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

The 10 Not-To-Do’s after Subject Removal

Buying a home is the largest purchase most of us ever encounter. Yet a small percentage of people sometimes take less time considering it than they do when buying an online item. The reason is, it’s unique territory to many. We don’t know what to ask and we are aided by many professionals unlike when we buy items on online.

We also may take things for granted, rely on others too much, and sometimes this leads to buyers remorse. So let’s help you arm your self with the mortgage not-to-do’s that can cause you to lose your new home, before you even move in.

Regardless if you are pre-approved for a mortgage or currently engaged in negotiating a home purchase with an approved mortgage, these rules below apply. The rules are especially important after you have removed your subjects on your purchase contract and put up your deposit to hold your home because if you make one bad move here you could lose your deposit which can be $10,000 to $100,000 and be subject to lawsuits.

  1. Thou shall not buy a new car, no matter what, or you may be living in it! It will impact your debt ratio’s and you could be declined.
  2. Thou shall not co-sign a loan for anyone, for anything. It will impact your debt ratio’s and you could be declined.
  3. Thou shall not quit or change your job. New job income’s can not be used for a mortgage application, and it will impact your debt ratio’s and you could be declined.
  4. Thou shall not use your Credit Cards or Line Of Credits for big purchase. It will impact your debt ratio’s and you could be declined.
  5. Thou shall not spend your down payment savings or closing costs savings verified by your mortgage company. They will decline you if they recheck.
  6. …Did I mention don’t quit your job?? That’s a big one. I’ve seen it twice in 15 years to my amazement and yes the lenders check up to 10 days before closing. They frown upon this.
  7. Thou shall not apply for new credit of any type, especially lines of credit for reno’s or furniture purchase. It will impact your debt ratio’s and you could be declined.
  8. Thou shall not make large deposits into your savings and chequing accounts. All deposits must now be verified and this takes time and could result in long delays at closing.
  9. Thou shall not allow any mortgage application to be processed with omitted OR missing debts or non-disclosed support payments. It will be found eventually and usually too late. This is your responsibility ultimately – your bank and mortgage brokers can’t read minds and don’t always see all debts up front.
  10. Thou shall not miss a payment or a cell phone bill. Any missed payments may lower your score and cause the lender to pull their approval.

I hope this list was helpful and if you are looking for a mortgage in Chilliwack, Abbotsford or Mission we have offices and mortgages brokers standing by! 

I personally would like to wish you and your families a healthy and prosperous 2018.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave 604 897 2741 Jordi 604 615 1312

www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

www.PeaceOfficeMortgageBroker.com

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Prepare for interest rate increases in 45 days due to CMHC increased premiums.

It’s Sunday and I just finished the chore of cleaning the bathrooms. I’m heading next to the elliptical machine to burn some shame before I line up a couple Field House beers this afternoon and watch golf 🙂

I’m blogging this morning after a busy start to our mortgage business in 2017. The first 4 weeks were more active then I expected, and I was optimistic coming into the year that our mortgage brokers were in for a busy Spring to begin with.

So before I go and listen to some embarrassing high energy Pop Music radio station on my phone I thought first I’d share some interest rate info I received at our broker meeting this past week. The big wigs at the different banks have now had time to read through and understand all the rule changes we have endured recently. They have determined that the next set of rule changes set to be implemented in the middle of March are no doubt going to lead banks to increased fixed interest rates as a result of more new expenses being passed along to our borrowers.

We got this exact same type of information late last year regarding increased expenses and saw our 5 year fixed mortgage rates increase from an average low of 2.39% to 2.44% in October to an average low of 2.69% to 2.74% the next month – That all happened very quickly essentially and I regret not helping more people lock in their mortgage rates last November. Well I’m not going to let that happen again so this time I’m announcing this change ahead of time and I will be calling as many people as I can in February before the March 17th deadline.

Now these rate increases are not written in stone yet but getting a rate hold is free so call now and avoid paying 3.09% to 3.19% or more on 5 year fixed mortgages rates.

 

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave  604 897 2741 Jordi 604 615 1312 www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

Connect with us on!  BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office 

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages.

 

 

 

How to Shrink Your Interest Paid

Currently, there is a ton of talk about what’s in store for interest rates. Will they rise or will they fall? Chances are, you’re are looking for some good advice on how to reduce the impact of a negative scenario: rate increases.

Besides winning the Powerball and paying off all your debt in full, here are my favorite tips to reducing interest costs–paying more interest on debts than you need to can significantly affect your finances, so consider doing one or all of these tips:

  • Hedge Your Bets: First of all, start by building an interest rate movement assumption into your thinking. What goes down, must go up. Okay, that may not be how the saying goes, but rates do have to go up. For no other reason then we need our investment returns to go up on our retirement savings — It’s not fair our grandparents bought the safest of investments, Canadian Bonds, and got away with an 11% return! We can’t get that today on high risk maneuvers!
  • Pre-Payment Privilege: It’s simple to compare interest rates by using a mortgage broker vs. a banker. So by using a Mortgage Broker like myself, your debt should always have lowest rates. So focus on amortization. I suggest setting up your loan at the longest amortization possible, so you can fall-back on low payments in the event something bad happens, like job loss. But–immediately use your privileges to pay extra. By increasing your monthly payment by 20%, you pay off a mortgage 5 years quicker! A typical $300,000 mortgage would eliminate over $82,000 dollars in payments at the end of the mortgage.
  • Accelerated Bi-Weekly: So now that we are attacking amortization, lets continue by paying accelerated bi-weekly. This again creates increase debt repayment by effectively making one extra monthly payment each year. That reduces your amortization by an additional 32 months! Roughly two and a half years less payments eliminates another $43,000.00 in payments. Between using your 20% privilege and paying accelerated bi-weekly, you have eliminated $125,000 from the end of you mortgage!
  • Other Debts: What should matter to you is the total average rate that you pay over all your loans and mortgages. Consider combing all of your debts for a more cost effective solution, but match your current payments to accelerate these debts payoff–do not pocket the savings of the lower rates.

Remember you can mortgage and debt plan the same way you tax plan or investment plan. You can protect your income and retirement through elimination of inefficient interest payments. These cash flow techniques not only pay down debt principle quicker, but also protect you from interest rate increase and fluctuation.

 

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”
 1 – 32540 Logan Ave
Mission BCV2V 6G3

&

360-3033 Immel St

AbbotsfordBCV2S 6S2

&

8387 Young Rd

ChilliwackBCV2P 4N8

Dave  604 897 2741 Jordi 604 615 1312
www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

www.BRMC.ca

www.PeaceOfficeMortgageBroker.com

Connect with us on!
 BRMC Facebook

 

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office 

http://www.linkedin.com/company/2410358

https://twitter.com/brmcmortgages

http://www.youtube.com/user/BRMCmortgages

We’re active on Facebook, Twitter, LinkedIn & YouTube. We really appreciate reviews! Good or Bad please let the world hear your voice! Connect with us for ongoing industry news items, contests & prizes.

*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp.