Dominion Lending Centres launches first responder program

General Michael Distefano 24 Jun

By Paul Lucas 24 Jun 2021 Mortgage Broker News

Dominion Lending Centres (DLC) launches a new first responder mortgage program.

Coming into effect yesterday, June 23, the program is available to first responders across Canada with the corporation claiming it offers competitive rates, alongside cashback incentives.

“The DLC Group of Companies are incredibly grateful to all of the amazing first responders across the country,” said executive chairman and CEO Gary Mauris. “We wanted to create a program specifically for you as a token of our appreciation and gratitude. We thank you for your ongoing service and sacrifice and hope that the burden of the pandemic eases in the coming days and weeks.”

It involves an online application process that allows the likes of paramedics, correctional service officers, search and rescue personnel, registered physicians and nurses, police officers, and firefighters the chance to connect with a mortgage professional in their area in as little as 15 minutes.

“Our Dominion Lending Centres advertising highlights the tireless work first responders across Canada do to keep us safe and the sanctuary that is their home and family,” said Kate Brady, vice president of marketing of the corporation. “We have a full suite of English and French digital, print, and television commercials and are connecting with a host of first responder professional associations to ensure we increase the awareness around this special program.”

For more information about this program or any other exclusive DLC, mortgage program give us a call at 905 357 5366 or visit us online at www.betterthanbankmortgage.com

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Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
1-4687 Queen St Niagara Falls On L2E 2L9
T 905 357 5366 F 905 357 6654 C 905 246 5363

 

Don’t Fall into the Appraisal Trap and bidding war on your home purchase

Mortgage Tips Michael Distefano 31 Mar

Armed with a hard-earned down payment, pre-approval from a lender, and a wish-list of what you “must” have in your dream property, window shopping for homes can be an exciting experience.

And then it happens. You find the perfect place in your desired neighborhood. Unfortunately, there are 10 others who have also fallen in love with “your” new home. And so, the bidding war begins.

Let’s say you win that battle, with the final selling price magically within your pre-approved amount as set by your lender. It is at this stage that buyers believe the hard work is over, and it is only a matter of signing a few papers to close the mortgage so you can finally get the keys to your new home. But that is not the case for some.

If an appointed appraiser assesses that the property value is less than what you offered in a high-stakes bidding war, you could be in trouble. Should this happen, your lender will only loan you as much as the home is actually valued at (minus your down payment) – not what they’d originally offered in your pre-approval.

For example, a buyer has a $30,000 (5%) down payment and is approved for a mortgage of $570,000. He/She finds a property, with a $600,000 price tag. The appraiser, however, believes the property to be only worth $575,000.

What does this mean for the buyer?
The maximum mortgage amount that the lender will provide on this new appraised value is :
95% of $575,000 = $546,250

The total amount required to close this deal is: $600,000 – $546,250 = $53,750

Amount needed to close deal – buyer down payment = Additional funds required
$53,750,000 – $30,000 = $23,750

The buyer only intended to put down $30,000 but now needs an additional $23,750 to secure a mortgage for this transaction. At this point, you have two options: borrow money from someone, or be forced to walk away from the deal (and risk losing your deposit, in the process). Not having the resources in this situation is what we refer to as “appraisal risk”.

So, how can buyers avoid this nightmare?

First, you should avoid overpaying. But how can you do this in a competitive market? A good real estate agent should understand the “real” value of the property and the neighborhood you want to buy in.

Having a larger down payment can also reduce your risk in appraisal cases. You can put less money down and use the extra cash to make up the shortfall. However, on the flip side, this means you might have to pay a higher CMHC insurance premium (premiums are mandatory for down payments under 20% and are charged in 5% tiers).

The big trouble arises when a buyer only has a 5% down payment saved and makes a firm offer to buy because then there is little room to get extra funds from their own sources; this is when a buyer has an extreme appraisal risk.

For that reason, we would never recommend any buyer enter a bidding war with only a 5% down payment. And, if they do, we suggest having a financing condition within the deal. While this puts the buyer at a disadvantage to those with a “clean” (condition-free) offer in the bidding war, it is the risk they, unfortunately, have to take if they really want that property.

Even buyers at the 20% down payment threshold face appraisal risk in bidding wars. If an appraisal comes in lower than the purchase price, the buyer then has to put down less in order to make up the shortfall, and purchase CMHC insurance when they otherwise would not have had to.

Your broker or agent cannot control what an independent appraiser values a property at. Neither can buyers. Knowing the risks before making a firm offer in a bidding war, however, can help you prepare and plan for every outcome.

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
1-4687 Queen St Niagara Falls On L2E 2L9
T 905 357 5366 F 905 357 6654 C 905 246 5363

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

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UNLOCKING EQUITY THROUGH REFINANCING

General Michael Distefano 12 Mar

RENEWING VS. REFINANCING A MORTGAGE
What’s the difference between refinancing and renewing your mortgage? The terms are often used interchangeably, but they are different processes:

Renewing a mortgage applies to the current mortgage loan. You will be looking for a new term and interest rate based on the amount remaining in your mortgage at the end of your term. This is a great time to look at ways to reduce the principal amount by making a lump sum payment or changing payment amount and frequency.
Refinancing a mortgage is a renegotiation of an existing mortgage loan and is usually used to access the equity in the home or take advantage of better mortgage terms. It’s a more involved process than renewing, especially if the loan amount is changing because it is essentially a new mortgage.
REASONS TO REFINANCE A MORTGAGE
There are many reasons you may wish to refinance your mortgage. For example:

You may be in the middle of a higher interest term and want to take advantage of a lower rate. Although there may be prepayment penalties to get out of the current mortgage, it might be worth it for the long-term savings of a lower rate. Your mortgage broker can help you weigh the options.
If you have a lot of high-interest debt, you may wish to refinance and consolidate your debt into a single payment at a lower rate.
You may wish to access the equity in your home to fund a renovation, purchase a second property, or invest.
PROS AND CONS OF REFINANCING A MORTGAGE
There are advantages and disadvantages to refinancing a mortgage. What you consider a benefit depends on your situation. Here are some things to consider:

Additional costs of refinancing
When you refinance your mortgage, there may be some additional fees to keep in mind. Depending on how close you are to the end of your mortgage term, there might be penalties for paying out your term early. Your lender may also require you to get an appraisal on your home because the amount they will refinance is based on the current appraised value.

Peace of mind from refinancing
Finances can be a major stressor and removing financial pressure is priceless. Consolidating debt into a single monthly payment has its benefits. You’ll likely spend less of your monthly budget on debt payments, and you won’t be juggling your money trying to pay down multiple debts (which may pay more toward interest than principal). That said, if you can’t manage your debt payments now and you’ll be paying roughly the same with the new mortgage, you’re putting your home at risk.

The new interest rate on a refinanced mortgage
When you refinance, you’ll be doing so at current interest rates. Are they higher or lower than what you have now? Sometimes it’s worth breaking your current mortgage term because the interest savings will more than cover the pre-payment penalties. Even a slightly higher rate might be okay if you’re consolidating a lot of high-interest debt. Either way, do the math with an experienced mortgage broker who can help you weigh your options.

Longer amortization
Refinancing may mean you’re stretching out your amortization to keep the payments affordable. Before you commit, look at your entire financial picture. For example, will it affect your retirement?

Requalifying for a refinanced mortgage
Refinancing your mortgage to incorporate debt means you’ll need to qualify for the new mortgage amount. If your circumstances have changed and you don’t think you’d qualify with a traditional lender, talk to your mortgage broker about alternative lenders.

Alternative lenders are refinancing experts and will work directly with your broker to understand the story behind the refinance and find a solution. They are more willing to consider self-employment and non-traditional sources of income, and they are also a little more flexible with debt ratios.

HOW MUCH CAN YOU BORROW AGAINST THE EQUITY IN YOUR HOME?
Generally, the amount you can borrow is 80% of the appraised value of your home. This is the current market value, not the amount you paid when you purchased it.

The formula is:

(Value of home x 0.80) – Remaining mortgage amount – Loans secured against home = Home equity

Multiply the value of your home by 80% (0.80).
Subtract the amount remaining on your mortgage.
Subtract any other loans you have secured against your home, such as a line of credit.
The amount remaining in the equity you have in your home.

For example, if your home is valued at $400,000 today, multiply that amount by 0.80 to get $320,000. Now if you have $150,000 left to pay on your mortgage, subtract that to get $170,000. Now let’s say you have an RV or car loan for $20,000 secured against your home. That gives you $150,000 of equity in your home.

($400,000 x 0.80) – $150,000 – $20,000 = $150,000

REFINANCING A MORTGAGE IS NOT A HELOC
You might be wondering, “Why not just get a home equity line of credit (HELOC) instead of refinancing?” You could, but there are some advantages to refinancing.

Both options will give you access to the same amount of equity in your home.
Both options will likely require an appraisal and take about the same amount of paperwork.
Refinancing will probably give you access to the money at a lower interest rate.
Refinancing gives you access to the funds one time. A HELOC allows you to borrow, pay back, and borrow again. If you’re borrowing to consolidate debt, you might be better served by refinancing so that your only option is to repay it (and not re-spend it).
WORK WITH YOUR MORTGAGE BROKER TO FIND YOUR BEST OPTIONS
Refinancing your mortgage is not as simple as visiting your bank. You should view it as though you are shopping around for a mortgage.

WHAT IS A MORTGAGE BROKER?

This is when you are well served by the expertise of a mortgage broker. First, we will do the legwork to find you and find the best rate you qualify for. we have relationships with both traditional banks and alternative lenders, which opens more options for terms and rates. A mortgage broker will also consider your immediate needs and your long-term goals when helping you select a mortgage. We are in your corner.

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
1-4687 Queen St Niagara Falls On L2E 2L9
T 905 357 5366 F 905 357 6654 C 905 246 5363

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

APPLY ONLINE ANYTIME
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Bank of Canada Holds Target Rate Steady Until Inflation Sustainably Hits 2%

General Michael Distefano 15 Jul

The Bank of Canada under the new governor, Tiff Macklem, wants to be “unusually clear” that interest rates will remain low for a very long time. To do that, they are using “forward guidance”–indicating that they will not raise rates until capacity is absorbed and inflation hits its 2% target on a sustainable basis, which they estimate will take at least two years. As well, they indicate that the risks to their “central” outlook are to the downside, which would extend the period over which interest rates will remain extremely low. The Bank also made it clear that they are not considering negative interest rates. The benchmark interest rate remains at 0.25%, which is deemed to be its the lower bound.

The Bank is also continuing its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds. The provincial and corporate bond purchase programs will continue as announced. The Bank stands ready to adjust its programs if market conditions warrant.

With the benchmark rate at its effective lower bound, the Bank’s quantitative easing is the way it is lowering mid- to longer-term interest rates, reducing the borrowing costs for Canadian households and businesses. The Bank assumes that the virus will be with us for the entire forecast range, which is two years.

The Bank released its new economic forecast in today’s July Monetary Policy Report (MPR). The MPR presents a central scenario for global and Canadian growth rather than the usual economic projections. The central scenario is based on assumptions outlined in the MPR, including that there is no widespread second wave of the virus in Canada or globally.

The Canadian economy is starting to recover as it re-opens from the shutdowns needed to limit the virus spread. With economic activity in the second quarter estimated to have been 15 percent below its level at the end of 2019, this is the most profound decline in economic activity since the Great Depression, but considerably less severe than the worst scenarios presented in the April MPR. Decisive and necessary fiscal and monetary policy actions have supported incomes and kept credit flowing, cushioning the fall and laying the foundation for recovery.

Mincing no words, the MPR acknowledged that the COVID-19 pandemic has caused a “worldwide health-care emergency as well as an economic calamity.” The course of the pandemic is inherently unknowable, and its evolution over time and across regions remains highly uncertain.

In Canada, the number of new COVID-19 cases has fallen sharply from its April high, and the economic recovery has begun in all provinces and territories and across many sectors. Consequently, economic activity is picking up notably as measures to contain the virus are relaxed. The Bank of Canada expects a sharp rebound in economic activity in the reopening phase of the recovery, followed by a more prolonged recuperation phase, which will be uneven across regions and sectors (Figure 1 below). As a result, Canada’s economic output will likely take some time to return to its pre-COVID-19 level. Many workers and businesses can expect to face an extended period of difficulty.

There are early signs that the reopening of businesses and pent-up demand are leading to an initial bounce-back in employment and output. In the central scenario, roughly 40 percent of the collapse in the first half of the year is made up in the third quarter. Subsequently, the Bank expects the economy’s recuperation to slow as the pandemic continues to affect confidence and consumer behavior, and as the economy works through structural challenges. As a result, in the central scenario, real GDP declines by 7.8 percent in 2020 and resumes with growth of 5.1 percent in 2021 and 3.7 percent in 2022. The Bank expects economic slack to persist as the recovery in demand lags that of supply, creating significant disinflationary pressures.

Bottom Line

Governor Macklem said in the press conference that what he wants Canadians to take away from today’s Bank of Canada’s actions is “Canadian interest rates are very low and will remain very low for a very long period”. The reopening of the Canadian economy is well underway. Economic activity hit bottom in April and began expanding in May and accelerated in June. About 1.25 million of the 3.0 million jobs that were lost in March-April, were added in May and June.

Some activities, including motor vehicle sales, have already seen a strong pickup since April. Likewise, housing activity fell sharply during the lockdown but is beginning to recover quickly. In contrast, some of the hardest-hit businesses, such as restaurants, travel and personal care services, have only just started to see improvements in recent weeks and are expected to continue to face significant challenges.

The chart below, from July’s MPR, shows that household spending patterns have shifted since the onset of the pandemic. Some of these shifts might last. In the central scenario, the effects of the downturn and lower immigration hold down housing activity over the next few years. After a near-term boost from pent-up demand, residential investment slowly increases as income and confidence recover.

Dr. Sherry Cooper Chief Economist, Dominion Lending Centres

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

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CMHC Makes It More Difficult To Get An Insured Mortgage

General Michael Distefano 5 Jun

Canadian Mortgage and Housing Corporation (CMHC) is tightening the criteria to get a mortgage with less than a 20% down payment. Any potential home buyer with less than a 20% down payment must purchase default insurance on their loan and have a minimum down payment of 5%. CMHC is a federal Crown Corporation that provides such default insurance. Its mandate is to help Canadians access affordable housing options. Providing mortgage insurance to home buyers is one of its main activities. Mortgage default insurance protects lenders in the event a borrower ever stopped making payments and defaulted on their mortgage loan–a very infrequent occurrence in Canada.

What Are These Changes In Underwriting Policies

Effective July 1, 2020 the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

The maximum gross debt service (GDS) ratio drops from 39% to 35%

The maximum total debt service (TDS) ratio drops from 44% to 42%

The minimum credit score rises from 600 to 680 for at least one borrower

Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes

CMHC goes on to say that “to further manage the risk to our insurance business, and ultimately taxpayers, during this uncertain time, we have also suspended refinancing for multi-unit mortgage insurance

Suffice it to say that this batters buyer and seller confidence and, all other things equal, has a net negative impact on the near-term housing outlook.  DR Sherry Cooper ( Chief Economist, Dominion Lending Centres) believes these changes are unnecessary to protect the prudence of Canada’s home lending practices. Mortgage delinquency rates are meager, and even the Bank of Canada’s forecast is for delinquencies to remain less than 1% of all outstanding mortgages. Moreover, home buyers with jobs who meet former qualifications would undoubtedly have a longer than two-year time horizon when buying their first homes. They were already qualifying at the posted rate that is more than 250 basis points above the contract rate. If anything, the pandemic recession assures that interest rates will remain very low over the next two years.

For information on how this new change can affect your homeownership abilities please call me at 905 357 5366 to discuss any of your mortgage-related questions, I am always available for free consultations

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

APPLY ONLINE ANYTIME http://betterthanbankmortgage.com/mortgages/how-to-apply/

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Improving your credit score isn’t as hard as you think!

General Michael Distefano 15 Jan

If you’re credit challenged but want to get into the housing market, it can be a tough road. But improving your credit to a point where a lender will give you a chance, is very doable.

Basically, what you need to know is a score above 680 puts you in a good position to get financing, while below will make it tough and improvement is needed.

Your credit score tells lenders some basic stuff about your credit: How long you’ve had credit, your ability to pay back that credit and how much you owe. And so your credit score is affected by how much debt you’re carrying in regards to limit, how many cards or tradelines you have and your history of repayment. If you’re a young person and new to the world of credit, consider the 2-2-2 rule to help build up your credit. Lenders want to see two forms or revolving credit, like credit cards, with limits no less than $2,000 and a clean history of payment for two years. It’s also good to note, a great credit score will also include keeping a balance on all those cards at any given time below 30 per cent of the limit.

To ensure your score stays in playoff form, make sure to pay off any collections, like parking tickets, and correct any old or incorrect reporting on your credit score by contacting Equifax to have it removed.

Some people also forget their credit cards have an annual fee and fail to pay them off too. This cannot

be stressed enough, if you want to keep or attain a good credit score, you have to pay your credit cards or tradelines on time regardless of whether you owe $1 or $1 million.

Debt and credit often go hand-in-hand. There is also such a thing as good debt and of course bad debt. Good debt consists of things like a mortgage, investment property, and college/university tuition. Bad debt includes, retail store credit cards, cars, and vacations. There is a tendency when things get really bad to consider declaring bankruptcy or a consumer proposal. A consumer proposal is a formal, legally binding process to pay creditors a percentage of what is owed to them. You really want to avoid these two options. Instead, there are companies out there that will perform the same function and negotiate your debts, but it won’t impact your credit or carry the stigma of bankruptcy or a consumer proposal.

Lastly, if you already own a home and have some equity, but you’re still drowning in credit debt, consider refinancing your mortgage. Sure, you might not get the great rate you have now or you might get dinged for breaking your mortgage early, but using the equity in your home to get rid of high interest credit payments could keep more money in your pocket at the end of the day. To change your debt-to-income ratio, consider stopping all credit card activity and don’t rack up any additional borrowing.

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 miked@beatthebankmortgage.ca

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

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Home ownership pride can pay off

General Michael Distefano 3 Dec

Any prospective homebuyer knows this situation well. You’re set up for a viewing but when you get there the condition is less than ideal. Maybe the toilets are dirty, or the cluttered kitchen is hiding its full potential. Immediately, you’re turned off and you’ve moved on to another property.

For the owner, that’s sale opportunity lost.

In a lot cases, buyers can’t really see beyond what’s in front of them. A messy place not only makes your home harder to see, it can cost you money.

Depending on who you talk to in the real estate industry, a messy home compared to a clean house could fetch up to a $20,000 swing.

That’s a lot of money for a weekend of washing walls, decluttering, taking the trash out, running the vacuum and putting some elbow grease.

There are few simple things during this time of year that can help make your home stand out above the rest.

1) While winter can be lovely, it can also get a little messy. Especially around the yard with all those snowy and muddy days. If you want to boost the curb appeal before prospective buyers step foot in your home, you’ll want to make sure you clean your walkways. Don’t be afraid to take advantage of a dry day to keep your garden looking presentable. A little maintenance goes a long way!

2) Winter is all about colour. It’s time to put away all those bright colours for the more earthy tones of

the season. If you’re not sure, those are browns, greys, orange and greens. Change your bed spreads, pillows and rugs to match the season. It doesn’t hurt to throw up a fresh coat of paint or an accent wall in an olive or burnt orange hue.

3) Winter also seems to have a smell. And you can recreate that in your home. The fresh scent of cinnamon or ginger are perfect for the season. You don’t want to go overboard, but nothing feels more welcoming then a home that smells of love and food. You can also decorate your home with the fruit of the season in a decorative bowl. It doesn’t even have to be in the kitchen. It can be right at the front entrance.

4) The change of season is a great time to make sure your maintenance is up to date. For the exterior, that means cleaning your gutters, windows and deck. If you have a pool, making sure it’s properly covered and tucked away for the winter. Inside, make sure the furnace and all your electrical components are working including your appliances. Nothing turns off a buyer more than looking at a home in disrepair.

5) The days are short and the weather tends to be a little unpredictable, so you’ll want to ensure your home is bright. If you’ve got some burned out lights both inside and out, replace them. And before a buyer comes in for showing, turn on all your lights. Keep your blinds and curtains open to let in as much light.

If you’re about to put your prized possession on the market, treat it like one and take pride in ownership.

For more information on how we can help with Home Ownership please contact us at 905 357 5366.

DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 Website www.beatthebankmortgage.ca

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

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Fixed or variable on your mortgage ?

General Michael Distefano 5 Nov

It’s the first and only thing anyone usually asks when you talk about your mortgage: What’s your rate? While everyone can recall their rate off the top of their head, it’s the only detail of the mortgage they remember or care to know. Though the rate is obviously important, your mortgage is so much more than a rate, and if you’re not paying close attention, it can cost you money.

Before we dive deeper, let’s talk fixed rate vs. a variable rate and which one is better. Well, that all depends. First-time homebuyers and older homebuyers typically love the stability of a fixed rate. Keep in mind, seven-in-ten fixed mortgages are broken before the term ends. A fixed rate for five years is fine as long as you stick with a lender that’s going to calculate the penalty if you break your mortgage on the contract rate versus the Benchmark rate. That’s because the Benchmark rate, or as it’s sometimes called the Bank of Canada rate, is higher than your contract rate. Typically a credit union or monoline is the right choice for this mortgage.

Variable rates are great with any lender as it just comes down to who offers the best discounted variable rate. There’s a pretty simple way to decide whether a variable or fixed makes sense, based on rate alone. It’s called the 50-basis point rule.

Basically, take the best fixed rate out there and the best variable rate out there and subtract the two. If the number is less than 50 basis points, there is strong argument to go for a fixed rate. However, if the difference is more than 50 basis points, there’s a solid case to go with a variable.

Pretty simple right? What’s not as simple is the personality of your mortgage. It may not seem like it, but yes, your mortgage has a personality. Think of it like a shiny sports car. It may look amazing when it rolls off the lot, but as the years go on, does it meet your daily needs? Besides your mortgage rate, you need to consider portability, and whether it can be blended and extended and how penalties for breaking the mortgage are calculated. When people start looking for a mortgage, they’re usually getting advice from friends or their parents, and the only question they’re asking is, what’s the rate? But if they don’t know the details of the mortgage like the ones listed above, you can tell them to stick their head in the sand, because they’re giving you bad advice. And if a mortgage broker is only fixated on the rate, you’re working with the wrong one.

Life happens and our circumstances change. You really want to make sure the mortgage will work for you in the future before you sign on the dotted line.

Call Michael Distefano for all your mortgage related question today 905 357 5366 or email him at miked@beatthebankmortgage.ca 

Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

APPLY ONLINE ANYTIME http://betterthanbankmortgage.com/mortgages/how-to-apply/

Check out our full line of DLC Visa cards http://betterthanbankmortgage.com/visa-cards/

BCREA: Mortgage Stress Tests Limiting Impact of Falling Rates

General Michael Distefano 25 Sep

 By Steve Randall 25 Sep 2019 Broker News

Mortgage rates are expected to remain at roughly their current level through to the end of 2020 according to a new forecast.

The British Columbia Real Estate Association’s Economics team says that, notwithstanding any major changes to the economic landscape, the 5-year qualifying rate is set to remain at 5.19% in the fourth quarter of 2019 with the 5-year average discounted rate at 2.77% (down from 2.86%).

Falling bond yields in the third quarter have helped reduce the 5-year contract rate with some fixed-rates of as low as 2.25%. However, those borrowers that are subject to the B-20 mortgage stress test will see the qualifying rate hold steady despite the lower rates offered by lenders. The lack of variation in the qualifying rate is “a puzzle” the report says.

BoC on hold
BCREA Economics does not see the Bank of Canada making any changes to interest rates in the near term but notes that major changes in the economy may prompt a cut. For now though, employment and inflation data support a hold-steady for monetary policy.

The report calls for the Canadian economy will post trend growth of about 1.8% in 2020, though “significant downside risks remain due to elevated trade tensions and their consequent impact on exports and investment.”

 

Michael Distefano
Mortgage Agent and Manager of operations
DLC BTB Mortgage Solutions FSCO 12039
Niagara’s largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363

Download My FREE Mortgage Toolbox App https://www.dlcapp.ca/app/michael-distefano?lang=en

APPLY ONLINE ANYTIME http://betterthanbankmortgage.com/mortgages/how-to-apply/

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Should You Use Your Home Equity To Consolidate Debt?

General Michael Distefano 16 Sep

Understanding home equity; what is it and how do I access it?

If you’re a homeowner you’ll probably have equity. Equity is the difference between the value of your home and what you owe against it; essentially equity is the portion of the home that you “own”.

There are different channels to access your home equity and a few types of products that you may qualify for depending on your unique situation.

Most homeowners start by approaching their bank for a conventional mortgage or home equity line of credit, though with increasingly stringent regulation the banks are declining more borrowers than ever.

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