Changes for Borrowers With The New Mortgage Rules

 The Department of Finance has posted this Q&A on its website.

Mortgage changes concerns for borrowers.

Q. I already have an insured mortgage. How will these changes affect me?
A. Mortgage insurance is good for the life of the mortgage. Borrowers renewing their insured mortgages will not be affected by these changes. For example, if a borrower had a 30-year amortization and there are 27 years remaining on the mortgage, the mortgage can be renewed with a 27-year amortization, as long as no new funds are being added to the mortgage.

Q. What is required to qualify for an exception to the new parameters?
A. The new measures will apply as of July 9, 2012. Exceptions will be made to satisfy a binding purchase and sale, financing or refinancing agreement where a mortgage insurance application has been made before July 9, 2012. While the changes come into force on July 9, 2012, any mortgage insurance applications received after June 21, 2012 and before July 9, 2012 that do not conform to the measures announced today must be funded by December 31, 2012.

Q. Will a purchase and sale agreement dated prior to July 9, 2012 be considered binding if there are outstanding conditions that have not been fulfilled prior to July 9, 2012?
A. Yes, if the date on the purchase and sale agreement is earlier than July 9, 2012, and a mortgage insurance application has been made prior to that date, the new parameters will not apply, even if the conditions of the agreement have not been waived.

Q. Will the new refinancing rules allow a borrower with a mortgage above 80 per cent loan-to-value (LTV) to refinance by extending the amortization period?
A. No. Effective July 9, 2012, borrowers will not be permitted to refinance a mortgage above an 80 per cent LTV, unless the borrower has a binding refinance agreement dated prior to July 9, 2012, and a mortgage insurance agreement has been made prior to that date.

Q. I have a written mortgage pre-approval from a lender, dated before July 9, 2012 with a 30-year amortization. Will I still be eligible for a 30-year amortization if I don’t sign an agreement of purchase and sale until July 9, 2012 or later?A. No, a mortgage pre-approval without an agreement of purchase and sale is not sufficient to qualify for a 30-year amortization. You may have a 30-year amortization only if your agreement of purchase and sale is dated before July 9, 2012 and you have made a mortgage insurance application before July 9, 2012. You may wish to discuss with your lender to revise your mortgage pre-approval using the new parameters announced today.

Q. Will the new parameters apply to assignment (“switch” or transfer) of a previously insured loan from one approved lender to another?
A. No. As long as the loan amount and amortization period are not increased, the new parameters will not apply to a switch/transfer/assignment of the mortgage to a different lender.

Q. If I sell my current home and buy another, will the new parameters apply if I transfer the outstanding balance of my insured mortgage to the new home?
A. As long as the outstanding balance of the insured loan, the LTV ratio and the remainder of the amortization period are not increased, the new parameters will not apply when the mortgage insurance is transferred from one home to another.

Q. What if I need to increase the amount of my insured loan when I sell my current home and buy another?
A. In this situation, the new parameters will apply for any insured loan.

Q. If I bought a condo that is not expected to be built for another two years, will the new parameters apply?
A. If you bought a condo and have made a mortgage insurance application on or before June 21, then the new parameters would not apply. If you buy a condo and make a mortgage insurance application after June 21, the new parameters will apply if the mortgage loan is not funded by December 31, 2012.

http://www.fin.gc.ca/n12/data/12-070_2-eng.asp

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

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

365 Things To Do In The Comox Valley  https://www.facebook.com/#!/cvmortgages

More Canadians Locking in Low-Rate Mortgages, Reducing Debt

Garry Marr  May 30, 2012 – 1:01 PM ET |Last Updated: May 30, 2012 5:57 PM ET

Highlights of CAAMP report:
- 23% of mortgage borrowers voluntarily increased their regular payments
- 19% made lump sum payments
- 10% made both lump sum payments and increased their regular payments
- 50% of borrowers pay at least $100 per month above their required payments
- 74% of borrowers who renewed in the last year saw their rate decrease by an average of one-half percentage point
- 83% of Canadians have at least 25% equity in their home
Canadians have been taking advantage of record-low interest rates to lock in their mortgages, a new survey suggests.
The Canadian Association of Accredited Mortgage Professionals, in its annual spring release, says among the 3.8 million Canadians with a fixed rate mortgage, 14% chose to lock in during the past year.
“This data supports comments by lenders that they have high numbers of new borrowers who start with variable rate mortgages but soon opt for the security of fixed rates,” says CAAMP in the report. Overall, 29% of those with mortgages have a variable rate leaving them with exposure to any changes in the Bank of Canada’s lending rate which the prime rate — used in those loans — tends to track.
The survey also found Canadians are making significant efforts to reduce their debt with 23% of respondents saying they voluntarily increased their regular payments, 19% making lump sum payments and 10% doing both.
For those who increased their regular payments, the average amount of the increase was $400-$450 per month. With about 5.85 million mortgage holders in Canada and roughly 1.35 million increasing their payments, it translates into about $7-billion per year. Lump sum payments averaged $12,500, and with about 1.1 million people making these payments, that equals about $13.75-billion.
“Despite daily warnings in the media about mortgage indebtedness — or maybe because of them — Canadians are making responsible decisions about their mortgages and they’re exhibiting confidence in their own situations,” said Jim Murphy, chief executive of CAAMP. “We should feel encouraged by this behaviour — it means Canadians are well positioned to weather a potential rise in interest rates.”
Overall Canadians have $994-billion in mortgages on their primary residences and $161-billion in controversial home equity lines of credit or HELOCs which allow them access to the equity in their home.
The total equity takeout from residences was $46-billion in the past year with renovations accounting for $17.25-billion of the money used. Another $10-billion was used for investments and $9.25-billion for debt consolidation.
Amortization periods, which have been legally shortened by Ottawa for insured government backed loans, are shortening. Lengths are down 20% but Ottawa legally reduced the length a mortgage could be amortized from 40 to 30 years over the past three years.

Craig Alexander, chief economist with Toronto-Dominion Bank, said the locking of mortgage rates has protected consumers from future rise in rates. “It’s a very positive thing that people are shifting to fixed rate because it provides greater security in protecting from upside risk in interest rates,” he said.
The survey also found despite the fact three of the major banks are either out of or backing out of the mortgage broker channel, it still is an important segment of the market. Brokers account for 26% of the market overall and captured 31% of activity in 2011.
The report is based on information gathered by Maritz Research Canada in a survey of 2,000 Canadian consumers in April and May 2012.
Posted in:Mortgages

http://business.financialpost.com/2012/05/30/canadians-locking-in-low-rate-mortgages-reducing-debt/

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

TMG- What We Know About You – Mortgage Consumers

The 2012 Mortgage Consumer Survey prepared by Canada Mortgage and Housing Corporation (CMHC) tells those in the mortgage industry a lot about you, the consumer – your buying habits, where you go to look for information, the kind of information you look for, etc.

The online survey was completed over February and March of 2012 by more than 3500 mortgage consumers who had completed a mortgage transaction in the previous 12 months. Here are few highlights of that survey:

Online Activity

• When researching mortgage information, 71% of consumers went online; this is up from 65% in 2011.
• Facebook was the most popular social media network used to gather information, especially among first time home buyers.
• The two most actively searched items were interest rates at 86% and mortgage options at 73%.
• And not surprisingly, 38% of 18 to 24-year-olds used mobile mortgage apps.

Using Professionals

• Consumers are turning more to mortgage professionals to help them with their mortgage decisions.
• Consumers are asking a lot more questions about mortgages – 71% asked about differences between mortgage products; 67% wanted information about mortgage loan insurance; and 67% asked about penalty clauses.
• Consumers like referrals and most referrals come from a family member or a financial planner.

The Mortgage Process

• Before making a decision about a mortgage, consumers spend about five weeks doing research; first time home buyers spend about eight weeks.
• Consumers are now more prepared when meeting with their mortgage professional and come armed with a list of questions and the necessary documentation.
• Eighty per cent of consumers felt confident they made the best decision with their mortgage product.

Mortgage Free

• Thirty-one per cent of mortgage holders made lump-sum payments or increased their regular payments to pay off their mortgage sooner.
• Nearly half of all buyers set their monthly payment higher than the minimum to pay off their mortgage sooner.

The survey findings are positive indicators that consumers are increasing their knowledge about financial matters. Four in ten home buyers went online and did a financial self-assessment. And a whopping 80% felt they had a good understanding about how much they could afford and what options were available to them.

Consumers who educate themselves about the financial options available will learn how to make consistent, informed financial decisions and that will help them to achieve their goals. This survey shows that Canadian consumers are on the right track.

The survey also makes clear that mortgage professionals are in a unique position to help educate consumers about their mortgage options and ways to pay off that mortgage sooner.

Thanks to CMHC for conducting the survey and TMG for putting results in a blog.

CMHC
http://blogger.mortgagegroup.com/2012/05/what-we-know-about-you-mortgage.html






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

Comox BC, Allowing Secondary Suites

http://comox.ca/hall/latest-news/2012-05-18-secondary-suites/secondary-suites

Comox BC, has allowed home owners to put in a secondary suite into their detached single family homes.
What are the benefits of this:
- families that could not afford a mortgage will now have help in paying their mortgage
-seniors who want to stay in their home will have increase income.
-affordable rent for seniors
-affordable rent for small families

The Comox Valley is notorious for low wages. This will help as rents will be more in line with the low wages.

There are rules to follow to make your house into 2 suites, but as long as you follow those rules you will be able to get help in paying your mortgage by having renters in part of your home.

For mortgage options:

1. Purchase Plus Improvements-- you want to buy a home in Comox and you want to build a secondary suite.  This program will allow you to borrow 10% of the purchase price up to a maximum of $40,000.00 to do the additional upgrades to make your home 2 suites.
2. Refinance Plus Improvements- If you have equity in your home but do not have the cash to do the improvements to make your home into 2 suites. You can refinance your home to do the improvements.

Both of these programs offer the same low interest rate as a mortgage. This way you do not have to deal with expensive credit cards or lines of credit.
For more information give me a call or email .
www.KROEMERmortgages.com


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

Gifts For Mom- Mother's Day- Sunday May 13 2012

While Mom may not be getting a house for Mother's Day, here is an interesting survey on what Canandians do get mom for Mother's day.
Gifts for mom: Are you as generous as the average Canadian?

TORONTO— The Canadian Press

Published Wednesday, May. 09, 2012 6:00AM EDT

Seventy-three per cent of Canadians are getting mom a gift this Mother’s Day, according to BMO’s 2012 Mother’s Day survey. The average amount we’re willing to spend on mom: $84.16.
Men are true momma’s boys, planning to spend $105 on their mothers. Women, on the other hand, are only willing to shell out $62.

The most generous province? Ontario, where the average spent on a gift is $93.61. The Atlantic provinces spend the least, with a budget of $70.41.

Of course, a bigger gift doesn’t mean a bigger heart.
“The difference in spending is more likely a measure of practicality than it is of love,” said Jennifer Weisman, director, BMO Bank of Montreal.

Mother’s Day is bigger than Valentine’s Day and second only to spending leading up to the Christmas holidays. It typically generates the second highest volume of weekend shopping in the year as measured by dollar value.

So what kind of gifts can mom expect this year? Canadians say they plan to:
– Take mom out to a restaurant (28 per cent). If you plan to take her out for a meal, be sure to make a reservation. Mother’s Day is one of the busiest days of the year for dining out. There was a 22 per cent spike in restaurant spending from the same period the previous month last year.
– Bring her flowers (27 per cent). No surprise here. With spring buds blooming across the country, May is the perfect time to show your love and appreciation with flowers. Last year there was a 237 per cent increase in spending on flowers during the Mother’s Day weekend compared with the same period in the previous month.
– Make her a home-cooked meal (18 per cent). Whether it is breakfast in bed or full-on Sunday dinner, it’s all good, as long as mom doesn’t have to make it.
– Give other gifts or cards (3 to 4 per cent). Aesthetic services, candy and chocolate, jewellery, cards and other gift ideas all trailed far behind the top three choices.
– No gift (15 per cent). Respondents didn’t offer reasons for foregoing a gift, but the numbers were surprisingly high. This could be due to the mother being out of town on holidays, or simply that families celebrate their moms every day and don’t make a practice of observing these types of occasions.

The survey was completed from April 23-26, 2012, using Leger Marketing’s online panel, with a sample of 1,500 Canadians. A probability sample of the same size would yield a margin of error of 2.5 per cent 19 times out of 20.
The Canadian Press

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 -- Check out the special deal on my website.
Your Mobile Mortgage Professional in The Comox Valley now with an Office.

Did the bank decline your mortgage application?

If the bank has declined your mortgage application, please come talk to me. I have a several lenders to choose from and usually I can find a lender to work with almost any situation. My service is mobile , or I can meet with you in my office when it is convenient for you. 1.250.650.4182.

Check out my sweet deal on my website  www.KROEMERmortgages.com

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

Your Mobile Mortgage Professional in The Comox Valley with an Office TM

Investor Insight: Tax 101 For Basement Units

Want to buy a house with a basement suite?  For most people this is a good way of getting your mortgage paid down.  It can make good money sense to have half or more than half of your mortgage payments, paid by someone living in your basement. You also get a bonus of having tax perks with your basement suite.

If you are thinking about a mortgage with a basement suite, give me a call.  There are some options for this type of mortgage.

Mortgages with a low rate
Mortgages with a fixed rate for a 10 Year Term- still under 4%
Purchase Plus Improvements - borrow extra money to make a suite or update a suite
First Time Home Buyer


Investor Insight: tax 101 for basement units


Check out my website for a special deal for the months of May and June
 www.KROEMERmortgages.com


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

Facebook page:  https://www.facebook.com/#!/pages/Angela-Kroemer-AMP-Mortgage-Professional-12506504182/174796809243771

365 Things to do in the Comox Valley:  https://www.facebook.com/#!/cvmortgages

No downpayment-- read on

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

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

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

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

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

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

.

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

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

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

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

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

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

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

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

www.mortgagegrp.com

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

Headlines About Mortgages- Google Alerts

About a month ago, I learned about Google Alerts. It is a very handy tool to have.

Monitor the Web for interesting new content
Google Alerts are email updates of the latest relevant Google results (web, news, etc.) based on your queries.
When using google alerts you go to http://www.google.com/alerts

It can also be used as a security measure. Many Realtors listings' have been hijacked. These guys take the listings and advertise  the house is for rent for a great price. Almost too good to be true. Renters pay them rent and of course the house is not for rent and the renters have lost their money. T
For google alerts, you can put in as many alerts you like. So in the Realtors case, they would put the address of the house listings and their name. So if anyone on the web is advertising any of those items the Realtors would get an alert that the address is being used or their name is being used.

So for me of course, I have an alert for Mortgages In Canada. Comes to my email box once a week.
Mortgages are big news. The headlines sell papers. Articles get read especially the doom and gloom articles. Below are a few headlines I read this morning from just 1 google alert:

Mortgage market tiptoes toward subprime
Canada home prices fall in March, sales up-CREA
Be very afraid of the Canadian housing bubble
Vancouver weighs on market as average Canadian home sale price falls
Canada Home Resales Rise 2.5% M/M in March, Up 1.6% Yr/Yr

The great news is there is news. You can read several articles with a different opinions, helping you educate yourself in the subject of mortgages. Or you can be like some and be afraid of these headlines, and not think about going for a mortgage when the rates are at a all time low.

What a lot of these articles are trying to articulate is this :

Interest Rates are Low= Low Mortgage Payments
Interest Rates are Low=You can buy a more expensive house with the same earned dollars
Property values are high which means that property values may decline for a few years
Interest Rates can only go up or stay the same depending on the economy
Interest Rates will go up and you won't be able to requalify for a new mortgage at the end of your 5 year term

Now depending on your situation, it may have a good outcome or a bad outcome.

If you bought your house and rates are the same but property values drop, this would only affect you if you wish to sell short term. The housing market corrects itself. 

The big one that most are writing about is that Interest Rates will go up and when it is time to renew, the mortgage payments will not be affordable or you will not qualify. Plus if property values take a dive you will be in double jeopardy of losing your house. You will owe more than what your house is worth and you will not be able to afford the new higher interest rate payments. Yes, just like in the United States.

I have a solution for that. It is called a low interest rate term of 10 years. Most people take out terms of 5 years and in the next 5 years no one knows what will happen with rates, property values,job security, etc. The market may not have enough time to correct itself.

With a 10 year rate it is long term. You will have 10 years of equity in your home. If you have made the maximum prepayments each year you will be farther ahead. You will have 10 years of the same low payments. Right now under 4%.  After 10 years of payments- you will not owe more than what the house is worth, you will have equity in your home, you will qualify for another mortgage with higher interest rates.(assuming you earn the same or more). It is a good situation to be in. So if you are not a gambler, and want a more secure , stable long term payments, give me a call or email me and we can sit down and talk about the 10 year mortgage term. Also for those that have a home and want to refinance to a 10 year term, give me a call and lets work out the numbers.



Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.angelakroemer.blogspot.ca

www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

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

Face Book Fun Page: :https://www.facebook.com/#!/cvmortgages

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