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Thursday, April 29th, 2010
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Six Reasons to use a Mortgage Broker

 

For many people, mortgage payments are their single largest expense. Yet, when financing a home, most Canadians don’t comparison shop to ensure they’re getting the best mortgage rate and terms available. This mistake can cost homeowners tens of thousands of dollars over the course of their mortgage. Here are six ways mortgage professionals can help:

1. ACCESS TO COMPETITIVE RATES.

Brokers deal with multiple competing lenders and can often access exclusive rates. They also have the power to negotiate rate discounts from lenders, which can be passed on to their clients.

2. KNOWLEDGEABLE ADVICE.

Brokers offer consultative service, advice and solutions that are customized to each client’s needs. And unlike banks, brokers work for you.

3. SPEED AND CONVENIENCE.

Brokers will work around a client’s schedule to make the transaction as easy and convenient as possible.

4. PRE-QUALIFICATION.

Whether you’re shopping for a new home or refinancing your existing mortgage, a broker can help you obtain a pre-approved mortgage, often with up to a 120-day interest rate guarantee.

5. PRESERVED CREDIT RATING.

When you shop for a mortgage, there is an accumulation of lender inquiries on your credit bureau report, possibly affecting your credit rating and, ultimately, the rate and terms of your mortgage. This isn’t the case with a mortgage broker, who only does one inquiry yet can still get many competing lenders to quote on your business.

6. PEACE OF MIND.

The Canadian Association of Accredited Mortgage Professionals has a stringent Code of Ethics that members are required to adhere to in order to retain membership.

Tuesday, April 13th, 2010
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Is your House Safe? A spring checklist for homeowners

This is an important semi-annual task that can help keep your family safe. But why not also take the opportunity to do a home safety inspection? Get the whole family involved: review your emergency plan and offer age-appropriate explanations and directions to your children.

 •The Big Three: Smoke alarms, fire extinguishers, and carbon monoxide alarms. These three devices are your number one priority. Make sure you have at least one of each on every living level – it is now the law that you must have smoke detectors on each level, and there could be insurance problems if you do not!

Change the batteries when you change the clocks. This isn’t a battery “check” by the way. Whether or not the batteries are still working, they should be replaced with new batteries. Save the used batteries for a child’s toy or other device. They may have some useful life left, but your own life won’t be dependent on them working for another six months. Replace alarm batteries twice a year — when you change your clocks for daylight savings time or when you are spring cleaning or winterizing. While you’re circling the house with your box of batteries, take the time to check the expiry dates on your extinguishers. Get the kids to help on this semi-annual exercise, and chat about what they should do if they hear the smoke detector.

 •Check detector locations.If you’re tempted to take batteries out of smoke alarms because they activate with regular cooking tasks – or every time you light a fire in the fireplace for guests – then you should consider moving the alarm to a less sensitive position. Keep in mind that fires can begin at the kitchen stove, or at an untended fireplace. Moving the detectors too far away defeats the purpose. Be sensible about your safety.

Fire routes. Practice exit strategies with your children at least twice a year. Ideally, each room should have two exits; if one is blocked by fire, another is available. Tell your children never to hide in closets or under beds, and not to stop to collect their favourite belongings. And remind them that the safest air is down low – since smoke rises. And the children should know where the family “meeting spot” will be, outside the home. Odds are you will never have to use this knowledge — but it is comforting to know that you are well prepared.

Clean chimneys. If you have a woodstove or fireplace – you should have it inspected and cleaned every year. Book your appointment on clock-changing day so you won’t forget. Always, of course, burn well-seasoned wood: never green wood or garbage, which can cause dangerous creosote buildups in your chimney.

Banish mould. Home health includes healthy air. Use fans and a dehumidifier to improve air circulation and quality wherever necessary. Check your equipment during your home safety inspection – ensuring that bathrooms ad kitchens are well ventilated. If you do see or smell mildew anywhere — take immediate action to eradicate it with diluted bleach. (And check your kitchen exhaust system for grease buildups – another potential fire hazard!)

Slip check. Indoors and outdoors, you want to be able to walk safely. Keep your indoor stairways slip-free and clear; make it a firm rule that no one is allowed to put anything, anytime, on the stairs. Outdoors, keep your pathways and doors well lit. Timers are great for outdoor lights; you save energy, and you’re assured of light when you need it.

This spring, make your home safety inspection a part of spring cleanup day. Your kids will come to expect this little seasonal ritual, they’ll develop good habits and “safety sense”, and your whole family will be better prepared and better protected!

Monday, March 15th, 2010
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Considering refinancing & you own rental properties? Better do it before April 19!!

The upcoming changes to underwriting in  the mortgage industry will make it very difficult to refinance if you own rental properties.

Currently we are able to use 80% of the rent as a direct offset against mortgage payments. After April 19, we will only be able to 50% of the rent and it will be added you your Gross Income….of which the lenders will use up to 44% of that income (O.A.C.). What does this mean??

Example of a refinance:

Client was looking to refinance to lower their payments. They have provable income and would lower their monthly payments by $550 as a result of the refinance.

The lender requires that the TDS (the total of their Mortgage, property tax, & credit debt for all properties) be less than 42% of their Gross Monthly Income.

With the 80% rental offset, their TDS was 39.6% – within guidelines and the mortgage was approved.

After April 19, the lender will use a 50% “add to gross” qualifying method – this put their TDS at 64.1% – this deal would not be approved!!!

To find out if you can take advantage of low rates and easier qualifying critieria, call MBN Mortgage at 403-685-7025 to book an appointment.

____________________________________________________

Brad Gavin –

Mortgage Agent – MBN Mortgage Ltd (Associated with Mortgage Intelligence)
111 5809 Macleod Tr SW
Calgary, AB T2H0J9
(866) 955-9662 toll free
(403) 685-7025 wk
(403) 968-5337 cell
(866) 269-3499 fax
bgavin@mbnltd.com
www.mbnmortgage.com
Wednesday, February 17th, 2010
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Financing a Rental Property in Canada is about to Change!!

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.

Brad Gavin – VP, MBN Group of Companies
Mortgage Agent – MBN Mortgage Ltd (Associated with Mortgage Intelligence)
(866) 955-9662 toll free
(403) 685-7025 wk
(866) 269-3499 fax
bgavin@mbnltd.com
www.mbnmortgage.com
Tuesday, January 19th, 2010
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Bank of Canada – NOT RAISING RATES!!!!!

Bank of Canada keeps rates the same…again

Once again, the Bank of Canada announced it would keep the key interest rate at a record-low 0.25 per cent to achieve its inflation target of two per cent.

While the Bank said economic growth in Canada resumed in the third quarter of 2009 and there has been a slightly higher than expected rate of inflation in recent months, it reiterated that the economy is still lagging, particularly due to factors like a strong Canadian dollar and low levels of U.S. demand.

Repeating many of the same projections as its October monetary policy report, the Bank predicted the economy to return to full capacity and reach a two per cent inflation rate in the third quarter of 2011. It forecast the economy to grow by 2.9 per cent in 2010 and 3.5 per cent in 2011.

The next Monetary Policy Report will be released Friday and the next rate announcement will be made March 2.

Now is the time to take advantage of the lowest interest rates in history!!! Low monthly payments will get you back on track to erasing your high interest debt.

Call MBN Mortgage at 403-685-7025 and talk to a Calgary Mortgage Broker to lower your monthly payments.

MBN Mortgage is an independent team associated with Mortgage Intelligence.
MBN Mortgage