Christine Buemann Mortgage Broker

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

Traditionally the role of a Mortgage Broker was viewed as an alternative if you were declined by “your” bank. Times have changed and the role of independent brokers has evolved drastically. More and more people are preferring to have an professional work on their behalf instead of negotiating directly with the bank. Not only are the rates we have access to typically lower, you are also able to have an unbiased opinion as to what product / lender will be most suitable for you in order to maximize your savings potential. Scotia, TD, CIBC and RBC all currently have the same current rate “special” of 3.79%. I currently have access to a great lender offering a “special” of 3.39%. Let’s compare the numbers. Here is a breakdown of the savings for the following mortgage amounts: $200,000 mortgage ·          $43 a month ·          $3800 over the term $250,000 mortgage ·      ...

Bond rates have hit a 2 year high! What does that mean for you? It means that there is more pressure on fixed rates and most lenders are starting to increase them once again. It is important to note that fixed rate mortgages are influenced mainly by Government of Canada bond yields. Variable rate mortgages rely heavily on the Government’s overnight target rate which sets the Bank’s prime rate. S everal months ago, we could easily get 5 year fixed rate mortgages at 2.89%. After these current rate increases, most lenders will be offering around 3.59% for their “discounted” rates. On a $300,000 mortgage, that is a difference of almost $110 a month and almost $10,000 interest over a 5 year term.     Most lenders will offer pre-approvals or rate holds which may be slightly higher than their discounted rates. If you are considering purchasing or refinancing – it is a good idea to lock in to a 120 rate hold as soon as possible. Please contact me today for current rates or f...

As I discussed in my previous blog posting, the interest rate is an important aspect of a mortgage, but is not the only factor to consider. There are other “features” within a mortgage that can be equally as important. Here are a few: ·          Payout penalty calculations: how the lender calculates what your penalty will be if you pay you pay out your mortgage out before the end of the term ·          Pre-payment privileges: how much principle you can pay down annually without a penalty ·          Portability: if you can “port” the mortgage to another home should you choose to move ·          Assume-ability : if someone can “assume” the terms and balance of your mortgage ·          Blend and refinance-able : if they will allow you to blend the rate of your mortgage with t...