Christine Buemann Mortgage Broker

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...

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...

Please note that today the Canadian government announced it is boosting the annual contribution limit on Tax-Free Savings Accounts by $500. Beginning January 1st, 2013, the new ceiling has been raised to $5,500 per annum.   www.christinebuemann.com

Every year the Canadian Association of Accredited Mortgage Professionals conducts a survey to gain insight in Canada’s mortgage and housing market. Here are a few interesting statistics from this year’s report: 47% of new mortgages in 2012 were originated by a Mortgage Broker *This is an increase over last year and is largely due to first time buyers. This percentage has been steadily increasing as the previous perception of the role of a Mortgage Broker fades and the value of having a qualified professional work for you becomes evident. The average interest rate was 3.55% which is lower than last year’s average of 3.92% * As per this BoC report , borrowers who use Mortgage Brokers save an average of .19% on their interest rate. The arrears rate has fallen for 19 consecutive months and is approaching a record low of .25% *Although the record high levels of household debt has been a focus in the media, this shows us that Canadians have remained diligent at paying off their m...

One thing that I find many people are not aware of is that every time someone pulls your credit, it lowers your score a little . The amount of times it is pulled in a 12 month span affects approximately 10% of your overall score. The best way to find out your score and check on your credit report is to pull it yourself as that does not lower your score. There are 2 credit reporting agencies in Canada – Equifax and TransUnion. The more commonly used is Equifax, however it is best to check both as there can be a difference in information. Here are a few options with Equifax: Obtain your free credit report ·          http://www.cmhc-schl.gc.ca/en/co/buho/buho_013.cfm# ·          If you choose this option it will be mailed to you. Generally it takes up to 5 business days ·          Pay $11.95 to add your credit score Obtain an online copy of your credi...

As I have previously mentioned, the new OSFI (Office of the Superintendent of Financial Institutions Canada) changes took effect for most lenders on November 1 st . Here are a few examples of how the changes could affect you: ·          Qualifying rate is going to be used for all variable rate mortgages and terms less than 5 years (previously, some lenders would use a lower rate such as the 3 year fixed rate to qualify conventional mortgages) o    Let’s say you have an annual salary of $50,000 and you are going to get a variable rate, conventional* mortgage. If they could have previously qualified you at a 3 year rate, you would have qualified for approximately $297,000 . Now that they will be using the qualifying rate, you will only qualify for approximately $228,000 * ·          Heat component will be set according to property size (previously most lenders would use $75-$100 a month for he...

As I have mentioned several times in my previous postings, every lender has a different set of terms for their mortgages but they also each have unique qualifying criteria. Here are several guidelines that may vary by lender: ·          Some will use 3% of the balance for all revolving credit (i.e. lines of credit, credit cards) while others will use the minimum payment that is reported on your credit report to debt service ·          Some will only allow you to add 50% of the rental income from existing rentals back to your annual income. This means that all other liabilities (mortgage, property tax, heat ext.) will be included in your debt ratio. Others will use a rental offset which allows you to deduct the liabilities from your monthly income and add the balance to the application ·          Some lenders will only lend on the value of the house plus ...