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…

There are 9 million Millennials in Canada, representing more than 25 percent of the population. Born between 1980 and 1999, the eldest are in the early stages of their careers, forming households and buying their first homes. Buying a home is a daunting process for anyone, but especially so for the first-time home buyer. This is the largest and most important financial decision you will ever make and it should be done with the appropriate investment in time and energy. Making the effort to be financially literate will save you thousands of dollars and assure you make the right decisions…

What prevents many potential homeowners from buying a home is the lack of a down payment. Many first-time home buyers are receiving down payment gifts from family. Unfortunately, many are not in this position and need to plan to save their own down payment. When you can visualize the benefits of owning your own home and it becomes your number one desire, most of us can save that down payment. Every time you feel like spending money that is not a need and takes away from you down payment, consider what you could be giving up, your home. I recently did a mortgage for a…

For businesses large and small, a loan may be needed to overcome financial distress, purchase real estate, or acquire equipment to make their jobs easier. Business loans come in all sizes and for use in every aspect of business. Depending upon the size, age, and niche of your business, you can find available funding for every financial need that you can think of. The problem isn’t the availability of funding, it is the turn-down rate of traditional banks that makes obtaining these loans so difficult. Businesses which have been turned down for a loan by a traditional bank often meet…

A mortgage broker can help you avoid many of the pitfalls commonly encountered during the home buying process, it's still important to be informed even before you start looking for that perfect home.

1. Check your credit report before you apply for a mortgage - Equifax
2. Lowest rate is not always the best rate for you
3. Minimum of 5% of the purchase price, over a purchase price of $500.000 it is 5% on the 1st $500,000 and 10% on the balance of the purchase price
4. Set a budget for yourself: legals fees, home inspection fees, condo fees
5. Rate shopping, don't!  Let your broker pull one bureau and find the best mortgage for you

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After 7+ years of ultra low rates

This is something that has been a long time coming.  There is a huge overhang of central bank debt around the world that now must be unwound. It will not be without pain. The following are a few articles on the subject that we hope will hep shed some light on what is happening and on what you can expect.

How The Bank of Canada rate hike will affect borrowers

Bank of Canada raisers interest rate for first time in 7 years

Further interest rate rises may or may not be on the cards in 2017 with no expert consensus as yet. Following the increase on July 12, Bank of Canada governor Stephen Poloz said that further rates would depend on data. The latest retail figures, released by StatsCan last week along with rising inflation have some calling for another rate rise before 2017 ends. TD Securities' Fred Demers told Bloomberg that an interest rate hike in October 'is a very likely scenario," while Benjamin Reitzes of BMO Capital Markets added: "October is still a very reasonable call for the bank." CIBC economist Avery Shenfeld is…

Rebuilding efforts in Fort McMurray, Alta., are running ahead of expectations, with reconstruction underway on one-third of the homes destroyed in last year’s wildfire, according to Canada Mortgage and Housing Corp. In a report Thursday, the federal agency said the rebuilding of 844 housing units has started and that number is expected to rise to about 1,000 this year. It said 122 of the projects were started last year and 722 in the first half of this year. CHMC market analyst Tim Gensey said the agency underestimated how many construction workers would come to Fort McMurray when it suggested last December only…

The Office of the Superintendent of Financial Services (OFSI) announced earlier this month it will be increasing its supervisory efforts for residential mortgage underwriting - specifically focusing on Guideline B-20, which it also announced potential changes to.

Changes include:

uninsured mortgages requiring a qualifying stress test

LTV, loan to value measurements remain strong and adjust for local market conditions where they are used as a risk control, such as for qualifying borrowers

prohibiting co-lending arrangements that re designed or appear to be designed to circumvent regulatory requirements

Many brokers would argue that not enough time has been given to see how the impact of those changes from last summer have been.

Hard to say the impact of these changes if and when they come to pass, but keep an eye out....

What's your best rate is something we hear everyday and you would think it would be easy to reply, but nothing is ever easy!

To ensure that you get the best mortgage for YOU, we like to make sure we ask some questions:

1. What's the term?
   1. fixed / variable / 5 year ?
2. Is this your primary home or a second home or a rental?
3. Can you verify your income
   1. we understand that your bank already knows you and they can see your pay being deposited, but not all of the lenders that your broker has access to has that access.  So paperwork will be required
4. Where is the property located?
5. When is the closing date / possession date?
6. Can you live with prepayment restrictions?
   1. some of the lowest rate option do not allow prepayments at all which means no putting your bonus down towards your mortgage
7. Can you live with portability headaches?
   1. discounted rates will sometimes force you to ensure that the sale and purchase close on the same day!
8. Can you live with refinance restrictions?
9. Can you live with a large penalty?
10. What type of property is it?
11. Do you want good rates when you renew or refinance early?
12. Have you ever been bankrupt, consumer proposal, collections?
13. Do you have a property in mind or do you want a pre-approval?
14. What would be the loan to value, conventional or insured?
15. Can you pass the Governments stress test
    1. less than 20% down payment you MUST qualify @ benchmark rate 4.64%
16. Do you know your credit score?
17. Are you purchasing, refinancing or wanting to switch lenders?
18. What is the purchase price of the property?
19. Is your mortgage already insured?
    1. CMHC / Genworth / Canada Guaranty
20. How long of an amortization do you require?
    1. some lenders may charge a premium with an extended amortization over 25 years

This is a lot of questions but, once we go thru these we can find you exactly what you want and you will have all the information you need to make the decision that is right for you!

There are many great reason for you to consider, aside from the time saving factor and allowing a licensed professional to negotiate with potential lenders on your behalf, really is Expertise!

For most people buying a home is the single biggest purchase you will make in your lifetime. The choice when it comes to arranging financing can impact you for years to come. Not all mortgages are created equal!  A mortgage broker has the experience and know how to ensure you get the mortgage that is best suited for you.

Customer service is an important element of using a Mortgage Broker. Their job is to represent you through the full mortgage transaction and to always act in your best interest.  Your mortgage broker has a relationship with many different potential banks and lenders, this allows them to the shopping for you and the right options for your unique situation.  When you shop for a new car, you settle for the first one you see, you do some comparisons, test drive a few, see how the knowledgeable are the sales people.

A mortgage brokers work is not finished after the mortgage transaction has completed.  We want to stay in touch and time to time give you a call and see how everything is going and if you have any questions and provide you with strategies for paying off your mortgage quicker and planning for the future endeavors.

Jencor Mortgage Brokers are there for every step of the way, from start to furnish!  Our clients are are a part of something bigger...the Jencor Family!

Jeff Yuzwak - Jencor Mortgage

Last week CMHC announced their first quarter results, and the Globe and Mail reported:

"Steven Mennill, CMHC's senior vice president of insurance, said most of the drop in demand for portfolio insurance in the first quarter was the result of a premium hike CMHC introduced January 1 because of new capital requirements for mortgage insurers that were introduced by Canada's financial regulator.

Mr. Mennill said CMHC doesn't know yet whether the drop in portfolio insurance signals a permanent shift in its business model or whether demand for the insurance product will swing back again.

"It's not clear at this point whether either of these changes will be sustained over the long term," he said. "Portfolio insurance (demand) is largely a function of the overall sources of capital and liquidity and funding available to lenders in the system, which is affected by a wide range of factors. The cost of portfolio insurance is just one of them."

The declining insurance volumes led to an 8.1% drop in premiums and fees earned by CMHC on new mortgage insurance written in the first quarter.

We are just wondering, perhaps CMHC's premium volume drop, is because of not accepting application for single unit rentals, not accepting applications of refinances, not accepting applications for properties valued at over $1 million rather than a premium hike.

CMHC used to promote itself as "helping house Canadians". CMHC now is in the business of preventing Canadians from achieving home ownership. Have all the changes CMHC instituted been in the best interests of the home buyer and mortgage consumer?

It would be very nice to see a dialogues about the role of CMHC in Canadian Housing. The House of Commons Standing committee did received testimony on the subject. The role of CMHC in our economy and in the housing market needs to be openly discussed and understood. Top down dictates from such an important institution do not serve Canadian well.

We all need to make ourselves aware of the government and CMHC's unintended consequences from mortgage rule changes. IF the VP of Insurance at CMHC is quoted as thinking the premium hike is responsible for the drop in revenue and not the restricted product offerings, perhaps more awareness is needed.

Croft Axsen

Broker Owner / President

Jencor Mortgage Corporation

Canadians are living longer. Statistics Canada's latest 2016 Census data release, will have big implications for the country's housing market suggests some economists. Statistics Canada announced this week that the latest results mark the first time census data has down more seniors than children living in the country as those born during the post-war baby boom continue to reach retirement age. There were 5.9 million people in Canada aged 65 and over last year, compared to 5.8 million who were no older that 14, according to the 2016 Census. "The increase in the proportion of seniors from 2011 to 2016 was the largest observed…

You have worked hard, saved and are financially ready to buy a home and your next step is to find the professionals, Jencor Mortgage Agents are licensed mortgage professionals and can also refer you to a licensed real estate professional as well as lawyers.  Jencor's team of professionals will provide advise to ensure you are comfortable and you successfully negotiate the best mortgage financing.

Whether purchasing your first home, vacation property, renewing your mortgage or looking at some investment properties. Let us work with you and provide you with the service and expertise you deserve.

Bank employees can assist in mortgage financing but they do not require a license through The Real Estate Council of Alberta.

We have Mortgage Advisors licensed in Alberta, British Columbia and Ontario.

Refer to the RECA website:  www.reca.ca / Searching for an Industry Professional.  All mortgage brokers in Alberta must obtain a license thru RECA. For British Columbia FICOM, Finanical Institutions Commission http://www.fic.gov.bc.ca/index.aspx?p=mortgage_brokers/index. Financial Services Commission of Ontario http://www.fic.gov.bc.ca/index.aspx?p=mortgage_brokers/index

 

Did you know that U-Haul releases an annual report which details the previous year's highest growth markets? The cities are calculated by the net gain of arriving one-way U-Haul trucks over departing one-way U-Haul trucks for a calendar year. The data is compiled from more than...

You're thinking about buying a home, which means you'll most likely be in the market for a mortgage. As with any large financial transaction, there is a lot of paperwork involved. Below is a list of the standard documentation you'll need to provide.

You’ve bought new home and there are a million things swirling in your mind to prepare as the closing day countdown ticks away. The normal hassles of changing your mailing address, canceling utilities and setting them up at the new place.

Part I - Hiking Rates

For the third time in four years, the Canada Mortgage and Housing Corporation (CMHC) recently announced it will again increase mortgage insurance premiums, which would average an additional $5 per month ($60/year) for the typical insured mortgage.

In July 2016, BC's government unexpectedly mandated a 15% tax on any foreign national buying real estate in Metro Vancouver. This maneuver was to put a major speed bump on the steady flow of offshore money (mainly Chinese), streaming into the province, which bore the brunt of the blame for Vancouver's record high real estate last year.