Appraisal Risk

Firm Offer ‐ Risk Assessment I have underwritten your mortgage application, and you meet both the debt service and credit guidelines.  If you decide to remove your condition of financing from your offer to purchase, you will have the following risks to consider:   

 If the property's appraised value comes in lower than the purchase price, you must increase your down payment to cover the difference.  The fewer funds you have available as a buffer, the greater the risk that you won't be able to make up the difference.   

 Appraisers rely heavily on recent comparable sales in the immediate area when estimating a property's value. The fewer comparable properties there are, the more subjective the appraiser's job becomes, especially if your subject property is remote, or unique.   

 If you are making a substantial down payment on your property, then the appraisal condition presents only the limited risk that you may be required to pay for high‐ratio loan insurance if the value is adjusted downwards.   

 If you are only making a small down payment with limited additional resources, the risk in waiving your financing condition before the lender has signed off on the appraisal increases as room for adjustment is smaller.   

 There is also the risk that an appraiser flags a specific issue with the property, such as the presence of knob & tube wiring, lnsulbrick, disturbed asbestos, UFFI or other materials the lender deems unacceptable.  In such cases, the lender may still be willing to proceed on the condition that a portion of the mortgage funds be held back until the borrower provides confirmation that issues have been addressed. Once the necessary repairs are made, the lender then releases the held back funds.   While waiving your financing condition before having a fully qualified commitment from your lender is a fairly common practice at the time being for the GTA, you are taking a significant risk when you do this.   The bottom line is; the less financial flexibility you have, the more important the financing condition becomes. 

Lindsay Doke  416 464 6423 

MountainView Mortgage Brokers

Foreign Buyers Banned Toronto Real Estate

 So... Foreign Buyers BANNED

for two years except...

If your kids buys the house for cash...

Nothing changed

https://www.immigration.ca/permanent-residents-international-students-exempt-from-canadas-2-year-foreign-buyer-ban

https://BuyinginToronto.ca

Call David Pylyp 647 218 2414 or book an appointment

Calendly.com/DavidPylyp

Is your Mortgage Renewing Soon?... What else is out there?

These are interesting times we are living in, with a record inflation that has not been this high since August 1991.  Many clients out of fear of the unknown are simply signing their mortgage renewal agreements without looking at what else is out there.  

The Trudeau government provided many people during Covid 19, particularly those who were self employed, with monetary relief so they could stay afloat. It also resulted in them taking on more debt as they were forced to close shop, but still had to maintain payments on their leases, mortgages and other financial obligations tied to their businesses.

 

There is a huge growth in alternative lending in this sector. Having one payment to consolidate all your debts is the credo under how this lending operates. One can argue you are further ahead with a higher mortgage rate with one payment vs  your low rate mortgage at the bank that keeps you with balances on your unsecured debt. This is because your reported net income on your tax return does not debt service at the mortgage stress test. This rate is currently 5.25% as of April 14/2022.  So what good is low rate on your mortgage when you still have unsecured debt at 2 to 3 times higher. 

 

There is a better way. Want to know more...

 

Please connect with me 

https://RenewYourMortgage.ca 

via email at lindsay@mountainviewmortgage.ca or 

by phone/text @ 416 464 6423

Lindsay Doke Mountainview Mortgage,

Mortgage Agent lic M18001723 

*Photo Mirabella  1926 Lake Shore Blvd W. Toronto 

Finance your New Home Purchase Based on Todays Appraisal

 

Hello Everyone,

 

I hope this finds you well.

 

New niche product with one of our B lenders

 

Say your client bought 2 years ago at 800K from a builder and was putting down 20% down for a future 640K mortgage. They had already given 120K to the builder already today.  Today the property is worth over 1 million and is closing in the next 120 days.

 

I can do up to 80% financing providing the client can qualify on the increased mortgage and this way the 120K deposits the client made already can be returned to them  to be used for their own needs to maximize their cash flow.

 

 

Call me if you have any questions or have a client that fits this space.

 

Lindsay

 

Lindsay Doke

Mountainview Mortgage

Mortgage Agent 

License M18001723

 

E    lindsay@mountainviewmortgage.ca

C    416 464 6423

W   http://lindsaydoke.ca

Financial Literacy Lessons McGill University

So many people lack basic financial understanding of Mortgages, Debt, Interest and Investments

This online course is timely for Beginners and Mature Investors to learn and make better choices..

McGill Personal Finance Essentials is a free, online personal finance course offered in English and French, four times per year. Taught by professors from McGill University’s Desautels Faculty of Management, the course is open to everyone!
From budgeting to borrowing, real estate and beyond, invest a few hours in this free, online course1 and you’ll gain the knowledge and confidence to make a lifetime of smart financial decisions.
Finish all course modules to receive a McGill Personal Finance Essentials attestation of completion2.

https://www.mcgill.ca/desautels/industry/community-engagement/mcgill-personal-finance-essentials

Help Educate yourself to make better informed decisions.

http://RenewYourMortgage.ca 

Docs you need to Renew Your Mortgage

Get these documents together before you start the refinance process.  Identification 0   Photo ID of two pieces plus / Passport if available.  Citizenship Docs not required. 

The stress test does apply when you change lenders but in today's rate environment that should not slow you down. 

Think back to your original mortgage and all of the documents that you had to gather. For a refinance, the documentation for your refinance is pretty much the same. The overall purpose is to prove different aspects of your finances to your lender.

All lenders have slightly different requirements, but you can bet that they'll probably ask for documents in the following seven categories:

1) Proof of income: Proving your income generally requires the following documents.

The last 30 days of pay stubs

Your current tax returns

Tax forms like T4's and Notice of Assessment ( NOA ) 

2) Insurance: You'll probably need to produce documentation for two kinds of insurance:

Homeowners insurance, to verify that you have enough current coverage for your home.

Title insurance, to help your lender to check the taxes, the names on the title, and the legal description of the property.

3) Credit information: You'll need a recent credit score and credit reports.

4) Monthly debt load: While your lender will be able to see your debts during a credit check, you will still have to account for those debts. That means pulling together documents for things like:

Your current mortgage

Home equity loans

Credit cards

Auto loans / Lease Details

Student loans

5) Total assets: You need to document all of your financial assets other than your home. This means documenting things like:

Savings accounts

Stocks

Bonds

Mutual funds

CDs

Retirement accounts like RRSP's and TSFA's 

Other real estate

6) Appraisal: Your lender will probably also ask for a current appraisal of the house.

7) Loan to Value appraisal: The lender will usually also ask for some kind of appraisal (perhaps informal) of how much your house is worth compared to what you owe on the existing loan.

Once you've got all of this information together, it should be smooth sailing, right? In a perfect world, yes. Expect plenty of delays regardless of how well organized things are on your end. Not that this is a reason not to do a refinance-but knowing what to expect can make the process seem a little less frustrating.


Further information or Direct Answers are available from Veronica Thompson 647 628 7007 or VThompson@MortgageAlliance.com

Call today!

Included Child Benefit to Qualify

Slow on a few payments
Stressed at the debt?

In my new role I help clients in  all situations.

In this case my clients had a young family with 4 children, three under 12; who needed to re-finance their mortgage.

The credit score was low, so a B lender was chosen. Unsecured debt was at the max with some slow recent payments.

I was able to use a secondary child tax benefit allowance as additional income to help the clients qualify for a one year term.

I am helping them restore their credit score so I can renew them back to a preferred lender in 1 year.  I saved them $1,200 a month in payments by consolidating everything into a single mortgage payment.

The best part.. in their own words. Lindsay we were at the end of our rope, until you were able to help us and keep us in the family home we love.

Let me make a difference for your clients.

Lindsay

Lindsay Doke

Mountainview Mortgage

Mortgage Agent 

License M18001723

E    lindsay@mountainviewmortgage.ca

C    416 464 6423

Creative Solutions for Creative Times 

Lock in that HELOC

You were always a variable mortgage account.  

Your debt was added to your HELOC

You need to lock in

There are 3 rate increases forecast for 2018.

Renew Your Mortgage 


Why?

No stress test.
Private money available

Freelance, Contract or Independent Contractor friendly

Financial Wealth Planning 101

Save for a rainy day

Pay Yourself First

Save for Retirement

Freedom 55 ....   Pick your program   BUT we need to be taught to pay ourselves first.

Yup, the registered retirement savings plan. How else can you transfer $26,000 from one bank account to another and, for the simple act, save a potential $14,000 in tax? In the days of eat-the-rich liberalism, how did the RRSP slip through the cracks? After all, the more money you make, the greater the benefit. It allows 1%ers to contribute huge sums of cash, to write that off taxable incomes, then grow assets for decades without ever being taxed. Finally, if they’re crafty, they can retrieve a lot of that wealth without exit tax.
So the deadline to make a contribution deduct it from 2017 taxes is midnight tomorrow. The maximum amount possible is 18% of what you earned last year, to that limit of twenty-six grand. Plus add in all contributions you never made in the past. Plus an overcontribution of $2,000.
If you lack the money, borrow it. Banks will loan at prime (3.45%) and usually not require payments until your refund arrives. Use it to pay off a chunk of the loan. Now you’ve created instant equity. Or, as mentioned, transfer money (or assets) now owned into a self-directed RRSP – called a ‘transfer in kind’ – and the government will send a refund for selling yourself stuff you already owned.
If you earn more than your squeeze, open a spousal plan, stuff it up to your contribution limit and write it off your income. After three years s/he can withdraw it and pay tax at the lower rate. Presto. You’ve income-split. Ditto for a mat leave. Just plan to have a baby three years after you contribute (c’mon, let’s show a little discipline here…) and the plan can be collapsed to fund the time at home.
Sadly, most moisters don’t get any of this. Four in five, surveys indicate, have no intention of using an RRSP whatsoever – mostly because ‘retirement’ is a fuzzy, far-away, hazy thing and they’re cynical, suspicious little hipsters, anyway. What a fail. The biggest use of an RRSP is not for funding your wheelchair or boxes of KD in old age but rather for tax-shifting.
Get laid off? Use the cash in the RRSP to live on. You got a big refund when you contributed and pay little or no tax when you take it out. Sure helps.
Want a sabbatical between gigs? Then live off the RRSP money, travel the world and don’t stress about income.
Got pregnant? An RRSP is perfect for saving and growing money when you’re working, then using it to finance the pregnancy at little or zero tax.
There’s more. Like putting a mortgage inside an RRSP and make payments to yourself. Or (of course) using the RRSP bonanza to fund your TFSA. Or utilizing accumulated RRSP room to soak up the cash portion of a pension you’re commuting. Or making a contribution, getting a refund, then using both to buy a home with a bigger down payment – without triggering tax.
So why are RRSP contributions going downhill? (The average is under $5,000.) Why are so many people taking money out of their plan instead of putting it in? (As mentioned here a while back, one bank found 40% of us are raiding the plans, mostly to buy a house or pay for general living expenses.) And why are people so piteously ignorant of what this thing is, and can be used for. (Another survey found 60% of moisters think they can use RRSP money to pay for daycare.)
Simple. Nobody teaches this.  http://www.greaterfool.ca/2018/02/28/who-knew/

We need to have classes on how to earn and save our own money.

http://RenewYourMortgage.ca 

Working towards your best interests - Renew your Mortgage Toronto

“What will really save clients money is finding someone who will take the time to meet with you and understand your wants and needs,” Maguire said. “My opinion is clients should deal with someone who has their best interest at heart.”

http://www.mortgagebrokernews.ca/news/broker-miffed-by-rate-shopping-advice-201753.aspx


http://RenewyourMortgage.com

Toronto Real Estate

Spring 2015 edition of CMHC's Housing Market Outlook

Spring 2015 edition of CMHC's Housing Market Outlook - Greater Toronto Area is now available and can be accessed by clicking on the link below.

http://www.cmhc-schl.gc.ca/odpub/esub/64319/64319_2015_B01.pdf

Here are the highlights for the current edition:

•Condominium apartment starts will dominate construction in 2015 and 2016 •Low mortgage rates and increasing consumer confidence will boost existing home sales in 2015 before edging lower in 2016 •Rising supply of condominium apartments for rent will exert some upward pressure on the average vacancy rate •Lower oil prices will help to boost employment

Looking for a Mortgage Renewal?

http://www.renewyourmortgage.ca/

The Bank of Mom and Dad

Mortgage Tip of the Day:

This one is very clever and it came to me from a client.

A client was getting a gift from their parents for part of the down payment on their new home. This clever person took the gift and contributed to their RRSP. Then they withdrew the funds without penalty (first time buyer) and used the gift for the down payment as it was intended! 

By doing this they got the tax benefit on their income tax AND they have made a commitment to contribute the funds back to the RRSP for the next 15 years! 

Smart smart smart! 

I am now going to promote this plan every time I have first time buyer getting a gift. (Did I mention my client's mom is a financial planner?)

Thank you Marcy Berg! 

http://renewyourmortgage.ca 

You should be using every TIP you can to maximize your equity.
Call today!   647 218 2414

Behind on your Taxes?

Do you need to pay some bills?
Looking at the next tuition bill?

Have you let the property taxes slide for a couple of years?  Now the renewal is in and you have a problem.

What will you do?

Create a second mortgage that can absorb some or all of your high interest rate debt;  Add in your unpaid taxes PLUS prepay the second mortgage for one year.

Result;

You cleaned up your debt
Improved your cash flow 
Enhanced Credit Position

Call today

http://www.renewyourmortgage.ca/services.html

Bring me your problems I want to help

Bring me your problems, I want to help you. I am a professional problem solver. Tell me about yours. http://www.renewyourmortgage.ca/services.html  #YYZ Pls Share

Call me direct at 647 218 2414

Let's be #DebtFree2015

What a magnificent Goal!

Debt Free in 2015

You CAN refuse to pay more interest! 

Manager your stress; reduce the worry.

You can refinance to improve your cash flow, eliminate high interest rate debt, refinance for renovation, save money with a lower interest rate or move to a better lender. 

How can we help you?

http://www.renewyourmortgage.ca/home.html

Housing for Seniors

Survey Says:  Aging in place is the demographic of choice.  Boomers are simply hanging on longer in their own homes refusing to downsize as expected.

“Housing for Older Canadians — The Definitive Guide to the Over-55 Market” was developed to address the housing needs of Canadians aged 55 and older and is intended for those developing seniors' housing, including both for-profit developers and organizations interested in sponsoring housing projects for seniors.  Find out more about this active and mobile demographic, a group that is demanding in their expectations, looking to live independently and interested in "aging in place".

❶

Volume 1 — Understanding the Market
The first volume provides a broad overview of the seniors market in Canada and of trends in seniors' housing arrangements, incomes, and retirement.

❷

Volume 2 — Responding to the Market
The second volume provides information on market factors to consider and analyze when contemplating a new housing development targeted to older Canadians.

❸

Volume 3 — Planning the Project
The third volume contains detailed information on planning and developing a housing project targeted to older Canadians.

❹

Volume 4 — Designing the Project
The fourth volume provides guidance on the ways in which developers and sponsors of seniors’ housing can accommodate the changing needs of people 55 and over through appropriate design of dwellings and communities.

❺

Volume 5 — Services and Amenities
The fifth volume reviews the principles for providing services and amenities within housing developments, as well as the range of options for partnering with public, or private, sector providers that specialize in the management and/or delivery of services to older Canadians.

The reality is so many tools, devices and designs can make your home very habitable for a very long time, it is worth the investigation..

A Renew your Mortgage representative would be pleased to review credit lines for home improvements to make you more comfortable.

http://www.renewyourmortgage.ca/services.html

Business for Self Borrowing Guidelines

Renew your Mortgage is able to provide funding on any Business for self, self employed individual under the following terms and conditions.

Streamlining the Home Financing Process for Self-Employed Borrowers CMHC offers mortgage loan insurance options for self-employed borrowers with  traditional third party validation of income.  Fact sheet  Presentation — For Borrowers With Traditional Third Party Validation of Income  Applicable Premiums Benefits of CMHC Self-Employed Access to Homeownership With a minimum down payment of 5%. Competitive Interest Rates Access to CMHC-insured financing, and as a result, competitive interest rates. Availability Products and services available coast-to-coast-to-coast. Features Available for purchase, refinance and improvement. Flexible financing options — single advance and progress advances are available. Interest rate types include: Fixed, capped and standard variable, and adjustable. Self-employed borrowers with documentation to support their income have access to all existing 1 – 4 unit CMHC Mortgage Loan Insurance products subject to the same product criteria and insurance premiums as salaried borrowers. CMHC homeowner mortgage loan insurance is available to a maximum of one property (1 – 4 units) per borrower/co-borrower at any given time. CMHC offers mortgage loan insurance premium refunds for homeowners who purchase an energy-efficient home or make energy-saving renovations to an existing home. See CMHC Green Home for more information. Product Highlights: Loan Purpose Purchase, refinance, purchase or refinance with improvements, single and progress advances. Loan-to-Value (LTV) Ratio Purchase : up to 95% LTV (1 – 2 units) up to 90% LTV (3 – 4 units) Refinance: up to 80% (1 – 4 units) Down Payment Traditional* and Non-Traditional** Sources Number of Units/Occupancy 1 – 4 units Maximum Amortization 25 years Maximum Purchase Price Maximum purchase price or as-improved property value must be below $1,000,000. Borrower Eligibility Permanent residents including newcomers to Canada. Non-permanent residents are limited to a 1 unit owner-occupied property and a maximum LTV of 90%. Income taxes must be paid and up to date. Approved Lenders are to verify, prior to submitting an application to CMHC, that the borrower(s) does not have existing CMHC-insured homeowner financing. Lender Requirements Borrower’s Notice of Assessment, audited financial statements or review engagement financial statements prepared by practising accountant. Income determined by averaging the income of the previous two year period or using most recent year if income has increased year over year for 4+ years. Confirmed NOA income can be grossed up 15%. Employment Requirements Minimum 2 years in same type of work, even if not in a self-employed capacity. General Guideline for History of Managing Credit*** (Credit Score) LTV > 80%: Recommended minimum score of 600 LTV 60.01 - 80%: Minimum score of 580 LTV ≤ 60%: No minimum score required Debt Service Guideline*** Credit score: GDS/TDS: < 680 : 35% / 42%, 680+ : 39% / 44%* *Debt service flexibilities are based on an assessment of the strength of the overall application. Satisfying the minimum credit score alone does not automatically entitle the borrower to debt service flexibilities. Loan Security First Mortgage, Second Mortgage (Refinance) or Chattel Mortgage Applicable  Premiums (Owner-occupied properties) Surcharge Loan to Value Ratio Premium on Total Loan Amount Premium on Increase to Loan Amount for Refinance Blended Amortization Refinance**** 0.60% Up to and including 65% 0.60% 0.60% Up to and including 75% 0.75% 2.60% Up to and including 80% 1.25% 3.15% Up to and including 85% 1.80% N/A Up to and including 90% 2.40% N/A Up to and including 95% Traditional Down Payment* 3.15% N/A Non-Traditional Down Payment** 3.35% N/A *Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (< 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency). ** Non-traditional sources of down payment include: Any source that is arm’s length to and not tied to the purchase or sale of the property such as borrowed funds, gifts, 100% sweat equity and lender cash back incentives. *** Individuals can access their scores and credit reports from the following credit reporting agencies:www.equifax.ca or www.transunion.ca. For purchase transactions the premium payable is the Premium on Total Loan Amount. For refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount. **** Where there is an increase to the loan amount, the amortization period of the existing CMHC-insured loan and the loan increase may be blended using a weighted average provided the resulting amortization does not exceed the remaining economic life of the property. For refinance transactions the resulting amortization may not exceed 25 years. A 0.60% blended amortization surcharge to the loan increase applies to the Premium on Increase to Loan Amount.

Contact a Renew Your Mortgage affiliate member for independent mortgage advice.

One Car repair away from Losing the House

Things are tight; Gas Prices, the commute to work.

You have bills to pay.  

If anything goes wrong with either of the cars this winter, it could lead to a financial catastrophe.

Although the LENDERS may work with you to let you catch up...

They may not renew you at the next renewal period because of chronic arrears.  (You are constantly behind).

You need some independent Financial Advice from a licensed and seasoned mortgage professionals.

BUT let's look at all the variables; 

• Interest Rate on Renewal
• Higher Interest Balances on Revolving Debt
• Taxes on House and Notice of Assessment
• Consolidation
• Legal Fees and Discharge Penalties

With a refinance program, additional High interest rate debt can be included and re amortized with the mortgage balance to save your monthly cash flow; yet save you money per year on the Total interest payments made.

Interested?

Click Thru and a representative will respond within 24 hours.

Serving the #Toronto #Mississauga and Southern Ontario mortgage markets.

Would you like an EXTRA 3 - 12 Mortgage deals a year?

Mortgage Brokers overlooking a lead generation gold mine!

If you’re not a professional online marketer, Web programmer or active blogger — and most mortgage agents are not — the term search engine optimization (SEO) is intimidating. You know it is really important to how your website attracts potential clients, but you may not know how to make that happen.

One foundation is links.  Quality links that take people back to your online presence.

http://www.renewyourmortgage.ca/affiliates.html

You need to provide Content on your site and blogs with explanations and details about the services you provide.  What is the Best Delivery Method? Video.

Mortgage Brokers need to develop SEO skills or pay someone to do this for them.  Investments of $800 to $1,000 per month for SEO are not uncommon. Turn Key websites can be acquired for $1500 - $2500 depending on the complexity of design.

Get started!   Others are already running!