B-20 Mortgage Brokers will get Friendly With Their Credit Unions

B-20 Mortgage Brokers will get Friendly With Their Credit Unions

B-20 formally came into full-effect this week, but  mortgage brokers  have learned to live with the stricter underwriting guidelines from OSFI months ago and have even put a positive spin on it.

_{The guidelines cover banks that are federally regulated but we have access to many more lenders that are not under OSFI.}

 

_{Earlier this year, OSFI said it would compel federally regulated lenders to implement a series of lending changes by their fiscal year end (October 31 for most banks). Among those changes were: reduction of HELOC loan-to-value from 80 per cent to 65 per cent; the elimination of 100 per cent financing, aka 5-per-cent cash-back mortgages; and the requirement that variable rate mortgages and mortgages with fewer than 5 years, must now be qualified using the mortgage qualifying rate or contract rate.}

 

_{A few weeks from now, when more borrowers get turned down by the banks, brokers will probably see more business.}

 

_{Many federally regulated banks and some monolines began implementing the changes well before the October 31 deadline, other lenders like ING Direct have until the end of 2012 given fiscal years that end December 31.}

 

_{It’s getting harder for some borrowers to get a loan. The new rules affect maybe 10 % of clients looking for a mortgage, but Brokers can still get the loans from other lenders.}

_{The situation has led many brokers to take some of their deals to credit unions, which traditionally haven’t traditionally been a mortgage professionals first stop.}

 

 _{Previously credit unions were not very popular among many brokers because clients preferred to borrow from the better-known banks. Credit unions also typically require borrowers to appear personally at the lender’s office and become a member of the credit union before getting a loan.}

 

_{Credit unions are now ideal for borrowers seeking an 80 per cent LTV on a HELOC, require a 5-per-cent cash-back mortgage or need to qualify for a one- to four-year term mortgage at the posted rate.}

 

 

_{For more information on the new rules or to qualify for a mortgage , give me a call.}

 

 

 

 

Happy Canadian Thanksgiving

I have so many things to be thankful for, my family, my health and my clients, who give me such joy on a day to day basis, the stories they share, with me. The ups and downs of finding their dream home. How could anyone not love this job.
Thank you.
Happy Thanksgiving.
History of the Canadian Thanksgiving:



The origin of the first Thanksgiving in Canada goes back to the explorer Martin Frobisher who had been trying to find a northern passage to the Pacific Ocean. Frobisher's Thanksgiving celebration was not for harvest but was in thanks for surviving the long journey from England through the perils of storms and icebergs. In 1578, on his third and final voyage to these regions, Frobisher held a formal ceremony in Frobisher Bay in Baffin Island (present-day Nunavut) to give thanks to God and in a service ministered by the preacher Robert Wolfall they celebrated Communion — the first-ever service in these regions.  Years later, the tradition of a feast would continue as more settlers began to arrive in the Canadian colonies.

Oven roasted turkeyIn Canada

The origins of Canadian Thanksgiving are more closely connected to the traditions of Europe

For a few hundred years, Thanksgiving was celebrated in either late October or early November, before it was declared a national holiday in 1879. It was then, that November 6th was set aside as the official But then on January 31, 1957, Canadian Parliament announced that on the second Monday in October, Thanksgiving would be "a day of general thanksgiving to almighty God for the bountiful harvest with which Canada has been blessed." Thanksgiving was moved to the second Monday in October because after theRemembrance and Thanksgiving kept falling in the same week.
The 49th Parallel

Another reason for Canadian Thanksgiving arriving earlier than its American counterparioof remembering Pilgrims and settling in the New World, Canadians give thanks for a successful harvest. The harvest season falls earlier in Canada compared to the United States due to the simple fact that Canada is further north.

The history of Thanksgiving in Canada goes back to an English explorer, Martin Frobisher, who had been trying to find a northern passage to the Orient. He did not succeed but he did establish a settlement in Northern America. In the year 1578, he held a formal ceremony, in what is now called Newfoundland, to give thanks for surviving the long journey. This is considered the first Canadian Thanksgiving. Other settlers arrived and continued these ceremonies. He was later knighted and had an inlet of the Atlantic Ocean in northern Canada named after him - Frobisher Bay.

At the same time, French settlers, having crossed the ocean and arrived in Canada with explorer Samuel de Champlain, also held huge feasts of thanks. They even formed 'The Order of Good Cheer' and gladly shared their food with their Indian neighbours.

After the Seven Year's War ended in 1763, the citizens of Halifax held a special day of Thanksgiving.

During the American Revolution, Americans who remained loyal to England moved to Canada where they brought the customs and practices of the American Thanksgiving to Canada. There are many similarities between the two Thanksgivings such as the cornucopia and the pumpkin pie.

Eventually in 1879, Parliament declared November 6th a day of Thanksgiving and a national holiday. Over the years many dates were used for Thanksgiving, the most popular was the 3rd Monday in October. After World War I, both Armistice Day and Thanksgiving were celebrated on the Monday of the week in which November 11th occurred. Ten years later, in 1931, the two days became separate holidays and Armistice Day was renamed Remembrance Day.

Finally, on January 31st, 1957, Parliament proclaimed...

"A Day of General Thanksgiving to Almighty God for the bountiful harvest with which Canada has been blessed ... to be observed on the 2nd Monday in October.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

The Process Of Home Buying

1) Employ A  Realtor
A crucial and initial step is to choose a real estate expert who would assist you to locate your dream home and adjust your financial anticipations.

2) Call a Mortgage Professional for the best rates and terms
If you call a mortgage professional for mortgage rates, you can get a rate that can really help you save a substantial amount throughout the span of a loan. A small variation of 0.5% can also become significant.

3) Prequalify for a loan
During the early stages, you would wish to become prequalified for a mortgage loan. This gives you the amount that you can afford. ( Be forewarned that a prequalification does not guarantee a loan as most prequalifications are only computer generated. Always when putting in an offer have it subject to financing approval.) This gives you the flexibility to search for the right home, particularly when there are so many keen buyers. The seller also realizes that you are sincere in purchasing the property and can afford it.

4) What are your needs
To make a practical outline of the property that you wish to buy. What are the must haves and what can you live without?  Prepare two lists: one for the essentials and one for leisure. Update your lists as you go on house-hunting. Keep in mind that you can get a Purchase Plus Improvement Mortgage which would get you extra money to make improvements on the house you wish to buy.

5) Visit properties
Now you are prepared to visit properties. Make sure that you get a feature sheet of the properties you come across. Every time you go out to see more houses, update your notes to instantly get rid of any property that does not fulfill your requirements.

6) Understand the aspects that assist or hinder resale
In some locations, a swimming pool really takes away a part from the value of a home and it becomes more difficult to sell it. In areas with attached or two car garages, the future value and home buying potentials might be badly impacted by a single or one car garage. Your realtor can give you more information on these items as it relates to resale values.

7) Rank the houses you visit
Subsequent to visiting every house, jot down what you appreciated and what you did not. Prepare a ranking arrangement that clearly defines the home buying domain.

8 ) Make an offer
As soon as you have identified your dream home, the financial and legal aspect of home buying comes into play. Since the objectives of the home buyer and home seller are not the same, take the help of your agent for arriving at a positive outcome.
Prior to your date of closing, just ensure that you have done all essential deposits and finished the formalities such as title, mortgage , homeowner’s insurance.

9) Make arrangements for home inspection
Once the offer is accepted, but before the deal is finalized have the home inspected. That way if any expensive problems arise you can either walk away or renegotiate the price of the home.

10) Closing
Financing has been secured, home inspection went well, you are happy with the house. This is the step that you go to the lawyer and sign final documents, give lawyer cheque. The closing date is usually the same date as possession date, but not always.

11) Get ready to move into your new house
Before moving into your new house, phone hydro, gas company, telephone company, etc to set up a date for hook ups. Check fire alarms to make sure they work.  Do the change of address at the post office for your new address. The best time for renovations is before you move in, try to get them done before by staying an extra month in your old place.

For a great mortgage.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

Facebook pages

https://www.facebook.com/#!/akroemer

https://www.facebook.com/cvmortgages

https://www.facebook.com/campbellriverbc