Buying a Million Dollar Home, What You Need to Know

This past week of sunshine has given us a boost of excitement for what is to come this summer – except for the rain that decided to make an appearance – feel free to go away, I have baseball to coach this weekend.

The environment in our office has shifted slightly in recent months. Real estate has turned the heat back up with multiple offers and stats are indicating a seller’s market, we might need to get ready for another whirlwind real estate frenzy.

Changes in real estate and the mortgage industry have significantly affected the financial lending division. To make it simple, getting a mortgage isn’t as easy as it once was. Restrictions and rules drastically limit options for home buyers and those looking to refinance or renew their mortgages.

Luckily for us, our team of Abbotsford mortgage brokers have sourced out a few options to get around the “stress test” which requires borrowers to qualify either 2% above the contracted rate or using the posted bank rate, whichever is greater (meaning we’re able to secure a larger mortgage).

Lenders are using what we call in the industry, “sliding scales”. These scales determine maximum loan amounts on properties over $1M which seems to be a more normal house price in this day and age. These “sliding scales” are crucial to borrowers trying to buy a home in this price range.

The feedback we’re getting from the general public, is that their local lenders and banks are cutting back their loans up to 50% on every dollar borrowed that exceeds $1M.

As a result of this cut back, down-payments of 20% on a $1.5M house can go from $300K to $450K ($150K difference, that’s a lot of dough).

Our team of experienced Abbotsford mortgage brokers can reduce that down-payment to as little as 20% or if refinancing, help you access more equity out of your home. We’re able to provide these solutions for both employed and self-employed individuals.

If you are someone looking to buy in this range or own a home in this value range, contact our team to discuss your options – we can help.

 

 

Did You Know That Your Kids Could Increase the Mortgage Amount You Qualify For?

Are you and your family looking to purchase your first home or upgrade to accommodate for your growing little’s? We can help.

Our clients know the difference between using a BRMC Abbotsford mortgage broker vs other competitors. Our team of skilled experts have the resources to secure some of the lowest mortgage rates while obtaining your mortgage, quickly and efficiently. We will work to meet or exceed your purchase price expectations.

Many of us are aware of the recent changes in the lending/banking industry which have made it increasingly difficult to obtain financing for a home. These new rules resulted in lessening the maximum purchase price a borrower would typically qualify for. We do, however have some good news. Our team of Abbotsford mortgage brokers have exclusive access to three lenders that allow us to include Child Tax Credit on your application to help increase your purchase price.

The option to add your Child Tax Credit onto your income is not available through the major banks and excludes majority of lenders, meaning – there’s a good chance you won’t find this anywhere else.

Here is an example:

The Williams’ family:

  • Mr. Williams’ annual salary: $50,000
  • Mrs. Williams’ annual salary: $85,000
  • Mr. and Mrs. Williams’ have 3 children
  • Down-payment: $150,000
  • Mr. and Mrs. Williams’ are both debt free
  • Mr. Williams’ credit score: 720
  • Mrs. Williams’ credit score: 650
  • MAX PURCHASE PRICE: $962,000 

*Based on today’s best interest rate and a 5-year fixed term

The Williams’ family when using a BRMC Abbotsford mortgage broker:

  • Mr. Williams’ annual salary: $50,000
  • Mrs. Williams’ annual salary: $85,000
  • Mr. and Mrs. Williams’ have 3 children
  • Down-payment: $150,000
  • Mr. and Mrs. Williams’ are both debt free
  • Mr. Williams’ credit score: 720
  • Mrs. Williams’ credit score: 650
  • Add child tax benefit to your income of $4,500/year
  • MAX PURCHASE PRICE: $992,000 – increase of $30,000

*Based on today’s best interest rate and a 5-year fixed term

By including your Child Tax Credit on your mortgage application, we can increase your purchase price by $30,000.

Contact our team today to explore your home buying options.

 

 

The Interest Rate Spring War Has Arrived, Lower Rates to Come

Hi Abbotsford, Chilliwack and Mission mortgage clients! We have good news for you. Rates appear to be dropping further, therefore this may be an opportune time to renegotiate and secure a mortgage. If you’ve considered buying, refinancing or renewing your mortgage, we suggest giving our team a call so we can look at your current mortgage and see if it’s worth making a move.  Here are a few reasons why we believe now would be a good time to review your mortgage or for home buyers, a good reason to consider purchasing while rates are at historical lows.

  • A shifting economy will push the BOC (Bank of Canada) to lower interest rates further
  • Negative growth in demand over the last two quarters
  • The BOC has recently moved to a more neutral bias, rather than tightening
  • US Federal Reserve has entertained the idea to make a cut mid way through 2019, Canada generally follows
  • Recessionary conditions in other parts of the world will likely influence Canada

We have a seasoned mortgage consultant on our team who specializes in placing those looking to refinance, in a strategic mortgage plan during the spring rate wars that take place every year. We are prepared to work hard on your behalf because feeling a little more financially free, or paying off your mortgage sooner, is a priority to each one of our team members.

Give us a call for your complimentary mortgage review.

Source: https://www.mortgagebrokernews.ca/news/boc-will-likely-cut-interest-rates-next–economist-255388.aspx

First-Time Home Buyers’ Tax Credit

 

Abbotsford, BC – If you are a first-time home buyer and recently purchased a home, we encourage you to speak with your Abbotsford mortgage broker as you may qualify for a tax credit up to $5,000, which can reduce your taxes by $750. The home buyers tax credit was introduced to assist first time home buyers purchase a home.

There is also a a credit for those with or living with those with disabilities.

For more information on the First-Time Home Buyers’ tax credit visit Canada Revenue Agency., or follow this link: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-369-home-buyers-amount.html