Christine Buemann Mortgage Broker

Compounding interest is when interest is charged on top of itself . For example, most mortgages are compounded semi-annually. That means that every 6 months, interest is calculated at the current balance AND accrued interest to that point. Interest only mortgages are typically compounded monthly however some lenders have started compounding their standard (often variable rate) mortgages this way as well.  The more frequently interest is compounded, the more interest you will pay in the long run.   It is important to know the fine details of your mortgage so be sure to consult a Mortgage Broker for impartial advice! www.christinebuemann.ca 

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

As you may have already heard, Equifax US was recently hacked. Although they don't anticipate that many Canadians will be affected, it is still a good idea to check. Equifax has set up a site where you can check to see if your information could have been accessed, and if so they will enroll you in a free identity theft program. Check out the details here www.christinebuemann.ca  

I am so excited to share with you, Kyla Snyder, the newest member of my team. Kyla has extensive experience in Customer Service as well as 3+ years at RE/MAX and also conveyance experience from Wilson King Law Office. As the Client Care Manager, Kyla's role is to ensure that every client is taken care of from the time they contact us, until after the mortgage funds and beyond.  If you have any questions or comments, please feel free to contact Kyla or myself.

* PLEASE NOTE: Lenders will want proof that you have at least 1.5% of the purchase price for closing costs . This is not how much they will actually be, but rather a generic estimate. Every home will have different costs associated with purchasing it. Please contact me directly for estimates on the items below. Deposit -Paid to you Realtor usually upon acceptance or subject removal $ Down Payment -Paid on closing date with lawyer. Minimum 5%. $ Default Insurance $ Property Tax Adjustment –Calculated by your lawyer/notary at completion $ Property Tax Hold-back – If the lender is paying the property taxes on your behalf, they may require a lump sum at closing to start the property tax account   $ Utility Transfer fees – BC Gas, Hydro, Telephone, Cable $ Property Transfer Tax -Refer to your lawyer for details...

Your down payment can be gifted from a family member. The down payment may be borrowed as long as you can service the debt. You may include home renovations in your mortgage purchase or refinance. If the home you are purchasing has a legal suite, you may be able to add 50% (or potentially 100%) of the rental income to your total income for qualification Many mortgages are portable to another home should you choose to move. Some mortgages are assumable by a subsequent purchaser. Investment, pension, disability, child support, and rental income are all acceptable sources of income for mortgage qualification. Some lenders will also accept child tax credit, spousal support payments and foster child income. Most mortgages can be paid monthly, semi-monthly, (accelerated) bi-weekly or (accelerated) weekly. Some lenders offer cash back incentives, however they can no longer be used towards the downpayment. ...

“Debt servicing” is your ability to meet all payments without exceeding the income received by you. There are two ratios that are examined by financial institutions to determine whether you can debt service a mortgage. The first one is called the “gross debt service” ratio and the second is called the “total debt service” ratio. With the gross debt service ratio, a lender looks at your annual income in comparison to your proposed annual mortgage payments (including heat and property taxes). This ratio cannot exceed 35%. For those who have exceptional credit, the allowable GDS ratios can increase to as high as 39%. Once you meet these criteria, the lender then examines your total debt service ratio. This ratio involves comparing your annual income to the total amount of debts you have (the proposed mortgage payment, credit cards, loans, personal lines of credit, support payments and all other financing obligations). Generally, this ratio cannot exceed 42%. For those who have ex...

Beacon scores are the score given to you by the credit collection companies, Equifax and Trans Union , and are built by grouping data into predictive characteristics in five categories. These scores are used by financial institutions and credit companies in order to determine your credit worthiness. While each credit scoring model evaluates credit file information differently, the following factors are commonly considered: Payment history (approximately 35% of your score is based on this category) Payment information on accounts such as credit cards, credit lines; retail department store accounts; installment loans, auto and student loans; finance company accounts, home equity and mortgage loans Public record and collection items such as bankruptcies, foreclosures, wage attachments, liens, judgments, and delinquencies reported to collection agencies Details on late or missed payments, public record items, and collection items (particularly how late the payments were, how much w...

What is a “High Ratio” Mortgage? ·          A mortgage with a down payment of less than 20% What is a “Conventional” Mortgage? ·          A mortgage with a down payment of at least 20% What is a “Fixed Term” Mortgage? ·          The Mortgage interest rate and payment are set for a specific term anywhere from 1 year to 10 years.   This mortgage can only be paid prior to the end of the term by paying a penalty. What is an “Open Mortgage”? ·          The Mortgage interest rate and payment are sent for a specific term normally from 6 months to 2 years.   These mortgages can be paid out at any time without penalty. What is a “Variable Rate” Mortgage? ·          The Mortgage rate fluctuates with the prime rate either at the prime rate or at a specified rate abov...

  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

As a Mortgage Broker, I am always looking for ways to help my clients further to arranging their financing. I have access to several great products that I will highlight below: Grouplend: My favourite product for loans. They have almost instant approval and they typically fund the loan within 24 hours. They do a "soft pull" so you can apply online to get a quote and it doesn't affect your score! Check it out here: http://grw.tech/bcloans Home Trust Secured Visa: When re-establishing credit, it can be challenging to find a bank who will give even a secured credit card. They've told us that the only applicants who will not qualify are those who are currently in a bankruptcy. I've seen many clients get approved for this card, even when their banks say no! Contact me for an application. DLC Visa: We have a credit card to suit every need: student, no-fee, low-rate, travel, rewards, etc with a very simple approval process. Contact me for an application. CFF unsec...

If you are writing an offer on a home this holiday season, there are a few things to keep in mind... First and foremost - give yourself a lot of time. Unnecessary rushes put a so much pressure on a file that it can almost collapse it. Lawyers usually need 10 business days to prepare your documents so be sure that they have the complete file with plenty of time. Mortgage Brokers are usually available with extended hours however the banks they deal with will be closed. Remember that they are usually still receiving files during that time so they also have to deal with a backlog when they re-open. Insurance companies, Appraisers  and Inspectors are typically closed for a few days during the holidays as well.  If you need a pre-authorized debit form or certified cheque from your bank, you will want to do that as soon as possible as well.  If your down payment is coming from a refinance (or the equity in your current home), this will take a while as well. Refinance...

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

There has been a lot of speculation recently about the change in Government and how it will affect the mortgage industry. It is well known that they are debating tightening up rules for mortgage lending yet again, but they have not yet confirmed what the changes will be.  Perhaps the most discussed option is the higher minimum down payment. The proposed change would be a gradual system with the new minimum down payment increasing to 7% for a purchase purchase of $500k and then to 10% for home purchases of $700k and higher. They are very clearly targeting the larger centres (Vancouver and Toronto) where many have felt the prices have been overinflated for quite some time. They have already changed the minim down payment to 20% for homes valued over $1M.  So how does this affect you? The main concern is First Time Buyers. In my area of Northern BC, the average home is around $275k so I don't feel like it will directly affect too many First Time Buyers. If the larger housi...

Did you know that you can use "borrowed" money for a down payment. That means a line of credit, a re-payable gift, ext. The insurers each have a program that allows this as an acceptable form of down payment, the biggest thing is that the re-payment terms have to be included in your debts. It is slightly harder to qualify for but it's a great option if you don't quite have enough saved up and want to get into the housing market. For more information on this or for any mortgage related questions, please feel free to contact me today. www.christinebuemann.com

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 ...

Hello! As you may recall, we upgraded our company name last year from Verico LendingMax Mortgage to Verico Premium Mortgage. My e-mail address changed however my website and phone number stayed the same. Our e-mail provider is longer forwarding e-mails from the old address so please take a moment to update my e-mail address to the following: christine@premiummortgage.ca I have also attached a contact file if you use Outlook or a similar program. If you have sent an e-mail to cbuemann@lendingmax.ca recently and I have not responded, I apologize.

  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...