Happy Halloween!
Monthly Archives: October 2016
Real Mortgage Story for October
Joanne was looking to purchase a rural property in Kwartha Lakes and arranging financing for a quick close, and was subsequently declined by her bank. She was then referred to the team at MiMortgage.ca by her realtor. At the time, Joanne was going through a sepration and purchasing a property to move in to. The downpayment for her purchase was through the sale of property she with sharing her partner.
Joanne was on disability due to an accident outside of work. Her credit was a beacon score of 576. She was over the limit on the one active credit card and was falling behind on her monthly bill payments due to the loss of income due to her disability and her on-going separation.
The terms of her mortgage were:
- Down payment of 65%
- Interest rate of 2.44% fixed for five years
- Monthly payments of $470
The team at MiMortgage.ca were able to secure financing through a monoline lender due to low loan to value on the property.
Whatever your financial circumstances maybe, it’s worth having a conversation with an expert at MiMortgage.ca to find out your options. Contact us to speak to an expert today!
Your source for lowest-cost funds
Canadians are looking to their mortgage for low-cost funds. According to a 2015 survey by Mortgage Professionals Canada, for those who were qualified to do so (homeowners with at least 20% equity), and did take equity out of their home, the average amount withdrawn was $70,000, up from $51,000 in the previous survey. The tops reasons for refinancing include:
- Paying down debt (35%)
- Renovations (23%)
- Investments (19%)
- Purchases or education (14%)
Your mortgage can be your best route to low-interest debt. Whatever your need might be, the experts at MiMortgage.ca can crunch the numbers to see if your mortgage is your most cost-effective option.
New mortgage regulations from today
New mortgage regulations announced in the first week of October 2016, will come in to effect from today.
We have been experiencing unprecendented low interest rates for a few years and as precaution the government has introduced a “stress test.” What does this mean:
- Current interest rates are in the range of 2.34 – 3.99%. All applicants applying for mortgage financing from today will need to qualify at a higher rate, which is also referred to as the benchmark rate of 4.64%.
- Qualifying at the benchmark rate will safeguard borrowers from financial struggles and deferred mortgage payments, in the event of a future rate increase.
- This also means that the amount of house a borrower can afford will decrease.
Please contact the team at MiMortgage.ca, if you have any questions or require any clarification.
Your Home’s Fall Checklist
It’s that time of the year once again and time to start thinking about preparing your home for the colder weather; a few little things can make a big difference for your home and save you time and money later.
Get your mind in the gutters so they are checked and cleaned, and don’t forget the downspouts.
Plug any gaps and cracks around windows and doors with weather-stripping and caulking. If there is a door between your house and garage make sure it closes completely.
Clean your patio furniture before you store it away, you’ll be happy you did in the spring.
Drain and store garden hoses.
Replace your furnace filters if you haven’t done so in the last 3 months.
A furnace physical is important; have a professional inspect your heating system.
Keep the fires burning by checking the chimneys for obstructions such as nests. Consider having the wood-burning fireplace and stove flues and chimneys professionally inspected and swept.
Think safety and test smoke and carbon monoxide monitors, and rid your home of any fire hazards.
See you next year. Cover outside of air-conditioning unit and shut off power. Winterize your landscaping.
And reduce stress! Fall season is also a great time to review your finances and to even start thinking about budgeting for your holiday spending. If you have a lot of high interest debt, current rock bottom rates make this a great time to get in touch with the team at MiMortgage.ca, to see if you qualify to have that debt moved into a low-rate mortgage. That one simple step can boost your cash flow and save thousands in interest. And making fewer debt payments each month is a certain stress reliever!
Have a great fall season!
Happy Thanksgiving!
Is this the last nail in the coffin?
There has been a lot of chatter in the last few days, on regulations on qualifiying, that will be introduced on October 17, 2016. How does this affect our borrowers:
For example: a couple qualifying with combined family of income $75,000 and no debt.
At present – at a 5 year fixed rate of 2.5%, amortized over 25 years with a downpayment of 5% will qualify for a mortgage of $347,000.
After October 17 – at the benchmark rate of 4.64% will only qualify these borrowers for a mortgage of $280,000.
- First time homebuyers will find it extremely difficult to qualify to purchase.
- Rentals, investment properties & homes with value over $1 Million will become harder to qualify.
- Ammortization over 25 years will be difficult to obtain.
More information on regulatory changes can be found on canadianmortgagetrends.com.
More updates will follow as it all unfolds. Please contact the team at MiMortgage.ca, if you have any questions or require clarification.
Mortgage Intelligence 