Refinancing your home, choosing to be proactive in reactive times.

Refinancing your home, choosing to be proactive in reactive times

 

With uncertain times ahead we are receiving a lot of calls regarding taking equity out of people’s residences.  Some people are doing this as they are concerned about being off work for an extended time, others are using this time to refinance all off their debt and putting it into one simple payment, while there are people just looking to take advantage of these new low rates to lower their interest on their mortgage.

If you are in the group of people that are concerned about their employment I would suggest doing this before any changes at work as lenders will not lend to anyone who is not working.   

The government has set limits on the maximum you can borrow against your house and the chart is below

This type of financing that Baars received the loan amount into as much as 80% of the value of their house. Lenders allow these homeowners to pay for the refinanced mortgage for a long period of time, and their interest rates are generally lower compared to the rates of other types of personal loans.

Appraised value of your home $300,000
Maximum loan you may get x 80%
Loan amount based on appraised value of your home = $240,000
Less balance you owe on your mortgage – $175,000
Refinancing credit limit $65,000

There are many valid reasons for you to refinance your home, and there are certainly several advantages that come with doing so if accomplished at the right time. We believe the right time is now, to successfully access your home’s equity and to secure another loan with more favorable terms while providing yourself with emergency funds in uncertain times.

Contact our Brokers as Browne Mortgages + More to talk about refinancing your home today!

The #1 Reason Rates Are Dropping

The #1 Reason Rates Are Dropping

Here at Browne Mortgages + More we strive to be transparent about the ever-changing mortgage rates. As COVID-19 (Coronavirus) has had a material shock on Canadian and global outlooks, the monetary and fiscal authorities are responding. Because of this, we are seeing fixed interest rate reductions from mortgage lenders across the board.

What does that mean for you?

Today’s current interest rate is 2.49%!

This shockingly fast and low rate drop is EXCELLENT for anyone getting a mortgage or changing their existing one. NOW is the time to make a change to your mortgage if you’re considering the following:

  • Renovations
  • Debt consolidation
  • Second home purchase
  • Rental property purchase
  • Early mortgage renewal

If you’ve considered buying, this is a perfect time!

Our team offers complimentary mortgage reviews to see if making a change is worth it. This change could save you thousands in interest.

 

 

 

Corona Virus & Mortgage Rates

Corona Virus & Mortgage Rates

I am sure you have all heard of the Coronavirus spreading throughout parts of the world. As this virus continues to spread,  Mortgage Rates are dropping due to this event. We’ve seen bond rates drop by 0.41% in the last 45 days and are continuing to decline.

More to come in the next week.

Buying a Former Grow-Op – Abbotsford, BC

When it comes to purchasing a former grow-op home, mortgage financing can be tricky. Here are five important facts you should know in advance:

  1. Fewer lenders will finance former grow-ops.

Credit unions seem to be a little more lenient when it comes to securing a mortgage, but we would still recommend using a seasoned Abbotsford mortgage broker, or one in your local area who is familiar with the process as financing will be very limited and there are several requirements that need to be met before the lender even considers financing.

  1. Expect to pay a higher interest rate and/or fees to the lender or brokerage.

From a lender’s perspective, there are risks associated to lending on any property, especially one that was used as a previous grow-op. There is also a significant amount of administrative work to be done on files such as these, therefore the lender/brokerage will often charge a fee to offset staffing costs and related administrative costs.

You can also expect to pay a higher interest rate (as much as 2% greater). Risk for the lender increases drastically when it comes to financing a former grow-op. For the lender to have a sense of security they will often inflate the interest rate to provide some sort of cushioning should the mortgagor (borrower) default on the mortgage.

  1. Have extra cash set aside, as costs can exceed $10,000+.

Majority of lenders/banks will require a copy of a remediation report. What this means is that you as the potential buyer will need to hire a company that specializes in testing different aspects of the former grow-op. These companies look at things such as air quality, moisture, mold, electrical etc. Once the inspection is complete, they will provide a document which is referred to as the “remediation report”. This type of inspection can be costly and is only one step out of many others that you’ll need to complete.

  1. If the grow-op home was illegal and resulted in a filed police report, re-occupancy will need to be reinstated by the city.

Lenders/banks will also require proof that “occupancy” was reinstated. If the grow-op of interest was illegal and resulted in a report being filed, the city will then remove what is called “occupancy” from the home’s title. What this means is that it is no longer legal for someone to physically reside in that home unless the occupancy is reinstated. To reinstate occupancy, you will have to file a request through the city and they too will often ask for a remediation report.

  1. Patience and determination will be very important when it comes to buying your former grow-op home.

Expect the unexpected, it’s likely that there will be bumps throughout this process, so patience is a virtue. In some cases, the former grow-op has not been necessarily “busted” and no report filed. Therefore, occupancy was never removed and when the lender asks for reinstated occupancy, you as the buyer of interest, won’t have anything to provide. This is where these cases become challenging and when your selection in a mortgage specialist becomes crucial.

If you’ve considered buying a former grow-op home and would like more information, give our team a call @ 604-795-2933 or send us an email jordi@brownemortgage.com.