No downpayment-- read on

Stop Paying Your Landlord’s Mortgage! Own Your Own Home

The thousands of dollars in rent you’ve paid to your landlord may be a staggering figure— a figure you don’t even want to think about. Until now, buying a house hasn’t seemed possible; it didn’t seem to be in the financial cards for your foreseeable future. Or is it? This situation is common: countless people feel trapped their home rental, pouring thousands of dollars into a place that will never be their own—they think they’re unable to produce a down payment for a home in order to escape the rental dilemma. However, putting the buying process into motion isn’t as impossible as it may seem. No matter how difficult you believe your financial situation to be, there are a few key facts that can help you make the step from the renter’s rut, to your own home-owning paradise!

Initially, of course, the most daunting factor involved in buying a house is the down payment. You know you’ll be able to handle the monthly payments—you’ve done this, and possibly more, for years as a renter. The hurdle, instead, seems to be accumulating the capital needed to put money down. Here’s the good news - this hurdle may be smaller than you think. Take a look at the following points and explore whether any of these scenarios may be possible for you:

1. Find a mortgage broker to assist you with your options for accessing different lenders.

Mortgage brokers have access to more than just one lender, usually they deal with over 40. Some of those lenders will work with clients to get them into a house with various options available for down payment and closing costs.

2. Buy a home even if your credit isn’t top-notch

.

If you have saved more than the minimum for a down payment, or can secure the loan against other equity, many lending institutions will still consider you for a mortgage, despite a poor credit rating. And working with a mortgage broker we only obtain one credit bureau to save you rating from multiple inquiries.

3. Find a seller to assist you in buying and financing the home.

Some sellers may be willing to bear a second mortgage as a seller take-back. The seller then assumes the role of the lending institution, and you pay him/her the monthly payments, rather than paying the price of the home in a lump sum. This is an additional option if you have a poor credit rating.

4. Federal Government First Time Home Buyers Plan (HBP).

Canada Revenue Agency now allows first time home buyers to withdraw up to $25,000 from your RRSP contributions to put towards your home purchase. There are specific guidelines for this program which can be found at cra-arc.gc.ca.

5. Create a cash down payment without going into debt.

You may borrow the down payment from a loan or a line of credit. As long as you can service the repayment amount this is a viable option. You may also be gifted your down payment from a family member as long as it is genuinely a gift and it is in your account 15 days prior to the closing date. You may also have a co-signer on the application to increase the strength of your application for approval.

You now know, there are options. The next step is to educate yourself on what your own personal possibilities might be and how to follow through with this goal. You should be pre-approved for your mortgage before searching for a home. The process is free and doesn’t place you under any obligation. Its simple, you can be pre-approved over the phone! Once a credit application is submitted, you’ll receive a written pre-approval, which will guarantee you to a specific dollar range or mortgage amount. When you have the pre-approved mortgage amount, you’ll know the price range to look in. Make a commitment to break out of the renting rut. Start today! Call Angela to get started on buying your home!!!!!

www.mortgagegrp.com

Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

About Mortgage Brokers

As mortgage brokers we do not work for a bank.  We work for a Mortgage Broker that owns the firm and that firm goes out to secure Lenders that will work with mortgage brokers from that firm.  It is like working in a mall with only Lenders as occupants.  The people working under the mortgage broker firm are known as sub brokers.  But since alot of people don't know that term you will see other terms like mortgage professional, specialist,expert,agent (in Ontario)and consultant.  They all mean the same thing .  Mortgage sub Broker.

Now to be a sub broker you must pass a course and an exam. You must apply to FICOM which is a government agency over looking the mortgage brokers.  They check out your past including credit, criminal and work history.  Once you have past this scrutiny then you become registered as a sub broker.  Being a sub broker you are tied to uphold ethics of this profession or you will lose your licence.

A sub broker that is licensed in BC can write mortgages anywhere in Canada. Our training is so through that we can pass any provinces standards.  Which gives us a huge market to choose from. 

Canada is very proactive in keeping the mortgage broker profession , professional.  We are required to keep educating ourselves each year by participating in online courses, trade shows, and seminars.  We are encouraged to get our AMP designation with means Accredited Mortgage Professional. This means we do even more education. The brokers that are over achievers are in this group. They go that extra mile for their client.

I get comments from some people stating that the mortgage brokers in the United States were all crooks.  From the news reports you would think so cause they never reported on a good mortgage broker, no news worthy story there.  What happened in the United States is that in most States you did not need a license. That lead the way for many not so nice people to take advantage of many nice people. 

In Canada the government being the way they are , are proactive in not having this industry go bad. We have seen what bad looks like in the United States from a few years ago.
That is why we have to pass exams and continue our education, which is documented if you have the AMP designation.  We are strictly regulated. 

The whole mortgage profession encourages the public to come forth if they think they are dealing with a sub broker that doesn't seem like they are doing their job or you have an uneasy feeling about the job they are doing. 

You the client always comes first.

Where can you get more information about Mortgage Brokers?

MBABC ---http://www.mbabc.ca/
CAAMP --http://caamp.org/index.php

FICOM ---http://www.fic.gov.bc.ca/
TMG ---http://www.mortgagegroup.com/site/bc/brokerpage.asp?id=3011
My website ---http://cvmortgages.ca/

Interest Rates-- Mortgage Brokers vs Banks

Why is it Mortgage Brokers can often offer lower rates than Banks?

Mortgage Brokers have several Lenders to choose from.  At any time at least 1 Lender  has a rate on sale , so to speak.  With TMG we have over 50 lenders to choose from. Not all Lenders will be a  fit for every client.  Each Lender has their own policies. Some look for excellent credit, some look for fast closings, some look for okay credit and it is as varied as there are Lenders.

While the Bank only has one to choose from.  Themselves. 

The best way to find out which rate you qualify for is to sit down with a Mortgage Broker and fill out an application.  The bonus with using a Mortgage Broker is they only have to check your credit rating once for all of their Lenders which is over 50 with TMG.  Every time you go into a different bank they each have to check your credit rating which will take a small hit on your credit rating.  This is not the end of the world type of problem but do limit how many Banks do this as you want to be in the best position in your credit rating to get the best rates available. Rates are directly tied to your credit rating.

Once you have a free and no obligation quote from your Mortgage Broker find a Bank with great rates and get a quote from them.  If you really want to stay with your Bank they may match what the Mortgage Broker quoted you.  Not what we as Mortgage Brokers want to happen but our client comes first and we want to see our client happy and satisfied with any choice they make.  The end result is a client who is happy with their mortgage choices.

A sample of rates being offered is below.


                        RATE COMPARISON
 

Mortgage Term                    TMG Rate            Bank Rate
1 Year Open                          6.30%                     6.30%
1 Year Closed                        2.75%                    3.50%
2 Year                                    2.99%                    3.85%
3 Year                                    2.89%                    4.35%
4 Year                                    2.99%                    4.19%
5 Year                                    3.39%                    5.24%
7 Year                                    4.49%                    6.35%
10 Year                                  4.79%                    6.75%
All rates are provided for information purposes only and are subject to change at any time. All rates are calculated semi-annually, not in advance. E & E.O.

Down Payment not Required

You read the ads. No Down Payment.  What does this mean?

First of all, in most cases to not have a down payment you need a excellent credit history.  Which means you pay your bills on time and have income.

Next step is you need to be able to borrow the down payment.  The ways in which you can borrow are:
personal loans
lines of credit
credit cards
grants as long as not involved property purchase transaction. Example cannot be a builder loan.

The easy step is to call or email so we can set up a time to go through an application and see if you qualify.  This can be done over the phone or person to person.  Which ever is more comfortable for you.
If it is person to person then I usually meet with you at your home, but it can be at the library, coffee shop, your office, restaurant, etc.

If you are an outdoor type of person I enjoy meeting my clients at a park. Especially on a nice day.  I even bring the coffee. 


Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.comoxvalleymortgagestoday.com