Self Employed? Here is what you will need for a Mortgage

General Angela Calla 3 Oct

Self Employed? Here is what you will need for a Mortgage

With more than 30% of Canadians receiving at least a portion of their income from means that place them in the self-employed category, it’s important to know exactly what documentation you’ll be required to provide when seeking a mortgage. The simplest way to provide this information is to send your bookkeeper or accountant an email, CCing us, advising that you’re applying for a mortgage and requesting the following files be sent electronically. When we consult with you on your mortgage inquiry, we’ll send you a a similar list detailing what we need so we can correspond with your bookkeeper or accountant to help you moving forward:

 

  1. T1 Generals from the last 2 years & Notice of Assessments
  2. Notice of Articles (first 4 pages)
  3. 2 Years of Financials (depending on requested mortgage amount)
  4. Business Licences for the last 2 years
  5. GST summary or returns
  6. Copy of corporate bank account information (if proving assets or down payment proceeds are coming from this means)
  7. Keep in mind that the more information you include on the type of business you run, your main client or contracts, your price list or understanding of your billing process, the number of employees or subcontractors you work with, if you have an actual office or are working from home, etc, the clearer picture the lender will have in order to present your best options
  8. Lenders may ask for copies of invoices and contracts, and it’s important to remember the lender has the right at any time to ask for any further documentation they deem necessary for the approval of your mortgage

 

Self-employed mortgages require the use of experienced brokers who understand the various ways you’re compensated through your business, and how you and your accountant have selected your pay structure. Experience shows us that the best self-employed mortgages are structured by those who are also self-employed, like your mortgage experts at The Angela Calla Mortgage Team. Working with a lender or individual who does not understand or have experience with these types of mortgages may cost you more time and money, and prove more stressful than is necessary!

 

Angela Calla, AMP

Dominion Lending Centres-Angela Calla Mortgage Team

Host of The Mortgage Show Saturdays at 7pm on CKNW AM980

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

“An introduction to someone you care about is a big responsibility…it’s also the biggest compliment a client can give us & it’s not taken lightly. We pledge to treat everyone that is referred to us with the utmost respect & professionalism”.

www.angelacalla.ca

Reach my Team Chris Adkins & Johnny Hsu at 604-939-8777 & callateam2@dominionlending.ca

 

5 Common Mortgage Mistakes

General Angela Calla 2 Sep

Like many aspects of your   life, obtaining financing on a new or existing home can be a lot less stressful and a   whole lot more straight-forward if you’re prepared. But if you’re not   prepared, there are many common mistakes you can make. Most of these mistakes   are easily avoidable with some preparation and informed advice – feel free to   call or email with any questions/concerns! 

Below are the Top 5 Mortgage Mistakes people make when trying   to secure financing for their home:

  1.   Failing to choose   the best product for their situation
  2.   Automatically   renewing their current mortgage with their existing lender
  3.   Signing documents   without reading them
  4.   Taking it to the   limit – running up credit
  5.   Not planning for   your mortgage application

1. Failing to choose the best   product for your situation
  There are many different types of loans out there. There are fixed- and   variable-rate products, hybrid and no-frills mortgages, lines of credit, term   options, amortization choices, and more.

And although choice is great, it can be quite overwhelming   without expert advice. While one person would benefit from a variable-rate   product, their neighbour may be better suited to a fixed-rate product. The   key is to always explain your current situation and future goals in detail so   we can select a product that best meets both your current and longer-term   needs.

2. Automatically renewing   with your existing lender
  Although you may feel an allegiance with the current financial institution   that holds your loan, they may not be able to offer you the best choices.   When refinancing or renewing, it’s important to always shop the market for   your best available option, much like you did when

 

securing your first mortgage. This ensures you end up with the   best mortgage rate and terms customized to your unique situation. In many   cases your bank will offer you the posted rate in hopes that you’ll simply   sign and return the commitment without shopping around. Make sure you do your   due diligence when refinancing and renewing. After all, this is your   home, your mortgage and your money!

3. Signing documents without   reading them
  Never sign documents without reading them. If you’re unsure about   something, always ask for clarification. Remember that you’re the one entering   into the agreement, so you need to understand and agree with that commitment.

4. Taking your credit to the   limit
  Make sure that your credit balances are in your favour when it comes to your   mortgage application. Lenders are looking for an appropriate debt-to-income   ratio. In other words, you need to have more income than you have debt. Avoid   running up a balance on your credit cards and pay down existing debts as much   as possible.

5. Failing to plan ahead
  If you know that you’ll need to obtain, renew or refinance a mortgage, it’s   essential to plan for it by ensuring your credit is in order. If it’s not,   start preparing. Don’t make any purchases on your credit cards that you   can’t pay off and if you carry a balance on your credit cards, start paying them   down. Refrain from making any large purchases before securing your mortgage.   If you’re planning to buy a car, wait until after you have secured financing,   as your debt-to-income ratio will rise and you don’t want this to occur while   trying to secure a mortgage.

Understanding how the mortgage process works and how lenders   qualify your loan will help you avoid the above mistakes. As always, if you   have any questions or concerns, clarification is just a phone call or email   away!

Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca

The Secrets Of World Bankers

General Angela Calla 29 Aug

Wonder why Banks are SO eager to get you to open an account with them & offer freebies like ipads, coffee, free chequing etc?

Wonder why some of the exit fee’s are SO high to get out of their products

Wonder what they make money on and how you are viewed as a consumer

Wonder how its even legal for them to give you terms in loans or products that you didn’t “know” about?

This is very eye opening documentry that should make every consumer run to a reputable mortgage professional when considering a mortgage, or else- consumer beware! This is not a canadian show, however some of these practices have made it over here with the big banks.

We are not saying banks are bad, when you have the right guidance, you can be empowered to make educated decisions.

http://staging.knowledge.ca/program/bankers

In 2008 the financial crisis swept across the modern world. Today, banks are still at the eye of the storm. This three-part BBC documentary series examines recent scandals that have shaken the financial sector, and the revelations of complacency, greed and recklessness that shattered trust in the system. Combining rigorous journalism with access to key players, the series asks what bankers, regulators and policy-makers have learnt since 2008. And, in the process of making the City of London and Wall Street pay the price for weaknesses in regulation, leadership and ethics, is there a danger of inflicting as much suffering on the wider economy as on the banks?

Are you prepared financially & emotionally to buy a home?

General Angela Calla 14 Aug

Are you prepared financially and emotionally?

Meeting these criteria can make the difference between frustration and success

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/five-signs-you-are-ready-to-take-the-home-buying-plunge/article19986629/

The Angela Calla Mortgage Team is here to help you with the lowest cost of home ownership. COntact us directly at 604-802-3983 callateam@dominionlending.ca

 

CMHC Launches Web-Based Housing Market Information Portal

General Angela Calla 1 Aug

Last month CMHC launched its Housing Market Information Portal. A new, dynamic, web-based tool, the Portal enables users to access CMHC’s wealth of housing market data in one, easy location. Unrivalled in scope and flexibility, the Portal provides housing market information to address a wide range of strategic business needs – at no cost to users.

“As Canada’s housing authority, CMHC continues to be the most comprehensive and reliable source of information on housing in Canada. The Portal is another example of how CMHC makes accurate and up-to-date information available to Canadian governments, consumers and the housing industry,” said Michel Laurence, CMHC’s Vice President, Policy and Research. “Whether users are looking for high-level national and provincial housing statistics, or local data for specific cities or neighbourhoods, the Portal can readily provide the objective and impartial information Canadians have come to rely on from CMHC.”  

The Portal features four different views – At-a-Glance, Compare, Tables and Publications – to access information. Each view is supported by a map-based interface, making access to geography-specific information quick and easy. A state-of-the-art search function and a geography-related drop-down menu gives users the flexibility to refine their data search from the national to the neighbourhood level without using the map, if desired. Users can access historical, current and comparative reports in a range of outputs, including tables, charts and maps, available in PDF and spreadsheet formats, suitable for sharing with clients, colleagues and stakeholders. The Portal also enables users to search CMHC’s most recent and historical Housing Market Information publications.

Additional details on the Portal’s features and functions can be viewed in this video or by accessing the tool at www.cmhc.ca/hmiportal.

For general enquiries or assistance with the Portal, contact CMHC’s Call Centre: 1-800-668-2642; callcent@cmhc.ca.

CMHC makes more changes-impacting self employed

General Angela Calla 29 Jul

The biggest impact that we note from this change is the newly self employed. Many tradespeople or service providers have decided to contract themselves out to companies or clients directly, making them self employed. CMHC was the most understanding to this type of borrower and would consider there previous earning history. Now a 2 year average of their net income will only be considered. You will want to be mindful of your deductions if you need to apply for a mortgage during that time period of transition.
 
The Angela Calla Mortgage Team is here to help you and those you care most about to ensure they are always getting the best mortgage contact us today at 604-802-3983 callateam@dominionlending,ca
 
 
Tue, 22 Jul 2014 14:00:00 GMT | By Gordon Powers, MSN Money

CMHC again tightens mortgage insurance rules

Changes to the rules for government-insured mortgages mean some Canadians will have to look farther afield when it comes to financing a home.
 
 

 

 

The Canadian Mortgage and Housing Corporation (CMHC) has once again moved to crimp the residential mortgage market, introducing changes that will soon make it more difficult for many Canadians to obtain government-insured mortgages.

The changes came following the federal government’s decision to tighten the Crown corporation’s mandate as it attempts to increase market discipline in residential lending.

“CMHC helps Canadians meet their housing needs and contributes to the stability of the housing market and finance system,” says Steven Mennill, senior vice-president, insurance, CMHC. “The changes announced as part of the review ensure that CMHC’s products and services are aligned with these objectives.”

CMHC will no longer insure mortgages for self-employed Canadians unless their income is formally validated by a third party. More importantly, it’s not going to provide insurance for existing homeowners looking to purchase a second property.

At the same time, the agency is discontinuing its mortgage loan insurance for the financing of multi-unit condominium construction. This insurance made banks more likely to lend money to condo developers, a part of the market that risks oversaturation.

The good news is that its insurance for mortgage loans to homebuyers wishing to purchase a condominium is unaffected by this change.

As it stands now, homebuyers in Canada are legally required to purchase mortgage insurance if they don’t put down 20 per cent of the price of the home up front. CMHC will now limit its exposure to such loans, however.

It will no longer offer mortgage insurance for homes that cost $1 million or more; limit the maximum amortization period to 25 years; and cap the Gross Debt Service (GDS) ratio to 39 per cent and Total Debt Service (TDS) ratio to 44 per cent.

This latest change marks the fifth time the government — in an effort to dampen what it believes to be excessive speculation in the housing market — has tightened mortgage rules over the past few years. And it’s probably not the last.

CMHC says it doesn’t expect the new rules to have a big impact, estimating that the latest changes would affect only a small portion of the properties it insures. But the actual impact really depends on who you ask.

Instead of forking over even more cash for education costs, for instance, some enterprising parents prefer to buy a nearby property for their children to live in during their university years.

That way, they’ll build up a bit of equity and the kids won’t need to look for a different place to live each year, have to worry about subletting, or figure out how to store furniture over the summer break.

But, for many families, that’s going to be much more difficult now since this would count as a second property.

The same goes for those looking to purchase recreational properties such as cottages or a ‘pied-à-terre’ for those who regularly travel to another city for work. If their existing mortgage is insured, they may have to look elsewhere.

As well, parents who have a mortgage that’s insured will no longer be able to act as co-borrowers for their adult children on insured mortgages.

The changes may also affect those transitioning to other properties and even impact the overall rental market, at least in urban areas.

In the past, someone who owned a condo with an insured mortgage might have opted to rent it out when they bought a house. Trouble is, if they hang on to the condo, they’ll no longer be able to buy that house — at least not with a mortgage that’s insured by CMHC.

These changes mean many Canadians will have to look farther afield when it come to financing.

That means tapping prime lenders who insure through private insurers, mortgage investment corporations that finance with even higher rates and fees, and private lenders who offer second mortgages, predicted.

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