Purchasing a home – No Down payment?

February 13th, 2014 No comments

DESMLogo

You may still be able to buy your first home using 5% cash back, however is it worth your while?

If you looking to purchase without a down payment we do not do 100% financing however we do provide you with a 5% cash back to be used for the down payment – so your mortgage equals 95% of purchase price, I will show you the calculation hereunder.  What we are looking for is you folks who have good credit scores, over 650, been working for the same company for more than 2 years, and are not carrying too much credit card debt.  If this is you it may by worthwhile to Apply Online!

You may become a home owner sooner than later!

So this is how it works:

Purchase price  $200,000

5% cash back    $  10,000

Base mortgage $190,000

Plus

CMHC insurance premium $ 5,225

Total mortgage $195,225

Payment for next 5 years would be:  $ 1,118.83 based upon a 25 year amortization.

Payment above on approved credit and as at February 7th, 2014.

What are you paying in rents right now, how long will it take for you to save your own down payment.

FYI – if you had your own 5%, whether you saved it, or had it gifted, the payment would be $ 956.43, so the difference over 5 years equals $162.40 per month, times 60 months – $9,744.

Shh…. Don’t tell the lender they are not charging you interest on these funds!

IMPORTANT:  You need to have closing costs in cash when purchasing a home.  ie:   lawyer fees, land transfer tax – you should budget 2% of purchase price.

If you would like to schedule an appointment please contact me on:  905.336.5997 or toll-free 1.866.824.8057 or email me:  complete form.  Or Apply Online

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Is the Variable Rate Mortgage a good option?

October 8th, 2013 No comments

calculatorAfter the recent fixed rate increases, I have had a few clients asking me if variable rate is a good option.

The Bank of Canada indicated in their last announcement that interest rates’, meaning their bank overnight rate, which affects prime, is not going to increasing in the near future.  Saying this they do caution once interest rates move, it will be an upward trend.   The word in the industry is that the prime overdraft rate which effects the variable rate, which is currently at 3%, will not increase until middle to the end of next year, maybe they will wait until 2015.

As long as the economic outlook looks positive fixed rates will continue to rise. Bad news in the economy is usually good news for fixed interest rates.    Whether variable is a good option for you or not, depends on your risk tolerance, your budget, and whether or not you can handle higher mortgage payments.

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A surprize visit from Milton Mayor Krantz

September 26th, 2013 No comments

United Way Visitors - Mayor Gordon Krantz-1We got a surprize visit from Milton Mayor Krantz, Kate Williamson and William from United Way and Nadeem Dhalla to thank us for our commitment to support United Way.

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What divorce means for your mortgage!

April 10th, 2013 No comments

What divorce / separation means for your mortgage!

Recently the rules have changed for those people wanting to qualify to take over the mortgage for the matrimonial home owned jointly by a married couple.  Previously this would fall under the refinance guidelines, and if there was not enough equity in the home, the home would have to be sold and the profit split according to the separation agreement.  With the new rules brought about on July 9th, 2012, one can now only refinance to 80% of the value of the home.  This meant if you had to pay out your spouse you would have to have a lot of equity in the home (at least 40%) to ensure 20% equity remained.  This has now changed…..

If you are buying out your spouse, for mortgage purposes, it will be considered under the same rules as purchasing a home ie.  You may increase the mortgage to 95% of the value of your home, this is huge, as this will help you keep your children in the same home, school, neighbourhood etc. If you would like to see if you would qualify to take over your home, you are welcome to complete the online application.  Approvals are valid for 120 days!

If you would like a free report, titled “Separation Mortgage” outlining the guidelines please contact me.

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Thank you Burlington for voting me Number One!

March 6th, 2013 No comments

2013 Readers Choice AwardThank you to all who voted for me in the 2013 Burlington Post Readers Choice Awards.

This is the 5th year in a row I have won an award and it is all thanks to you for taking the time to vote.
Much appreciated.
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