IMPORTANT NEW INFORMATION REGARDING MORTGAGES

Federal Finance Minister Jim Flaherty announced three new rule changes connected to government-backed insured mortgages Tuesday morning, saying the government is “taking proactive, prudent and cautious steps” to prevent a housing bubble.  

• The biggest change is the requirement that all borrowers be qualified at a five-year fixed mortgage rate even if they choose a shorter-term, lower-interest product.
• The government also lowered the maximum amount Canadians can withdraw in refinancing their mortgages from 95 to 90 per cent
• introduced a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased “for speculation.”

The rule changes are set to come into effect on April 19.

What does this mean for you? If you have been on the fence about whether to buy an investment property, now is the time to take action. After April 19, it will require $80,000 to buy a $400,000 rental property instead of $20,000 (O.A.C).

Call or email now to find out if you can take advantage of the current lending environment before it changes.

By using the equity in your home, you may be able to refinance your mortgage and consolidate your debt.

  

	Consider a current situation			Conside a new mortgage
	(6.0% interest rate)			(2.15% variable rate *)
	Balance	Payment		Balance	Payment
Mortgage	$ 160,000.00	$  1,024.00		$ 196,000.00	$ 1,134.00
Car Loan	$    18,000.00	$      540.00		Paid off	$              -
Credit Cards	$    15,000.00	$      450.00		Paid off	$              -
Payout Penalty	$      3,000.00	$               -		Paid off	$              -
Total	$ 196,000.00	$  2,014.00		$ 196,000.00	$ 1,134.00

That’s a monthly savings of $1,169!

To find out how you can lower your debt and be mortgage-free quicker, call your local MBN Calgary Mortgage Broker today.

 *Rate subject to change. OAC. Payments based on 25-year amortization. Central Office: 5770 Hurontario Street, Suite 600, Mississauga, ON, L5R 3G5. FSCO Lic.10428 ® Registered trademark

of Mortgage Intelligence Inc. © 2009, Mortgage Intelligence Inc., all rights reserved.

http://www.reuters.com/article/idUSN2123342920091221

Canada may require higher mortgage downpayments-TV
Mon Dec 21, 2009 11:21am EST* Finance minister concerned debt levels may get too high

OTTAWA, Dec 21 (Reuters) – Canada may require people taking out mortgages to come up with a larger downpayment if it looks like indebtedness is getting too high, Finance Minister Jim Flaherty said in a interview released late on Sunday.

Flaherty’s remarks echoed concerns voiced last week by Bank of Canada Governor Mark Carney about households’ ability to pay down debt. Household debt relative to income has risen sharply though it is below U.S. and British levels, and Carney warned consumers not to assume that interest rates will stay low.

“If we see further evidence that there is excessive demand in the housing market or that there’s an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action,” CTV television quoted Flaherty as saying.

“The likely action we will take is to increase the size of the downpayment from 5 per cent to a higher number, reduce the amortization — bring it down from 35 years to something less.”

Shortening the amortization period would mean mortgage payments would have to go up to pay the loan off more quickly, and might make people think twice about taking on more debt.

The interview with Flaherty is expected to air on the program Question Period on Sunday. (Reporting by Randall Palmer; editing by Rob Wilson)

One of the benefits of buying real estate is leverage; leverage allows an real estate investor to use less Capital (money) to control more Real Estate (assets). This article gives indicators that the Canadian government will be making it harder for real estate investors to acquire real estate. The good part about this potential federal lending practice change is they are doing this so they don’t have to raise interest rates…which will help people who already own properties.

If coming up with a down payment has been holding you back from buying a home or investment property, CLICK HERE now to pre-qualify yourself for a mortgage with a low down payment.

Brad Gavin

Mortgage Consultant

MBN Mortgage Ltd (associated with Mortgage Intelligence)

403-685-7025 direct

866-955-9662 toll-free

866-269-3499 secure e-fax

bgavin@mbnltd.com

 Bring it HOME

Consultative Service, Expert Advice and Flexible Mortgage Solutions for the Self-Employed

As someone who is part of the growing ‘business for self’ segment, you have likely had to make some major trade-offs to achieve your dreams. A September 2007 Mortgage Intelligence survey of self-employed Canadians indicates that you are not alone:

• 49% said they have postponed real estate purchases;

• 57% said they have little to no retirement savings; and

• 51% said they take fewer vacations than they would like.

As a mortgage professional, I understand the challenges, rewards and trade-offs involved in being self-employed. The good news is that when it comes to negotiating a mortgage – whether to purchase a home or leverage home equity – you no longer have to make those trade-offs.

At Your Service, At Your Convenience

Over the past decade, the use of mortgage professional has grown in popularity because of the outstanding service levels and competitive mortgage solutions provided. In fact, many self-employed people now turn to mortgage professional in a similar capacity to how they would consult other expert advisors, such as lawyers, accountants or financial planners.

As a mortgage professional with Mortgage Intelligence, I am your agent, working for YOU, not an institution. I will help you stay focused on your business, alleviating the burden of many time-consuming and frustrating tasks associated with securing a mortgage.

My commitment to you is that I will work around your busy schedule as an entrepreneur. I will strive to understand your personal and professional goals and will identify competitive mortgage solutions based on your unique profile.

Expert Advice from a Mortgage Professional

I understand that while owning your own business can be extremely rewarding, it often comes with a lot of stress. The 2007 Mortgage Intelligence survey also found that 37% of self-employed respondents indicated that business finances were keeping them up at night, followed closely by personal finance challenges at 28%. Another 32% felt that they were bogged down by administrative matters.

As an independent mortgage professional, I will advise you of different mortgage options, take care of mortgage applications and help you select the solution that best suits your needs. The good news is that many lenders now offer a wide range of flexible mortgage solutions that:

• base approvals on personal credit history and work experience; and

• offer a variety of flexible terms, including amortization periods and payment schedules.

A Mortgage Solution Tailored to Your Goals

When asked by Mortgage Intelligence what real estate purchases they are planning in the next three years, self-employed respondents indicated that:

• 26% are planning to buy or refinance a primary residence;

• 12% are planning to purchase an income property; and

• 10% are planning to purchase a vacation property.

Many self-employed individuals also negotiate mortgages to lower monthly payments through debt consolidation, establish a home equity line of credit for their business, renovate their home or build the ideal home office.

I will take a consultative approach to understanding your goals and will clearly outline the mortgage process step-by-step. I will work on your behalf to negotiate competitive mortgage solutions from more than 50 lenders, several of whom offer unique mortgages for the self-employed, including up to 90% stated income mortgages.

Learn how I can help you Bring it HOME by freeing up your time, providing expert advice and service, and consulting on the right mortgage solution for you!

Contact me today to learn how I can help you meet your financial goals

Brad Gavin

Mortgage Agent

P. 403.685.7025          F. 866-269-3499

E. bgavin@mbnltd.com

W. www.mbnmortgage.com