• Variable versus Fixed What Should a Borrower Do?

    Jencor Mortgage    |   

    Categories: Jencor , Mortgage , Variable

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    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…

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  • Mortgage Qualifying Solutions

    Jencor Mortgage    |   

    Categories: Jencor , mortagge , qualifying

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    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…

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  • Four Legal Pot Plants, what are lenders Doing?

    Jencor Mortgage    |   

    Categories: Jencor , Marijuana

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    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…

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  • New to Canada

    Jencor Mortgage    |   

    Categories: A-Team , Jencor , Mortgage , New to Canada

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    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…

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  • Is A Variable Rate mortgage Wise in Today's Economy?

    Jencor Mortgage    |   

    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…

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  • OSFI Changes - New Regulations by "The Regulator"

    Jencor Mortgage    |   

    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…

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  • THE IMPACT OF MORTGAGE RULE CHANGES

    Jencor Mortgage    |   

    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…

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  • WHAT IS AN INTEREST RATE DIFFERENTIAL (IRD)? HOW DO YOU CALCULATE IT?

    Jencor Mortgage    |   

    Categories: Dominion Lending Centres , Jencor , Rates

      A mortgage in its simplest form is a contract. It has terms, conditions, rights and obligations for you and the lender. When you sign on the dotted line, you are agreeing to those terms for the length of time laid out in the contract. However, sometimes life throws us an unexpected event that brings around the need to make key decisions and changes. One of these changes, for whichever reason, might be needing/wanting to break your mortgage contract before the end of the term. Can you do that? What are the penalties? Let’s take a look! To answer the initial question…

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  • Wages Growth Accelerates as Canada Adds Jobs For the 10th Straight Month

    Jencor Mortgage    |   

    Categories: Dominion Lending Centres , Jencor , Jobs , Mortgage , Rates , Wage Growth

    While the headline net jobs gain was a disappointing 10,000--well below the average monthly increase in the past year--the underlying data in this morning's StatsCanada release were quite robust. The jobless rate remained unchanged at 6.2 per cent as the acceleration in wage gains suggests that the economy is close to full employment. Average hourly pay gains hit 2.2 per cent year-over-year, the fastest pace since April 2016, mostly reflecting a long-awaited acceleration in wages in the past few months. The Bank of Canada has cited sluggish wage growth as evidence of slack in the economy. In a reversal of…

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  • GETTING PRE-APPROVED FOR A MORTGAGE

    Jencor Mortgage    |   

    Categories: Approved , Dominion Lending Centres , Jencor , Mortgage , Pre-Approval

    You’ve been squirreling away your bonus cheques, savings and reducing the amount of times you visit Starbucks so you can finally get into your own home to build solid equity for your future. Now that you know what you want and what you can afford, it’s time to visit your local Dominion Lending Centres mortgage specialist to get yourself pre-approved for a mortgage. Note, we did not say go to your bank to get pre-approved! A mortgage broker works with banks (including yours), credit unions and other lending institutions to help find you the best rate on your mortgage. Since they work with…

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  • Rates are Rising!

    Jencor Mortgage    |   

    Categories: Jencor , Mortgage , Purchases , Rates , Refinance , Rising Rates

    Rates are Rising

    Preserve your Buying Power - Get Pre-Approved now

    Many banks and mortgage lenders have hiked their 5-year fixed rates.
    Jencor still has 2.99% 5-year fixed rates for insured or uninsured purchases,
    refinances and pre-approvals, 90-day rate holds, also a 12-month rate hold
    for new construction properties.

    You Can “Save Money”

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