Christine Buemann Mortgage Broker

If you are writing an offer on a home this holiday season, there are a few things to keep in mind... First and foremost - give yourself a lot of time. Unnecessary rushes put a so much pressure on a file that it can almost collapse it. Lawyers usually need 10 business days to prepare your documents so be sure that they have the complete file with plenty of time. Mortgage Brokers are usually available with extended hours however the banks they deal with will be closed. Remember that they are usually still receiving files during that time so they also have to deal with a backlog when they re-open. Insurance companies, Appraisers  and Inspectors are typically closed for a few days during the holidays as well.  If you need a pre-authorized debit form or certified cheque from your bank, you will want to do that as soon as possible as well.  If your down payment is coming from a refinance (or the equity in your current home), this will take a while as well. Refinances are typicall

One of the most frequent questions that I get is how much is needed for a down payment? There is a common misconception that First Time Buyers are able to put 5% down and then every purchase after that is 10%. That is just simply not the case. Anyone in Canada can put 5% down. In order to purchase an investment property, you need at least 20% down. Every lender and insurer will also likely want to see that you have at least 1.5% of the purchase price available for closing costs. That is not what your actual closing costs will be, just a generic estimate. Your down payment can be saved, gifted or borrowed. For more information on down payments and for any mortgage related questions, please feel free to contact me today. www.christinebuemann.com

There has been a lot of speculation recently about the change in Government and how it will affect the mortgage industry. It is well known that they are debating tightening up rules for mortgage lending yet again, but they have not yet confirmed what the changes will be.  Perhaps the most discussed option is the higher minimum down payment. The proposed change would be a gradual system with the new minimum down payment increasing to 7% for a purchase purchase of $500k and then to 10% for home purchases of $700k and higher. They are very clearly targeting the larger centres (Vancouver and Toronto) where many have felt the prices have been overinflated for quite some time. They have already changed the minim down payment to 20% for homes valued over $1M.  So how does this affect you? The main concern is First Time Buyers. In my area of Northern BC, the average home is around $275k so I don't feel like it will directly affect too many First Time Buyers. If the larger housing ma

Did you know that you can use "borrowed" money for a down payment. That means a line of credit, a re-payable gift, ext. The insurers each have a program that allows this as an acceptable form of down payment, the biggest thing is that the re-payment terms have to be included in your debts. It is slightly harder to qualify for but it's a great option if you don't quite have enough saved up and want to get into the housing market. For more information on this or for any mortgage related questions, please feel free to contact me today. www.christinebuemann.com

Why don't I qualify anymore? Mortgage lending has changed drastically over the past 5 years. We often hear of people who qualified for their mortgages a few years ago but no longer qualify for what they are looking for. Here is a recap of the most significant changes we have had over the past years: Shortened maximum amortizations. Once upon a time, you could stretch the amortization on a mortgage out to 40 years. That slowly crept back to 35, 30 and now 25. On a $250,000 at 2.69% for a 5 year fixed, that is roughly a $250 a month increase in payment. That also means you will need to earn roughly $8600 more a year in order to qualify for that same mortgage with a shortened amortization Debt ratio cutback: debt ratios have been set at 35% for GDS and 42% for TDS for quite some time. Borrowers with higher credit scores used to be able to go as high as 44% for both however several years ago, they capped the GDS at 39%. With an income of $50k and no other debts inclu

Here are a few tips to remember should you decide to keep your current home as a rental: Your property taxes will likely go up. Assuming you have bee claiming the $770 Annual homeowners grant, you can no longer claim it if you don't live in the property so you will want to budget for that and let your lender know if they withdrawing a tax portion with your mortgage payment Your home owner's insurance policy will change (and likely go up). Be sure to get quotes for the new insurance coverage as soon as possible. It's a good idea to ask your tenants to get renters insurance as well You will have to pay income tax on the income earned from your property. Since you will have to claim this income at tax time, be sure you budget for that You will likely have to pay capital gains tax when you sell the property (as it will now be an investment instead of your primary residence). You will definitely want to consult an Accountant about this If you have any questions

Are you purchasing a new home and considering what to do with your current home? Should you sell it, or maybe keep it as a rental? When it comes to financing your new purchase, every lender will treat your existing property a little differently. Most banks will want you to include the current mortgage payment, property tax and heat in your debts and will only allow you to add 50% of the rental income back to your income. As a Mortgage Broker, we have access to several lenders who use their own calculations which makes it much easier to qualify. Typically, they will use the rental income and take away the expenses as well as certain percentage for maintenance and vacancy. Any surplus is then added to your income and any deficit is added to your liabilities. Using this second method typically allows you to qualify for a much larger mortgage on your new purchase. Stay tuned next week and I will provide some tips (from personal experience) if you choose to keep your current h

The Bank of Canada announced this morning that they have dropped their Target Overnight Rate to .5% (down .25%). It will be interesting to see if the banks will follow and drop their Prime Lending Rate. Last time the BoC dropped it by .25%, the banks only dropped theirs by .15%. That was very unusual as the two rates have typically always been moved at the same. Stay tuned... www.christinebuemann.com

If you are in the market for a new home and you have 10% or less as your down payment, it is important to note that CMHC will be increasing their fees as of June 1st. The increase will be approximately 15% of the current rate. Who is CMHC? They provide default insurance to the banks which essentially covers the cost of the mortgage should the borrower default. The rates typically range from .60% to 3.35% and the premium is typically included in the total mortgage amount. They are funded and regulated by the Government of Canada and there are also 2 other private insurers – Genworth and Canada Guaranty. So what does this mean for you? Let's say you are purchasing a home for $300,000 with 5% down. Your new CMHC premium will increase by just under $1350 . That is also factored into the total mortgage amount which is amortized over 25 years. Your mortgage payment would increase by just over $6 a month at today’s rates* Although we are given until the end of the month to s