28 Aug

Is a CHIP Reverse Mortgage right for you?

General

Posted by: Anne Martin

Reverse Mortgage – What is it and is it right for you? @DLCCanadaInc’s Jordan Thomson @VanMortgages breaks it down:

https://dominionlending.ca/news/a-reverse-mortgage-what-is-it-and-is-it-right-for-you/

27 Aug

What Is a “Gifted” Down Payment?

General

Posted by: Anne Martin

Finding enough down payment to purchase a home is often difficult especially for first time buyers.  They may receive a non repayable gift from a family member.  A letter has to be signed by the giftor to provide proof that they intend to give the gift on or before closing.

Read more here….

Dominion Lending Centres http://ow.ly/Rsh0u

21 Aug

Bond rates plummet. Mortgage Market Update August 21, 2015

General

Posted by: Anne Martin

 
 


 


Anne Martin
Mortgage Agent | FSCO # M10002257

705-720-1001
1-800-500-1841 
 
anne@ndlc.ca | www.barriemortgagelocators.com

39 Collier Street, Ste 300 Barrie ON L4M 1G5

  

  Neighbourhood Dominion Lending Centres |  FSCO 11764  Independently Owned & Operated
 

 
Friday, August 21, 2015
Market Update

The past week has seen bond rates plummet to reach the record low levels they were at as of January this year.  They are currently at the lowest in the last 50-60 years, global uncertainty on many fronts appears to be the main reason.

Interest rates remain unchanged with 5 year fixed funds available in the 2.59-2.69% range, depending on the circumstances. Variable rate mortgages are in the 2.0-2.1% range.

Below is a link to a bond site for those who want to follow this more closely, this is the site we rely on for our information.

http://www.investing.com/rates-bonds/canada-5-year-bond-yield-streaming-chart

The next meeting with the Bank of Canada is on Sept 9, 2015.

P.S. If you, your family, or co-workers require guidance on current market trends, please call me, I am always available to help.

…Anne

 

U.S. existing-home sales rise to 8-year high 

The Globe and Mail
Published Thursday, Aug. 20, 2015 10:05AM EDT

U.S. home resales rose more than expected in July to their highest level since 2007, a sign the U.S. housing market was heating up and could provide more support for the overall economy.

The National Association of Realtors said…Read More


 
To enter, close a mortgage through Neighbourhood Dominion Lending Centres (including switches and refinancing) OR refer others to do the same. For each deal that closes, you and your referral will receive an entry ballot! The more referrals you send, the better your chances of winning!

Call me for more details.

Contest closes December 1st, 2015 at midnight EST.

Contest Rules and Regulations


 Historical Interest Rate Graphs   

Below you will find a feature which will give you current interest rate trends. It  can also be accessed on our web site. I hope you and your clients find it useful

Click here to  access rate graphs 


My Commitment to You 

  • Constant update of Market Conditions
  • Innovative Mortgage Products
  • Value Added Services
  • Unbiased Advice
  • Innovative Mortgage Strategies and NOT just Order Taking

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21 Aug

Beware of Early Discharge Penalties!

General

Posted by: Anne Martin

BEWARE OF EARLY DISCHARGE PENALTIES!

Beware Of Early Discharge Penalties!

Have you ever needed to get out of your mortgage before the maturity date? It can be a confusing and surprising experience. Don’t forget that your mortgage is a legal contract, therefore, like most contracts it is expected that it would cost you something to break it.

The lending institution will have two options to determine how much you will pay, but first they will consider the type of mortgage term you have. Is it a variable rate or a fixed rate? If it’s a variable rate, you most likely will pay three months interest max, but if your term is fixed, you will pay either the Interest Rate Differential (IRD) or three months interest, whichever is greater.

Three Months Interest Penalty

Determining how much three months interest will cost you is usually pretty simple; take the remaining mortgage balance, multiply by the interest rate, divide by 365 to get the daily amount, then multiply by 90 (for three months) and you got it. Of course, you must verify your figures with your financial institution, but you get the picture.

Interest Rate Differential

IRD is more complex. In simple terms, the financial institution wants you to pay them back for the loss in revenue that they may experience when you pay out the mortgage early. So if you have two years left on your mortgage, and they can’t loan out the same funds for at least the interest rate you are paying they will want to be compensated for their loss.

For example; if your current rate is 5% but they can currently can only loan out those same dollars at 3%, they will want you to pay them the 2% loss.

With me so far? Here it comes…

Say your rate of 5% was a discounted rate at the time received, most are, and the posted rate at the time was actually 7%, the financial institution may actually charge you the difference between the 7% and the current 3%, or something even more complicated. Could be a difference of thousands of dollars!

Most banks and financial institutions have different ways of calculating their early discharge penalties, therefore, it is imperative that you find out how they will calculate this penalty upfront before you initially sign for your mortgage, especially if you think you might need to get out early.

A mortgage specialist will take a financial planning approach to sourcing your mortgage options and will help you throughout your decision making progress, making sure that you not only consider your current situation but make sure you look at future scenarios as well.

The good news is that we have access to lenders who will calculate your penalty using your discounted interest rate against the current discounted rate when calculating the penalty.

If you are considering paying out your mortgage early, it is vital that you contact your mortgage specialist or financial institution to obtain a written calculation on how this penalty will be calculated before finalizing your plans. Knowing the costs prior to making the final decision on a house sale/purchase or early discharge can save you thousands of dollars and a lot of stress!

Better to know up front, than being surprised later!

 
Anne Martin

ANNE MARTIN

Dominion Lending Centres – Accredited Mortgage Professional
Anne is part of Neighbourhood Dominion Lending Centres based in Barrie, ON.

 

 

18 Aug

Who does your bank work for?

General

Posted by: Anne Martin

WHO DOES YOUR BANKER WORK FOR?

The Banker

It may seem an odd question with a very obvious answer but you would be surprised how few people consider this question when approaching their bank for mortgage advice. When you deal with a bank employee or a mobile mortgage representative (also a bank employee), you need to know that their primary responsibility is to look out for the bank’s best interest. Banks are morally and legally obligated to provide the best return for their shareholders. This can present an issue, especially if you are seeking “unbiased” mortgage advice. As one of our clients recently found out, dealing with a bank isn’t all that it is cracked up to be.

In 2009, when the clients approached their bank’s “Mortgage Specialist” to explore their refinancing option, the Specialist had them approved for what they considered to be a good rate with good terms. The clients happily signed their mortgage documents and went on their way happy with their new terms. If that was the end of the story I wouldn’t be writing this blog, however, that was not the case.

This year the clients decided to sell their home and move up to a larger house that could accommodate their growing family. After consulting a realtor, they phoned their bank to find out what options were available to them. The rate and terms offered by the bank were not competitive with current market offerings so the clients asked what the cost to buy out their mortgage would be. After using the bank’s online calculator, they figured their prepayment penalty would be in the $5300 range. Needless to say, the clients were completely floored when the bank representative told them their penalty would be in the neighbourhood of $22,000.

After several moments of shock, the clients asked the representative how this could be. The answer they received was that their “Specialist” had provided them with a “Discounted” rate on their last refinance and because of that they were penalized an additional 1.85% in their penalty calculation which accounted for the additional $16,000+. In the end, the additional penalty did not leave the client with enough equity in their home to sell and purchase a new property.

So that “great rate” that the clients received from their “Specialist” resulted in a considerable amount of hardship down the road. So the next time you go to your bank for mortgage advice, it would be prudent to consider who your banker works for…and then come to Dominion Lending Centres!

Blog post by 

JASON HUMENIUK

Dominion Lending Centres – Accredited Mortgage Professional
Jason is part of DLC Hilltop Financial based in Langley, BC