Abbotsford & Chilliwack Mortgage Broker Lender

The Offset Mortgage Power Move: How to Cut Interest Costs Without Spending More

Tue, 04 Nov 2025 22:28:17 GMT

If you’ve got cash sitting in a chequing account or an everyday bank balance, it’s likely earning next to nothing. Meanwhile, your mortgage is quietly racking up interest on every dollar you owe. That’s wasted potential.

An offset mortgage changes that equation. It links your mortgage directly to a chequing or savings account. The bank only charges interest on the net balance, your mortgage minus whatever’s sitting in that linked account. Every dollar you park there immediately starts working to reduce your interest cost.

Here’s how it plays out:

Let’s say you have a $400,000 mortgage at 4.95% and keep $25,000 in your offset account. You’re not paying interest on $400,000, you’re only paying on $375,000. That simple move saves roughly $1,200 a year in interest without increasing your payments or locking up your cash.

And that’s the beauty of it. You still have full access to your money. Need it for an emergency, a trip, or an investment? Withdraw it anytime. Until then, it’s quietly cutting your interest bill and helping you build equity faster.

Some offset setups, like the Manulife One account, go a step further by combining your mortgage, chequing, and savings into one main account. Your income gets deposited directly into it, automatically reducing your daily interest. Every dollar that flows in, even temporarily, works for you until it’s spent.

Yes, offset mortgages can carry a slightly higher rate than standard options. But if you consistently hold cash from savings, business income, or rental reserves, the math often stacks heavily in your favour.

Bottom line: if you’ve got liquidity, putting it to work in an offset structure can make a lot of sense. You’ll reduce your interest, build equity faster, and keep your flexibility, all without changing your lifestyle.

A Guide to the Cascade Mortgage Strategy

info@robinsonmortgage.ca (Matt Robinson) — Fri, 07 Mar 2025 22:58:59 GMT

How to Capture Lower Mortgage Rates Without Waiting for Renewal

In a declining interest rate environment , smart homeowners aren’t waiting for their mortgage renewal to take action—they’re locking in savings now.

The Cascade Mortgage Strategy is a tactical approach that lets you progressively lower your borrowing costs while protecting against future rate hikes. Instead of sitting on a fixed rate for an entire term, you prepay portions of your mortgage and reset them at lower rates as they become available.

This setup provides a practical framework for implementing the Cascade Mortgage Strategy, allowing you to make strategic prepayments while maintaining a sufficient buffer for emergencies and other financial needs.

Here's how it works.

For the sake of this illustration, let's assume you own a property valued at $1,000,000. You require a mortgage of $500,000. We set up a home equity line of credit (HELOC) on top of this for $150,000.

Property Value: $1,000,000

Mortgage Amount: $500,000

HELOC Limit: $150,000

Annual Prepayment Privileges: 20% of the original mortgage balance annually ($100,000)

Initial Setup:

Work with us to secure a $500,000 mortgage on your $1,000,000 property, ensuring you have a $150,000 HELOC in place. This gives you a $650,000 overall credit limit.
We must ensure the lender offers flexible prepayment privileges, allows for multiple mortgage components, and provides the option to re-amortize your mortgage after each prepayment.

Step-by-Step Process:

At the end of the first year, use the HELOC to make a 20% ($100,000) prepayment on your mortgage, reducing your balance from $500,000 to $400,000.
Immediately reset the $100,000 HELOC balance into a new mortgage component, ideally at a lower interest rate than your original mortgage.
Rinse and repeat annually.

After each prepayment, you have the option to either reduce your monthly payments or maintain them at the original level. If you choose to reduce the payments, this will improve your cash flow each month. Alternatively, by keeping your payments consistent, you'll accelerate the reduction of your principal, allowing you to pay off your mortgage more quickly.

Interest Rate Decline with Each Prepayment

This strategy obviously works best in a declining interest rate environment. However, even in a relatively stable interest rate environment, the strategy still offers benefits by improving cash flow and accelerating principal repayment.

Each year, after making the prepayment, the homeowner resets the $100,000 HELOC balance into a new mortgage component with a lower interest rate. The decline in interest rates is attributed to both market conditions and the shorter terms selected for the new components.

End of Year 1 - The new 4-year term rate is 4.25%, a 0.75% decrease from the original 5% rate.
End of Year 2 - The new 3-year term rate is 3.50%, another 0.75% decrease from the Year 1 rate.
End of Year 3 - The new 2-year term rate is 3.25%, a 0.25% decrease from the Year 2 rate.
End of Year 4 - The new 1-year term rate is 3.00%, a 0.25% decrease from the Year 3 rate.

These declines reflect both a general reduction in market rates and the typical savings associated with selecting shorter-term mortgages at each interval.

The Results

To truly appreciate the benefits of the Cascade Strategy, it's important first to understand what happens when this strategy is NOT employed. In a typical mortgage scenario, a homeowner with a $500,000 mortgage at a 5% interest rate, amortized over 30 years, would make consistent monthly payments over the term of the mortgage. After five years, the numbers look like this:

Total Payments Made: $160,107.00

Total Interest Paid: $118,915.80

Principal Paid: $41,191.20

Outstanding Balance (end of term): $458,808.80

In this scenario, a significant portion of the homeowner's payments goes toward interest, with relatively modest progress in reducing the principal balance.

Now, let's consider the same homeowner, but this time, they implement the Cascade Strategy. By the end of the five-year term, the results are notably different:

Total Payments Made: $160,107.00 (unchanged)

Total Interest Paid: $105,618.23

Outstanding Balance: $445,511.23

Principal Reduction: $13,297.57

Net Effective Rate: 4.45% (0.55% Reduction)

The total interest paid with the Cascade Strategy is $105,618.23, which is $13,297.57 less than what would have been paid without the strategy.

This reduction in interest costs is a direct result of leveraging lower interest rates on the newly created mortgage components, which are set up after each annual prepayment.

By the end of the five-year term, the outstanding mortgage balance is $445,511.23, compared to $458,808.80 without the strategy. This $13,297.57 reduction in the outstanding balance indicates that the Cascade Strategy not only saves money on interest but also accelerates the repayment of the principal.

This means that homeowners using this strategy are closer to paying off their mortgage sooner, reducing the overall term and financial burden.

This case study demonstrates that the Cascade Strategy can be an effective and powerful tool for homeowners looking to optimize their mortgage and improve their financial outcomes. By strategically making prepayments and resetting those amounts into new mortgage components at lower rates, homeowners can achieve substantial interest savings, accelerate their mortgage repayment, and reduce their outstanding balance—all without increasing their total monthly payments.

When to consider a Home Equity Line of Credit or a 2nd Mortgage?

Mon, 19 Jun 2023 19:36:04 GMT

A 2nd mortgage can be a great option for accessing equity

Did you know that exploring a HELOC or 2nd mortgage can bring you several benefits compared to breaking your existing low-rate first mortgage? Let's dive into some of the advantages:

Flexible Access to Funds: With a HELOC or 2nd mortgage, you can tap into the equity you've built in your home without disturbing your current low-rate first mortgage. It allows you to access funds as needed, whether for home renovations, education expenses, or unexpected financial situations.

Lower Interest Rates: In many cases, HELOCs or 2nd mortgages offer competitive interest rates, which can be lower than the rates on credit cards or personal loans. By utilizing these options instead of breaking your existing low-rate first mortgage, you can potentially save on interest costs in the long run.

Preservation of Low First Mortgage Rate: If you have a fantastic interest rate on your current mortgage, breaking it may result in losing that advantage as well as incurring a prepayment penalty. By opting for a HELOC or 2nd mortgage, you can retain your favourable rate while still accessing the funds you need. This way, you maintain financial stability while leveraging the equity in your home.

Before making any financial decisions, it's crucial to consult with a trusted advisor to assess your unique situation and explore the best options available to you.

First Home Savings Account (FHSA) Officially Launched

Wed, 05 Apr 2023 17:06:06 GMT

Under this program, prospective first-time home buyers will have the ability to save $40,000 on a tax-free basis.

The Government has confirmed that as of April 1, 2023, financial institutions will have the ability to start offering the new Tax-Free First Home Savings Account (FHSA).

Under this program, prospective first-time home buyers will have the ability to save $40,000 on a tax-free basis, and like a Registered Retirement Savings Plan (RRSP), contributions will be tax deductible. When a client makes a withdrawal from the plan to purchase their first home, that withdrawal is non-taxable, just like a TFSA. This plan includes an $8,000 annual contribution limit and a $ 40,000 lifetime contribution limit.

For those who are purchasing with a partner/spouse who is also eligible under this program, both applicants will have access to the $8,000, thus doubling their lifetime contribution limit to $80,000.

Program Highlights

The FHSA and HBP ( Home Buyers’ Plan – RRSP down payment program for First Time Buyers) can now be combined on the same qualifying purchase.
Applicant must be a resident of Canada and between the age of 18 and 71 years old.
Must be a first-time home buyer, defined as someone who has not owned a home in which they have lived at any time during the calendar year before the account is opened, or at any time in the preceding four years.
Owner of the plan would have the ability to hold a broad range of investments, just like an RRSP or TFSA.
Unlike an RRSP, contributions made in the first 60 days of a calendar year cannot be applied to the previous tax year.
Homebuyer has up to 15 years from their first contribution or until their 71st birthday, whichever comes first, to use the funds to purchase a home.
Home buyers can carry forward unused portions of their annual contribution (up to max. $8,000) to subsequent years, as long as they do not exceed the lifetime limit of $40,000.
Funds that are not withdrawn from the plan to purchase a home can be transferred to an RRSP or RRIF on a tax-free basis.
Gains and withdrawals are tax-free if used to buy a qualifying principal residence.
Non-qualified withdrawals from the plan are permitted but will be subject to a withholding tax, just as they apply to taxable RRSP withdrawals.

For complete information, please click the link to view the Government Tax-Free First Home Savings Account web page .

This is general information that's subject to change. It's provided as-is and is not meant to be advice, including but not limited to tax, legal or investing advice. Readers should consult a tax professional for guidance applicable to their circumstances.

Property Tax Payment Options

Tue, 28 Mar 2023 18:51:08 GMT

There are three main ways to pay your property taxes.

There are 3 main ways to pay your property taxes.

Pay them in one lump sum when they come due in July.
Have your mortgage lender collect them with your regular mortgage payments.
Pay them monthly through your municipality's property tax prepayment plan.

My suggestion would be to go with #3. I've personally paid them all 3 ways and #3 has proved to be the best in my experience.

#1 - It's not much fun starting your summer with a large property tax bill.

#2 - Sometimes the lender will not collect enough, which causes them to increase payments the following year to ensure they are now collecting enough for the next year AND to make up for the shortfall for the last year. This can significantly impact total payments.

On the flip side, sometimes they over-collect without considering your homeowner grant (if you are eligible) and it's a pain to get it sorted out.

#3 - You decide on the amount to be withdrawn each month. You can check your tax notice for the suggested pre-

payment withdrawal amount and it leaves you in complete control.

Here are the links for a few local property tax prepayment plan applications:

Property Transfer Tax Exemptions

Mon, 20 Mar 2023 20:24:04 GMT

What qualifies for the First Time Home Buyer exemption?

Land transfer taxes can vary depending on the province or territory you're in. In Canada, the land transfer tax is typically calculated as a percentage of the purchase price of the property. The rates can range from 0.5% to 2.5%. It's important to research the specific rates for your province or territory before making a purchase. You can also check with your lawyer, real estate agent, or me, your mortgage agent.

In BC, the general property transfer tax rate is:

1% of the fair market value up to and including $200,000
2% of the fair market value greater than $200,000 and up to and including $2,000,000
3% of the fair market value greater than $2,000,000

A qualifying First Time Home Buyer (FTHB) may be fully exempt up to $500,000 and may receive a partial exemption up to $525,000.

The definition of being a FTHB varies with each incentive. In this particular case, being a FTHB means you have never owned a home that was your principal residence before. This includes homes outside of Canada. If you are not sure if you are truly a FTHB it is smart to give your lawyer a call. If you do not know a great lawyer, we would be happy to introduce you to one.

Have questions? Reach out.

What is a HELOC?

Mon, 13 Mar 2023 20:48:45 GMT

A Home Equity Line of Credit can be an excellent tool, when used properly.

In its simplest form, a HELOC (Home Equity Line of Credit) works similarly to a credit card. You can borrow money up to a certain credit limit set by your lender and then pay back the borrowed amounts along with interest. This option can offer more flexibility — you can even withdraw and make payments on a daily or weekly basis, if necessary.

What determines a HELOC’s credit limit?

A HELOC’s credit limit depends on several factors, including your credit and unpaid debts, but it’s determined largely by the market value of your home and the amount you owe on your mortgage.

For instance, if you own a home valued at $700,000 and still owe $480,000 on your first mortgage, then your home equity stands at $220,000. Lenders typically limit the amount you can borrow to no more than 80% of the appraised value of your home minus what you owe on your mortgage.

In this case, the maximum amount you’d be able to borrow on a HELOC is $80,000. Here’s how that’s calculated, assuming there are no other liens on your home:

Market value of your home: $700,000
80% of the home’s value: $560,000
Minus mortgage balance: $560,000 – $480,000
Potential line of credit: $80,000

Benefits of a HELOC?

A HELOC is an open mortgage product and can be paid back at any time with no pre-payment penalty. There is no cost to use a HELOC unless you have a balance on it. The minimum payments each month are interest-only. This is ideal from a cash-flow perspective as it leaves the most flexibility.

What’s the length of a HELOC term?

The length is tied to your mortgage term. If you renew with your lender, then the HELOC can be renewed as well. If you change lenders at any time, you can look to have another HELOC attached to your property.

What does it cost to set up a HELOC?

Some mortgages are already set up for a HELOC and costs may be minimal. If the mortgage is not already set up for HELOC then you can expect to incur legal fees and potentially an appraisal fee. It is on a case-by-case basis depending on your lender.

How to use a HELOC

There are numerous ways to take advantage of a HELOC.

Transferring higher interest credit balances. HELOCs will have a very low-interest rate compared to unsecured credit (credit cards, LOC, loans, etc). You can still make the same monthly payment you were making but more will be applied to the principal if the debt is on your HELOC. This means the debt is being paid off quicker = interest savings.
An emergency fund for loss of job, health reasons, etc.
Repairs or maintenance on your home.
Renovations on your home.
Purchase of investments, property, etc.

What to consider?

Before you decide to take out a HELOC, consider what you’ll need it for. If you’re planning to use a HELOC for home improvements, investments, debt consolidation, etc., it could make more sense to do an actual refinance which allows you to re-amortize your mortgage. These are details we would map out as we go through the application process so we could determine which option is going to fit the situation best.

To Lock or Not

Mon, 06 Mar 2023 23:48:53 GMT

Is now the time to lock in your mortgage?

If you have a variable rate or adjustable rate mortgage you've almost certainly asked yourself in the last year "Is it time to lock in?"

I mean, is it?

People who have variable-rate mortgages and adjustable-rate mortgages have seen those rates increase by over 4% in the last year alone bringing borrowing costs to an all-time high for their households.

So, if you're one of those people who holds a variable rate or adjustable rate mortgage, read on.

Fixed rates are lower. Actually, for the first time in my mortgage career fixed rates are now actually lower than what is currently being offered on variable rates and again that's causing a lot of people to call and ask if it is time to lock in.

They do have the ability to lock in their mortgage, and they'll receive a lower rate by doing so but here's the thing. Rates are expected to go down over the course of the next 12, 18, or 24 months so if you lock in today you can expect to see lower rates than you take today being offered within the next two years.

Now let me make one thing clear. If your family is struggling with cash flow then locking in your rate will provide you with a lower payment. If that's the case and you need that lower payment, lock in. But be sure to steer clear of a longer-term five-year fixed rate in that scenario. You're going to want to aim for a one, two, or three-year term so that when your mortgage renews you can take advantage of lower rates that are available at that time.

If you have a variable rate mortgage or an adjustable rate mortgage and you have questions, reach out.

Is my mortgage portable?

Mon, 27 Feb 2023 22:35:15 GMT

The Guise of Mortgage Portability

"Is my mortgage portable?"
The answer is probably yes.

"Is it easy to port my mortgage?"
The answer is probably not.

When you're selling your existing home and buying something else, porting your mortgage involves transferring the remainder of your current mortgage terms, including the interest rate, to that new property. If your current interest rate is lower than what is available in the market, this can be a great way to save some money and typically also allows you to transfer the mortgage with no prepayment penalties. That said, sometimes it feels like the stars must align for it to work out.

A lot of people assume that porting a mortgage guarantees mortgage qualification on the purchase of a new property using the mortgage they got when they bought their last property. This absolutely is not the case.

Standard qualification with respect to employment, income, credit, etc. would have to be in line. The only thing that is being ported are the mortgage terms, so a new application is required as porting a mortgage requires full re-qualification.

The most common reasons porting doesn’t always work out as planned:

You may not qualify for the new mortgage.
The property you are buying doesn't meet the lender's guidelines.
You still need a down payment.
You'll likely have to pay a penalty, even if it's refunded later (if dates don’t line up properly).
Timelines rarely work out. Every lender has their own guidelines with respect to portability timelines.

If you are in a situation where you have an existing mortgage, and you're looking to buy something else, if you'd like to discuss mortgage portability please don't hesitate to get in touch as we'd love to walk you through your options.

How to Keep Your Credit Score Sparkling

Tue, 21 Feb 2023 21:14:37 GMT

Your credit score can mean the difference between being approved or declined for a mortgage

When it comes to purchasing a home, your credit score plays a significant role in the interest rate you may qualify for.

Maybe you’re simply looking for ways to improve your credit score fast? Either way, it’s important to know it can take some time and patience. However, to give your credit score a boost, you should consider doing (or start doing) each of the following tips.

Monitor Your Payment History

Your payment history is the most important factor for your credit score.

To improve your payment history:

always make your payments on time
make at least the minimum payment if you can’t pay the full balance
contact the lender right away if you think you'll have trouble paying a bill
don't skip a payment even if a bill is in dispute

Use Credit Wisely

Don’t go over your credit limit. Borrowing more than the authorized limit on a credit card can lower your credit score…..significantly.

Try to use less than 35% of your available credit. It’s better to have a higher credit limit and use less of it each month.

For example:

a credit card with a $5,000 limit and an average borrowing amount of $1,000 equals a credit usage rate of 20%
a credit card with a $1,000 limit and an average borrowing amount of $500 equals a credit usage rate of 50%

If you use a lot of your available credit, lenders see you as a greater risk. This is true even if you pay your balance in full by the due date.

Increase the Length of Your Credit History

The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new.

If you transfer an older account to a new account, the new account is considered new credit.

For example, some credit card offers come with a low introductory interest rate for balance transfers. This means you can transfer your current balance to this new product. The new product is considered new credit.

Consider keeping an older account open even if you don't need it. Use it from time to time to keep it active. Make sure there is no fee if the account is open, but you don't use it. Check your credit agreement to find out if there is a fee.

Limit the Number of Credit Applications or Credit Checks

It’s normal and expected that you'll apply for credit from time to time. When lenders and others ask a credit bureau for your credit report, it’s recorded as an inquiry. Inquiries are also known as credit checks.

If there are too many credit checks in your credit report, lenders may think that you’re:

urgently seeking credit
trying to live beyond your means

How to Control the Number of Credit Checks

To control the number of credit checks in your report:

limit the number of times you apply for credit
get your quotes from different lenders within a two-week period when shopping around for a car or a mortgage. Your inquiries will be combined and treated as a single inquiry for your credit score.
apply for credit only when you really need it

“Hard Hits” Versus “Soft Hits”

“Hard hits” are credit checks that appear in your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.

Examples of hard hits include:

an application for a credit card or mortgage
some rental applications
some employment applications

“Soft hits” are credit checks that appear in your credit report but only you can see them. These credit checks don't affect your credit score in any way.

Examples of soft hits include:

requesting your own credit report
businesses asking for your credit report to update their records about an existing account you have with them

Use Different Types of Credit

Your score may be lower if you only have one type of credit product, such as a credit card.

It's better to have a mix of different types of credit, such as:

a credit card
a car loan
a line of credit

A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could end up hurting your score by taking on too much debt.

Your credit score can mean the difference between not only being approved or declined for a mortgage, but it can affect the mortgage interest rate, the type of mortgages available, and the mortgage lenders that you can choose from.

Now is likely not the time for a 5-year Fixed Rate Mortgage

Mon, 13 Feb 2023 19:44:17 GMT

Here’s why you should avoid the temptation of going long term fixed right now.

For most, the bond market doesn’t make the best cocktail party conversation. But if you’re shopping for a mortgage, knowing something about it can pay off.

The bond market would be the smartest “person” in that room and sees things that most mortals don’t. When dealing with mortgages and rate forecast predictions, a common saying is that no one has a crystal ball. The bond market would be the closest thing to that proverbial crystal ball as it often does tell the future. Or at least, it tells the future about interest rates more accurately than probably 99.9% of the general population.

It can do that because investors in the bond market—those with the best information—bet billions of dollars on where rates are headed in the next minute, week, month and year. They make those bets with a full understanding of inflation, GDP (gross domestic product), the business cycle, and all the other fun stuff that goes into determining mortgage interest rates.

For all but a few bond gurus, it’s almost impossible for anyone to know more about where interest rates are headed than the consensus forecast of financial markets. That’s why people rely heavily on the bond market for clues on the path of rates.

In financial markets swayed by random events, nothing is absolute. But here are four scenarios where the bond market is a fairly reliable mortgage indicator.

#1: When 10-year bond yields are below 2-year bond yields

This is what bond professionals call an “inverted yield curve.” It’s an unusual phenomenon because rates on long-term bonds are normally higher (since investors want to be compensated more for the risk of lending long term).

Inverted yield curves, like the one we’re witnessing today, are a high-probability signal of a coming recession. Recessions are universally bearish for mortgage rates, meaning they always pull down rates eventually. That’s a good thing if you’re floating your mortgage and a bad thing if you’re locked into a high fixed rate.

Inverted yields provide the strongest signal after multiple Bank of Canada rate hikes. At that point, rate cuts are usually less than 12 months away on average.

#2: When prime rate is well above its 5-year average

When Canada’s prime rate is over 50% above its 5-year average, like it is today, variable rates have outperformed 5-year fixed rates ~94% of the time. By outperform, I mean they cost less in interest over five years.

Note: This data goes back to 1944 and ends January 2018. Prime rate is used as a proxy for the variable rate prior to 1981, when variable rates first appeared.

This pattern is not precise, however. November 1979 is the one counter-example where floating rates surged 7.75 percentage points in just 21 months after prime rose 50% above its 5-year average.

Nonetheless, if you’re financially stable and like to play the odds, this is one of the safer bets you’ll get in the mortgage market. Just be sure you can handle your payments if inflation surprises and doesn’t fall below 3% fast enough. (3% is the top end of the Bank of Canada’s target range.)

In that case, the Bank may have to take rates even higher.

#3: When the Bank of Canada (BoC) increases rates after several previous hikes and the 5-year bond yield drops

Most people think that BoC rate increases are bad for mortgage rates, and that’s true for variable rates in the short term. But once the BoC boosts its policy interest rate multiple times and the economy starts to slow, the bond market (which anticipates the future) starts predicting rate cuts.

Bond yields—which drive fixed mortgage rates—then fall.

If they fall materially, it’s usually a sign that interest rates have peaked for at least a year or two, but typically much longer.

#4: When the 5-year government yield surges 20+ basis points

In the short term, swings in bond yields can move fixed mortgage rates. If you’re not closing for 60 days, for example, and bond yields are diving, you may want to wait to lock in. That way, you can get the best available rates and not have to rely on your lender to lower your rate after you’ve already committed.

On top of that, there are often better deals on rates if you only ask for a 30-day rate guarantee. This is especially true if the mortgage is default insured (e.g., you’re making less than a 20% down payment).

Related tip: If you can, allow yourself at least 30 days to close. This reduces stress given there are multiple steps in the approval and closing process.

The takeaway:

Based on what the bond market is currently telling us, now is not the time to lock into a 5-year fixed rate near or above 5%.

Of course, nothing is foolproof when it comes to predicting financial markets. When using rules of thumb like the ones above, no one should expect perfect timing.

Either way, heeding these tips will give you an edge—both in rate timing and in mortgage term selection.

Things to Avoid when Applying for a Mortgage

Wed, 23 Nov 2022 00:32:17 GMT

Here are some tips to avoid any problems with your mortgage funding.

DO NOT…..

1. Change Jobs, become self-employed or quit your job.

While a job change could mean a raise or a path to a better future, it could also delay financing approval or completion. Your lender needs to verify employment and will need paystubs to prove your new income before your loan can go to settlement.

2. Co-sign a loan for ANYONE.

Co-signing any type of car, student, or other loans will result in inquiries to your credit bureau and added financial obligations that you must be able to debt service for your mortgage to fund.

3. Buy a car, truck, or van. (Unless you wish to live in it)

You may be feeling that a new car would be a nice addition to the driveway of your new home. Resist that feeling. Even if you can easily afford a new car, the depletion of your savings and/or the addition of a new car loan could derail your mortgage application. Wait until after you have moved to switch to a new car.

4. Skip a payment or make any late payments.

One of the most important elements of your credit score is your history of on-time, in-full payments, so don’t get so caught up in your move that you forget to keep up with paying basic bills.

5. Increase your debts.

In addition to your credit score, your debt-to- income ratio is extremely important to a loan approval. If you take on more debt you could be in danger of going above the maximum acceptable debt-to-income ratio.

6. Omit debts or liabilities from your loan application.

Disclose all debts and liabilities early in the mortgage process. Details are checked (and double-checked) so they will likely turn up at some point in the process and could jeopardize your mortgage approval when discovered.

7. Spend money you have put aside for closing.

You’ll need cash on hand at the settlement for your down payment and closing costs and your lender may even verify your cash reserves one more time, so make sure the funds stay in place.

8. Apply for new credit.

It may seem natural to apply for a credit card at a home improvement store or a furniture store when you are about to become a homeowner, but applying for credit can lower your credit score. Not only will you lose a few points because of a credit inquiry, but if you are approved for new credit, a lender may worry that you will spend up to your new credit limit and then default on your loan.

9. Close any credit accounts.

You may be feeling that this is a good time to get your financial house in order by closing unused credit accounts or transferring your debt to a new credit card with a zero-interest balance transfer offer. While that’s a smart move financially, it’s a bad one for your credit score because you lose points when you have a higher usage of debt compared to your limit on one credit card and to your overall credit availability. Wait until your closing is complete before you make these changes.

10. Change bank accounts, make any large deposits, or transfer funds being used for down payment and/ or closing costs from one bank account to another.

Your lender will need the most recent bank statements before you go to settlement, so if you have any unusual deposits you will need to provide complete documentation of where the money came from. If possible, it’s best to move the cash you will need for your home purchase into one account before you apply for a mortgage. If not, make sure you have complete and accurate records readily available.

In other words, no matter how hard it is at this exciting time, it’s better to do nothing than to do anything.

Why Property Condition Matters

Tue, 19 Oct 2021 17:08:05 GMT

Condition of the property you are looking to finance matters

When looking to qualify for a mortgage, typically a lender will want to review four main areas of your mortgage application. Income, credit, down payment/equity, as well as the property itself.

If you currently own a home, and are looking to upsize, downsize, take on a renovation challenge, or purchase a fixer upper as an investment, it’s good to keep in mind that the condition of the property you are looking to finance matters. If the property you’re looking to purchase isn’t in good condition, it could be hard to arrange mortgage financing.

The property matters because the property you are looking to purchase is the collateral the lender holds in case you default on your mortgage.

You can expect that any lender will make every effort to ensure that any property they finance is without defect. Lenders want to see that a property is “prime and marketable”. In the rare case that you happened to default on your mortgage, they want to know that if they must repossess, they can liquidate (sell-off) the property quickly and recoup their money.

To establish value, an appraisal is sometimes a requirement for financing. If the mortgage is insured through an insurer like CMHC or Sagen (occurs in a less than 20% down payment situation), they will typically use an automated system to assess the property (you might not even have known an appraisal was done). For conventional (20%+ down payment/equity) mortgage applications, a physical appraisal is more often required, where an appraiser visits the property in person.

Now, what happens if you want to purchase a property that might not be in the greatest condition? There are still options. This is where a purchase plus improvements can be a great mortgage option.

A purchase plus improvements can allow you to purchase a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, but it's very doable.

If you have any questions about financing your next property or potentially using a purchase plus improvements to buy a fixer-upper, please don’t hesitate to contact us.

Questions on your mortgage, or want to compare your mortgage to what is currently available? Let’s set up a time to chat.

The Difference Between a Banker and a Broker

Wed, 25 Aug 2021 19:28:13 GMT

Understanding the different mortgage lending options.

What's the difference difference between a banker and a broker?

The difference between a banker and a broker comes down to the products each can offer, and where their allegiances lie.

A banker is paid by the bank, to make the bank money, while a mortgage broker is paid by the lender to get you the best mortgage available.

Mortgage Brokers

A mortgage broker has access to multiple lenders and shops around to get their clients the best mortgage product available.

Working with a mortgage broker provides you with options right across the board. Instead of having to go in and fight the bank for a deal, your mortgage broker does all the leg work and outlines your options at several lenders. As the lender pays the mortgage broker upon closing, there is no cost to you.

At Robinson Mortgage we pride ourselves on saving our clients money upfront and over the course of their mortgage. We commit to provide each of our clients with long-term mortgage management to ensure they realize the lowest overall cost of borrowing possible.

Bankers

A banker works for a single financial institution, and can only offer mortgage products from that institution.

As banks can only offer you their rates and products, they are very limited in the options they can present. Typically, they won't offer you the best deal to start with, however, will eventually negotiate on terms and rates, but you will be responsible for doing the negotiations on your own.

Renewal Time?

If you have a mortgage up for renewal, or you would like to refinance, it is always in your best interest to contact your mortgage broker first. That way you can ensure all options are laid out to ensure you are taking the best course of action.

Robinson Mortgage has been selected as The Best Mortgage Broker in Abbotsford for 2021

Wed, 07 Jul 2021 22:23:26 GMT

Best Mortgage Broker in Abbotsford for 2021

"We have awarded Abbotsford Mortgage Broker - Matt Robinson as The Best Mortgage Broker in Abbotsford for 2021. An overall quality score exceeding 95% was achieved, making them the top ranked in Abbotsford." - Quality Business Awards

We are proud to announce that Robinson Mortgage has been recognized as The Best Mortgage Broker in Abbotsford by the Quality Business Awards!

The Quality Business Awards recognize businesses that achieve an average quality score of 95% or greater over the previous 12 months.

A big thank you to the Quality Business Awards for this amazing recognition! It is milestones like these that push us to keep improving our mortgage financing services.

Click here to check out out our listing on the website!

How Will Co-Signing a Mortgage Impact Me?

Tue, 25 May 2021 18:29:55 GMT

The impact of co-signing a mortgage.

In this day and age, more and more borrowers are struggling to qualify for a mortgage. Soon to be made even more difficult with pending changes to the stress test.

When you look at house prices in your area and factor in a combination of stricter guidelines, new stress test rules, bruised credit, self-employed, etc., it can be challenging to say the least.

When this happens, sometimes the quickest and easiest option is to have someone co-sign. If the co-signer has good credit and income, they can help secure a mortgage.

But how does this impact the person co-signing?

Anytime you co-sign for a mortgage, car loan, etc, you need to factor those payments into any credit application you fill out moving forward...regardless if you’re making the actual payments or not.

When you co-sign for a mortgage you are put on the title, and on the mortgage with the bank/lender. Usually, you are put on title as a 1% to 50% owner of the property.

Moving forward, every time the co-signer fills out any application for credit, they will have to include 100% of the mortgage payments, property taxes, and condo fees (if applicable) on their application...regardless if they own 1% or 50% of the property.

These payments will be taken into consideration on the application and could potentially hinder any access to credit.

For example, if you have your own personal mortgage and it’s up for renewal, you could sign on the dotted line with your current lender and carry on. But, if you want to see what other banks/lenders are offering you’ll have to go through the qualification process. The property you co-signed will need to be disclosed and this could impact your ability to change lenders.

This could also impact you if you’re looking to do any of the following:

Buy a rental property

Refinance

Co-signing for anyone else

Buying a car, boat, etc

Apply for a home equity or unsecured line of credit

Some other possible disadvantages of co-signing on a mortgage:

If mortgage payments are missed, your credit score will reflect that.

Possibly damage your relationship with the borrower. When you buy a property together, you’re tied to that person and that liability until you are removed from the title and mortgage.

Having said all that, your co-signing for someone might not impact you at all - and you could be helping a loved one with homeownership.

If there is an exit strategy or at least a timeline for how long you’ll be co-signing, this might also put you at ease.

This is not to scare you from co-signing, it’s to provide you with the details you need to make an informed decision. You will need to think about future credit you might need access to, how long you’ll co-sign for, what happens if payments are missed, etc.

If you’d like to chat further about this, please let me know.

Where are Mortgage Rates going?

Fri, 12 Mar 2021 16:43:20 GMT

Where's that magic crystal ball when we need it?

Where are mortgage rates going? This would be the million dollar question.

With so much unknown in our economy and real estate markets, there is one sure thing - interest rates are on the move upwards. Well, Fixed rates at least.

Variable rates remain at all-time lows. Fixed rates have increased by approximately 40 basis points over the last couple of weeks.

So why are fixed rates are increasing? Fixed rates are based on the bond yield market. As bond yields increase, eventually, so do the fixed rates. There has been pressure building in the bond yield market for awhile now and it was only a matter of time. Whereas, Variable rates are dictated by the Bank of Canada (BoC) and based on many things including the health of our economy and consumer debt load coupled with what upside/downside there would be if they change the Prime lending rate, which is currently set at 2.45% at most banks.

Variable rates are holding firm and we’ve been told publicly from the BoC that they won’t look at the increase until 2023. Time will tell if that will play out but for them to come with that strong of wording speaks volumes.

What does that mean for variable rates?

Variable-rate discounts remain low and look to be getting ever better. When you factor in the low discounts with the low prime lending rate, variable rates are very attractive. If we believe the BoC, the Prime lending rate of 2.45% will remain the same until 2023 but the discounts the lenders offer may change.

If you have a variable rate mortgage, you either have a discount or a premium added to this rate. Ie. Prime (2.45%) less 1% (discount rate) = 1.45%. If you have a premium added to that prime rate then we need to talk because there is an opportunity to save some money.

As the BoC moves the Prime lending rate, your discount stays locked in for the term (typically 5 years). So if the Prime lending rate moves to 2.70% and your variable discount is 1%, your new interest rate is 1.70%.

If you want to secure a fixed rate before they increase even more, please reach out to lock in a rate hold.

If you want to see if we can save you money on your current variable rate mortgage, please let us know and we’ll run some numbers to see if it makes sense.

Either way, we as Canadians are in a great spot from a mortgage rate perspective. Money is still cheap and it will be for the foreseeable future.

Mortgage Insights - Pre-Covid versus Today

Thu, 18 Feb 2021 16:25:28 GMT

Covid has changed many things, including mortgage financing.

Covid is covid, and who knows when we will be back to normal, whatever that new normal will look like. When it comes to the real estate market and mortgage industry,

Covid has changed many things and it is yet to be seen what post-Covid days will look like. Here’s our perspective on the inner workings of the mortgage world.

An insider view of Pre-Covid vs.Today:

Pre-Covid: Most 5yr interest rates were 3% to 3.75%

Today: Majority of 5yr interest rates are sub 2%

Pre-Covid: Turnaround times for approvals with lenders were 1-3 business days.

Today: On average, turnaround times are closer to 4-5 days, if not longer. With low rates, crazy market situations, and lenders working from home, it has created the perfect storm.

Pre-Covid : The down payment required for a rental property is 20% and for owner-occupied properties, you can buy for as little as 5% down, even if you’re not a first-time home buyer.

Today: Nothing has changed.

Pre-Covid: For proof of rent for rental properties, a lease agreement could mostly suffice.

Today: A lease plus 3-month bank statements showing proof of rent deposits are now being asked more frequently.

Pre-Covid: Real estate markets were mostly moving along at a predictable rate of appreciation for any given area.

Today: Most markets are going crazy with multiple offers and bidding wars. This means an airtight pre-approval from might make the difference in one’s offer.

Pre-Covid: Your net worth did factor into consideration on an approval, but not as much as you might think.

Today: Some lenders are making sure you have liquid savings to fall back on. Your net worth could be questioned with potential proof required so be prepared and do not take it personally.

Pre-Covid: The opportunity to reduce your interest rate and save money, even after you paid a penalty, legal fees, and an appraisal, would come along every once in a while, all depending on your current product/rate.

Today: Many opportunities to save money and take advantage of a lower rate. A quick calculation on our part will confirm if it makes sense to do so.

Pre-Covid: When providing proof of gifted funds being used for a down payment, some lenders would accept a one page signed gift letter as proof of gifted funds for a down payment.

Today: Most gift letters for down payment now require proof of where the funds came from.

Pre-Covid: Appraisals were being done as normal - full access to properties by each appraiser which meant the appraiser could get a very accurate value of the property.

Today: Appraisals are being done electronically, typically with no access to the property. The turnaround time is quicker, but the values might not be a true representation. It’s hard to showcase your home properly via photos. In many cases the unique features or layouts aren’t reflected in the overall value.

Pre-Covid: To sign the legal mortgage documents, you would meet face to face with your lawyer.

Today: Majority of people are signing legal mortgage documents virtually with no need to see your lawyer - some would say this is more convenient while not so tech-savvy clients may feel overwhelmed.

Pre-Covid: People would budget for vacations, entertainment, etc.

Today: More and more people are taking advantage of the low rates and renovating their homes and backyards. They are using equity to increase their quality of life and the value of their home.

Pre-Covid: Many “experts” said the real estate market was going to crash or see a significant drop during Covid.

Today: Markets are doing quite the opposite as I am sure you are aware. It’s a seller's market in most places.

When you factor in Covid, new mortgage rules/guidelines, and fluctuating interest rates, it makes securing a mortgage more complex.

That’s where we come in. It’s our role to navigate the waters and make sure you’re taken care of.

We are here to help.

Bank of Canada maintains key interest rate at 0.25%

Wed, 20 Jan 2021 17:31:44 GMT

The Bank of Canada today kept its target for the overnight rate at 0.25%.

The Bank of Canada today kept its target for the overnight rate at 0.25%. With the spread of the virus and reinstatement of lockdown measures, the Bank is anticipating an economic decline in the first quarter of 2021. The Bank is optimistic for a strong economic recovery assuming an effective vaccine roll out in Canada and around the world.

The Bank made no mention of a “micro cut” reduction to the key overnight rate in the months ahead. The Bank’s monetary policy remains unchanged from their previous announcements, therefore we should expect the quantitative easing program to remain in place and the key overnight rate to hold until 2023.

Anyone with a variable rate mortgage or home equity line of credit (HELOC) should be pleased that their prime will remain unchanged, although they would have been ecstatic had the Bank implemented a “micro cut.”

Is Now A Good Time To Purchase A Property?

Mon, 18 Jan 2021 17:39:31 GMT

It’s tough to time the market. That goes for real estate values and interest rates.

Is Now A Good Time To Purchase A Property?

Given the current state of affairs, this is a popular question I hear.

My not so simple answer is yes, no, and maybe...

A lot depends on your personal situation.

Are you a first time home buyer?

Are you looking to move up the property ladder?

Are you buying an investment property?

Are you worried about your employment?

Have you taken into account down payment + closing costs?

As hard as it is to not factor Covid into your decision, you have to ask yourself these questions:

Do you understand your personal budget?

Do you understand all the moving parts to your upcoming property purchase?

Are you pre-approved? But, actually pre-approved? Meaning, someone has done a consultation on your situation, reviewed credit, income documents, etc.

If you have your ducks in a row and your quality of life will improve, then yes, the time is good.

Truth be told, I always think real estate is a sound investment.

Covid did different things to different markets all across Canada. For example, condos in downtown Toronto have taken a large hit due to the borders being closed which means less immigration, coupled with tenants of rentals no longer having employment and people leaving the city. But, most markets are thriving...some are business as usual.

Here are a couple of things I know to be true.

It’s tough to time the market. That goes for real estate values and interest rates.

Rates will be low for the foreseeable future. BUT...I wouldn’t base a home purchase solely on that. Rates will inevitably increase and you need to be prepared for when they do.

The banks stress test your potential mortgage payments as if the interest rate were 4.79%. This gives them comfort in case rates do rise when your renewal comes up in the future.

I can’t answer with one broad statement if buying a property makes sense for you right now, but I can help you figure that out.

Please let me know if you’d like to chat. Here's my calendar: https://calendly.com/mortgagematt/discovery

7 Reasons Why People Are Refinancing Right Now

Wed, 16 Dec 2020 16:18:42 GMT

What is a refinance you might ask?

As you probably know, interest rates are extremely low right now. And with low mortgage rates, comes opportunity.

These opportunities include saving money, creating wealth, or helping you cross things off the ever-growing wish list. To take advantage of these opportunities you’ll need to refinance your current mortgage.

What is a refinance you might ask?

A refinance involves accessing the equity in your home and changing the terms of your current mortgage (rate, amortization, mortgage amount, etc.). There is typically a mortgage penalty and closing costs involved. Normally, there would be no money needed from your pocket but rather you would use the equity in your home to cover these costs. You would also take out additional funds to accomplish what you’re looking to do.

Why would you take out equity in your home right now?

Here are 7 reasons clients are currently refinancing their homes:

Optimize Your Current Rate: In simple terms, trade-in your higher rate for a lower rate. There would be a cost to do this and we’d have to factor in a mortgage penalty and closing costs to make sure it makes sense to do so. This typically won’t cost you anything out of pocket as the equity in your home would cover this. Let’s say your mortgage penalty and closing costs equal $7,000 but the savings from a lower interest rate is $12,000. This means you could save $5,000 and not pay anything out of pocket.

Home Renovations: You could use the equity in your home to finance that new kitchen you’ve always wanted, finish the basement and increase your livable space, add a pool to the backyard, add a rental suite to help offset your mortgage payments, etc.

Increase Monthly Cash Flow: Are you carrying a balance on higher interest debt that you just can’t seem to pay down? You could put your high-interest debt with large monthly payments into a lower single mortgage payment. This is done to increase your monthly cash flow while also replacing your high-interest debt with a much lower interest rate.

Investments: You could use the equity in your home for a down payment on an investment property. You could also put those funds into a more traditional investment like a mutual fund, stocks, etc.

Pay For School Or Higher Education: Do you have kids who are heading off to post-secondary education or is there some form of education that you’ve always wanted to do but didn’t have the funds available?

Buy A Second Home: This could be a cottage type property or even a second home for a family member who needs help.

Start A Business: Getting a business loan from the bank is becoming harder by the day. Did you have a new business idea or side hustle you’ve been wanting to start for a while but didn’t have the capital to do?

Refinancing your home means different things to different people depending on your situation.

Mortgage funds have never been this low and I’m curious what opportunity you might be interested in?

Bank of Canada maintains key interest rate at 0.25%.

Wed, 09 Dec 2020 19:11:48 GMT

Bank of Canada Confirms Commitment To Low-Interest Rates

The Bank of Canada today kept its target for the overnight rate at 0.25%. After dropping its overnight rate three times in March, the Bank has held the line on rates since then, including today, but continues its massive quantitative easing program to support market liquidity.

Anyone who requires a mortgage should be pleased with this announcement because the Bank continues to be committed to low rates for the foreseeable future. Both fixed and variable rates will remain at their current historic lows until the economic recovery is well under way.

Did You Know...Anyone Can Buy A Property With Only A 5% Down Payment?

Fri, 13 Nov 2020 17:26:39 GMT

Yes, that’s right. You don’t have to be a First Time Home Buyer.

There is a misconception out there that you can only buy a property with a 5% down payment if you’re a First Time Home Buyer. Well, I’m here to tell you that isn’t true. You might have the funds available right now to buy that next property and you didn’t even know it.

Here are the things you can accomplish with as little as a 5% down payment. ie. a 500k property would require a $25,000 down payment.

You can buy a cottage. You could enjoy your own family time there and if you choose, use a service like Airbnb and rent out the cottage when you’re not using it to offset some or all of your carrying costs.

Turn your current home into a rental property and buy another principal residence. If you don’t have the 5% down payment, you can look at a refinance of your current home to access the funds. This would be the quickest way to get another property into your growing portfolio.

Buy a home for a family member. If you have an immediate family member who needs your financial assistance. They can move into the property as long as they are not deemed rental tenants.

Buy a home with a rental suite. Typically, you require a 20% down payment to buy a rental property. But, if you plan on living on the main level and there is a basement suite, you can buy this property with just 5% down and earn rental income from day one.

Buy that next home. It doesn’t matter if you’ve owned 1 or 4+ homes in the past. You can always take advantage of the 5% down payment option.

Keep in mind, you’ll have to qualify for all of these situations but don’t worry, that’s what I’m here for.

If you’d like to chat in more detail, just let me know. I’m here to help.

**For properties over 500k the minimum down payment increases slightly. You need to put down 5% of the first 500k and then 10% of the balance over 500k. Ie. a $650,000 purchase means 5% of 500k = $25,000 + 10% of 150k = $15,000. Your total down payment required is $25,000 + $15,000 = $40,000.

4 Mortgage Predictions For 2021

Tue, 20 Oct 2020 16:11:23 GMT

What does 2021 hold for all things mortgage?

Well, 2020 has been quite the year so far to say the least. Nobody saw it coming and I'm not sure what 2021 brings us. I thought I’d give you my predictions for the next year, please keep in mind, these are just my thoughts.

1. Fixed and Variable rates will remain at all-time lows. In July this year, the Bank of Canada Governor Tiff Macklem said the following, “Interest rates are very low and they are going to be there for a long time. Canadians and Canadian businesses are facing an unusual amount of uncertainty, so we have been unusually clear about the future path for interest rates.”

Based on these comments and those of top economists, we are going to see these low rates for some time to come. The Bank of Canada can’t and won’t lie to us. They have always been very straightforward with their intentions and have been very predictable. There is too much at risk for them to change now.

2. A Mortgage For Self-Employed Individuals Will Be More Of A Challenge. I know you’re thinking it's already hard enough but my reasoning is simple. Lenders/banks use a 2-year average to qualify your income and a lot of self-employed individuals will have lower revenue in 2020. This means in 2021, your 2-year average income could be significantly lower than what it is right now using 2018 and 2019. If 2020 has hurt your income and you will need to qualify for a mortgage in 2021, it could make sense to look now so you can still use your 2018 and 2019 numbers.

3. Past Mortgage Deferrals Will Be Scrutinized. If you deferred any mortgage or payments on credit cards, loans, etc, that will open up a conversation from a bank/lender if you're looking for a new mortgage. They will want to know why you went into deferral and the story has to make sense to them. Right now, you can’t get a mortgage if you're still in deferral). Be prepared to answer these questions because they will be asked.

4. Mortgage Funds Will Be Harder To Attain For Everyone. While lending guidelines might not change much, the amount of due diligence from a bank/lender will. We are already seeing more questions about assets, credit reports, income, etc, and I predict this won’t change for 2021. Banks/lenders will be more cautious and will go through a deeper analysis of each file. Having said that, they are still open for business. But regardless of how solid your financial situation is, be prepared for more questions and requested paperwork than usual.

There is a ton of uncertainty out there and everyone is learning and adapting on the fly. The mortgage world can be confusing which is all the more reason to have a mortgage expert help guide you through these crazy times.

What Should You Look For In A Mortgage Outside Of Just Rates?

Mon, 28 Sep 2020 16:10:10 GMT

Getting the lowest interest rate for your mortgage is a hot topic right now.

Getting the lowest interest rate for your mortgage is a hot topic right now. Rates are at an all-time low and Canadians are infatuated with Real Estate.

A low-interest rate is absolutely important, but even more important is to make sure you’re paying the least amount of money to your bank/lender over your term. Interest rates definitely factor into this but having a flexible mortgage with the right features will protect you and your valuable equity.

Some lower rate mortgages look good on the outside but can be restrictive and come with large penalties.

A low rate mortgage with poor features, coupled with bad advice, will cost you dearly. You need to go into the mortgage process with eyes wide open.

There is an interesting stat in Canada - 60% of homeowners break their mortgage around the 36-month mark. Lenders are counting on this; paying a high penalty is factored into their projections and their bottom line.

Question: How do you pay the least amount of money to your lender over your term?

Answer: Combination of a low-interest rate, flexibility, low potential penalties, and great advice.

Here are a couple of things to watch out for:

Prepayment Privileges: This is the ability to increase your mortgage payment and make a lump sum against your mortgage. Any increased mortgage payment and/or lump sum would go directly against your principal and reduce your amortization (length of your mortgage).

Mortgage Penalty: Not all penalty calculations are created equal. There is a big difference between fixed vs. variable rate mortgage penalties. There is even a difference between lenders and how they calculate your penalty.

Portability: This is the ability to move your current mortgage and interest rate to another property. This could save you thousands of dollars in potential penalties and allow you to keep your interest rate if it’s attractive.

Customer Service: Some lenders are better than others when it comes to customer service. This will mean different things to different people but it’s important to know if you’ll be taken care of after your closing date.

By knowing the small print in the mortgage details, you’re ensuring the largest investment of your life will be protected.

You need to go into the mortgage process with eyes wide open while not getting too caught up in what is the lowest rate...your bank account will thank you later.

Catch the Scam

Mon, 21 Sep 2020 16:13:56 GMT

Fraud on the rise

One of our lending partners, HomeEquity Bank, has launched a Catch the Scam campaign with Frank W. Abagnale. The former con man turned FBI adviser whose life inspired the Catch Me If You Can hit movie has partnered with them to empower Canadians 55+ to stay safe from scammers in a four-part video series.

HomeEquity Bank is passionate about advocating for the 55+ community and they take their Safety and Security Brand pillars seriously. Especially during the pandemic older Canadians have become more vulnerable to scammers as they are an easier target being confined to their homes, available and often anxious.

Here are links to the trailer about the series as well as the 4 different scams he address’.

Trailer https://youtu.be/BmJKyTGqyd8

CRA Scam: https://youtu.be/2CemBNIy6ls

Romance Scam: https://youtu.be/I5oeanWiMJw

Lottery scam: https://youtu.be/2q0z3C3neKA

Grandparent scam: https://youtu.be/-9ze-idWV1o

Payment Frequency

Tue, 01 Sep 2020 21:30:11 GMT

Which payment frequency should I choose?

Mortgages in Canada are usually amortized over a period of 25-30 years. However, you can save money, interest costs, and pay your mortgage off much sooner by planning ahead and making a few small changes.

If rather than paying your mortgage monthly, you started making your payments on an accelerated bi-weekly or weekly basis, you will reduce the number of years it takes to pay off the mortgage.

Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your mortgage payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.

What do these ultra low interest rates mean for you?

Tue, 18 Aug 2020 16:05:59 GMT

Interest rates in Canada are at an all-time low.

As you might have heard, interest rates in Canada are at an all-time low.

These rates are being pushed down by the uncertainty from Covid and we don’t see them rising anytime soon. Actually, the Bank of Canada hinted that interest rates won’t rise until 2023: “Based on the Bank’s new forecasts, this implies it has no intention of raising policy rates for several years,” wrote Capital Economics economist Stephen Brown.

“While the Bank may eventually raise its central scenario forecasts for growth and inflation, our forecasts are still consistent with the broad message in today’s policy statement,” he added. “That is, despite the huge stimulus, there is little chance that a surge in inflation will justify raising interest rates within the next few years.”

So what does this mean for you?

Great news, if you are currently in a variable rate, this means your rates are predicated on prime which is currently set at 2.45%. You either have a variable rate of prime (2.45%) minus or plus a spread.

Ie. If you are prime -.50%, you would be 2.45% (Prime) - .50% (your discount) = 1.95%.

If you have any unsecured or secured lines of credit, student loans, certain car loans, etc, you will be seeing low interest rates for the foreseeable future.

The spread being offered on variable rates is slowly coming down and there might be an opportunity to reduce your current variable or fixed rate and take advantage of the historically low rates. There could be a cost to do this (penalty, legal, and/or appraisal) so we’d have to run the numbers to see if it makes sense. The best part of a variable rate mortgage is it comes with the lowest penalty which equals 3 months interest.

If you are currently at a fixed rate, this means you’re locked in for the remainder of your term at your current rate. There might be an opportunity to break your current fixed rate mortgage and take advantage of the low variable or fixed rates BUT it would have to make sense. We will have to factor in a penalty and closing costs to see what the savings actually are.

These low rates are good for everyone, it’s just a question if you can take advantage of them now or in the near future.

If you’d like to see what your options are, please reach out and we’ll see what we can do.

Not All Mortgages Are Created Equal

Fri, 17 Jul 2020 19:13:13 GMT

Not All Mortgages Are Created Equal

When looking for a mortgage, there are many factors that come into play. The first and most obvious is interest rate.

In theory, finding the best interest rate should save you the most amount of money but that’s not always the case. Your ultimate goal should be to pay the least amount of interest during your term and understanding the small print will help you achieve that.

Here are 5 things you should know about your mortgage

1. What is my penalty?

The inevitable mortgage penalty comes into play if you decide to break your mortgage for various reasons - refinance, sale, etc. Penalties are calculated differently from lender to lender and fixed vs. variable. The range of penalty can be .75% to 6% or even 7% of your mortgage balance. If your mortgage balance is 400k, that would mean your range is $3,000 to $28,000. To be honest, the lenders are banking (pun intended) on you breaking your mortgage as 60% of Canadians do in the first 3 years. It’s my job to make sure when you do, you pay the least amount of interest.

2. Is my mortgage portable?

This means, if you buy another home, it might make sense to take your current mortgage and interest rate with you instead of paying the penalty. Most lenders allow this, but some mortgage products don’t. It is essential to know if you can take your mortgage with you for the life of your term so you’re not surprised down the road.

3. What is the small print in my mortgage?

Some no-frills mortgage products offer a lower interest rate but come with some small print. A bona-fide sales clause is one, this means you can’t break your mortgage unless you sell your property. Another one is a fixed penalty percentage, meaning you might pay 3% of your mortgage principal to break even a variable rate mortgage. These are just a couple of the things you need to be aware of.

4. What are my prepayment privileges?

The majority of mortgages come with prepayment privileges. This is the ability to increase your monthly payment and/or make a lump sum payment - both will put the funds directly towards your principle which means you’re paying off your mortgage quicker. Some lenders allow you to prepay up to 25% of your original mortgage amount at any time during the year. Other lenders allow you to pre-pay up to 10% but only on the anniversary date of your contract. If you anticipate using your prepayment privileges then it would be wise to align yourself with the more flexible lender.

5. Do I have a standard or collateral charge mortgage?

It’s important to know this because, at renewal time, there is typically no cost to switch lenders - aka...you are a free agent. But if your mortgage is registered as a collateral charge, you could incur costs of $1,000 to $1,200 to leave your lender. Your current lender knows you have to pay those costs so the renewal rate might not be as low as you expected.

Knowing the answers to these questions will only better prepare you and at the end of the day...save you money.

8 things NOT to do before you take possession of your new home

info@robinsonmortgage.ca (Matt Robinson) — Fri, 12 Jun 2020 18:59:06 GMT

Your mortgage application was approved, you found the perfect new home, your offer was accepted and you’re set to take possession shortly.

Smooth sailing, right?

Yes—almost. At this time, it’s essential that you don’t make any sudden moves that would change your debt, income, or anything else related to your financial situation. It could affect your final mortgage approval. And that would be bad.

Here are a few of our top tips on how to avoid trouble and keep your mortgage financing solid before you take possession.

In all cases, don’t hesitate to reach out if you have any questions. Better to inquire now than ask forgiveness later. Lenders are typically not super forgiving.

Don’t buy a vehicle on credit. It will likely cause a credit report inquiry, which could affect your credit score and affect whether you still qualify for your mortgage before you take possession.
Don’t quit your job , change employers, or alter way you receive income. Thirty days before you take possession, your employment may be re-verified. If it changes, it could affect your mortgage approval.
Don’t overdo it with your credit card or lines of credit, and don’t be late on payments. Late payments affect your credit score. So does spending 70 percent of your credit limits. Don’t do this.
Don’t apply for a new credit card or raise your credit limit . Wait until you take possession before even thinking about it, as it may affect your credit score and cause credit inquiries.
Don’t co-sign a loan. It will result in credit inquiries, and may affect your credit score. Are you noticing a pattern here?
Don’t buy appliances or major furniture. We know you want to decorate and get your home set up soon, but big buys that cause deductions in your bank balance or inquiries on your credit report could affect your ability to maintain your mortgage standing. The sofa bed can wait a month.
Don’t spend cash you need for closing costs. There are several costs related to closing your home purchase, which we can discuss with you in detail if you want. It’s essential that you have those funds handy when they’re needed, plus a bit extra in case something unexpected arises.
Don't deposit large sums of money in your bank account . Weirdly large amounts may trigger a source verification and might require you to pony up documentation. Just wait until after possession, or make these deposits earlier (if you have the time).

CMHC Announces Policy Changes

Thu, 04 Jun 2020 23:09:00 GMT

As the saying goes, the only constant in life is change….

CMHC is making some changes to their underwriting guidelines, given the current environment, to mitigate taxpayer and government risk in the housing market effect July 1st:

Effective July 1st, CMHC has made the following underwriting changes:

So what does this mean to YOU?

For anyone purchasing with less than a 20% down payment these changes will decrease a borrowers affordability by roughly 12%.

The post CMHC Announces Policy Changes appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Mortgage Pre-Approval

info@robinsonmortgage.ca (Matt Robinson) — Wed, 03 Jun 2020 21:27:43 GMT

As a team of DLC mortgage professionals, we're ready to help you move forward. We'll let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be. We can lock-in an interest rate for you for anywhere from 60 – 120 days while you shop for your perfect home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process.

Fixed Rate vs. Variable Rate

info@robinsonmortgage.ca (Matt Robinson) — Tue, 02 Jun 2020 22:01:13 GMT

The decision to choose a fixed or variable rate is not always an easy one. It should depend on your tolerance for risk as well as your ability to withstand increases in mortgage payments.

What is a HELOC?

info@robinsonmortgage.ca (Matt Robinson) — Tue, 17 Mar 2020 16:18:00 GMT

The post What is a HELOC? appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

When it comes to mortgage break penalties, big banks are often the worst

Tue, 19 Nov 2019 19:59:00 GMT

An interesting article was published in the Globe & Mail last week regarding mortgage prepayment penalties and the onerous nature in which the Big Banks calculate theirs.

Statistically, 65% of mortgages will be broken and borrowers will pay a penalty before the five year term is up.

Many people think that the differences in how lenders calculate fixed-rate mortgage penalties are all the same. This is simply not the case.

In the current rate environment, when fixed rates are more favourable for borrowers than variable rate mortgages, it’s important to know that being with a chartered bank may potentially cost you a lot more in the end.

I don’t believe that the vast majority of Canadian mortgage borrowers have any idea that there are significant differences in the way fixed-rate mortgage penalties are calculated, and the largest Canadian lenders, have been in no hurry to explain it to them.

A few reasons mortgages are broken early;

As with entering just about anything in life understanding where the exits are and just what is involved in getting through them is often the most important part of the process.

A conscientious and well informed independent mortgage planner should be able to explain how penalties are charged by any lender they are recommending.

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Canada’s First Time Homebuyer Incentive Program

Thu, 12 Sep 2019 19:21:00 GMT

The First Time Home Buyers Incentive officially came into effect last week and will start providing interest-free shared-equity loans to interested buyers in the form of down payment assistance.

To recap how the program works, participants must put down at least 5% of the home’s value with their own money, while the government (through the Canada Mortgage and Housing Corporation) would contribute an additional 5% of the down payment if the purchase is an existing home, or 10% if it is a new build.

The buyers don’t need to make any monthly payments, though the loan must be repaid after 25 years or when the home is sold.

CMHC also shares proportionately in any future gains or losses in home value. ie. they put in 5% now, they get 5% of whatever the value is when the loan is being repaid.

VIEW FULL PROGRAM DETAILS HERE

VIEW THE ELIGIBILITY CALCULATOR HERE

The post Canada’s First Time Homebuyer Incentive Program appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

What do you look for when shopping for a mortgage? There Is More To Your Mortgage Than Just The Rate

Wed, 20 Feb 2019 16:47:00 GMT

Most people come to me while they are in the process of shopping around for the lowest rate on their mortgage.

Looking for the lowest rate is what everyone is taught to do.

Rarely do people know that the mortgage rate is only ONE of the factors to consider when shopping for a mortgage. And if they are not shopping around it is because they “trust” the bank they deal with – but should they?

Life is busy, and shopping for a mortgage can be a daunting task.

What Is Our Job?

I work for you. My job is to dive in to find out your financial goals and then match those goals with the best lender for your situation.

As an Accredited Mortgage Professional, I keep up to date and educated on the most recent information such as;

When shopping for the best mortgage, most Canadians stop too soon, and they only compare the rate and miss many more valuable comparables such as:

The biggest savings is often found where people don’t look, in the fine print.

The fine print in a mortgage is hard to understand, to begin with, not to mention trying to compare one bank’s fine print to another.

I can prove that there is anywhere from $35,000.00 – $50,000.00 or more in fees and higher interest costs over 10 years of your mortgage, separating the worst lenders from the best lenders.

This is my value, and this is what I can bring to the table.

The advice that you need to avoid huge penalties and fees, the simplicity of selecting the right lender for your situation with the lowest rate all while saving you loads of time trying to learn all this on your own.

How Do I Make Money?

I find the right lenders and show you your options, and you get to choose from there.

The lender that you pick then pays me for helping to put it all together.

You see, I save them time and money as well, and in return for that savings, they pay me for my services, so you don’t have to.

Most of the lenders pay the same or are so close; there is little to no financial advantage to me recommending one lender over another.

All of This Is To Say:

You get the advice you deserve, the bank saves time and pays me for my services.

This is a win, win, win for everyone involved.

My experience with matching clients with lenders has given me a vast pool of expertise. Practice makes perfect – and I am a professional when it comes to selecting the ideal mortgage for you.

If you have any mortgage related questions, reach out to me today, and I can answer them for you!

The post What do you look for when shopping for a mortgage? There Is More To Your Mortgage Than Just The Rate appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Invest in RRSP’s or pay down your mortgage? Which one is better for you?

Thu, 14 Feb 2019 16:33:00 GMT

The decision may not be as hard as you may think. A balanced approach to both investing and debt reduction may provide you with the best
results.

The investing world uses dollar-cost averaging. In the mortgage world we use mortgage payment optimization to achieve the same effect. Reach out to me, and we can automate additional principal payments to your mortgage and knock years off your amortization, Which will save you thousands of dollars in interest.

The post Invest in RRSP’s or pay down your mortgage? Which one is better for you? appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Canada’s housing market ‘vulnerable’ even as overvaluation eases – CMHC

Tue, 12 Feb 2019 17:29:00 GMT

The pronounced downturn in the country’s real estate market has not been enough to get the Canada Mortgage and Housing Corporation to lower the red flag it has been flying for the past nine quarters. The housing agency continues to see a high degree of vulnerability in the overall market.

The Canada Mortgage and Housing Corporation has declared the overall Canadian housing market to be “vulnerable” for the tenth consecutive quarter. This assessment factors in overall housing demand, pricing, new housing startups and other economic factors to determine the overall health of the Canadian housing market.

OTTAWA — Canada Mortgage and Housing Corporation says the country’s overall real estate market remains “vulnerable” despite an easing in overvaluation in cities like Toronto and Victoria in the third quarter.

The federal agency says this is the tenth quarter in a row where it has given the overall Canadian housing market a “vulnerable” assessment.

CMHC’s finding is based on a number of factors including the level of imbalances in the housing market related to overbuilding, overvaluation, overheating and price acceleration when compared with historical averages.

It says it has changed Toronto and Victoria’s overvaluation rating from high to moderate when it measured it against factors such as population growth, personal disposable income and interest rates.

The degree of overall vulnerability remains high in Hamilton, Ont., and Vancouver, where the housing market has cooled in recent quarters but property prices remain high compared to these economic fundamentals.

The Canadian Press

The post Canada’s housing market ‘vulnerable’ even as overvaluation eases – CMHC appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Steps to Repair or Improve on your Credit Score

Thu, 07 Feb 2019 16:58:00 GMT

Credit Tip: While building or repairing your credit, you want at least two credit products (Credit Card, Line of Credit or Car Loan) with an original outstanding balance or a lending limit of $5,000.00 or more.

Both credit products should have at least the last 12 consecutive months with no missed payments.

HOW TO REPAIR BAD CREDIT

The deed is done. You’ve missed a few payments, you’ve overdrawn an account or two, you’ve maxed out your credit and are hiding like an ostrich with its head in the sand.

Obviously, you do not want to be in this position, but do not fear. There are steps to take to repair your credit, that will get you into a position for a financially stable future and to even buy a house within a year or two.

That is if you begin today.

Does this sound good to you? Then keep reading.

STEP 1: CALM THE FIRE

The first step and the most important is to begin to make all of your minimum payments on all of your debt.

You can’t start rebuilding your credit until you start making your payments, even missing one payment can take you so far back that it will feel like you are starting over again.

Also, remember this is step 1, don’t worry about making extra payments at this point, just the minimums. We are trying to put out the fire, if your credit card says the minimum is $10.00, send them $10.00.

Its also better to spread the wealth here, don’t get caught making large payments on a single card trying to pay them off one at a time, to rebuild your credit you going to have to work on all of them at the same time.

CREDIT TIP 1 – Set an automatic payment for the minimum payment to be sent to your credit cards or lines of credit 2-3 days in advance of the actual due date. It can take that much time for your credit company to receive the payment. If you pay your credit card on the date it is due, and the bank doesn’t receive it for a few days they will mark that payment late; it may not show up on credit bureau but it will affect your relationship with that bank,

STEP 1.5: PUT OUT THE FIRE

Bring all the balances on each card credit and line of credit to under your available credit.

I included this in Step 1.5 because some credit cards and line of credits will insist that any amount you are over on a credit card or credit line is paid as part of your minimum payment.

ORDER OF PAYMENTS

Ok, so here is what you are going to calm the fire.

Make all or as many minimum payments as possible. If you don’t have enough money to pay all your minimum payments, start with the smallest debt first and work your way up.

You would rather have three small credit cards in good standing, and one large account with a missed payment.

For the most part at this stage, the amount is ignored by the bureaus, they are just looking at how many cards have missed payments. So the fewer cards with missed payments the better!

STEP 2: REBUILD YOUR CREDIT

So you’re caught up on all your minimum payments, now it’s time to start rebuilding your credit.

YOUR FIRST GOAL

Your first goal is to bring all of your credit cards to under 50% of the current available limit.

If your credit card’s limit is $2,500.00, bring your balance down to $1,250.

This goes for all revolving trade lines like personal lines of credit, credit card, and yes even store shopping cards that have 0% interest.

The reason for this revolves around a credit term called “Utilization”, but all you really need to know is that the bank wants you to have some credit ‘available’ to show that you can have credit under your name without using it.

Those with good credit can control their temptations, and don’t ever really max out their available credit.

With that said, it is better to have two $5,000.00 credit products with balances of $2,000.00 each than to have one credit product with a limit of $5,000.00 and a balance of $4,000.00.

I know it doesn’t make sense, and I would have to write a whole other post to explain this concept alone, but for now, just trust me, do your very best to keep the amount that you owe under 50% of your limit.

I won’t sugar coat this step, it’s a hard one because it means paying back some of your debt. Paying down your debt to get below this 50% threshold will take time, and early on you may not be even close.

So keep this threshold in your mind as a goal, and early on feel free to completely ignore this rule and jungle around debt to take advantage of low rate offers on other cards you may have.

PLEASE NOTE – don’t worry about the threshold if you can put all your debt onto a single low rate line of credit or consolidate your debt into a low rate credit card option. Your priority will always get the lowest rate possible than optimize how you are carrying your debt.

YOUR SECOND GOAL

TWO TRADE LINES WITH A MINIMUM OF $5,000.00 LIMIT

The goal is to have two trade lines at a minimum of $5,000.00 each with no missed payments 12 – 24 months.

When applying for a mortgage, the minimum timeframe with out a missed payment or collection is 12 months. If you have recently filled for a bankruptcy or a consumer proposal you need at least 24 months of no missed payments after you have been discharged.

These are the minimums, you could still be declined depending on other factors, but at least you have a target now.

DEFINITION: TRADELINES

Trade lines are any type of credit line that will go on your credit report. Car loans, credit cards, personal lines of credit and mortgages all count as trade lines.

WHAT CREDIT OPTIONS ARE AVAILABLE?

If you have bad credit it’s hard to apply for credit, right?

I know, you need 2 tradelines but when your credit is so bad no one will give you more credit. While that may be true for the majority of credit card companies and Big Banks, but there are exceptions:

Credit Cards and Lines of Credit

Now, these companies are likely not going to just give you a new credit card or line of credit on the spot without some sort of security. So be prepared to have to put down $250.00 – $1,000.00 as deposits for these cards.

The bank will keep your maximum balance at the amount of money you put down (similar to a debit card) but each month they will report to the credit bureau, which will improve your credit rating.

Big Banks traditionally decline these types of applications, even with security unless you are new to Canada or have no prior credit history. So feel free to start the application process at a major bank first, and then try the list above once you have been declined.

Investment Loans

If your credit is OK, but you are just needing an extra tradeline, you may want to consider an investment loan. Buying an investment (for example, a GIC) at the institution that you borrowing the money from, can increase your chances of approval.

This is not the ideal path for repairing credit but should be seen as a last resort. If are you stuck, this might be an option to consider. Basically, you have a forced savings plan while still earning interest.

You pay the bank some interest for the loan, yes, but are also rebuild your credit at the same time.

Auto Loans

Auto loans can also be a good way to build credit, but don’t get caught up in the purchasing process and buy a vehicle that you can’t afford. A lot of times as well they will get you excited about the vehicle and the interest rate will be extremely high.

I recommend that you try to find a vehicle with a payment that you can afford to pay off with in 18 months. This will ensure that you have recent credit when you apply for your mortgage for you new house, and will allow you to get pre-approved for more money as the payment will no longer exist.

How Often Should I apply for Credit?

Building credit is important, you want to do it quickly, but not too.

Try to apply for a new tradeline every 60 days, until you get 3-4 tradelines than stop. By waiting 60 days between applications you shouldn’t have any impact to credit, you may have heard that too many credit check can damage your credit. 60 days is more than enough time between checks to avoid this problem.

Remember you only need 2 tradelines, but by having 3-4 helps with balancing out utilization and shows maturity. Some of my past clients have had 15-20 open tradelines with limits exceeding $20,000 on each of them, and all with zero dollars owing on them.

STEP 3: MAINTAIN

Now that you have the right amount of tradelines, your balance’s are getting smaller and you can see your available credit start creeping up.

Stay Focused! Let your credit history grow as your debt declines.

The waiting game may be the hardest step if you’ve suffered from bad credit in the past. It will be tempting to go back to earlier spending habits once you see the available credit on your cards.

Question: How long can I expect to have bad credit for?

It is possible, but bouncing back from a credit history horror story does take a time and requires commitment.

The worse your credit trouble has been, the longer for it to bounce back.

12-24 months is standard for a credit ‘refresh’. Remember that poor credit performance in the past will not follow you forever.

Here are a few extra tips to help you along the way.

Tip 1: Do not close credit accounts!

A closed credit account will still show up when your report is pulled up. You will have to explain to the bank why it was closed.

Try to keep paid of cards open. Each month whether you use them or not credit cards report to your Credit Bereau and if they have a $0.00 outstanding balance, they look really good.

Change them to a zero annual fee and just let them sit there and help you boast your score, and as a bet of a PS, if you have 10 credit lines in the future, and you do make a genuine mistake, it will have less of an impact on your score than say you only have 1 credit card with a missed payment.

I recommend only closing them it the annual fee is too high, or if you really know that you will end up spending the money again.

Tip 2: Check your credit report

This might be a scary process that you don’t want to do. We understand this.

Who wants to see their credit report if you know it is bad news? Yes, it is easier to avoid, but it won’t help you fix the problem. Looking at your credit report is a good step towards improving it, so next time you look at it, you don’t have to be afraid.

Tip 3: Only apply for credit that you need

When you are applying for credit, banks will pull up your report. This will cause your score to go down if you apply many times in a short period of time.

This is different than never closing an account, you really don’t want to be applying for credit just for the sack of applying.

There is a special rule that applies to people who apply for credit too frequently, they are called “Credit Seekers”. Apply for 3-4 loans/lines of credit/credit cards in a month and you could be stuck with this label.

It will disappear as soon as you stop applying for credit, but why even worry about it, slow and steady wins this race. Keep the before mentioned 60 day rule in mind and slowly build your credit over time.

Remember: Good credit is the key to financial freedom.

Everything you want to do in the future is made easier with good credit, and it comes quicker. You just have to buckle down and make sure you have a vision or dream of want you are working towards.

Grab a picture of that house you want to buy, tap it over your credit card, or even through them in a glass jar and put them in the freezer. Both tactics will remind you to think twice and evaluate whats more important, this purchase I am considering now, or that goal that I have in mind.

I would wish you good luck, but that would be leaving this process to chance, so instead, I am wishing that you can find the dedication, focus and commitment to move towards your goals, and to a secure financial future.

The post Steps to Repair or Improve on your Credit Score appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Reasons to be Pre-Approved for a Mortgage Early

Wed, 30 Jan 2019 18:29:00 GMT

Getting your mortgage pre-approved will make everything easier in the long-run, but there are some things you should hold off on doing if you’re in the middle of a pre-approval period.

If you are looking to get pre-approved in Abbotsford or Chilliwack, start here first:

When you think of the first steps involved in buying a home, you’re probably thinking about talking to a real estate agent and viewing homes. In fact, these aren’t the first steps towards buying a home. The first steps happen months before, in the office of your mortgage broker.

That’s right, the very first step to buying a home should be applying for mortgage pre-approval. Applying for mortgage pre-approval in advance will allow you to address problems with your application, avoid embarrassing situations, and side-step the potential for financial hardship.

Here are six reasons why mortgage pre-approval is the most important and first step in the home buying process.

1. Increase your buying power with a larger down payment

One of the key benefits of early mortgage pre-approval is that for the first time you’ll have an accurate view of your buying power. Your mortgage broker will use your income information and your down payment information to determine your maximum purchase price, and you’ll have a firm idea of how much home you can afford.

The Home You Want!

The Home You Can Afford!

Once you know your maximum purchase price, you’ll know whether your buying power matches the types of homes and neighbourhoods you have in your sights.

If it doesn’t, you can increase your down payment, which will increase your buying power. There are three primary ways to increase your down payment amount.

3 Ways to Increase you Down Payment

Save More Money

First, you could save more money. The biggest drawback to this method is that it typically takes the longest amount of time.

Ask for a Gift

Second, you could ask for a financial gift from your family. About 15 percent of homes purchased between 2014 and 2016 used a down payment gift according to the latest stats from Mortgage Professionals Canada.

Home Buyers’ Plan

Third, you could take advantage of the Home Buyers’ Plan, which is a government program that allows first-time homebuyers to borrow up to $25,000 from their Registered Retirement Savings Plan (RRSP) to put towards their home down payment. The extra $25,000 could increase your buying power significantly.

Example:

Let’s say you had saved a $25,000 down payment, and have a combined family income of $125,000. Your maximum purchase price is $500,000. But if use the Home Buyers’ Plan and double your down payment to $50,000, your maximum purchase price will increase to $634,100. In some neighbourhoods that may be the difference between buying the home of your dreams and making some serious compromises.

The money you withdraw from your RRSP under the Home Buyers’ Plan can be used for your down payment, closing costs, or even to purchase furniture after you move. The money must be repaid over a 15-year period.

Whether you take the time to save more money for your down payment, ask your family for a monetary gift, or take advantage of the Home Buyers’ Plan, applying for early pre-approval will give you a clear idea of how much home you can afford so that you can adjust your expectations accordingly.

2. Renovate and customize your new home

Applying for early mortgage preapproval can expand your home buying options, especially if you weren’t open to a home in need of renovations. Applying for pre-approval can give you a leg up on your application for the Canadian Home Renovation Plan, which allows homebuyers to finance an additional 10% of the total purchase price for home improvements or renovations. The maximum amount you can finance is $40,000, and this amount is added to your mortgage amount and paid off over time.

With up to $40,000.00 available for renovating your home, there are limitless ways to customize your home to your liking. What renovation would you do, Kitchen Bathroom, or new flooring?

So if you’ve previously turned away from homes in need of new kitchens or bathrooms, the Canadian Home Renovation Plan could help you turn that no into a yes, and expand your home buying options dramatically. The program requires you to communicate with contractors and obtain quotes, so starting early is a good idea.

3. Secure a lower rate

While Canada has been living in the era of ultra-low interest rates for almost a decade, mortgage interest rates have been slowly creeping up over the past year and a half. If you know you want to buy a home soon, and you want to take advantage of today’s low rates, applying for mortgage pre-approval will help you achieve this goal. Mortgage pre-approval comes with the option to lock in a specific mortgage rate for a certain number of days, usually 120 days. Rate holds are usually applied to fixed-rate mortgages. If rates rise during your rate hold, you are entitled to the lower rate. If rates drop, your mortgage broker will renegotiate the lower rate on your behalf.

4. Learn the necessary closing costs

Most people are aware of down payment requirements when it comes to searching for a home, but what about closing costs? Closing costs include legal fees, land transfer tax, property taxes, home inspection fees, and more. A good rule of thumb is to budget between 1.5% and 4% of the selling price for closing costs.

If you haven’t budgeted for closing costs yet, now is the time to start. If your home buying budget is $300,000, you’ll need at least $4,500 saved for closing costs, on top of the $15,000 minimum down payment.

When you apply for mortgage pre-approval, your mortgage broker can supply you with a list of common closing costs for your area, and advise you on whether you have enough money saved. If you don’t, an early mortgage pre-approval means you have plenty of time to get your ducks in a row before you begin searching for your new home in earnest.

5. The do’s and don’ts before applying for a mortgage

A good mortgage broker will provide you with a checklist of everything you need for your final mortgage application, but going through the pre-approval process is a good way to determine whether there are any red flags to address right away.

Common items like proof of down payment, income verification, and your credit score will all be checked during the pre-approval process, which will give you time to rectify any errors well in advance. Your mortgage broker will also advise you on common mistakes to avoid between getting pre-approved and final approval. Common mistakes to avoid include:

These are major life changes that can affect your ability to qualify for a mortgage. In most cases, you should wait to make these life changes until after you become a homeowner.

6. Credit is king

Your credit score is a major part of your mortgage approval, so the time to check your credit score and report is during the pre-approval process.

You can order a copy of your credit report from one of the two major credit reporting agencies in Canada: Equifax or Transunion. Alternatively, you can request a free copy of your credit score and report from a company like Borrowell.

It’s important to ensure the information listed on your credit report is correct, and if you catch any errors, report them immediately to both credit agencies. Common mistakes include:

Some errors, such as a misspelt name will not directly affect your credit score, but others, like misattributed credit accounts, can negatively affect your credit score. Since your credit score is an integral part of the mortgage pre-approval process, it’s important to get these errors fixed promptly. The process of fixing errors on your credit report and seeing the change reflected on your credit score can take up to six months, which is why it’s a good idea to apply for mortgage pre-approval early.

In all of these cases, getting early mortgage pre-approval will take the pressure off and give you time to make sure you are ready for the home buying process. Buying a home is stressful, and early mortgage pre-approval helps alleviate some of that stress.

The post Reasons to be Pre-Approved for a Mortgage Early appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Buying a condo when you have pets

Fri, 25 Jan 2019 22:32:00 GMT

If you’re looking at buying a condo in Abbotsford or Chilliwack this year, there are a couple other considerations if you have pets. Not all condos are pet-friendly. Some condo complexes even ban pets outright, or sett limits on number, breed or size. Prior to submitting an offer, it’s important to research the condo corporation’s by-laws and procedures to ensure you don’t have to make the choice between the home of your dreams and your furry family member.

Learn more by reading my article here: https://www.clearhome.ca/links/?b=MattRobinson&l=1802

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Top 3 Budgeting Apps To Help You Save For Your First Down-Payment

Fri, 03 Aug 2018 00:30:00 GMT

In today’s society, people turn to their phones for many things such as research, entertainment, communication, and direction. So why not use your phone for financial purposes? There are multiple phone applications available on the market that can assist you in staying organized with your finances and help you achieve specific goals. These goals can range from paying for your Chilliwack mortgage on time or even saving for your first down-payment.

You need to be sure and have a lot of money saved up to pay for your down payment, which is a set percentage of your home’s purchase price. To help you get started, your Chilliwack mortgage broker , Matt Robinson with Dominion Lending Centres, has listed the top 3 budgeting apps to help you save for your first down payment.

#1: Mint

Mint is a free application that can help you manage your finances easily. This app has multiple features that include tracking bills, accurately budgeting, free credit checks, reminders on when your bills are due, payment categorization, and investment tracking all in one secure location. This app is personalized to you, it allows you to pay bills online, and it gives advice on ways to cut back on spending and increase your savings.

#2: Debt Minder

Debt Minder on Go is an inexpensive app that can help you pay off debt and manage your finances. This app will strategically map out how you can reduce your balance by using a “Debt Snowball” method and customise each plan to your financial situation. You are able to select any type of currency you want, and this app will also show you your daily and monthly interest accrual rate in an easy to understand graph.

#3: iXpenselt

At a low monthly fee, iXpenselt is a daily and monthly expense tracking application that can help you save for your first down payment. This app’s features allow you to input your expenses and store photo receipts on the go. With this simple tool, you can consolidate all your debt and expenses into one area to help you easily track how much you are spending versus how much you are saving. You can then export this information from your phone into an excel file. For more information, please click HERE .

Contact your Chilliwack mortgage lender today for more information on these three budgeting apps. Or if you would like to get started on your mortgage application, please call 604-852-1703 .

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Top Home Renovations that Have the Highest ROI

Fri, 06 Jul 2018 00:59:00 GMT

Renovating a home with the intention of selling it to make a profit is a booming industry in the house world. Before you start any home renovations, there are some areas of your home that you should focus on to give you the highest return on investment.

To help, your local Chilliwack mortgage broker , Matt Robinson with Dominion Lending Centres has listed five areas in your home that should be the first place you renovate.

#1: Bathrooms

Renovating your bathroom is a must because people can definitely tell if you have spent a decent amount of money purchasing high-quality materials. This increases the overall appeal of your home and gets more buyers interested in making an offer.

Bathroom repairs are averaging at least 100% return on investment. Therefore, really take your time picking out the best bathroom tile, and look up free sources online that provide helpful tips to give your bathroom a more modern look.

#2: Kitchens

Whenever you decide to renovate your kitchen, it will generally cost you thousands of dollars. You may not think this is worth it, but depending on how your kitchen looks can really make or break a purchasing deal. A small kitchen renovation could cost you around $21,000 and resale value is around $17,000, which means you could earn back 81% of the money put into this renovation.

#3: Garage Door

Replacing your garage door may not seem like a big deal, but it can actually make buyers less interested if your garage is in poor condition. You can replace your garage door for an average price of $3,500 and your resale value could be around $3,400, which gives you about a 98% return on investment.

#4: Curb Appeal

Updating your curb appeal is important because this is the first impression your property makes on potential buyers. If you do not renovate the exterior of your home by fixing areas where the paint has chipped or by planting new fresh flowers and grass, you could deter buyers from ever entering your home. Consider these useful tips and also add fresh mulch to give the exterior of your home a cleaner, fresher look. For more useful tips on ways to improve your curb appeal, please contact your Chilliwack mortgage lender at 604.852.1703 .

#5: Wooden Deck

You may want to consider adding a wood deck in your backyard to increase seating space and make this area look more inviting. The average cost of placing a wood deck is about $11,000 and the average resale value is around $9,100, which means you could be making about 83% return on investment.

If you would like to know more information on top renovations that give you the highest return on investment or if you are wanting details on different Chilliwack mortgage options available, please contact Matt Robinson at 604.852.1703 .

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Chilliwack Market Update

Sat, 02 Jun 2018 17:37:00 GMT

Congratulations on making the decision to become a homeowner. Owning a home has a lot of added benefits such as artistic freedom, more privacy, tax deductions, equity, and stable payments. Before you can start reaping these benefits, however, you must first find your dream home. This can be done by familiarising yourself with the current market. As your Chilliwack mortgage broker , Matt Robinson with Dominion Lending Centres can update you with the current residential trends, and inform you on when the best time to buy is.

Chilliwack Market

According to the Canadian Real Estate Association , the number of homes sold in April 2018 was 361 units, which is a 3% decrease from April 2017. Comparing the homes sold from January to April this year was 1,108 units, which is a 2.4% decline from the year prior. In addition, the average price of homes sold in April was $533,020, which is about a 16% increase from 2017, and on a year-to-year basis, the average sold price was $516,393, which is a 17.5% increase from last year.

Zolo.ca , states that the median listing price for singe-detached homes was $662,400, the median price for condominiums was $253,850, and the price for townhomes was $446,000. The change in price per year has increased 6.9%, and comparing asking prices from May 2017 to the present, has since increased 24.2%.

If you are looking to buy a home and obtain a Chilliwack mortgage , now would be the time before the market continues to increase. You could even use past residential pricing as a negotiation tool for cheaper rates and better deals.

Get Started Today

For more information on the current residential market, please contact your Chilliwack mortgage lender . With rates constantly fluctuating, Matt Robinson can go through your finances, let you know your affordability, and suggest when the best time to buy would be. His team at Dominion Lending Centres would love to work with you and help finance your dream home. So don’t wait, call his office today to get started at 604-852-1703 .

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Mortgage Rates And Why They Fluctuate

Tue, 15 May 2018 00:41:00 GMT

As your local Abbotsford mortgage lender , I understand the confusion behind understanding mortgage rates and why they fluctuate. Mortgage rates can be determined by a number of different factors including, but not limited to:

Being aware of the current market and understanding how these factors can affect the rise and fall of interest rates can help determine what the cost of your Abbotsford mortgage will be. For more information on factors that affect the economy, please contact Matt Robinson at Dominion Lending Centres at 604-852-1703 .

Fixed Rate Mortgage

A fixed-rate mortgage is where your monthly rates are set and will never change throughout the duration of your loan term. These rates are determined by the Government of Canada bond yields. Bond prices and bond yields have an opposite effect on each other. This means that if bond prices are decreasing then bond yields are increasing. Bond prices will decrease if the economy is doing well.

Bond yields have a direct relationship with fixed rates. So if the economy is doing well then bond prices are decreasing, bond yields are increasing and fixed rates are increasing. If the economy is booming then consumers are purchasing more, which creates a higher demand. An increase in demand means an increase in rates.

Variable Rate Mortgage

Variable mortgages have rates that can fluctuate month to month, which is dependent on the lender’s prime rate. The Bank of Canada determines these rates since they choose the target overnight lending rate. The overnight lending rate is the interest banks accrue when borrowing or lending against themselves. If the overnight rate changes then so do the cost of borrowing and lending, which affects the prime rate. Variable rates are influenced by the prime rate, which means if the prime rate increases, then so will your variable rate.

To get a more detailed explanation of mortgage rates and how they fluctuate, please contact your local Abbotsford mortgage broker today. Matt Robinson is the local broker that will educate you and help guide you throughout the home loan process. So don’t wait, call his office today at 604-852-1703 to get started.

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Mortgage Survival Guide – Abbotsford Mortgage

Fri, 20 Apr 2018 00:10:00 GMT

Matt Robinson | Dominion Lending Centres

604-852-1703

info@matthewrobinson.ca

As a first time homebuyer, trying to figure out how to get a mortgage can be overwhelming. Matt Robinson, at Dominion Lending Centres, has created a mortgage survival guide to help you be more organised throughout the home loan process. Working with Matt Robinson to obtain your first Abbotsford mortgage can help you get the best options and rates on the market.

Being organised with your finances can help prepare you for a mortgage. Before you start your home loan application, make sure you know your current credit score. Your income and credit score largely affected how much you are able to borrow. If you notice any faults on your record then you should fix these problems before your application is sent in.

Contact your local Abbotsford mortgage lender to get pre-approved. This can be beneficial because it will let you know exactly how much you can borrow from the lender, and therefore, know exactly what price range to shop in. Knowing your affordability in advance can save you time by avoiding homes that are not in your budget.

You are given more credibility depending on how long you have been working at your current job for. Lenders appreciate borrowers who have a steady income of at least two years with their current employer. If you constantly switch jobs, now might not be the best time to buy a home because lenders want to see that you are financially responsible.

Before you start your home loan application, make sure you have enough money in the bank to pay at least 5% of your home’s down payment. The more savings you have, the better your application will look. If you have a lot of debt and no savings, you will most likely be declined for a home loan. In addition, continue saving and avoid making other big purchases until after your loan has been approved. Taking on unnecessary debt can hurt your application.

Buying a home is most likely the biggest purchase you will ever make. Make this an exciting time instead of a stressful one. Following this mortgage survival guide will help prepare you for homeownership. If you have any questions or are wanting to get started on your application today, please contact your Abbotsford or Chilliwack mortgage lender at 604-852-703 or email info@matthewrobinson.ca .

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The Difference Between Fixed and Variable Rate Mortgages

Tue, 13 Mar 2018 22:09:00 GMT

Are you in the market for an Chilliwack mortgage , or are looking for an Abbotsford mortgage broker , well look no further because Matthew Robinson is here to help you!

When deciding which home loan is your best option, it is important you evaluate your finances. Be aware and honest about your income, the specific lifestyle you lead, and your personality. Some mortgage rates are riskier than others so it is important you recognise whether or not you can handle the inconsistency and potential risks that are associated with those loans.

So what loan is right for you? There are two main types of loans: fixed rate mortgages and variable rate mortgages.

Fixed Rate Mortgages

A fixed rate mortgage is a loan where the rates are consistent throughout the term of the loan. No risk is associated with this loan in terms of interest rates going up unexpectedly. Your monthly payments will not fluctuate, and instead stay consistent. This is a great option if you do not like to take risks. With this loan, you know exactly how long it will take you to pay off because the rate never changes. It allows you to accurately budget, however, higher interest rates are usually associated with fixed mortgages.

Variable Rate Mortgages

A variable rate mortgage is a loan where the interest rates are a lot lower than a fixed mortgage. This mortgage is associated with a lot more risk. Without a heads up, the interest rates could increase or decrease. This inconsistency can cause people a lot of stress, so it is important to understand if you can handle the risk or not. Assessing your financial situation and seeing if you can afford at least a 2% increase in your variable rate, is a good way to know if this option works for you.

Get Started Today!

Regardless of which loan you would like to go with, your local Abbotsford and Chilliwack mortgage broker can work with you and advise you on your best option. So don’t wait, contact Matt Robinson today at 604-852-1703 or info@matthewrobinson.ca.

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The Difference Between Fixed and Variable Rate Mortgages

Mon, 12 Mar 2018 16:11:00 GMT

The Difference Between Fixed and Variable Rate Mortgages

Matt Robinson | Dominion Lending Centres

info@matthewrobinson.ca – 604-852-1703

Are you in the market for an Chilliwack mortgage , or are looking for an Abbotsford mortgage broker , well look no further because Matthew Robinson is here to help you!

So what loan is right for you? There are two main types of loans: fixed rate mortgages and variable rate mortgages.

Fixed Rate Mortgages

Variable Rate Mortgages

Get Started Today!

The post The Difference Between Fixed and Variable Rate Mortgages appeared first on Abbotsford & Chilliwack Mortgage Broker Lender .

Chilliwack Mortgage Lender – Market Update

Mon, 12 Feb 2018 03:57:00 GMT

Like in many other Canadian cities, 2017 was a banner year for the Chilliwack real estate market.

According to the Chilliwack & District Real Estate Board , the volume of home sales last year was beat out by only one other year on record. The total number of home sales that were recorded at the end of last year through the MLS System by the CDREB was well over the number of sales recorded the at the same time the year before.

At the end of December 2017, there were a total of 204 recorded home sales. This figure is almost 24% higher than the total number of sales recorded in the same month of 2016. When the sales figures for the entire year are compared, 2017 saw a total of 3,983 sales which was actually 7.5% lower than the annual total for 2016.

This shows us that despite coming in slightly below the year before as a whole, last year ended much higher than expected and has set Chilliwack up for a fantastic market as we head into the New Year!

As there continues to be a pressing demand for homes in the area, new residential listings have almost doubled on a year over year basis. In December of 2017, 181 new residential properties were listed on the market, 36.1% more than in December of 2016.

Despite this increase in new listings at the end of the year, there were still less active listings at the end of December 2017 than there were at the end of December the year before. This tightening between the supply and the demand of homes in the local area has contributed to the continued increase in the sales price of homes.

In December of 2017, the average sales price of Chilliwack homes was recorded at $483,156. This price is up nearly 25% from December of 2016. On an annual basis, the average sales price of Chilliwack homes rose 16.8% to $464,897 in 2017. This increase does not come unexpectedly as the annual average price saw an increase of a larger 18.4% between 2015 and 2016.

If you are interested in purchasing a home in the local area, you will get the most out of your mortgage process by working with a reputable Chilliwack mortgage lender. Give me a call to find out more about your home financing options or to get started on your mortgage process today!

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Abbotsford Refinance – Refinancing Your Mortgage

Thu, 11 Jan 2018 19:30:00 GMT

Are you interested in lowering your monthly mortgage payments? Do you have unexpected medical bills you need to pay? Or perhaps there are some renovations you would like to do in your home?

If so, have you considered refinancing your existing mortgage to help you offset some of these additional expenses?

While a mortgage refinance is not something to jump into without all of the facts, there are many reasons for homeowners to consider refinancing their existing mortgage, including the ones mentioned above.

When you refinance your mortgage, you are basically replacing your current mortgage with a new one. This new mortgage will have either a different interest rate, term or loan amount – or possibly all three. If you want to lower your monthly mortgage payments, you may try refinancing to a lower interest rate or a longer term. Some homeowners manage to save up enough to pay off a portion of their loan, giving them the option of refinancing their mortgage and obtaining a new mortgage with a lower loan amount. If you want to access some of the equity that you have built up in your home, you may try to refinance to a larger loan amount.

While taking advantage of lowered interest rates is the most common reason to refinance a mortgage, that is clearly not the only reason. In fact, there are some cases where you may be better off adjusting other aspects of your mortgage contract instead of negotiating for a lower interest rate.

Because you are essentially obtaining a new mortgage, the process of refinancing your mortgage is just as involved as it was with your original mortgage. You will still be required to fill out an application and your qualifications and eligibility will still be evaluated. There may also be additional closing costs associated with your refinance, similarly to when you closed on your original mortgage.

Refinancing your mortgage can be a complicated process, which is why it is so important to work with an experienced mortgage professional. As a trusted Abbotsford mortgage broker, I am here to make sure that refinancing your mortgage is indeed the best option for your situation and, if it is, to make sure you are getting the best financing possible!

If you are thinking about refinancing your mortgage, give me a call today!

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Chilliwack Mortgage Broker – 4 Questions to Ask Your Mortgage Broker

Wed, 13 Dec 2017 14:47:00 GMT

As a Chilliwack mortgage broker who has been working in Chilliwack, Abbotsford and the surrounding area for some time, I have helped numerous clients achieve their dreams of affordable home ownership. I do this by providing my clients with all the tools and resources they need to make confident decisions about their mortgage options.

As a professional in the industry, I believe that my job involves more than just getting mortgages for my clients. It involves educating them throughout the process and relieving the burden of stress that tends to come with the mortgage process.

I truly enjoy the relationships I have built with my clients over the years and I love being able to help them enrich their lives through the pride and joy that comes with the purchase of a new home.

I understand that each of my clients had a chose to make when it came to who they were going to work with for their mortgage, and I am honored to have been chosen by so many.

In an effort to make your decision easier, I decided to create this post with a list of questions that are important for borrowers to ask before they choose their mortgage broker. The answer you get when you ask these questions should help you narrow down your search and find the mortgage broker that is the best fit for your needs.

Question Number One – Do You Have References?

It is important to feel that you can trust the person you will be working with, especially when it comes to such a large financial transaction, like the purchase of a home. If you were not referred to the mortgage broker by someone you trust, make sure to find out what people have to say before making your final decision.

Question Number Two – How Long Have You Been in Business?

With this question, you don’t necessarily need to be looking for someone who has been in the business for 20-30 years. While that amount of experience is fantastic, someone who is relatively new to the industry (at least 5 years of experience) could still provide you with outstanding service and may be more up to date on the latest market news and trends.

Question Number Three – What Does the Application Process Look Like?

Regardless of who you decide to work with, you will want to know in advance what to expect from the application process, what paperwork or verification will be required, and how long you should expect the process to take.

Question Number Four – Do You Have Any Areas or Loans That You Specialize In?

Whether you have problems with your credit or you are self-employed, every situation is different. Each of these different situations requires a different level of service and, of course, different financing options.

Be sure to find out if the brokers you are considering have experience or the required qualifications to work with you on your particular situation.

Asking these four questions should help you get off to a great start when it comes to deciding on the right mortgage broker for you!

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Chilliwack Mortgage Broker – Characteristics of a Great Broker

Thu, 09 Nov 2017 02:37:00 GMT

There are already enough tough decisions to make when it comes to the financing of your new home – choosing the right mortgage broker shouldn’t be one of them!

Great mortgage brokers will always be available to their clients and will usually come highly recommended by friends, family, past clients and sometimes even real estate professionals. In addition to these qualities, there are several other characteristics every great mortgage broker should possess. To help you narrow down your search, and to make sure you are considering all your options fully, I have created a list of a few of the most important characteristics you should look for when you are choosing a mortgage broker for your home loan.

As a Chilliwack mortgage broker, I know that there are plenty of options available when it comes to who you will work with on your mortgage, but they aren’t always equal. It is important for you to choose a great mortgage broker who is the right fit for you and your situation.

If you are looking for a mortgage broker who possesses all these characteristics and more – who will always put your best interests above everything else – give me a call today! I would love to go over your loan options with you and show you smoothly the mortgage process can go when you work with a great mortgage broker.

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