Why Do Lenders Require You Have A Credit Rating

As a Mortgage Broker for many, many years this is a question I get a lot.  In an environment that consistently reports we as Canadians are way too far in debt compared to the income we make this question has it’s justification for sure.  And the main reason is that lenders require we have debt to get debt, makes no sense right?  I do agree to a degree so let me try to explain. The general rule of thumb is lenders want to see you have a minimum of two creditor debts over a two year time frame.  Add to that they want your credit card to have…

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Mortgage Rule Changes

Mortgage rule changes and increasing interest rates—surprisingly—weren’t the top motivators for prospective homebuyers in 2017, according to a new survey from the Canada Mortgage and Housing Corporation (CMHC). Instead, the 2018 Prospective Home Buyers Survey found that improved accessibility (i.e., fewer physical obstacles and barriers) and investment opportunity were the main driving factors to purchase a home. The results were divided into three segments of buyers: first-time buyers, previous owners (who had previously owned a home but do not currently) and current owners. For first-time buyers and previous owners, the desire to stop renting was ranked as one of the top three motivators to buy a home by…

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Mortgage Update for 2018

Well, we have gotten through 2017 without any major issues and in fact in good shape overall.  Alberta has had a few tough years and has a bit to go yet before we all feel confident we have truly weathered the storm. The positive is the interest rates are still very low as well as house prices in many areas especially in Red Deer and surrounding areas.  Even though clients now have to qualify at the BenchMark rate as determined by the Bank of Canada, that qualifying rate is set at 2% above the contract rate  a client will receive from the lender who approves their mortgage.  The…

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A few reasons you should get in touch for your financing needs!

We want to share with our borrowers some of the things that set us apart in the mortgage broker world. During the home buying process you want to make sure you are dealing with the right professionals for your needs. Here are some of the things you get when dealing with us. 1) Years of experience: Brenda has over 25 years of experience in the industry and Jessica has worked in the finance industry for 10. We bring different past experiences to the table which helps us provide our clients with the best service for all situations. 2) We have 60 5 star reviews currently on Google. Currently…

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New Changes Coming Soon

This past week we received word that the government will be rolling out the next phase of “stress test”. These changes to the qualification requirements are designed to make sure all borrowers are well qualified for the mortgages they are getting. This will have impact of varying degrees to borrowers. As of today the current stress test only affects borrowers obtaining an insured mortgage. Generally that includes borrowers with less than 20% available for down payment. Presently these borrowers have to qualify at a payment based on the qualifying rate which is 4.89% at this time. As of January 1, 2018 the latest addition to the stress test…

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Glossary of Mortgage Terms

When getting a new Mortgage a lot of information is being passed to you. We have compiled a list of Mortgage terminology that may help you better understand what you are signing up for! Agreement of Purchase and Sale – A legal agreement that offers a certain price for a home. The offer may be firm (no conditions attached), or conditional (certain conditions must be fulfilled before the deal can be closed). Amortization Period – The time over which all regular payments would pay off the mortgage. Appraisal – The process of determining the value of property, usually for lending purposes. This value may or may not be the same as…

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Hospital Crafts for Kids: crafts for hospital patients

Seeing a doctor could be a scary experience for small children, but hospital inspired crafts will make routine appointments less scary for your kids with stethoscope reviews. Inexpensive and simple routines can help inspire your children by educating them by what they could expect in their next check-up. This craft really helps children to spot and realize the different characteristics of common medical tools and supplies. To help make the case, fold an item of black, brown or white building paper in half the quick way. Cutout handles that are proportionate to the paper bag and sometimes stick or tape them in position. Addition or recording the sides of…

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What is Mortgage Default Insurance?

For a lot of people the process of obtaining a mortgage can be a bit overwhelming. One of the most important things to us is that our clients complete this process feeling like they were always well informed and had a good understanding of what they were signing up for. One of the most common things we are seeing with mortgages today is what we refer to as Mortgage Default insurance. Mortgage Default Insurance is coverage that must be placed on any mortgage that has less than a 20% down payment. The premium is based on how much is being put down and calculated using the mortgage amount…

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Steps to Obtaining a Mortgage

Steps to Obtaining a Mortgage If you have been curious about the process in getting a new mortgage then this blog should answer some of the questions you may have! 1)Speak to a Mortgage Broker about obtaining a pre-approval. Remember a pre-approval only gives you a general idea of the price range you should be shopping in. It can also hold an interest rate for you while you search for your home. 2)Once your Mortgage Broker has given you your pre-approval you can now contact your realtor about starting the search for your home. 3)When you have found a house you want to purchase and an offer is…

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