Are You Stressed Financially?

General Trish Pigott 17 Mar

Call me for help!  Often I will talk to clients about either an upcoming mortgage renewal or details surrounding their mortgage, and through discussion they express to me the stress they’ve been feeling with either high debts or interest.  If you are in this situation, call me, there are so many solutions and ways that I can help alleviate that stress and come up with a game plan.  I’m here to help, contact me anytime at 604-729-7940.  

Joint Tenants vs. Tenants-in-Common-What’s the Difference?

General Trish Pigott 13 Mar

Most people know who’s on title to the property but they rarely know how the ownership is registered and what rights people have with their portion of the property.  This is important to know in the event that somone on title dies.  Depending on how you regsiter your property at the land titles office will determine who owns the property in event that someone dies.

When a property is held in joint tenancy, the situation is what I refer to as “the last man standing”. When one joint tenant dies, the entire property belongs to the remaining, surviving joint tenant(s). Whoever is the last joint tenant to die owns the property. Only that last person can use his or her Will to give the property to someone else.  This is most common for married or common law couples. 

Tenants-in-common is a different story. In this arrangement, each person owns a half, or third, or some other portion that belongs only to them. They can leave their share to someone in their Will or sell it (never mind the logistical problems of trying to sell one third of a house).  This is common when it’s business partners, family or friends. 

Revised CMHC Mortgage Insurance Premiums Effective May 1, 2014

General Trish Pigott 13 Mar

Wondering how you will be affected by the upcoming changes to CMHC mortgage insurance premiums?  Below is the grid outlining the increases.  Don’t worry, it won’t have a huge effect, on a $250,000 mortgage, you would be looking at about an increase in payment by about $5 per month. 

Call me directly if you want me to work out the exact effect it will have on your next mortgage.  I can be reached anytime at 604-729-7940.

http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_023.cfm

Self Employed Documents Needed For A Mortgage

General Trish Pigott 12 Mar

If you are self employed and needing a mortgage, get the following documents prepared:

Most recent Notice of Assessment

If there was a balance owing, those taxes must be paid so ensure you have confirmation of that

Confirmation of being self employed for the past two years;

Sole Proprietor:

2 years T1 Genereals (full copy) including statement of business activities

Currnet business bank statements

Curent business license

Incorporated:

Articles of Incorporation

Last 2 years accountant prepared Financial Statements

If you have been self employed for less than 2 years, there are options for that as well.  The best thing to do is to contact me directly for advice on where you fit into the mortgage qualification process for Self Employed individuals.  Contact me anytime at 604-729-7940.

True or False – 6 Mortgage Misconceptions

General Trish Pigott 10 Mar

Misconception No. 1: Your interest rate reflects the true cost of your mortgage.

Your annual percentage rate (APR) is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including mortgage default insurance and lender fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when signing your mortgage approval, have a look at your APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.

Misconception No. 2: Mortgage rates are only released once per day.

Mortgage rates for all types of mortgages can change frequently, sometimes dramatically, throughout the day. Because of the rapid changes in mortgage rates and a lender’s ability to control what is offered, this is why it’s important to work with an experienced broker that has access to top lenders rate discounts.

Misconception No. 3: I must get my mortgage through the same lender I was pre-approved with.

A pre-approval is a conditional agreement that estimates the size of the home loan a lender would fund for you. It typically involves income verification and a credit check. However, you are under no obligation to proceed with the lender that gave you the pre-approval. For most of my clients, we can often have more than one pre-approval in place for you so you are protected if rates drop with another lender.

Misconception No. 4: You will almost always get the best mortgage interest rates at the bank where you do your everday banking.

While some banks do give their customers discounts, it’s unlikely your bank will offer the best interest rate available simply because you bank there. To get a competitive mortgage rate, work with a mortgage broker you trust so they can shop all lenders on your behalf and compare not only rates but terms as well.

Misconception No. 5: When taking out a mortgage with your spouse, lenders will look at each of your credit reports equally when determining the interest rate you qualify for.

When applying jointly for a mortgage, lenders will review each of your credit reports most commonly with Equifax and Trans Union. Each lender views credit differently, some will look at the primary applicants score more than the co-applicant and others have an average scoring system.  I will know immediately by looking at your credit score and report which lender will be the best fit.  Sometimes this can determine the best choice.

Misconception No. 6: You cannot get a mortgage with less than a 5 percent down payment.

It is a common misconception that you need to put down 10 percent, 15 percent or even 20 percent on a home, especially in light of the recent housing crash. But with as little as 5 percent down, you can often can be approved for a mortgage and pay mortgage default insurance in lieu of a higher down payment.  This premium gets added on to your mortgage amount.  In order to avoid it all together, you need 20% down.  With some banks, you can even borrow the down payment. 

When in doubt, call with any questions, I’m here to help! 

Trish Pigott

604-729-7940

Bank of Canada left rates unchanged yesterday

General Trish Pigott 6 Mar

Great news for variable rate mortgage holders.  BoC announced yesterday that they would once again leave rates unchanged.  The result is no changes to the Prime rate which directly affects variable rate mortgage holders.  So looking at all indicators and statements made by the bank yesterday, there’s no danger of variable rate hikes in the near future. So, for variable and adjustable rate mortgage holders, there remains little reason to lock in.

Time to start blogging….

General Trish Pigott 6 Mar

More and more I realize how so much information regarding mortgages never gets to the consumer.  I’m going to start blogging some mortgage information that will help people understand the process of getting a mortgage in today’s world.  Many are still under the impression it’s the same getting a mortgage now than it was 5 years ago.   Stay tuned for regular updates and please share and spread the word to help people stay up to date.