The "After Summer Motivated Housing Market" is Open

The weather has changed from hot to cool.  The mountains have gotten their first sprinkling of snow around here,

With the cool weather, the "after summer motivated housing market" opens up.  What is this market?
It is those houses that did not sell in the summer time.  Usually the house price has an
advertised price drop in the Fall and the house owners are motivated to sell.
Why are they motivated?

If you do your homework  you may find out:

- they have bought another house and have already moved in to new house
- they have secured a job outside of the Comox Valley and need to move this house now
- there was a break up of the relationship and they want to move on with their lives
- they can't afford to keep their house because of their own personal economic conditions

A price drop does not necessarily mean there is some thing wrong with the house.
The owners just need to sell it.

This year it has been a buyer's market -- which means the buyer stipulates the terms and it is up to the seller to accept or not.  If the seller is motivated they will consider all terms.

Also , this year our Lenders are motivated.  They are willing to go above and beyond to get our clients a mortgage.

With this mix of a Buyers Market and Motivated Lenders it is a very good mix for people who may not qualify for a mortgage in "good times" to qualify for one now.

If you want to know if you qualify and for how much, contact me.  There is no obligation and it is a free service.  It takes about an hour to fill out an application. It can be done over the phone.  That hour spent could get you in a place of your own by Christmas.

Remember our Lenders are Motivated.
Run anything by me and I will see what I can do.

Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

Why Have Mortgage Brokers If We Have Banks?

The questions below are the questions I get asked most frequently about being a mortgage broker. 

Why have mortgage brokers if we have banks?
Don't the banks do a great job on mortgages?
What is the difference between a bank and a mortgage broker?
I have always had my mortgage at a bank what can you do for me that is different?

Mortgage Brokers have been available to clients for over 30 years. It has changed and evolved in those years to become one the most economical, efficient, flexible way of getting a mortgage.

The History of The Mortgage Broker

When mortgage brokering started in Canada it was primarily for those who only had bad credit. The mortgage broker was able to secure a lender for the mortgage at higher interest rates because of the risks involved with dealing with clients that had bad credit. The Banks would not lend to these clients.
About 20 years ago if someone said that they went through their broker for a mortgage it would be the tell tale sign that they had bad credit. So it was normal to associate mortgage brokers with bad credit.

Fast forward to 2011.

Mortgage Brokers Are Now For Everyone.

Many changes have taken place in the broker channel (network).
The growth of Canada spurred the need for more housing which meant more mortgages. The Banks primarily were the ones lending money for mortgages but without too much competition they could name their rates, policies and the Canadian client was at their mercy.

A basic understanding of what a Lender is:

The term "Lender" means the Lender is a Business that lends money to clients through mortgage brokers. They use mortgage brokers as their sales force, paying the mortgage broker a finders' fee, thus reducing their overhead, allowing for lower interest rates.
The federal government regulates these Lenders the same way they regulate the Banks. Which in Canada is very strict and structured.

As the demand for mortgages grew the Lenders saw the need for improved programs and more choices for the clients that wanted a mortgage. That was the start of what is known as “today's mortgage broker” . With the competition of the Banks and Lenders , the Canadian consumer has a choice like no other choice in history for their mortgage needs.

While the Banks are still pretty rigid on whom they deal with, the Lenders on the other hand have programs in place that just about cover everything imaginable in the world of mortgages. With the Lenders, the better the credit rating and stability of the client the lower the interest rate is charged. Thinking outside the box is one of the great qualities of these Lenders.

Why would a client choose a Mortgage Broker instead of a Bank?

more programs to choose from so the mortgage is tailored to you
fast approvals
usually lower interest rates
flexibility
constant evolving programs to suit you and your needs
peace of mind
mobile service
efficient handling of the mortgage
the choice in not dealing with a loan officer in a bank
over 50 lenders to choose from
friendly and informative advice
we want you to get your mortgage and will work very hard to facilitate that


Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
1.250.650.4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

More Property Tax Deferment Programs

Property Tax Deferment – 55 & older, surviving spouse, Person with a Disability

In the last couple of years taxes, gas, groceries and everything else has taken a huge jump and there is less money at the end of the month.

If you find that you are unable to come up with the money to pay your property taxes then one avenue you can follow is to defer them until you can make payments or until you sell your house. As always interest is added to the amount you owe. Below is more information:

http://www.sbr.gov.bc.ca/individuals/property_taxes/property_tax_deferment/about.htm

Property Tax Deferment – 55 & older, surviving spouse, Person with a Disability

The British Columbia Property Tax Deferment Program is a loan program that allows you to defer your annual property taxes on your home if you meet certain criteria.

To qualify, you must meet certain criteria as outlined below:


You are a Canadian citizen or permanent resident who has lived in British Columbia for at least one year immediately prior to applying for tax deferment benefits and be:
55 years or older during that calendar year (only one spouse must be 55 or older),
a surviving spouse, or
a person with a disability as defined by regulation:
To be considered for eligibility as a person with disabilities you are required to provide either:


a copy of either a recent letter confirming your Persons with Disability designation or your Release of Information Form from the Ministry of Social Development confirming you have the designation OR
a Physician Certification Form, completed and signed by your physician. The form explains the disability eligibility criteria for the Property Tax Deferment Program. The definition of "spouse" includes:


a marriage partner
a person who has lived with the owner as common-law husband or wife, including same-sex partners, for a continuous period of not less than two yearsYou must have, and maintain, a minimum equity of 25% of the current BC Assessment value (other appraised values are NOT accepted), after deducting the UPPER limit of all outstanding mortgages, lines of credit and other charges on your home.

There is a one-time administration fee of $60 for a new approved agreement and a $10 annual renewal fee for approved renewals. You do not need to send payment with your application - these fees are added to the deferment account.

Thank you

Angela Kroemer, AMP

Mortgage Professional

1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com

TMG The Mortgage Group Canada Inc.

Property Tax Deferment for Families with Children

In British Columbia the government has a program that will let you defer the property taxes if you are supporting at least 1 child under the age of 18.

It is a great tool if you need it, but you should also look at the implications in that you are charging up your property tax that will have to be paid eventually with interest.  The good part is they use the Bank Prime Rate , at the present that would be 3% per year.

Property Tax Deferment Program for Families with Children

The Families with Children Property Tax Deferment Program is a new option available to assist families during those years when household costs can be the highest. It is a loan program that allows you to defer all, or part of, the annual property taxes on your home for the 2010 and following tax years. To qualify, you must meet certain criteria as outlined below:

Qualifications

You may defer taxes on your home where you live and conduct your daily activities.
Second residences, such as summer cottages or rental properties, do not qualify for the tax deferment program.
Taxes paid to a First Nation are not eligible for the deferment program. You can only defer property taxes paid to a municipality or the province.
To qualify for the program, you must meet the following criteria:

• you are a Canadian citizen or permanent resident who has lived in British Columbia for at least one year immediately prior to applying for tax deferment,
• you are financially supporting, at the time of application, a dependent child who is under the age of 18 at any time in the calendar year in which you apply, and who
  • lives with you full time in your home,
  • lives with you at least part time under a shared custody arrangement, or
  • does not live with you, but you pay support for the child, or are responsible for fees and/or living costs if they are attending school,
• you must have, and maintain, a minimum equity of 15% of the current BC Assessment value (other appraised values are not accepted), after deducting the upper limit of all outstanding mortgages, lines of credit and other charges on your home, and

Please note: You may be required to provide proof that you are financially supporting, at the time of application, a dependent child who is under age 18 during the calendar year.

For a more detailed description:

http://www.rev.gov.bc.ca/documents_library/brochures/PTD_Families_with_Children.pdf


If I can help you with your mortgage needs, please contact me.

Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

AMP After a Mortgage Brokers Name-- What Does That Mean?

If you have been searching for a mortgage broker you may have come across the same 3 letters beside some of the mortgage brokers you have researched.

AMP stands for Accredited Mortgage Professional.

Below is the explanation from CAAMP's website:

The Accredited Mortgage Professional (AMP) is the only national designation for Canada’s mortgage industry. Launched in 2004, the AMP designation was developed as part of CAAMP’s ongoing commitment to increasing the level of professionalism in Canada’s mortgage industry.
An increasing number of Canadian mortgage consumers are becoming more aware of the AMP designation and are increasingly seeking the advice of an Accredited Mortgage Professional.
The AMP sets a single national proficiency standard for mortgage professionals
http://mortgageconsumer.org/what-is-the-amp-designation

Why Use a Mortgage Broker That is an AMP:

Below is the explanation from CAAMP's website:

The biggest investment decision of your life just got easier!
The AMP designation differentiates mortgage professionals from others in the mortgage industry. It demonstrates their commitment to providing you with the highest level of service.
Purchasing a home is one of the most important investments of your life so you want to proceed with confidence.
Look for the expertise of an Accredited Mortgage Professional (AMP). AMPs are committed to finding mortgage products and services that best suit your needs.
You can feel confident when dealing with a mortgage professional who has met a high standard of ethics and is committed to ongoing training. AMPs are dedicated to offering in-depth product knowledge and service and most importantly, an AMP will provide a tailored solution for your unique financing needs.
The AMP represents access to the dedicated services of a professional who is focused on meeting your needs.  http://mortgageconsumer.org/benefits-of-using-an-amp


In summary-- an AMP must maintain a certain goal of completing ongoing training each and every year to keep their designation.  Which means that when receiving services from an AMP you know that their knowledge is up to date with the industry standards.  Ethics and customer satisfaction is a key element for an AMP.


Thank you
Angela Kroemer AMP
 Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

Income to Qualify for a Mortgage

What type of income qualifies for a mortgage is varied and depending on how long you have been receiving a type of income depends whether it qualifies or not.  Below is the different types of income and the documents needed to qualify for a mortgage. Most Lenders require at least 2 years of history of income.
If you have income and are not sure if it qualifies, contact me and we can go through an application and see what the Lenders think.

Salaried Employees
 Usually, 100% of the client’s salary is used as income with the following documents available to support this income:
Employment letter - must be current on company letter head (including full address, contact information phone, fax, e-mail) and be signed and dated confirming salary, employment, and position, and when applicable, overtime, bonuses, pending increases or car allowances should be documented in the letter.
Pay stub – must be current and indicate the rate of pay, pay period, net and gross income, taxes and benefit deductions
Also for salaried employment the following may be  used :
Overtime- Overtime may be used to qualify the borrower provided there is a proven track record and the opportunity for continued overtime exists for the future. At least a 2 year track record .
Car Allowance - A car allowance may be considered as income if it is a “perk” of the job and a car is not needed to perform the job.
Bonuses - same documents needed as overtime

Hourly Employees:
 2 recent pay stubs, job letter and 2 year's notice of assessments are the preferred documents to confirm your client’s income.
The job letter must contain weekly average hours worked, hourly rate,year-to-date-earnings, how long employed,position.
The employment letter must be on company letterhead and signed by an authorized person of the company.

Tips:
Can only be used if you claim them on your income tax returns.  2 years notice of assessment showing income from tips is used.

Seasonal Employees:
Will need a 2 year average with documents supporting that you return each year for employment.
Being a seasonal employee employment insurance payments are also used.

Part Time, Second Job or Work for a Relative :
This income can be used as long as it is backed up with pay stubs, notice of assessment and employment letter and you will be continuing with these  jobs in the future.

Maternity Leave:
100% can be used with a letter confirming that you will be returning to the same pay and position.

Child Tax Credit:
Can be used as long as the children are under 12 years of age.  If you have a child older than 12 and a second child younger than 12 then you can use half of the benefit that your receive. The child tax benefit notice and a bank statement showing it is going into your bank account is required.

-- Universal child tax credit is paid until a child turns 6. If you have a 5 year mortgage term then it may only be used if the child is 1 or less in age. The benefit notice and a bank statement showing it goes into your bank account is required.

Workers Compensation:
Can be used if you have documentation on how long you will be away from work and confirmation you are returning back to work with the same pay and position.

Long Term Disability:
These payments can be used as well.  Documentation needed is 2 years notice of assessment, a doctors note outlining your illness and that it is either progressing or not getting any better , the Lenders may want to see the bank statement to verify that payments are going into your bank account.

Short Term Disability:
Will need a letter from your employer that you will be returning to work at the same position and same pay when your short term disability payments are finished.  Documents to verify that you are receiving short term disability.

Pensions:
Any pensions can be used as income.  Again prove that you are receiving the pensions. So notice of assessment from the last 2 years, copy of bank account, the form that they send you at the beginning of the year stating what your pension will be in monthly payments for the year.

Self employed:
Ideally the lenders would like to see the last 2 years of notice of assessments. But, if you had been employed in a field and then left that employment to start your own business in the same field of work, they would look at your earnings and what you made while self employed. Then decide if you need more documentation for a longer time period.

Rental Income:
More and more Lenders are allowing the rental income.  You will need a signed lease.  The Lenders will look at each case and decide.

Thank you

Angela Kroemer AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

Fixed Rate or Variable Rate......has the choice become easier?

September 29th 2011

The age old question facing consumers, do I take a fixed rate or variable rate......and a similar dilemma facing mortgage brokers as their clients ask them for advice on which option to take. We all know it depends on the client’s appetite for risk, affordability, cash flow stability, etc. however statistics have shown that taking a short term or variable rate has predominantly, but not always, been cheaper than take a longer fixed rate mortgage.

We maybe in or coming to an interest rate environment when taking a fixed rate or a hybrid mortgage (50/50) may actually be cheaper than staying in a variable rate. Why you ask.....let’s look at the facts as to why this maybe a good time to take a fixed rate or hybrid mortgage.

1. 5 year fixed rates are at the lowest levels in history, we have never been this low.....3.39% are available through many lenders and 2.99% for a 4 year is very attractive.

2. The gap between a prime - 0.40% (2.60%) and 5 year fixed rate (3.39%) is 0.79% and (in some cases even lower), this is down significantly from 3 to 4 months ago when the gap between a 5 year ARM and 5 year fixed rate was as high as 2.00%. If we consider a 4 year fixed rate at 2.99% versus ARM of 2.60% the gap is only 0.49% or two quarter point increases in prime.

3. You can’t predict when to time a conversion from ARM to Fixed rate, especially in a volatile market. Fixed rates have a tendency to move ahead of variable rates....when variable rates begin to rise the fixed rate has already gone up and if you convert you maybe converting at a much higher fixed rate than today’s rates.

No position is complete without looking at the counter arguments’, in other words why a client should consider a variable rate versus fixed rate mortgage. Once again let’s look at the facts.

1. Bank of Canada has indicated it is not looking at raising the overnight anytime soon or at least will hold off until such time as it sees the economy improving

2. There is no indication that inflation is increasing, therefore supports point 1 above.

3. U.S. has no plans to increase rates for the next two years making it more difficult for Canada to raise rates unless the Canadian economy is growing in spite of the U.S. being sluggish

4. Canada is becoming a safe haven for investors’ thus larger demand for Canadian bonds. This demand is keeping bond yields down thus lower fixed rates on mortgages.

Both positions have merit and no one has a crystal ball, however, if we continue to see the gap between fixed rate and ARM rates shrink then the risks of taking a variable rate versus fixed rate increases substantially. The risk being that ARM rates could increase higher than .79% % over the next 18 months to 24 months, therefore over the course of a 5 year term the fixed rate may actually be less costly than the ARM rate. If the gap between ARM and fixed gets is 1% or less, I believe the smart money would go to fixed rate versus ARM. If the gap between ARM rate and fixed rate is between 1% and 1.50% then a 50/50 mortgage maybe the best bet. If the gap between ARM and fixed rate is in the 1.50% to 2.00% range then ARM rate maybe the way to go. Based on the present volatile market conditions it is hard to predict or say what will happen, this volatility, is the biggest wild card and probably the main reason I personally would be taking a fixed rate or 50/50 versus an ARM, a bird in the hand (fixed rate) is better than two in the bush (ARM rate).

Fixed Rate to ARM Gap *	Primary Product Selection
less than 1.00%	5 year fixed rate
1.00% to 1.50%	50/50
1.51% or higher	5 Year ARM

* difference in rate between a 5 year fixed rate and 5 year ARM rate

 John Bordignon
EVP, Strategic Development, Paradigm Quest Inc.
Office: (416) 366-8606 ext 2294
Thank you
Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.

Mortgage Brokers and The Lenders

As mortgage brokers we usually belong to a big firm. Mine is The Mortgage Group Canada Inc. This big firm secures Lenders.  We as brokers have a list of lenders we can choose from.

What are Lenders ?
With TMG we have over 50 Lenders to choose from.  These Lenders quite simply lend money for mortgages.  The Lenders are well established, money lending businesses, with some being banks.
Since these Lenders do not have to hire salespeople to create business, they can offer lower interest rates because of their lower overhead expenses.  As brokers we are their sales force and in return we are paid a commission from the Lender.  This service is free to clients. (Charges may apply for very bad credit).

How do we choose Lenders for our Clients ?
When a client fills out an application with all information of of what they have (assets), what they owe (liabilities) and what they have coming in (income) we then can get a credit rating with the clients approval.  With this credit rating we see the history of the clients credit. The mortgage broker also needs to know their client and what the client wants out of their mortgage. Some like to pay the mortgage off fast, some believe it will go on for 30 years and are happy with lower payments. If you are retiring in 3 years but have a 5 year mortgage term can you afford the last 2 years of payments with only your retiring income?  With the most popular mortgage term being 5 years the client and broker have to look beyond the day you get your mortgage but look into the future and see if any life changes will affect the mortgage.

Each Lender has their own programs and policies they operate under.  When they post their interest rate they also post a paragraph of what type of clients they are looking for.  For example you may not be considered for the Lender of the lowest interest rate if you only have income from self employment, they may see that as an extra risk or if you want to buy a rental property that may be an extra risk and so they would charge a little higher interest rate.  If you want a 5 year fixed rate and the Lender only wants to do a 5 year variable then again you would not fit into their program.  The reasons are varied from Lender to Lender.

When we have a clients history we go to the Lender that will be the greatest fit for the client. This is where a  brokers knowledge of the different Lenders and their client is the key to making the clients experience fast, less stressful and efficient.

As a client it is best to let your broker know of any changes that you can foresee coming up in the next 5 year span of the term of your mortgage. A perfect example of this is :

You want a mortgage but you know that in 3 years your trust account will be released to you and you will pay off the mortgage then.  If you and the broker have not discussed this then the broker may put you in a mortgage with no prepayments ---at the end of 3 years you will have penalties to pay out your mortgage.  If your broker does know, then they would put you into a 3 year mortgage or a 5 year mortgage that would allow you to pay off your mortgage without penalties.

Any questions, contact me.

Thank you

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

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/

Canadians Realistic About Household Debt

In the past decade consumer confidence in Canada was much higher than what would be expected based on certain household fundamentals including Real Disposable Income Growth, Debt-to-Income Ratios and Consumer Capability Indices. It appears that pre-2008, consumers were confident they could increase and manage their household debt when indicators pointed against this.

Then, since the global financial crisis of 2008, Canadian consumers have become more realistic about their debt. Yes, they continue to borrow; however, the pace of that borrowing has slowed down. This change in mindset is happening during a time when their capacity to manage their debt has increased.

A recent report by economist Benjamin Tal of CIBC, analyzed this new trend on seven household fundamentals. He found that as of the second quarter of 2011, the Consumer Capability Index was back to the level seen before 2008, with the gap between confidence and capability narrowing notably, relative to the wide gap seen during most of the decade. This improvement in the capability index was not due to a strong growth in income but reflects the fact that while the level of the debt-to-income ratio is still rising, the speed at which it is, in fact, slowing.

"The key here", Tal wrote, "is the notable softening in the pace of growth in personal non-mortgage credit which is currently expanding at the slowest pace since the early 1990s. In fact, the ratio of consumer credit to disposable income has been stable over the past year."

According to the report, other factors contributing to the recent improvements include:

1. A higher savings rate which, while easing lately, is still double the rate seen before 2008
2. Personal bankruptcies are down
3. Relatively low and stable debt service costs
4. A stabilizing long-term unemployment rate at a relatively low level

"While consumers will continue to take advantage of historically low borrowing costs," Tal said. "The practical implication of their more realistic approach is that spending in the near future will be slower but more balanced growth as it will be based on fundamentals as opposed to wishful thinking."

as per TMG website

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.

Canadian Home Income Plan

This week I learnt about the CHIP plan and now I am pleased to be able to offer it to all my past, present and future clients.

CHIP stands for Canadian Home Income Plan.  In a nutshell it is a plan for seniors (55 and up) who own their homes, are able to borrow equity from their homes and use the equity for anything they like.
As you read the information below and find you may be interested in this plan contact me and we can see if this will work for you.

akroemer@mortgagegroup.com
www.comoxvalleymortgagestoday.com
1.250.650.4182


More information below:

ABCs of CHIP

Wouldn't it be nice if you had the money to do more of the things you want to do? A CHIP Home Income Plan could be just what you need. It's the simple and sensible way to unlock the value in your home and turn it into cash to help you enjoy life on your terms.

Let us introduce you to CHIP - Canada's leader in reverse mortgages:

A CHIP Home Income Plan is a reverse mortgage secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.

The big advantage with CHIP is that you do not have to make any payments – principal or interest - for as long as you or your spouse live in your home. That's what has made reverse mortgages such a popular solution in Canada, the U.K., the U.S., Australia and other countries.

A CHIP Home Income Plan is designed exclusively for homeowners age 55 and older. This age qualification applies to both you and your spouse.

You can receive up to 50% of the value of your home. The specific amount is based on your age and that of your spouse, the location and type of home you have, and your home's current appraised value.

You can choose how you want to receive the money. CHIP gives you the option of receiving all the money you're eligible for in one lump sum advance, or you can take some now and more later, or you can receive planned advances over a set period of time. You can even combine a lump sum advance at the beginning with ongoing advances over time.

Rebalancing Assets of $400,000

You receive the money tax-free. It is not added to your taxable income so it doesn't affect Old Age Security (OAS) or Guaranteed Income Supplement (GIS) government benefits you may receive.

You can use the money any way you wish. Maybe you want to build up your savings or cover unexpected expenses. Perhaps you want to update your home or help your family without depleting your current savings. The only condition is that any outstanding loans secured by your home must be retired with the proceeds from your CHIP Home Income Plan.

No payments are required while you or your spouse live in your home. The full amount only becomes due when your home is sold, or if you move out.

You maintain ownership and control of your home. You will never be asked to move or sell to repay your CHIP Home Income Plan. All that's required is that you maintain your property and stay up-to-date with property taxes, fire insurance and condominium or maintenance fees while you live there.

You keep all the equity remaining in your home. In our many years of experience, 99 out of a 100 homeowners have money left over when their CHIP Home Income Plan is repaid. And on average, the amount left over is 50% of the value of the home when it is sold.

Your estate is well protected. We guarantee that the amount to be repaid will never exceed the fair market value of your home at the time it is sold. If your heirs want to keep your home, they can repay the CHIP Home Income Plan from other funds.



You can save on taxes. If you decide to use the money you receive to buy non-registered investments such as GICs and mutual funds, you may be able to deduct the CHIP Home Income Plan interest charges from the income those investments earn. Be sure to consult a financial or tax advisor.

Posted Rates: Our interest rates start at just 4.75%

We have a variable rate option with no fixed term or if you prefer a fixed rate, we can offer you six-month, one-year, three-year, or five-year terms. Your interest rate will be based on the length of term you choose.

				Annual Percentage Rate (APR) *
Term	Rate	Effective	Reset Date	10 Years	5 Years	3 Years	1 Year
Variable Rate	4.75%	September 9, 2010	As Posted Rate Changes	4.88%	4.98%	5.11%	5.82%
6 months	4.90%	September 9, 2010	March 15, 2012	5.03%	5.13%	5.27%	5.97%
1 year	4.99%	February 14, 2011	September 1, 2012	5.12%	5.22%	5.36%	6.06%
3 years	5.45%	August 25, 2011	September 20, 2014	5.90%	6.00%	6.13%	6.85%
5 years	5.95%	August 25, 2011	September 5, 2016	6.41%	6.51%	6.65%	7.36%

* APR is based on a CHIP Home Income Plan of $150,000.The annual percentage rate (APR), is calculated as the rate of interest of the plan plus closing costs.

Rates are subject to change and will be posted on this site.

You can lower your borrowing costs with an interest rate discount.

• Interest payment discount - if you choose to pay your full annual interest, you will receive a 0.50% discount for the following year. You can pay in a single lump sum or make regular payments.

You have a number of payment options.

• No principal or interest payments are required for as long as you or your spouse live in your home.
• You can choose to pay all or part of the annual accrued interest ($1,000 minimum/year) without signing up for the interest payment discount plan. You can pay once every calendar year when it's convenient for you. If you pay the full year's accrued interest, you will qualify for a 0.50% discount on your next discount review date.
• The full amount only becomes due when you and your spouse pass away, when the home is sold, or if you both move out.
• You have the option to repay the principal and interest in full at any time. When you repay, an interest rate differential may apply. If you repay within the first three years, a prepayment amount will apply. These may be waived or reduced in the event of death or a move to a long-term care facility or retirement residence.

Set-up costs

Appraisal Fee

• Typically from $175 to $400 as an out-of-pocket cost.
• Actual amount varies by province and for urban and rural properties.
• Request for an independent appraisal is ordered through CHIP.

Independent legal advice is required

• Typically $300 to $600 as an out-of-pocket cost.
• Price range assumes no title issues.
• At your request, CHIP can provide a list of legal advisors in your area.
• It is recommended that you discuss fees with the legal advisor before proceeding.

Legal, closing and administrative costs

• Costs are $1,495 for all of our interest rate options.
• These costs will be deducted from your CHIP Home Income Plan funds so they are not an out-of-pocket expense.
• Includes title search, title insurance and registration.

http://www.chip.ca/index.cfm?id=103

 

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

What About Insurance?

What about Insurance--- I have my mortgage now should I also get insurance to cover me if I should get sick or have an accident.

Well the stats are
Almost half of all the mortgage foreclosures in Canada occur because of an accident, illness or death. Consider these statistics in Canada:

A life threatening cancer is diagnosed every four minutes

Someone dies of heart disease or stroke every seven minutes

Every day 144 people suffer a stroke - 21 of them will die and 110 will be left with some form of permanent damage


For an item as expensive as a house, insurance can make a lot of sense. Somethings are just out of your control.

As a mortgage professional, I offer you advice, competitive rates, and  tailor your mortgages to fit your unique situations.


And because my goal is to build long term relationships with my you, it makes sense for me to advise you on how to protect your home in  case of accident, illness or death.  As I do for your mortgage I will give you all the information about the insurance we are offering , including a 1-800 number for questions related to health so you can make an informed decision.

The TMG Mortgage Insurance product is 100% portable!

Where other insurance products may not be portable and that becomes a problem when you want to refinance or do a switch. The insurance may be cancelled which means you must reapply. What if your health has deteriorated? Can you still get coverage? Will the premium be higher?

Contact me to discuss your insurance needs.

Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com

Why Refinance and go Through all that Hassel?

Very good question !!!  This article will answer questions as to refinancing to save money on your mortgage payments.

To alot of us refinancing is a major headache.  You start off checking all the banks rates and then the credit unions and then private lenders rates and by the time you decide on one lender all the rates have changed and you start all over again.
But, usually you give up and try again in 6 months or a year later, or when the 6 pm news tells you rates are down again.

If you contact a Mortgage Broker they do all that work for you and it is at no cost and no obligation.  The lender pays the mortgage broker.
Your broker will let you know if  you should refinance or stay at the rates you are at now.
The service is fast and takes all the stress away from you.  You know the saying "work smarter , not harder".   Mortgage brokers allow you to do this.

Why should you refinance:

There are a few reasons why you should look into refinancing.  The reason most people know is if the rates go down enough it is better for you to refinance.  You can have a lower mortgage payment, saving you money, or you may want to keep your mortgage payment at what you were paying and then pay off your house sooner.

Another reason not so well known is when you bought your house your credit rating was not perfect, which means to get your mortgage you had to pay alittle extra because you could not get the best interest rate.  But now since you have been paying on the mortgage and all your other bills on time your credit rating is much better, now you can qualify for the best rate.  Saving you money.

When buying your house you just went with what the bank offered you as the interest rate.  Most banks will offer you a higher rate because they know that you will go along with it because you are not a seasoned home buyer.  You were just happy to get a mortgage and questioned nothing. Taking a good look at your mortgage may reveal this and now because you have a mortgage broker on your side you can get better rates, saving you money.

If you fit into any of the above categories, contact me.  I will go over your mortgage and let you know if you should refinance or stay where you are.  No cost--No obligation.

There are other reasons to refinance so that you can buy something in return using the equity that you have built up in your home.
Such as :
to buy investments
to go back to school
to buy another property
debt consolidation
financing a renovation
Combining 2 mortgage payments into 1


Angela Kroemer Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com

My Long Weekend

Not so exciting.

I loaded up the bookkeeping disk and started looking through all my receipts. Time to tackle this job.  It took a couple of days because each receipt was different . I had to stop and go look on the web for the answers to my questions.
Then I decided that my computer was too cluttered with programs, pictures and games.  I dug out the external hard drive I have had for awhile and found the cords( tricky part was to find the right cords) and plugged it in.
So I did a back up, deleted the programs I never used, also the games I never played and put all the pics onto the hard drive.
Now I have a computer that feels new again.
Next was all the emails I was saving for I don't know what.  But first I had to get a white board to write all the events coming up.  I found a white board at Costco with a calender, a place to write notes and a place that has cork board on it-- all in one board.
So as I was deleting the emails I could mark a date on the calender or jot down a note on the board.
Now I am organized.

Remember now that the children are going back to school and you have a few minutes of free time.  Call me for a check up on your mortgage.  I may be able to save you  money because the rates are low .  If your mortgage is coming up for renewal you can renew with me and save yourself  money.  You don't have to renew with your last lender and why would you if I can get you a better deal.

Now Networking Outside of the House.

Went to the Home Based Business Association tonight at the Coast Westerly. It was very informative and everyone was very friendly. Will join for sure. I got a very pretty Rose.  The door prizes are awesome.
If anyone has a home business you can go to  2 meetings and then decide to join or not. It is on the first Thursday of the month at the Coast Westerly from 6pm --9pm. Coffee served.
http://cvhbba.com/  for more information.

What I learned tonight is give to the United Way. The money stays in our community helping the people of our community. They take your postal code to be sure the money stays in the community.
  Next is the Women's Business Network next week.

Alittle bit about Facebook Advertising
I don't know if my competition is clicking through on my ads but I do seem to get alot of clicks but nothing else.  No emails about inquiries.  I am using a coupon that I got from somewhere so it is not auctually costing me anything.  But it seems something funny might be happening.  Hmmmmm.........

CMHC Survey about Home Owners

A recent survey from CMHC says the vast majority of Canadians renew their mortgages with their original lender, but you can save thousands over the life of a mortgage by looking at competing rates from competing institutions and mortgage brokers.



I am a mortgage broker and may be able to save you money.
Contact me for a free check up on your mortgage.

akroemer@mortgagegroup.com
1.250.650.4182

Business and Computers

No one tells you that when you start up a business that you need a couple of weeks just to start up all those computer sites that is needed for you to network.

So I start up my new business. Perfect. I am so happy.
After all those months of studying.  All that time dreading the final exam. I am finally homefree.

Then people tell me I have got to start networking on the computer as well as face to face.
So I start on the computer.

Facebook was easy. Did that pretty fast.

I opened a web site, then came a blog, then twitter and I needed to buy domains.  I bought way too many domains but it was fun shopping for names and heck they were so cheap.

So next I was reading about adsense.  I need that for my blog and website, I tell myself.  Off to the adsense website I go. Get all signed up and everything is great.

Oh oh, something popped up about adwords. Get your message out there. I have a coupon for adwords-- I should use it I thought.  Adwords were alittle harder to start up, but yes I got it done.

It is a huge mistake to read stuff on google.  Cause linkedin.com showed up. If you want to be somebody then you got to sign up and fill out your profile.  There goes another couple of hours of my life.

Sending out emails I noticed I needed a signature.  So went to read how to get a signature done and did it.  Although with gmail that function doesn't work great when you want to reply or forward something but yet, I figured out how to get this done and work around that problem.

Got professional pictures done a alittle while ago.  I needed to send a picture out for my business cards.  Got a reply back that the resolution was not high enough. Spent a few hours trying to get the resolution up to 300 dpi without distorting the picture, cause I had to also make the picture smaller.  Paint the program just won't cut it. I had to down load another program and learn how to work it. Photoscape worked pretty good, but I wish their measurments were in inches.

I still need to work on my professional website and I did sign up for a course cause I thought I would be a little bored. Thank goodness I have 4 months to do it, I may need it if I find anymore web sites to join.

Now on to joining all the network clubs I should belong to.

Poor Credit ? Want to get a Mortgage?

Were you less than perfect with your credit when you were younger, cell phone bill got away from you, divorce that left your bank account empty, lost your job for awhile?  Life happens !
When the bank has said no to you, contact me.
I can show you the steps to get your credit rating up to get a great mortgage rate or I have lenders who will approve a mortgage with less than perfect credit rating.
It all depends on the circumstances.
With a lesser score you will be paying a higher interest rate but if you have a great sale on a house it still may be cheaper to own rather than to rent.

Contact me.
akroemer@mortgagegroup.com
  1.888.679.0190