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Archive for the ‘Mortgages’ Category

Trouble Making Your Mortgage Payments?

September 1st, 2009 No comments

For most Canadians, your home is your most important investment. But owning a home also comes with a great deal of responsibility. When unforeseen circumstances impact your ability to meet your mortgage payments, it’s important to take quick action and contact your lender. With early intervention, your lender can help you fund a solution to your financial difficulties.

For mortgages insured by the Canadian Mortgage and Housing Corporation (CMHC), CMHC provides lenders with the tools and the flexibility they need to achieve a solution to your unique financial situation. Depending on your circumstances, this might include:

  • Converting variable rates into fixed to avoid sudden rate increases
  • Temporary short-term payment deferral.
  • Extending your repayment period to lower your monthly payments
  • Adding any missed payments to your outstanding balance
  • Arranging special payments unique to your particular financial situation


CMHC is also willing to consider other alternatives proposed by the mortgage professional to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

For more information visit: CMHC or contact me on 1.866.824.8057, and we can help guide you in the right direction.

Source: Canada Mortgage and Housing Company/Charmaine Idzerda, Verico Designer Mortgages Inc.

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New 18 Month Mortgage Released!

June 30th, 2009 No comments

This new exciting mortgage product is currently at a rate of 2.75%!

  • Purchase must close by August 28th, 2009
  • The 18-month term is convertible at any time with no penalty to a 5 year fixed rate mortgage, at published rates available at time of conversion
  • 20% prepayment allowed each year!!
  • You may also increase payment by 20% each year
  • On this product a minimum amortization of 15 years is allowed

Email Charmaine@designermortgages.ca for more information on getting this exciting new product!

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Thinking about converting your variable mortgage? Read this first!

June 22nd, 2009 No comments

Would you like to pay an extra $300 per month on your mortgage? Not likely.

That hasn’t stopped a number of Canadians, with the deal of a lifetime on a variable-rate mortgage, from switching over to a more expensive fixed-rate product and paying the extra freight.

A fear of rising rates is driving the rash decision. But if you’ve finally managed to pin your banker to the ground, why on Earth would you let him off the mat?

More than 28% of Canadians have a variable-rate product tied to prime, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP). If you negotiated a deal before October of last year, chances are you are now borrowing money for as little as 1.35%. That’s based on deals that at one point saw the banks giving 90 basis points off prime. Prime is now 2.25%.

However, Joan Dal Bianco, vice-president of real estate-secured lending, TD Canada Trust has said “It’s not a mass rush yet, but we are starting to see … people locking in. But variable rates are still so good.” She stops short of questioning why a consumer would pull out of these “deals” that are no longer available on the market. Try to get a variable-rate mortgage today and the best you can probably hope to get is 60 basis points above prime, or 2.85%.

“Bonds yields are going up rapidly and people are starting to realize the rates are going to go up,” Ms. Dal Bianco says. Throw in the fact the Bank of Canada used the weasel word “conditional”(on inflation rates)when it promised not to raise rates until June, and you can understand why some people think today’s record-low prime rate might not hold. But if you’re someplace between 60 to 90 basis points below prime, the rate is going to have to go up pretty fast to justify locking in today at 4%, even though that is just slightly above the all-time low hit last month for a five-year term.

“I don’t understand why you would lock in,” says Jim Murphy, chief executive of CAAMP. “Sure, if they start to rise, but [Bank of Canada governor Mark] Carney says they won’t rise, so you’ve got another year at that prime-minus rate.”

Don Lawby, chief executive of Century 21 Canada, says even when rates do start to increase, they are not going to jump significantly right away. You are not going to get 4% on a fixed rate again, but double-digit rates seem unlikely.

The bottom line is if you’ve got a deal on your mortgage, why would you give it back?

 

Source: Gary Marr, Financial Post Published: Saturday, June 13, 2009

 

Don’t choose between Fixed and Variable. Choose Both! New 50/50 Wise Mortgage Program!


Features:
– 50% of mortgage amount is at current 5 year fixed rate pricing (now at 4.49%)
– 50% of mortgage is at current 5 year ARM pricing (now at Prime +.40%)

 

See previous blog -The Best of Both Worlds- for more information!

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The Best of Both Worlds!

June 10th, 2009 No comments

The Best of Both Worlds!

 

A new mortgage product has recently been launched.

This new and innovative product called the 50/50 WISE mortgage. Don’t choose between Fixed and Variable. Choose Both!

They key aspects to this new mortgage are detailed below:

 

  • 50% of mortgage is at the lowest ARM rate in the Industry (currently, prime +.40 = 2.65%). With flexibility to convert to a fixed rate mortgage.
  • 50% of the mortgage is secure at a competitive 5 year fixed rate.
  • Combined total is at the lowest current 5 year effective rate of approximately 3.38% (weighted average interest rate given today’s current pricing!) 
  • Effective rate is lowest when mortgage balance is greatest…for maximum interest savings impact.
  • It would require a move in prime to north of 3.50% to reach a 3.99% effective weighted average rate.
  • Provides flexibility to prepay 20% annually or increase payment 20% annually on the portion of best advantage…
  • Bank of Canada statement and intention is to leave the B. of C. rate steady until at least June 2010.

 

Ideally suited for:

  • Customers who are unsure whether to go Variable or Fixed.  This product eliminates the biggest dilemma facing mortgage borrowers in today’s economy.
  • Customers who want a low interest rate and are more risk-averse than a typical ARM client.  The weighted average interest rate on this mortgage is approximately 3.38% given today’s current pricing!  And only 50% of the mortgage is subject to interest rate risk.
  • Customers who want added flexibility in paying down their mortgage.  The two portions operate independently of each other, so your customers can choose to make prepayments on the fixed portion which has the higher interest rate or they can choose to pay down the ARM portion aggressively which in turn further minimizes their future interest rate risk!

 

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Is a down payment stopping you from purchasing?

March 4th, 2009 No comments
As home buyers keep hearing about the “credit crunch” and doom and gloom, they wonder if they will ever be able to realize their dream of home ownership.
I guess it depends how you look at life, is the glass half empty or half full. I personally believe there is a wonderful opportunity, right now. Interest rates are at an all time low, plus there are tremendous “bargains” in the real estate market.
A little over a year ago we were paying 5.79% for a 5 year fixed rate. Today at a rate of 5.79% some financial institutions will give you 5% cash back that can be used as your down payment.
If you would like to find out about this program and many others please feel free to post a question or contact us www.designermortgages.ca
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