Christine Buemann Mortgage Broker

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...

The Bank of Canada lowered their Qualifying Rate to 4.79% effective today. The Qualifying Rate is used for qualifying variable rate mortgages as well as terms with less than 5 years. Please refer to my previous blog posting on how a lower qualifying rate can benefit consumers.    I met with a manger from Genworth last week regarding their programs as well as the recent CMHC announcement and changes (see this post for information on changes). He has confirmed that although they understand the reasons behind CMHC’s changes, they will not be following suit. Canada Guaranty has also confirmed that they will not be implementing the same changes as CMHC to their “Low Doc Advantage” program for self-employed borrowers however they will be increasing their premiums for this particular program. As most people have heard, the maximum amortization for insured mortgages is now 25 years.   In order to avoid default insurance, you have to put at least 20% down. What many...

Last week, CMHC announced that it will be taking away 2 of their programs effective May 30, 2014. They are the Second Home program and the Self-Employed without traditional income verification programs. Here are the key components of the change: ·          You will now only be allowed to have one CMHC insured mortgage at a time ·          If you are self-employed, you will now need to provide the standard documentation   to support your declared income   Some scenarios of people it will affect the most are: ·          If you have a current CMHC insured mortgage and you wish to purchase another home and keep your current property as a rental ·          If parents wish to co-sign for a child however they already have a CMHC insured mortgage on their home ·         ...

The Bank of Canada’s Finance Minister Jim Flaherty was known for criticizing BMO’s 2.99% mortgage promotion. He even went as far as encouraging other banks not to follow suit. Now that he has stepped down, they have come out with their Spring special yet again. Although rates are always an important factor in a mortgage, it is important to look at all of the aspects and/or restrictions in a mortgage. This particular special has caught a lot of flack because of their restrictions but there are several other lenders and products on the market to be aware of as well. Here are a few of the restrictions on this particular BMO Special: ·          Pre-payment options are reduced to 10/10% ·          Amortization is capped at 25 years (most you can still go to 30 or 35 years with 20% down) ·          Full repayment before maturity can only occur if property is sold to...

The Bank of Canada decreased their Qualifying Rate to 4.99% which is great news for anyone looking for a term other than a 5-10 year fixed. You may wonder what the Qualifying Rate is or how it could affect your potential mortgage. As of April 19, 2010 all insured mortgages (less than 20% down) with a term of less than 5 years or a variable rate must be qualified at the current Qualifying Rate as opposed to the actual interest rate. Here is an example*: Purchase price       $300,000 Down payment     $  15,000 CMHC Premium   $ 7,837.50 Total Mortgage     $292,837.50 For this mortgage with a 5 year fixed rate term, you would need to earn just over $60,000 a year in income to qualify**. For this same mortgage at a variable rate or term less than 5 years, you would need to earn at least $70,000**. The Qualifying Rate was at 5.34% as a few weeks ago so this recent drop will definitely he...