Month: January 2017
The B.C. government has announced a hefty increase for the homes owners grant threshold to match the large increase in property assessments in Metro Vancouver
Finance Minister Mike de Jong says the Homeowners Grant is being increased from $1.2-million to $1.6-million, an increase of 33% from last year.
See the full story here: http://www.cknw.com/2017/01/09/homeowner-grant-threshold-will-go-up/
What to understand how to use your increased property assesment to your advantage? COnsolidate your debts into your mortgage
Ccntact us directly to help you at 604-802-3983 or firstname.lastname@example.org
Angela Calla, Mortgage Expert, AMP of the Year in 2009 has been helping British Columbian families save money with the best mortgage strategy for over a decade from her Port Coquitlam office location. She is a regular contributor to national and regional media outlets and long time host of The Mortgage Show on CKNW Saturdays at 7pm, and sits on many advisory boards for mortgage lenders & insures. She can be reached directly to help you.
Your Credit Score that the lenders use, not to be mistaken by the Credit Risk Score you see when you check your own credit, is one aspect of determining your borrowing power. The better your score, the length of established credit and your payment history the better when it comes to mortgage financing.
Let’s assume that all parts of an application are equal (available down payment, income, monthly liability payments etc.) except for the Credit Score. Established credit in this case would be any credit report that has at least 2 accounts reporting with a limit of $2,000 for 2 Years.
Comparing the credit profiles of Jane and John both who make a gross annual income of $50,000 the following would apply:
First Gross Debt Service Ratio (GDS) is the combined shelter expenses (heat, property tax, half of condo fees & mortgage payment) in relation to the borrowers gross income. And Total Debt Service Ratio (TDS) is the GDS plus all other monthly debt liabilities in relation to the borrowers gross income.
Jane has a Credit Score over 680
- GDS allowed is 39%
- TDS allowed is 44%
John has a Credit Score between 600-679
- GDS allowed is 35%
- TDS allowed is 42%
Each year Jane may allocate $19,500 towards GDS and $22,000 towards TDS.
And each year John may allocate $17,500 towards GDS and $21,000 towards TDS.
Lets assume heat and property tax combined are $300/month. This means that Jane with her excellent credit can allocate $1,325 towards her mortgage payment and John can allocate $1,158 toward his mortgage payment.
Using the current Benchmark Qualifying Rate of 4.64% to qualify Jane may qualify for a mortgage of $236,066 and John may qualify for a mortgage of $206,313, a difference of$29,735.
As you can see there is quite the difference in mortgage amounts allowed under each credit rating. If you’re thinking of buying it’s best to consult a Dominion Lending Centres mortgage broker who will check your credit, help you determine your maximum mortgage amounts and if necessary help you make credit decisions that may improve your credit score and buying power.
The Angela Calla Mortgage Team is here to help you personally contact us today at 604-802-3983 or email@example.com
Life can definitely throw some challenging financial situations your way.
As independent mortgage professionals, we can provide solutions and
strategies during or after these challenging times in order to get you back
on track. We have access to banks, trust companies and mortgage companies
that specialize in this transitional period to help you move forward with
the best mortgage plan for you. We protect your credit by negotiating with
multiple lenders to find a solution for you. The best part of all is that
our service is free!
If you have never owned a home and have had a consumer proposal, the good
news is that you are already accustomed to the discipline of saving money
every month. Should you choose to continue to grow your savings, those
funds can then be put toward a down payment and re-establishing credit.
If you own a home already, there are lenders that will help you refinance and pay out your proposal
earlier in order to accelerate your transition period.
After bankruptcy, different lenders will issue mortgages based on the amount
of time since you were discharged, the amount of down payment on a purchase
and/or the current equity in your home if your already own. Lenders then
price their rates based on these aspects of your application. We look
forward to learning about your journey while protecting your credit and
guiding you through the best strategy on a moving forward basis.
The Angela Calla Mortgage Team is here to help you personally with your mortgage questions 604-802-3983 and firstname.lastname@example.org