Tag Archives: winnipeg mortgage broker

Variable rate mortgage rates hovering on historic low

With the Royal Bank of Canada’s implementation of the latest round of mortgage rate increases last week, banks and other major lenders have begun lowering the discounts for floating rate mortgages.
Even with the new 2.6 per cent rate average on variable-rate products, however, this is still considered by industry observers to be among its historically lowest levels. To compare, fixed-rate mortgages with five-year terms currently enjoy a rate of 3.04 per cent.
Experts noted that such stretches of low rates allow variable-rate buyers to save more, although the option essentially removes the safety blanket of a stable rate throughout the term. The RBC raise gave incentive to some banks to get in lockstep, though.
“The spreads were narrowing and that causes us to raise rates,” Bank of Nova Scotia’s real estate lending head David Stafford told the Financial Post, elaborating on the bank’s move to implement a similar average on variable-rate products.
Industry players said that these numbers are the reason why lenders continue to offer cut-off primes of 50 basis points for variable rate mortgages, as banks profit less from floating rates than from borrowers locking in their loans.
“We kind of chuckled when they raised rates because we have some lenders dropping rates. The big banks are trying to move people out of the variable (and get them to lock in),” MonsterMortgage.ca owner and broker Vince Gaetano told the Financial Post.
Source: Mortgage Brokernews

Insuring your mortgage: Analyze the costs, benefits

(NC) When you go to your lender for a mortgage, they may ask whether you want to insure your home loan with an array of optional financial products to make your home ownership more secure. But this comes at a price.


These products include mortgage life insurance, mortgage disability insurance and title insurance.


Your lender must provide easy-to-understand information about these products; it’s up to you to read it and ask questions to ensure that you understand your options.


You do not have to buy any of these three types of insurance to get your mortgage. In fact, financial institutions may not pressure customers to buy life, disability or title insurance in relation to a mortgage.


Mortgage disability insurance


Why buy this insurance? It provides the certainty of knowing that your mortgage will be paid even if you are incapacitated. The insurer will make the mortgage payments – for a specific period of time – to your lender if you cannot work because of a severe injury or illness.


What you need to know: This would be an ongoing cost for the duration of your mortgage. Some insurers only cover specific illnesses or injuries, and they don’t usually cover pre-existing conditions. Before purchasing such insurance, ask your employer whether they offer similar coverage. Compare costs before agreeing to buy.


Mortgage life insurance


Why buy this insurance? It ensures that, in the event of your death, your mortgage will be paid off so your loved ones do not have to worry.


What you need to know: This would be an ongoing cost for the duration of your mortgage. You may already have this coverage through an existing life insurance policy. The benefits of your existing coverage could be used to pay off or pay down the mortgage in the event of your death.


Title insurance


Why buy this insurance? If you are worried about title fraud—criminals stealing your identity to get a new mortgage on your property, or fraudulently transferring your title to themselves and then selling or mortgaging your home.


What you need to know: This insurance consists of a one-time, upfront fee. Lender title insurance protects the lender from losses until the mortgage has been paid; homeowner title insurance protects the homeowner from losses related to title as long as he or she owns the home, even if there is no mortgage.


More information is available at itpaystoknow.gc.ca.


Source: www.newscanada.com

4 questions to ask before buying a rental property

Owning a rental property can be a profitable investment — but it’s not for everyone. Here are some questions to ask yourself before you take the plunge:
By Krystal Yee
If you’re thinking of purchasing an investment property to rent out to tenants, you will need to do some serious research. There’s much more to being a landlord than putting up an ad on Craigslist — it’s like taking on a second job. You will need to factor in realistic financial projections, and carefully weigh the pros and cons of your decision. Here are a few things to consider before purchasing a rental property.
1. Do you have enough saved for the down payment? Under Canada’s new mortgage rules, you must come up with a down payment of at least 20 per cent for a small rental property holding from one to four units. This rule does not apply to borrowers whose principal residence also includes rental units.
2. How much income will the property generate? You will need to do some research into the neighbourhood. What does rent typically cost, and what is the vacancy rate in that area? Don’t assume that you will always have a tenant — according to the Canada Mortgage and Housing Corporation (CMHC), the average vacancy rate in Canada’s 35 major centres is 2.5 per cent. To be safe, assume a four or five per cent vacancy rate into your financial projections, and don’t forget to calculate potential costs, such as repairs and maintenance
3. Can you be a successful landlord? Being a landlord is a second job. It’s not just about finding a tenant and letting the money come in every month. Not only do you have to be available to field emergency calls and keep up with maintenance such as routine fixes, yard work and even shoveling snow, but if you rent to the wrong tenant, you might have even bigger problems to deal with, such as non-payment of rent. Hiring a property manager can help, but that will greatly reduce your monthly profit from the property — and you never want to be in a negative cash-flow situation.
4. How will deductions affect your profits? By deducting certain expenses from your income, you can reduce the taxes that you owe. Applicable expenses include mortgage interest, property tax, insurance, property management, maintenance and utility bills. You can also deduct any losses from your rental property. If your expenses exceed your rental income, you can subtract your losses from any other source of income you have coming in.
Purchasing a rental property can be a great way to diversify your investment portfolio, but it is a big commitment. Being a landlord is time-consuming, and not for people who are interested in an easy, passive income stream.
Want to learn more? Check out the Canada Revenue Agency’s Rental Income Guide, where you can get more information on deductible expenses, and most other issues regarding rental property.
Krystal Yee is a marketing professional living in Vancouver. She writes about personal finance at Give Me Back My Five Bucks, and the Toronto Star’s Moneyville.ca.




Finance minister announces down payment rule changes

by Justin da Rosa 11 Dec 2015


New down payment rules will go into effective February 15, 2016.

“The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.”
The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000, the finance ministry wrote.
Minimum down payment for properties up to $500,000 will remain at 5%.
The changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market, according to the ministry.
“This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term,” Morneau said. “It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.”
Source: RepMag.ca

Breaking a mortgage can cost more than you expect

(NC) Thinking of breaking your current mortgage before the end of its term to take advantage of lower interest rates elsewhere?

Many Canadians believe their current lender can only charge three months’ interest—usually just a few thousand dollars—to break an existing mortgage.


That’s not necessarily the case, and far too many homeowners who have broken their mortgage contracts have been shocked by penalties amounting to tens of thousands of dollars.


“All homeowners want the best mortgage interest rate available, so switching lenders to improve your rate can be very attractive,” says Lucie Tedesco, commissioner of the Financial Consumer Agency of Canada. “But proceed with caution before you switch lenders.”


“It’s important to recognize that a mortgage is a binding contract. If you want out of one mortgage to switch to another, the penalties and fees for doing so could drastically reduce (in some instances) the financial benefit of the new rate. You can avoid nasty surprises by reading your mortgage contract and talking to your current mortgage lender before deciding to switch.”


Mortgage penalties


Your contract may provide for a prepayment penalty of just three months’ interest or it may specify a very different calculation. Many mortgage contracts give the lender the option of charging you an amount very close to what you would have paid in total interest if you had kept your mortgage to the end of the term. This amount can potentially be significantly greater than three months’ interest.

Remember, there may also be other costs associated with switching a mortgage, such as legal, appraisal, administrative and other fees.


Understand your mortgage


Every mortgage contract contains different terms and conditions. Federally regulated financial institutions are required to provide key information in a box at the beginning of your mortgage agreement, including information about prepayment privileges and charges.


Banks must also include in mortgage documents a toll-free number you can call to speak to a knowledgeable person for detailed information on prepayment penalties.


As a consumer, you have the responsibility to read your mortgage agreement. If you want to switch to another lender and you do not understand the cost of paying off your mortgage early, visit your banker, ask questions, get answers and make an informed decision.


More information is available at itpaystoknow.gc.ca.


Source: newscanada.com

Mortgage Rates for Dec 8, 2015 — By Peter Paley


Peter Paley - Your Home and Mortgage Peter Paley

Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

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. Call today!
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.


Posted Rates

Our Rates

























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

Prime Rate


5 yr variable


Looking at Purchasing that New Home, Needing a Mortgage,

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.

Contact Peter Paley at Invis Mortgage


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TEN GREAT REASONS to use a Mortgage Broker

Peter Paley - Your Home and Mortgage Christmas 2015New Picture 2015


TEN GREAT REASONS to use a Mortgage Broker

For many Canadians, mortgage payments are their single biggest expense. Yet most don’t comparison shop to ensure they’re getting the best mortgage rate and terms available, which can cost tens of thousands of dollars over their mortgage years. Don’t make the same mistake!

Here are 10 reasons why you need a mortgage broker working for you:

  1. CHOICE. A wide range of lenders, including major banks, credit unions, and other national, regional and private lenders will instantly become accessible to you, ensuring that your specific needs are matched to the right mortgage.
  2. GREAT RATES. Get money in your pocket by taking advantage of Invis’ clout with lenders. Our stellar reputation and longstanding experience allows us to negotiate great rates and access limited time specials.
  3. A FOCUSED EXPERT. A mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace and focused solely on your needs. You’ll get advice that will make a significant difference in your financial life.
  4. INDEPENDENCE & OBJECTIVITY. I work for you, not the lender.
  5. SOLUTIONS WHEN YOU NEED THEM. I can provide funding for bank turndowns, the self-employed, past credit problems, etc. There are mortgages for almost any situation and I know them all.
  6. SAVE TIME. Everything relating to your mortgage can be managed around your busy schedule.
  7. SERVICE, SERVICE, SERVICE. I’ll be with you every step of the way, to answer all your questions, outline your best options, and efficiently guide you through the process.
  8. ONGOING SUPPORT. My services don’t stop after the mortgage closes. I will stay with you for the life of your mortgage with advice and opportunities.
  9. NO COST (oac). The winning lender pays compensation for the services and solution provided, which means no fees for you in the vast majority of cases.
  10. YOUR SATISFACTION. My goal is to ensure that you are so completely satisfied with your mortgage experience that you will be happy to refer me to your friends, family and colleagues.

Reno boom!

Canadians are on track to spend $53 billion on renovation projects this year. Scotiabank recently reported that spending on renovations was up by six per cent as Canadian homeowners seize the opportunity presented by historically low interest rates to enhance the comfort and enjoyment of their home, while boosting its value. Many are doing a “reno and roll”: rolling the cost of their renovation into their low-rate mortgage. The end result is an upgraded home using the lowest cost funds. If you’ve owned your home for a few years, chances are, with some expert refinancing advice, you too could launch your own ‘reno & roll’ project. Let’s talk and get started on building a smart financial plan for your dream renovation!

Peter Paley - Your Home and Mortgage Christmas 2015-1

Peter Paley
Mortgage Associate

10 Reasons why a mortgage is declined – From Jackie Woodward Edmonton Mortgage Broker

Qualifying for a mortgage should not be complicated, and there are numerous articles written about how to get approved. This week I want to cover a few reasons why a lender could decline a mortgage application. If only one of the below applies, it’s very likely you can still get a mortgage. However, when your financial profile fits under more than two of the categories below, it could be more challenging for you to obtain mortgage financing approval.

  1. Thin credit

A reliable indicator of a good solid credit score is two years history of reporting on at least two debts. If an individual is short on reporting accounts, some lenders may consider alternative documents to support positive repayment habits. Six months of cell phone payments, car insurance or utility payments could be requested to demonstrate credit. If unable to show any history of past debt repayment, you may have to provide a larger downpayment or be asked to bring on a strong co-signer.

  1. Poor repayment habits

If a borrower has weak repayment skills, the potential lender will be looking for strength in other areas of the application to confirm mortgage payments will be made in a timely manner. Dependable income source(s), a larger investment through increased downpayment, and/or a co-signer can all add strength to an application with a bruised credit component.

  1. Downpayment source

Lenders become a little wary of borrowers purchasing a home using a downpayment solely sourced from gifted or borrowed funds. The rationale behind it seems to be that it is easier to walk away from a property when there is no investment of personal cash into it. It’s not surprising when a lender requests a portion of the downpayment come from the borrowers own resources before an approval will be extended.

  1. Lack of supporting documents

Mortgage lenders must have sound lending practices and one way they do this is through the collection of documents proving a borrower adequately qualifies to successfully repay mortgage financing extended to them. If a borrower cannot provide paperwork confirming their financial picture that is acceptable to the lender, they are usually referred to an alternative or private lender that has fewer requirements.

  1. Borrowing too much

Too much mortgage is not a good thing. Lenders have preset qualifying guidelines which prevent lending borrower’s amounts where they can’t afford the payments. If attempting to borrow more than they can repay, a lender may request a larger downpayment to make the mortgage amount more manageable or decline the application for lack of affordability.

  1. They don’t like the property

Unique properties tend to create problems in the eyes of a lender as they are looking to lend on properties that appeal to larger demographics. Age restriction, partial commercial component, previous grow-ops, black mold and mobile homes are features that could prevent a property from getting the stamp of approval. If you’re interested in a property that does has some unique features, run it by some potential lenders before you submit an offer to ensure there are financing options available to you. 

  1. They don’t like the location

A property located in an isolated area far away from a major city center can also present some financing challenges as not all lenders like all locations. If looking to buy in a remote area or community, ensure all other features of your mortgage application are strong.

  1. Overextended

Owning a home can be expensive, there are closing costs when you buy, potential repairs after you own and ongoing maintenance which keeps costing you money. As a result of this, lenders will be looking for a borrower to have the ability to cover these expenditures. If maxed out on all available credit lines and using up all savings for downpayment, the lender may be concerned about the lack of funds leftover after purchasing a home. Increase the likelihood for mortgage success by always keeping some money in a savings account, and make sure to avoid an unmanageable debt load.

  1. Lack of home equity

When purchasing a home to owner occupy, a minimum of 5% downpayment is required and 95% of the purchase price can be financed. However, if you are considering refinancing a property you already own, you can only borrow up 80% of the home value less any existing outstanding mortgage balances. Having said that, there are some private or alternate lenders who may lend you more than 80% of the current value though the interest rate will likely be higher and there could be upfront fees charged as well.

  1. Honesty is the best policy

Intentionally falsifying documents or application details will most often result in an immediate decline from the mortgage lender. Whether it’s at the beginning of the transaction, or days before closing when signing documents at the lawyer’s office, the lender has the right to withdraw their financing approval if any misrepresentation is discovered at any stage of the mortgage process.
It’s not difficult to get a mortgage if your financial profile fits into the right boxes as there is a combination of guidelines that must be met in order for a borrower to be eligible for a mortgage approval. Property, income, credit, net worth, and mortgage amount compared to home value, are just a few of the most important details considered when reviewing a potential mortgage application.
Increase chances of an approval by being a low risk borrower with a strong financial profile. Working with an experienced mortgage professional who has access to multiple mortgage lender options also increases the likelihood of a positive response.
Are you looking for mortgage information? Contact Jackie at 780.433.8412 or info@mortgagegirl.ca. Stay in the loop by following on Twitter @mortgagegirlca.
Source: Jackie Woodward Mortgage Broker

Message from Realtor Rosalie Drysdale

Coming to the end of your term with your mortgage, needing to resign for the next five years. Contact one of the Mortgage Brokers from my website


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.

How to buy and sell at the same time

You own a home now, but it’s time to make a change. If you’re moving up or downsizing you probably have questions about how it all works. This article is about the logistics of buying another home while you still own your existing property. Here are 10 facts you need to know about navigating through the two transactions at once to make the move as smooth as possible.
Get the facts on your existing home

  • Find out the value of your home by asking a realtor to provide you with a detailed market evaluation or pay for an appraisal by a licensed appraiser. This will give you an idea of what residual funds you will net from the sale of your existing home which will then determine how to structure a new mortgage for the new home. Be conservative when working with the downpayment amount so you have some wiggle room when negotiating the sale of your current home.

  • After you have determined what new mortgage amount you will require, you will then need to contact your current lender to ask them 3 questions:
    1. Is the mortgage portable to a new property?
    2. If it is and you are moving up, can the new mortgage rate be “blended” and what that new rate be in order to avoid paying a payout penalty.
    3. Lastly, if you were to pay the existing mortgage out in full in order to get a lower rate, what would the penalty be?

Do be advised you are required to qualify for any new mortgage whether you “port” the existing mortgage to a new property or get a brand new one. When you port your mortgage, you are effectively only transferring the terms of the current mortgage to the new property.

  • You now need to decide how you’re going to sell your current home. Although there are other options available to sell your home, I will always recommend using the services of a realtor as I personally would like to leave any showings and negotiations with any potential buyers in the hands of a professional.

Financing your next home

  • Based on your initial findings about your current residence, I recommend obtaining a pre-approval for your next purchase as this will give you an idea of what kind of requirements you’ll need to meet in order to be approved for your next mortgage.
  • Your new mortgage may contain a condition to confirm your existing place has sold. This could be for either downpayment or qualifying purposes or both. See if a back-up plan is possible in case your existing home does not sell by the time you take possession of the new home. Your mortgage professional can work through a few potential scenarios with you until you’re comfortable with the options you have for all possible outcomes.
  • Perhaps you are looking into the possibility of keeping your current home and turning it into a rental property. Some lenders will allow this as long as you can qualify to carry both properties. Talk to your mortgage professional about the option of including potential rental income to help you qualify. Be aware the lenders tend to calculate the inclusion of rental income differently, so if you don’t qualify with your current lender, check others. If you are leaning to keeping both properties, ensure you explore all options in accessing funds for the downpayment on the new home. Is a gift from a family member a possibility? Or do you have sufficient funds in savings or can you look at refinancing your current residence to access the equity?
  • If the downpayment is coming from anywhere other than the sale of your existing home, the requirements are pretty straightforward, your lender will look for the paper trail to support the source of the funds being used. If the downpayment funds are coming from the sale of a property, you’ll be asked to confirm what your equity position is via a current mortgage statement as well as a copy of a fully executed sale agreement for your current residence along with all condition removals related to that contract.
  • Qualifying for your next home will be similar to getting approved the first time. Your lender will be looking at income, credit, downpayment and the property you’re financing. If your income or credit profile has changed drastically such as you becoming self-employed or your credit isn’t as good as it used to be, be sure to have a conversation with your mortgage broker about how the qualifying process could differ from the first time around.
  • While many of our mortgage rules have changed, document requirements likely haven’t changed too much since you last qualified. What you’ll be asked to provide will be dependent on your current financial profile. Your mortgage professional along with a mortgage pre-approval will give you an idea of what you’ll be asked to provide in terms of supporting documents.
  • If the possession date for the sale property is after your purchase possession date and you need those funds for downpayment, worry not as there is a solution known as bridge or interim financing. The lender will not only finance your mortgage, they will also give you a short-term loan to cover the downpayment. This way the seller gets their money and you get possession of your new home even though your old home is still technically yours. Once your existing place has sold, your lender will recover the funds they lent to cover your downpayment. It is important to note that you must have an unconditional or firm offer for your existing home in order to qualify for bridge financing. Be aware not all lenders offer bridge or interim financing and the terms and costs for this service with the ones who do can be quite different, so double check the conditions before you commit.


It can be stressful to sell and buy simultaneously and as you can see from above there are a lot of things that need to go right in order for everything to go smoothly for you. The best way to ensure a smooth move is to do your research first. Explore your options until you find one that allows you to confidently move forward into your next home while leaving the last one fondly behind.
Do you have mortgage questions? Contact the Jackie the Mortgagegirl for answers at 780.433.8412 or info@mortgagegirl.ca. Stay in the loop by following on Twitter @mortgagegirlca.

Thanks to Edmonton Mortgage Broker Jackie for this great article. If you live in the Alberta Edmonton area and needing a mortgage. Please call Jackie Woodward
Source: Jackie Woodward Mortgage Broker

Message from Realtor Rosalie Drysdale

Working with a Realtor who can help you sell your home at the same time when purchasing that new home. Call Realtor Rosalie Drysdale to help you with that progress and with the help of a Winnipeg Mortgage Broker you will be able to get the correct financing for your new purchase.

3 things that do or don’t change with a Bank of Canada rate cut

paley mortgage team feb 2015



Your Home & Mortgage
When you’ve got “rate envy”, does it make sense to refinance?Who would have believed that mortgage rates would have such a continued downward trend? Mortgage shoppers are looking at some of the lowest rates in history, and many homeowners with existing fixed-term mortgages are experiencing some “rate envy” about today’s rock bottom rates.It might be worth a conversation about your options.
Typically, we think of a fixed term mortgage as a non-negotiable contract. And it’s true that there are financial penalties to re-negotiate. But, many clients have been asking for a mortgage analysis – a detailed look at the penalties versus the payoffs – to determine whether it’s worth refinancing.
What does it cost to get out of your existing mortgage? Generally, you can expect to pay the greater of either a) three months’ interest, or b) the interest-rate differential. The interest rate differential can be high in some cases; your mortgage lender will expect you to pay them the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.
So is it worth it? For some homeowners it can be an important moment of opportunity, while for others, it may not be worth the costs involved. Most lenders will include the cost of the payout penalty and other costs into the new mortgage so you don’t have to be out of pocket to complete the transaction.
I would be happy to help you make a realistic assessment of your situation and help you determine if your benefit outweighs the cost. With rates where they are today, there’s never been a better time to talk.

3 things that do or don’t change with a Bank of Canada rate cut

  1. The prime rate in most cases will change, but lenders decide how much of that cut they will pass on to consumers, if any. If you have a variable mortgage, you are now paying less; sixty per cent of the two recent cuts are now reflected in lower variable rates. Take advantage and keep your payments the same so you pay off your principal faster.
  2. Fixed rates don’t, they are influenced by the bond market.
  3. Variable mortgage approvals don’t, they are based on a qualifying rate, which means your borrowing power likely won’t increase.

Thinking of falling into home ownership?
Let me help determine how much home you can afford and pre-approve you before you start shopping. We’ll also discuss downpayment options and all of the costs associated with buying a home. Don’t be tempted to rush into anything just because the holiday season approaches so quickly. It’s best to make sure you find the right house and stick with your budget. If you are thinking of jumping into homeownership this fall, let’s have a conversation!
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