24 Jan

A NEW YEAR AND A NEW OPPORTUNITY FOR YOU

General

Posted by: David Lloyd

A NEW YEAR AND A NEW OPPORTUNITY FOR YOU

If you have been reading the news lately, you will know that the new stricter mortgage rules have resulted in more people than ever postponing purchasing homes. Sales have dropped across the country.

As a result of these events, the rental market is booming with rents going up everywhere. The average rent in Toronto now is $2300. This has created an opportunity for Canadians who want to buy a home and for those who already own but are concerned about qualifying when their present mortgage comes up for renewal.

Secondary suites are being encouraged in Calgary, Toronto and Vancouver. In Calgary, the city council has investigated basement suites and now wants to encourage higher density to prevent urban sprawl by allowing more other housing options like carriage homes. Carriage homes are suites built above or beside a detached garage. There are companies like Calgary Carriage Homes who specialize in building these units.

Being able to add the rental income from a suite to your income may allow you to purchase a home this year when prices are depressed rather than waiting another year or two or longer to get into your own home. You can either buy a home with a secondary suite already in place or build one. The program for building a suite is called Purchase Plus Improvements. It is available through multiple lenders and mortgage insurers.
If you are presently a homeowner and interested in increasing your income, the program you need is called Refinance Plus Improvements. The rules for these programs can be explained to you by your Dominion Lending Centres Mortgage Broker.

The rules on zoning, and building suites can be found on your city government website. If you decide you want to proceed be sure to make your first call to your DLC mortgage broker.

David Cooke

DAVID COOKE

Dominion Lending Centres – Accredited Mortgage Professional
David is part of DLC Jencor Mortgages in Calgary, AB.

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23 Jan

BUYING YOUR FIRST HOME? – THESE TIPS WILL SAVE YOUR LIFE

General

Posted by: David Lloyd

BUYING YOUR FIRST HOME? – THESE TIPS WILL SAVE YOUR LIFE

So you’re wanting to buy a new home? That is some very exciting news. First question, are you prepared?!
We all know big-item purchases are scary. It’s expensive, you are fully committing to this household – there is no turn backing without that pricey consequence. We totally get it.
The ultimate first-step is to do your research. You are going to want to find out the essentials before you start hunting for those pretty houses listed on Pinterest!
Let’s start here.

Credit History 
• How many credit cards do you currently have under your name?
• Do you pay your bills on time?
• How many loans do you currently have?
If you own a credit card or have a loan with an established bank, you have credit history. This information is then transferred into a financial summary known as a credit report.

Credit Report
Your credit report states these vital pieces of personal information (DO NOT let other people in on your personal finances. This should be a give-in by now!)
• first and last name
• home address
• social security number (SIN)
• credit cards
• loans
• how much money you owe
• whether or not you pay your bills on time
All this ‘credit’ talk is important because it allows lenders to determine IF they will lend you money. Your lender, whoever you choose to go with, will be on your credit situation right away. The sooner you know what is on your credit, the better!
As for your credit score, it’s best to only have it checked once as having multiple credit check by different lender can cause it to change. Let us know. We’d be happy to help here.

Employment 
It is important to have a steady income and also proof of employment for the last two years. Any changes to your employment have to be explicitly explained. Gathering these documents a head of time can save headaches later.

Down payment 
In Canada, you need to show a 90-day history of the down payment to prove you have not borrowed the money. We will need to see any movement of that money within the 90 days so its best not to move it around. You are allowed to get a gift from family for the down payment but this money must not be repayable and we will need a letter from that gift giver explaining that!

Consult Your Wish List 
It’s good to know what you want in a home if you can do it realistically. Buying a house for two? Thinking of expanding your family? You need to consider what life will look like down the road before you commit and sign that paper. Nothing would be worse than to move into a house that eventually ends up being too small because a couple of kids came into the picture or in a similar situation those grown-up kids come back home from college, university – you get the picture.
It’s also reasonable to think about factors in your dream home such as maintenance, renovations, the longevity of your stay, etc. Cover all bases, it is way better to be safe than sorry.

Finding a Broker 
Who should you use to find the best mortgage for you? We think a Broker (like us), especially if you’re a first-time home buyer. There are many lenders in Canada and a broker will be able to sort through all your options.

Finding a Realtor
When it comes to a realtor, you want someone reliable. Makes sense right? A couple ways you can find out whether or not a certain realtor is legit is by doing some online research:
• Do they have a website/social media accounts? Go check it out!
• Double-check if their license is registered and legitimate
• Look up their client feedback/disciplinary comments against them
• Check out their current listings – price range, are they a busy/relaxed business?
• Send them an e-mail with any questions! Do they have the appropriate knowledge?

Feeling better about buying that first Home? That’s exactly what we like to hear. If you have any other questions, call a Dominion Lending Centres mortgage professional today.

Chris Cabel

CHRIS CABEL

Dominion Lending Centres – Accredited Mortgage Professional
Chris is part of DLC HomeHow Mortgage based in Calgary, AB.

More Posts – Website

31 Oct

Income verification

General

Posted by: David Lloyd

Income Documents Required to close your mortgage:

The #1 way to increase the efficiency and reduce the stresses of acquiring mortgage financing is to have your documents ready and reviewed BEFORE you make an offer on your new home. The following covers approx. 95% of what will be required. However… due to our ever-changing financing environment and your unique situation, there is always the possibility for added documentation to be required at any time throughout the process.

 

Employee: Salary/Regular hours:

2 most recent pay stubs: Preferably showing no time off other than Vacation

Letter of Employment: Must be on company letterhead and include your tenure, position, income and probationary period if any. Must also contain contact info for the person writing the letter (Manager, HR department, or Commanding officer for our Canadian Forces clients. *Employment letter should be less than 30 days old when the mortgage application goes live or we may have to get an update letter from your employer.

2 most recent T4s: The T4 is quickly becoming a standard request by lenders. 2 years is usually required to prove the earnings of shift premiums, bonuses, and overtime above regular hours

2 most recent NOAs: (Notice of Assesment) NOA for cases similar to the above T4’s reasoning of total annual pay. Some lenders ask for T4’s some ask for NOA’s. Best to have both on hand if at all possible.

Note: Balances owing will have to be paid in full 10 business days before closing

 

Employee: Part-Time/Permanent Part-time | On Contract | Commission, Commission/Salary mix

2 most recent pay stubs: Preferably showing no time off other than Vacation. From all employers, if you work more than one job.

Letter of Employment: Must be on company letterhead and include your tenure, position, income and probationary period if any. Must also contain contact info for the person writing the letter (Manager, HR department, or Commanding officer for our Canadian Forces clients. *Employment letter should be less than 30 days old when the mortgage application goes live or we may have to get an update letter from your employer. Require letters from all employers, if you work more than one job.

2 most recent T4s: The T4 is quickly becoming a standard request by lenders. 2 years is usually required to prove the earnings of shift premiums, bonuses, and overtime above regular hours. Require T4s from all employers, if you work more than one job.

2 most recent NOAs: (Notice of Assesment) NOA for cases similar to the above T4’s reasoning of total annual pay. Some lenders ask for T4’s some ask for NOA’s. Best to have both on hand if at all possible.

Note: Balances owing will have to be paid in full 10 business days before closing

 

Business For Self (BFS):

** If your business is incorporated it is best you call me directly

HST Remittance:

Copy of your Business License.

Most recent 2 years T1 Generals: Accountant prepared

2 Most recent NOA’s: (Notice of Assessment) the receipt you receive after filing your Taxes) Your income will be determined based on the average of your last 2 years Line 150. If your annual income has dropped lenders may only use the lesser of the two years.

Balances owing will have to be paid in full 10 business days before closing

 

Spousal and Child Support:

If you receive support payments, those funds can be used as income for qualifying for your mortgage.

Separation Agreement: A complete separation agreement will be requested showing the details of the payments being made. Child support will require proof of the age of the children to show the support payments will continue throughout the mortgage term.

 

Pensions and Annuity Income:

2 most recent T4s of all Pensions

3 – 6 months bank statements showing automatic deposits

Most recent Annuity annual statement

15 May

Why get Approved before searching

General

Posted by: David Lloyd

Know your buyer power

  • By going through a mortgage application and full document review you will KNOW what you can/should afford to spend for your home.
  • Creates a far less stressful process know your are Approved.

Make a stronger offer

  • When you are APPROVED you can make offers with far less days required for waiving financing. This will give you a strong edge when in a multiple offer situation.

Etc…

28 Mar

Which offer do you want to make?

General

Posted by: David Lloyd

Which offer do you want to make?

$349,000 appropriately priced property

  1. REALTOR® #1 | $349,000
    1. 1 business day to waive financing
    2. Clients Fully Approved
      1. Lender requires review of the agreement, listing
      2. Zero chance the clients won’t be approved because thats already complete
  2. REALTOR® #2 | $350,000
    1. 5 business days to waive financing
    2. Clients Pre-approved
      1. Lender requires review of the agreement, listing, downpayment, income(s) and Credit
      2. Decent chance of requiring more time
      3. Chance the clients will not be approved
  3. REALTOR® #2 | $351,000
    1. 10 business days to waive financing
    2. Clients Pre-approved
      1. Lender requires review of the agreement, listing, downpayment, income(s) and Credit
      2. Chance the clients will not be approved

 

Insist your clients contact me if you want to put in offers requiring only 1 business day for financing. 

  • Win more multiple offers
  • Save your clients stress, time and cash
  • Be that #1 REALTOR®

 

Top quality mortgages including

  • Highly competitive rates
  • 120 day rate holds
  • Full pre-payment privileges

 

 

contact form

  • Contact Information

  • About You (optional)

12 Mar

1 Day Condition of Financing

General

Posted by: David Lloyd

Yes, 1 day!

  1. Have you lost a deal in the past when a buyer told you they were pre-approved only to came back and tell you they couldn’t get financing?

  2. Have you lost in a multiple offering due to your 5 – 10 day financing condition?

  3. Would you win more multiple offers and/or save buyers money if your offers had just a 1 Day condition of financing?

  4. How many purchases in the Kingston area are going into multiple offers?

My procedure will both virtually eliminate pre-approves falling through and allow you to make offers with as little as 1 Day condition of financing (potentially even 0 days). From now on forget about pre-approvals. Moving forward you’ll work with clients that are FULLY APPROVED!

More information

  • Who can qualify?
    • Most anyone that qualifies for an ‘A’ (big bank) mortgage.
  • What properties qualify
    • Any residential properties in quality condition will work. However, rural properties may require more time (est. 3 business days) only due to the potential of an appraisal being required.
  • Are the rates any good?
    • Rates are competitive
  • Who are the lenders?
    • There are a select number of large well-known quality lenders involved
  • What’s the catch?
    • No catch. I just need to take a regular application and collect the appropriate documents for the buyers

Contact me directly if you have more questions or concerns.

Take care

  • Contact Information

  • About You (optional)

2 Apr

City of Kingston home ownership program 2013

General

Posted by: David Lloyd

The city of kingston is re-introducing the home ownership program. The details are in the the pdf here in the blog.

Highlights of the program

1. Max $13,000 or 5%

2. It is a 20 year interest free loan

3. Must be currently renting in Kingston

4. Household income must be less than $74,900

 

Check out the full fact sheet here.

Kingston_down_payment_program.pdf

14 Feb

Purchase Plus Improvements

General

Posted by: David Lloyd

Imagine you have found the home you want in the perfect neighbourhood all at a great price. The problem is… After the 5% down payment and other closing costs you will be unable to afford the improvements needed to make the house your HOME. 


We may have your solution!

 

A Purchase Plus Improvement mortgage may be for you.

What is a Purchase Plus Improvement mortgage you ask?

This is a mortgage where you will get the funds required to purchase the property AND the fund required to make the improvements need as well.

How does it work?

Example: Home Price – $275,000 | Improvement Cost – $25,000 | Total $300,000

1. You must qualify for the full $300,000 mortgage

2. Together we provide the lender and CMHC (if less than %5 down payment) with a professional estimate of the improvements to be done.

3. On the day of closing the full $300,000 will be forwarded from the lender to your Lawyer. Your Lawyer will send $275,000 to the sellers lawyer and hold the $25,000 for the improvements in his/her trust account.

4. You then have approximately 90 days (exceptions to 90 days can be made) to have the improvements complete. You will be responsible for the any costs incurred until the improvements are complete.

5. When the improvements are complete an appraiser will sent out to your property to confirm for the lender that the improvements have been completed as laid out in the original estimate.

6. The appraiser will notify the lender that the improvements are in deed complete.

7. The lender then notifies your lawyer that your $25,000 can be released. Your lawyer will contact you and either you will go pick up your cheque or the lawyer will mail it to you.

 

NOTES:

A) Although you will need a professional quote for the lender to get the approval, a professional contractor is not required to complete the work. If you are handy and want to take on all or some of the project(s) yourself, you can.

B) The improvements have to increase the value of the property by the same or more than the amount of money required to do the work. The lender and/or CMHC have complete control over estimated increase in value to your property. If the lender or CMHC believe the improvements are of a lesser value than the quote we will simply get a reply stating that you will only have for example $20,000 instead or the $25,000 in the quote. The decision to continue or not is yours

C) The maximum value of the improvements can not exceed 20% of the purchase price. 

 

If you have any questions as to what improvements will bring value please contact me and also ask your realtor.

David Lloyd

613.449.0579

david@greatratemortgages.com

5 Jul

New Mortgage Rules and my Thoughts

General

Posted by: David Lloyd

New CMHC Rules as of July 9th 2012.

 

The sky will not be falling on the Kingston Housing Market any time soon. The New rules will likely slow the market somewhat and may stall home value increases but will not stop most people from buying. They rules all in all are not a bad thing for the market. Also… Don’t forget, if needed i’m sure the 30, 35, and even the 40 year mortgages could return. But I wouldn’t hold my breathe.

 

Here are the High-lights:

 

Maximum Amortization Period

  • The maximum amortization has been reduced to 25 years from 30 years.
 

Refinance Maximum Loan to Value

  • The maximum loan to value for 1-4 unit residential properties will be reduced to 80% from 85%. 


Introducing a new Maximum Purchase Price

  • The maximum purchase price or as-improved value for purchase plus improvement loans cannot exceed $999,999.99 (must be less than $1 Million).

 


Maximum Debt Service Ratio Limits

 

For clients with beacon scores less than 680

  • The maximum Gross Debt Service ratio (GDS) cannot exceed 35%.
  • The Total Debt Service (TDS) cannot exceed 42%

 

For clients with beacon scores equal to or greater than 680

  • The maximum Gross Debt Service ratio (GDS) cannot exceed 39%
  • The Total Debt Service (TDS) cannot exceed 44%


Note:

GDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee) / Gross income] * 100

TDS = [(Principal+Interest+Heating+Municiple Taxs + 1/2 condo fee + all other debts) / Gross income] * 100

 

These rules are subject ONLY to CMHC insured mortgages. For those with more than 20% down or in Equity we still have 30 year mortgages.

 

Any questions please feel free to ask

24 Jun

FSR

General

Posted by: David Lloyd

Thanks for visiting. 

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