Christine Buemann Mortgage Broker

http://www.youtube.com/watch?v=AKgePpjy1Jw

As most know by now, the government will ban insured refinances over 85% loan-to-value on March 18. This has raised a question about mortgages registered as a collateral charge (like those offered by certain banks [e.g., TD] and credit unions). Moving a collateral charge mortgage generally requires a refinance. However, the Finance Department’s Monday announcement didn’t carve out an exception for them. Therefore, it appeared that some people might be prevented from switching lenders if their collateral charge mortgage had an LTV higher than 85%. We’ve now received welcomed clarification on this policy from CMHC. Benoit Sanscartier, Director, Insurance Policy and Technology Operations, says CMHC will allow an exception to the refinance restriction for qualified borrowers who need to refinance to switch lenders. “We don’t consider these refinances in the traditional sense,” said Benoit. The key is that the borrower must not be increasing their loan amount or amortization. CMHC has long ...

Check out my video on the recent changes to mortgage lending rules in Canada http://www.youtube.com/watch?v=Nxn8cQnrg18

http://www.financialpost.com/personal-finance/Flaherty+tightens+mortgage+rules/4119505/story.html

http://www.youtube.com/watch?v=pj9jCD7ZMMM

You'd trade-up your mortgage for the same reason that you'd trade-up your job, car, or living arrangement-because circumstances change. What you need out of a mortgage today may be different from what you needed five years ago. Refinancing can achieve one or more of the following objectives: 1. Lower your monthly payment. You can reduce your monthly payment by refinancing to a lower interest rate. Have market rates dropped since your old mortgage was funded? Has your credit improved? Has your home increased in value? Any one of these happenings could mean that you'd qualify for a lower rate. 2. Shorten your pay-off term. Paying off your mortgage loan in 15 years rather than in 25 can save you tens of thousands of dollars in interest over the life of the loan. If you can afford the higher monthly payment and plan to stay in the home indefinitely, it's well worth it. 3. Optimize your loan structure. Your current loan structure may no longer be suitable for you in the futu...

In many ways, 2010 was the start of a return to normalcy. Interest rates began their slow march back to sustainable levels, non-insured mortgage options returned to the marketplace, and private default insurers re-asserted themselves (Genworth and Canada Guaranty). In other ways, 2010 was atypical. The government enacted sweeping new mortgage rules and mortgage rates yo-yo’d back to all-time lows despite widespread predictions otherwise. Among these developments came three of the year’s top mortgage trends. 1. New Mortgage Guidelines: In an effort to pre-empt excessive borrowing, the government imposed far-reaching new mortgage rules. That made it harder to qualify for a variable-rate mortgage, harder to consolidate debt, harder to get a rental property mortgage, and harder for self-employed homeowners to qualify for high-ratio financing. 2. Astonishing Rates: Mortgage rates made historic lows in 2010. In turn, rock-bottom rates and extended amortizations stoked home demand (some say o...

Deeply-discounted variable rates have historically beat out 5-year fixed rates roughly 77% of the time.But CIBC economist Benjamin Tal suggests the coming five years may “slightly” favour fixed rates. He displayed this chart at the CAAMP Forum on Monday that projects that the typical variable-rate mortgage (VRM) will be more expensive over five years than the typical 5-year fixed. That’s based on forward swap rates and a closing date in January 2011, says Tal.Tal was careful to point out that this isn’t a blanket recommendation of fixed rates; it’s more of a commentary on how narrow the gap has become between fixed and variable mortgages, based on market rate expectations.Some people will undoubtedly look at this and see no point in assuming the risk of a VRM given the minimal projected cost difference.Others will remain skeptical, with the belief that North America’s economy isn’t strong enough to spark sustained 3%+ inflation (and the rapid rate increases that would come with it). Th...

Save thousands by cutting your property tax bill. Einstein’s general theory of relativity. Lady Gaga’s popularity. Your home’s assessed value. Some things just seem utterly incomprehensible. But solving the property tax assessment mystery is worthwhile: appealing an incorrect valuation could save you thousands of dollars. Here’s how to do it: Check for fairness Property taxes, which pay for most municipal services, are the product of your home’s assessed value multiplied by the local tax rate. You can’t change the tax rate, but you can argue that you have been over-assessed. Begin by checking your home’s assessment report. This is typically a computerized estimate of your home’s selling price, based on sales information from a particular assessment date. Is it fair? If a similar house on your block sold for much less than your valuation around the time of the assessment date, you may have evidence of over-assessment. Fix factual errors Assessments are carried out by provincial agencies...