11 Oct

Dr. Sherry Cooper: Poloz Holds The Line On Rates

General

Posted by: Sarah Boudreau

VANCOUVERSept. 5, 2018 /CNW/ – As expected, the Bank of Canada held its key overnight rate this morning at 1.5%, asserting that July’s surprising spike in CPI inflation to 3% was in large part because of a jump in airfares. The Bank expects inflation to move back towards 2% in early 2019, as the effects of past increases in gasoline prices dissipate. The Bank’s core measures of inflation remain firmly around 2%, consistent with an economy that has been bumping up against full capacity for some time. Wage growth, as well, remains moderate.

Incoming information on the global economy is consistent with the Bank’s forecast in the July Monetary Policy Report (MPR). The U.S. economy has been particularly strong, growing at a 4.2% rate in the second quarter. This compares to Canada’s growth rate of 2.9% last quarter, which follows a 1.4% pace of economic expansion in Q1. Second quarter growth in the U.S. was boosted by strong consumer spending and business investment. In Canada, third quarter growth is expected to slow temporarily, mainly because of fluctuations in energy production and exports.

Indeed, this morning, Statistics Canada reported that Canada’s trade deficit all but disappeared. A sharp export gain to the U.S. combined with a decline in imports took Canada’s overall merchandise trade deficit to its lowest level since December 2016.

Canada’s merchandise trade surplus with the U.S., targeted by President Donald Trump in NAFTA negotiations, grew to the widest in a decade. Stats Canada said that gains in global exports were led by automobiles and energy, almost all of which were bound for the U.S. Crude oil led the energy gains as prices rose 9.4% in July. The import decline was driven by aircraft and metal ores.

These figures are likely to impact the resumption of bilateral talks in Washington regarding NAFTA, as the Trump administration has negotiated a new deal with Mexico and has threatened to leave Canada out and impose stiff auto tariffs if Prime Minister Justin Trudeau’s government does not make concessions, especially on dairy supply management and dispute mechanisms.

The Bank of Canada highlighted that “elevated trade tensions remain a key risk to the global outlook and are pulling some commodity prices lower…The Bank is also monitoring the course of NAFTA negotiations and other trade policy development closely, and their impact on the inflation outlook.”

It was wise of the Bank of Canada to hold its powder dry at today’s policy meeting given the continued uncertainty on the NAFTA front. An agreement on NAFTA would provide the central bank with more comfort in moving ahead with a hiking cycle that has already lifted the benchmark overnight rate four times since mid-2017.

Noting that “activity in the housing market is beginning to stabilize as households adjust to higher interest rates and changes in housing policies”, the Bank reaffirmed that the economy is doing well enough to require higher interest rates in the future to achieve the inflation target. Another rate hike could come as soon as the next policy meeting on October 24th.

It is widely expected that a NAFTA deal will have come to fruition by then, opening the way for the Bank to resume monetary tightening. According to Bloomberg News, “Investors see near-certain odds that by October, the Bank of Canada will raise borrowing costs for the fifth time since the hiking cycle began in July 2017, with as many as two additional increases by mid-2019.”

For more information about Dominion Lending Centres visit www.dominionlending.ca.

About the Dominion Lending Centres Group of Companies:
Dominion Lending Centres Group of Companies is Canada’s#1 national mortgage company with more than 5,700 Mortgage Professionals in 700 offices spanning the country. Launched in January 2006, DLC Group of Companies quickly grew to fund more than $38 billion in mortgage volume in 2016 – the largest originator in Canada. DLC continues to be recognized by PROFIT Magazine as one of Canada’s Fastest-Growing Companies – making the PROFIT HOT 50 list of Emerging Growth Companies (2009 & 2010), PROFIT 200 (2012) and PROFIT 500 (2013 – 2017). DLC and our agents are recognized annually at the CMP Canadian Mortgage Awards – the Oscars of the Canadian mortgage brokering landscape.

About Dr. Sherry Cooper: Dr. Sherry Cooper took the position of Chief Economist, for Dominion Lending Centres in early 2015. Prior to joining DLC, Dr. Cooper was the Chief Economist with one of Canada’s largest financial institutions and is well versed in the mortgage sector. Dr. Cooper has an M.A. and Ph.D. in Economics from the University of Pittsburgh. She began her career at the United States Federal Reserve Board in Washington, D.C. where she worked very closely with then-Chairman, Paul Volcker, a relationship she maintains today. After five years at the Federal Reserve, she joined the Federal National Mortgage Association as Director of Financial Economics. 

SOURCE Dominion Lending Centres

13 Sep

New To Canada

General

Posted by: Sarah Boudreau

By Karen Penner and Heather Hellings

Welcome to Canada!

Canada is made up of hundreds of thousands of people and some did not start in Canada but have made it their home. Buying a home, especially when you are new to Canada can be mind boggling, BUT, we have a mortgage for you!

The New to Canada Program is designed to help new Canadians purchase their first home sooner and become established faster.

What are the qualifications for this program?

Firstly, you must have immigrated or relocated to Canada within the last 3 to 5 years to qualify for the New to Canada Program.  You must have proof that you have been working full time in Canada for at least 3 months and that you are not on probation with your employer. The lender will require a letter of employment from your employer with your salary and employment status. Copies of your valid work permit or landed immigrant status card (front and back) will also be a requirement.

Down payment is a minimum of 5% and at least 5% of the funds must come from your own savings and be verifiable with 3 months worth of bank statements from a Canadian Bank.  Some lenders will allow the 5% to be a gift from an immediate family member and gift letter from the lender will be required.  Please speak to your broker in advance when a gift is being used. That way we can provide you with information for monies coming from other countries and ensuring you are following all the banking rules and regulations.  With a minimum of 5% down payment you will need default insurance and that can be provided by Canada Guaranty, Genworth or CMHC (Canada Mortgage and Housing).  Each of these insurers offer programs that will work with the lender.

The lender will need to see your credit bureau and as you are new to Canada you may be just starting that, so we will require an international credit report from your country of origin.  Just starting up your credit, we can assist you with that by providing valuable information to get you ready for the road to homeownership. You can obtain an International or US Bureau by contacting Equifax and they will point you in the right direction.  Your international credit report is taken into consideration by the lender as it will show that you are a responsible borrower and have kept your accounts in good standing.  We would advise that a letter of recommendation from your current bank be done as that is also very helpful in the process. If you cannot provide an international credit bureau the lender will ask you for to confirm your good standing by providing 12 months history of bills that must be paid on time (rent, utilities, cable or insurance premiums).

Working with your Jencor Mortgage Advisor will provide you with options and answers to your questions. Our advice is always free, we are here to help you make home ownership a reality.

Remember, when looking for your home, use a professional to assist with not just financing but the search as well.  Realtors are great negotiators and can also help you determine your requirements in a home, “needs vs wants”.  Do you need to be close to schools, public transportation, etc.

This process can take some time but again, that is why you have a Jencor Mortgage Advisor at your fingertips!

By the way, Welcome to Canada!!

Original Post: https://www.jencormortgage.com/blogs/mortgage-blog-canada/209527-new-to-canada#.W5q0Cs5KjIU

 

15 Aug

Reason #10 To Consult a Mortgage Broker: Money

General

Posted by: Sarah Boudreau

Reason #10 To Use a Mortgage Broker: Money

Everyone always wants the best interest rate, that’s a given, and yes, often a mortgage broker can actually get you a better rate from your very own bank than you can. Mortgage brokers also have access to a very large pool of lenders that cannot be accessed by the general public. Many of these are smaller, otherwise known as Monoline Lenders, who often offer bulk discounts on mortgage products and offer rock bottom rates. interest rates are changing on a daily basis. We are always up to date with the rates and terms each lending institution is offering.

Aside from rate, there are many other factors to consider when choosing a mortgage. Payout penalties, for example, can be a huge cost if you terminate your mortgage before the term is up. It is important to understand how your mortgage lender calculates the penalty. A mortgage broker can save client ten’s of thousands of dollars over the term, just by placing the mortgage with a lender who has a more lenient penalty, or into a mortgage term that has a lesser penalty.

Utilizing pre-payment privileges can also be an integral part of the overall mortgage planning. A good mortgage broker will help you strategize this and have you mortgage paid off as quickly as possible.

The various insurer programs like the Purchase-Plus-Improvements and the CMHC Green program can save buyers a ton of money by creating the opportunity to capitalize improvements and renovations into the low-rate mortgage, rather than carrying the cost on a much higher rate credit card or line of credit.

Don’t leave money on the table- make sure you call a trusted mortgage advisor for a free mortgage consultation before you sign with your bank.

As Always, let me know if you have any questions or concerns.

Sarah

8 Aug

Reason #9 To Consult a Mortgage Broker: Ongoing Service Commitment

General

Posted by: Sarah Boudreau

Reason #9 To Consult a Mortgage Broker: Ongoing Service Commitment

Once a broker places a mortgage for a client, you are a client for the life of that mortgage! Mortgage brokers encourage clients to call us at any time for advice on their existing mortgage, and we will keep the client up to date on any mortgage news and how it pertains to their situation. A client may be in a variable rate or adjustable mortgage product. Brokers can provide guidance as to whether locking in the rate is in the client’s best interest or if its more favorable to stay with their current product.

 

A mortgage broker will always encourage their clients to call for advice on future plans for any additional purchases as well. With the ever-changing mortgage guidelines, brokers can help navigate the process for any new properties and subsequent mortgage financing for vacation properties, rental properties or a second home for a child attending university.   Life is unpredictable and mortgage brokers are there for their clients to assist with all of life’s circumstances. A mortgage broker has experience in dealing with many different situations such as refinancing to renovate a home, a new marriage, a divorce situation that requires a spousal buyout or perhaps an out of province move.

 

Brokers like to keep in touch with their clients in order to pass along any pertinent mortgage news or changes that are taking place in the market. Brokers want their clients to be aware and knowledgeable about how any changes may affect them currently or in the future. An experienced broker is always transparent with their clients, providing the information and options available to help their clients make the best decision given their circumstances. Because of this, brokers will be in touch various times throughout the year as changes pop up in the market.

 

Knowledge is powerful, therefore brokers provide an ongoing service commitment to keep in touch with their client base and pass along as much knowledge as possible.

 

As always if you have any questions or concerns, let me know.

 

Sarah

 

2 Aug

Reason #8 To Consult a Mortgage Broker: Understanding the Fine Print

General

Posted by: Sarah Boudreau

Reason #8: Understanding the Fine Print

Obtaining a mortgage is a very paperwork intensive process. You will be initialing, signing, and waiving things like never before. A good mortgage broker will never tell you to just “sign here”.  We will educate you and make sure you understand everything you are signing, as a knowledgeable third party.

Your documentation package for review will include the following:

  • Lender’s Commitment including all of the terms and conditions, which can vary from lender to lender.
  • Full cost of borrowing disclosure. How much does your mortgage actually cost you over the term of the loan. What is the APR on your loan?
  • Your property appraisal (if applicable).
  • The mortgage life and disability insurance options that might be available to you.

The final review and signing of documents for either a purchase or a refinance is done at your lawyer’s office. As your mortgage broker, we ensure that you arrive for your meeting at the lawyer’s office educated and well prepared to finalize the mortgage.

As always, if you have any questions or concerns let me know.

Sarah

26 Jul

Reason # 7 To Consult a Mortgage Broker: A-B-C Lending Solutions

General

Posted by: Sarah Boudreau

Reason #7: A-B-C Lending Solutions.

We have relationships in place with a variety of lenders including major banks, trust companies, credit unions, monoline lenders,  alternative lenders and private lenders.

Not everyone has a perfect application for an ‘A’ type mortgage product. For example, self employed individuals with lower taxable earnings or those with a bruised credit history may not fit under ‘A’ criteria. There are still several lending options available for those who may not be able to secure mortgage financing with a traditional ‘A’ lender.

A great mortgage broker has strong relationships with various alternative lenders to assist in these situations. Slightly higher interest rates and fees are associated with these type of applications. Alternative lending is best positioned as a short term solution until the clients get their credit back in line or has established the required income needed to qualify with an ‘A’ lender.

Due to the new mortgage underwriting guidelines, private lending has also become more prevalent. Private lending is more expensive than alternative lending in the short term, but can be a good option for those that don’t fit A or B qualifying criteria. Real estate investors and ‘flippers’ can benefit from these private lending solutions.

To summarize, it is valuable to have an experienced mortgage broker working on behalf of the client as brokers have a broad range of lenders to work with and can offer clients the best combination of service, price and product features available depending on the clients situation and their future goals.

As always, let me know if you have any questions or concerns.

Sarah

18 Jul

Reason #6 To Consult a Mortgage Broker: Options, Options, Options

General

Posted by: Sarah Boudreau

Reason #6:  Options, Options, Options.

A good mortgage broker has access to a variety of lenders and products to suit your needs. Everyone wants the best rate, but a good mortgage broker will help you choose your lender and mortgage product based on other factors as well as rates.

A few of the other factors to consider, for example:

Term: Fixed or variable rates and open/closed terms: There are advantages and disadvantages to be discussed and considered.

Portability: Do you plan on moving to a new home within the term of the mortgage?

Pre-Payment Privileges: Flexibility to make additional lump sum payments against the principle and/or increase your monthly payment amount throughout the term.

Payout Penalties and IRD Calculations: Understanding how your penalty will be calculated if you break the mortgage before the end of the term.

Interest Compounding: Semi-Annual versus Monthly.

Structuring Multiple Components: Would you like to attach a home equity credit line to your mortgage? Perhaps you may wish to diversify your home investment by setting up your mortgage as part variable and part fixed rate.

Front or Back End Insurability: This has become a very complicated factor with the most recent wave of government rule changes. Insurability can impact many things, including your rate and the option to transfer your mortgage down the road.

Special Insurer Programs: In the event of a purchase, there are various Insurer programs that may be available to you. The flex-down to help with down payment, or a purchase-plus-improvements product to help with renovations might be right for you. The CMHC Green program is becoming more and more popular for those making environmentally friendly upgrades.

It is important to know all of the options before you decide on a mortgage product. A trusted mortgage broker will guide you through this, and provide you with a variety of solutions to suit your short and long term goals.

As always, let me know if you have any questions or concerns.

Sarah

12 Jul

Reason #5 To Consult a Mortgage Broker: Negotiation

General

Posted by: Sarah Boudreau

Reason #4. Negotiation

A Mortgage Professional represents the client and ensures the mortgage secured best suits their needs.

A good mortgage broker is a savvy negotiator. Mortgage brokers are independent, trained professionals licensed to represent and provide the best advise for the clients’ mortgage needs. Mortgage brokers know where the best rates can be found, and we represent the client to negotiate best terms, conditions and rates. Often times, a broker can even find better rates at the client’s existing bank. Not only does this save the client money, but invaluable time.

Mortgage brokers represent the customer. Because we are not employees of a lending institution, brokers are not limited to one specific product. Instead, we seek out the best lender package to suite the client’s specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company or Private Funds. There is a wide assortment of options and features available to home-buyers today and shopping around takes a lot of time and effort. Given the new government rules that were implemented on January 1, 2018, the mortgage process can be intimidating. It pays to work with a mortgage professional who will represent the client and negotiate on their behalf to ensure the mortgage is the best option for them. Choosing the wrong mortgage option can cost thousands of extra dollars. Mortgage brokers are trained professionals who can help save the client’s money.

As always, let me know if you have any questions or concerns.

 

Sarah

5 Jul

Reason #4 To Consult a Mortgage Broker

General

Posted by: Sarah Boudreau

Reason #4. Expertise.

Getting your financing approved to its fullest potential.

Many people leave their bank branch meeting feeling disappointed that they have been declined, or that they are not approved for the financing amount they would like, or that they believe they can reasonably afford. As of lately, the recent waves of government mortgage rule changes have put more and more consumers in this position. Most applications are not “cookie-cutter” anymore. Are you familiar with your bank’s mortgage lending guidelines? For example:

Debt Servicing Ratios: Each lender has different maximum values they consider for both your GDS (gross debt servicing ratio) and TDS (total debt servicing ratio) to their comfort, within government guidelines. This means each lender can have an individual amount they will allow you spend on your new mortgage and associated costs, and an individual maximum on other debts like credit cards and car payments etc.

• Default Insurers: For those with less than 20% down, you require default insurance and are subject to their approval of your application. In Canada we have 3 insurers. Not every lender uses all 3 of the insurers.

• Qualification Criteria: Knowing how a lender will qualify your income sources or liabilities (self-employed, pensions, child/spousal support paid or received, vehicle payments, etc.) is crucial. The way these are calculated varies from lender to lender and can drastically impact your debt servicing ratios, and therefore your buying power.

• Supporting Documentation: Paperwork can be a pain. A good mortgage broker will work with you and the paperwork you are able to provide and represent you best. Each lender has different documentation requirements, this is very important to consider, especially with the various programs for those that are self-employed.

• Legal Closing Criteria: Your lawyer will advise you of all pertinent issues prior to closing, but a good mortgage broker will have insight in advance on the lender specific requirements, such as property tax payments, condo documents and file specific affidavits that may be required.

A good mortgage broker considers all of the above and more before submitting your application. You don’t need to worry about it. We work for you to get you the best options available, with as little stress as possible.

As always, if you have any questions or concerns, let me know.

Sarah

 

28 Jun

Reason #3 To Consult A Mortgage Broker

General

Posted by: Sarah Boudreau

Reason #3. Availability.

We don’t keep “banker’s hours”. We are always only a phone call or an email away for our clients and business partners. You won’t be left in the dark during your financing process, we always keep you updated. Whether you are getting pre-approved for your first purchase, under a timeline to get financing in place for your dream home, or refinancing a property in a vast rental portfolio, we are there to manage the application and keep you abreast to any issues or developments, at all times.

We value our clients, business relationships and referral partnerships. Jennifer Bergstrom founded Jencor Mortgage in 1987. Jen instilled the philosopy in our company that clients, realtors and builders always need to be kept up to date on the status of the file at all times. Since it’s inception, Jencor has always worked very closely with realtors and builders to create an extended team of reliable professionals for our mutual clients.

Nobody wants to feel left out of the loop or uninformed during the financing process. It is stressful to have to wait for a call back and having no one to talk to, especially if you are under a timeline for financing approval. No one wants to find out at the very last minute that the mortgage is not actually approved, or that you are going to need to a contract extension. If this is happening to you, you need to consult a trusted mortgage advisor.

As always, let me know if you have any questions or concerns.

Sarah