Christine Buemann Mortgage Broker

As fixed r ates start to inch upward, TD and RBC have both increased their 5 year posted rates 15bps, to 5.14%. The Bank of Canada's Qualifying Rate is a weighted average of the 5 year posted rates so if the remaining big banks implement a similar increase, we can anticipate an increase to the Qualifying Rate in the near future.  www.christinebuemann.ca

This is a friendly reminder that the new mortgage rules will come into effect next week. Many lenders have already stopped taking in applications under the old rules.  We still have 2 lenders who will honour pre-approvals for 120 days (most won't) so if you are looking to purchase with 20% or more down, or refinance in the New Year, you should be getting your application and full documents in ASAP! I have a quick and easy   ONLINE APPLICATION if anyone is interested as well. Please feel free to contact me with any questions or concerns. www.christinebuemann.ca 

Congrats on your accepted offer! Here is a typical financing timeline so you know what to expect: Offer Accepted Your Realtor will send over the full MLS, Contract of Purchase and Sale with PDS and all addendums, once signed. If it is a strata, there will be additional documents. If there is no Realtor involved, I suggest having a Lawyer or Notary draw up the contract when possible.   Once we have received all of these documents, we will update the application with the property details and discuss the best lender, rate and product options.   Approval We will submit to the lender for approval. This typically takes 24-48 hours . The lender must also get approval from the default insurer (if applicable) at this point. Some lenders require income and property documents up front. Supporting Documents Once we ...

Are you ready to write an offer on a new property? Here are a few tips that will help make your financing of that property a little smoother: Be Prepared Many lenders now require all documents up front. If you do not have all of the required documents on hand, make sure to gather them ASAP. This is the most common cause for delay. They will likely be calling your employer to verify your employment details. Ensure this person will be available and can confirm the details. Timing is everything Try to leave yourself enough time for subject removal as well as closing. It is much easier to move up the dates, than it is to extend them. Some lenders offer “Quick Close” rates for deals closing within 30-60 days. Most rates are held for up to 120 days. If an appraisal is required, this can add an extra day or two to the financing condition. If you are able to put your closing and su...

Check out my short video on the new mortgage rules coming in January!

The Bank of Canada has increased their Qualifying Rate to 4.99%. If you are purchasing a home soon, or planning to refinance make sure to check with your Mortgage Broker to see how this change will impact you. www.christinebuemann.ca

What is the Qualifying Rate? The Bank of Canada's Qualifying Rate (also called the Benchmark Rate) is a weighted average of the Big 6 bank's 5 year posted rate. This rate is used to essentially "stress test" in mortgage qualification to ensure borrowers can afford higher payments should their actual interest rate increase. If you are getting an insured mortgage in Canada, meaning putting less than 20% down, you will have to qualify based on this rate. It is important to note that this is not the actual interest rate that you will be paying. This rate is also used to qualify terms shorter than 5 years as well as variable rate mortgages, for those putting more than 20% down. After January 2018, borrowers with more than 20% will be qualified using the greater of this rate, or their actual rate +2%. www.christinebuemann.ca