14 May

Purchase Plus Improvements

General

Posted by: Angela Calla

Have you ever wondered if there was a way to get a mortgage larger than the purchase price of your home to do some renovations?

Do you want to do some renovations on a property you would like to purchase and don’t have the money or think you can afford to renovate?

The answer for you may exist in the Purchase Plus Improvements Program. This is a product available through the Angela Calla Mortgage Team where you can purchase a home and add 10%-20% or a maximum amount of $40,000 to your mortgage in order to improve the quality of your home at today’s record low rates when you’re making less than a 20% down payment.

How it works:

Improvements cannot exceed 10-20% or the lesser value of $40,000 of the property’s value or as improved. You would have to qualify for the full mortgage and improvement amount, and the advance would be given to you in one lump sum after the work has been completed. The extra funds are held in trust with the lawyer until the lender approves the appraisal or receipts, depending on the lender’s policy, to confirm the work is complete. Two to three quotes from a contractor will be required by the lender to review for approval, and the work should be completed within 90 days (some lenders will allow for a longer timeframe). Each case is different and we will help you every step of the way!

4 top reasons to consider this product:

1) You will not be accumulating outside debt at a higher interest rate, keeping with an affordable budget for buyers. Borrowers who use a line of credit or credit card would have higher carrying costs, when compared to fully discounted mortgage rates.

2) Helps quickly improve your new property’s value.

3) The appraiser/lender has to confirm the work has been completed, but it is not essential to confirm an increase in value of 20% for some lenders.

4) Lenders will generally have a policy requiring the work to be completed within 90 days, but some lenders have different timelines.

What renovations apply:

Different lenders have different policies, but most lenders approve fixed assets (eg, countertops, floors, paint, etc).

Understanding the numbers:

It’s important to keep in mind that the banks would prefer for you to pay for renovations via a line of credit or credit card as they earn much more money off these products. If you consider that a payment on a $10,000 loan not included in your mortgage works out to $300 dollars a month and $10,000 within a mortgage is approximately $50 a month, if you qualify, this product can save you $250 a month.

The Angela Calla Mortgage Team is always here to ensure you have the best product available for your needs, while saving you the most amount of money throughout the life of your mortgage.

Worried about the stress of living through renovations? This video is worth watching, FairTradeWorks make renovating easy! http://vimeo.com/67174441

 Angela Calla, AMP

Dominion Lending Centres-Angela Calla

Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone :

604-802-3983 Fax: 604-939-8795

Email: acalla@dominionlending.ca

www.angelacalla.ca

7 May

You are a homeowner..now what?

General

Posted by: Angela Calla

You found the home of your dreams, your offer was accepted and you just received the keys to your new home. Congratulations, you’re now officially a homeowner! So… what happens next?

To help you start your new life as a homeowner on the right foot, Canada Mortgage and Housing Corporation (CMHC) offers the following tips on how to protect your home – and your investment – in every season:

  • The most important thing you can do to become a responsible homeowner is make your mortgage payments on time. Late payments may result in charges and negatively affect your credit rating. Failing to make your mortgage payments can lead to even more serious consequences, including foreclosure.
  • A good way to make sure you stay on time is to have your mortgage payments automatically deducted from your account every month. It’s also recommended that you keep at least three months’ worth of mortgage payments in savings for emergency situations.
  • If you’re having trouble making your payments or know you’ll be late for an upcoming payment, talk to your mortgage professional.
  • To ensure your financial peace of mind, you should also prepare a detailed monthly budget and stick to it. If you haven’t already created a budget, use CMHC’s Household Budget as a Homeowner worksheet, available at www.cmhc.ca/homebuying, to give yourself a head start.
  • Besides your mortgage, property taxes and insurance, operating a home comes with many other ongoing costs.

 

 

These range from maintenance and repair costs to expenses like landscaping fees, utilities and condominium or strata fees. Be sure you include all the costs of homeownership in your monthly budget.

  • Take a few minutes each month to review your budget, check your spending and see if you’re meeting your financial goals. If you’re having trouble sticking to your budget, ask a professional money manager for help.
  • No matter how far you look ahead, unexpected costs can arise at any time. Try to set aside a percentage of your take-home pay in an emergency account to help you deal with any unexpected problems, major repairs, illness or job loss.
  • To keep your home safe and sound in every season, prepare and follow a regular schedule of monthly maintenance and repairs. Carrying out a few simple repairs each month can help put a stop to many of the most common and costly problems most homeowners encounter, before they can occur.
  • As a family, you should also get to know your home’s basic components and how to adjust or turn these systems off in case of an emergency. Create a fire evacuation plan, install a smoke alarm and carbon monoxide detectors, and always keep a list of emergency numbers (including 9-1-1, the poison prevention line, your doctor and neighbours or relatives) close to the phone.

To help you learn more about what to expect as a homeowner and all aspects of buying a home, CMHC’s Homebuying Step by Step: A Consumer Guide and Workbook will lead you through the home-buying process in five simple steps, from the moment you decide to buy a home of your own to the day the movers carry the first box through your new front door. 

The Angela Calla Team is here for you for the life of your mortgage, if you have any questions we are here to help callateam@dominionlending.ca

2 May

Easy Refinance Program for Qualified Borrowers & Properties

General

Posted by: Angela Calla

Easy Refinance Program Highlights:

This program is administered through FCT and covers the following at no cost to the borrower:

* All secured and unsecured debt payout

* One (1) signing appointment with an FCT representative

* Mortgage Registration

* Discharge of existing mortgages

* Lender title insurance

* All courier fees for the borrower(s) proceeds

* Appraisal Costs 

To qualify for this program, the following must be true at the time of closing:

* The mortgage amount must be between $200,000 and $750,000.

* The loan to value cannot exceed 75%.

* Must be Owner-Occupied and fully qualifying.  Second Homes allowed provided they are considered Owner-Occupied

Please note the Easy Refinance Program is only available under a 5 Year Fixed Rate term.
In the event that a deal does not qualify under the Easy Refinance Program,  we will ensure you get the best mortgage option to save you the most about of money over the term of your mortgage and you have the best mortgage for you and your future plans.

This option can be withdrawn at any time so we suggest you act quickly to see if it’s avaliable to you

Want to learn more about our New Refinance Program? Contact th Angela Calla Mortgage Team today callateam@dominionlending.ca 604-802-3983