Some of the Key Points in CMHC’s new first time home buyer incentive program Eligibility requirements To be eligible for the home buyers incentive at least one borrower must be a first time home buyer. This means you can not have owned or lived in a home owned by your spouse in the last 4 years. You have never owned a home before. You may also qualify as a first time home buyer if you have gone through a breakdown of marriage or common law partnership. In addition to being a first time home buyer they have some other eligibility requirements. Annual income must be $120000. The mortgage…

Your Mortgage is APPROVED!!! Now What? Advance Mortgage calls you to advise your mortgage has been approved and we need you to come in and sign the Commitment Letter, what is that? The commitment is the agreement the lender sends once they have a conditional approval for your mortgage, it spells out the terms and conditions of the approval including the agreed to rate, term and other items they require to complete. When we have you in, Advance Mortgage Brokers in Red Deer will discuss in detail what that commitment states so you understand before you sign what the terms of your mortgage will be. It is a…

Property Appraisals When are they required by the Lender and Why! Lenders typically require an appraisal for two reasons : 1. For a purchase you need a property appraisal when you are doing 20% or more down payment 2. Refinances – to determine the value of your property In the first case as there is no insurer approval required the lender must know what the market value of the property is to determine loan to value. A lender can not lend on more than 80% of the appraised value if the mortgage is not insurer approved. So your mortgage amount is determined by the value the appraiser comes…

Why get Title Insurance Buying a new home and wondering about Title Insurance? It can be used for several purposes that we will review in this article. It may be used to protect against: 1.For mortgage fraud – mortgage fraud refers to an intentional misstatement, misrepresentation, or omission of information relied upon by an underwriter or lender to fund, purchase, or insure a loan secured by real property. 2.For coverage for defects with title – refers to any potential threat to a current owner’s full right or claim to sell a property. 3.Gap Coverage Gap Coverage is a way that allows lawyers to close a deal quickly before they…

What to do when your mortgage is about to renew! What does it mean if you have an upcoming mortgage renewal? When you have an upcoming mortgage renewal this means that the contract you sign with your existing lender is ending. When you get a new mortgage you choose a term this can be any number of years from 1 to 10. Your term can be open or closed and your rate can be fixed or variable. Either way when your term nears its end it will be time to explore your options! What do you need to do? You have a few different options when your you…

What you need to know A common question we get when buyers are thinking of purchasing an acreage is do you need more than 5% down payment? The answer is no! The minimum down payment to purchase an acreage is the same as an urban home. You only need 5% to purchase an acreage. Acreages can however have their own special circumstances. These can make it different or a bit more complex than purchasing an urban dwelling. The lenders perspective When a lender is determining the value of an acreage property they will generally only take the value of the residence and the surrounding 10-15 acres. This can…

How do i know if I have enough Equity in my home to take out and payoff other debts? The general guidelines allow you to take out up to 80% of the appraised value of your home to payoff debts, invest or use as you choose. You first need to figure out what that number is, take off the amount owing on your home and the rest is usable equity. As an example you have a property worth $400,000 so 80% of that is $320,000.  You have a mortgage for $300,000 so that means you have $20,000 extra that you can use to payoff those other debts.  It…

CMHC First time Home buyer Incentive Program Update! If you are looking to buy your first home and are waiting until September for when this program is set to be implemented you may want to call us to discuss. As a first time home buyer you may be surprised at how this program really works. How does it work? The government plans to provide first time home buyers with  5% contribution to the purchase of an existing home. They will provide 5-10% contribution to a new home build. It is only available to a first time home buyer. The home buyers household income must be no more than…

Deposits on accepted offer to purchase. What is it applied to? The amount you give for deposits on your accepted offer to purchase are applied directly to the amount of down payment required Those funds sit at sellors real estate office until needed by lawyer at time of signing legal mortgage documents. So if your full down payment is $10,000 and you have given $2,000 as deposit on your offer you will still owe $8,000. Call Advance Mortgage for further explanation 403-347-0774

How does a Home Equity Line of Credit work and are they a product that works for your situation. If you have enough equity in your home you may be able to access a home equity line of credit. This type of product is secured against your property. It will show up on your title as a mortgage type charge.  They are reusable. You pay on what you owe and in most cases can pay only the interest amount each month or you can pay out the entire amount. They are on a floating variable rate. Many clients find the flexibility of the product to be very advantageous.…