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financing: Mortgage pre-payment- How does it work? - 10/07/11 05:21 PM
TIP…..most mortgages have prepayment options and with a little planning a homeowner can use the prepayment to reduce their mortgage penalty when selling..
·         An early payout penalty can be very costly (it’s the greater of a 3 month interest penalty or the Interest Rate Differential IRD); but there is a way to help our clients save money on this penalty.
·         If porting or assumption aren’t options, the homeowner can save by ensuring they have a principal prepayment applied on closing day.
·         Policies vary by lender but in most cases, the payout date and regular mortgage payment date must match.
·         The lender … (0 comments)

financing: Summer Break! The real estate slowdown... - 06/30/11 02:58 PM
Despite the fact that many buyers take a small pause in their search during the summer months, this is a very good time to arrange for a mortgage preapproval or refresh an expired rate hold.
Rates continue to be very low and a 120 day hold arranged today won’t expire until the end of October. If you have any unique financing situations, either due to the type of property or borrower’s financial history; please let me know. I work with many different lenders and they will assist in finding you a solution! Recently….
· Business for self client purchasing an investment property … (1 comments)

financing: Canadian Mortgage rules are changing...again - 01/17/11 11:45 AM
The finance minister announced changes to mortgage lending guidelines.   The following changes were outlined:
·         Maximum amortization reduced to 30 years (from a current maximum of 35 years).  This is a significant change for many borrowers who may need the longer amortization to qualify for the mortgage. 
·         Maximum refinance allowed is 85% of property value (currently the maximum is 90%);
·         Home Equity Lines of Credit (HELoCs) will no longer be backed by mortgage insurance.
 
The effective date is March 18, 2011 for the amortization & refinance limits, and the HELoC change is effective April 18 2011.
 
It's … (1 comments)

financing: Beware of real estate euphemisms - wording on listing description that Lenders don't like - 01/13/11 09:20 AM
In today's stringent lending climate, as listing agents, we often don't think of how the description of what we write on the listing can affect the lender's decision in evaluating the property's attributes, while we try to make the property sound more appealing for buyers.
 
 

-sellers do not warrant retrofit status
-sold as-is
-diamond in the rough
-original
-fixer upper/ needs TLC/ handyman's special
-unique
-vacant
Through some of my selling experience in the past, I have discovered the description on listings have sometimes posed a hurdle on buyer's financing approval even if they already have a pre-approved, and affected the borrower's risk … (1 comments)

financing: Potential changes to Canadian mortgage lending - 02/12/10 04:25 PM
On March 4th, many in the industry expect the Finance Minister to announce changes to mortgage lending regulations.  Possible changes include:
·         increasing minimum down payment from 5% to 10%;
·         decreasing maximum amortization from 35 years to 30 years;
·         amending method to qualify variable rate mortgage clients.
These changes are significant for most first time buyers planning to enter the market.  In the past, policy changes have not been effective immediately; however, lenders will often change their guidelines before the government deadline.
 
I've attached a few recent articles regarding these possible changes:
 
http://www.theglobeandmail.com/report-on-business/big-six-banks-urge-ottawa-to-tighten-mortgage-rules/article1458585/
 
http://www.theglobeandmail.com/report-on-business/dont-tighten-mortgage-rules-ottawa-urged/article1461723/
 
http://www.theglobeandmail.com/report-on-business/ottawa-weighs-stricter-mortgage-rules/article1463856/
… (0 comments)

financing: Breakdown of Construction Draws for Construction Loans - 02/18/09 12:32 PM
CONSTRUCTION DRAW FINANCING
  
The following is meant to be a general guide to construction financing.  Policies, fees and interest rates will differ for each lender who offers construction financing.
 
Most lenders will require a complete package when submitting for a construction mortgage approval.
 
Eligible Purposes:
•·                     Purchase from residential home builder
•·                     Purchase from a contractor
•·                     Self-build home
•·                     Renovations or improvements of existing home where there are structural changes or costs exceed the lesser of:
            - 10% of current value or $25,000 (if conventional mortgage)
            - 10% of 'as improved value' or $10,000  (if … (0 comments)

financing: Construction Loan for Vacant Land Purchase to Build a Home - 02/07/09 06:46 PM
 
Here are 3 common contruction loan scenarios:  
1. Clients purchase land and build a house on the land, most of these clients own the land ( free & clear) and requested for a progress financing loan from the bank. The only challenge is that, progress financing can be expensive, as the bank requires the clients to get an appraisal done at every stage of the construction, ie : foundation, framing, etc.  Some clients prefer to take out a private mortgage loan for the whole construction, ie: 6 months to 12 months time and refinance the house to payout the private loan when … (0 comments)

financing: Ontario Green Mortgage product launch by Citizens Bank of Canada - 04/27/07 12:34 AM
A recent press conference announced the launch of  Citizens Bank of Canada's new Green Mortgage product, partnering with the Conservation Council of Ontario and Green$aver to create a mortgage that combines a competitive lending rate with environmental advantage. The Citizens Bank "Green Mortgage" allows Ontarians to secure a mortgage at competitive rates that goes futher than any other to satisfy their energy conservation needs. For details goto https://www.citizensbank.ca/Personal/GreenMortgage/
Anne Lok
www.urburbia.ca
www.annelok.com
… (1 comments)

 

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