The Power of Yes

 

One of the many wonderful things about being a mortgage broker is the ability to say yes to more people.   Whether you have great credit, bruised credit or hardly any credit, we have more options for our clients.  We deal with companies that specialize in helping those with challenged credit histories.  For people that have catastrophic credit histories, we do have access to funding through private lending.  This is not a solution for all people, but is a wonderful tool to use when it makes sense.

The fact of the matter is; every client is different.  Not everyone has great credit, a salaried position with a large company and a significant down payment.  That is why it so important to have options.  We work with several ‘A’ lenders that have strict guidelines for approval.  We work with ‘B’ lenders that are more flexible and finally, we work with private lenders that will lend money based on the equity in the property. 

The bottom line is that we have several options for almost everybody.  We love saying ‘yes!’  Here is a list of ways we can help you and the people that you know:

Purchases                        Refinances                      Homeowner Lines of Credit

New Builds                     Renewals                        Investment Properties

Relocations                     Pre-Approvals                Cottages and Secondary Properties

Land Purchases               Commercial                   Mixed Use Residential Buildings

Zero Down                      New to Canada              Divorce and Separation Buy Outs

We can help out with almost every real estate transaction.

If you or anyone else you know needs mortgage advice, please don’t hesitate to contact me. You can reach me at Andrew.young@bemortgagewise.ca.              

Thanks for dropping by An Awesome Approach to Mortgages.

"Andrew Young gets it done!"

The First Step

 

The first step

Is the first step a pre approval?  No.

Is the first step a rate quote?  No.

Is the first step giving advice?  No.

The first step is customer service.  The first step is treating you like a person, not a number, a paycheck or “just another customer.”  The first step is to treat you like a fellow human being.  We start by being polite, courteous and respectful of your time and your financial situation.

Smiles are usually free.  Unless someone is a miserable human being, then the smiles will be forced.  We will offer refreshments.  Sometimes there are brownies, but they usually don’t last very long.  We will often greet you with a handshake, but after an appointment, the ladies usually like to hug it out.

My job is to make people feel comfortable about the entire mortgage process.  From introduction to completion, I will answer any questions that you people have.  I will even return phone calls.  Even when my clients call me after hours, often times I will be able to answer their calls.  As a professional, the growth of my business relies on the referrals from the people that I help.  I will do everything in my power to create a positive and efficient experience for my clients and their loved ones.  Also, I will venture to save them time and money.  And if there are laughs had along the way, that’s good too.

Not only am I looking to develop a great relationship with my clients now; I am looking to become their mortgage professional for life. 

At Mortgage Wise, we are passionate about what we do.  We are full time, professional mortgage agents and brokers that are licensed and experienced to deliver the best service and advice for all of their your mortgage needs, and the generations to come.

Thank you once again for visiting an AWESOME approach to MORTGAGES.

Remember, there is no “I” in Mortgages!

If you have any questions, you can find me at Andrew.young@bemortgagewise.ca or phone me at 519-630-5905.  If you enjoy twitter, I’m @ayoungmortgages.

Pre Qualified or Pre Approved?

 

Pre Qualified or Pre Approved?

There is a difference.

Once you go down the road of home ownership, it is important to know the lingo.  You have probably heard that it is a good idea to get pre approved or pre qualified.  There is a fundamental difference between the two.

Pre Qualified – A mortgage professional (or a banker, tehe) will take down some information about your income versus your debt, do a calculation and give you a purchase price that they think you should stay under.  Presuming that they have some skill, experience and know-how, this could be helpful.

Pre Approved – A real mortgage professional will take your personal information such as your name, date of birth, address and social insurance number.  They will also collect some information about your income and the debts that you currently have.  At that point they will complete an application and send it off to a lender to get a formal pre approval. 

As you can see, the main difference is in the credit bureau and the adjudication process.  With a pre approval, you will have your deal pre-screened by an underwriter to reduce the chance of any possible hiccups going forward.  Please note that if you are putting down less than 20% then your application will still have to be approved by a default insurance company such as CMHC, Genworth or Canada Guaranty. 

In addition to the adjudication process, the pre approval can save a fixed rate for you for up to 120 days (for most lenders).  This can help hedge against rising interest rates.  As a note, you will be pre approved based on a 5yr fixed rate.  That rate is held for up to 120 days.  If the fixed rates go up, you still get to pay the lower rate.  If the rates go down, you get an opportunity to take advantage of the lower rates.  It is a win-win.

So if you are looking for your first house or thinking of moving, get pre approved.  You might just save yourself a lot of money.

Thanks again for visiting an AWESOME approach to MORTGAGES.  If you know of anyone who might find this interesting, please feel free to forward it on.  Knowledge is power. 

You can find me at Andrew.young@bemortgagewise.ca, @ayoungmortgages or by phone at 519-630-5905.

Fixed or variable?

 

Fixed or variable?

This is one of the most frequent questions I answer on a daily basis.  To be honest, it all depends on the client. Similar to investing, it depends on your risk threshold.  If you are the type of person who wants to know exactly what your payments are going to be for a fixed amount of time, obviously, you should go fixed.  If you are comfortable with knowing that your payments may go up or down throughout the term of your mortgage, go variable.  In the last 8 years that I have been in the mortgage industry, variable has been the way to go.  Except for a couple of months in 2012, the variable rate offerings have been lower than the fixed rates. 

Allow me to give you an up to date example of what rates are doing today:

Most lenders are offering 5 year fixed rates at 3.60%. (I can get you a better rate than average, of course).  The average variable rate mortgage rate is at prime (3.00%) minus 0.40% - 2.60%.  That is a difference of 1%. 

For this example we will use a mortgage of $200,000 with monthly payments and an amortization of 25 years.

5 year fixed rate payment is $ 1,009 / mth.

5 year variable rate payment is $ 905 / mth.

That is a difference of $ 104 / mth.  That may not seem like a lot, but if you compound the savings over 5 years (assuming the prime rate doesn’t go up) that is a potential savings of $ 6,240 in payments alone.  What about the interest savings?  In this example, you would save over $ 9,451 over the 5 year term by selecting the variable rate.

The average change in Prime Rate has been an increase or decrease of 0.25%.  On a $200,000 mortgage, if the interest rate increases 0.25%, the monthly payment on the variable rate will increase by $ 26. 

The best option is whatever allows you to sleep at night.  If you can manage and tolerate an increase in your mortgage payments in an attempt to save some money, variable is the right option for you.  If you need to know what your payments are going to be, then don’t sweat it, fixed is optimal for you.  If you like the security and want to pay down your mortgage a little bit faster and reduce your borrowing costs, then make extra payments on your mortgage.  Every little bit helps. 

Thanks for visiting an AWESOME approach to MORTGAGES.  If you have any further questions or if you need some awesome advice, never hesitate to contact me.  You can reach me at Andrew.young@bemortgagewise.ca or at 519.630.5905.

Where are you getting your mortgage advice?

 

Where are you getting your mortgage advice?

When it comes to making decisions about lender, term, amortization, rate and what kind of mortgage is best for your situation; who is advising you?  Where are you getting your advice?  Who are you getting your advice from?

There are so many sources of information that are readily available at the push of a button.  When it comes to making important decisions about your financial future, you deserve the best advice.  You can find advice from websites, friends, family and other organizations. 

Specifically, when it comes to your mortgage, who can you trust?  Who is looking out for your best interest?

Many institutions make a significant profit from lending money to people.  Whether it is credit card, automobile, student loans, lines of credit, RSP loans or mortgages, many institutions want you to be in debt.  That is the very nature of their business.  As a mortgage agent, my view is very different.  Our goal is to ensure you have a great experience so that you tell everyone you know about us.  That is how we grow our business.   My goal is to deliver the best advice and product to you, not to keep in you in debt to reach targets or maximize the profit for the organization I work for. 

Some things to consider when choosing who you are going to accept advice from about one of the largest investments you will make in your life:

What are their qualifications? 

Are they licensed to give you mortgage advice?

How much experience do they have?

Have they ever had a mortgage or purchased a home?

Do they have access to many types of mortgages and mortgage solutions?

Over the last 8 years I have worked in the mortgage industry.  I started my career as a Mortgage Specialist with a large Canadian bank. After 2 and-a-half years I moved to another bank thinking that they would have better solutions for my friends, family, neighbours and clients.  After finding much success, I was introduced to an influential Mortgage Broker in London.  After many conversations I realized that becoming a Mortgage Agent gave me the ability to deliver the best options for the clients that I had already had helped and any client that I would help in the future.  After 8 years and after closing several hundred mortgages, I can confidently say that I can deliver you the best advice, products and service available in the industry. 

Experience is key when giving advice.  On top of helping hundreds of people across the country with the purchase of their homes, renewals, cottages, investment properties, stores, restructuring their debt, borrowing to invest, saving them from bankruptcy, I have also purchased homes.  I have bought and sold houses, so I know the processes and what to expect.

At Mortgage Wise, we have access to many lenders that provide multiple solutions that can be used to create a customized solution for any of your mortgage lending needs.

Thanks again for visiting an AWESOME approach to MORTGAGES.

Here’s how to find me:

@ayoungmortgages

519-630-5905

Andrew.young@bemortgagewise.ca

Purchasing in the country?

 

Thinking about a move to the country?  Looking for more land?

There are definitely more things to consider when purchasing a property in any rural area; particularly when it comes to financing an agriculturally zoned property.  On top of the regular items on your checklist, you will need to consider the following:

Zoning – Which “A” zoning

Similar to residential zoning, different properties are zoned according to their activity.  Different zonings may require a different amount of down payment and structuring.

Hobby farm or livestock - Racetrack or sporting

The majority of Schedule 1 banks and most monoline lenders do not like properties labeled as a hobby farm, especially if the property houses livestock or a racetrack.  There are a few specialized lending companies that deal strictly with agricultural purchases to help you with these types of properties.

Sewer system or septic

With most purchases of properties with septic systems; the lenders will be looking for septic certificates / inspections.  They will also look for well certificates as well.

Acreage / size of land

The size of the property is of utmost importance.  In recent years, most lenders have restructured their lending policies on properties over 10 acres. If you have less than 20% down payment on a property, you will need the property to be insured by CMHC or Genworth.  The insurance companies will only give value to the house, plus 10 acres.  This is paramount when planning a purchase.  The more acreage, the more down payment may be needed.

Out buildings

Most people would think that out buildings including shops, sheds and pool houses would add to the value of the property.  They actually do the opposite.  When valuating properties, appraisers will value the house, the acreage and determine the value of the outbuildings.  Once they determine the value of the out buildings, they usually reduce the overall value of the property.  The reason for this is resale value.  Not everyone is looking for a property with a huge shop or multiple buildings or racetrack. 

The purpose of this blog is not to dissuade you from purchasing outside of the city, but there are different lending rules and guidelines that you need to be cognizant of. 

The bottom line; consult a professional before you make a purchase.  We can help guide you through the guidelines of any residential, agricultural or commercial purchase.

Be Wise, call the Mortgage Guys!

Please feel free to contact me at 519-630-5905 or at Andrew.young@bemortgagewise.ca.

Thank you for visiting an AWESOME approach to MORTGAGES.

How I can help...

 

How I can help…

People often ask me about the different ways I can help their friends and families.  As a mortgage professional, I get a number of calls from past clients, realtors, friends and families about how I can help their friends / clients / family members, etc. 

People often ask me “Do you do mortgages for;” followed by an example of the potential clients situation, credit experience and employment.  Based on the information I receive, I match them up with the best products and companies to match their needs and situation for the present and the future.

In order to best help anyone you know, I have created a list of the different ways I can help the people you may know.  Here is a list of the different types of mortgage products and solutions I offer:

Purchases across Canada           

Rental and Investment properties

Renewals

Refinances

New Builds

Cottages and vacation properties

New to Canada program

Self - Employed

Homeowner lines of credit

Private mortgages

“B” Deals

Zero-down mortgages

Commercial properties

A lot of these deals can be combined to create a customized financing solution for almost anyone.

For any questions about the different types of products and solutions we offer, please contact me at Andrew.young@bemortgagewise.ca or at 519.630.5905.

Thanks for visiting an AWESOME approach to mortgages.

 

Price or product?  That is the question.

Over the last number of years the focus on mortgages has been rate.  Who is offering the most competitive rate?  A lot of people have overlooked the products themselves in search of the best rate.  There is a lot more to packaging a mortgage than simply rate.

Some things to consider when discussing the best mortgage product for your particular situation are:

1. How long will you be staying in the property?

If you intend on moving in certain length of time, matching the term may be the best option for you.

2.  Do you intend on making extra payments on the mortgage? If so, how many extra    payments will you be making and how much extra will you be paying off per year?

If you are in a position to make extra payments on your mortgage, the prepayment options on your mortgage should be paramount to you.  Prepayment privileges change from lender to lender.  In addition to prepayment, the type of mortgage you choose will affect your ability to repay your mortgage faster.

3.  Are you comfortable with a fluctuating payment to potentially maximize interest rate savings?

A variable rate mortgage is sometimes beneficial in certain rate environments.  There is a risk that your payments could increase, but you may be able to save money compared to other fixed rate products.

4.  Are you looking to purchase additional properties in the future?  Will you require access to the equity in your home to do so?

If you are looking to purchase additional properties and you will need to access the equity in your home, a long-term fixed rate may present an obstacle.   The term and rate that you choose will affect the penalty to break or add to the mortgage.

These are only a few items to consider when structuring your mortgage.  There are many different terms and rates to choose from.  Matching the best product at the best rate is a job left to an experienced mortgage agent.

how to choose the RIGHT mortgage broker.

how to choose the RIGHT mortgage broker.

We already know the answer to this question.  It’s me.  Why? What’s the difference?

The majority of homebuyers start off by speaking with their banks when shopping for a mortgage.  Not a bad place to start.   They are the people that handle your day - to - day transactions, Visa’s, lines of credit, TFSA’s, safety deposit boxes, etc.   There in lies the problem.  Most of the bankers out there are “Jacks of all trades,” and masters of none.   As a matter of fact, they do not require a license to give advice to people on what is generally the largest purchase of their lives.  Coming from the Banking world, I experienced this first hand.  As a broker, we do need to be licensed.  We also need to renew our professional licenses and memberships annually.

EXPERTISE

You don’t go to a mechanic for a nice steak, and you don’t ask your butcher to change your alternator.  So why would you trust your mortgage to an institution that has limited options?  Choice is power.

EXPERIENCE

As a broker, we offer you options.  Our responsibility is to look at your entire financial situation and match you with the best lender.  We don’t try to put a square peg in a round hole.  Before I became a mortgage specialist with the banks, I was an insurance and investment broker.  I have the knowledge and experience to deliver the best advice for now and the future.

OPTIONS

We have access to more than 20 lenders including many of the Canadian Chartered Banks.  We have access to Credit Unions and companies called Mortgage Backed Security companies.  MBS’ specialize in mortgages and some offer Homeowner Lines of Credit. 

SAVINGS

How do we get great rates?  Easy.  The lenders do not pay for our location or expenses. They don’t pay us a salary.  Unlike the bank, we do not create overhead costs for the banks and lending institutions.  They reward us with great rates.  We often get rate specials that banks do not have access to.

PERSONALITY

Why not have a great time while getting a great mortgage?  Somehow I get invited to a lot of my client’s weddings…. Weird. Awesome.

CONVENIENCE

We have a convenient location or I can come to you.  We work around your schedule. You are not limited to the operating hours of the bank.

ACCESIBILITY

Cell – 519.630.5905

Office – 519.433.5013

Fax – 519.433.0402

Email – Andrew.young@bemortgagewise.ca

Twitter - @Ayoungmortgages

Website – www.mortgagewisefinancial.com

In person – 259 Wellington Rd. London, Ontario N6C 4N7

Facebook – You can find me

COMMUNITY FOCUS

For every deal funded, I make a donation to the non-profit organization of your choice.  This directly affects your community and perhaps the people you care about the most.

When I am not working on getting people the best mortgages possible, I serve on the program board and centre board for Merrymount Children’s centre.  I have recently volunteered my time to the planning committee for the Comedy Night in support of Merrymount Children’s Centre coming up on November 7^th, 2013.

So if you appreciate EXPERTISE.

Looking for someone with extensive EXPERIENCE.

Wishing to explore your OPTIONS.

Enjoy SAVING your money.

Understand the value of CONVENIENCE.

Admire ACCESIBILITY.

Appreciate someone that gives back to the COMMUNITY.

You don’t need to look any further. 

Thank you for your continued support through your referrals.

Thanks for visiting an AWESOME approach to MORTGAGES.

For the younger buyer.....How to get prepared for your first home!

 

"Hey Andrew Young, I’m younger and I want to be prepared to buy a house in a couple of years, what do I need to do?"

There are usually four major components to getting you approved for a mortgage:

1. Employment - We need to prove that you have a source of regular income.  In general, after you start your new job, you will need to be employed by the same company for a minimum of 3 months or until you pass probation. 

2. Down payment - We need to see how much down payment you have and prove the source of the funds.  The minimum down payment amount is 5% of the purchase price of the home.  For down payment proof, we will need 90 days record of your bank account, RSP’s or TFSA.  Also, you can obtain your down payment as a non-repayable gift from a direct family member. 

3. Credit - We need to prove your identity and show that you repay your debts in a timely fashion.  We do this by collecting your name, address and Social Insurance Number.  We access your credit bureau via Equifax or Transunion.  These companies track your payments, balances and repayment history.

4. Affordability – We perform a calculation to discover your Total Debt Service Ratio (TDSR).  It’s a calculation that takes your monthly ‘must pay’ items (credit card, line of credit, car loan or student loan) and we divide that by your gross monthly income (income before taxes).  From that we have a ratio that indicates how much of a mortgage payment you can afford.

Here are some tips for you…

Manage your credit

Do yourself a favor - if you borrow it - pay it back!  Credit cards debt is not free money.  Pay more than the minimum balance on your credit card debt every month or it will cost you a fortune and take you many years to pay it back. 

Keep the correspondence from your student loan provider(s).  There are often mistakes on credit bureaus that can be cleared up with the proper paperwork. 

Don’t take on more than 2 credit cards.  It is redundant to have more than 2.  Beware of the ‘in-store’ credit cards.  If you don’t pay the balance off monthly, you could be charged 18-28% interest on the balance.  The less debt you have, the higher the mortgage amount you could be approved for.

Save your money

Set up an account (High interest savings or TFSA) and make regular contributions.  It may be easier to setup a regular deposit amount through your bank.  It is best to use the power of interest to help you save for a house.  You can use the Home Buyers Plan (HBP) where you can contribute into an RSP and use that money as down payment.  You do have to pay that money back into your RSP over a 15 year period.  You get a 2 year grace period where you don’t have to make payments.

In closing;

1. Pay your debt on time and often
2. Keep records of the debts you incur
3. Don’t take on more credit than you truly need
4. Set up a savings account and make regular deposits

If you follow these simple steps, you will be in great financial shape to buy a house.

Thanks for visiting an AWESOME approach to MORTGAGES. 

If you have any further questions, please feel free to contact me at:

Andrew.young@bemortgagewise.ca or directly at 519-630-5905.

Amazing in 2013 - Broker with a Difference

You wanna know what's new for 2013?  Well here's a sneak peak....

1.  New Lenders offering Greater Flexibility
2.  Satisfaction Guarantee
3.  Twitter - @Ayoungmortgages
4.  Network of Real Estate and Financial Professionals
5.  Donations made for every deal funded

These are just a few of the new ventures for 2013.  Looking forward to becoming your mortgage professional in 2013! 

Is it a good time to buy a house?

Yes!


Two Reasons...

1.  Buyer's market - better deals
2.  Low interest rates

Put those 2 together, you get a great deal on a house with a low interest rate!!!

Any other questions?

Thanks for visiting!

What's up with appraisals?

 

What’s up with Appraisals?

Let me begin with saying I am not an appraiser.  After many years in the real estate business as a Mortgage Broker and a House buyer, I have developed an understanding of the valuation of Real Estate.

Over the last 3 years, it has become increasingly difficult to anticipate the value of homes.  This has hindered refinances, debt consolidations and sometimes purchases. 

Values will change with the Real Estate market and with the economy.  As the banks tighten up their lending guidelines, more often than not, real estate values drop accordingly.  It is common to find that values drop in a “slow economy” like we are experiencing currently. 

How do appraisers establish a value for your house?  Glad you asked.

Age of the home

Condition of the home

Layout

Size (square footage)

Garage size (how many cars / size)

Land size (frontage / depth)

Recent sales of comparable homes in similar neighborhoods

Appraisers use their knowledge of neighborhoods and resale

Many times, people mistake the value of their home as what they could sell it for on the market.  The real estate sales market is not always indicative of the real value of the home.  For instance, just because the house down the street went multiple sale and went $25k over asking price does not make your $200k home worth $225k.   That is a result from a market condition.

It is important to seek out an experienced appraiser.  You can just ask me and I can get a great one for you!

Bottom line, “before you buy, sell or renew, speak with Andrew!”

Cover your ASSets

 

Cover your ASSets

Welcome back to an AWESOME approach to MORTGAGES.  We have missed you. 

If you didn’t already know, I recently got married and went on a wonderful honeymoon.  We traveled Eastern Europe and saw some amazing sights and met some brilliant people. 

During the process of preparing for the wedding, there were some very important things we needed to address.  We chose the menu for the dinners, the cake, the flowers, the seating arrangements for the tables, etc.  But there were a couple of fundamental things we addressed to protect ourselves before we got married…

1. We reviewed our life insurance, critical illness and living benefit policies
2. We created a will to protect our families and ourselves if anything were to happen to us.

Some might not think this to be very romantic, but it is necessary.  We had a great experience creating our will and our lawyer made it tremendously easy for us.  This process was seamless and we are more than happy with the result.  Our will is in a safe place and we have informed our loved ones the location of our will. 

Whether you have just recently secured a mortgage, renewing soon or have paid off your mortgage.  Please review your financial plan and your insurance needs.  There are many stages in life that you need to have proper insurance and adjust your financial plan.  In life, it is my goal to protect my beautiful wife, in the case that I am no longer around. I want her to be in a great position where she doesn’t have to worry about money and concentrate on erected a statue of me.

The bottom line is to get someone to look at these items for you!  I have some brilliant people I work with who will help guide you through the process and deliver relevant, realistic advice.

Please let me know when you would like me to introduce you to the professionals I use to take care of the important things!

As always, wishing you all my best!

Separations happen! Mortgage Wise is here to make it easier for you!

 

Separations Happen!

Writing this particular blog is ironic as I have my wedding in 18 days!  But it is important for people to know about their options when it comes to separation and divorce.

Going through a separation or divorce can be one of the most difficult periods in anyone’s life.

In addition to the heartbreaking end of a marriage, there are often difficult decisions that need to be made.  Where do the kids live?  How do you divide up the assets?

If you also own a matrimonial home you will certainly have other questions.

Who gets the house?  Can I possibly remain in my home?

Is there enough equity built up so that we can refinance to consolidate or pay out matrimonial debts and / or facilitate a buy out of my spouse?

The new mortgage rules effective July 2012 restrict the refinancing of one’s home to a maximum of 80% of the home’s value.

HOWEVER…there is a way to finance up to 95% of your homes value!

CMHC and Genworth Financial Canada, both suppliers of mortgage default insurance in Canada, will now consider applications for one spouse to buy the matrimonial home from the other spouse with financing available up to 95% of the home’s value.

Mortgage Wise can help.

Here is what we will need;

1. A Private purchase and sale agreement signed by both parties
2. A finalized divorce / separation agreement
3. A statutory declaration signed by the spouse who is relinquishing interest in the property
4. Lender may request additional support documentation depending on your individual situation and an appraisal may be required.

You have the questions.  We have the answers!

Thanks for visiting!

Improve your purchase!

 

Improve your purchase!

Have you found a property that you would like to do some renovations to? 

Maybe there is a property that you are interested in that needs some work.   Maybe there is a property that needs a lot of work before you can move into it.

Here’s how “Purchase plus improvements” works…

1. Find a property.

2. Evaluate the current value and the future value after improvements

3. Get quotes from reputable companies (on company letterheads)

4. An appraiser looks at the values before and after

5. Get the work done (appraiser visits the property) and get the monies refunded to you for the renovation costs

Here are the limitations…

1. You need to carry the costs of the renovations
2. You will need to put a minimum down payment of 5% of the improved value of the property
3. Most lenders max out the improved value to 10% of the purchase price to a Maximum of $20k.  Some will do 20% up to $40k. 
4. If you wish to do a larger renovation, we need to look into a “construction draw mortgage.”

Don’t you feel better now that you know???

I know I do for letting you know.

As always, I am available to help answer any questions you may have about this product and any other products.

Thanks for visiting an AWESOME approach to MORTGAGES.

Please feel free to share this with anyone that needs some mortgage questions answered!

Pre Approvals...What's up?

 

Pre Approvals…What’s up?

If you are thinking of buying a house or looking to renew within 120 days, DO IT!

2 main reasons to get pre approved…

1. Save a great rate for up to 120 days
2. Know that your comfortable with the rate and payments before you buy / Renew / Refi

With pre approvals, you know where you stand with your credit and how much you can afford.

There are 4 things we need to prove when you are purchasing a property:

1. Income
2. Down Payment amount and where its coming from
3. Credit
4. Affordability

Before we meet to do your pre approval, please have the following items ready:

1. Drivers License
2. Social Insurance Number
3. Recent Pay Stub (unless you are self employed)
4. Working knowledge of the debts you have

Let’s get you pre approved so you can shop with confidence!

Thanks again for visiting an AWESOME approach to MORTGAGES!

I missed you!

A cottage of your own!

 

A Cottage of your own…

Did you visit a cottage this summer?  Did you dip your feet off a dock into the refreshing lake?  Smell the fresh, woodsy air?  Watched the sunset from a wrap around porch?

Have you ever thought to yourself, “I would love to have my own cottage? Something to pass on to my children and my children’s children?”

It is easier than you think. 

You could purchase your own cottage with as little as 5% down!!!

We have access to a program called the “Secondary Home Program.”  We use this to help you purchase places such as cottages and single-family residences that are intended for the use of your family members. 

This is an amazing tool if you are looking to purchase your own cottage or a place for your parents, siblings or relatives.

For more information about your new cottage, please email me at Andrew.young@bemortgagewise.ca.

Thank you again for popping by an AWESOME approach to MORTGAGES.

Please feel free to share this with anyone who is looking for help with their mortgage needs!

Thank you for your support.

Renewals 101

 

Renewals 101…

So you are renewing…  Now is the time to start thinking about saving a great rate!  We have the ability to hold a great fixed rate for up to 120 days.

Allow me to make things easy for you.  At renewal, you now have the ability to switch up your term, amortization, lender and rate! This gives you the opportunity to change some things about your mortgage.

So what happens now?  We get to shop, shop around for the best term and rate for you.  We get to do what I do best… Find the best options for you!

So what will you need?

-       Recent Mortgage Statement

-       Renewal Statement

-       Proof of Fire insurance

-       Copy of 2 pieces of ID (front and back)

-       Void check (where you want the payments to come out of)

Most of the time you don’t even need a lawyer.  This saves you time and money.

Plan ahead! Start thinking about your renewal now.

Let’s lock you into a great rate now. If the rate goes down within the 120 days, you get the lower rate. 

Thanks once again for taking the time to read An AWESOME approach to MORTGAGES. 

If you know of anyone that is looking to buy, sell or renew, I would love an opportunity to meet with them.

If you know of anyone that would enjoy my blog, please feel free to share it!

Remember…..

Andrew Young gets it done!

So you would like an Investment Property....

 

So you want an investment property...

Don’t trust the investment market?  Looking for something more secure? 

Care to grow some equity and perhaps some monthly income as well?

Good call!

Here are some things you need to know;

If you are looking to purchase a multiple unit residential property, there are a couple of options;

1. If you are going to move into one of the units, all you need is 5% Down Payment as you will be occupying the property. (This applies to properties up to 4 units for most companies)

2. If you are not going to be occupying the property, you will need 20% Down. (Up to 6 units)

If you are looking to purchase a mixed use commercial / residential building, things get a little bit more difficult.  (Commercial rental space with residential above it for example)

1. Even if you are looking to move in, you will need at least 25% down for this type of property in most cases (depending on the zoning)

2. This property is considered commercial, therefore different rates / appraisal costs apply. This type of financing takes a lot longer than residential because there are more calculations to be made and more paperwork to be done.

How do you qualify?

Lenders use the same calculations to approve you, with a couple of considerations.  Here is how we do it;

We take your monthly must pay credit items

Mortgage payment +Property tax +heat / hydro, Credit Cards +LOC + Car Payments, etc.

                                                           

Dived by

Gross Monthly Income + 80% of Rental income (most companies)

*Under the new regulations, your GDS / TDS needs to be below 35 / 44% (for most companies)

Please consider this a brief introduction to rental properties.  If this is something you would like to consider, please contact me and I will be more than happy to meet with you and discuss your options.

Thanks again for visiting!  Please feel free to share with the people you know.

Andrew Young gets it done! 

519.630.5905