mortgage: 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)
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mortgage: May 2011 Canadian Interest Rates Update - 05/09/11 02:24 PM
Mortgage rates have been fairly stable - the pattern is one we are familiar with....a rate increase of .25% and then gradually the pricing starts to settle back around 4% on a 5 yr fixed rate. More buyers are considering a shorter term of 3 or 4 years to take advantage of lower rates. A snapshot of today's best rates follows but just like gas prices these rates can change at any time.
In the past 2 weeks both the Globe and Mail and the Toronto Star have provided their readers with sections devoted to mortgages. The message is consistent: … (0 comments)
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mortgage: Canadian 30 year amortizations - 02/17/11 10:21 AM
As we expected, it appears government pressure on the banks will result in all mortgage amortizations being capped at 30 years [not just high ratio mortgages]. This restriction that will affect certain buyers may mean they want to purchase and have offer accepted before the Mar 18 purchase/approval deadline. Although not all the banks have announced the 30 year amortization, it appears the government has pushed all banks on the decision and everyone will be on board Mar 18. "BMO, Laurentian Bank, Scotiabank and TD" have all confirmed that, effective March 18, they will restrict both high- and low-ratio mortgages to 30-year … (0 comments)
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mortgage: Mortgage rates are increasing... - 02/08/11 09:48 AM
Several major banks have increased rates on their fixed rate mortgages; however, a few lenders have not posted increases.....if buyers currently do not have rate holds or holds expiring soon, this is the time to set up a 120 day hold. I can connect you to an experienced mortgage representative.
Windows closing on ultra low mortgages: http://www.financialpost.com/news/Window+closing+ultra+mortgage+rates/4239243/story.html#ixzz1DMwQzyWP
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mortgage: Canadian important mortgage changes and dates for new guidelines - 02/03/11 03:36 PM
A few weeks ago, theCanadian federal government announced changes in mortgage lending guidelines. These changes are mandatory for CMHC insured mortgages; however, individual banks and mortgage lenders have not announced their policies regarding conventional mortgages. We are waiting to hear whether a 35 year amortization is available on conventional mortgages & whether lenders are changing their Home Equity Line of Credit (HELoC) parameters. Also, although we often refer to insured mortgages as a CMHC mortgage, there are 2 other mortgage insurers available to lenders - neither Genworth Financial nor Canada Guaranty have issued statements regarding policy changes.
Important dates for new … (0 comments)
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mortgage: What is the responsibility of the mortgagor? - 02/01/11 08:26 PM
When money is borrowed to purchase real estate, the lender requires the mortgagor to sign a note. The mortgagor must fulfill one or more obligations as owner and borrower. The obligations can include paying principal and interest of the mortgage, paying municpal realty taxes, maintain adequate insurance to protect the property, and maintaining the property in good order and other duties. As long as the obligations are fulfilled and payments are on time, the mortgagor owns the property free and clear.
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mortgage: 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)
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mortgage: 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)
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mortgage: Risk of waiving the financing condition in Offers - 10/28/10 12:22 PM
When Buyers choose to include a financing condition in the offer, this gives them time to obtain suitable mortgage financing, as well as not proceeding with the purchase if they are unable to do so. Most buyers will require some form of borrowing. In the case of first time buyers, they may get family to help out a portion of the purchase with a monetary gift, or try to qualify for the first time home buyers plan. However, in a hot roaring market where bidding wars are frequent, it's common practice inToronto to see Buyers waiving the financing condition before they have … (0 comments)
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mortgage: 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)
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mortgage: Canadian Feds changing measures to cool housing market... - 12/21/09 10:49 AM
Last Oct 15-2008, the Canadian government eliminated the 40 year amortization and the 100 % finance program . The self employed programs were severely tightened. The has been buzz that a further tightening is about to come. Today this article came out ( see below ) No one knows if the changes will come however if they do like last changes they come with little notice thus any potential purchasers with small ie 5% downpayments or tight payments should revisit and move up there time frames.ie be buying now Toronto - The Canadian Press Published on Monday, Dec. 21, 2009 6:28AM … (0 comments)
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mortgage: Mortgage Pre-approvals...might be discontinued? - 06/25/09 09:51 AM
Pre-approvals and rate holds have been a standard offering with most lenders. I recently received a newsletter from a mortgage broker I work closely with in Toronto [Rosanna Younan from Premiere Mortgage Centre], informing me that two big lenders, TD and FirstLine have decided to stop pre-approvals within the broker channel. The big question is whether the majority of lenders will follow the lead.
Canadianmortgagetrends.com highlights some lender concerns regarding pre-approvals:
pre-approvals frequently don't close (less than 1/3 of pre-approvals close)
pre-approvals are expensive to process and the return for lenders is debateable. The lender is tying up human resources to process … (0 comments)
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mortgage: 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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