Christine Buemann Mortgage Broker

Thinking about buying a home that has a rental suite? This can be a great idea if you want to help offset the cost of your home expenses, and it can also potentially help with qualifying for a mortgage on your new purchase.  Most lenders will allow you to add 50% of the rental income back to your income for qualifying, however we also have some who will consider 100% for qualified borrowers! This would increase the maximum mortgage available by approximately $65k. Here are a few tips if you are considering this option: Although it may not need to be a "legal" suite, they will want to see that it has a separate entrance along with a kitchen and bathroom in the unit Some lenders may only consider income from the basement unit (in case you plan on living in the upper unit) Roommate income is not allowed by the insurers as rental income Lenders will require a signed lease agreement as confirmation of the rental income. Most prefer a year lease. Some may consider a stat...

This is a friendly reminder that the new mortgage rules will come into effect next week. Many lenders have already stopped taking in applications under the old rules.  We still have 2 lenders who will honour pre-approvals for 120 days (most won't) so if you are looking to purchase with 20% or more down, or refinance in the New Year, you should be getting your application and full documents in ASAP! I have a quick and easy   ONLINE APPLICATION if anyone is interested as well. Please feel free to contact me with any questions or concerns. www.christinebuemann.ca 

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...

Check out my short video on the new mortgage rules coming in January!

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 ...

  Interest Rates are starting to rise Bond yields have been putting pressure on fixed interest rates for mortgages. As of this morning, they have started to rise anywhere from .1-.2%. For a $300k mortgage, a rise in rate from the current 2.34% to an average rate of 2.49% would be an increase of $22.30 a month in payment. This also means $2109.32 more in interest over the 5 year term. Don't hesitate to contact me with any questions or concerns. www.christinebuemann.com

PROPERTY TAX TIME It is that time of year again… property tax time! Property taxes are due July 1 st , 2016 and that covers the period from January to December 2016. There are several ways that homeowners can pay their property taxes: Pay them annually or make arrangements at City Hall to make instalments throughout the year. Here is their contact information .Here some information on the pre-payment options . You can also set up pre-payments for your city utilities If you have a mortgage on your property, your lender may pay them on your behalf and take out monthly instalments with your mortgage payment. If you have purchased a home in the last several months, it is important to find out your lender’s guidelines on property tax payments. Some lenders will start collecting for next year and it will still be your responsibility to pay for this year’s taxes. If you cannot find your property tax information, you can search for it here: https://cobweb.princegeorge. ca/ It ...

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...

Paying off your mortgage can seem like a daunting task. While statistically, most Canadians are putting extra money own every month, here is a gentle reminder about how a little bit can go a long way when it comes to mortgages. On a $250,000 mortgage here are a few scenarios that can help you cut years off your mortgage: ·          Switching to bi-weekly or weekly payments . You could cut almost 3 years off of your amortization by simply switching to accelerated bi-weekly or weekly payments. ·          Round up the bi-weekly payments.   The original payment would be roughly $617 so if you rounded that up to $650, you could cut off 4.5 years. ·          Increase your monthly payments. Monthly payments simply work better for some people. If you were to round up your roughly $1234 payment to $1300 a month, you could still cut off 2 years. We are still...

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 ·      ...

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...

Are you currently shopping for a home? If you are getting ready to write an offer on a home this holiday season, here are a few helpful hints that I have learnt from experience: ·          Realtor / Mortgage Broker : if your Realtor or Mortgage Broker is away over the holidays, it is a good idea to meet with their replacement prior to them leaving. If you don't feel comfortable with their replacement, be honest with them. They can generally have someone else look after your needs while they are away to ensure you have a positive experience ·          Lawyer or Notary: if your closing date is set to be at the end of December, find out what days your lawyer's office is open and make sure   they can take on your file ·          Home Inspector / Appraiser: check the availability of your Home Inspector and/or Appraiser to have an accurate time frame for you...

Do you want to know what size of mortgage you qualify for but are unsure of what income to use? When calculating debt ratios, it is very important to know how much to use as your qualifying income. Here are a few basic guidelines: L enders will use the average of your last 2 year's Gross income if: ·          your income fluctuates ·          you receive bonuses or overtime ·          you are part time (unless you are guaranteed a certain number of hours) ·          you are self-employed ·          you are paid on commission ·          you are paid as a sub-contractor ·          you are using pension income ·          you are using investment income This amo...