Canada Mortgage Team - Mortgage Stories

Bank of Canada Rate

Canada Mortgage Team — Tue, 21 Apr 2009 13:49:00 GMT

As of this morning (Tuesday April 21,2009) the Bank of Canada cut its rate by a 1/4 of a point.

This means most variable rates are going to drop t a 3.05%
Prime which is 2.25% now plus 0.8% = 3.05%

If you are looking, now is a great time to refinance.

Rates are low.
Look at consolidations, refinancing or even purchasing a home.

For first time home buyers there are incentives that help pay the legal costs.

For refinancing there are home renovation tax credits available for only 2009

Lenders are busy but the deals are getting done. Rates have never been lower.

Call Victor today for more information on how to get going.

Call at 1 866 718 8366

Email: vjanus@canadamortgageteam.com

We find the best mortgage for you.

Foreclosure problems in Canada

Canada Mortgage Team — Tue, 24 Mar 2009 13:20:00 GMT

Foreclosures in Canada could become a reality.

I'm not saying this to scare anybody but things do happen. Most houses today are mortgaged for a two income family, meaning if one family member loses their job if there is no "emergency fund" set aside then there could be financial problems arising.

Bills will begin to mount such as credit card payments, utility bills, car payments and a mortgage payment could slip. The mortgage payment is usually the last payment that is going to be missed. If you miss a credit card payment, you will pay interest on it at a high rate. If you miss a mortgage payment, the bank will call and ask what happened or what is wrong. You need to make some arrangements.

The biggest thing to do is to act ahead of time to make sure that your credit rating is not affected by missing payments so that you still have some room to negotiate.

In most mortgage agreements there are possibilities to skip a payment or to postpone a payment. Read your agreement or call your bank and ask what options are available in terms of this situation.

Refinancing your mortgage is one of the biggest things to do. If you are in a higher interest rate, then the timing could right to do so. There will be penalties to pay, this is basically money that the bank loses on interest because you are going to be breaking your contract with them. The penalties are usually added on top of the mortgage payout and if there is equity in the home it is not a problem. If you break a 5 year term with 2 years to go, the bank wants its 2 years of losses on the interest you will not be paying them so they want it up front.

Another consideration is to extend out your amortization when refinancing your mortgage. If you are currently in a 25 year amortization and change to a 35 year amortization, it will take longer to pay off your house but it may give you the breathing room to get by in a tough time. On a $100 000 mortgage (with a 5.5% interest rate) changing from 25 years to 35 years changes your monthly payment from $610 to $530, giving you $80 a month and $960 over the course of 1 year.

One of the best considerations is to consolidate debt and to re-structure it into one monthly payment. If you have credit cards they are most likely in interest rates that are in double-digits. If you have equity in your house, this will allow you to pay off all the different credit cards, auto loans and lines of credits and have them in one payment. We've reduced peoples monthly payments in some cases from 6 payments totaling $2300 to one payment of $1100. This frees up $1200 per month.

One final foreclosure solution is private financing or a private mortgage lender. In this case, the bank has followed through to the lawyers, you have been served and your property is going to be auctioned off on a certain date in a few weeks. We have a variety of private lenders that loan out money up to 85% loan to value, but the interest rate will be in double-digits. It may be the only solution left if you want to keep your house. If you have equity in your house this possibility allows you to get a mortgage for one year and in that year you have to get your affairs in order and correct the problems.

At CanadaMortgageTeam, we work with all situations that make sure you get the best rate and the best fit for your specific mortgage needs.

Call today, 1 866 718 8366

Mortgage rates drop again

Canada Mortgage Team — Tue, 24 Mar 2009 04:07:00 GMT

Mortgage rates for a 5 year term have fallen below 4%.
New 5 year mortgage rates are available at 3.99% for the term.

For the upcoming spring season as the housing market begins to pick up, the rates make it very affordable and very attractive for people to begin to look at houses. For first time home buyers there is also reason to be excited as in the 2009 Federal Budget it was announced that there would be a $750 tax credit to offset closing costs. These can be lawyer fees, appraisals or land transfer tax. Fees will vary from province to province but you can budget 1.5% - 2% for these costs.

For an example of the rate and what it can mean to you here is an example.

Mortgage amount of $150 000, amortized over 35 years in a 5 year term at 3.99% will cost you $660 per month for principal and interest. If you are paying rent perhaps now is a time to consider looking at becoming a homeowner.

If you are currently in a mortgage and are interested in doing a comparison as to whether or not makes sense to refinance your mortgage you should call us to find out what to do. If you are currently in a rate that is 5% or greater and your term is expiring within the next 2 years there will be thousands of dollars you can save. In most cases there is a penalty to pay but the savings over the remainder of the new term will help you save thousands.

Visit, www.CanadaMortgageTeam.com for more information or call Victor direct at 204 697 5880

Mortgage Rates Dropping

Canada Mortgage Team — Thu, 12 Mar 2009 19:57:00 GMT

Mortgage Rates are dropping and the time to act could be now.

If you are in a 5 year mortgage and are in half way through you should sit down with CanadaMortgageTeam.com and we can do that math with you to find out if it is advantageous to break your mortgage and renew your mortgage at a lower rate.

If you are looking for a new mortgage the rates could not be better and more attractive.

Our refinances are going up as people are looking at rates.
Mortgage Refinances can be done not only to get a great rate but to consolidate debt, buy a new vehicle or for home renovation projects.

Lenders are allowing us to pass on rates of 4.09% on a 5 year term if we can finish the deal within 30 days. If we get the paperwork that we need from the borrower passed on to us quickly, we submit it to the lender and if we can close within the specified time, 30 days, you benefit from a great rate.

If you are at a mortgage rate where the interest rate is above 5.00% it could make sense depending on the length of the term you are currently locked into and the length of term you have remaining.

Interest rates could climb over the course of the next two or three years but if you lock in at the new 4.09%, 5 year mortgage rate you are covered for another 60 months.

If you need help in calculating how much you can save on re-working your mortgage give Victor a call at 204 295 5651.

Save Thousands on your Mortgage starting today!!

Canada Mortgage Team — Thu, 12 Mar 2009 16:52:00 GMT

Want to save $1200 - $2400 on your mortgage per year?

Would you like to cut over $17 000 off your principal in 5 years?

With www.CanadaMortgageTeam.com, it is time to consider a new mortgage because of the low interest rates. Rates now on a 5 year mortgage are 4.29%

Beware that there are penalties to pay out on your current mortgage and you must be able to understand that it must be worth it to do so.

Banks use 2 ways to consider penalties and these are: 3 months interest penalty or IRD (Interest Rate differential)

Assume for these 2 cases you have a $200 000 mortgage and an interest rate of 5.99% that you got 3 years ago and you are in a 5 year term, amortized over 25 years.

Using the 3 months interest penalty you will basically pay your monthly mortgage payment X 3. If you are paying $1300 for your payment monthly, approximately $1000 is interest, so your penalty would be approximately $3000. Using today's rate of 4.29% your monthly payment would drop to $1100 a month, saving you $200 per month or about $2400 per year. Over the course of 5 years you save $12000, less the previous penalty of $3000, so a net savings of $9000 over 5 years

Now using the 2^nd method IRD (Interest Rate Differential) Basically this calculation the banks use to find out how much money they lose because of your higher interest versus the newer lower interest rate you would get. Think of it this way, the bank is going to lose 2 years of higher interest payments and want that money up front.

Here is how the math works.

Mortgage of $200 000, you got a 5 year mortgage and you have 2 years to go with a rate of 5.99% and it is amortized over 25 years.

New rate you could get is 4.29% over 5 years and again amortized over 25 years

Difference in rate: 5.99% less 4.29% = 1.70%

$200 000 X 1.70% = $3400 per year in interest.

Your penalty with 2 years to go is $6800

Your savings over 2 years because of the new interest rate versus the old interest rate is $6800

Now using the same low interest rate of 4.29% for the next 3 years, because you have signed a new 5 year term, you will save a further $3400 per year for next 3 years. So in the long run, you will save a further $10 200 over the remaining term.

Is there more savings yet that can be done?

You have lowered your interest rate and lowered your monthly payment. What if you did not lower your payment and kept it the same? If you are comfortable with your current payment then the extra money that would be going towards the mortgage would then reduce your principal.

Here is the math using a 5 year mortgage term and amortized over 25 years:

Option A) $200 000 mortgage with monthly payment of $1278 @ 5.99%

Option $200 000 mortgage with monthly payments of $1083 @ 4.29%

At the end of 5 years the principal is $179 648

If you were comfortable with your payments of $1278 and kept those the same but using the lower interest rate of 4.29% you reduced your principal to $162 013.

By taking advantage of the new lower interest rate and keeping your payment the same, you have reduced the principal on your mortgage by $17 635 and thus cut down the length of time it will take to pay down your mortgage.

As a Mortgage Professional with www.CanadaMortgageTeam.com we strive to get you the best rate, the best fit and the best options for your mortgage.

Each mortgage is different and needs to be looked at on an individual basis.

I do not charge to talk to people and go over what they need. I work to save you money and I get paid by the bank where you get your mortgage.

Rates are low, take advantage and see how I can help.

Victor Janus

Email me at: vjanus@CanadaMortgageTeam.com

Website: www.CanadaMortgageTeam.com

Phone number: 204 295 5651

Rates available from www.CanadaMortgageTeam.com

1 year @ 3.50%

2 year @ 3.90%

3 year @ 4.19%

4 year @ 4.24%

5 year @ 4.29%

6 year @ 5.40%

7 year @ 6.00%

10 year @ 5.25%

Variable is 3.3% (Prime plus 0.8%)

Bad credit happens

Canada Mortgage Team — Thu, 05 Feb 2009 19:12:00 GMT

Bad Credit can happen to good people.

It can happen by simply losing your job and then missing a payment because you are waiting for your employment insurance to kick in. Death in the family and you can forget things such as paying a bill on time. Gone for a long holiday and you forget to make a payment.

These examples show that it can happen and when it does you should act fast. If you are late on a credit card payment by only a couple or 3 days, you usually don't get hit on your credit score. If you miss and decide to double up on your next payment, that will hurt your credit score.

Keep your balances below 75% of the value of the Limit allowed. That means simply if you have a credit card with a $10 000 limit, try to keep it under $7500 and don't carry the balance. That doesn't always work but make sure you make the minimum payment.

If you are hunting for credit by applying for lots of credit cards in a short period of time, your credit score can be hurt. If you are seeking credit at a variety of places it may be viewed that you are looking for money because of a financial problem or something that has happened to your financial stability.

Banks and Credit unions are being very firm in their rules regarding your credit score and how you are judged. As a mortgage broker we have access to other lenders or lenders who will consider people with a score as low as a 540. We have other lenders who are private lenders and they don't care about the credit score but consider the value of the property, whether you can repay the loan and need time to fix your credit.

At Canada Mortgage Team we work to get you the best rate we can for your specific situation.

Call today at 1 866 718 8366, ask for Victor

Seeking Credit

Canada Mortgage Team — Mon, 26 Jan 2009 21:47:00 GMT

If you are seekiing a mortgage and get turned down at a bank, consider a mortgage broker.

I recently came across a client who had 16 inquiries in 9 weeks.
They went to 5 banks, 3 credit unions, 3 high risk lenders and then 5 mortgage brokers.

Not only does this bring your credit score down but it makes lenders nervous because you are going from place to place.

If you get turned down at the bank and they tell you its because you have bad credit, I will assume they are right.
Banks are not in the business of not loaning out money. If you have bad credit, you are a risk and they may think that the risk is not worth it. Plain and simple.

As a mortgage broker, we shop your application to a variety of lenders. A mortgage broker will pull only one credit score that within 30 days and we have access to many lenders that if one lender doesn't like it, we have the ability to try another one. You don't have to go from one bank, to the next and then onto the credit union to see what they say.

We deal with lenders that many people may not know the name of but they are lenders who will loan out their money.

If you call a mortgage broker, give them a chance to work your file. Don't have 2 or 3 mortgage brokers working your deal. If 2 brokers send the same deal to the same lender and they each tell some small detail different, the lender will flag the deal and stop working on it until they have all the details correct. As well, in that same situation they may wonder who is really telling the real story.

Call today to see how CanadaMortgageTeam can help

Credit score basics

Canada Mortgage Team — Mon, 26 Jan 2009 21:19:00 GMT

Know your credit score. How much of a difference will it make will be up to you.

Here are the basics broken down into 3 areas about your credit.

1) If your credit score is above 620, you will be eligible for great rates, as low as 4.49% currently on a 5 year.
So on a $100K mortgage over 25 years, your monthly payment will be, $553 a month.
With this score as well you can qualify for 95% financing, meaning you can buy a $100K house with about $5K as a downpayment

2) if your credit score is above 540 but below 620, you will only be able to get rates that are roughly around 7%.
So on a $100K mortgage over 25 years, your monthly payment will be, $700 a month
With this score, you can only get 80% financing, meaning you can buy a $100K house but you need $20K as a downpayment

3) If your credit score is below 539 you will probably only qualify for a rate of 11.75%
So on a $100K mortgage over 25 years, your monthly payment will be, $1014 a month.
With this score, you can get only 75% financing, meaning you can buy a $100K house but you will need $25K as a downpayment plus fees. Fees on a private mortgage vary anywhere from 2% to as much as 8%. This depends on location and lender. If you need private money, they dictate the costs.

So you decide, keep your credit up and get great rates or keep it low and get bad rates.

In order to maintain good credit you have to do the following:
1) Keep up with payments meaning at least make the minimum payment.
2) Do not go over your limits. If you have a $1000 limit, stay under that limit. If you go over, your score goes down
3) Keep low balances. Sometimes you will have to carry balances but try to keep those balances below 80%. Otherwise it brings down your score
4) Don't credit seek. If a bank turns you down, there is a reason. The more you look the more your credit goes down. As well, if a lender sees a lot of inquiries over 6 months they know that something is wrong and you may be getting desperate.

At Canada Mortgage Team we offer a variety of lending possiblities, we make sure we get you something that can help with your specific situation.

New Low Mortgage Rates

Canada Mortgage Team — Wed, 21 Jan 2009 21:37:00 GMT

Rates on mortgage are dropping significantly.
After last weeks announcement by the Bank of Canada dropping the target rate by half a percent, the major lenders have followed.

If you have an old mortgage based on prime that was done prior to September, you may be lucky enough to have a mortgage that is Prime minus 0.75%, meaning your interest rate today dropped to 2.25% on your mortgage.

Currently most of the products based on prime are at: Prime plus 0.8%, so in essence 3.8%.

If you are unsure and think the market will be lower yet then go with a mortgage based on Prime plus 0.8% and then have the option to lock in.

One year rates are great todayat 4% and if you want to have a locked in rate then 5 years at 4.49% is a great deal.

One of the most significant rates right now is a lender with a 3 year term for 3.75%

Rates are great but always be aware that great rates are for people with great credit. If you credit is blemished then you will not be eligible for those rates. Keep your payments steady and make the minimum.

At Canada Mortgage Team we work to get you the best mortgage that fits your needs.

2009 Canadian House Values

Canada Mortgage Team — Sun, 18 Jan 2009 16:32:00 GMT

The value of your home may not quit be what you expect it to be.

House values in Canada are at a point where the market is unsure of how to react.

In Manitoba, specifically Winnipeg, housing markets are relatively steady. There is a small but steady growth predicted for 2009. In other markest such as Calgary, Edmonton, Vancouver and Victoria the market has seen a decline in the value of houses.

Most insurers are giving a modest increase in value but if you feel that your house has increased in value or you think that your house is worth more, ask for the lender to get an appraisal. You may have to pay for the appraisal but it may benefit you. If an appraisal costs approximately $250 and your house value increases by $30K in equity then the cost of borrowing to use that money to consolidate a credit card at 18% or a vehicle loan at 8% is by far outweighed.

You can refinance and go for a one year term today as low as 3.99%. Compare that with a high interest credit card rate of 18% and the benefit is 14%. Saving you probably more than $250 over the course of the year.

If you bought a house 6 - 8 months ago and have gutted and redone the kitchen and 2 bathrooms. There is new value to the house that people are unaware. If you have re-wired the house because you are an electircian by yourself, then again you have increased the value of your house. If you have repainted, replaced doors and done new casings and baseboards, again you have increased the value of your house. If the lender is willing to listen then the discussion should be had with the insurer as to the true value of the property. Ask for an appraisal to be done by a qualified appraiser to reflect the value that you have added.

Let Canada Mortgage Team help you unlock the equity in your house.

Bad Credit Mortgage

Canada Mortgage Team — Mon, 05 Jan 2009 21:50:00 GMT

If you have bad credit you can still get a mortgage.

There are private lenders in Canada that will loan money to you but the qualifications and process is different.

Private lenders will look at your ability to pay your mortgage. If your income is hard to verify or if you just started a new job or were just turned down at the bank a private mortgage maybe the solution.
When dealing with a private lender the credit score is reviewed but if it is bad the concern is more about your ability to pay the debt. The private lender will want to know what the story was that caused the credit to go bad. It maybe a job loss, divorce, bankruptcy, death in the family or some other circumstance.

The value of the property is quite important. If there is value in the property then that will help out.

Private lenders generally loan out, 75% of the value of a property. So if a property is valued at $100 000, they will only loan $75 000.

There may be broker/lender fees, appraisal fees and legal fees as well that would have to be covered by the person wanting the mortgage.

Generally Private mortgages are a 1 year term and in that time frame you should be able to re-establish your credit with a secured credit card and then renew with a regular lender.

At Canada Mortgage Team we work with a variety of lenders and work to get you the best mortgage at the best rate.

New to Canada Scenario

Canada Mortgage Team — Mon, 05 Jan 2009 21:39:00 GMT

Recently we had clients who moved here from the UK.

He was a truck driver and she worked in retail sales.

They relocated and he began work immediately as a truck driver. She got a job in retail sales.

They sold their house and had 10% downpayment.
Their income was good and they were able to show a credit report from the UK to prove a good credit score. They even had a letter from their bank from the UK.

They had a cell phone that they got immediately when they arrived and made continuous monthly payments.

They as well had obtained a credit card when they arrived.

They rented for 8 months and after that period they qualified for a mortgage.

To show good credit we had the following:
1) a letter from the landlord showing on time payments
2) cell phone bill showing good monthly payments
3) Credit card showing good monthly payments
4) Downpayment from previous sale that was in the bank for 3 months.

They bought a house, had a great mortgage rate and are now happy to be home owners in Canada.

At Canada Mortgage Team we work with many scenarios in order to get you into the house you want and the mortgage you can afford.

Credit score

Canada Mortgage Team — Mon, 05 Jan 2009 19:44:00 GMT

If you are looking for a mortgage or to refinance you will be asked, what is your credit score or how good is your credit?

This is what will be a strong factor in determing if you will qualify for a mortgage and at what rate.

Banks are looking in detail at credit reports for each individual and are asking more questions. It is up to each individual to monitor and be informed of what your credit score is.

Here are some quick rules:
1) Find out what your credit score is by calling Equifax. This will show where you are at interms of what the banks are looking at.
There are times when there are discrepancies and you will want to fix up problems as fast as problems as they could be harming your credit.
2) Be sure to pay your bills on time.
3) Don't carry high amounts on your credit cards - plain and simple it brings down you credit score
4) Check your statements monthly - fraud is happening more and more, if it appears on your statement and you didn't charge it, call immediately to find out what happened
5) Don't apply for credit too often. The more you apply for the more hits on your credit bureau and that is considered to be shopping for credit and thus brings down your score.
6) Established credit - if you have a credit card you don't use that often, don't cancel it because it shows a good length of credit. Credit should be established for at least a year and should show at least $2500 to be considered for a mortgage.

Good credit is very important in applying for a mortgage.

At Canada Mortgage Team, we work to help you in order to get you the best rate and best service on all your mortgage needs.

Purchase of land

Canada Mortgage Team — Sun, 04 Jan 2009 18:48:00 GMT

If you are wanting to purchase raw land in todays market, most banks look at it as not the best mortgage to get invovled.

Requirements will be for a high credit score as well as a downpayment of as much as 50%.

Canada Mortgage Team works with other lenders who require only 25% down. This helps out tremendously.

It is important to have all the paperwork from the purchase regarding future sewer, water and road development.
Other clauses regarding how soon you must start to build, when you need to finish building, what the minimum size of house you can build on, what type of garage may be allowed, etc.

In order to perhaps best get a mortgage on land is to take equity out of an existing house.

For example, if you own your current house with only a $50K mortgage but the house is worth $200K, you can obtain a line of credit secured by the house for a lesser interest rate and less hassle. In the end you would have a greater mortgage on your current property but you would own your land free and clear.

Working with you couples getting married, we have had scenarios where the parent's house is free and clear, they take equity out of their house, pay for the land and their kids just pay the mortgage. The kids own the land but owe the parents because they paid for the land.

Remember that when building you will also need start up capital to get the project going. Most banks are open to this but as well like to see input from the people who want to build the house.

Keep your credit clean and you will have more options open to you.

At Canada Mortgage Team we work with all scenarios to help get you the house you want.

Co-signor problems

Canada Mortgage Team — Sun, 04 Jan 2009 18:40:00 GMT

How can co-signing for someone hurt your chances of getting a mortgage?

If you co-sign for someone for a car loan, mortgage or even a personal loan you may be helping someone out but you may be hurting your self.

When you co-sign, you are signing that you are responsible for that loan.
So if a friend or family member has you co-sign for a car loan and they miss payments it comes back to you to make those payments. If you have not budgeted for that and miss those payments, you will be bringing your own credit score down.

You may think that it will all work out, in most cases it does but when it doesn't it will impact on you negatively.

Another scenario is that co-signing comes into play. When you co-sign for someone that the payment is $300 a month, that amount of money is factored against you, so in reality there is $300 less of monthly income that you can use to help maybe qualify you for a mortgage.

If you are applying for a mortgage stress to the lender that you have co-signed and they make give an exception. In todays tight lending markets you need to explain everything in detail to the lender to make sure they know about your entire situation.

Co-signing is a very generous thing to do but be sure that you are careful who you do it for and what impacts it may have on you.

At Canada Mortgage Team we work with through different scenarios in order to make sure you qualify for a mortgage that works for you and fits your needs best.

Bank Turndown

Canada Mortgage Team — Tue, 16 Dec 2008 14:09:00 GMT

Daily now we are seeing people calling with problems of being turned down at the bank.

Their credit is very bad which is caused by a variety of reasons. Divorce, lost job, death of spouse or other problem.

At Canada Mortgage Team we will get you a new mortgage and then we need to repair your credit.

What is the point of Canada Mortgage Team finding you a mortgage and then not guiding you as to what to do to help out your financial credit situation?

Here is a scenario:
Client lost his job 3 months ago and has fallen behind, but has a new job.
Him and his wife together make $75K, if he doesn't fix the problem now, he sees problems coming down the road.
He is using money from one credit card to pay off another, at 28.8% this is not a good solution.
Bank has turned him down and his credit is now at 560 and wife is at 590.

He has a house and equity in the house. House is valued at $200K and the mortgage is only $90K.
By using a private lender, we can refinance him to $150K (75% of the value of the house) at a rate of 11%.
Sounds like a lot but if you go to other lenders on a street corner or in a strip mall, the rate will be about 18% or more.

Client signs a one year deal which includes all his credit card debt, collections and mortgage all in one payment.

$150K mortgage at 11% including taxes turns out to be $1600 a month.
Sounds like a lot but its only one payment.

Rebuilding credit begins by getting a secured credit card. This works by putting money down and having a credit card with a $1000 limit. It works like a regular credit card but the company want security because of a bad credit history. Use it to buy groceries, gas, utility bills and then pay it off monthly. Don't let it gather interest, you will fall into the same trap.

Keep this up for 10 months and we see that credit has been re-established and we can see a light at the end of the tunnel. Banks may now look at you or other lenders will consider refinancing your mortgage.

With Canada Mortgage Team we've helped you consolidate your debt, made the payments, re-established your credit and given you some breathing room in a tough time.

Call us to see how we can help your situation.

Great Mortgage Rates

Canada Mortgage Team — Thu, 04 Dec 2008 21:28:00 GMT

New Rate changes on mortgages are happening fast and furious.

As of December 4th, Lenders have dropped rates to as low as 5.25% on a 5 year rate.

Other great rates are as follows:

4 year special of 4.95%
3 year special of 5.15%
2 year special of 5.05%
1 year special of 4.35%

5 year closed VIRM (Variable Interest Rate Mortgage) of 4.6%
Prime plus 0.6%

With these changes coming from just a few lenders, watch for rates to drop more and the market to get better.

You need good credit and a good beacon score to have access to these rates so not everybody can qualify. Minimum beacon scores should be 620 or better in order to qualify.

These rate are available for a purchase or a refinance. For purchases, remember that you must have 5% as a downpayment as well as 1.5% for closing costs.

At Canada Mortgage Team we work to make sure that we can get you the best deal possible.

New Immigrant mortgages in Canada

Canada Mortgage Team — Wed, 03 Dec 2008 01:15:00 GMT

New Immigrant mortgages in Canada are increasing

With the influx of immigrants to Canada, individuals new to Canada are looking to buy homes and move into houses quicker.

Insurers guidelines such as CMHC (Canada Mortgage and Housing Corporation), Genworth and AIG requirements are simple:
5% downpayment on any mortgage is required, good credit and job stability.

Down payments must come from your own resources and cannot be borrowed. The money for the downpayment on a home should sit in a bank account for 90 days to satisfy some lender requirements. Exceptions may be made if the money has come from their previous country of origin.

Good credit, for someone looking to qualify for a mortgage, would be a minimum 620 beacon score. Other forms of credit would be considered such as rental payment (along with a letter) and a history to show good payments, utility type payments to show steady payments (or cell phone, internet, car insurance, life insurance) or a satisfactory international credit bureau.

Job stability would show that you have been employed for at least 3 months full time with no probation and that it can be confirmed by paystubs.

Requirements maybe changing and there are exceptions for people such as professional employees who are relocating such as doctors or other professional careers.

Canada Mortgage Team works with CMHC, Genworth and AIG insurers and uses their requirements in order to assist immigrants new to Canada in obtaining a mortgage.

Mortgage Guarantor in Canada

Canada Mortgage Team — Tue, 25 Nov 2008 03:46:00 GMT

Having trouble qualifying for a mortgage? A mortgage guarantor is someone who can help you qualify for a mortage by using their good credit rating or their extra income.

A mortgage guarantor will help if your credit is not in a good situation. If your credit score has gotten sloppy a guarantor will help by using their better credit score in order to help qualify for a better rate.

The second way a guarantor can help is by using their income. If your income is lower because of a change of job, or if you are having a tough time showing commissions, tips or money earned from a part time job a guarantor will help.

Both the guarantors income and debt will be added to the deal so in essence the guarantor must have income to help the deal and not too much debt in order to not hurt the deal.

If a guarantor is going to help in getting you a mortgage, that person will be appearing on the title of the property. If anything should go wrong with the mortgage then the guarantor is responsible.

A guarantor can be a friend, your mother or father, brother or sister, any other family member or anybody who you know that has a good credit score and can help you get your mortgage.

Call Canada Mortgage Team today at 1 866 718 8366 to see how we can help your with your mortgage process.

Mortgage Rate Changes

Canada Mortgage Team — Tue, 25 Nov 2008 03:16:00 GMT

Mortgage rates are dropping on fixed rates in Canada.

In October, Canadian banks lowered their prime rates but not to the same degree that the Bank of Canada did. The major Canadian Banks said that it was too much for them and they could not borrow through global markets to offer that rate to homeowners . Other rates such as five year mortgage rates are set based on bond yields which have been rising, so there will not be relief in the short term for people looking for a mortgage in Canada . Credit cards rates as well will not be dropping because of the overall credit risk.

In the last week, many lenders are offering significant rate cuts on 1 year mortgages at rates of 4.35%, 3 year rates of 5.15% and a 4 year rate for 5.34%. Most of these offers are running to the end of the year and are very attractive. The markets are uncertain right now though both sides of the border are working to stimulate the market.

Basically the idea is right now that mortgage rates are low and it is very attractive to look at a 3 or 4 year mortgage term. If you are willing to take a risk, a one year mortgage rate at 4.35% is a great deal.