Breaking News-Increase to CHMC premiums May 1-2013

General Angela Calla 28 Feb

28 February 2014
 

Increase in Mortgage Loan Insurance Premiums for Homeowner and
1 – 4 Unit Rental Properties – Effective May 1, 2014

 
As a result of its annual review of its insurance products and capital requirements, CMHC is increasing its mortgage loan insurance premiums for homeowner and 1- 4 unit rental properties to reflect its increased capital targets.
 
CMHC’s capital management framework is consistent with international practices and Canadian guidelines for mortgage insurers. Higher capital targets are consistent with Canadian and international industry trends and make the financial system more stable and resilient. As CMHC mortgage insurance is backed by taxpayers, capital holdings reduce Canadian taxpayers’ exposure to the housing market, and contribute to the long term stability of the financial system.
 
For the average Canadian homebuyer requiring CMHC-insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.
 
Effective May 1, 2014, the premiums will increase by 15%, on average. The premiums** and premium surcharges will be as follows:

 

Standard Premiums

Loan-to-Value Ratio

Total
Loan Amount

Increase to
Loan Amount

Up to and including 65%

0.60%

0.60%

Up to and including 75%

0.75%

2.60%

Up to and including 80%

1.25%

3.15%

Up to and including 85%

1.80%*

4.00%*

Up to and including 90%

2.40%*

4.90%*

Up to and including 95%

3.15%*

4.90%*

90.01% to 95% (Non-traditional Sources of Equity)

3.35%*

N/A

Self-Employed Borrowers without Third Party Validation of Income

Loan-to-Value Ratio

Total
Loan Amount

Increase to
Loan Amount

Up to and including 65%

0.90%

1.75%

Up to and including 75%

1.15%

3.00%

Up to and including 80%

1.90%

4.45%

Up to and including 85%

3.35%*

6.35%*

Up to and including 90%

5.45%*

8.05%*  

 

Rental Loans (1 – 4 Units)

Loan-to-Value Ratio

Total
Loan Amount

Increase to
Loan Amount

Up to and including 65%

1.45%

3.15%

Up to and including 75%

2.00%

3.45%

Up to and including 80%

2.90%

4.30%  

Note: Premiums shown with “*” do not apply for Refinance transactions.
**For purchase/new construction loan applications, the premium rate is applied to the Total Loan Amount. For portability and refinance loan applications, the premium is the lesser of the premium rate applied to the Increase to Loan Amount; or the premium rate applied to the Total Loan Amount.

 

Premium Surcharges

Extended Amortization Surcharge (for each 5 year period beyond 25 years)

0.25%

Blended Amortization Surcharge

0.60%

Conversion surcharge for self-employed borrowers without traditional documentation to support income verification

1.75%  

New premium rates will be effective for new mortgage loan insurance requests submitted on or after May 1, 2014. The current mortgage loan insurance premiums will apply for applications submitted to CMHC prior to May 1, 2014, regardless of the closing date. As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
 
CMHC reviews its premiums on an annual basis and has adjusted them several times since being commercialized in 1998. Adjustments have included both increases and decreases to the premiums. Going forward, CMHC plans to announce decisions on premiums in the first quarter of each year.
 
To help you respond to consumer inquiries, CMHC has information available on the new premiums at www.cmhc.ca . 
 
Angela Calla Mortgage Team 604-802-3983 callateam@dominoinlending.ca

More information on the new tax relief for first time home buyers

General Angela Calla 20 Feb

The First Time Home Buyers’ Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.

See the direct link from the goverment on this and other grants avaliable at

http://www2.gov.bc.ca/gov/topic.page?id=BBD16E2D7C1841A7BBD420E3AC5380F1&title=First+Time+Home+Buyers%27+Program

We are always here to to help yo uand those you care most about with the best mortgage options.

Angela Calla Mortgage Team

604-802-3983 callateam@dominionlending.ca

Job Posting-Account Manager for Mortgage Broker Team

General Angela Calla 20 Feb

Our mortgage broker team is looking for an Account Manager to support our continued growth.

 Duties/Responsibilities include (not limited to)

-diligently executing the following systems and policies

-Customer follow up

-Administration duties

– executing mortgage files from initial inquiry to completion, as well as mortgage management for the life of the mortgage

-Handling inquires via phone and email. some meetings with clients

Skills & Attributes Required:

-Team player – does not let the team down or offer excuses when something doesn’t go as planned

-Customer focused positive attitude at all times

– no cracking under pressure

-Strong organizational skills and proficient with Microsoft applications

-Quick learner and effective communicator who works well in fast-paced, deadline-driven team environment

-Must understand mortgages/financial wellness

-Must be willing to get licensed within four months of employment

 -You will be challenged to be your best, and must have the emotional security and maturity to be ready for it

This is a long term-position. Our team is like our family. We’re a small group who does big things in our industry because we don’t believe in limitations.

Please send your resume to: acalla@dominionlending.ca

Here is a video of our current account manager who is moving out of province explaining what’s its like to be a part of our team

http://www.viddler.com/v/97f66d4c?secret=36242494

Thank you,

 

Should you have your own realtor when buying a pre-sale? YES! Here is why

General Angela Calla 7 Feb

PRE-SALES – Should I call my own Realtor?

In a word…. YES!!

Remember – the sales staff at a sales center and employed by the Developer. Period. They are there to sell product and get the most for the Developer – not for you. Presales are generally less negotiable than traditional Real Estate listings, but that does not mean they are completely non-negotiable – especially when you factor in your own Realtor.  In the current market, we have secured many negotiated discounts for our buyers. Rob Boies has experience in development personally and has showed many homebuyers many options they didn’t know they could benifit from, all throughout the lower mainland

His familiarity with the market allow us to identify when negotiating is an option. Sometimes if the price is fixed, optional items, upgrades or deposit terms can still be negotiated. However, the Developers are far less likely to offer these “incentives” to Buyers without representation. Rob Boies has expert knowledge in WHAT to ask for, and HOW to ask for it, and get the most for your money. Further – the Developer’s Disclosure Statement can be a tricky thing to navigate. Are you confident in discerning:

  • What is an appropriate maintenance fee schedule?
  • Construction time frame for the building?
  • Co-existence & structure of Stratas involving Commercial Space?
  • Parking stall & storage locker arrangements?

These are just a few examples of factors that we will help you circumnavigate. Another consideration is what happens when you get closer to the closing date. The Developer will call you for your walk-through to preview the suite for deficiencies. If you are working without Rob Boies – the Customer Service representative will likely not want to draw your attention to deficiencies OR tell you that they are not things that should be fixed. Again – this is where we come in. We know what is appropriate and what is not – and we will speak up on your behalf to make sure it is done right.

If you are in the market for looking at upcoming projects – Email Rob Boies directly to learn about what projects you might enjoy learning about robboies@royallepage.ca or 604-341-3009

5 tips to maintain the best credit score

General Angela Calla 4 Feb

 

How do I ensure my credit score enables me to qualify for the best possible rate?

There are several things you can do to ensure your credit remains in good standing.Following are five steps you can follow:

1) Pay down credit cards. This is the #1 way to increase your credit score.

2) Limit the use of credit cards. If there’s a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.

3) Check credit limits. Ensure everything’s up to date as old bills that have been paid can come back to haunt you.

4) Keep old cards. Older credit is better credit. Use older cards periodically and then pay them off.

5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score by making the credit bureau aware of each situation.

Angela Calla Mortgage Team

604-802-3983 callateam@dominionlending.ca

5 Questions Every Borrower Should Ask

General Angela Calla 4 Feb

As a mortgage borrower – particularly if this is your first time embarking upon homeownership – there’s no doubt you have a load of questions related to the mortgage process. Aside from the most common questions, such as those relating to mortgage rate, the maximum mortgage amount you’ll be able to receive, as well as how much money you’ll need to provide for a down payment, the following five questions and answers will help you dig a little deeper into the mortgage financing process.

1. Can I make lump-sum or other prepayments on my mortgage without being penalized? Most lenders enable lump-sum payments and increased mortgage payments to a maximum amount per year. But, since each lender and product is different, it’s important to check stipulations on prepayments prior to signing your mortgage papers. Most “no frills” mortgage products offering the lowest rates often do not allow for prepayments.

2. What mortgage term is best for me? Terms typically range from six months up to 10 years. The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate and a shorter term generally means a lower corresponding interest rate. While this generalization may lead you to believe that a shorter term is always the preferred option, this isn’t always the case. Sometimes there are other factors – either in the financial markets or in your own life – you’ll also have to take into consideration. If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer mortgage term, such as five or 10 years, so that you can ensure that you’ll be able to afford your mortgage payments should interest rates increase.

3. Is my mortgage portable? Fixed-rate products usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current rate. With variable-rate mortgages, however, porting is usually not available. This means that when breaking your existing mortgage, you will face a penalty. This charge may or may not be

 

reimbursed with your new mortgage. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods.

4. What amortization will work best for me? The lending industry’s benchmark amortization period is 25 years, and this is also the standard used by lenders when discussing mortgage offers, as well as the basis for mortgage calculators and payment tables. Shorter timeframes are also available. The main reason to opt for a shorter amortization period is that you’ll become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced. A shorter amortization also affords the luxury of building up equity in your home sooner. While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irr egular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be your best option.

5. How do I ensure my credit score enables me to qualify for the best possible rate? There are several things you can do to ensure your credit remains in good standing. Following are five steps you can follow: 1) Pay down credit cards. This is the #1 way to increase your credit score. 2) Limit the use of credit cards. If there’s a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month. 3) Check credit limits. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. 4) Keep old cards. Older credit is better credit. Use older cards periodically and then pay them off. 5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score by making the credit bureau aware of each situation.

As always, if you have any questions about the information above or your mortgage in general, I’m here to help!

Angela Calla Mortgage Team

604-802-3983

callateam@dominionlending.ca

Do you know what clauses are in your mortgage? Here is one that can cost you thousands.

General Angela Calla 20 Jan

Courtesy of Mortgage Broker News Jan 20th 2014

TD has altered the fine print in its VRM contracts for conventional mortgages – specifically around when a spike in LTV triggers demand for  a lump-sum payment or a new appraisal.

Under the terms of the new clause, if, at any time and for any reason, the loan-to-value on a conventional mortgage exceeds 80 per cent, the bank has the right to direct the borrower to bring it under that 80 per cent threshold or to obtain an appraisal proving the fair market value is indeed higher. The new wording replaces a similar clause that sets that trigger at 75 per cent but limits the scenario to instances where interest rate fluctuations have driven LTV over that 75 per cent mark.

Mulhern believes that new, wider clause speaks to the lender’s concerns about a possible market correction and its power to drive down property values.

“In the new clause, it states that if at any time the principal balance exceeds the max LTV.” he said. “This protects the lender in case of property devaluation. “ 

But does the move from 75 per cent to 80 per cent cancel out any potential negative exposure for the client? Mulhern isn’t so sure.

“Something that is outside the borrower’s control, property values, can cause them to have to come up with a significant amount of money or the mortgage will be called,” he explained.

The amendment took place sometime last year, according to Mulhern, and he was only made aware of it because of an increase in variable rate mortgages he recently arranged through TD.

“Unless I’m reading it incorrectly this type of clause has nothing to do with rate fluctuations and everything to do with loan-to-value,” Mulhern said. “Property value decreases would have a huge impact on all TD variable rate mortgages.”

Questions on your mortgage? Contact the Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca

The clauses are compared side-by-side below.

Old:

New:

Advantages to using a mortgage broker

General Angela Calla 14 Jan

Whether it’s your first time or your fifth time, shopping for a mortgage can often be confusing and even frustrating. Besides, who really has the time to research and compare mortgage lenders to ensure the best deal? Then there are all those crazy terms and acronyms — beacon scores, LTVs, IRDs and porting – it can make your head spin!

Isn’t there an easier way?

There is indeed, and that’s where the expert care of a licensed mortgage Broker can be your best option. Mortgage Brokers work for you, so they can offer more options than any one mortgage lender. Plus mortgage lenders — like MCAP, First National, Merix, Canadiana — only work with brokers who have been thoroughly vetted and have a valid broker licence. They not only help find the best deal for you, they stay at your side every step of the way.

There are four main advantages to using a mortgage Broker: choice, advice, service and savings.

Choice: Only mortgage Brokers can provide the wide range of mortgage products from various lenders to meet your specific financial needs.

Advice: Mortgage Brokers offer alternatives in selecting a mortgage product and other financial services that are best suited for your situation.

Service: Mortgage Brokers work with your schedule and are there with you from the first meeting to the final close and a plan after funding to hel you optimize the mortgage market.

Savings: Mortgage Brokers save you money by providing  a better mortgage rate, solution & plan with a lower penalty in the event you need to move or alter your mortgage at a later date!

According to a study* conducted by the Canadian Association of Accredited Mortgage Professionals, home owners who renewed or renegotiated with a mortgage Broker reported an average rate decrease of 1.4% compared with 1.0% among all renewers. These four reasons are also why mortgage lenders mentioned above work solely through a national network of trained professional mortgage Brokers.  Independent mortgage lenders know that a mortgage Broker will help make a home purchase or renewed mortgage a positive experience for everyone. If you’re thinking about buying your first home, looking to renew your current mortgage or are curious if there is a better deal out there for your current mortgage, talk to a licensed mortgage Broker today and find out what they can do for you! *CAAMP January 2011 study – Canadian Mortgage Channel: Industry Perceptions Consumer and Broker

Contact The Angela Calla Mortgage Team to help you with your mortgage 604-802-3983 callateam@dominionlending.ca

Top Grants for Home Buyers & Owners

General Angela Calla 14 Jan

1 Home Buyers’ Plan

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time.

Canada Revenue Agency

www.cra.gc.ca Enter ‘Home Buyers’ Plan’ in the search box.

1.800.959.8287

 

2  GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is $350,000 or less. The rebate is equal to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. At $450,000 and above the rebate is nil.

Canada Revenue Agency

www.cra.gc.ca Enter ‘RC4028’ in the search box.

1.800.959.8287

 

3 BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. At $450,000 and above the rebate is nil. 

BC Ministry of Small Business and Revenue www.sbr.gov. bc.ca/business/Property_Taxes/ Property_Transfer_Tax/ptt.htm

250.387.0604

4 First-Time Home Buyers’ Tax Credit (HBTC)

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2011) x $5,000. For the 2012 tax year, the maximum credit is $750.

Canada Revenue Agency

www.cra-arc.gc.ca/tx/ndvdls/ tpcs/ncm-tx/rtrn/cmpltng/ddctns/ lns360-390/369/menu-eng.html

1.800.959.8281

 

5 BC Home Owner Grant

Reduces property taxes for home owners with an assessed value of up to $1,295,000. The basic grant gives home owners:

BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/ hog or contact your municipal tax

• a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts;

• An additional grant of $200 to rural homeowners elsewhere in the province; and

• An additional grant of $275 to Seniors aged 65+, those who are permanently disabled and war veterans of certain wars.

 

6  – Property Tax Deferment Program for Seniors.

BC Property Tax Deferment Programs: Qualifying home owners aged 55+ may be eligible to defer property taxes.

– Financial Hardship Property Tax Deferment Program.

Qualifying low-income home owners may be eligible to defer property taxes.

– Property Tax Deferment Program for Families with Children.

Qualifying low-income home owners who financially

BC Ministry of Small Business and Revenue

www.sbr.gov.bc.ca/ individuals/Property_Taxes/ Property_Tax_Deferment/ptd.htm

Support children under age 18 may be eligible to defer property taxes.

 

7 Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants

www.cmhc-schl.gc.ca/en/co/

Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants. This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites. prfinas/prfinas_001.cfm

1.800.668.2642 | 604.873.7408

 

8 Home Adaptations for Independence (HAFI)

A program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low-income seniors and disabled home owners and landlords to finance modifications to their homes to make them accessible and safer.

BC Housing

 www.bchousing.org/ Options/Home_Renovations

604.646.7055 or toll-free 1.800.407.7757 extension 7055

 

9  CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase An energy efficient home or make energy saving renovations.

www.cmhc.ca/en/co/moloin/ moloin_008.cfm

604.731.5733

10  Energy Saving Mortgages

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. Contact your mortgage provider for details.

11. BC Hydro Appliance Rebates

Mail-in rebates for purchasers of ENERGY STAR clothes washers, refrigerators or freezers.

www.bchydro.com/powersmart/ residential/rebates_savings/ appliance_rebates.html

1.800.224.9376

 

12. BC Hydro Fridge Buy-Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.

www.bchydro.com/powersmart/ residential/rebates_savings/fridge_ buy_back.html

604.881.4357

 

13 FortisBC Rebate Program

A range of rebates for home owners include a $75 rebate for upgrading to an ENERGY STAR clothes washer, $300 rebate on an Ener-Choice fireplace and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system.

 

www.fortisbc.com/NaturalGas/ Homes/Offers/Pages/default.aspx

1.888.224.2710

 

14 FortisBC Rebate Program for Businesses

For commercial buildings, provides a rebate of up to $60,000 for the purchase of an energy efficient boiler, up to $15,000 for the purchase of a high-efficiency water heater and receive funding towards a new construction energy study

www.fortisbc.com/NaturalGas/ Business/Offers/Pages/default. aspx

1.866.884.8833

.

15 LiveSmartBC Small Business Program

Business Energy Advisors (BEAs) delivers free energy assessments. Help business owners tap into available product incentives and cash rebates for lighting, hot water, heating and ventilation improvements. Help business owners coordinate product installation. NOTE: this program expires March 31, 2014.

www.livesmartbc.ca/incentives/ small-business/index.html

1-866-430-8765

 

16 City of Vancouver Rain Barrel Subsidy Program

The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency. There is a also a limited time offer for short rain barrels for small yards. Cost $50. Other municipalities have similar offers.

http://vancouver.ca/engsvcs/ watersewers/water/conservation/ programs/rainbarrel.htm

604.736.2250

 

17 Local Government Water Conservation Incentives

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.

18 Local Government Water Meter Programs

Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.

Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca contact us today to help you with your mortgage.

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