Christine Buemann Mortgage Broker

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 ...

On June 27 th , CMHC published their newly defined Debt Ratio Standards. These are the guidelines for calculating debt ratios and confirming income documents. These changes are set to be implemented by December 31 st of this year. Many lenders have already adopted some of these changes however, Mortgage Brokers currently have access to numerous lenders who are still being flexible with their calculations. Please read the CMHC release for the full details   here . Here are the topics of discussion: Income ·          Variable Income: No change. The average of the last 2 years unless it’s declining, then the lowest. ·          Self-employed Income (without traditional documentation to support income verification): No more “stated income” where the take the client’s word on their income. Must have documentation to support it. Most lenders have already adopted these policies. ·   ...

There have been many changes in the mortgage world in the past 3 years, more specifically in the past 6-12 months. There are many changes to lender policies that have unfortunately moved qualified buyers to a position where they cannot qualify for a mortgage or perhaps have fewer options. There was a well written article in Canadian Mortgage Trends last week ( please take a moment to read it here ) and here are a few changes they have highlighted: ·     Some lenders now factor in a monthly payment for secured credit lines with  zero balance.    *this is by far creating the most issues ·     On revolving unsecured credit, monthly payments are being set at 3% of the outstanding balance . ·     Many lenders now calculate heating costs using a specific formula based on property size . ·     Conventional variable-rate mortgages and fixed terms less than 5 years are now qualified using the B...

There are 2 different ratios that lenders use in order to determine your maximum mortgage amount. (GDS) Gross Debt Serving Ratio : This pertains to the costs associated with owning the home. That includes your mortgage payment, property taxes and heat. Traditionally $100 flat rate has always been used for the heat amount, however since the mortgage changes last year that amount will vary by lender. No more than 35% of your gross income can be used towards the combined total of those expenses. If you have a credit score above 680, that is increased to 39%   (TDS) Total Debt Servicing Ratio: That includes all of the expenses listed for the GDS as well as any other monthly obligations. That could be credit cards payments, loans, child support ext. Keep in mind that for most revolving credit (credit cards, lines of credit ext.), they will use at least 3% of the balance as your monthly payment. No more than 42% of your gross income can be used towards all of your debts c...

It is that time of year again… property tax time! Property taxes are due July 1 st , 2013 and that covers from January to December 2013. 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: http://princegeorge.ca/Pages/Contact.aspx   (if you do not live in Prince George, BC please contact your municipality for this information) 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 ...

I have decided to go back to the basics this week to explain what Mortgage Brokers do. As a Mortgage Broker, I act as the “middle man” between my clients and my lenders. I have access to some major banks as well as many that deal exclusively in mortgages. Those lenders can typically offer lower rates because they do not have the overhead costs of day to day banking. We also deal with all of the lenders in high volumes which allows us to get very discounted rates. When you come to a Mortgage Broker, you do not have to worry about the hassle of negotiating. We will always find you the best rate possible and we deal with the bank for you. There are also many factors to a mortgage, other than the interest rate, that can cost you a substantial amount in the future. We work with our clients to determine their long term goals and ensure that the product and lender they are using is the right fit. Traditionally Mortgage Brokers were the last resort for people who did not qualify with the...