Christine Buemann Mortgage Broker

This is the time of year where people typically take a look at their financial situation and make goals for the upcoming year. Whether it be to do renovations, pay off outstanding debt, invest or whatever else you choose, there are a few things to know about refinancing in Canada. You can only borrow up to a total of 80% of the value of your property. ·          It is important to note that most lenders will want to see a recent appraisal for the property. This is typically an upfront cost as the lender needs to know what the current value is before they can determine the maximum mortgage amount. BC Assessments are typically not used as they may not be a true reflection of the market value. The maximum amortization you can have is 25 years regardless of your current amortization. ·          If your current amortization was set at 30 years, your mortgage payments will be slightly lower. It is im...

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 ...