A Mortgage Professional represents the client and ensures the mortgage secured best suits their needs.

A good mortgage broker is a savvy negotiator. Mortgage brokers are independent, trained professionals licensed to represent and provide the best advice for the clients’ mortgage needs. Mortgage brokers know where the best rates can be found, and we represent the client to negotiate the best terms, conditions and rates.

Mortgage brokers represent the customer, not the lender. Because we are not employees of a lending institution, brokers are not limited to one specific product. Instead, we seek out the best lender package to suit the client’s specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company or Private Funds.  There is a wide assortment of options and features available to homebuyers today and shopping around takes a lot of time and effort. Given the new government rules that were implemented on January 1, 2018, the mortgage process can be intimidating. It pays to work with a mortgage professional who will represent the client and negotiate on their behalf to ensure the mortgage is the best option for them. Choosing the wrong mortgage option can cost thousands of extra dollars. Mortgage brokers are trained professionals who can help save the client’s money.

Obtaining Mortgage Approval to its Fullest Potential.

With the recent waves of government mortgage rule changes, home buyers/homeowners are feeling disappointed that they have been declined or not approved by their lending institution for the financing they would like or feel they can reasonably afford. Today’s consumer does not fully understand that mortgages are no longer “cookie-cutter” and “fit in the box” for an easy, straightforward approval. It now takes a knowledgeable, well-experienced broker to manoeuvre a mortgage application. You must consider the following when applying for mortgage financing, and not all lenders have the same lending guidelines. For example:

• Qualifying Ratios: Each lender has different maximum values they consider when qualifying for the mortgage financing. The government has set “debt ratios” (called GDS & TDS) for the lenders to follow but not all lenders use the guidelines to their full potential. This means each individual lender chooses a particular amount that they will allow for the new mortgage and associated costs along with individual allowable maximums for debt, such as credit cards, loan payments, lines of credit, child support and Alimony payments, etc.
• Default Insurers: For purchases with less than 20% down payment, default (mortgage) insurance is subject to the approval of an application. In Canada, there are three mortgage insurers, and not all lenders use all three insurers
• Qualification Criteria: Knowing how a lender will qualify income sources or liabilities (self-employed, pensions, child/spousal support paid or received, vehicle payments, etc. commission, bonus, etc.) is crucial. The way these are calculated varies from lender to lender and can drastically impact the debt servicing ratios, and therefore your buying power.
• Supporting Documentation: Required paperwork for a mortgage approval can be tedious. A good mortgage broker will help streamline the paperwork required to obtain your maximum buying potential. Every lender has different documentation requirements, and it is essential to know which lenders want what paperwork, especially with the various programs for those who are self-employed.
• Legal Closing Criteria: Before the advancement of a mortgage, a lawyer will advise what pertinent documentation and funds are required to close. If there are any lender “requirements” (example: property taxes, condominium documents, file specific affidavits, etc.) that could potentially hinder a “timely” closing, an experienced mortgage broker will have insight into the requirements in advance and help “pave the way” for a smooth and “timely” closing.

A good, experienced, and knowledgeable mortgage broker considers all the above and much more when completing a mortgage application. We work for you to obtain the best mortgage options available, with as little stress as possible.

A trusted and licensed mortgage advisor works for you. We represent you and what is in your best interest and not what is in the best interest of the lending institution. We are not a lending institution employee and working with the lending institutions best interest in mind; Lending institutions cross-selling incentives (Lines of credit, credit cards, etc.) may cloud the mortgage financing process.
An experienced and trusted mortgage broker is well educated, well versed with all aspects of mortgage financing/home purchasing, creative, thinks “outside of the box” and is determined to put a mortgage together. We are licensed, regulated, and held to a high level of ethical conduct and character. Our reputation is paramount, honesty and integrity are our business, and we are consistently transparent.
A trusted mortgage advisor is your representative beyond the life of the mortgage. We are here for all aspects of your mortgage financing, even after your mortgage financing has completed.
Life can become hectic and complicated at times. We are always available to offer honest, unbiased, and important advice. We obtain answers for you when your lending institution is not responding to you, answer your questions, work out potential scenarios for you, help with negotiating your mortgage renewals, refinancing, relocating to another city or province and so much more!

To summarize, you can trust a well established, competent and knowledgeable mortgage broker for the following reasons:
1) Competence and knowledge. We have levels of competence and knowledge which inspire trust.
2) We have ethical conduct and character. Our reputation is paramount, and our honesty and integrity are impeccable.
3) We handle sensitive information with the utmost respect and confidentiality.
4) We are transparent and open.
5) We are a “person of our word” and hold our self- accountable for all actions.

Remember, it is always in your best interest to have a professional that is working for you and what is in your best interest!

Unbiased Advice

Mortgage Brokers are industry professionals that provide free, independent financial advice. It doesn’t cost you a cent to call us for professional advice or a second opinion. In most cases, purchasing a home is the largest investment you will make, and it is critical that you understand the details of the financial options available to you before you sign. Mortgage Brokers are licensed to specifically deal in mortgages, and we are regulated by provincial and national government bodies. Your mortgage is our speciality. We aren’t pressured to sell you a chequing account, or a car loan, and we won’t be transferred to a new department in 6 months. We do mortgage planning, and we do it at no cost at all to you. In most cases, as we are paid by the lender that we match you with.

Shawn Stillman said it well in a Home In Focus magazine interview:

“In no other industry can investors get financial advice for which they don’t have to pay. In the mortgage industry, the lender pays for it. It doesn’t cost the investors anything to get a second opinion. Brokers get paid by the lender, so it doesn’t cost the client anything to use a broker’s services. From start to finish, investors get impartial advice with multiple options and it’s free, so why would you not go ahead and do that? 

If you look at most of the mistakes that investors make, they occur because the investor didn’t have enough information. Especially when you’re investing, it’s critical to know everything before making the final call; that means looking at the little details that help point investors in the right direction.”  Home In Focus: Canadian Mortgage Environment, March 30th, 2017.

As always, contact me if you have any questions or concerns at all. If you are new to my service Welcome! If I have worked with you before, I promise to continue to provide you with outstanding service and attention to your financing needs.

-Deb

Many people are unsure about the advantages of working with a licensed Mortgage Broker/Advisor. Here are the top 10 advantages of working with a licensed mortgage advisor.

1. Unbiased Advice: Mortgage Brokers are industry professionals that provide free, independent financial advice. It doesn’t cost you a dime to call us for professional advice or a second opinion.
2. Trust: We work for you. We are paid on commission, only when you are satisfied with our product offering, and the deal is done.
3. Availability: We don’t keep “banker’s hours”. We are always only a phone call or an email away.
4. Expertise: We get your financing approved to its fullest potential.
5. Negotiation: A good mortgage broker is also a savvy negotiator. We represent you to negotiate best terms, conditions, and rates.
6. Options, Options, Options: Who doesn’t like options? A good broker has a variety of lenders and products to suit your needs.
7. A-B-C Mortgage Solutions: Not everyone has a perfect application for an “A” mortgage product. Many people, for a variety of reasons, will need the option of alternative or private lending.
8. Reading the Fine Print: We make sure you understand it.
9. Ongoing Service Commitment: You are our client for the life of the mortgage!
10. $$$$ Money$$$$!: Yes, we have extremely competitive rates! We can save you money!

Going forward, I will go more in-depth on each one of these points to showcase just how vital it is to work with an advisor that you can trust to work on your behalf.  Call me any time you have any questions about these points or anything you think I can help you with, and check back regularly for more updates.

Turn the house you like into the Home you will buy!

Government restrictions on refinance guidelines have reduced the equity homeowners can access for renovations. High ratio buyers especially, in a market with slow growth value, may wait years before the house has appreciated enough that an 80% Loan to Value refinance provides any money. If home buyers want to do upgrades the time of purchase may be the only opportunity where they can add the cost of the renovations to the mortgage.

Use the Purchase plus Improvements to:

• Add a new or updated kitchen
• Develop the basement for more living space
• Update or replace the carpeting or maybe adding hardwood
• Add a garage or workroom
• Add a media room or “man cave”
• Add an additional bathroom
• A new roof
• A more efficient central air or furnace system
• Add new siding, eaves or fascia
• Replace or updating doors and windows
• Add major landscaping

If the property isn’t exactly what you want: renovate, add, or upgrade it!

There are specific requirements for the purchase plus improvements program, please call to learn the details. Exceptions to the generally understood parameters are available.  Renovating up front may be a buyers best option.

What Mortgage Insurance Means for You

Mortgage insurance is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending on the insurer. There are three mortgage insurers-Canada Mortgage and Housing (CMHC-public), Genworth (GE-private) and Canada Guaranty (CG-private). A purchase with less than 20% down payment will always require mortgage insurance, and at times a lender will require a purchase of 20% or more down payment to be insured.

CMHC:

• 100% backed by the government
• Maximum $600 Billion in exposure across Canada

Genworth:

• 90% backed by the government
• Maximum $300 Billion in exposure across Canada

Canada Guaranty:

• Canadian owned by the Ontario Teachers’ Pension Plan along with National Mortgage Guaranty Holdings. Previously owned by AIG
• 90% backed by the government
• Maximum $300 Billion Exposure

Insurer Guidelines and Restrictions:

CMHC

• CMHC will only allow one insured mortgage per person; this means a client who may have had a mortgage for 15 years that was originally insured through CMHC may not be able to co-sign for their children through CMHC if that mortgage has not since been refinanced to remove the original CMHC insurance.
• CMHC does not insure mortgages for Rental Pool Buildings or where there is a high percentage of nonowner-occupied units
• CMHC will not insure age-restricted buildings
• CMHC will consider buildings with post-tension cables or condo conversions
• Will not insure purchases $1,000,000 or higher
• 25-year amortization only

Genworth & Canada Guaranty

• Both insurers will consider two insured mortgages, but the file must be very strong, and the properties must have good equity positions
• Both will consider insuring age-restricted buildings
• Neither insurer will consider insuring properties that have post tension cables
• They will not insure in complexes involving rental pools or where there is a high percentage of nonowner-occupied units
• Will not insure purchases $1,000,000 or higher
• 25-year amortization only

If at any time you have questions or concerns, please do not hesitate to email or call myself.

A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as the lenders’ prime interest rates changes. When this occurs, your payments will vary as well (as long as your payments are a blend of principal and interest).

A Fixed interest rate loans are loans in which the interest rate charged on loan will remain fixed for that loan’s entire term, no matter what market interest rates do. As a result, your payments being the same over the entire term.

When a loan is fixed for its entire term, it remains at the market interest rate. Generally speaking, if interest rates are relatively low, but are about to increase, it could potentially be better to lock in your loan for a term at that fixed rate. Depending on the terms of your agreement, your interest rate on the new loan will stay the same, even if interest rates climb to higher levels. On the other hand, if interest rates look like they are going down, then it would be better to have a variable rate loan. As interest rates fall, so will the interest rate on your loan.

We are seeing variable rates being lowered due to slowing mortgage growth. 

Fixed Interest Rate or Variable Rate Loan?

This discussion is about comfort level, and flexibility to adjust to the changes in the economic market. The borrower must consider the amortization period of a loan as well. The longer the amortization period of a loan, the greater the impact a change in interest rates will have on your payments.

Adjustable-rate mortgages (ARM) are beneficial for a borrower in a decreasing interest rate environment, but when interest rates rise, then mortgage payments will rise sharply.

A good way to mitigate this is to take a Variable rate mortgage but set your payments higher than the minimum payment required. For example, Prime; Right now, prime is at 3.45%, but you can get a 5-year ARM at prime -1.09% (2.36%). If you were to take the ARM but set your payments at prime, you would be making 1.09% more in payments to your mortgage principle on day one. If prime were to rise or fall your payments would stay at 3.45%; you would just be making more or less extra payments against your mortgage principle. The only way your payments would change is if you chose to change them, or the Prime rate goes above 3.45+1.09% (prime rate would have to go to 4.54% for your payments to go up.)