Bank of Canada Rate
This means most variable rates are going to drop t a 3.05%
Prime which is 2.25% now plus 0.8% = 3.05%
If you are looking, now is a great time to refinance.
Rates are low.
Look at consolidations, refinancing or even purchasing a home.
For first time home buyers there are incentives that help pay the legal costs.
For refinancing there are home renovation tax credits available for only 2009
Lenders are busy but the deals are getting done. Rates have never been lower.
Call Victor today for more information on how to get going.
Call at 1 866 718 8366
Email: vjanus@canadamortgageteam.com
We find the best mortgage for you.
Foreclosure problems in Canada
Foreclosures in Canada could become a reality.
I'm not saying this to scare anybody but things do happen. Most houses today are mortgaged for a two income family, meaning if one family member loses their job if there is no "emergency fund" set aside then there could be financial problems arising.
Bills will begin to mount such as credit card payments, utility bills, car payments and a mortgage payment could slip. The mortgage payment is usually the last payment that is going to be missed. If you miss a credit card payment, you will pay interest on it at a high rate. If you miss a mortgage payment, the bank will call and ask what happened or what is wrong. You need to make some arrangements.
The biggest thing to do is to act ahead of time to make sure that your credit rating is not affected by missing payments so that you still have some room to negotiate.
In most mortgage agreements there are possibilities to skip a payment or to postpone a payment. Read your agreement or call your bank and ask what options are available in terms of this situation.
Refinancing your mortgage is one of the biggest things to do. If you are in a higher interest rate, then the timing could right to do so. There will be penalties to pay, this is basically money that the bank loses on interest because you are going to be breaking your contract with them. The penalties are usually added on top of the mortgage payout and if there is equity in the home it is not a problem. If you break a 5 year term with 2 years to go, the bank wants its 2 years of losses on the interest you will not be paying them so they want it up front.
Another consideration is to extend out your amortization when refinancing your mortgage. If you are currently in a 25 year amortization and change to a 35 year amortization, it will take longer to pay off your house but it may give you the breathing room to get by in a tough time. On a $100 000 mortgage (with a 5.5% interest rate) changing from 25 years to 35 years changes your monthly payment from $610 to $530, giving you $80 a month and $960 over the course of 1 year.
One of the best considerations is to consolidate debt and to re-structure it into one monthly payment. If you have credit cards they are most likely in interest rates that are in double-digits. If you have equity in your house, this will allow you to pay off all the different credit cards, auto loans and lines of credits and have them in one payment. We've reduced peoples monthly payments in some cases from 6 payments totaling $2300 to one payment of $1100. This frees up $1200 per month.
One final foreclosure solution is private financing or a private mortgage lender. In this case, the bank has followed through to the lawyers, you have been served and your property is going to be auctioned off on a certain date in a few weeks. We have a variety of private lenders that loan out money up to 85% loan to value, but the interest rate will be in double-digits. It may be the only solution left if you want to keep your house. If you have equity in your house this possibility allows you to get a mortgage for one year and in that year you have to get your affairs in order and correct the problems.
At CanadaMortgageTeam, we work with all situations that make sure you get the best rate and the best fit for your specific mortgage needs.
Call today, 1 866 718 8366
Mortgage rates drop again
New 5 year mortgage rates are available at 3.99% for the term.
For the upcoming spring season as the housing market begins to pick up, the rates make it very affordable and very attractive for people to begin to look at houses. For first time home buyers there is also reason to be excited as in the 2009 Federal Budget it was announced that there would be a $750 tax credit to offset closing costs. These can be lawyer fees, appraisals or land transfer tax. Fees will vary from province to province but you can budget 1.5% - 2% for these costs.
For an example of the rate and what it can mean to you here is an example.
Mortgage amount of $150 000, amortized over 35 years in a 5 year term at 3.99% will cost you $660 per month for principal and interest. If you are paying rent perhaps now is a time to consider looking at becoming a homeowner.
If you are currently in a mortgage and are interested in doing a comparison as to whether or not makes sense to refinance your mortgage you should call us to find out what to do. If you are currently in a rate that is 5% or greater and your term is expiring within the next 2 years there will be thousands of dollars you can save. In most cases there is a penalty to pay but the savings over the remainder of the new term will help you save thousands.
Visit, www.CanadaMortgageTeam.com for more information or call Victor direct at 204 697 5880
Mortgage Rates Dropping
Save Thousands on your Mortgage starting today!!
Want to save $1200 - $2400 on your mortgage per year?
Would you like to cut over $17 000 off your principal in 5 years?
With www.CanadaMortgageTeam.com, it is time to consider a new mortgage because of the low ...<< MORE >>
Bad credit happens
It can happen by simply losing your job and then missing a payment because you are waiting for your employment insurance to kick in. Death in the family and you can forget things such as paying a bill on time. Gone for a long holiday and you aren't anywhere where you can make a payment.
These examples show that it can happen and when it does you should act fast. If you are late on a credit card payment by only a couple or 3 days, you usually don't get hit on your credit score. If ...<< MORE >>
Seeking Credit
I recently came across a client who had 16 inquiries in 9 weeks.
They went to 5 banks, 3 credit unions, 3 high risk lenders and then 5 mortgage brokers.
Not only does this bring your credit score down but it makes lenders nervous because you are going from place to place.
If you get turned down at the bank and they tell you its because you have bad credit, I will assume they are right.
Banks are not in the business of not loaning out money. If you have bad credit, you are a risk and they may think that the risk is not worth it. Plain and simple.
As a mortgage broker, we shop your application to a variety of lenders. A mortgage broker will pull only one credit score that within 30 days and we have access to many lenders that if one lender doesn't like it, we have the ability to try another one. You don't have to go from one bank, to the next and then onto the credit union to see what they say.
We deal with lenders that many people may not know the name of but they are lenders who will loan out their money.
If you call a mortgage broker, give them a chance to work your file. Don't have 2 or 3 mortgage brokers working your deal. If 2 brokers send the same deal to the same lender and they each tell some small detail different, the lender will flag the deal and stop working on it until they have all the details correct. As well, in that same situation they may wonder who is really telling the real story.
Call today to see how CanadaMortgageTeam can help
Credit score basics
Know your credit score. How much of a difference will it make will be up to you.
Here are the basics broken down into 3 areas about your credit.
1) If your credit score is above 620, you will be eligible for great rates, as low as 4.49% currently on a 5 year.
So on a $100K mortgage over 25 years, your monthly payment will be, $553 a month.
With this score as well you can qualify for 95% financing, meaning you can buy a $100K house with about $5K as a downpayment
2) if your credit score is above 540 but below 620, you ...<< MORE >>
New Low Mortgage Rates
After yesterdays announcement by the Bank of Canada dropping the target rate by half a percent, the major lenders have followed.
If you have an old mortgage based on prime that was done prior to September, you may be lucky enough to have a mortgage that is Prime minus 0.75%, meaning your interest rate today dropped to 2.25% on your mortgage.
Currently most of the products based on prime are at: Prime plus 0.8%, so in essence 3.8%.
If you are unsure and think the market will be lower yet then go with a mortgage based on Prime ...<< MORE >>
2009 Canadian House Values
House values in Canada are at a point where the market is unsure of how to react.
In Manitoba, specifically Winnipeg, housing markets are relatively steady. There is a small but steady growth predicted for 2009. In other markest such as Calgary, Edmonton, Vancouver and Victoria the market has seen a decline in the value of houses.
Most insurers are giving a modest increase in value but if you feel that your house has increased in value or you think that your house is worth more, ask for the ...<< MORE >>