Tag Archives: mortgage broker courtenay

Looking for long term security with your mortgage rate?

6 Jan

If you are thinking about where mortgage rates will be in the future and are considering locking in, there are some really good 7 and 10 year rates available right now.  These are a good consideration if you are planning to keep your home long term and want stability. We have a 7 year fixed term available at 3.99% and a 10 year fixed term at 4.49%. These are worth considering for risk averse clients. If plans change mid term and you sell or refinance, porting the rate is always an option.

Call us at Invis West Coast Mortgages for more information and a no obligation consultation to see if these options can be of benefit to you.  We are here to help!

 

Are you a first time home buyer….?

26 Oct

Buying your own home will likely be the largest financial decision you will ever make. But there is no reason to be intimidated. Your Invis Mortgage Consultant can guide you through each step of the way so you can acheive your goal of home ownership.

The process can be broken down into several steps and will often engage you with several professional services. But before you start you need to determine what you can afford to buy. This is where your Mortgage Consultant can help quide you through the entire process.

Step 1: Mortgage Pre-Approval – Your first meeting with your Invis Mortgage Consultant will help you understand the many possibilities for down payments and mortgage loan options. After that meeting you will have a better understanding of what your down payment, interest rates, and monthly payments look like. We will provide a rate guarantee that is good for 120 days, so you are protected should rates increase. You will know the price range before you start shopping for a home.

Step 2: Selecting your home - Choosing the right Realtor can make a big difference. Your Realtor will help you find a property that best suits your needs and will ensure any contract to purchase protects you. Expert guidance is crucial here and if you have not chosen a Realtor already your Invis Mortgage Consultant can be a good referral source.

Step 3: Mortgage Application -  Once you have found your home and signed a contract to purchase you will work with your Invis Mortgage Consultant to remove any financing conditions and secure your best mortgage. If you have not already provided income and down payment confirmation, we will require at this time.

Step 4: Subject Removal – This happens once you have received confirmation that your mortgage is unconditionally approved. Your Invis Mortgage Consultant will guide you seamlessly through this process. The other subjects, such as inspections are removed once you get approval from these experts.

Step 5: Legal Documentation – This stage transfers the title of the property and registers the mortgage for the lender. You are now a homeowner. Your Invis Mortgage Consultant will arrange for documents and instructions to be sent to your lawyer or notary. You will then meet with them to finalize all parts of the transaction. The solicitor will handle the monetary transaction and the filing of the documents with the Land Titles Office. If you do not have a solicitor in mind, again your Invis Mortgage Consultant can be a great referral source.

Your Invis Mortgage Consultant is an expert at residential and commercial mortgages. Mortgages, lines of credit and their associated products are all we do. Your consultant will be there from the beginning to the end of the process. They are someone you can count on to get you through each step of the process and they will be there for you throughout your entire borrowing life time.

We are here to help. Contact us at Invis West Coast Mortgages at our office located on Cliffe Ave in Courtenay.

Thinking about purchasing a mobile home?

28 Sep

You have decided to purchase a mobile home as an economical way of buying a home. You find a unit in a mobile home park that meets your needs. You have done some preliminary research on line and discovered that current mortgage rates are 3.50% for a 5 year term. You are thinking that on a purchase of $70,000 with a down payment of $10,000, the monthly payment would be approximately $300 per month.  Add to that the pad rental of $350 per month gives a total monthly amount of $650.00.

You decide to take the search to the next level and get pre approved. You go to your local bank and discover that for mobile homes in parks, the bank doesn’t discount the rate and actually charges a premium over and above the current posted rate of 5.19%. The lender also says that the age of the mobile home can affect the amortization period. An older home would possibly be amortized over 15 or 20 years as opposed to the 25 years that you based your calculations. This could increase the payment upwards from the $300 per month you thought it would be. The lender also advises that they require a consent form signed by the park owner and that some parks have issues with these forms and don’t like to sign them.

You decide to ask the banker what you would qualify for on a mobile home that has it’s own land. The banker advises the rate would be the posted rate and amortization will depend on the age of the home. Based on 25 years you would qualify for $130,000. You know that the cost would be more than this amount so you think that this in not an option.

After more reflection, you decide to call an Invis mortgage broker recommended by a friend. The broker advises that the banker is correct regarding mobile homes in parks. They are not easy to finance. The broker does advise however that there are lenders who will lend on mobiles on their own land with discounted rates in the 3.50% range. Given the lower rate you would now qualify for approximately $170,000 with a payment of $770 per month. The broker explains that you may receive a 30 year amortization if the mobile home is updated and renovated. Given your income, down payment and the longer amortization period, you would now qualify in the $200,000 range and the payment would be approximately $1000 per month. the broker explains that they have access to over 50 lenders and their plans and have at least 3 lenders who would consider a mobile home on land at the lowest rate and more if the home is modular.

You are now working with a realtor and obtaining your mortgage from an Invis mortgage broker!

Update on Mortgage Rates

11 Aug

There are currently a lot of serious problems in the world that would make it likely that  we’re setting the stage for a sustainably low level of interest rates for a very long time.

The latest views on variable rate mortgages are that we may even see a rate cut by the end of 2011 where previously markets were predicting a rate increase by the end of 2011.  So good news for all clients with variable rate mortgages.

Bond yields continue to go down, which indicate that we will see decreases to fixed rates as well.  Lenders seem to be waiting to see if this movement will be sustained before decreasing fixed rates.

Stay tuned for more information once the dust settles!

Five ways to save for a Down Payment

14 May

Saving money for a down payment on a home takes time, effort and patience. The larger the down payment, the more you will save in interest costs over the life of the mortgage.

Some methods of saving for a down payment are faster than others. Here are five ways to save for a down payment:

1. Home Buyers’ Plan (HBP)

If you have money already saved in a Registered Retirement Savings Plan (RRSP), the Canada Revenue Agency allows you to borrow from those funds under certain conditions. You can borrow up to $25,000 from your RRSP if you are a first-time homebuyer, defined as someone who has not owned a home in four years. If you are purchasing the home with a spouse, he or she can also withdraw up to $25,000 from their own RRSP’s.

In the second year after the withdrawl, you begin paying the funds back into your RRSP for a period of 15 years. If, in any year, you do not make the required repayment, the amount is included in your taxable income. some financial planners recommend borrowing money to make RRSP contributions, then withdrawing them under the HBP. There are risks and rules surrounding this strategy and it should be discussed with a tax accountant before attempting.

2. Mutual Funds

If you do not plan to purchase a house for three or more years, you may consider putting money away every month in an automatic investment plan. These funds can be invested in mutual funds. For shorter time horizons, mutual funds are not a good choice as they can be volatile in down markets. To lessen the risk of market movements, you can invest in a real estate funds. If the real estate markets drop, your fund will be worth less, but so will the value of your new house and the amount you will need for a down payment.

3. GIC’s and Other Fixed-Term Investments

A safer – but more slowly growing – way to save for your future home purchase is through guaranteed investments such as GIC’s and bonds. These investments have fixed rates of return so that you know what to expect and when they will mature. There are two potential downsides of fixed-term investments. The first is that the interest rates are typically low. The second is that if you find your dream house while the investments are still locked-in, you will likely pay penalties on early withdrawls.

4. Canada Savings Bonds (CSB’s)

CSB’s are a type of fixed-term investment offered by the Federal government. They also offer a relatively low interest rate but have the advantage of being backed by the financial strength of the government. CSB’s can be purchased for a minimum amount of $100 and are, therefore, useful in an automatic savings plan. When CSB’s mature, you can instruct the bank or investment broker to automatically re-invest them. As the time for buying a house comes closer, you can begin to invest in shorter term investments.

5. High-Interest Savings Accounts

If your time frame for purchasing a house is short, it’s important to not leave your money locked in or leave it to the whims of the market. There are many options for high-interest rate savings accounts. Many can be linked to from your chequing account at your home bank. It is simple to set up an automatic savings plan to have set amounts of money transferred over every month or every pay day. The funds are easy to obtain when you are ready to buy as they take only a few days for fund transfers and having no debit card attached to the account will prevent most impulse buying prior to the home purchase.

The Bottom LIne

The most important consideration for a savings vehicle to buy a home is the length of time you have to save. In short time frames, the funds need to be available and have little or no risk of eroding. When the time frame is longer, investments with  higher rewards are more appropriate.

 

 

 

Federal Government Changes Mortgage Rules

18 Jan

Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules intended to ensure the stability of Canada’s housing market. These measures included:

1. Amortization period capped at 30 years

2. Reduction of government backing for home equity lines of credit

3. Maximum refinancing reduced to 85% from 90% loan to value.

What does this mean?

These rules affect high ratio insured mortgages only at this time. For clients with 20% or more equity in the property, a 35 year amortization will still be available. There has been no announcements from lenders yet as to whether anything will change on conventional mortgages. Same thing with the change to refinances to 85% of value. No announcements as of yet from lenders as to whether they will continue refinances up to 90% on conventional. So stay tuned as more information comes out. There are no changes to down payment requirements. Changes come into effect March 18, 2011.

For clients thinking about purchasing a home or refinancing their mortgage  in the near future, contact an Invis Mortgage Consultant today to discuss how these changes affect you.

A good way to increase your equity. Try it for 2011!

11 Jan

For clients that have variable mortgages at today’s low interest rates, one way to really pay down your mortgage faster is to calculate what your payment would be if it were a fixed rate and pay that amount each month instead of the payment based on the variable rate.  This accomplishes two things, one is that you will pay down your mortgage faster thereby increasing the equity you have in the property faster, the second is that it gets you used to paying a higher rate so that when rates rise (and they will eventually) you are already accustomed to paying the higher payment. Doing this can save you thousands of dollars in interest.

Some lenders have on line access so that you can simply go into your on line banking and pay the extra payment towards the principal each month.  Some lenders will allow you to increase the payment so that it automatically happens.  You can also just put the extra money in a savings account and let it accumulate there and apply it to the principal every few months.  The trick is to find a way that works for you to accomplish the goal. You will be glad you did!

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