This time of year always brings questions about property taxes.  Most people have received notices at this point and here are a couple reminders:

If you live in your property, you need to claim the Home Owners Grant.  Usually column B on your notice.  You can often claim the grant online on your cities website or you can do it at city hall. 

If you do not claim the grant, you will receive a bill in August for the $570 due for not claiming it. 

If your lender collects taxes for you, they will pay your taxes automatically for you and you don’t need to do anything to prompt them.  You will receive a notice from your bank in August confirming what they paid on your behalf and let you know if that is any sort of adjustment made to your regular tax payment. 

If you don’t have your lender or the city collect your taxes monthly, then you will need to pay your property taxes by July 2 of this year and that can be done via online banking, in branch with your bank or paid directly to city hall. 

If you have questions or would like more clarification around this, feel free to contact me anytime at 604-729-7940.

Canada’s major real estate boards reported May results last week. The news was generally good with sales and prices up but low inventories are still creating difficult conditions for buyers in Calgary and Toronto.

The Bank of Canada left its key overnight rate at 1% last week and its commentary contained no indication of rate increase in the short or medium term.

CMHC announced on Friday that it will no longer offer mortgage insurance to condominium developers and that it will align its low ratio insurance criteria with its transactional homeowner insurance.

Statistics Canada reported May employment data on Friday. Almost 29,000 jobs were added in Canada while in the US, more than 200,000 jobs were added for the fourth consecutive month.

The benchmark government of Canada five year bond yield ended the week at 1.58%, up from 1.53% the previous week.  

News provided by MCAP Mortgage News for the week of June 9/14.

Canada’s major real estate boards reported May results last week. The news was generally good with sales and prices up but low inventories are still creating difficult conditions for buyers in Calgary and Toronto.

The Bank of Canada left its key overnight rate at 1% last week and its commentary contained no indication of rate increase in the short or medium term.

CMHC announced on Friday that it will no longer offer mortgage insurance to condominium developers and that it will align its low ratio insurance criteria with its transactional homeowner insurance.

Statistics Canada reported May employment data on Friday. Almost 29,000 jobs were added in Canada while in the US, more than 200,000 jobs were added for the fourth consecutive month.

The benchmark government of Canada five year bond yield ended the week at 1.58%, up from 1.53% the previous week.  

News provided by MCAP Mortgage News for the week of June 9/14.

On Friday, we learned that Canada’s two private mortgage insurers, Genworth and Canada Guarantee, will not match the changes CMHC announced to its product line-up the week before. But they will each modify their Second Home products by restricting eligible properties to one unit.

The Vancouver and Calgary real estate boards reported April results last week. Volumes in Vancouver were well up from a year ago as conditions there approach a seller’s market. In Calgary, new listings grew enough to provide some relief to tight market conditions and prices were up about 10% from a year ago. 

According to US Department of Labour statistics released last week, The American economy increased its pace of job creation in April, pushing the unemployment rate to 6.3%, its lowest level in more than five years. More than 200,000 new jobs have been created in the US for three consecutive months. 

The benchmark government of Canada five year bond yield ended the week at 1.63%, down from 1.67% the previous week. A month ago, it was 1.75%.

News summary provided by MCAP. 

As always, contact me directly with any questions at 604-729-7940. 

Since most couples have a joint mortgage – one where both names are on the mortgage and title of the home – when separation or divorce proceedings get underway, many wonder what will happen with the home.

When the marriage comes to an end, there are two obvious options concerning the home: 1) sell the property and split the proceeds according to your agreement and go your separate ways; or 2) one person buys the other party out of the mortgage and the title of the property.

The first option is a straight-forward transaction where you put the house up for sale, sell and split the proceeds. The second option, however, is slightly more complicated.

The decision between the options is a personal one borne out of the specific circumstances of the parties involved. Perhaps there are young kids involved that need to stay in the house, the market is down and there will be a loss on the property that neither party can afford, one party can afford to buy the other party out, etc.

Once the decision is made, how do you go about buying the other person out of a mortgage?  Well, essentially, you’re refinancing your mortgage using a single income (the person who’s buying the other party out of the house) and qualification, versus the original purchase, which was based on joint income and qualification.

If you’re the one buying your partner out, the first step is to ensure that you can afford the mortgage payments.

This is imperative because the lender will ask for proof that you’re capable of covering the mortgage in order for you to apply on your own. In addition to covering the mortgage amount, you’ll have to come up with whatever dollar amount you have agreed on to buy the other partner out. This may come out of the equity in your home if it’s sufficient.

In essence, if you can afford the mortgage on your own, the most common means of buying out your partner post-separation and transferring title out of the joint name and into your name, is to refinance. I can help you through each step of this process. And although the maximum refinance on a home is 80% of the appraised value, given the unique circumstances surrounding separation, you can often refinance up to 95% of your home’s value.

If you’re not in a financial position to buy your ex-partner out of the house, and you agree to both stay on title and have payment arrangements, there’s one warning to be taken very seriously – just because one person is responsible for the payments (even with a court order), if the mortgage goes into default, both parties on the mortgage will be affected.

The most important piece of advice when dealing with a mortgage during a separation is to become informed. Know your options, talk to professionals about your options, and make an informed decision regarding your home and mortgage.

As always, if you have any questions about the information above or your mortgage in general, I’m here to help! I can be reached directly at 604-729-7940. 

If your Mortgage is up for renewal in the next few years, it’s never too early to prepare so that you are sure to get the lowest rate in the market at that time.  Your mortgage rate can be held for up to 120 days prior to the actual maturity date. 

Lenders will not usually waive penalties for early renewal and don’t be fooled if they do.  Chances are that you’re not getting the most competitive rate.  Some lenders also are known to offer clients “posted” rates versus the fully discounted rates that new clients may be getting.  So don’t be fooled and sign on the dotted line without  a second opinion. 

Alot of people will also ask if they can add extra money to their mortgage at renewal time and that usually depends solely on how much equity is in your home.  If you have more than 20% equity in your property then chances are you can.  If you don’t then you will be renewing for the exact mortgage balance you owe at time of renewal. 

Two Key Items to Look at when preparing for Renewal:

1.  Ensure your credit score is strong at renewal time.  Avoid any missed or late payments and do your best to keep your balances less than 75% of the limit amount. 

2.  Ensure your income is in line with what it needs to be to qualify.  If you are newly self employed, this could impact whether you will qualify or not and may be stuck with the same lender at a higher rate if you don’t. 

The best thing to do overall is to call me, I can tell you very quickly what needs to be done, what’s available and the best way to proceed.  And if staying with your existing lender is the best choice….then I will advise you to do that too.  Call me at 604-729-7940 if you need help. 

Find out by reading our latest newsletter. 

http://www.mynewsletterbuilder.com/email/newsletter/1412030725

Most Canadians do not fully understand how credit scores are generated yet they are the most important determining factor when being approved for a mortgage.  If you need to improve your credit score and make a quick impact, here are 5 ways to do it quickly and effectively. 

~Pay All Bills on Time – Late payments are a score killer.

~Keep balances less than 75% of the limit amount (Example; Limit is $1000, keep balance less than $750)

~Do not allow any account to go over limit.  This is a major score killer.

~Limit your enquiries to 5 per year.  Do not let anyone check your credit unless you are certain you need them to or will be buying from them.  

~Do not allow any bills to go to collections.  These kill your score.  And if you have some, pay them off or settle them so it’s noted on your credit report.

I have developed a credit repair program over the years for clients that has proven results.  If you would like more information, contact me directly. 

The first is that the 2.99% BMO five-year mortgage isn’t quite as good as it sounds.  The media blasted the low rate and it triggered home owners and buyers to jump at it.

BMO’s recent move to bring its rate below the psychologically significant 3% mark for fixed-rate five-year mortgages is being treated as a big deal because a similar move a year ago provoked then Finance Minister Jim Flaherty to admonish the bank. Joe Oliver, Flaherty’s successor, is taking a more laissez-faire attitude.

What BMO is offering until April 17th is a competitive rate in a mortgage with uncompetitive terms. Most important, you can’t break this mortgage before it comes up for renewal in five years unless you sell the property, refinance with BMO or do an early renewal into another BMO product. All the usual prepayment penalties would apply in these situations. 

Alot of other questions are coming in regarding the other low rates that have popped up on the rate sites all over the internet. 

Like any other bargain basement product, be aware that these products all come with limitations.  Some of them suit some home owners and some don’t.  The important thing to know is what to ask, as it’s not all about rate.  Contact me directly if you want the nitty gritty on these products. 

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.