House Debt or Other Consumer Debt -Will The True Villian Please Stand Up

In the last couple of months, there has been several news worthy stories of house debt and other consumer debt. There are 2 groups lobbing the government to curb the other's debt vehicle.  Debt as a whole can be misused if it is not properly maintained. It just takes one or two life events for your debt to get away on you.

So the 2 school of thoughts lately is that house debt will get people into trouble and on the other side is Other Consumer Debt will be the evil debt getting people into trouble.

Lets take a closer look at each school of thought and see which one is the true villain.

1. House Debt interest rate around 3.29%
House Debt is the amount of money that you borrow to pay for your house. Right now the interest rates are at the all time lows, meaning you can buy a more expensive house with the same income dollars.
How can this be a problem in the world of Debt Villains, some of the problems are:
-if you lose your job you may not be able to make the payments (normal in every case)
-when you renew, the interest rate may be substantially higher and you may not be able to afford the payments,
-housing prices may fall and then again you may not qualify on what you owe to renew your mortgage. If you owe more than what the house is worth, no financial institution will loan you an extra amount of money if they cannot recoup it.

2. Other Consumer Debt interest rate around 23%
Other Consumer Debt is credit card, line of credit,vehicle purchases,buy now pay later, etc. This debt is used by the majority of Canadians to basically buy what they want- when they want it. There usually is very little to show for it except high interest payments.
-credit cards especially have a high interest rate. |Most people buy STUFF with no value after the fact.  If you lose your job you would have nothing to sell to help pay off most of the credit cards.
-many Canadians have a few credit cards  and shuffle payments from one to the other
-easy to get, especially if you are a young Canadian wanting to get into the credit game.
-If you do happen to buy items that you can resale- resale value may be 25-50% of actual cost if you are lucky.

While trying to figure out which  debt is the villain, I looked at the amount of debt. A house costs so much more than an average Canadian can put on a few credit cards. But, a house can be sold to recover most of the cost of the loan. Where as credit card debt, there is nothing to recoup. Average loss with a house or credit card debt on a bad case scenario may be around $30,000-$50,000. So that would be the same loss. But, there is one rule in Canada when a house gets sold by the financial institution and the house is sold at a loss, the loss can be recouped. The ex- owners still owe the outstanding bill. In this case the Other Consumer Debt is the Villain.

One fact that cannot be hid under the rug is there is always a resale value on a house, not so for the credit card debt.

 Another fact is  every person who buys a house with less than 20% down, has to buy default insurance, the House Debt becomes a better bargain then the Other Consumer Debt .

If you take it one step further and look to see which group has the most to lose if the Governmnet made changes to either one, you will quickly see the credit card group has the most to lose, with all their profits in their high interest rates. 4% versus 23%. That would be a whole lot of interest profits lost.

The real losers in this issue are the low to middle income bracket. They will have to save yet even more for a downpayment, plus if the amortization years are lowered they will have bigger monthly mortgage payments. These two points will likely take away any chance of being able to get into their own home.

The next time you come across a news story suggesting that rules on mortgages should yet again be tightened up, ask yourself why credit card companies are allowed to give credit out freely, as well as, gouge the average consumer with abusive interest rates.

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

After Living In The Same Area For 17 years.....

After Living In The Same Area For 17 years.....
This is what I have learnt.

Living in Courtenay BC has been very good for me. It is a small enough town where you can be anywhere in 15 minutes, but big enough to have the variety of small businesses and big box stores.

I bought my house on top of Ryan Road Hill.  Ryan Road was basically a thru way for people getting to the Base from other parts of Courtenay.  There was lots of bush to walk through and lots of deer to see.

Looking out my window, I noticed, I now have a mountain view. In the winter when all the trees had no leaves on them, I had mountain glimpses if the winds were blowing the right way. With  all the building down the hill on the left side of Ryan Road, it gave me a view. Bonus when I sell.

 I now can walk to stores within 5 minutes. This part of Courtenay has built up- not in a fast pace though but none the less I have almost anything I need in walking distance now.  Across the street we have the College and Swimming Pool.  Down the street  Home Depot, Costco and soon to be Thrifty's.  Our bus system has been updated, now they do not do the round Courtenay and Comox circuit. Any time I used to use the bus it would take a hour to get where I was going and a 20 minute walk to not use the bus. I usually chose the walk unless I had heavy items I did not want to lug.

 I chose my house in a good area and luckily it continues to be a good area. It was not skill, it was by chance. Unfortunately, other people who chose their houses were not so lucky.  Even though they knew industrial type of building would happen I believe they thought there would be more of a area between their houses and the businesses. All night long they listen to either Home Depot trucks or Costco Trucks and soon to be Thrifty's Foods trucks. Lots of complaints to City Hall. In the day time people behind the College listen to the trades building all day.  Welding, hammering and the likes, can be very hard to drown out. These houses were there before the businesses and they were not cheap.  While the businesses have bent over backwards to cut down on the noise, there is still noise in the middle of the night. 

I am lucky, except for some increased traffic on Ryan Road, everything built up here is a bonus when I sell my house. None of them are in my back yard.  Mountain views, short walking distance to College, Pool, Grocery Stores, Golfing, Home Depot and Costco, Church services at the College or School on Sundays.

So the important lesson I learned when choosing my next home is when buying a home be careful especially if the area is not built up already.  In all cases check with the city to see what zoning  is around the area of your home-to-be, check for long term plans, or you may  get a Costco or Thirfty's  literally in your back yard.


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

 Face Book Page : https://www.facebook.com/#!/pages/Angela-Kroemer-AMP-Mortgage-Professional-12506504182/174796809243771

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Earth Hour Tonight at 8:30 pm

Again this year Canadians are encourage to turn off their lights tonight (Saturday) at 8:30 pm for 1 hour and join the rest of the world in the dark.

Since it began in Sydney in 2007, Earth Hour has grown to become what environmental group WWF organizers say is the world's largest demonstration of support for action on carbon pollution.
BC Hydro encourages their customers to join in this year. Last year stats have BC'ers saving equivalent of 7.8 million 15-watt compact fluorescent light bulbs for the hour. This amount adds up to powering 4000 homes if everyone in BC did this for 1 hour each night.

In Ontario, Hydro 1 will be turning off all non-essential electricity through out the province at their offices.

Even the NHL in Toronto and Vancouver will be dimming their lights while the hockey games play on.

Many events are taking part in Canada , as well as, around the world. Check your local newspapers and google for events near you.

WWF said the number of countries and territories participating has grown from 135 last year to 147 this year.


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

Reverse mortgages an income lifeline for some seniors

Reverse mortgages an income lifeline for some seniors

A great article. For more information, give me a call.

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

Canada’s Top 50 Rental Markets- Courtenay, BC Is One

Canada Mortgage and Housing Corp.’s latest survey of Canada’s rental markets yields some surprising finds and some long-term winners. Rental housing is a hot topic across Canada as house prices rise above what many people can afford, prompting first-time homebuyers to defer a purchase. Add in economic uncertainties, and both tenants and landlords want a property that makes the best use of their money.

For mortgage brokers this is great information . We know  there is enough interest in the rental market and we know that there are alot of people who rent, but with great guidance could afford to buy. Basically we have 3  main clients.
-  wants to buy for their own personal use
-  wants to invest in the housing market
-  wants to rent or does not know that they can buy

The community profiles look at trends in vacancies and monthly rents in each area; the charts and tables show how the communities stack up on a national scale.
A wealth of additional information for each province and what the statisticians term “Census Metropolitan Areas” is available online at www.cmhc.ca, but the following offers a glimpse of what lies ahead for 2012, based on what happened in 2011.

Alberta
Brooks
Calgary
Canmore
Edmonton
Grande Prairie
Lacombe
Lethbridge
Lloydminster
Okotoks
Red Deer
Wetaskiwin

British Columbia
Courtenay
Vancouver Island’s laid-back lifestyle helps support the rental market in Courtenay, which is moving from a resource-based economy to one driven by tourism and supported by the military base CFB Comox. A popular destination for retirees, approximately a fifth of the population is seniors. Vacancies in Courtenay have continued to tighten even as the rental stock as declined, and now average 3.5%. The market is stable, but the demand for new homes will continue to exert pressure on the existing purpose-built rental stock, primarily older buildings.
Fort St. John
Kitimat

Manitoba
Portage La Prairie
Thompson
Winnipeg 

 New Brunswick
Fredericton
Saint John

Newfoundland and Labrador
Grand Falls-Windsor
St. John's

Nova Scotia
Halifax

Ontario
Barrie
Belleville
Brantford
Cobourg
Greater Sudbury
Guelph
Kawartha Lakes
Kitchener-Cambridge-Waterloo
Meaford
Norfolk
Oshawa
Petawawa
Peterborough
Stratford
Thunder Bay
Tillsonburg
Toronto

PEI
Charlottetown

Quebec
Baie Comeau
Saguenay
Québec City
Saint-Hyacinthe
Salaberry-de-Valleyfield
St-Jean-sur-Richelieu
Trois-Rivières

Saskatchewan
North Battleford
Regina
Saskatoon

snippets from an article written by Peter Mitham


 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

St Patrick's Day in Canada

St Patrick's Day is a public holiday in the Canadian province of Newfoundland and Labrador on the nearest Monday to March 17 each year.
This event commemorates the life of St Patrick, a missionary who worked in Ireland and is said to have died on March 17 in the fifth century. He played an important role in converting the inhabitants of Ireland to Christianity. Now, his feast day is an opportunity to celebrate Irish culture.

The most widely-seen St Patrick's Day symbols are the colors green, and sometimes orange, and the shamrock. The shamrock is a symbol of Ireland and a registered trademark of the Republic of Ireland. It is the leaf of the clover plant, which grows on the ground, often among grass and an Irish Catholic symbol of the Holy Trinity. It is sometimes confused with the four-leaf clover, which is a variety of the three-leaf clover and is thought to bring good luck.

If you are looking for a home in the Comox Valley and are hoping for the Luck of the Irish to help you out today, you may want to go to  www.comoxvalleyopenhouses.com .

Good Luck on your search and call me for all your mortgage needs.



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

Shucking Corn-- Clean Ears Everytime

I know, this has nothing to do about mortgages. But it is amazing all the same. How many ways have you tried to shuck corn and still got all those silk threads hanging on to your corn. In this video, the silk threads will be gone with no work involved. No running an elastic band up down the corn cob bruising the corn or what ever method you saw last. This method looks like it works.
I have not tried this method but Ken looks like a guy you can trust. Just look at him.
If you have tried this method, let me know how it works for you.
Here in BC it is March, so fresh corn won't be here for awhile

http://www.youtube.com/watch?v=YnBF6bv4Oe4&feature=share

right click and open in new tab.

Thanks Ken.


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

CMHC--Buying a House

http://www.cmhc.ca/en/co/co_007.cfm

A video on buying a house and what to expect going through the buying process. The video is very general, so if you have any questions give me a call.




Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

BMO- 2.99% Again

Thank you BMO for reposting that awesome rate again.

I don't have anything close to your advertising budget, so you posting that rate is helping me and my lack of advertising budget.
You see when you post that rate, it gets people talking and thinking about mortgages in general or their personal mortgage. When they start thinking, they start calling and wondering what this is all about. When they call me, I let them know there are better deals out there, sometimes not in rate but in flexibility and in the long run using my Lender could make the mortgage a less expensive option. Most people change their mortgage options within 3.5 years, so it is most important to have flexibility in your mortgage.

So lets break down the BMO offer

BMO 2.99% 5 year fixed
-amortization only 25 years-bigger mortgage payment
-prepayment only 10%-once a year you can raise your monthly payments up 10%, but they must stay raised for the whole year
-prepayment only 10%- only once a year you can pay off up to 10% of the orignal principal amount
-prepayment penalites will apply unless you stay with them
-you must qualify on the posted rate- which is higher and you may not qualify for the 2.99%
-rate is only held for a few weeks

Sounds like a great plan for your mortgage but in reality it is not very flexible and may cost you more in the long run if things happen in your life that you have no control over.(job loss, sickness) Example-- you have raised your mortgage payments up 10% for the year, which may be fine now, but if something happened and money is tight you are stuck with the bigger payment for the rest of the year. With the lender below, you can double up you payments any month and for just that month, giving you the flexibility of having a low mortgage payment with the option of doubling the payment at any time for as long as you like.

What my Lenders offer

Lender- 2.99% 4 year fixed or 3.19% on 5 year fixed or 3.99% on 7 or 10 year fixed

-amortization 30 year
-prepayment 15% on orignal principal on any date in $100.00 increments
-double up monthly payments on any date without penalty as many times as you like
-mortgage transferable to your next property
-you qualify on the sale rate.
-rate is held for months

This product is better than the BMO's product because of the flexibility it allows.

So BMO please keep this advertising campaign up, it only saves me money on my advertising expenses and brings more clients to me. Thanks




Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
comoxvalleymortgagestoday.com
Your Mobile Mortgage Professional in The Comox Valley

B.C. First Time New Home Buyers Bonus

NEW PROGRAM
as per government website


An eligible new home includes new homes (i.e., newly constructed and substantially renovated homes) that are purchased from a builder and that are owner-built. The bonus will be available in respect of new homes purchased from a builder where:

- A written agreement of purchase and sale is entered into on or after February 21, 2012;

- HST is payable on the home (e.g., HST will generally be payable if ownership or possession of the home transfers before April 1, 2013 - see further details below);
- and no one else has claimed a bonus in respect of the home.

The bonus will be available in respect of owner-built homes where:
- A written agreement of purchase and sale in respect of the land and building is entered into on or after February 21, 2012;
- Construction of the home is complete, or the home is occupied, before April 1, 2013; and
- No one else has claimed a bonus in respect of the home.

A substantially renovated home is one where all or substantially all of the interior of a building has been removed or replaced. Generally, 90% or more of the interior of the house must be renovated to qualify as a substantially renovated home (90% test).

Amount of the Bonus

MAXIMUM AMOUNT

The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.

PHASE-OUT FOR HIGHER INCOME EARNERS

The bonus will be reduced based on an individual's/couple's net income (line 236 of your income tax return) using the following formula:
- For single individuals, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (bonus is reduced to zero at $200,000 net income).
- For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income).

Additional Information

APPLICATION PROCESS

Individuals must apply for the bonus through the B.C. government. Individuals can apply once application forms have been posted on the B.C. Ministry of Finance website later this year. Applicants will be required to submit documentation demonstrating eligibility for the bonus.

ELIGIBLE NEW HOME

The bonus is available in respect of new homes (i.e., newly constructed and substantially renovated homes) where HST is payable. HST will generally be payable on homes purchased from a builder where ownership or possession transfer before April 1, 2013. Potential buyers should consult with the builder to determine if the home will be subject to the HST.

For owner-built homes, the bonus will be based on land and construction costs subject to the HST. Eligible new homes will include:
- Detached Houses, semi-detached houses, duplexes and townhouses,
- Residential condominium units,
- Mobile homes and floating homes, and
- Residential units in a cooperative housing corporation.



For More Information
INCOME TAXATION BRANCH

Ministry of Finance
Province of British Columbia
Telephone: (250) 387-3332 or 1 (877) 387-3332
Email: ITBTaxQuestions@gov.bc.ca


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

Transfer or Switch Your Mortgage- Legal Fees Paid For You

Transfer or Switch Your Mortgage- Legal Fees Paid For You. Wow this is exciting news. Now what is the catch? There is no catch. Read below for more information on this great deal.

Switch/Transfer Program

This switch/transfer program allows you to transfer your mortgage from another lender quickly and efficiently.


Terms Available:
3,4,5 year fixed and 3 and 5 year VRM

Approved Financial Institutions (to transfer in)
Maple Trust, Firstline, TD, BMO, RBC, First National, MCAP, Scotiabank, HSBC, ING, Laurentian Bank, CIBC, National Bank and PC Financial

High Ratio and Conventional loans are acceptable

Owner Occupied Properties are only eligible

There are no legal fees for you under this program, we take care of the legal fees!

What documents are needed from client?
1. Documents such as income,T4, etc

2. Fire Insurance Policy

3. Mortgage Statement

Call me for more information on this program.


Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
comoxvalleymortgagestoday.com
Your Mobile Mortgage Professional in The Comox Valley

Decoding Real Estate Jargon | MoneySense

I found this article funny and in a bizarre way kind of truthful, especially when I am househunting and come across descriptions auctually used like 'glimpses of ocean' or 'cute and cozy'. Hope you enjoy it.


The real estate jargon that’s used to describe homes. From handyman specials to condo alternative, these phrases are often code for less than desirable home attributes.

Thankfully, real estate jargon isn’t limited to just a handful. On a blog post from Biggerpockets.com, I found a long list of adspeak that’s sure to prompt a chuckle for all us homebuyers—more than a few times we’ve stumbled across a home with a “large family room,” a “newly remodeled kitchen,” or a “partial lake/mountain view.”

Here’s a few of my favourites:

Tudor: The house has two attic-style bedrooms, which are not insulated properly. This means you’ll be sleeping in a sauna in the summer, and a freezer in the winter.

Sunny corner lot: The house is located on an intersection—probably a busy intersection which is why they’re trying to turn your attention to the sky.

Easy highway access: Sure it’s easy, considering the street is the equivalent of an arterial route to the highway.

Large family room: Large, open basement that only makes sense if you stick a few couches and a TV down there.

Lots of storage space: The basement is just too small to be considered living space.

Newly remodeled kitchen: The 50-year old cabinetry and faucets were finally ripped out and replaced with cheaper Depot or Ikea equivalents.

Partial lake/mountain view: If you climb up to the roof, you can just get a glimpse.

Storybook charm: The house is old, small and doesn’t have a flat roof.

Cozy bedrooms: Not a single room could fit a full size queen, never mind a king bed!

Must see inside: Means the outside is more than ugly.

By Romana-King-Blog



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

Happy Valentine's Day

Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
comoxvalleymortgagestoday.com
Your Mobile Mortgage Professional in The Comox Valley

10 Great Reasons For Using A Mortgage Professional

Thanks for viewing.


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

How To Get $100.00

Would you like to get one of theses crisp pieces of polymer? Anyone sending me a referral for a mortgage product and when the mortgage funds will get one of these. With the money you could buy them the best house warming gift ever. Or spend it on yourself. (anywhere in Canada)

So if you have friends and family that are sitting on the fence about buying a house, send them my way. We can fill out an application, find out the payments and get the home buying started.

Also, this is a great time to refinance your mortgage for a better rate. Even by paying the penalty you still could be saving money. We can explore this option, and if it does not save you money then you don't refinance, but at least you know.

One more option is to lock in to a low 10 year fixed rate.

Any questions?

Email or phone me.



Thank you
Angela Kroemer, AMP
Mortgage Professional
1-250-650-4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.
TMG Shaire Marie Mortgage Team

Sharie Marie Mortgage Team Wins A Prestigious Award

Last week the Sharie Marie Mortgage Team won Real Estate Company of the Year at the Vancouver Island Business Excellence Awards.

The Sharie Marie Mortgage Team is a team within TMG The Mortgage Group, last year's winner of Brokerage of the Year at the Canadian Mortgage Professional Awards.

"It's an honor for our team to even be nominated, let alone win this huge award," says Angela Kroemer, Comox Valley's Mortgage Professional on the team.

Angela has been a proud member of this team for the past 6 months, and has been so happy to help her clients realize the money saving potential that is within their mortgage.

The Sharie Marie Mortgage Team focuses on educating their clients, and making sure they fully understand all that comes with their mortgage, as so many borrowers tend to overlook the privileges that are available to save them money.

"It's great timing for our team to win this award," says Angela Kroemer, "as with rates as low as they are, almost any home owner can benefit from a refinance right now."

Angela and the rest of the team would like to thank the Business Examiner for choosing them as the recipients of this prestigious award, as well as let the public know that now is a great time for a free mortgage check up.

Let us see if we can save you money!

Call Angela Kroemer to book an appointment.

Congrats to Sharie and our Team !!!!!!!!!














Thank you
Angela Kroemer, AMP
Mortgage Professional
1.250-650-4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com

TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

Comox Co-op makes ‘significant donation’ to Wheels for Wellness

Comox Co-op makes ‘significant donation’ to Wheels for Wellness

Wheels For Wellness helps 10000 people a year from the Comox Vally. They have a fleet of 15 vehicles.
There are 26 volunteers helping all year long.

What a caring organization.

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

Is It Time To Get Locked In At The 10 Year Fixed Rate?

There is a great reason to get into the housing market right now. The 10 year fixed Mortgage rate is available for under 4%. Which is unheard of in the history of mortgages in Canada.

Depending on how the housing market goes in the next few years, will be the indicator if you can afford your payments. If you are getting into the housing market now with the low rates and locking in for 2, 4 or 5 years. Will you be able to afford the payments once you renew with higher rates?

If you choose the 10 year low interest rate now then you will have 10 years to pay on the mortgage and by the time you need to renew to higher rates , hopefully your house will have increased in value, making your equity in that house so much more. You will also have 10 years of payments and prepayments towards the mortgage.

Low mortgage rates give you low mortgage payments. If you have tried in the last 5 years to get a mortgage and were declined because of your earnings, then now would be a great time to try again.

Most Banks will not give you the lowest rate because they bundle up their mortgages and sell to investors. Please call a mortgage professional (me) to get the best rates for the 10 year fixed mortgage.






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

Long-term mortgage rates have dropped to the lowest point in Canadian history

Lock in your Rates !!!!!

Note: 10 year fixed rates also lowest in history. Mortgage brokers have the lowest rates for the 10 year as banks will not do them at a great rate.

Long-term mortgage rates have dropped to the lowest point in Canadian history — and the stampede to lock in is expected to pick up.

Bank of Montreal became the first major Canadian financial institution to bust through 3%, with its 2.99% closed fixed rate mortgage for five years. Others are sure to follow.

If five years isn’t long enough for you, ING Direct has weighed into the current mortgage discussion with a 10-year fixed rate product at 3.89%. The added bonus of going longer than five years is that under Canadian law after half a decade you can break your mortgage for as little as three months’ interest.

TD Canada Trust, which had already lowered rates on six and seven-year fixed rate terms, now has lowered the four-year fixed rate to 2.99%. Farhaneh Haque, director of mortgage advice and real estate-secured lending at the bank, says the argument has never been stronger because there is no guarantee these deals will be available in two years. The two new deals from TD and BMO are limited time offers.

“Buyers have to evaluate if they want to stay in variable,” says Ms. Haque, suggesting even those with deep discounts might want to consider scrapping those deals to take advantage of the historical bargains.

It’s hard to argue against locking in, unless you are one of the lucky people with a variable rate mortgage tied to prime that came with a whopping discount. Some consumers have deals with as much 90 basis points off prime, meaning they are borrowing at 2.1%. That’s not the same as negotiating today when you’re only get 10 basis points off or 2.9%.

“You’ve got a dinosaur, you are living in Jurassic Park with something that doesn’t exist anymore. You can’t get that again,” says Vince Gaetano, a principal broker at Monster Mortgage, who suggests you keep the low rate and use the savings to pay down your mortgage as fast as possible. “You cut your mortgage in half and you don’t care as much what the interest rate is when you renew.”

Mr. Gaetano says keep on eye on some of the new products and stipulations that might include things like prepayment terms and amortizations.

Bank of Montreal’s new product demands you get a 25-year amortization, instead of the maximum 30 years, and will only let you pay 10% per year of the original mortgage amount. TD Canada Trust’s new four-year product will let you prepay 15% while ING Direct goes as high as 25% prepayment.


Garry Marr Jan 15, 2012 – 7:00 AM ET |

Please call me for rates as they are changing daily.



Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com

TMG The Mortgage Group Canada Inc.

CHIP Home Income Plan - Reverse Mortgage

Living in the Comox Valley is truly wonderful. So many things to do, so many things to see.
The downside to living here is everything is so expensive. It is okay while you are working and can make a decent wage, or for many people work extra hours to make extra money to do the activities they want.

But once you retire, well that is a different story.

Pensions don't increase at the speed that everything else increases. Was listening to the news the other day and medical went up, property taxes are going up, gas tax going up. Just how does a person on a fixed income make do if they cannot earn anymore money?

The other downside to living here is the medical. If you get sick, the reality is that you have to travel to Victoria to see a specialist, to get medical treatment that they do not do in the Comox Valley. The travelling can be several times a month or several times a year. That extra money for traveling eats into the cash the pensioner may have.

Also, our medicare is cutting down on the items it provides. Now everyone is faced with extra bills for the medical items that medicare will not cover anymore. Even if your doctor says you have to have them.

Stock market -- Thinking that your returns will be at least 5% and finding out that it is only 1%, if you had anything left after all those crashes. So much for that extra income in your retirement years.

The solution can be a CHIP Home Income Plan - Reverse Mortgage if you own your own home. It allows you to stay in your home while getting income from your home to help with all those extra expenses. In the last couple of years there has been an increase of pensioners looking to the CHIP program to get them extra income to live on.


SOME HIGHLIGHTS of the CHIP Home Income Plan - Reverse Mortgage are:



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.

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.

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.

You receive the money tax-free. You can use the money any way you wish.

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.



If you would like to know more about the CHIP Home Income Plan - Reverse Mortgage, give me a call or email me.



Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com

TMG The Mortgage Group Canada Inc.

Use RRSP's For Down Payment

Are you making good money, but don't have a down payment?

Are you a First Time Home Buyer?

You are in luck.

What you can do is go to the bank and get a loan for your RRSP contribution. If you do not know your limit then you can look on your last year's notice of assessment, it will give you the maximum RRSP limit that you can buy.
Once you have the loan for the RRSP, you can buy a house under the First Time Home Buyer program.
You use the RRSP as a downpayment up to $25,000.00 per person. You do have to pay this back to your RRSP account with in 15 years paying a portion each year.

You pay on the RRSP loan monthly just like a regular loan. When you do your Income Taxes you should get a rebate for buying the RRSP's. What you can do with this rebate is to pay part of the loan off thus decreasing the amount of interest of the loan.

Any questions, let me know.

Thank you

Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup.com
http://www.KROEMERmortgages.com

TMG The Mortgage Group Canada Inc.








Pin It

Dropping Rates

New rate just in:

3.25% is available with 40 year amortization feature. Must have 20% down and close by end of Feb.



While the interest rates are on the rise, some Lenders have specials on until the end of
February.

The clients that can get these rates are clients buying homes or clients switching Lenders to get a better rate.

For a free consulation, contact me. I can tell you what rate you would get, how much you would save over the course of your mortgage and how you can shorten the length (in years) of your mortgage.

This service is free and without obligation. oac.


Thank you

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

Interest Rates Dropping?

2011 has certainly been a silly year for Interest Rates.

Before it was the normal to get a varible rate now it is the normal to get a fixed rate.

Just when you think Bank of Canada will raise their rate , it stays the same.

And now, when everyone says the rates will be rising, I get a email to say, stay tuned because the rates will be dropping.

Will everyone drop their rates? I am not sure but I do have a Lender that says they will be dropping their rates.

So for now , it would be very beneficial for you to get on my contact list, so I can send you the Interest Rate updates.

Why pay more for your mortgage when you do not have to.

Email me or phone me to get on my interest rate contact list.
You can always go to my website and sign up there.
http://www.ComoxValleyMortgagesToday.com


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

Busy Time of Year-- You Still Need to Switch Over Your Mortgage

Some say it is the busiest time of the year, getting ready for Christmas. Not too much time to do anything else.

Also, if you are like many with a mortgage either fixed or varible you have been reading that there are great sales on interest rates. You have been meaning to look into these rates but just have not had the time.

OR

You just saw your dream house and now is the time to buy.

Good news is here.

Phone up a mortgage broker. Also known as mortgage professonal and mortgage consultant.

Why?

A mortgage broker does all the work. They work with your schedule. The first consultation takes about 1 hour. Can be done over the phone, or you can ask the mortgage broker to email you an application and you can fill it out and send it back.

The next phase is any questions the mortgage broker has about your application. Probably 15 minutes.

The mortgage broker will let you know which documents that they will need and can pick up at your place of work,home, or you can fax or email them. 15 mins

Next, the mortgage broker sends in your application and documents. Gets back to you about any other documents the lenders are requesting. Probably another 15 mins.

You send your paperwork to the mortgage broker or the mortgage broker drops by your place of work or home and picks up paperwork. Maybe 15 mins for that transaction.

Mortgage broker sends in the paperwork. If all looks great, the mortgage broker will email or call you and let you know it is time to make an appointment with a Lawyer or Notary Public.

You make an appointment with a Lawyer or Notary Public to sign the final paperwork. That would be about 15-30 mins for that appointment.

You are done. All the work has been done for you and you have a mortgage with great rates. The time it takes you is less than 3 hours to save money on your mortgage.


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

More Storage Ideas For Your Home

Weather you are thinking about up sizing, down sizing or just staying put, new storage ideas are always welcome and needed. They have a few more inventions at our local Building stores that can make any house organized.
This article has some great ideas on how your home can be made clutterfree.

Your home has a place for everything; you just need to find it

Calgary HeraldNovember 17, 2011

BY JACQUELINE LOUIE, FOR HOME RENOS

Whether it’s under the deck or above the garage, companies are finding unique ways to help homeowners store their stuff.

“Good organization is the best use of space,” says Don Fetherstonhaugh, president of The Garage Store, a company that focuses “every inch of space inside a garage, to make it more useful and more attractive.”

He says in a normal household, the garage is usually the largest space. “But it is also usually the most under utilized space in the house,” says Fetherstonhaugh.

Typically, garages become an overgrown closet for junk, he says.

Because of people’s busy day-to-day lives, the first thing they see in the morning when heading off to work, is usually the garage. It is also the first thing they see when they return from a hard day’s work.

An unorganized garage sets the whole day in motion, says Fetherstonhaugh.

By spending time sorting through storage solutions, homeowners can be shown how to double or triple the storage space by properly utilizing wall and ceiling air space, he adds.


WALL SPACE

Manufacturers have introduced a series of flat PVC polymer wall storage systems that come with hundreds of different accessories to hang items such as golf bags, fishing rods, bicycles, rakes, hoses, electrical cords and miscellaneous tools.


UPPER AIR SPACE

“We take a look at the ceiling and try to adapt a storage system to the individual ceiling space,” Fetherstonhaugh says.

“That storage can be massive. For example, you can have a large unit that will hold 40 or more large rubber plastic containers for a nice, neat storage nook.”

There are also motorized storage devices that will allow you to lift items up to a storage platform.

The latest gadget, is a four-by-eight storage system called a motorized rack. You press a button and the entire rack comes down to the floor; you load it up with your things, and motorize it back up into place again.

Bicycles are one of the more difficult things to store in a garage, because when stored “they are gangly devices.”

However, motorized storage devices can take bikes two at a time and lay them flat onto the ceiling of the garage, says Fetherstonhaugh.


TRUSSES

Homeowners can also utilize the expertise of a contractor or renovation company to custom build storage solutions and make the most of any living area.

Using custom designs and fabricated specialty truss systems, Star Building Materials is able to include storage space in the truss when building a garage, giving the homeowner immediate bonus storage space.

“They are eight-foot two-inches wide and three-feet high and allow you to utilize all the space up top,” says Star Building Materials sales manager Lorrie Wood. “It uses a space in the garage which would otherwise be useless.

“You’re able to store all kinds of things like Christmas trees, empty boxes, seasonal items and other household items.”


UNDER DECK

While most homeowners find the space under their decks are catch-alls for stray balls, dog toys and grass clippings, it can also be used to store seasonal items.

In fact, Star Building Materials under-deck storage kit featuring a two-by-four foot drawer that can be used to store such things as toys and seasonal items.

“It puts it in a nice neat box — like a children’s toy box,” Wood says.


JUST ASK

The bottom line is if you can’t think of where to store your stuff, just ask. Home building stores and renovation companies have numerous ideas when it comes to storage options, whether it is closet organizers, storage under the stairs or in the rafters.

© Copyright (c) The Calgary Herald



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

Small Business Saturday

Today is small business saturday. A day to shop locally to boost the sales of the small businesses in your town, which in turn will boost our economy. This is the 2nd annual Small Business Saturday.

Time to shop.

Thank you

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

Purchase PLUS Program

A purchase plus program is designed for the person who has found a house and wants to make improvements.
The house could be at a lower cost because of the repairs it may need to make it liveable to you.

Right now there is a great special going on, but you need to move fast because the house must close by December 31 2011.

Can't find a home that is exactly what you want. Purchase a home and plan to make inprovements and you can still get this low rate. 5 year fixed quick close special is available for purchase plus improvements at 3.29% o.a.c., must close on or before December 31, 2011, owner occupied homes, there is no premium to the rate for this purchase plus program.

Please don't delay if you would like to take advantage of this deal.


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

TMG- The Mortgage Group Canada Inc.

TMG- The Mortgage Group Canada Inc.

I have written alot about mortgages, how to get them, interest rates, etc. But, I don't think I have written enough about the company I am affiliated with. I don't want to say company I work for because it just doesn't feel that way, in fact sometimes it feels like they are working harder for me then I am for them. It is more of a partnership with TMG giving awesome and never ending support in information, ideas and learning then I would ever have imagined. Every week to furthur our education they have an online real time web/TV program in which we learn about different areas about the mortgage broker business. The support is just outstanding. All this so we as mortgage sub brokers will flourish and be successful. Then if we are successful our Company TMG will be successful. As you read more you will see they are very successful.

The next time you see the TMG logo you will know that there are only professional mortgage brokers working for the best interest of their clients and supported by the TMG company, all obtaining the best for each client.
Truly a company that cares.

The background history of TMG is as follows:


WHO IS TMG?
A Canadian Mortgage Company Legacy

Canadian owned and operated since July 29, 1990
British Columbia company, based in Vancouver
TMG The Mortgage Group has helped a quarter million Canadians get the right mortgage solution to suit their financial needs, earning a respected reputation with lenders and clients as leading-edge mortgage experts that deliver on the company’s Vision and Values.

National team of over 700 qualified and accredited Mortgage Professionals and brokers providing residential and commercial mortgage services.

Access to over 50 Mortgage Lenders
TMG The Mortgage Group has a large Network of Lenders, including Banks, Credit Unions, Financial Institutions and Lenders, products and the lowest rates.
Access to this Network allows TMG’s Mortgage Professionals to help almost a quarter million Canadians find the mortgage that best suits their financial needs

Leaders in mortgage innovation and technology
TMG has developed proprietary tools and software to quickly and efficiently source and manage financing solutions.

Providing Mortgage Education across the country
From Global TV appearances and up-to-the-minute industry news to informative introductory videos, TMG is widely considered a mortgage education resource.

Operating with the highest levels of professionalism, ethics and integrity

Won the CMP Award for National Mortgage Brokerage of the Year, 2011


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

Credit Score

When checking credit scores some of my clients hold there breath, get anxious, close their eyes -- they just don't want to know the damage.
Credit scores are often viewed as negative. The unknown. You even have to pay to see what your credit score is, that must mean it is like rocket science.

There is no mystery surrounding credit scores. It is easy. If you have paid your bills and on time your credit score will be great.

It is when you hit a hard couple of years that things just didn't work out and some bills did not get paid on time or at all. Now where is your credit score at?

For those who would like to estimate what their credit score is as of today there is this cool Credit Score Rating Tool from www.moneyville.ca Remember it is an estimate only.

The other cool thing about this calculator is you can use it as a future predictor.
For example today it tells you you have a credit score or 480, because some credit cards were not paid on time or you are maxed out on all your credit cards.
In 2-3 years from now you think your credit cards will be paid off and you will not miss any payments, you can put those numbers in adding 2-3 years in your answer and see where your credit score will be in the future.

Here is the link to the Credit Score Rating Tool

www.moneyville.ca/finan​cialcalculators/borrowing/8575​58

It is fun to play with it.

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

Veteran's Poppy Fund

A donation will be going to the Veteran's Poppy Fund for each mortgage started between November 1-11 2011.










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

Buyers Market

On my last Blog writing I mentioned the subject Buyers Market. This blog will explain what a buyers market is and what terms you can ask for.

Buyer's Market is when there are more houses up for sale than there are buyers. The buyers have choice in what they choose and have time to ask for terms since the house will probably not be sold under them. The homes are slow to get sold and the sellers who really want/need to sell will listen to what the buyer is asking for. The sellers will negotiate to get their house sold.

What should you be doing in a buyers market while looking for a home.

1) Choose and have a Realtor you like and trust. When it comes time for negotiating for a house you want your Realtor to be there for you.

2) Have your Realtor send you updates. Especially updates on price changes.

3) Make a list of what you must have in your future home. Make sure your Realtor knows this list so both of you are not wasting your time. If you don't know what you like then go to several "open houses" to find out. ( http://www.comoxvalleyopenhouses.com ). The more clear and concise you can be to your Realtor the better chance they will only show you what you want , or a close enough choice from the range of homes on the market.

4) Go to homes that have been on the market for 30 days or more. These sellers are looking for a sale and you may get what you want for less. Renovations may be affordable to get you exactly what you want. Make sure you are realistic on what renos you can do and what renos would have to be jobbed out.

5) If you are interested in a house make sure your Realtor has the comparables for that nieghbourhood. These are the dollar amounts that the houses sold for in that nieghbourhood in the last 6 months to a year.

6) Ask for a credit. Don't lowball on the price, people just get annoyed at that and shut down. If you don't like the carpets, paint color or the appliances then just ask for a credit since you will need to change that to make it your home. Be realistic in the cost of replacing and negotiate with the sellers. If your offer is fair, then they usually will have no problems with the offer.

7) Ask for things that are already in the home. If the window treatments are not included but you like them , then ask that they stay. Appliances are usually negotiable. Go through the list to see what is staying with the house. Then if you like something ask if it can stay with the house. Everything is negotiable and the sellers will think you are serious in buying and will be open to new ideas.

8) Closing costs. Ask that the seller pay for your part of the property taxes for the rest of the year or any other costs associtated with you buying that house.

9) Building Inspection. If you are serious then you will probably have a building inspection. If the inspection comes up with some minor things and the building inspector has a money figure to back it up, ask for a credit on that money figure or ask that those minor repairs be done by the time you take over the house.

10) Short acceptance period. Just because the housing market has slowed down doesn't mean you can't ask for a fast reply on your offer. A 24 hour limit should be plenty for the sellers. Their house has been on the market for awhile and they should be ready to deal. If not they may not be ready to sell and you are wasting your time negotiating with them.

These are just some of the ways to get a house plus extras in which a seller does not feel "lowballed". Each house is unique. Your realtor may have more suggestions for credits or a lower price. Be open to ideas that will get the house price lower and you closer to owning the home.

Thank you

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

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