Change of Address Checklist.

Home Tips Trish Pigott 22 Feb

So, you’re moving! Before you hunker down in your new home, there are a few things you will want to take care of regarding your new address.

Personal Contacts

First and foremost, if you haven’t yet, make sure to tell all your personal contacts about your address change, including:

  • Relatives
  • Friends
  • Employer
  • Schools, colleges, universities, daycares
  • Landlord (if necessary)
  • Clubs, associations and charities

Healthcare Professionals

For the purposes of keeping your health care records up to date, make sure to update your professional contacts:

  • Doctor(s)
  • Dentist
  • Veterinarian
  • Other healthcare specialist(s)

Creditors and Services

If you haven’t yet reached out to your services, you will want to do so as soon as possible for a smooth change of service from your existing address to your new address. These services include:

  • Phone, cable, internet, mobility company
  • Electricity / hydro
  • Natural gas
  • Heating fuel company (ask if you receive a deposit refund)
  • Financial institution
  • Credit card companies
  • Insurance companies / broker(s)
  • Lawyer / notary
  • Subscriptions (e.g., newspapers, books, music, loyalty programs)

Government Services

Lastly, it is vital to inform the federal and your provincial/territorial government if your address changes to ensure all your data and ID cards are updated:

  • Driver’s license
  • Health Card
  • Vehicle registration
  • Canada Post
  • Canada Revenue Agency
  • Canada Pension Plan / Quebec Pension Plan
  • Old Age Security
  • Employment Insurance

Friendly reminder that The Primex Team is always here for you! Our goal is to make the mortgage process as stress free as possible during the crazy times of moving. If you have any more questions, don’t hesitate to reach out!

 

Trish & The Primex Team

What to Know About Title Insurance.

General Trish Pigott 15 Feb

There are many insurance products when it comes to your home, but not all are created equal. One such insurance policy that potential homeowners may encounter is known as “title insurance”.

This particular insurance is designed to protect residential or commercial property owners and their lenders against losses relating to the property’s title or ownership. In fact, it is so important to lenders that every single lender in Canada requires you to purchase title insurance on their behalf. It is not a requirement to have coverage for yourself, but that doesn’t mean you should dismiss it outright.

While title insurance can protect you from existing liens on the property’s title, the most common benefit is protection against title fraud.

Title fraud typically involves someone using stolen personal information, or forged documents to transfer your home’s title to him or herself – without your knowledge. The fraudster then gets a mortgage on your home and disappears with the money. As the old adage goes: “It’s better to be safe than sorry” and the same goes for insurance.

Similar to default insurance, title insurance is charged as a one-time fee or a premium with the cost based on the value of your property. This insurance typically runs around $400 for the lender and $250 for the individual. It can be purchased through your lawyer or title insurance company, such as First Canadian Title (FCT).

If you are wanting to know more about title insurance, or confirm that you (and your home) are properly protected, don’t hesitate to reach out to us at Primex Mortgages for a mortgage review!

Trish & The Primex Team 

Understanding your Credit Score.

General Trish Pigott 8 Feb

One of the important factors in home ownership is understanding things like your credit score.  Some people don’t pay much attention to this metric until they begin the mortgage discussion! However, you will find that your credit score is one of the most important factors when it comes to qualifying for a mortgage at the best rate – and with the most purchasing power.

When it comes to any kind of score, higher is usually better. Same goes for your credit score. A score of 300 to 579 is considered poor, 580 to 669 is fair, 670 to 739 is good, 740 to 799 is very good, and 800 to 850 is excellent.

Credit scores are calculated based on a few factors such as your payment history, your total available credit vs amount of credit used, types of credit accounts in your name, the length of your credit history, and the number of requests for credit you’ve made.

Whether you qualify for a mortgage through a bank, credit union or other financial institution, you should be aiming for a credit score of 680 for at least one borrower (or guarantor), especially if you are putting under 20% down. If you are able to make a larger down payment of 20% or more, then a score of 680 is not required.

If you are not sure what your current credit score is, you can find out through Canada’s two credit-reporting agencies: Equifax Canada and TransUnion Canada. Bank apps usually have this feature to check your credit score in less than 30 seconds, free of charge. Once you have your credit score, always double check that there are no mistakes and ensure you dispute any problems if applicable.

What If I Don’t Meet the Minimum Credit Score?

If your credit score is accurate, but does not meet the minimum requirements, you will want to look at your current debt. Home ownership is an incredible investment, but it is also costly. Fortunately, there are a number of things you can do to improve your credit score as well as your future financial success, including:

  • Paying your bills in full and on time. If you cannot afford the full amount, try paying at least the minimum required as shown on your monthly statement.
  • Pay off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible. Work on paying the ones with the smallest amount owing first and work your way towards the larger amounts.
  • Stay within the limit on your credit cards and try to keep your balances as low as possible.
  • Reduce the number of credit card or loan applications you submit.

There is also the option of going with an Alternative Lender (or B Lender) if you are struggling with credit issues. The team at Primex can help review your credit score and provide you with strategic options for your mortgage needs. We can also look into consolidating your debt into your mortgage to make it easier for you, in one simple payment. This can help pay off debts faster.

Contact us today to chat about your credit score concerns when it comes to your mortgage!

Trish & The Primex Team 

5 House Hunting Mistakes to Avoid.

General Trish Pigott 1 Feb

Buying a home is one of the largest investments you will ever make! In order to make your home hunting experience the best it can be, there are a few common mistakes to avoid and be aware of before you start your journey:

  1. Not Getting Pre-Approved: One of the biggest mistakes when it comes to the home-buying process is not getting pre-approved prior to starting your search. The most important aspect of buying a home is the mortgage application and approval process. Getting pre-approved determines the home price that fits your budget as the mortgage process requires submission and verification of your financial history. Not only does it make the home buying process easier, but you can also lock in the rate that you’d like for 120 days while you search for your next home. Getting pre-approved also shows that you are a serious buyer.
  2. Not Setting or Following a Predetermined Budget: Another mistake that people make when home-hunting is not setting, or following a predetermined budget. It can be tempting to start looking at the top of your budget, or even slightly over, but when you consider closing costs and the long-term financial responsibility of home ownership, it is best to avoid maxing yourself out. Talking with your mortgage broker to determine your financial situation and the best options for you now, and in the future as well as getting pre-approved is the best way to understand your budget.
  3. Not Hiring a Real Estate Agent: Your mortgage broker and your real estate agent are two of the most important members of your home buying team! In today’s competitive real estate market, it can be very difficult to acquire property without the help of a Realtor. Which is why it’s important to hire the right real estate agent. One reason is that Realtor’s can provide access to properties that never even make it to the MLS website, or that come onto the market before a listing is even signed. Most importantly though, a Realtor can navigate you to be successful in your journey to purchase a home by being there for you from the first viewing to having your offer accepted.
  4. Focusing Too Much on Aesthetics: We understand that bad interior design can really affect the perception of the home, you don’t want to be blindsided by it. At the end of the day, aesthetics can always be updated! Giving up the perfect price or location or size for a few aesthetic details (such as paint colour, flooring, outdated appliances or light fixtures) is one of the biggest mistakes people make! Most homes have incredible bones that only need some minor modifications to become your perfect space.
  5. Not Thinking Ahead: What you want and need in a house today, could be very different from what you want and need in a house in a few years time. It is important to be able to look ahead – are you planning on having children? Are your parents getting older and in need of a retirement space? These are things that are good to take into consideration when buying a new home. Buying a home isn’t a permanent decision as you can always sell your home later on if it doesn’t work for you in the future. But it is almost always easier to plan ahead so you can grow with—and not out of—your home.

If you are looking to purchase a new home, your first space, downsize or a step-up from your current living situation, we would be happy to help! Please don’t hesitate to contact us to discuss your mortgage options, get pre-approved and talk about everything you need to know before you get started!

Trish & The Primex Team 

The Bank of Canada Announcement & What This Means for You.

General Trish Pigott 25 Jan

The Bank of Canada was expected to raise rates another .25% higher, and that is exactly what was announced this morning. The policy rate is now 4.50%, the highest rate since 2007. Which is the bank’s 8th consecutive rate hike in the past year, but the smallest one yet.

Some have predicted that for the year of 2023 the rates will continue to trend upward, but the Bank of Canada stated today that this could be the peak for this current tightening cycle as inflation is expected to “decline significantly” in the upcoming months. For Canadians, this means an extra $15.67 added to your mortgage payment for every $100,000 in mortgage. 

“We’ve raised rates rapidly, and now it’s time to pause and assess whether monetary policy is sufficiently restrictive to bring inflation back to its two per cent target,” Bank of Canada Governor Tiff Macklem told reporters after the rate announcement.

As of this January, there is an agreement between the big banks that in 2023 a recession will happen in Canada. Although economists are saying that this recession would likely be mild to moderate in comparison to previous recessions.

The banks have a real-time view of cardholder spending data and are well-positioned to report on economic trends sooner, and what we are learning is that spending is decreasing significantly due to higher costs throughout the economy and with higher interest rate expenses, we are at the point of an overall economic slowdown. But with lower spending comes a slowing economy and lower inflation, and eventually, lower mortgage interest rates.

At this time of higher rates, there is no good low rate to lock into. With this said, a calculated approach should be considered to position yourself to take advantage of lower rates once they begin to fall. Therefore a shorter term on your mortgage such as a 3 year fixed rate, could position you better to renew into a lower fixed rate in 3 years’ time. The typical 5 year term may be too long for a higher rate.

But for those with a higher tolerance to risk, a variable rate may be worth considering. Given over 40 years of rate data, as seen in a York University study on Canadian interest rates, the variable rate is likely to lead to more significant savings over years. As soon as the rate begins to fall, as predicted to in late 2023 or early 2024, the variable rate holder will benefit immediately. This ‘lower rate sooner’ potential could lead to more savings than locking in even a shorter term fixed rate. But with variable rates higher currently and another 0.25% increase announced today, it will take a strong willed person in 2023 to realize these savings over the next few years.

Have any more questions about what this means for you and your family? Don’t hesitate to reach out to us at Primex Mortgages, we would be more than happy to chat!

Trish & The Primex Team

When Higher Rates can be Better.

General Trish Pigott 18 Jan

When it comes to getting a mortgage, there is a common misperception that a low rate is the most important factor. However, while your rate does matter for your mortgage, it is not the only component to consider.

If you’re looking to get a mortgage, these are some other important factors that you should look at beyond simply the interest rate:

Term: The length of time that the options and interest rate you choose are in effect. A shorter term, which is typically 5 years, allows you to make changes to your mortgage sooner, without penalties.

Amortization: The length of time you agree to take to pay off your mortgage, usually 25 years, this determines how the interest is amortized over time.

Payment Schedule: How often you make your mortgage payments. It can be weekly, every two weeks or once a month and will affect your monthly cash flow differently depending on your choice.

Portability: An option that lets you transfer or switch your mortgage to another home with little or no penalty when you sell your existing home. Mortgage loan insurance can also be transferred to the new home.

Pre-Payment Options: The ability to make extra payments, increase your payments or pay off your mortgage early without incurring a penalty.

Penalty Calculations: Where variable rates typically charge three-months interest, a fixed rate mortgage uses an Interest Rate Differential (IRD) calculation. This can add up quite quickly! In fact, in some cases, penalties for breaking a fixed mortgage can sometimes be two or three times higher than that of a variable-rate.

Variable versus Fixed: For fixed-rate mortgages, the interest rate does not fluctuate over time. For variable-rate mortgages the interest rate fluctuates with market rates, which can be great when rates drop but not so great when rates are rising.

Open versus Closed: An open mortgage is similar to pre-payment options, allowing you to pay off your mortgage at any time with no penalties. A closed mortgage, on the other hand, offers limited to no options to pay off your interest in full despite often having lower interest rates.

When considering your mortgage the above components all have a part to play, as well as your home ownership experience.

It is easy to think that a low-interest rate is good enough, sign on the dotted line… but you may be overlooking important options such as portability, which allows you to switch your mortgage to another property should you choose to move. Or pre-payment options, which give you the choice to make additional payments to your mortgage. Without looking deeper at your mortgage, you may find yourself being forced to pay penalties in the future because you wanted to make a payment or a change to your mortgage structure. In some cases, agreeing to a higher rate to have more options and flexibility is better in the long run than the savings received from a lower rate.

Before agreeing to any mortgage it is best to talk to us, your mortgage experts, about the contract, as well as your future goals and any potential concerns you have to ensure that you get the best mortgage product for you!

Contact Primex Mortgages today to chat about all the options available for your mortgage!

Trish & The Primex team

10 Money Saving Tips.

General Trish Pigott 11 Jan

It’s the new year, and it’s time for some new goals. Whether your goals are fitness related, incorporating something new into your routine, or reminding yourself to take a few minutes to breathe, it’s never a bad time to include new financial goals. When it comes to saving money, there are a lot of little things you can do that add up to make a big difference! Here are 10 of our favourite money-saving tips:

  1. Automatic savings are one of the most effective ways to save because you can’t spend what you can’t access! Talk to your bank to transfer a certain amount from your paycheck each pay period into an RRSP or savings account (or both) or set up automatic transfers in your banking account to coincide with your payday.
  2. Consolidating debt will result in a single monthly payment and lower interest costs! Many people don’t realize just how much money they are wasting on interest each month, especially if you have multiple loans or credit cards. Consolidating debt can help you gain control and maximize spend on the principal amounts to pay off loans faster.
  3. Budget with cash if you have trouble with overspending or find it too easy to use your card (especially with Apple Pay these days). After your bills are paid, take out the remaining cash (spending money) and only use that. Once the cash is gone, you’re out of money until next payday! Having physical cash in hand can also help you think twice when making purchases.
  4. Buying in bulk is a great way to save a bit here and a bit there when doing your regular grocery shop or purchasing other items. Know you’ll need more? Stock up at once for bulk savings, which will help you in the long run!
  5. Before Buying there are two things you should always do. The first is to wait at least 24 hours and the second is to shop around! If you still want to buy something the next day, make sure you get the best price available!
  6. Plan Your Meals.Most of us don’t have time to make breakfast (let alone lunch!) before we fly out the door for work. But what if I told you that getting up an hour earlier could save you over $100 a week!? Just think about how much you spend going out for breakfast AND lunch each day? Groceries are a lot cheaper and you can even prepare a few days worth of meals on your day off while you get ready for the week. Even doubling the amount of food you prepare for dinner every night and save some for the next day can help.
  7. Think in Hours versus Dollars every time you are looking to make a purchase, especially large ones to help you understand the TIME value of money. A new $24 t-shirt = 1 hour of work. A brand-new mattress = 41.67 hours of work. Understanding the time that went into earning money for a purchase can help with reconsidering frivolous items, or encourage you to look for the best deal on necessary products.
  8. Utility Savings can help you save each month! Don’t blast your A/C with all the doors in your house open, don’t pump the heat without sealing cracks and consider things like installing water-saving toilets and running cold-water wash cycles to save energy (and money!) every day.
  9. Master DIY – While sometimes you can spend $120 to make a $20 item yourself, there are some things that do benefit from DIY, such installing dimmer switches, that can help save you money in the long run.
  10. Save Windfalls and Tax Refunds for a rainy day. A good rule of thumb is to put 50% of bonuses, tax refunds or other windfalls into your savings account and put the rest against loans owing. While you might want to go on a shopping spree or plan a vacation, paying off your debt NOW will free

The best way our clients have improved their cash flow and save money is to consolidate debts into one low payment.  Contact us today and we can help you start this process.  We are experts at this and would love to help.

Trish & The Primex team 

Move Your Mortgage ~ Earn Cash!

General Trish Pigott 22 Nov

If you are looking to move your mortgage to either lower your payment or consolidate debt, take advantage of our Move Your Mortgage campaign and earn up to $1500 Cash Back!  Let us shop all the lenders in the market and help you decide if Moving Your Mortgage is the best option for you.

*Minimum Mortgage Amount is $300,000
*Mortgage must fund by March 31, 2022
*Applies to mortgage terms 3,4 or 5 year fixed rate and 5 year variable rate
*Cash back is paid within 30 days of mortgage completing
*Applies to new applications as of November 23, 2022

$300,000 – $500,000 = $500 Cash back
$500,001 – $750,000 = $750 Cash back
$750,001 – $1,000,000 = $1000 Cash back
$1,000,001 + = $1500 Cash back

On Approved Credit and Subject to Lender Approval

Second Mortgage or Refinance?

Mortgage Tips Trish Pigott 29 Sep

A second mortgage may be something to consider if you’ve built equity in your property and need access to a loan. Consider using this equity for refinancing, renovations, or debt consolidation.

What is a Second Mortgage?

A secondary loan taken out on a property for which you already have a mortgage. This is not the same as purchasing another property with a new mortgage. It’s very different from a traditional mortgage because you are using your existing home equity to qualify. It’s important to note that it still comes with its own interest rate, monthly payments, terms, closing costs, etc.

Second Mortgage or Refinance?

Both refinancing and second mortgages take advantage of existing home equity – So what is the difference? Refinancing is typically done when you’re at the end of your current mortgage term to avoid any penalties. The purpose is to take advantage of a lower interest rate, change your mortgage terms, or borrow against your home equity. Second mortgages are taken when you borrow a lump sum of money against the equity in your home and use it for whatever you see fit.

What Are the Advantages?

There are several advantages when it comes to taking out a second mortgage, including:

  • Have access to a large loan sum (in some cases up to 90% of your home equity, which is more than you can typically borrow on other traditional loans)
  • Better interest rate than a credit card
  • Use the money however you see fit, without any caveats

What Are the Disadvantages?

As always, when it comes to taking out an additional loan, there are a couple things to consider:

  • Interest rates tend to be higher
  • Additional financial pressure from carrying a second loan and another set of monthly bills

Before looking into any additional loans, be sure to reach out and speak with us. It’s always a good idea to review your current financial situation and determine if this is the best solution before proceeding.

Insurance 101

General Trish Pigott 22 Sep

Not all insurance products are created equal. One of the most common mistakes people make is assuming they have coverage when they don’t. While you may have one kind of insurance, it won’t cover everything. It is important to understand all of the different products to ensure you are properly covered. To help you have a better understanding, there are four main options below.

Default Insurance

This is mandatory for home purchases when the buyer puts less than 20% down. In fact, this is how lenders accept lower down payments, such as 5%. It actually helps buyers access comparable interest rates offered with larger down payments.

Default insurance typically requires a premium, which is based on the loan-to-value ratio (mortgage loan amount divided by the purchase price). This premium can be paid in a single lump sum, or it can be added to your monthly mortgage payments. In Canada, most homeowners know of the Canada Mortgage and Housing Corporation (CMHC), which is run by the federal government.  We also have two private companies, Sagen Financial and Canada Guaranty, who provide this insurance.

Home Insurance

Next, is another mandatory insurance option that MUST be in place before you close the mortgage. This type of insurance protects your home against things like fire damage, as well as the contents in your home. Flood and earthquake coverage can also be an option, but it is not always included. Depending on your location, protection from a natural disaster can be added as well. Please note that not all homes or properties are insurable, so you will want to review this sooner rather than later.

If you are insuring a condo or townhouse, the strata’s insurance will typically protect the building and common areas, but you are responsible for the inside of your unit, including your contents. You should also ensure your policy covers the difference in the strata’s deductible, should a claim arise.

Title Insurance

Another policy that potential homeowners may encounter is title insurance. Every single lender in Canada requires you to purchase title insurance on their behalf. You also have the option of purchasing this for yourself as a homeowner, to protect you from existing liens and fraud. Title fraud typically involves someone using stolen personal information, or forged documents, to transfer your home’s title to him or herself – without your knowledge.

Similar to default insurance, title insurance is charged as a one-time fee or a premium with the cost based on the value of your property.

Mortgage Protection Plan

Lastly, we have our mortgage protection plan coverage. This is an optional coverage, but one that is extremely important as it protects you and your family, should something happen. Think of it as a life and disability policy for your mortgage. For instance, if someone on the mortgage is no longer able to contribute due to disability or death, your mortgage payments will be covered.

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