Christine Buemann Mortgage Broker

Bond yields are start to rise , which in turn means fixed rates are likely to rise soon as well . Buyers should be looking for 120 day rate holds as soon as possible! Using a Mortgage Broker means that you only have to apply once and you can have multiple rates/terms held with different lenders.  I have an easy online application for anyone looking to get the ball rolling quickly. Let me know if you have any questions or concerns. Have a great day! www.christinebuemann.ca

Congrats on your accepted offer! Here is a typical financing timeline so you know what to expect: Offer Accepted Your Realtor will send over the full MLS, Contract of Purchase and Sale with PDS and all addendums, once signed. If it is a strata, there will be additional documents. If there is no Realtor involved, I suggest having a Lawyer or Notary draw up the contract when possible.   Once we have received all of these documents, we will update the application with the property details and discuss the best lender, rate and product options.   Approval We will submit to the lender for approval. This typically takes 24-48 hours . The lender must also get approval from the default insurer (if applicable) at this point. Some lenders require income and property documents up front. Supporting Documents Once we ...

Are you ready to write an offer on a new property? Here are a few tips that will help make your financing of that property a little smoother: Be Prepared Many lenders now require all documents up front. If you do not have all of the required documents on hand, make sure to gather them ASAP. This is the most common cause for delay. They will likely be calling your employer to verify your employment details. Ensure this person will be available and can confirm the details. Timing is everything Try to leave yourself enough time for subject removal as well as closing. It is much easier to move up the dates, than it is to extend them. Some lenders offer “Quick Close” rates for deals closing within 30-60 days. Most rates are held for up to 120 days. If an appraisal is required, this can add an extra day or two to the financing condition. If you are able to put your closing and su...

The Government has just released the final version of Guideline B-20 . The most significant change that they have added is the "stress test' to uninsured mortgages. What is an uninsured mortgage? One where there is no default insurance secured to the mortgage. If you are putting less than 20% down, your mortgage currently has to be insured through CMHC, Genworth or Canada Guaranty. What most consumers don't realize is that even when putting more than 20% down, many lenders have still been obtaining this default insurance, they just cover the cost it. This is called portfolio insurance and it essentially allows lenders to finance mortgages with lower interest rates to the consumer . As of last year's set of rule changes, the following types of mortgages can no longer be insured: Refinances Rental properties Properties valued over $1M Mortgages with longer than 25 year amortizations Mortgages with 20% down where the contract rate is required to qualify ...

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...

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...

Every time your mortgage term is up, you have the option to renew with your current lender or you can switch to another lender if they are offering you a better rate or more suitable product. The statistics are staggering as to how many people simply renew with their current lender when they could have gotten a better rate and saved thousands of dollars by switching to another lender or least negotiating a better rate with their current one. The main reason why many choose to stay with their current lender is because they generally have to re-qualify if they switch lenders. We now have access to a lender who has great rates and they are current offering a simplified transfer in program. Here are the program requirements: ·          No new money is being added (so no capping of penalties/fees) ·          Valid CMHC or GENWORTH Insurance ·          All Appli...

Are you considering including renovations in your next home purchase? Each insurer ( CMHC , Genworth and CG ) has their own guidelines however here are the basics on how it works: ·          You can generally add up to 10% of the value of your purchase price into the mortgage (potentially to 20%, depending on the lender and insurer) ·          It is important to note that your mortgage will be based on the total improved value which means that your down payment and closing costs will be increased o    For example, if you are purchasing a home for $200,000 and you plan to include $20,000 in renovations, your new purchase price becomes $220,000 and you are required to put $11,000 down instead of $10,000 ·          You will have to provide quotes to for the work that is going to be completed prior to the mortgage being approved o    Items ...

Going through a divorce or separation is a tough time, so adjusting your mortgage accordingly shouldn’t be. Several lenders have programs in place for this specific situation. They allow you to have access of up to 95% of the equity in your home to facilitate the buy-out of one partner and allow more room for debt consolidation. Refinances in Canada typically have a   maximum of 80% loan to value so this is a drastic increase to the available funds. With interest rates at all time lows, it is also a great time to wrap that high interest credit card debt into one low monthly payment. If your house is valued at $250,000, your typical refinance will allow you access to $200,000 . Under this program, you could have access of up to $237,500. Here is what the lender will need: ·     Standard income confirmation documents ·     Finalized separation agreement ·     Offer to purchase (potentially) ·     Appraisal ...

  If you are putting less than 20% as your down payment in Canada, your mortgage must be "insured". This type of insurance is called default insurance and protects the lender should you default on your mortgage. It is percentage based and is generally added directly into your mortgage total. Most Canadians have heard of CMHC, however did you know there are now two more alternatives for default insurance in Canada? Over the past few years, Genworth and Canada Guaranty have emerged as healthy competitors. All three have very similar guidelines such as: ·          minimum credit scores ·          minimum debt ratios ·          minimum loan to value ratios ·          down payment source options ·          supporting document requirements There are however district diff...

There are several key features that you should look for when getting a mortgage. One of them is whether the mortgage is "portable". This means that if you purchase a new home prior to your current term being up, you can simply bring your mortgage to your new home without having to pay the payout penalty. Typically the sale of your current home and purchase of your new home have to happen within 60-120 days (again, depending on your lender). Every lender will have different policies but generally you will have 2 options. 1) If you keep all of the terms of your mortgage the same (without increasing the balance), then you can typically keep your current rate. If you are downsizing then this can be great, however if you are looking to increase the mortgage amount then your down payment will need to cover the difference between your current mortgage amount and the property purchase price. Alternatively, you could consider a small second mortgage or option #2. 2) They will ...

What could you do with an extra $15,000? If I were to offer you a cheque for $15,000 or even $2300 in exchange for a few documents would you turn in down because it was easier to simply renew your mortgage at your current lender? There are numerous published reports that confirm that most borrowers simply sign and return their bank's offer letter upon their mortgage renewal. More often than not, the rates they offer you are not the lowest available rates and they are definitely not as low as a Mortgage Broker could get you. If you take it upon yourself, you may very well be able to negotiate a better rate with them but how will you know if it is the best you can get? Here is an example… If your lender is offering you 4.24% for a 5 year fixed on a $250,000 mortgage* you would be paying roughly $15,600 more in interest than the standard 2.89% that most brokers are offering for the same term.    Now let’s say you negotiated with your lender and they were willing to drop you...

It is no secret that the real estate market starts to heat back up in the Spring. In fact, it is traditionally one of the busiest seasons of the year for purchasing real estate. If you or anyone you know is considering purchasing a new home this Spring or Summer, now is the time to prepare. Arranging your finances should be the first step you take. Here are a few reasons to get pre-approved: ·          Rate Holds: Most lenders offer a 120 day rate hold meaning you can take advantage of the current low rates. If rates go down, you will get the lower rate, however if they go up, your rate is locked in. ·          Credit Check: Your broker will pull your credit. There are so many cases of credit companies or reporting companies having reporting errors. Knowing where you stand with your credit gives you time to fix any errors or address any problems right away ·       ...

With all of the changes in mortgage lending over the last while, the one thing that all lenders and insurers (CMHC, CG & Genworth) have cracked down on and that is supporting documents. The best way to look at it is that every piece of information from your application has to be verified. Here is a list of the basic supporting documents that will be required when you get your next mortgage. · Letter of employment o    Stating your salary, start date and tenure o    Should be on company letterhead o    Should be written within the last 30 days o    Should have contact information for the person who can verify the information ·   2 recent paystubs o    Should be within the last 30-60 days o    The YTD and wage much be a true reflection of the income used to qualify ·   Notice of Assessment for the last 2 years   if you are part time or receive any overtime, bonuses, or commission ·   Proof of d...