Mortgage Intelligence

Oshawa's Mortgage News Desk!


Leave a comment

Downpayment Savings Strategies

Saving for a down payment requires descipline & determination, whether you’re working towards saving for a minimum downpayment like most first-time homebuyers or 20% down.

Here are a few strategies that will help you to get started with saving.

If you are at the stage of working out your downpayment strategies towards homeownership, it’s time for a meeting with the team at MiMortgage.ca. Contact us at 1 866 452-1100 or apply online now!

Advertisements


Leave a comment

Your Home & Mortgage

DB15036_concepts_80096009

Be prepared with your income verification

One of the most critical components of a successful mortgage approval is verifying your income. Being prepared up front will make the entire process easier and less stressful.  Here is a summary of the different types of income and what is acceptable as verification to lenders.

Full-time salary: Provide a recent paystub and letter on company letterhead of employment signed by an authorized officer confirming position, annual salary and length in position. If you are new to your position, the letter must state that you are no longer on probation. Lenders will follow up and confirm these details. Commissions and bonuses can be supported by averaging your last two notices of tax assessments.

Commission, contract, part-time, seasonal employment: Company letter and paystub are required. Income must be consistent and can be proven with a 2 year average of tax assessments or T4s. If the position  is contract, a copy of the contract and any renewals is required.

Self-employed: Two years of tax assessments, a business license/registration or articles of incorporation and the last 2 years T1 general tax returns or 2 years of accountant prepared financial statements if incorporated. Since the amount of income is purposely kept low, some expenses on the statement of business activities can be added back. If income is difficult to prove then be sure to have a strong credit history and downpayment.

Child support: A copy of the separation/divorce agreement and three to six months bank statements are typically required. This income should be less than 30 per cent of total income.

Disability: A letter confirming permanent status along with a paystub.

Maternity leave – Some lenders use full employment income if the employment letter confirms a return date within one year.

Pension/RRIF/Investment income: Most recent tax assessment, T4A’s for pension income. There must be sufficient funds in the investment to support the income being withdrawn.

Being fully prepared to verify your income will make a considerable difference to your stress level and mortgage success.  If you have any questions, ask! Contact us now to speak to an expert or to get pre-approved, apply now through our secure website.


Leave a comment

Tap Into Your RRSP

First Time Home Buyers

Use your RRSP as a downpayment.

If you have RRSP savings you have a down payment that you can access now and take up to 15 years to repay. You may also be able to save on CMHC Insurnace when buying your home, but using your RRSP funds to put down more than 5% of the purchase price.  You and a spouse can use up to $25,000 each as a down payment if neither of you has owned a home in the past.

First Time Buyer

Include renovations in your mortgage.

 

We are pleased to provide you with valuable information about using your RRSP so you can buy a home now!     Here is the information RRSP as a down payment

If you wish to take advantage of historically low mortgage rates, please apply now using our secure online mortgage application today!

Do you have a question about using your RRSP as a down payment? Use the handy form below to reach out to us and we’ll be happy to answer your inquiries. If this article is helpful, pleases share it with your Facebook friends!


Leave a comment

First-Time Home Buyers’ Tax Credit

Tax Credit relief

First-Time Home Buyers

A frequent question that we get asked from potential home buyers is “if there are tax credits for First-Time Home Buyers?” The federal government has introduced a tax credit initiative for first-time home buyers that will grant these buyers up to $750 in tax relief. More information pertaining to the first-time home buyers’ tax credit initiative can be found at Canada’s Economic Action Plan and Canada Revenue Agency.

Also did you know that a survey conducted by TD Bank has revealed that 44% of first-time buyers used mortgage brokers? This could be due to mortgage brokers taking on the role of a trusted adviser in guiding first-time buyers towards the most suitable mortgage option, in the recent past.

We hope the information on first-time buyer tax credit initiative has been helpful. When it comes to first-time home buying contact our team at (866) 452-1100 or via email for a free assessment.


Leave a comment

First Time Buyers… Don’t Be A Pawn!

Avoid becoming A Pawn to RBC’s Realtor Promotion

Don't be a pawn!

image courtesy of chesskid.com

Recently RBC announced that they will pay a Realtor $1000 to refer first time home buyers to them for a mortgage. RBC is Canada’s largest Bank and the largest provider of Mortgages in the country, but it seems they want a piece of the first time buyer business that Mortgage Brokers enjoy.

CMHC has shown that about 44% of first time buyers use Mortgage Brokers. No surprises here! First time buyers are generally computer and Internet savvy and they are comfortable getting their mortgage by using on-line applications. They often enjoy completing the transaction electronically just as a matter of not having to make an appointment.

Excerpt from Globe and Mail article:

The cash offer is part of Royal Bank’s referral awards program for real estate agents. The program allows agents to collect points for referrals that they can trade for things like plane tickets, merchandise, gift cards or charitable donations.

Royal Bank is not the only lender to have a referral program for agents; a number have created such programs. They are controversial, and provincial watchdogs have differing rules for them. The bank’s program is not active in Alberta and Quebec, and the bank requires all realtors who participate to sign an agreement that includes a paragraph saying they will disclose to the home buyers that they are receiving compensation “in the form required under applicable law.”

If you are a first time buyer how would you feel knowing that you are being guided to use a lender, not because it’s the best option for your mortgagee, but rather so your Realtor can receive a fee, or plane tickets, even gift cards?

Consider that as of the writing of this article on June 3rd 2014, RBC is offering 5 year fixed rate mortgages at 4.94% on their official website while we as mortgage agents are offering 2.97% for the same term. If you will consider a 4 year mortgage term we can also offer 2.77% as a rate special.

A Mortgage will probably be the largest debt that you ever have so be sure you get the right type of mortgage with the best rate and terms for your personal goals.

Contact us today if you’d like to talk about meeting your own needs. 866-452-1100 or Apply on line now! Avoid being a pawn at RBC!


Leave a comment

Land Transfer Tax Rebates

First Time Home Buyer Still Eligible for Land Transfer Tax Rebates!

Today we prepared a short video addressing the benefits of being a first time home buyer and receiving a Land Transfer Tax rebate when you make your first home purchase.

Enjoy the show!

Use the handy form below to send us a quick comment or question about Land Transfer tax Rebates.