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Archive for the ‘Mortgages’ Category

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Self Employed? Stated Income (not verified)

Monday, April 26th, 2010

Are you self employed?  Concerned about how the new CMHC Mortgage Insurance Rules affect you?

If you have NOT been in business for 3 years (but in the same type of work for 2 years even if not self employed) AND

You do NOT claim / declare all of your income then you have access to the CMHC insured financing for purchase transactions up to 90% LTV or 85% for refinances

Purchases: with as little as 10% down (90%LTV)

Refinances: up to 85% of the value

Other requirements:

-Income taxes must be paid and up to date

-Must provide copy of business or GST licence, or Articles of Incorporation

-Min credit score 600 (to qualify for 90% purchase credit scor must be 650+)  for 90% purchase or 85% refinance generally you can not have any late payments for last 2 years

For more information please complete our confidential comment form below, or on our Contact Page or email

mortgages@dropmyrate.ca

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Self Employed? In Business 3 years and Income is Verified?

Monday, April 26th, 2010

Are you self employed?  Concerned about how the new CMHC Mortgage Insurance Rules affect you?

If you have been in business for 3 years AND

You claim / declare all of your income & your income is verifiable by a Third Party; i.e. Revenue Canada via Notice of Assessment & Tax Return, or Audited Financials Statements for your business then you have access to the same mortgage products as salaried borrowers.

Purchases: with as little as 5% down (95%LTV)

Refinances: up to 90% of the value

Other requirements:

-Income taxes must be paid and up to date

-Must provide Notice of Assessment, and financial statements prepared by practicing accountant

-Min credit score 600

For more information please complete our confidential comment form below, or on our Contact Page or email

mortgages@dropmyrate.ca

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New to Canada? Mortgages for Newcomers

Monday, April 26th, 2010

YES!!!

As a newcomer to Canada it is possible for you to purchase your own home with as little as 5% down.

CMHC offers the following program to new residents:

Features

Newcomers with permanent resident status have access to all CMHC
Mortgage Loan Insurance products (subject to product specific eligibility
requirements).
For permanent residents, where there is limited Canadian credit history
and where foreign credit bureaus are not available, CMHC continues to
consider alternative sources of payment history for Loan-to-Value ratios
between 80.01% and 95%
Newcomers with non-permanent resident status have access to CMHC
insured financing of up to 90% loan-to-value ratio for the purchase of a 1
unit owner-occupied residential property
No additional fees or premiums as a result of residency status – standard
product specific premiums apply
No minimum period of residency required

APPLY NOW TO FIND OUT IF YOU ARE ELIGIBLE FOR THIS PROGRAM!

If you have any questions you may contact one of our Mortgage Agents to discuss YOUR options, either complete the confidential comment form below, or use our Contact Page,

Toll free 1-866-712-3943

email mortgages@dropmyrate.ca

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Let us Pay for YOUR Home Inspection!

Friday, April 9th, 2010

If you are buying a home, no matter what the age, please do yourself a favour and get a Home Inspection completed by a certified Property Inspector. So many problems or potential problems with a home may not be visible to the naked eye, and can cost you thousands in repair bills down the road.  A Property Inspector should provide you with a comprehensive report that identifies any potential areas of concern with the :

Foundations / Wall Structures / Floor Structures

Roof

Electrical System

Plumbing System

Heating System

Windows

EXAMPLE OF A GOOD HOME INSPECTION REPORT

But Beware!

Beware of Home Inspectors who are not what they claim.  A recent episode of Marketplace focused on Grow Ops that the Home Inspectors should have easily identified to the unsuspecting buyers.

Safe Homes Canada

Is an example of a company that only uses Registered and fully Qualified Home Inspectors, and has saved homeowners thousands of dollars.

www.safehomescanada.com

WE WILL PAY FOR YOUR HOME INSPECTION

On all new mortgage applications received until June 30th 2010, we will reimburse you for the cost of your Home Inspection.

** Note the following conditions apply to this promotion: on purchases only, deal must successfully close, all mortgages are O.A.C., no commercial properties, single family homes only

Call us today for more information

1-866-712-3943

Or complete the confidential comment field below

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Buying a Rental Property

Friday, March 19th, 2010

Are you consider purchasing a Rental Residental property with 1-4 units?

I have been investing in Rental properties for the past 7 years. I would like to share with you at this time HOW I evaluate a residential rental property that I am considering buying.

I will use the following property as an example: 319 Broadway Ave, Orangeville Ontario as listed on 519Property

(See my calculations below). What I look for:

a) property should be cash flow positive

b) Return on Investment; I like to be higher than 10%, the calculations below do not include ROI for increase in property value; which would increase the ROI even more

c) there is room for a second mortgage so that I do not need to come up with the entire 20% down payment

Based on this evaluation; this is an excellent investment. Other things to consider when buying a rental property;

-who pays the utilities; tenant or landlord?

-what is the “Curb” appeal of the property (how it looks from the outside can have a great impact on quality of tenants)

-is it currently rented and if so what are the terms of the leases (one year, month to month)

CMHC is implementing new regulations in April that are tightening up lending on Rental Properties. They will not insure a mortgage more than 80% loan to value, and they are only going to use 50% of the rental income to qualify the debt ratios. There are other options available to Investors than going through CMHC insurance. I would be happy to talk to you on how you can still buy a property with less than 20% down. If there is a property that you are interested in I will prepare free of charge a complete analysis like the one below for you.

sarah@dropmyrate.ca

319 Broadway Supplimentary Mortgage Information
Monthly Annual
Rental Income $ 3,100 $ 37,200
Less Expenses:
Insurance $ 250 $ 3,000
Prop Tax $ 300 $ 3,600
Net Income $ 2,550 $ 30,600
Mortgage Info:
DownPayment 20% $ 83,800
Mortgage amount 80% $ 335,200
Interest Rate 4%
Monthly Pmts (35 yr am) $ 1,484
***OAC
Monthly Cash Flow $ 1,066
Annual Cash Flow $ 12,792
Annual ROI 15.26%

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Time to Renovate Your Home?

Monday, March 15th, 2010

Welcome to spring Homeowners. If you are like me, there is ALWAYS a renovation project for your home either in progress or on your “to do” list. A few years ago I wanted to finish my basement to add a playroom and a spare bedroom. Last year my Windows needed to be replaced. This year it is the roof. I doubt it will ever end.

When faced with the question of how to pay for all of these renovations, I was thankful that I had a good mortgage professional to work with me and help me get the Funds I needed by using the equity in my home.

Now that I am a Mortgage Agent, I hope I can return the favor to you my fellow homeowner and help you turn your renovation dreams into reality.

-New Gourmet Kitchen

-Finish your basement

-Add a swimming pool

-Energy efficient furnace

-New windows, new roof

What is on your list this year?

Sarah Hurson Mortgage Agent#09002165

sarah@dropmyrate.ca

For more information please complete the confidential contact form below, or on our Contact Page, or email me directly sarah@dropmyrate.ca

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How Mortgages work for a First Time Buyer

Tuesday, March 9th, 2010

Are you considering buying your first home? Or perhaps you are re-entering the housing market? If you are currently paying rent, there is a good chance you can afford a mortgage.

Buying a home does not need to be a stressful time, it should be exciting and fun. If you have excellent professionals on your side they will glide you through the process effortlessly. Find the right Real Estate Agent and Mortgage Agent and they will be able to help you through the rest.

How Much Down Payment Do I Need?

You only need to have a 5% down payment to purchase a home. You should also make sure that you have a little extra for closing costs; for example Land Transfer Tax, your Lawyers Fees, etc.

The 5% can be withdrawn from an RRSP. It can also be borrowed from another source, i.e. a credit card or line of credit. Your downpayment could also come from a Gift from a family member or friend.

What is a Pre-Approval?

A Pre-Approval is when your Mortgage Broker processes a Mortgage Application for you and gets you pre-qualified to purchase a home. This is beneficial in so many ways most importantly:

-tells you how much you can afford so you know what price range of home you should be shopping for

-gives you a competitive edge when placing an offer over another bidder who is not pre-approved

What is the First Time Home Buyers Tax Credit?

Visit the Government of Canada website for more information and speak to your Tax Accountant to see if you qualify

What type of Mortgage should I choose?

Speak to your Mortgage broker about the benefits of each type of mortgage. You probably will have a choice between a Fixed Rate Mortgage, and a Variable Rate Mortgage. With some lenders a Variable Rate mortgage can be converted at any time to a Fixed Rate, so you can have the benefit of both. Many first time homebuyers feel more comfortable with a Fixed Rate Mortgage, so they can easily budget their monthly payments.

How do I get started?

Complete our confidential contact form (below) or on the CONTACT page

We will email you a Mortgage Application Form. This gives us your basic financial information and will allow us to complete a free confidential assessment for you, to tell you IF you qualify for a mortgage and for HOW MUCH.

(*all information is O.A.C. and subject to income & debt qualification ratios)

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Self Employed? Changes to CHMC Mortgage Insurance

Monday, March 8th, 2010

Policy Changes to CMHC Self-Employed

CMHC is also announcing policy changes to the CMHC Self-Employed Product Without Traditional Third Party Validation of Income. Effective April 9, 2010, self-employed borrowers with more than 3 years in the same business and commissioned-income borrowers will be required to confirm their income and will not be eligible for the Self-Employed Product Without Traditional Third Party Validation of Income. This product is intended for a small portion of borrowers who find it very difficult to document income – in particular, recently self-employed borrowers. For the majority of self-employed borrowers, income validation is readily available through financial statements, contracts, T4s and other third party income validations. The changes will ensure that self-employed borrowers with third party income validation will benefit from a lower premium. Furthermore, the maximum loan-to-value ratio available under the CMHC Self-Employed Product Without Traditional Third Party Validation of Income will be reduced from 95% to 90% for purchase transactions and from 90% to 85% for refinance.

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Mortgages for Commercial Property

Friday, March 5th, 2010

Commercial lending can be a very challenging arena to enter. There are a limited number of Lenders that will consider Commercial deals. A deal is generally considered to be commercial if it is a Multi-residential building with more than 4 units, an office or retail building, industrial condo’s or buildings, and any other type of income generating property that is NOT residential.

Once a Property is considered Commercial, a few things change when looking into Financing the property. Generally you will require more money as a down payment. Anywhere from 15% to 50% depending on the type of property. The interest rate on the Mortgage will be higher than current posted Residential Rates. And you may require private lending as opposed to a traditional bank.

Your best approach to financing a commercial property is to work with a Mortgage Broker who has access to Multiple Lenders, and will have experience placing many different types of commercial properties. Mortgage Brokers usually have contacts in private lending also, that may give you some flexibility. For example if a Lender on an office building is only willing to loan up to 65% Loan to Value, your Mortgage broker may be able to find Private funds for a second mortgage up to 75% or even 85% so you need to invest less of your own funds.

If the building is being purchased by a corporation, generally the lender will require the Personal Gaurantee of the principals behind the Corporation.

To apply for a commercial mortgage the following information will be reviewed:

Typical Information Required to Obtain Detailed Loan Proposal
• Loan Amount Required and Purpose
• Rent Roll or Leases
• Project Operating Statements
• Ownership Details
• Pictures / Property Description
• Details of Registered Debt or Purchase and Sale Agreement

For more information about Commercial Lending please contact us by using our contact page or the comment form below, and one of our Licensed Mortgage Agents will be in touch with you within 24 hours.

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Feeling Overwhelmed by Debt?

Wednesday, March 3rd, 2010

Are you feeling overwhelmed by debt? Struggling each month to meet your minimum payments?

See the demonstration below…………many people really benefit from Refinancing to pay off some of their high interest debts, and rolling everything into one payment.

How much could you save???

Imagine what you could do with an extra $1000 + per month!

Refinance Demonstration:
Debt Amount Monthly Payment Interest Rate
current situation:
Mortgage $ 155,000 $ 946 5.50%
Car Loan $ 20,000 $ 396 7.00%
Credit Cards $ 20,000 $ 524 19.50%
Total $ 195,000 $ 1,866
proposed refinance:
New Mortgage $ 202,000 $ 930 4.29%
Car Loan paid off zero n/a
Credit Cards paid off zero n/a
total mnthly pmt $ 202,000 $ 930
MONTHLY SAVINGS $ 936
OVER THE TERM (5YR) $ 56,160
includes a $7,000 fee to break the old mortgage, apprisal, and legal fees may be additional
all figures and rates are hypothetical and subject to change. OAC.

FOR A FREE, NO OBLIGATION ASSESSMENT, USE THE confidential CONTACT FORM BELOW AND one of our Mortgage Agents will get in touch with you within 24 hours to see how much YOU may qualify to SAVE! or email mortgages@dropmyrate.ca

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