Posts

WHY CHOOSE A MORTGAGE BROKER?

WHY CHOOSE A MORTGAGE BROKER?

It’s almost instinctual to think of your bank when buying a home or making changes to your mortgage. Ask yourself this, would you go to one dealership to buy a car or would you shop around for the best price? A mortgage broker does exactly that, we take your information and shop all the banks/lenders on your behalf. This not only saves you time and stress, but it also prevents you from having several credit reports pulled, in return protecting your score. Today you have the convenience and the opportunity to work with a mortgage broker who is solely working on your behalf, accessing and locking in the lowest rate available to you.

Why is a Mortgage Broker the right choice for you?

  • One-Stop-Shop
  • Using a mortgage broker is FREE in almost all cases
  • Clients fill out one application and don’t have to seek out multiple lenders’ quotes
  • Brokers have access to multiple lenders with better rates, including:
    • Major Banks
    • Credit Unions
    • Niche Lenders
    • Insurance and Trust Companies
    • Private Funds
  • Mortgage brokers are true specialists and are knowledgeable about what different bank/lenders have to offer.
  • May be able to arrange a mortgage for those having trouble getting approved by banks, such as:
    • Self-employed individuals.
    • Those with poor credit history

Chilliwack Mortgage Broker

With a Mortgage Broker

You will have an individual hands-on experience, a person who unbiasedly works on your behalf while walking you through all the steps involved.

A Broker does more than just find you the best mortgage, they discuss your personal financials and lifestyle situation, whether you plan to stay in your house for a long period of time or use it as an investment tool. We also provide you with details on various banks/lenders, discussing the pros & cons of fixed vs variable rates as well as any cancellation or prepayment policies. We break your mortgage contract down in simple form so every aspect is understood by the mortgagor.

Getting a mortgage is an enormous step for anyone, don’t do it alone, contact our team at Browne Mortgages + More to invest in arguably the biggest decision of your life!

 

Elections & Changes For Canadian Home Buyers

With elections six months away, Canadian homebuyers are hopeful for a solution to address the housing affordability issue and so are we. It’s undeniable that certain rule changes have made housing unaffordable for several homebuyers across Canada, but these changes not only affect those trying to buy, they also affect Canadians who have been homeowners for several years.

Often referred to as the “stress test”, home buyers and homeowners are required to qualify for a mortgage on the greater of either: 2% above their contracted rate or the posted benchmark rate. This mortgage stress test drastically limits funds available to those trying to buy, refinance, and even renew their homes. It is likely that our government will take action to hopefully make housing affordable again, we just don’t know how beneficial those changes will be to Canadians.

There are rumors of a proposed change that could cost Canadians an extra $40,000 of interest on the average $400,000 – here is our take on it.
Elections in Canada - Chilliwack Mortgage Broker

The Truth Behind Best Interest Rates

When it comes to getting a mortgage for a home purchase, refinancing to consolidate debt or simply renewing your mortgage, most of us are interested in securing the best interest rate. You’ll often see websites such as rate hub, offer rates that beat just about anything you’ve been quoted by your bank or mortgage broker, but did you know that 4 out of 5 people do not qualify for the rate they saw advertised? That incredibly low interest rate you saw online, will likely come with a detailed list of restrictions.

Here are a few common mortgage scenarios and the percent you can expect to add onto that “best interest rate”.

 

The above figures are estimates and subject to change without notice E&O, O.A.C.

Market Update – Interest Rate Increase Oct. 24, 2018

Market Update Interest Rate 2018 - Chilliwack Mortgage Broker

We’re not sure about everyone else, but does it not feel like sunshine and 30-degree weather was yesterday? Is there anyone else wondering how it’s already mid October!? We are 16 days away from Halloween and Christmas is around the corner. The organized individuals of the world have probably started shopping however, there is something to be said about those who scramble last minute – we’re either mildly insane for doing so OR is there a sense of achievement attached if you manage to pull it off? It’s almost the same level of pride you experience when you successfully carry your groceries from the car to the house in one trip and who doesn’t appreciate a one tripper?

Speaking of scrambling last minute, let’s talk interest rates. While there is no need to panic, in just over a week from now the BoC should be increasing the benchmark rate a quarter percent on October 24th, followed by another potential increase in January 2019. You should speak with a mortgage consultant if you are 3 or more years into your mortgage term, in a variable rate mortgage or have considered refinancing, now would be the time to act.

There is a lot of speculation when it comes to the future of interest rates, some economists are predicting rates to reach as high as 6% by 2020 but it’s near impossible to predict such thing. While this may seem drastic to some (by some we’re referring to the millennial’s of the world who never experienced 13%-20% interest rates in the 80’s) it’s important to remember that the rates we have now are still considered historically low.

We are starting to see the affects of the new B20 mortgage regulations, introduced over the last two years. Together with interest rate increases, the real estate market in Abbotsford, Mission and Chilliwack have slowed down. Reports show a 33.2% decrease from the same month last year in residential unit sales. The average home price in BC is down 1.1% year-over-year, averaging the detached home price at $685,749.

If you’re interested in accessing the equity in your home, you might want to consider doing it sooner than later. Chances of this slow down continuing are relatively high especially with increasing rates in the forecast, it’s likely that these changes will result in further depreciation.

The slow down we’re starting to experience could open a window for interested home buyers but given all the recent regulatory changes it’s more important now than ever to work with a seasoned team of mortgage advisors who are familiar with the new requirements and know how to work around them.

If you have any questions about how the interest rate increase might affect your current mortgage, please feel free to contact our team. We offer complimentary mortgage reviews and will work with you to secure the best mortgage product suited to your financial goals and needs.

 

Refinancing? Don’t miss out

If you’ve considered refinancing your house for a renovation, debt consolidation or any other reason, now might be your last chance to qualify.

Earlier this year the Government of British Columbia implemented a new mortgage rule which required borrowers to qualify at 2% above the contract rate.

Example

Before new mortgage rule – Borrowers could qualify at the given contract rate: 3.59%

After new mortgage rule – Borrowers we’re required to qualify at 2% above the given contract rate: 3.59% + 2% = 5.59%

Almost all lenders followed suit and changed their lending guidelines so that borrowers had to abide by the new rule, known as the “stress test” or “B20”.

Up until this point, there were a very small handful of lenders that did not change their lending guidelines and continued allowing clients to qualify at the contract rate. This small pool of lenders has slowly dwindled down and one by one are now requiring clients to qualify under the new mortgage rule.

It has been brought to our attention the last lender that was not qualifying clients under the new “stress test”, will now be implementing the stress test to all borrowers in the new future.

Please call our team as soon as possible to discuss your options as it is unlikely we will receive any warning prior to the implementation of this rule change.