaid in subsequent years is reduced. If less than the minimum is repaid, the shortfall must be in

If you are looking to buy a rental property, it is important to note that there have been several changes over the past few years. Here are the basics of what you should know: ·          You will need a down payment of at least 20% ·          Some lenders will no longer finance rental properties at all ·          Some lenders are charging the default insurance premiums to the client, regardless of the loan to value ratio ·          You can expect a slightly higher interest rate ·          Remember that you are not able to claim the Home Owner’s Grant on rentals, so you will have to factor in an addition $770 annually into your budget ·          You can expect slightly higher home insurance premiums ·          For “subject properties”, typically only 50% of the rental income can be added to the applicant’s gross annual income for qualifying purposes. All other expenses including property taxes and heat must be including as liabilities ·          Some lenders have a

Recent preliminary studies have shown elevated levels of radon in the Prince George area and for that reason, the BC Lung Association is offering free testing kits to residents. What is Radon? “[It] is a radioactive, invisible, odorless gas that can seep into your home through cracks in floors, walls and foundations. You can't see radon. You can't smell it or taste it. But when radon seeps into a closed-in space like a house, it can be harmful”. Find out more information here   Here is a link to the press release detailing the study that provides free kits http://www.bc.lung.ca/mediaroom/news_releases/nr_1_2014.html   Here is a link to the Prince George brochure which contains contact information and details on how to get your free kit. http://www.radonaware.ca/indoor-radon-studies/prince-george

This is the time of year where people typically take a look at their financial situation and make goals for the upcoming year. Whether it be to do renovations, pay off outstanding debt, invest or whatever else you choose, there are a few things to know about refinancing in Canada. You can only borrow up to a total of 80% of the value of your property. ·          It is important to note that most lenders will want to see a recent appraisal for the property. This is typically an upfront cost as the lender needs to know what the current value is before they can determine the maximum mortgage amount. BC Assessments are typically not used as they may not be a true reflection of the market value. The maximum amortization you can have is 25 years regardless of your current amortization. ·          If your current amortization was set at 30 years, your mortgage payments will be slightly lower. It is important to keep this in mind both for qualifying and for your household budget