During most of the last 28 years, choosing a 5-year variable at any random date would lead to lower interest costs for the following five years. The thing to understand is the last 28 years we have been in the greatest bull bond market in the history of the world, that means the greatest interest rate decline over the longest period ever. The last 28 years were a great time to have a variable rate mortgage. The question now is, what will be the average variable interest rate for the next five years? The first thing for a borrower to…
-
Variable versus Fixed What Should a Borrower Do?
Categories: Jencor , Mortgage , Variable
-
Mortgage Qualifying Solutions
Categories: Jencor , mortagge ,
Many people are having trouble getting the mortgage they want these days. Working with a Licensed Mortgage Advisor offers you not only access to a variety of products, but also a variety of experience-based solutions. Here are a couple strategies we have used to get home buyers qualified, who have had difficulty elsewhere: CREATE THEIR DOWNPAYMENT Your clients take out an RRSP loan with a lender who has the right guidelines. The client utilizes a payment on the RRSP loan that fits into their long-term debt service ratios to qualify for a house. After 90 days the clients use the Home Buyers…
-
Four Legal Pot Plants, what are lenders Doing?
Categories: Jencor , Marijuana
As we all know, recreational marijuana is now legal in Canada. The law is set, but implementation and how policies and guidelines will impact our industry are yet to be determined. Generally, 30 grams for personal possession, basically an ounce baggie for those who might relate and up to 4 plants at home. For realtors, mortgage brokers and their clients we are facing many months of the lenders sorting out their guidelines. If a borrower or seller voluntarily discloses they have been growing four legal marijuana plants, which should produce more than 30 grams, as a point of interest, how will…
-
We are Experts at getting Self-employed Clients Approved
Categories: Jencor Mortgage , Mortgage , Self-Employed
Being self-employed in Canada is a dream come true for many Canadians. It gives you freedom and flexibility to forge your path in your personal and professional life. You are in control of when you work, where you work, and whom you work with or for. With that freedom comes a lot of specific responsibilities. Because you are both employer and employee, you are now accountable for the finances of your businesses (assets/liabilities and taxes) as well as your own. Buying a home for self-employed Canadians can be an intimidating process for some because it does require answering a few…
-
New to Canada
Categories: A-Team , Jencor , Mortgage , New to Canada
Welcome to Canada! Canada is made up of hundreds of thousands of people and some did not start in Canada but have made it their home. Buying a home, especially when you are new to Canada can be mind boggling, BUT, we have a mortgage for you! The New to Canada Program is designed to help new Canadians purchase their first home sooner and become established faster. What are the qualifications for this program? Firstly, you must have immigrated or relocated to Canada within the last 3 to 5 years to qualify for the New to Canada Program. You must have proof that…
-
Bruised Credit and Need a Mortgage?
Many people think that their credit score will hold them back from obtaining a mortgage. For some, they may have work to do on their debt beforehand, but sometimes people believe their credit is poor, only to find that it isn’t as bad as they thought. It pays to seek help from a Jencor Mortgage Advisor to find out where you stand. What is bruised credit and how does it impact your ability to obtain a mortgage? Mortgage lenders use your credit reports to evaluate risk by looking at your repayment history to see how responsible you are with credit.…
-
Divorce: Your Mortgage and Home
Categories: Divorce , Jencor Mortgage
Divorce is always a very difficult time, and the changes to the mortgage rules over the last few years have made it even more difficult. For the most part, one spouse will want to remain in the home and will need to buy the other out of the remaining equity. Currently, the most one can refinance is 80% of the value of the home. This leaves 20% of the equity unavailable for the buyout and is forcing the sale of the home. Because of this, both insurers (CMHC and Genworth) will consider a Marital Home Buyout up to 95% of the…
-
5 Things to Consider When Buying an Acreage or Country Property
Categories: Jencor Mortgage
HOW MANY ACRES ARE YOU PURCHASING? For conventional mortgages, lenders will finance a certain number of acres, a house & a garage. The number of acres that they will consider can vary based on the property location and the norm for that area. The minimum down payment can also vary based on the size and location of the land. For example, a property that is close to a major urban area and under 10 acres would most likely be approved with 20% down payment. If it is a larger acreage 30+ acres and not within an hour of a major urban area,…
-
Calculating Mortgage Payout Penalties
Categories: Jencor Mortgage , Payout Penalties
It is very common for people to believe that the rate is the most important consideration when selecting a mortgage product. In many cases, this is a reasonable assumption, many times customer are deciding between mortgage products that are very similar in rate. In this case, as in most, understanding the terms of the mortgage are more important then the interest rate. It is unfortunate that too many Canadians find themselves learning about one of the most important terms which has very negative effect on their financial situation when it’s too late, Payout Penalties. When calculating a mortgage payout penalty, banks…
-
Take Control of your Renewal process and Save!
Categories: Jencor Mortgage , Mortgage , Renewal
Nationally, Alberta has the highest percentage of homeowners with mortgage renewals coming up within the next two years. You may be coming up for renewal soon. You may be concerned rates are rising, even with a renewal a few years away. The consensus is rates are increasing in North America over the next year and may continue to do so in the foreseeable future. The new government has significantly changed the mortgage market with their implementation of new rules and underwriting guidelines. Due to these changes lenders are now restricted on what they can do and what they cannot offer to…
-
Is A Variable Rate mortgage Wise in Today's Economy?
Categories: Jencor , Mortgage , Variable
Ever since the variable rate mortgage was introduced, the question became do I choose the fixed or variable rate mortgage. With the recent rate increases borrowers will usually choose the security of a fixed rate mortgage. This does, however come with a premium as variable rate mortgages are generally 0.75% less than their fixed counterpart. On a $350,000.00 mortgage this translates to a payment difference of about $135.00 per month. You as the borrower can take the lower payment and use it for purposes such as: Debt reduction - Paying down higher interest rate debt such as credit card, lines of…
-
A More Hawkish Fed Was Expected
Categories: Dr Sherry Cooper , FED , Monetary Policy
The Federal Open Market Committee (FOMC) met this week for the first time under the chairmanship of Jerome Powell. In a unanimous decision, the Committee hiked the target range for the federal funds rate by 25 basis points to 1-1/2 to 1-3/4 percent. Unlike the Bank of Canada, which has a single objective of targeting inflation at roughly 2 percent, the Fed has a dual statutory mandate to both foster price stability and maximum employment. U.S. labour conditions remain strong, and the economy continues to grow at a moderate pace. Inflation is still below the Fed’s target despite the rapid decline…
-
Bank of Canada Concerned About Trade Risks
Categories: bank of canada , Dr Sherry Cooper , Economy , Risk , Trade
The Bank of Canada held rates steady today, as expected, highlighting “trade policy developments” as an “important and growing source of uncertainty for the global and Canadian outlooks.” As the seventh round of NAFTA negotiations commenced in Mexico City, President Trump dropped a bombshell late last week, threatening to impose a 25% tariff on imported steel and a 10% tariff on imported aluminum for national security reasons. The news reverberated around the world, causing U.S. trading partners in Europe to announce potential retaliatory actions quickly. The European Union raised the stakes for Trump by aiming levies on the GOP heartland, saying…
-
Bank of Canada Concerned About Trade Risks
Categories: bank of canada , Dominion Lending Centres , Dr Shrry Cooper , housing , mortgages , Rates , Refinance
The Bank of Canada held rates steady today, as expected, highlighting “trade policy developments” as an “important and growing source of uncertainty for the global and Canadian outlooks.” As the seventh round of NAFTA negotiations commenced in Mexico City, President Trump dropped a bombshell late last week, threatening to impose a 25% tariff on imported steel and a 10% tariff on imported aluminum for national security reasons. The news reverberated around the world, causing U.S. trading partners in Europe to announce potential retaliatory actions quickly. The European Union raised the stakes for Trump by aiming levies on the GOP heartland, saying…
-
Sometimes Bigger is Better - Jencor Knows!
Give us a call today and find out how you can maximize your borrowing potential! 1.877.245.3636
-
OSFI MORTGAGE CHANGES ARE COMING
Categories: Dominion Lending Centres , Mortgage , OSFI
As many of you may remember, this past October the Office of the Superintendent of Financial Institutions (OSFI) issued a revision to Guideline B-20 . The changes will go into effect on January 1, 2018 but lenders are expecting to roll this rules out to their consumers between December 7th – 15th, and will require conventional mortgage applicants to qualify at the Bank of Canada’s five-year benchmark rate or the customer’s mortgage interest rate +2%, whichever is greater. OSFI is implementing these changes for all federally regulated financial institutions. What this means is that certain clients looking to purchase a home or refinance their current mortgage could…
-
WHY THEY’RE NOT REALLY IN THE MORTGAGE BUSINESS
Categories: Dominion Lending Centres , Mortgage Broker
Often, when we talk to you about mortgages, Mortgage Professionals will provide you a set of choices involving banks, credit unions and single service mortgage providers called a “Monoline” and a recommendation. Many times, if it’s a good fit, we recommend a Monoline, as your first option. It’s important to recognize the differences between the two, Monoline and Bank, because they are very different businesses and how they approach mortgages can have a very significant impact on you. Monoline mortgage companies are in the business of providing nothing but competitive mortgages to you, your family and friends. It’s important to stress that they…
-
Calgary vehicle break-ins surge to nearly 1,000 per month
It's that time of year again where we all start to leave our vehicles running to warm them up, and unfortunately this leaves them open to be easy targets for thieves. But not only that, especially during this shopping season people are leaving valuables out in their cars rather than bringing them in with them. Please take a moment to read this article from the CBC on the Calgary Police about the recent trend in vehicle break-ins. And remember to stay safe! Don't leave your vehicle unlocked, or valuables out there. Calgary vehicle break-ins surge to nearly 1,000 per month: See how…
-
OSFI Changes - New Regulations by "The Regulator"
Categories: Jencor , OSFI , The Regulator
The Government of Canada has changed the bank guidelines for qualifying a conventional mortgage. As of Jan 01 / 18 borrowers with 20% or more down payment or 20% or more equity when refinancing will qualify based upon the published five-year benchmark rate, currently at 4.89% or their contract rate plus 2% whichever is greater. For most people, this will mean about a 25% smaller mortgage. Also, the government wants regulated lenders to have more scrutiny around loan to value ratios. Wonder what that means?? Mr. Rudin, the OSFI regulator championing these changes will someday be remembered as either, 1) That really smart regulator…
-
THE IMPACT OF MORTGAGE RULE CHANGES
Categories: Dominion Lending Centres , Jencor , Mortgage
The mortgage rule changes that were passed by the Ministry of Finance in October 2016 are still having their effect one year later. Higher qualification requirements and new bank capital requirements have split the industry into two segments – those who qualify for mortgage insurance and those who don’t. Mortgages that qualify for mortgage insurance are basically new purchases for borrows that have less than 20% down and can debt-service at the Bank of Canada Benchmark rate (currently 4.89%). Those who don’t are basically everyone else – people with more than 20% down payment but need to qualify at the lower…
