mortgage: More mortgage rule changes for Canadians 2011 - 01/17/11 06:05 AM
Mortgage rule changes coming March 18th 2011.
Max amortization on government insurance (CMHC) backed mortgages (CMHC deals) = 30 yrs Max Loan To Value on refinance = 85% No government insurance backing (CMHC insurance) on secured credit lines 5% down remains the minimum downpayment (unchanged - this was rumoured to be going up to 6-7%) How does this affect your Buyers? Example below: 
Buyer earning $72,000 can qualify for a mortgage of approx $508,000 under the current rules and interest rates...under the NEW rules with a maximum 30 year amortization, that same person now qualifies for $470,000 which is a reduction … (1 comments)

mortgage: When Does a Mortgage Refinance Make Sense for Canadians? - 11/18/10 07:47 AM
The ideal candidate for a mortgage conversion would be someone who intends to continue occupying the property for at least the next 3 years (mortgages can be ported but it's tricky to get it right...and the interest per day charged can outweigh the logistics of doing this so therefore most people who move wind up with new mortgages).  When "Interest Rate Differentials" apply is when a client has a fixed rate mortgage at an interest rate higher than today's market rates, therefore a rate that is higher than what the bank can now sell the money for. These penalties typically render … (1 comments)

mortgage: R2, R3...Keep that Credit Rating Clean! - 04/21/10 09:27 AM
Turned down or not approved for the amount you need?
While most people know that they have a "credit rating," not all know their scores or how these scores are  calculated. If your mortgage application is refused or approved for less than expected, there's an opportunity for me to help people understand the causes and how to best improve the score. 
Credit scores range from 350 (low) to 850 (high), with 750 being the median. The numerical score is calculated on your previous payment history, your current indebtedness, your credit history length, number and frequency of new credit inquiries and, … (2 comments)

mortgage: Realtors, Help 51% of this Beautiful Province Before Tax Time! - 03/25/10 07:11 AM
One of the biggest problems I encounter far too often is with our high number of self-employed borrowers (BC has the highest number of self-employed people!). Help your self-employed borrowers ensure they know about these eligible deductions that can be added back to their income to help them qualify for a mortgage.   
Income tax time is coming...please spread the word to all your self-employed borrowers NOW! Also...Uncle Bob or Mom doesn't cut it as their "accountant"...please recommend they use a Professional. They can give the shoe box (my filling system!) to a Bookkeeper or other tax professional and then have it … (1 comments)

mortgage: No downpayment? No problem! - 02/17/10 06:39 AM
I don't mean to sound like an infomercial...but with the upcoming mortgage rule changes on April 19th...I feel this is important to get the word out before this program possibly gets pulled too.
If you have clients without the typical 5%  downpayment saved (they must still have a little something to cover closing costs ie. Lawyer and PPT if applicable) they can still buy a home and get a mortgage for 95%, the bank will put down the 5% for the Buyer!!  The rate they will pay is 4.94% (and not the typical 3.69ish offers available for those with 5% down) on a 5 year closed term.
When … (3 comments)

mortgage: Mortgage Rules are getting tighter for Canadians yet again... - 02/16/10 04:24 AM
Hello Vancouver, as of April 19th 2010 we are getting tougher rules imposed yet again in a bid to prevent the US style housing melt down that besieged the US for the past few years. I guess it's good but we are already very conservative in Canada and have not experienced what happened in the US. I will try to summarize below. 
Canada's Finance Minister tightened rules for Canada's mortgage industry to ensure homebuyers can afford their homes when interest rates rise.
Under the changes for CMHC insured (Government insured mortgages), which will take effect April 19, home buyers will ALL have to meet the standards … (0 comments)

mortgage: Low rates are here again Vancouver...but for how long? 3.64% benchmark 5 year rate - 02/05/10 08:11 AM
3.64% fixed for 5 years, I must say I didn't think we would see rates this low again since hitting new histori lows in the fall market. Rates had crept back up, bond markets we're inching up and were seemingly levelling off. The question I get most frequently is "what do I think is happening with rates?" or do I think rates will jump up in a few months.
According to Stats Canada today, our full-time employment jobs rose by 1,400 in January 2010, and our  part- time jobs experienced a huge growth by 41,500 new jobs,  However these were primarily in the service industry and mostly in the youth … (0 comments)

mortgage: It's RRSP time again...and this question comes up frequently at this time of year - 02/01/10 07:38 PM
Hello Vancouver, it's RRSP time in Vancouver and this question has comes up for me today...and then I conveniently got a good reminder summary today from First National bank so I thought I should pass it along for the Canadian First Time Home Buyers...
First time home buyers who are Canadian residents are allowed to withdraw up to $25,000 from their RRSP TAX FREE, through Canada's Home Buyers Plan (HBP) a Buyer and their spouse can each withdraw up to $25,000 (as of the 2009 federal budget) to build or buy a qualifying home.  
Withdrawing the money from your RRSPs through the HBP is … (2 comments)

mortgage: No money but I want to buy a house... - 01/27/10 09:22 AM
The Best Way to Make Money Off Someone Else's Money! Here's HOW!
100% financing or "Zero down" mortgages are still POSSIBLE in Vancouver! 
CMHC may have cancelled "zero" down but a few lenders have found a way around this. Some banks or lenders will "give" you the 5% to put down of the purchase price, which is now allowing you to get 95% financing. This program is called "flex down" or "free downpayment mortgage" and here is how it works:
1. You pay the 5 year posted rate (currently 5.49% today) instead of a discounted rate (3.75%).
2. The cash is given to you … (2 comments)

mortgage: Recent Changes to the Bankruptcy Act 2010- Vancouver, BC - 01/27/10 05:39 AM
Hello Vancouver!
Thought I'd share this with you all, as some Realtors may come across Buyers heading for, or have recently completed bankruptcy, information pertinent to Canadians. 
In the past few months, changes to the Bankruptcy and Insolvency Act came into force that Buyers may not have been aware of. These changes  had a significant impact on personal bankruptcies and consumer proposals in this country. The following are a few of the changes which I'm citing:
Definition of Income - The definition of "total income" has been amended to include amounts received by the bankrupt individual between the date of bankruptcy and the date of … (0 comments)

mortgage: Vancouver Buyers, are you still renting? 300,000 mortgage is less than 985.00 per month! - 01/25/10 08:43 AM
Vancouver, are you ready to make the move away from renting?
Many of us have heard the following: "The greatest fortunes were made in real estate."  Real estate should ideally be a longer term investment, however just 10 years ago the average home price in BC was approximately 208,000* compare that to today's average BC home price of approximately 465,000*. Where else can you get that type of return on any investment, and STILL sleep at night?
If you're renting or currenlty a home owner and thinking of buying an investment property, then waiting for prices to go down or … (3 comments)

mortgage: Tax Deductible Mortgages Canadians - Vancouver, BC - 01/13/10 05:02 PM
For years Americans have enjoyed the benefits of being able to deduct the interest paid on their residential mortgage and save on income tax. Some people may say that this benefit is partly why Americans have encountered so much housing trouble as this concept encourages you to keep a high mortgage balance...after all the interest on the mortgage is tax deductible, so why not? Luckily or not, in Canada, we are more conservative. While we don't have all the same benefits in Canada, there is a way to build your net worth and benefit from some legal tax deductions. Fraser Smith … (3 comments)

mortgage: Are you or your Buyers Self-Employed and having trouble? - 01/07/10 03:54 PM
Alot has changed in the mortgage world since 2009's financial crisis and lender tightening. More and more self-employed people have been phoning me, frustrated with their banks and because they're not cut and dry, feeling like they're getting the brush off by bankers too busy focusing on easier stuff like account openings or credit card promotions.
Yes, it has gotten tougher these days with CMHC and other insurers pretty much wanting a blood sample if anyone dares apply under their "self-employed simplified" program. No more stated income programs unless you're a new Doctor with less than 2 years financials....everyone such … (12 comments)

Ralna Burridge (The Mortgage Centre)

Ralna Burridge

Vancouver, BC

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