Did you know we can use the

with some of our mortgage loan products ?

The purpose of the Home ownership Program is to:

Make home ownership a reality for low to moderate income households in Niagara
Ease the demand for rental housing by assisting renter households to buy affordable houses
Offer down payment assistance for homebuyers through a 5% forgivable loan to a maximum of $16,964
Encourage developers to build affordable housing

More info:

Eligible Buyers

To be eligible for a down payment loan a buyer must:

• Be a Canadian Citizen, Landed Immigrant or have Refugee Claimant Status with no outstanding removal order
• Be 18 years of age or older
• Not own or have an interest in other residential properties or owe arrears to a government assisted affordable housing provider or Niagara Regional Housing
• Currently be renting and looking to buy a sole and principle residence in Niagara
• Have a gross household income below $77,600 and assets below $30,000
• Be eligible to obtain a mortgage
• Provide documents to prove eligibility
• Agree to register loan on title for 20 years

Eligible Homes

• New homes (home inspection encouraged)
• Resale homes (home inspection required at buyer’s cost)
• Purchase price cannot exceed $339,294
• May be detached, semi- detached, townhome, duplex or condo
• Must be modest in size and features
• Cannot be a home in which the buyer or any member of the buyer’s family has an ownership interest

Homeowner Assistance

• Homeowners will receive 5% of the cost of an eligible home (maximum $16,964) at the time of purchase closing
• No interest will be charged on the loan

Conditions for Repayment by Homeowner

The original down payment loan (plus five percent of increased value of the home) must be repaid if:

• The home is sold before the 20 year period expires
• The homeowner no longer lives in the unit
• The homeowner agrees to voluntarily repay the loan
• The homeowner is in default of mortgage or NRH loan agreement

Not surprisingly, borrowers often default to their own Banker. And why not? It’s an established and comfortable relationship. Perhaps it’s viewed as the path of least resistance. But is it the right lender for the borrower’s current specific needs? Perhaps not.

More sophisticated borrowers may be of a size or scale that they have their own internal resources in finance, quite capable of securing the required financing. They are likely only in the market infrequently however, and almost certainly not fully knowledgeable as to all of the financing sources available.

Aren’t all Lenders pretty much the same?
Borrower’s may think that all institutional lenders are pretty much the same. Offering comparable rates, and standardized borrowing terms. This is rarely the case. Lender’s often prefer one asset class over another. They may have a particular need for one type of loan. A specific length of loan term may be desirable, for funds matching purposes. Real Estate risk is a fact for real estate lenders. How they mitigate this risk differs however. It may be stress testing interest rates during the approval process. Sophisticated risk pricing models may be used, having regard to previous loss experiences. The lender may rely significantly on collateral value, or guarantees. The conditions precedent to funding will often differ from lender to lender.

A real world example
I had the pleasure last year in advising a client who had 3 sizable real estate assets, in 3 quite distinct asset classes. The borrower’s loan amount requirements were significant, however they were flexible on loan structure. Accordingly, I sought out competitive, but differing deal structures. My goal was to provide a competitive array of options. A number of “A” class lenders were approached, several/most of whom this particular borrower had no previous experience with. I shortened the list to 5 lenders, and received Term Sheets from each.

Each Offer was competitive on a stand alone basis, but they differed quite substantially, in the following ways:

• Loans were either stand alone, or blanket loans, or some combination.
• Length of terms offered, differed by asset class.
• There was as much as a 75 bps rate difference, from highest to lowest Offer.
• The amortization period depending upon asset class, ranged from 15 to 25 years.
• Loan amounts on individual assets differed as much as 20%.
• Third party reporting requirements differed between lenders.
• There were a combination of fixed vs. floating rate loan structures.
• Recourse was limited by some lenders, on select assets, or waived entirely, upon a higher rate structure.

Leverage Your Knowledge
These variances are striking, yet each of the 5 lenders were considering the precise same asset, at the same time, with common supporting information from which to base their analysis. How was the borrower to know which Offer to exercise? As a Broker, I can add value by helping the borrower to consider both their immediate and longer term strategic requirements, in the context of their overall real estate portfolio needs. This was precisely how this borrower landed on the most appropriate Offer for their particular circumstances. In this particular case we presented different, yet competitive, and uniquely structured options for the borrower’s consideration.

Consider a Dominion Lending Centres Mortgage Broker when next in the market for financing. Leveraging a Broker’s knowledge is a tremendous value proposition.

Michael Distefano  Apply now: https://secure.dominionlending.ca/?app=11431&lang=en

MORTGAGE AGENT

Bank of Canada makes interest rate announcement
by Bloomberg 17 Jan 2018

The Bank of Canada pushed forward with another quarter-point interest rate increase and said more hikes are likely coming, even as it cautioned it isn’t in any rush to return rates to more normal levels.

Policy makers led by Governor Stephen Poloz increased the benchmark overnight rate to 1.25 percent, the highest since the global recession and their third hike since July. The move is a nod to a red-hot economy running up against capacity with a jobless rate at the lowest in more than four decades.

At the same time, central bank officials repeated their dovish language about moving ahead cautiously and warned they expect the economy will require continued stimulus to remain at capacity.

“While the economic outlook is expected to warrant higher interest rates over time, some continued monetary policy accommodation will likely be needed to keep the economy operating close to potential and inflation on target,” the Bank of Canada said Wednesday in a statement from Ottawa. “Governing Council will remain cautious in considering future policy adjustments.”
Key Takeaways

In raising rates, the Bank of Canada points to strong data, inflation at target and economy at capacity — and says more hikes are expected.
At the same time, it retains cautious language about future adjustments and adds new language around the need for continued monetary accommodation
The central bank cites growing risks around North American Free Trade Agreement negotiations, which are “weighing increasingly” on Canada’s economic outlook
Canada becomes the first major central bank to move ahead with a rate increase in 2018. Investors have spent the early days of the year watching central banks around the world for signs the period of extraordinary stimulus is coming to an end. The Bank of Japan jolted bond markets with a surprise change to its purchasing program, while some European Central Bank officials have called for their bond-buying program to end in September.
Striking Balance

For months, Poloz has been trying to strike a balance between gradually bringing interest rates back to more normal levels amid faster-than-expected growth and an employment boom, without triggering a slowdown.

A recent run of strong economic data has made that task more difficult, and the improved outlook was evident throughout Wednesday’s rate statement and monetary policy report.

The central bank painted a picture of an economy with inflation already close to target, output largely at capacity, a stronger- than-expected housing sector, and a faster-than-expected reduction in labor market slack.

That prompted officials to increase their projections for inflation in 2018, and growth over the next two years.

The reasons to remain cautious are less tangible, centered around growing concerns about the outcome of Nafta negotiations.

“Uncertainty surrounding the future of the North American Free Trade Agreement is clouding the economic outlook,” the central bank said.
Rate Sensitivity

There are also questions about the economy’s sensitivity to interest rate increases and whether its potential growth could be accelerating. The bank said wage gains remain modest, even with a recent pickup.

The Bank of Canada forecast a bigger hit on exports and business investment due to worries about Nafta, and incorporated an increased sensitivity of interest rates because of the country’s high household debt levels.

The rate increase was expected by 26 of 27 economists surveyed by Bloomberg News and investors had almost fully priced in a hike.

Questions remain about how quickly the central bank will raise from here and where rates will eventually settle. Markets had been pricing in at least three increases this year, which would bring the benchmark rate to 1.75 percent.

The Bank of Canada retained its estimate that its so-called neutral rate — a sort of Goldilocks rate that keeps the economy neither too hot nor too cold — is at about 3 percent. But the comments on the need for continued accommodation at full capacity could suggest policy makers aren’t anticipating a return to neutral any time soon.

The central bank also increased its forecast for how quickly the economy could grow without triggering inflation — to an average of 1.6 percent over the projection horizon. The central bank said it is monitoring the extent to which strong demand could boost potential growth further.

“In this respect, capital investment, firm creation, labor force participation, and hours worked are all showing promising signs,” it said, adding that wages have picked up by less than what “would be typical” for a labor market without slack.

Call us before the next rate hike 905 357 5366

Copyright Bloomberg News

Mortgage brokers have a reputation as superheroes. Although we cannot leap tall buildings in a single bound we can do extraordinary things.
Is the down payment money coming from outside of Canada? I had a client who had a joint account with her father in Japan. She showed me bank statements with the money in the account and leaving Japan. I had another bank statement showing the funds coming into her Canadian account. Finally I showed the foreign exchange rate for that day from Yen to CAD. The bank accepted this as a suitable paper trail.
An unusual down payment source? I had a client who sold his vintage Cadillac for his his down payment. A copy of the registration, the bill of sale and a bank statement showing the funds going into his account was deemed fine by the bank.
Is your down payment coming from multiple sources? I recently had two brothers purchasing a home together. They both had their money in RRSP’s and TFSAs. It took some explaining but we were able to show all the down payment and closing costs coming from four different sources.
Several years ago I had a client defaulting on two mortgages. Foreclosure was just days away.
I was able to consolidate the two mortgages, pay them out and get a reasonable payment schedule for one year. After the year , I moved him to a regular lender and arranged for a line of credit so that he could pay for some home renovations with a low interest rate secured against his home.
I had a couple who wanted to buy a home. The husband had had a business failure and it had affected his credit. I could only use the wife’s credit and her income for this purchase. She was a foster mother with six children. Her income was good but not high enough. I was able to get the lender to gross up her income by 25%, as her income was tax free. This was enough for them to buy a large home for the couple and their foster children.
Small towns can also pose unique problems. I had a client who wanted to refinance his home. I checked his credit report and found a credit card that he did not have. He told me that there were five people with his name in this small town. He also revealed that he had an account at Home Hardware that was not reporting on the credit bureau. The manager was a friend and thought that the loan would hurt his credit so they made an informal arrangement to pay it off.
Did I mention that he had three jobs? He worked as a tire installer, and invoiced the company from his firm. I was able to get a lender to accept this client his varied income and got the mortgage . Come to think of it , perhaps mortgage brokers are superheroes. If you have a difficult situation the best person to speak to is a Dominion Lending Centres mortgage professional, if it can be done legally, a broker can do it. Call toll free 877 357 5366

Big Mortgage Changes COMING Jan. 1, 2018

There has been significant press coverage around upcoming changes to mortgage lending rules that will take effect Jan. 1, 2018. These rules will affect many more people than most realize. They will affect people seeking a mortgage most obviously, but they will also affect those with a mortgage in many ways as well. Let’s take a look at some key areas of concern for both groups, those with a mortgage, and those without (but seeking) a mortgage.

Starting January 1st, 2018, the Office of the Superintendent of Financial Institutions (OSFI) will be tightening the qualifying guidelines for mortgages, regardless if your mortgage is CMHC insured or not. OSFI has stated that starting January 1st, every prospective home owner, regardless of the amount of down payment, will have to qualify at the inflated qualifying rate (almost a 2% hike).

 Take advantage of the property value increases along with historically low fixed rates we have seen, pay off those high interest loans credit cards or even consider doing that home improvement project you’ve been wanting.

 IF YOU HAVE BEEN CONSIDERING PURCHASING OR REFINANCING, PLEASE CALL OR EMAIL ME ASAP TO DISCUSS YOUR OPTIONS Beginning January 2018, some people will find qualifying more difficult than it has been in the past so don’t waste any time 

Apply Online here https://secure.dominionlending.ca/?app=11431&lang=en  www.beatthebankmortgage.ca

 Looking forward to seeing what I can do for you.

 Michael Distefano

Mortgage Agent DLC BTB Mortgage Solitons

4849 Jepson Street Niagara Falls On L2E 1J9 Tel 905 357 5366 Cell 905 246 5363

 P.S

Your mortgage is the most important financial decision you will make in your lifetime.  It is just as important to take this decision seriously whether you are a first time buyer or are renewing your mortgage.  No matter where you are in your homeownership, you will always want to put your mortgage in the hands of the broker that will give you the best rates AND the best service. Today’s market is competitive enough that you could see an over 1% discount on posted rates on your renewal or refinance.

Want to win $100,000?

That’s the message Dominion Lending Centre is sending potential clients as part of their unique marketing initiative: Its NHL hockey pool that is set to commence today.

The free hockey pool is just one more way Dominion Lending Centresis reaching out directly to Canadians and building our brand and, to date, it is an extremely effective marketing and branding tool,” Freiman said.

This is the second installment of DLC’s hockey pool and the first to be held during the regular season.

“Our first pool, which was a playoff pool for last season, saw more than 12,000 Canadians sign up across the country,” Freiman said. “We’re anticipating a lot more people signing up for this regular season pool because they won’t need to keep changing their picks throughout, as is the case with any playoff pool as teams get eliminated.”

To sign up for the free pool or to learn more, check out www.betterthanbankmortgage.com