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

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

Reason #2. Trust.

We work for you. A trusted mortgage advisor serves to represent you in your negotiations with the mortgage lender, or multiple mortgage lenders. An employee at a lending institution is always going to be working in the best interest of that institution, which is not necessarily your best interest. Sometimes cross-selling incentives can cloud the process if you are obtaining a mortgage from a representative that may also specialize in other products, like investments loans or credit lines. Sometimes these representatives are not actually licensed to specifically deal in mortgages. Licensed mortgage advisors are also paid by the lending institution, but in a different way. In almost all cases, we are paid a commission by the lender that we match you with, only after your mortgage is funded. This means that we only get paid when you are fully satisfied with our product offering, all conditions are met, and the deal is done. We will never abandon you during the financing process, and we will always be by your side for any hurdles along the way. We will walk you through every part of the transaction, beginning to end.

A good mortgage broker is educated and experienced in all things mortgages. We are licensed, regulated, and held to a high level of ethical conduct and character. Our reputation is paramount, and our honesty and integrity are our business. We will always be transparent and open with you.

We are your trusted advisor for the life of the mortgage. If at any time after funding you have questions or changes in circumstances, you can rely on us to be there to present options. Life can get complicated. In the event of a potential relocation, financial hardship, or marital breakdown, it is important that you have an experienced mortgage advisor there to offer honest advice about the various options that might be available to you.

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

Sarah

Reason #1. Unbiased Advice

Mortgage Brokers are industry professionals that provide free, independent financial advice. It doesn’t cost you a cent to call us for professional advice or a second opinion. In most cases, purchasing a home is the largest investment you will make, and it is critical that you understand the details of the financial options available to you before you sign away. Mortgage Brokers are licensed to specifically deal in mortgages, and we are regulated by provincial and national government bodies. Your mortgage is our specialty. We don’t need to sell you a chequing account, or a car loan, and we won’t be transferred to a new department in 6 months. We do mortgage planning, and we do it at no cost at all to you, in most cases, as we are paid by the lender that we match you with.

Shawn Stillman said it well in a Home In Focus magazine interview:

“In no other industry can investors get financial advice for which they don’t have to pay. In the mortgage industry, the lender pays for it. It doesn’t cost the investors anything to get a second opinion. Brokers get paid by the lender, so it doesn’t cost the client anything to use a broker’s services. From start to finish, investors get impartial advice with multiple options and it’s free, so why would you not go ahead and do that? 

If you look at most of the mistakes that investors make, they occur because the investor didn’t have enough information. Especially when you’re investing, it’s critical to know everything before making the final call; that means looking at the little details that help point investors in the right direction.”  Home In Focus: Canadian Mortgage Environment, March 30th 2017.

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

Sarah

1. Unbiased Advice. Mortgage Brokers are industry professionals that provide free, independent financial advice. It doesn’t cost you a dime to call us for professional advice or a second opinion.

2. Trust. We work for you. We are paid on commission, only when you are satisfied with our product offering and the deal is done.

3. Availability. We don’t keep “banker’s hours”. We are always only a phone call or an email away.

4. Expertise. Getting your financing approved to its fullest potential.

5. Negotiation. A good mortgage broker is also a savvy negotiator. We represent you to negotiate best terms, conditions, and rates.

6. Options, Options, Options. Who doesn’t like options? A good broker has a variety of lenders and products to suit your needs.

7.  A-B-C Mortgage Solutions. Not everyone has a perfect application for an “A” mortgage product. Many people, for a variety of reasons, will need the option of alternative or private lending.

8.  Reading the Fine Print. We make sure you understand it.

9.  Ongoing Service Commitment. You are our client for the life of the mortgage!

10.  $$$$ Money$$$$! Yes we have extremely competitive rates! We can save you money!

Each week, for the next 10 weeks, I am going to be elaborating on each point! Please stay tuned, and as always, do not hesitate to call or email if you have any questions!

Sarah

Turn the HOUSE you LIKE into the HOME you will LOVE.

Government restrictions on refinance guidelines have reduced the equity homeowners can access for renovations. High ratio buyers especially, in a flat market, may wait years before the house has appreciated enough that an 80% LTV refinance provides any money. If home buyers want to do upgrades, the time of purchase may be the only opportunity, for years they can add the cost of the renovations to the mortgage.

Use the Purchase plus Improvements to:

• Add a new or updated kitchen
• Develop the basement for more living space or visiting friends & relatives
• Update or replace the carpeting or maybe adding hardwood
• Add a garage or workroom
• Add a media room or “man cave”
• A new additional bathroom with maybe a jetted tub
• A new roof
• A more efficient central air or furnace system
• Add new siding, eaves or fascia
• Replace or updating doors and windows
• Add major landscaping

If the property isn’t exactly what you want: renovate, add, or upgrade it!

There are specific requirements for the purchase plus improvements program, please call to learn the details. Exceptions to the generally understood parameters are available.  Renovating up front may be your buyers best option.

What Mortgage Insurance Means for You

Mortgage insurance is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending on the insurer. There are three mortgage insurers-Canada Mortgage and Housing (CMHC-public), Genworth (GE-private) and Canada Guaranty (CG-private). A purchase with less than 20% down payment will always require mortgage insurance, and at times a lender will require a purchase of 20% or more down payment to be insured.

CMHC:

100% backed by the government

• Maximum $600 Billion in exposure across Canada

Genworth:

• 90% backed by the government
• Maximum $300 Billion in exposure across Canada

Canada Guaranty:

• Canadian owned by the Ontario Teachers’ Pension Plan along with National Mortgage Guaranty Holdings. Previously owned by AIG
• 90% backed by the government
• Maximum $300 Billion Exposure

Insurer Guidelines and Restrictions:

CMHC:

• CMHC will only allow one insured mortgage per person; this means a client who may have had a mortgage for 15 years that was originally insured through CMHC may not be able to co-sign for their children through CMHC if that mortgage has not since been refinanced to remove the original CMHC insurance.
• CMHC does not insure mortgages for Rental Pool Buildings or where there is a high percentage of nonowner-occupied units
• CMHC will not insure age-restricted buildings
• CMHC will consider buildings with post-tension cables or condo conversions
• Will not insure purchases $1,000,000 or higher
• 25-year amortization only

Genworth & Canada Guaranty:

• Both insurers will consider two insured mortgages, but the file must be very strong, and the properties must have good equity positions
• Both will consider insuring age-restricted buildings
• Neither insurer will consider insuring properties that have post tension cables
• They will not insure in complexes involving rental pools or where there is a high percentage of nonowner-occupied units
• Will not insure purchases $1,000,000 or higher
• 25-year amortization only

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

The Bank of Canada has increased the qualifying benchmark rate for mortgages to 5.34% effective immediately.  This is not the actual rate borrowers are offered but the rate used to qualify high ratio mortgages and other mortgages when the contract rate plus two per cent is not used.

In most cases, this means, at maximum debt service ratios a 2% smaller mortgage compared to the current 5.14% benchmark. It is important to understand the total mortgage amount offered a borrower can vary from lender to lender. Some lenders use different maximum debt service ratios. Some lenders will apply the old benchmark with existing pre-approvals. Some lenders are using the new benchmark even for existing pre-approvals.

We always work with you and your buyers to obtain the mortgage that suits their needs.

Contact me for details or strategies to get the biggest mortgage available.