Christine Buemann Mortgage Broker

I am so excited to share with you, Kyla Snyder, the newest member of my team. Kyla has extensive experience in Customer Service as well as 3+ years at RE/MAX and also conveyance experience from Wilson King Law Office. As the Client Care Manager, Kyla's role is to ensure that every client is taken care of from the time they contact us, until after the mortgage funds and beyond.  If you have any questions or comments, please feel free to contact Kyla or myself.

Getting pre-approved is a very important, first step in the home buying process. Regardless of whether you are experienced with the process or a first time buyer it is very important to know exactly where you stand financially before considering a new purchase. Mortgage lending guidelines are constantly changing, and due to the economic instability over the last few years, mortgage lending has changed drastically.   There are also issues that may arise on your credit of which you are unaware. Most errors can be rectified easily, but it will take time for the reporting to be updated. It is best to deal with any errors prior to having committed to a specific timeline. Although pre-approvals are extremely important, they should not be relied on 100% at the purchase time. It is important to have a full approval of both the applicant and the property before considering the financing to be secure. Once you are pre-approved it is important to be aware of the different factors that may

When you are putting less than 20% down in Canada, your mortgage has to be insured through CMHC , Genworth or Canada Guaranty . They provide lenders with default insurance in case borrowers default on their mortgage. Traditionally, if you were putting more than 20% down, you were able to avoid this cost as it was covered by the lender if required. The Government has implemented many rule changes which directly impact lender’s ability to rely on default insurance for conventional mortgages. Most lenders have now started classifying 2 categories: “insurable” and “uninsurable”. While they are still able to provide uninsurable products, most of those options now come with a higher rate attached. Here are a few examples of mortgage which can no longer be insured: Rental properties Refinances Amortizations longer than 25 years Applications that do not qualify using the Bank of Canada’s rate Properties over $1M Applicants with credit scores under 600 Here are CM

* PLEASE NOTE: Lenders will want proof that you have at least 1.5% of the purchase price for closing costs . This is not how much they will actually be, but rather a generic estimate. Every home will have different costs associated with purchasing it. Please contact me directly for estimates on the items below. Deposit -Paid to you Realtor usually upon acceptance or subject removal $ Down Payment -Paid on closing date with lawyer. Minimum 5%. $ Default Insurance $ Property Tax Adjustment –Calculated by your lawyer/notary at completion $ Property Tax Hold-back – If the lender is paying the property taxes on your behalf, they may require a lump sum at closing to start the property tax account   $ Utility Transfer fees – BC Gas, Hydro, Telephone, Cable $ Property Transfer Tax -Refer to your lawyer for details.  C

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

Your down payment can be gifted from a family member. The down payment may be borrowed as long as you can service the debt. You may include home renovations in your mortgage purchase or refinance. If the home you are purchasing has a legal suite, you may be able to add 50% (or potentially 100%) of the rental income to your total income for qualification Many mortgages are portable to another home should you choose to move. Some mortgages are assumable by a subsequent purchaser. Investment, pension, disability, child support, and rental income are all acceptable sources of income for mortgage qualification. Some lenders will also accept child tax credit, spousal support payments and foster child income. Most mortgages can be paid monthly, semi-monthly, (accelerated) bi-weekly or (accelerated) weekly. Some lenders offer cash back incentives, however they can no longer be used towards the downpayment.

“Debt servicing” is your ability to meet all payments without exceeding the income received by you. There are two ratios that are examined by financial institutions to determine whether you can debt service a mortgage. The first one is called the “gross debt service” ratio and the second is called the “total debt service” ratio. With the gross debt service ratio, a lender looks at your annual income in comparison to your proposed annual mortgage payments (including heat and property taxes). This ratio cannot exceed 35%. For those who have exceptional credit, the allowable GDS ratios can increase to as high as 39%. Once you meet these criteria, the lender then examines your total debt service ratio. This ratio involves comparing your annual income to the total amount of debts you have (the proposed mortgage payment, credit cards, loans, personal lines of credit, support payments and all other financing obligations). Generally, this ratio cannot exceed 42%. For those who have ex

Beacon scores are the score given to you by the credit collection companies, Equifax and Trans Union , and are built by grouping data into predictive characteristics in five categories. These scores are used by financial institutions and credit companies in order to determine your credit worthiness. While each credit scoring model evaluates credit file information differently, the following factors are commonly considered: Payment history (approximately 35% of your score is based on this category) Payment information on accounts such as credit cards, credit lines; retail department store accounts; installment loans, auto and student loans; finance company accounts, home equity and mortgage loans Public record and collection items such as bankruptcies, foreclosures, wage attachments, liens, judgments, and delinquencies reported to collection agencies Details on late or missed payments, public record items, and collection items (particularly how late the payments were, how much w

What is a “High Ratio” Mortgage? ·          A mortgage with a down payment of less than 20% What is a “Conventional” Mortgage? ·          A mortgage with a down payment of at least 20% What is a “Fixed Term” Mortgage? ·          The Mortgage interest rate and payment are set for a specific term anywhere from 1 year to 10 years.   This mortgage can only be paid prior to the end of the term by paying a penalty. What is an “Open Mortgage”? ·          The Mortgage interest rate and payment are sent for a specific term normally from 6 months to 2 years.   These mortgages can be paid out at any time without penalty. What is a “Variable Rate” Mortgage? ·          The Mortgage rate fluctuates with the prime rate either at the prime rate or at a specified rate above or below prime. What is a “Secured Line of Credit”? ·          Commonly referred to as a Home Equity Line of Credit or HELOC. It is a revolving line of credit with an interest rate that floats with the