Christine Buemann Mortgage Broker

Why don't I qualify anymore? Mortgage lending has changed drastically over the past 5 years. We often hear of people who qualified for their mortgages a few years ago but no longer qualify for what they are looking for. Here is a recap of the most significant changes we have had over the past years: Shortened maximum amortizations. Once upon a time, you could stretch the amortization on a mortgage out to 40 years. That slowly crept back to 35, 30 and now 25. On a $250,000 at 2.69% for a 5 year fixed, that is roughly a $250 a month increase in payment. That also means you will need to earn roughly $8600 more a year in order to qualify for that same mortgage with a shortened amortization Debt ratio cutback: debt ratios have been set at 35% for GDS and 42% for TDS for quite some time. Borrowers with higher credit scores used to be able to go as high as 44% for both however several years ago, they capped the GDS at 39%. With an income of $50k and no other debts inclu...

Here are a few tips to remember should you decide to keep your current home as a rental: Your property taxes will likely go up. Assuming you have bee claiming the $770 Annual homeowners grant, you can no longer claim it if you don't live in the property so you will want to budget for that and let your lender know if they withdrawing a tax portion with your mortgage payment Your home owner's insurance policy will change (and likely go up). Be sure to get quotes for the new insurance coverage as soon as possible. It's a good idea to ask your tenants to get renters insurance as well You will have to pay income tax on the income earned from your property. Since you will have to claim this income at tax time, be sure you budget for that You will likely have to pay capital gains tax when you sell the property (as it will now be an investment instead of your primary residence). You will definitely want to consult an Accountant about this If you have any questions ...

Are you purchasing a new home and considering what to do with your current home? Should you sell it, or maybe keep it as a rental? When it comes to financing your new purchase, every lender will treat your existing property a little differently. Most banks will want you to include the current mortgage payment, property tax and heat in your debts and will only allow you to add 50% of the rental income back to your income. As a Mortgage Broker, we have access to several lenders who use their own calculations which makes it much easier to qualify. Typically, they will use the rental income and take away the expenses as well as certain percentage for maintenance and vacancy. Any surplus is then added to your income and any deficit is added to your liabilities. Using this second method typically allows you to qualify for a much larger mortgage on your new purchase. Stay tuned next week and I will provide some tips (from personal experience) if you choose to ...

The Bank of Canada announced this morning that they have dropped their Target Overnight Rate to .5% (down .25%). It will be interesting to see if the banks will follow and drop their Prime Lending Rate. Last time the BoC dropped it by .25%, the banks only dropped theirs by .15%. That was very unusual as the two rates have typically always been moved at the same. Stay tuned... www.christinebuemann.com

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...

I have had a wonderful experience for the past 3 years at Key Life WCF but unfortunately as a growing company, they needed my office space for a new advisor. As of June 1 st , I have moved back in with Angela Crowe from Raymond James. She has just opened a new office and has completely renovated the inside. It looks awesome and I am excited to be here. My new office address is 1338 Central Street East. Here is a link to Google Maps . All of my other contact information will remain the same.     Please feel free to stop by and grab a coffee and check out my new space. As always, if you or anyone you know have any mortgage questions, I am always happy to help. Have a great day! www.christinebuemann.com

You may have heard that Investors Group has recently offered a 3 year variable rate at Prime – 1.01% (1.99% for now). Although this definitely could be a good deal for some, it is important to consider the fine print before getting wrapped up in the rate. Here are a few points to consider: ·          It is a collateral mortgage which makes switching from IG very challenging after the 3 year term is up. Typically you will need to refinance in order to get out of these mortgages which means you will need at least 20% equity in your home. If you cannot switch or refinance, you will be subject to IG’s mortgage rates at the time of renewal which are typically higher than the industry standard ·          It is a variable rate mortgage which means it (along with your mortgage payment) will fluctuate with prime rate. They do give you the option to “lock in” your rate which essentially means you can convert it t...