12 Feb

Harmony Mortgage Group Helping you in your home buying search

General

Posted by: Carie Bissonnette

 

As Chilliwack’s leaders in mortgage lending, Harmony Mortgage Group uses their experience in the lending community to search out the best mortgage product to suit your needs.  

 

 
As a mortgage broker we will help you first qualify, then hold a rate for you while you shop.  This is why making a pre approval with your mortgage broker at Harmony Mortgage Group is the most important first step in buying a home.
 
Starting Your Search
Here are some ways to begin looking for your new home:
  • Word-of-mouth
    Tell everyone you know that you are looking for a new home. Surprising things sometimes happen. For example, you might hear about a home that is just becoming available on the market.
  • Newspapers and real estate magazines
    Check the new homes section in daily newspapers. Look for the free real estate magazines available at newsstands, convenience stores and other outlets. These publications are free and give pictures and short descriptions of homes for sale.
  • The Internet
    Check out real estate websites, such as realtor.ca. These websites give information and pictures of a wide range of properties. Most sites let you search by location, price, number of bedrooms, and other features.
  • “For Sale” signs
    Drive, bike or walk around a neighborhood that interests you and look for “For Sale” signs. This is a good way to find homes that are being sold by the owner and are not listed with an agent.
  • Visit new development sites
    If you are looking for a newly built home, you can see available models and get information from builders.
  • Work with a realtor
    For most buyers, a realtor is key to finding the right home.
Useful Tips for Your Search
  • Keep records
    Whether you have a realtor or are looking by yourself, visit lots of homes before choosing one. Some things to compare are the home’s energy rating, utility costs, property taxes and major repairs. These will affect your monthly housing expenses. You can ask to see copies of utility and other bills. Use the CMHC Home Hunting Comparison Worksheet to make sure you get all the information you need to compare homes.
  • Check out the property’s current financing
    If the existing mortgage on the home is favorable, it may be possible to take it over from the vendor. It may even be possible to get a vendor take back mortgage, to help close the deal.
  • Think twice
    Even if a home seems perfect, go back and take a closer, more critical look at it. Visit it on different days and different times of the day. Chat with the neighbours. Look deeper — don’t be distracted by attractive surface details.
  • Energy Rating
    Some houses and new homes in Canada have an Energy Rating that describes the energy efficiency of the home. An energy-rated home usually has a sticker with the rating on the electrical panel. The energy rating is on a 0 – 100 scale. The higher the rating, the more energy-efficient is the home, and the less it costs to operate.
  • CMHC statistics and analysis
    CMHC has the latest statistical information and analysis of housing trends. Our Market Analysis Center tracks information for local, provincial and national markets. 
Making an Offer to Purchase
After you have found the home you want to buy, you need to give the vendor an Offer to Purchase (sometimes called an Agreement of Purchase and Sale). It is very helpful to work with a realtor (and/or a lawyer/notary) to prepare your offer. The Offer to Purchase is a legal document and should be carefully prepared.
These items are typically included:
  • Names
    Your legal name, the name of the vendor and the legal civic address of the property.
  • Price
    The price you are offering to pay.
  • Things included
    Any items in or around the home that you think are included in the sale should be specifically stated in your offer. Some examples might be window coverings and appliances.
  • Amount of your deposit
  • The closing day
    The closing day is the date you take possession of the home. It is usually 30 – 60 days after the date of agreement. But, it can be 90 days, or even longer.
  • Request for a current land survey of the property
  • Date the offer expires
    After this date the offer becomes null and void — that means it’s no longer valid.
  • Other conditions
    Other conditions may include a satisfactory home inspection report, a property appraisal, and lender approval of mortgage financing. This means that the contract will become final only when the conditions are met.
What Happens After You Make an Offer to Purchase?
Imagine that your realtor has helped you prepare an Offer to Purchase. This offer includes all the details of the sale. To be extra cautious (since you know an Offer to Purchase is legally binding) ask your lawyer to look at it before showing it to the vendor. The realtor presents the offer to the vendor. What can you expect to happen next? There are three possible responses.
  • Response 1
    The vendor accepts your offer. The deal is concluded and you move on to the next steps in the buying process.
  • Response 2
    The vendor makes a counter-offer. The counter-offer might ask for a higher price, or different terms. You can sign the offer back to the vendor, offering a higher price than your original offer, but lower than the vendor’s counter-offer. If the vender accepts this counter-offer, the deal is concluded.
  • Response 3
    The vendor makes a counter-offer, asking for a higher price or different terms. If a counter-offer is returned to you at a higher price, ensure that you know exactly how much you can afford before you start negotiating. You don’t want to get caught up in the heat of the moment with costs you can’t afford. You reject the counter-offer because the price is still too high, or you can’t agree to the conditions. The sale doesn’t go through, and your deposit is returned.
 
A Homeowner’s Experience

 

Getting a Mortgage
Once your Offer to Purchase has been accepted, go to see your Chilliwack Mortgage broker, Harmony Mortgage Group.  At Harmony Mortgage Group we will verify (and update, if necessary) your financial information and put together what’s needed to complete the mortgage application.  Your Chilliwack Mortgage Broker, Harmony Mortgage Group will help you decide between the various types of mortgages, terms, interest rates, amortization periods and, payment schedules that are available.
Depending on your down payment, you may have a conventional mortgage or a high-ratio mortgage.
 
Types of Mortgages
Conventional Mortgage
A conventional mortgage is a mortgage loan that is equal to, or less than, 80% of the lending value of the property. The lending value is the property’s purchase price or market value — whichever is less. For a conventional mortgage, the down payment is at least 20% of the purchase price or market value.
High-ratio Mortgage
If your down payment is less than 20% of the home price, you will typically need a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan insurance. CMHC is a major provider of mortgage loan insurance, however there are also 2 other insurers, Canada Guaratnee and Genworth.  Depending on your specific needs the lender your Chilliwack Mortgage brokers at Harmony Mortgage Group will chose the insurer that fits your needs.
Mortgage Term
At Harmony Mortgage Group, as Chilliwacks leading Mortgage brokers we will tell you about the term options for the mortgage. The term is the length of time that the mortgage contract conditions, including interest rate, will be fixed. The term can be from six months up to ten years. A longer term (for example, five years) lets you plan ahead. It also protects you from interest rate increases. Think carefully about the term that you want, and don’t be afraid to ask your lender to figure out the differences between a one, two, five-year (or longer) term mortgage.
Mortgage Interest Rates
Mortgage interest rates are fixed, variable or adjustable.
Fixed Mortgage Interest Rate
A fixed mortgage interest rate is a locked-in rate that will not increase for the term of the mortgage.
Variable Mortgage Interest Rate
A variable rate fluctuates based on market conditions. The mortgage payment remains unchanged.
Adjustable Mortgage Interest Rate
With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.
Open or Closed Mortgage
Closed Mortgage
A closed mortgage cannot be paid off, in whole or in part, before the end of its term. With a closed mortgage you must make only your monthly payments — you cannot pay more than the agreed payment. A closed mortgage is a good choice if you’d like to have a fixed monthly payment. With it you can carefully plan your monthly expenses. But, a closed mortgage is not flexible. There are often penalties, or restrictive conditions, if you want to pay an additional amount. A closed mortgage may be a poor choice if you decide to move before the end of the term, or if you want to benefit from a decrease of interest rates.
Open Mortgage
An open mortgage is flexible. That means that you can usually pay off part of it, or the entire amount at any time without penalty. An open mortgage can be a good choice if you plan to sell your home in the near future. It can also be a good choice if you want to pay off a large sum of your mortgage loan. Most lenders let you convert an open mortgage to a closed mortgage at any time, although you may have to pay a small fee.
Amortization
Amortization is the length of time the entire mortgage debt will be repaid. Many mortgages are amortized over 25 years, but longer periods are available. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run. If each mortgage term is five years, and the mortgage is amortized over 20 years, you will have to renegotiate the mortgage four times (every five years).
Payment Schedule
A mortgage loan is repaid in regular payments — monthly, biweekly or weekly. More frequent payment schedules (for example weekly) can save some interest costs by reducing the outstanding principal balance more quickly. The more payments you make in a year, the lower the overall interest you have to pay on your mortgage.
Closing Day
Closing day is the day when you finally take legal possession and get to call the house your home. The final signing usually happens at the lawyer or notary’s office.
These are the things that happen on closing day:
  • The lender chosen by your mortgage broker will give the mortgage money to your lawyer/notary.
  • You must give the down payment (minus the deposit) to your lawyer/notary. You must also give the remaining closing costs.
  • Your lawyer/notary
·          
    • Pays the vendor
    • Registers the home in your name
    • Gives you the deed and the keys to your new home
Moving
Hiring a Mover
When planning your move, friends or relatives may be able to recommend a professional moving company. Don’t forget to ask the mover for references. Ask the mover for an estimate and outline of fees (do they charge a flat rate or hourly fee?). Once you’ve chosen a mover, ask them to come to your home to see what will be moved in case the estimate needs to be changed.
You’ll want to ensure that your belongings are insured during the move. Your home or property insurance may cover goods in transit. Call your broker or insurance company to be sure. Ask if you are fully covered. Many moving companies offer additional insurance coverage. Be aware that professional movers are not responsible for items such as jewellery, money, or important papers. Move these yourself to keep them safe.
If you decide to do your own packing, keep in mind that you will need the proper materials, and that packing can take up a lot of time.
Moving Day
On moving day, go through the house with the van supervisor and give him (or her) any special instructions. The supervisor will note the condition of your goods on an inventory list. Go through the house with the supervisor to make sure the list is complete and accurate. When the van arrives at your new home, mark off the items on the mover’s list as they are unloaded. If you paid for the movers to unpack boxes and remove packing materials, remember that they will not put dishes or linens into cupboards.
Moving day is almost always tiring. But, planning ahead will make the transition as smooth as possible.
Moving Costs
The amount you spend depends on your decisions about many things. Here are some to think about:
  • Do you want to hire professional movers?
  • If so, will it be a large company or a smaller local moving company?
  • Will you need to buy insurance to protect your items in transit?
  • If you plan to move yourself, will you rent a vehicle?
  • Will your current auto or home insurance policy cover your items during the move?
  • Will you have to pay utility companies a fee to connect their services in your new home? Are there other utility charges (such as a deposit)?
Post-Closing Costs
Changing the Locks
When you move into your new home you’ll want to change the exterior door locks for security. After all, you want only the people you choose to have the key to your new home. You can change the locks yourself or call a locksmith to do the job.
Cleaning
Both your old home and your new home should be given a thorough cleaning at moving time. Whether you’re buying cleaning supplies and doing it yourself, or hiring someone to clean for you, the costs can really add up. Plan for this expense.
Decorating
You might want to re-paint, replace some light fixtures, refinish the floor, re-carpet, or do any number of other decorating tasks. Plan your budget, and consider postponing some projects for a period of time.
Appliances
If your offer to purchase didn’t include appliances, and if you don’t have your own, you will have to buy them when you move into your new home. Some appliances might have installation charges.
Tools and Equipment
When you own your own home, you can no longer call the landlord to do repairs. You’ll need to own some basic hand tools and possibly some gardening and snow clearing equipment.
 
Get a fast pre approval with no maditory fields, same day, secure and direct on our Apply Now page on our website.  You don’t even need to leave your home to know how much you will qualify to buy for.  
 
1-888-755-1126
 
 
 
 
16 Dec

Single Ladies buying a home

General

Posted by: Carie Bissonnette

Single Ladies buying a home

 

 

 
Single Ladies Buying Homes
 
All the single ladies, all the single ladies…. put your hands up!  
Take it from a single lady who just bought my first home on my own.  It is both scary and empowering.  You need an expert on your side.
 
It’s becoming increasingly apparent that a greater number of women are now taking the reigns when it comes to home purchases. There’s a growing trend among single women – and, more precisely, professional single women – who are becoming independent homeowners. While many of them may be putting off marriage, they’re not waiting around for Mr Right before taking the plunge into homeownership.
 
It’s believed that around 20% of homebuyers in North America are single women based on a 2011 report released by the US National Association of Realtors. Harvard University’s Joint Center for Housing Studies also released a report that said single women are buying in record numbers.
 
There’s no equivalent data for Canada, but an abundance of anecdotal information has led to the creation of shows like HGTV’s Buy Herself, which follows single women making their first real estate purchases.
Women are looking for ways to become financially independent, and investing in real estate and building equity for themselves are ways to invest in their future – building financial security.
 
Women are taking advantage of historically low interest rates and recognizing homeownership is often more affordable than renting.
 
Seeking expert advice
One of the amazing things about women looking to invest in real estate is that they’re getting more advice before they make the decision to enter the market. They’re seeking out mortgageexperts and real estate agents, and building a plan for the perfect entry into the market. They’re making lists of areas in which they’re interested in purchasing, itemizing amenities they would need in their ideal neighbourhoods, ensuring they have all the facts around closing costs and fees associated with making the purchase, and securing a mortgage.
 
Buying a home is likely one of the largest purchases you’ll ever make in your lifetime, and can feel overwhelming. That’s why working with a professional mortgage agent, real estate agent, home inspector and so on is essential. You’ll be working with these professionals closely – possibly for months – so interactions should feel comfortable, and they should be knowledgeable and responsive even to the smallest question.
 
The more prepared you are, the smoother the experience will be so do a little research on your own over the Internet to get a good idea of what types of properties and areas are of interest to you. Make a list of questions to ask your mortgage agent or realtor – and keep it on hand so you can add to it as more questions arise.
 
Interest rates are the lowest they’ve been in history and they have nowhere to go but up. Industry professionals believe that as rates begin to rise, they’ll continue to rise for some time. There has never been a better time for women to make the decision to get into the real estate market to find the perfect place to call home. 
 
 
You don’t need to do it alone!  Call Tammy and Carie today, experts in the mortgage field and women who have done it themselves.  1-888-755-1126 Check out our website
16 Dec

Mortgage Broker’s offer choice

General

Posted by: Carie Bissonnette

Mortgage Brokers Offer Choice!

 

The next time you’re looking for a mortgage for that new house or you’re up for renewal on your existing mortgage, think about using a mortgage broker – their services are free and they offer you an abundance of choices the banks simply can’t compete with.
 
Mortgage brokers have access to a vast array of lenders – up to 90+ institutions, including some of the big banks – which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice – namely, their own products.
 
Mortgage brokers do their homework on available mortgage products and keep themselves abreast of any new products, or changes to existing products, to ensure they find the best mortgage to fit your specific needs.
 
Unlike the banks, mortgage brokers can also cater to self-employed borrowers as well as those who have suffered credit blemishes due to life experiences such as divorce or illness. Brokers will listen to your story, whereas the banks have a very narrow view of what fits into their financing box – and this is unnegotiable.
 
If you’re thinking of buying a home, Harmony Mortgage Group can find the best mortgage rate and term for your unique situation. 1-888-755-1126 HarmonyMortgage.ca
 
Top Reasons for Using a Broker:
  1. Choice – access to multiple financial institutions
  2. Costs – using a broker is free and they can negotiate lower rates for you
  3. Knowledge – brokers stay up-to-date on available products and services
  4. Flexibility – mortgage products are even available for the self-employed or those who have credit blemishes 
16 Dec

Mortgage up for Renewal soon? Start now!

General

Posted by: Carie Bissonnette

Mortgage up for Renewal soon? Start now!

 

It really is never to early to start looking at options for your renewal.  Harmony Mortgage Group has trained professionals who are trained experts in the field of Mortgages.  We don’t like to slam banks as we all need our banks for personal loans, banking, credit cards, and lines of credit.  In fact we encourage you to talk to your bank and see what options are available before coming and talking to us. 
With over 40 different lenders (often even your own bank) we can find the best mortgage solution for you.  This way when your mortgage term is up you have the confidence that you have made the right decision and can rest at ease knowing you received the best rate, term, and institution suited for you and your family. 

Just like any area of expertise it is important that you talk with someone who not only has your best interest in mind but knows what options are available.  We at Harmony Mortgage Group are specifically trained in Mortgages.  This means unlike banks who only train their mortgage advisers on how to sell “their” product, we know fully and understand all the industry rules, guidelines and constant changes that can give a borrower a leg up on qualifying for a purchase, renewal or straight transfer to a new institution offering a better product.

There are situations where your mortgage comes up for renewal and the institution you are currently with is actually offering the best product for you, in this case, you get the best of both worlds, we will look at your terms, and help you decide if you are getting what you as a client deserve and often negotiate with your own institution.

Give us a call today for a free consultation.  We can meet in person, talk over the phone, or simply email if you prefer.  You can meet us in person in our Dominion Lending office in the Sutton Business Centre 9240 Young RD Chilliwack. call us toll free 1-888-755-1126 email us HarmonyMortgage@gmail.com

 

16 Dec

Getting a mortgage pre approval

General

Posted by: Carie Bissonnette

What’s the scoop on Mortgage Pre-Approval?

 

 

Getting a Mortgage Pre-Approval

 
 
If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.
The mortgage professional that you work with to get pre-approved will let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be.
Licensed mortgage professionals can lock-in an interest rate for you for anywhere from 60 – 120 days while you shop for your perfect home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process.
In order to get pre-approved for a mortgage, a mortgage professional requires a short list of information that will allow them to determine your buying power. A mortgage professional will explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which mortgage products they believe will most likely meet your needs the best, plus they will review all of the other costs involved with purchasing a home.
Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a new home. A pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved.
 
At Harmony Mortgage Group our licensed professionals do more than just run numbers.  With over 20 years experience in Mortgage lending you can rest assure your individual questions and mortgage needs will be well taken care of.  We specialize in first time homebuyers and work with many different realtors with strengths to fit anyone’s situation.
 
HarmonyMortgage@gmail.com
toll free 1-888-755-1126
16 Dec

Does breaking your mortgage make sense??

General

Posted by: Carie Bissonnette

Does Breaking Your Mortgage Make Sense???

   

With mortgage rates still hovering at historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates begin to rise.

Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?
If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call or send me an email to discuss your options.
In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.
People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).
 
The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.
Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.
While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings.
As always, if you have questions about breaking your mortgage to secure a lower rate, or general mortgage questions, I’m here to help!
 
 
New Homebuyer Calculator & Mobile App
Canada Mortgage and Housing Corporation (CMHC) recently introduced two new tools to help Canadian homebuyers make informed and responsible home-buying decisions – including a calculator and mobile app.
CMHC’s new Debt Service Calculator allows homebuyers to evaluate their financial situation and understand how much they can comfortably afford to spend on a mortgage. The easy-to-use calculator allows users to quickly estimate their gross debt-service ratio (GDS) and total debt-service ratio (TDS) – both important measures in assessing their financial readiness for homeownership. The Debt Service Calculator can be accessed by visiting: www.cmhc-schl.gc.ca/en/co/buho/buho_005.cfm
 
CMHC’s new ‘Ready, Set, Home’ mobile app provides consumers, particularly first-time homebuyers, with comprehensive CMHC information and tools at your fingertips. The app helps homebuyers keep track of the details throughout the home-buying process and provides access to a variety of helpful calculators, articles and other resources.
Recognizing the increasingly fast-paced, electronic and mobile environment, the new ‘Ready, Set, Home’ mobile app is a free application that offers quick and convenient access to CMHC’s extensive housing information. The app can be downloaded to your Blackberry, Android or iPhone device at: www.cmhc.ca/mobile.
These new tools are the latest additions to CMHC’s comprehensive suite of free resources available to support Canadian homebuyers
 
As Mortgage Brokers within Dominion Lending Centers Harmony Mortgage Brokers offer more that the average Mortgage brokers
  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.

Harmony Mortgage Professionals are not your everyday average mortgage brokers! 

16 Dec

Spousal Buy-Out Program

General

Posted by: Carie Bissonnette

Separating???

 

Check out our Spousal Buyout Program!

So many thoughts go through your mind at this time, the last thing you want to think about is how you can financially make it through this difficult time.

 

Let us shoulder the burden for you. Our partnership with leading lenders can help facilitate a spousal buyout program.  This is just like buying for the first time.  Best of all with the Spousal buyout program you will be able to roll in your current debt.  This can help relieve a lot of stress and allow an easier transition in to starting a new life.  We both understand this life change…. we have been there too, and have the best empathic advise.

 

 

 Harmony Mortgage Professionals are not your everyday average mortgage brokers! 

Give us a call today 1-888-755-1126

16 Dec

Purchase plus improvements

General

Posted by: Carie Bissonnette

Do you have a purple bathroom, shag carpet and out of date laminate flooring?????

 
With the new lending guidlines tightening it is increasingly important to get the right advice when buying, refinancing, or making a home purchase.  When it comes to refinancing it seems that very few clients have the equity in their home to allow for a home renovation budget.

What does it mean to have “equity” in your home??? That is a great question…. What it meansthe difference in what you owe on your mortgage to date and what the market value of your home today.  If you are one of the lucky ones who bought when the market was low and the values have gone up, you may already have equity in your home even if you haven’t been making payments for very long.  However, for people who bought in the last couple years this option is almost obsolete.

We have found the solution to this problem with our “Refiance Plus Improvements”.  Once you have your renovation plans costed out, we can use the as if completed value of your house, to determine how much equity you have access to. Whether you are looking to enhance to sell or for your own comfort and pleasure this option gives you access to more $$$$ than a regular refinance would.  In a buyers market sellers need all the advantages they can have over their competition.

Do you have a purple bathroom, shag carpet and out of date laminate flooring???  With a refinance plus improvements you can update these eye sores and create a completely sellable modern home.  Some people just can’t see past the things they can change, or just lack the enthusiasm or creativity to make the changes after a purchase.  You will be able to fall under the government of Canada’s new guidlines on refiancing only up to 80%, and you will have increased the value of your home to either live in yourself or sell in a very lively market.

We would love to place you with a lender who is offering this product.  Just give us a call or send us a PM and we will be happy to set you up.

Harmonymortgage.ca
harmonyMortgage@gmail.com
1-888-755-1126

16 Dec

buying with 5% down

General

Posted by: Carie Bissonnette

What is all this talk about so many Mortgage changes????  Why are people under the perception that you need more than 5% down on buying a house?  The new mortgage rules had little to do with down payments in fact for the average home buyer the down payment rules have not changed at all.

 

When March 2012 ushered in a pile of new mortgage rules many people freaked out about qualifying.  Yes there were changes that affected the ability to qualify for a mortgage, like the change from a 30 year max amortization to 25 years amortization, resulting in a higher mortgage payment. 

As mortgage brokers we are always looking for ways to better educate and advise our clients.  One of the things we noticed in talking with our clients was the lack of education about down payments.  Many of our clients have been lead to believe that they will no longer qualify with the new rules in place.  Reality is we help many clients who have been told they will not qualify or have helped them qualify for a higher mortgage.  We take into consideration all of the vairables and options out there and because we work independantly we are able to negotiate the rates with over 40 different lenders.

Now to talk down payments, since that is what this blog is supposed to be about…..  The truth is you CAN STILL BUY WITH 5% DOWN!!  Yes this is true, and NO YOU DO NOT NEED TO BE A FIRST TIME HOME BUYER.  This can be the 5th home you have purchased as an owner occupied unit and you can still put as little as 5% down.  Yes, it is true, you will be paying a premium to a mortgage insurerer like CMHC, Genworth or Canada Guarantee however with rates as low as they are currently, it doesn’t affect the payment substancially.  What the mortgage insurers do for you is allow you to put less than the lender requirement of 20% down by insuring the extra down payment funds, they do this by charging you a premium over the life of the mortgage…

So basically don’t count yourself out of the market, rates are the best they have ever been, which also helps with qualifying.

Harmony Mortgage Group is dedicated to keeping up with the latest regulations, policies and programs offered by the different lenders.  Because of this we are able to offer our clients the best service and options that are out there on an ongoing basis.  We do the negotiations and leg work for you.

1-888-755-1126
HarmonyMortgage.ca
HarmonyMortgage@gmail.com

16 Dec

Buying a pre owned home

General

Posted by: Carie Bissonnette

Wouldn’t you love to buy an older home but be able to pick your own kitchen and fixtures and even the paint color on the walls???  Buying new is great because you get to pick your own colors and specifics.   But we know a way that you could save the cost of buying new and still have the option to make it what you want……..  It’s called Purchase plus improvements and it is quickly becoming an option to help clients get exactly what they want out of a used property.

How can purchase plus improvements help you?  Whether you are buying a home for yourself, as an investment, or you are a realtor and are looking for creative ways to help sell that property.  The Purchase plus improvements program can help.  It is often overlooked as an option, however if you are a buyer or a realtor this is a tool you can add to your belt.

Many people are able to look past the visible eye sores and see a final product that will be a worthy investment.  How it works is as simple as it’s title.  You are buying the home and mortgaging the improvements in with the purchase price. 

It is as simple as getting estimates for what you would like to do, submitting to the lender for review then once the improvements are complete you receive a cheque from the notary in the amount of the improvements.  Some lenders will even allow you to do the improvements yourself and receive the estimated $$$ for the improvements.  This can be a significant benefit for someone in the industry or simply someone who is handy on the reno scene.

This is not for everyone when doing a large scale reno however some lenders allow what’s called sweat equity, or “paying yourself to do the work”.  This could help those of you who are motivated and trained to do some or all of the work yourself.  And in turn helping to pay the cost of the improvements. 

We are here to help you find solutions like these to either help sell your current home or to make the home you are interested in but just needs some tweaking exactly what you want.