Tag Archives: purchasing a home

What’s the sweet spot for a down payment on a house

House-for-sale

Photo credit: Google Images


If you can’t afford 20% down, here’s why 10% serves you well:
 
Q: We’re buying a home valued at $275,000 and 100% of our down payment is coming from our RRSPs. We do not have enough to come up with a 20% down payment so now we’re trying to decide: (a) is it better to put down only 5% and pay more on mortgage insurance premiums, but have more cash in hand; or (b) put down 15% on the home, pay less in insurance premiums but have less cash in hand. —Glen Slim, Ottawa
 
A: Owing a home is a good idea for many, but despite your best laid plans, you could be faced with unexpected expenses. If you can’t quite hit the 20% threshold to avoid mortgage loan insurance, I think you’re right to hold some money back. Joe Jacobs is a broker with Mortgage Connections and based on his calculations you should consider a third option, let’s call it option (c). “The sweet spot is likely 10% down,” he says, because of how the premiums are calculated. For the house you’re buying, the insurance premium with 5% down would be 3.6% of the total or $9,400. With 10% down you’d pay 2.4%, or $5,940, which is a savings of $3,460. If you go with 15% down you’d pay 1.8%, or $4,200, but save only another $1,740 and tie up $14,000 that you might rather have around to cover any surprises.  If it turns out you don’t need that money in the first year or two, and you have some financial flexibility, you can put it down on the mortgage later. Any additional lump sum payments you can make will reduce the number of years it takes to pay your mortgage off, saving you thousands of dollars in interest costs.
 
by Bruce Sellery September 30th, 2015
 
From the September/October 2015 issue of the Moneysense magazine.
 
Source: MoneySense.ca
 
Source of the Article :
 
LISA GRYBA INFORMATION

Inspection doesn’t necessarily guarantee home’s condition on date of possession

by Todd Lewys

 

It has been well-documented that purchasing a home can be the most stressful event people experience during their lifetime.
 
When guided by a knowledgeable REALTOR®, the process usually turns out to go smoother than expected. However, there’s the occasional case where the process, as the saying goes, hits a few bumps in the road.
 
Normally, a home is sold and the buyer takes possession, perhaps a month or two later. In some instances, a home might be sold and the possession date, for whatever reason, might be further down the road. Sometimes, four to six months can elapse before buyers take possession of a home.
 
Not surprisingly, issues can crop up when so much time goes by between the time of purchase and the possession date.
 
An experienced REALTOR® said she recently experienced such a scenario with a newer, high-end home. “We wrote an offer on a home and it was accepted, but the vendors asked that possession could be delayed, and we agreed,” she recalled. “We did our due diligence, having the home inspected prior to buying it. Everything seemed to be fine, except for the HRV unit, which wasn’t working properly. We asked, as part of the terms of completion of the sale, that it be restored to working order.”
 
As an experienced REALTOR®, she took additional time to write a clearly-stated clause into the terms of the selling agreement. The clause stated that everything in the home was to be in working order when her clients took possession. A safeguard for her clients, she didn’t expect to have to invoke.
 
Fast forward to possession day. By this time, approximately five months had passed since the sale. As planned, her clients moved into the home, only to be greeted by several major issues.
 
“I got a call from them, saying there were several things wrong with the home. They were very surprised at what they found.”
 
First and foremost, the carpet in the basement carried a strong odour. Second, the furnace’s HRV unit was not working properly. And third, the dishwasher leaked. Understandably, the home’s new owners were crestfallen and more than a little bewildered.
 
“We’re not exactly sure what happened, but it seems that the vendors just let things go in the home after the inspection was done,” she said. “They said that they had the HRV repaired, but when it was examined, it was found to be totally plugged. Downstairs, there was no smell when we did the inspection, but as best as we can guess, it looks like the vendors let their dog have the run of the basement. Then, when my clients tried to use the dishwasher, it leaked badly.”
 
As buyers moved into the home over the next several days, they found more issues — nine more, to be exact, bringing the tally to 12.
 
Now, the REALTOR® and her clients are reluctantly being forced to enforce the clause that she wisely, it now turns out, wrote into the terms of the selling agreement for the home.
 
“It’s not something you want to have to do, but we really have no choice,” she said. “We’re going to have to ask the vendors for financial compensation for all the repairs that need to be done. The carpet downstairs needs to be cleaned or replaced, the HRV needs to fixed so it works properly, and the dishwasher has to be repaired. All the other issues have to be taken care of, too.”
 
There are lessons that can be learned from the not-so-savoury situation, added the REALTOR®.
 
“I think the main lesson is that as REALTORS®, we likely need to go further than just saying everything must be in working order at time of possession,” she said. “To best safeguard buyers, I think we need to write in a clause that says buyers can preview a home a month, even two weeks before taking possession. At that time, everything — from the mechanical system, to appliances — must be in the same condition as originally viewed.”
 
The other lesson is an obvious one. “Based on this experience, I’d have to say that getting a home inspection done doesn’t necessarily guarantee a home is going to be in the same shape at time of possession that it was at the time of purchase,” she said. “You would hope that vendors would have a little pride in the home they’re selling, but I guess that isn’t always the case.”
 
Source: WinnipegRealEstateNews

The Value Of A Mortgage Broker

Real Estate Understanding each step of the home-buying and mortgage process is key to ensuring the biggest investment of your life matches your unique needs — now and into the future.

Jim Murphy
Jim Murphy AMP, President and CEO, CAAMP

The Value Of A Mortgage Broker

It’s in a broker’s best interest to ensure you receive the best possible mortgage product and rate tailored to your unique requirements.

 
Whether you’re in the market to purchase your first home, looking to buy another property or if it’s time to renew or refinance an existing mortgage, the services offered by a mortgage broker are truly invaluable.
 
This is the first expert you should consult, even before you enlist the services of a real estate agent to help you find your dream home.
 
The very first step is to secure a preapproval through your mortgage professional. That way, you know the amount for which you qualify prior to heading out home shopping, avoiding the risk of falling in love with a home you simply can’t afford.
 
Mortgage brokers are knowledgeable about the various mortgage products and rates available in today’s market, as well as the issues and trends that may affect you and your mortgage over the long term.

“If you don’t understand something your mortgage professional has explained to you, be sure to ask questions until you feel comfortable.”

When qualifying for a mortgage, there are three key variables that determine your mortgage qualification amount and interest rate:

Credit score

In simple terms, this is determined by your past record of making payments. The higher your credit score the better. Be sure to pay down or pay off your monthly debts, including credit cards, lines of credit and other loans.

Income

This is an extremely important factor when qualifying for a mortgage, so steady or rising income is to your advantage.

Property

A lender will take into account the property being purchased, in particular its location and condition. A property appraisal will also be required.

Once a mortgage broker sits down with you in order to fully understand your income, type of work and total assets, as well as whether you’re new to Canada or self-employed, they’ll be able to then negotiate on your behalf with multiple lenders – including banks, credit unions and trust companies – based on your specific financial and credit situation.

“Although rate is important, there are many other questions that are just as critical when it pertains to your mortgage.”

And this is a service that’s generally free to the homeowner. In the vast majority of cases, mortgage brokers across Canada are paid by the lender once they successfully place your mortgage. So it’s in a broker’s best interest to ensure you receive the best possible mortgage product and rate tailored to your unique requirements.

Ask questions

If you don’t understand something your mortgage professional has explained to you, be sure to ask questions until you feel comfortable. The more knowledge you gain throughout the mortgage process, the more comfortable you’ll feel taking on likely the largest financial obligation of your life.
 
It’s important to keep in mind that, although rate is important, there are many other questions that are just as critical when it pertains to your mortgage.
Are there penalties for breaking the mortgage early? What are the prepayment options ?
These considerations can end up costing you thousands of dollars down the road if you neglect to read the lender’s fine print.
 
A mortgage professional’s job does not come to a close once your mortgage has been finalized. There are often updates from the Bank of Canada, the real estate market and the government that may affect a homeowner, depending on what type of mortgage you have.
 
Your mortgage professional will help you stay on top of that activity to ensure you’re always equipped with the mortgage to best meet your requirements throughout the life of your mortgage, not just within a single term.
 

 
Source: homeimprovementinfo.ca

Mortgage Rates for September 8 , 2014 — By Peter Paley

                                           

Peter Paley - Your Home and Mortgage Peter Paley

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

 

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

3.95%

1 YEAR

3.09%

2.89%

2 YEARS

3.04%

2.34%

3 YEARS

3.44%

2.69%

4 YEARS

3.94%

2.77%

5 YEARS

4.79%

2.99%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Mortgage Rates for September 4 , 2014 — By Peter Paley

No Bank of Canada Rate Change!

Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.

The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.

The next rate-setting day is October 22nd.

Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Or you may find that a hybrid mortgage, which is part fixed and part variable, is better suited to your needs. Call today !

 

                                            

Peter Paley - Your Home and Mortgage Peter Paley
At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

3.95%

1 YEAR

3.09%

2.89%

2 YEARS

3.04%

2.34%

3 YEARS

3.44%

2.69%

4 YEARS

3.94%

2.77%

5 YEARS

4.79%

2.99%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Mortgage Rates for June 30 , 2014 — By Peter Paley

                                            
Peter Paley - Your Home and Mortgage Peter Paley

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

3.95%

1 YEAR

3.09%

2.99%

2 YEARS

3.04%

2.59%

3 YEARS

3.44%

2.79%

4 YEARS

3.94%

2.77%

5 YEARS

4.79%

2.99%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

Are you ready to buy your first home ?

(NC) Buying a house is one of the biggest investments of our lifetime – and it’s a journey that is usually filled with questions around affordability, impact on savings, and lifestyle changes.

There are a number of online calculators and tools that can help answer many of these questions and give you a good sense of how much ‘house’ you can afford and what your monthly mortgage payments will look like. Take a look at these three tips for first-time homebuyers, courtesy of the mortgage specialists at RBC:

Know how much you can afford – beyond the mortgage amount, don’t forget to consider ongoing home ownership costs and your lifestyle needs. Use the How much home can I afford calculator available at www.rbcadvicecentre.com to find out where you stand.

Get a pre-approved mortgage – shop for a home with confidence and let everyone know you are a serious buyer. Additional benefits for pre-approval include being able to put in your offer faster, and potentially beating out another prospective buyer who hasn’t done their homework.

Know your mortgage options – take advantage of flexible pre-payment privileges to cut years off your mortgage. There is always more to your mortgage than the interest rate, so be sure you know what options are available in each mortgage type, and how they can be used to save you money. Use online tools and calculators to test out different scenarios.

Additional information, including mortgage tools and tips, is available at www.rbcadvicecentre.com.

Source: www.newscanada.com

Contact One of these Professional Mortgage Brokers

Preparing to set up a Mortgage Loan ,  Realtor Rosalie has worked with many Professional Mortgage Brokers who will help you get the mortgage or loan  that will suit your needs.

Contact one of the Mortgage Professional below to help you with the progress and let the Mortgage Broker know who referred there services to them.

 

Mortgage Rates for May 27, 2014 — By Peter Paley

                                           
Peter Paley - Your Home and Mortgage Peter Paley

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

2.49%

1 YEAR

3.09%

2.64%

2 YEARS

3.04%

2.59%

3 YEARS

3.44%

2.49%

4 YEARS

3.94%

2.87%

5 YEARS

4.79%

2.94%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

Mortgage Rate Special : PRE-APPROVE AT 3.09% 5 year fixed — Contact Peter Paley

peter paley special rates

We have a RATE SPECIAL available that you won’t want to miss!

 

Morning everyone!!!

 

This weekend we have some tremendous deals that we can ACTUALLY Pre-Approve your clients!!!!

4 year – 2.97% Fixed for 4 years
5 year – 3.09% Fixed for 5 years

Have you clients call me today!

204.227.2744

Contact me immediately to take advantage of this offer!

Peter Paley

Mortgage Associate

Send me an email

Visit my website