Abbotsford Mortgage News July 18th 2014.

Good morning Abbotsford, Chilliwack and Mission Realtors and Mortgage Clients. There were few surprises in the Bank of Canada’s rate statement on Wednesday July 16th. The overall tone remains cautious and the stance on interest rates remains neutral going forward (indicating no increases in rates any time soon). The implications were similarly neutral for the stock market after a very nice week and a record high close in the previous session (The TSX Benchmark Index is up 12% this year overall). With only one move in rates priced in until the end of 2015, it’s not surprising that the muted comments did not generate any significant reaction.

In other news, South of the Canada Boarder housing starts disappointed in June with weakness in both multiples and single family. The decline is attributable to the southern states where significant rainfall may have played a role. The soft housing figures may be slightly positive for bonds rates. In fact, while yields remain relatively range bound, there is a stubbornly persistent bid for bonds and 5yr GoC’s were 3-5bps lower on Thursday than a week ago. When Bonds drop, mortgages rates usually do the same.
  • TSX Benchmark Index is up 12% this year
  • Mortgage Rates to remain low, for now – Rates announced from BOC to hold tight.
  • Bonds and 5yr GoC’s were 3-5bps lower on Thursday than a week ago. When Bonds drop, mortgages rates usually do the same.
  • Normal Summer market cooling, still getting reports of multiple offers on well located and well priced single family homes.
  • Chilliwack had the strongest increase with the south Okanagan having a 46% increase in sales from June last year.

As we head into the full swing of summer and the corn and berries are selling up and down our local roads, the Abbotsford | Chilliwack | Mission Real Estate market cooled a bit, but we are still getting reports of multiple offers on well located and well priced single family homes.

Chilliwack shines in the Province of BC in terms of real estate sales year over year: In our province, total sales are up near 25%. The Okanagan, Kootenays and Chilliwack had the strongest increase with the south Okanagan having a 46% increase in sales from June last year. Total sales volume was also up near 25% to $23.8 billion.

From a Canadian Mortgage Brokers point of view this week, we had one unique piece of news: This week, First National (a Canadian Bank geared to serve Canadian Mortgage Brokers exclusively) announced that it has entered into an agreement with the TD bank to provide underwriting and fulfillment processing services for TD Bank to help them in mortgages originated by TD through the residential mortgage broker channel. We think this is very exciting because it will allow our Abbotsford | Chilliwack | Mission Mortgage Brokers at BRMC Mortgages to deliver even better customer service (Thanks FN) with more mortgage products (Thanks TD)! Great news!!

Now go find yourself a cold drink and a Hot BBQ this weekend! Stay classy Abbotsford, Chilliwack and Mission.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

360-3033 Immel St

Abbotsford BC V2S 6S2

&

8387 Young Rd

Chilliwack BC V2P 4N8

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

www.BRMC.ca

www.PeaceOfficeMortgageBroker.com

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*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.

Is your mortgage pre-approval worthless?

More than likely if you are reading this you have used a mortgage to buy a home in the Abbotsford, Mission or Chilliwack area. You most likely were savvy enough to work with a mortgage broker like us. Mortgage Brokers shop & fight for your right to low interest rates and better quality mortgage privileges. Your reward for working with an Abbotsford Mortgage Broker can be 10’s of thousands of dollars in savings and hopefully a fun, personalized experience.

When we are not shopping mortgages for our clients, we are making a difference for our clients by encouraging changes in the lending landscape of Canada through participation in our associations. Recently a new issue has come up. The Mortgage Insurers are constantly changing things such as the new potentially risk-based insurance premiums which they are currently talking about introducing. But this is not the mortgage default insurance policy we would like to see changed.

  • Pre-Approvals Save Time
  • Insurers won’t officially do a pre-approval
  • Pre-Approvals Save everyone money and heart break
  • We are the only local Broker/Bankers doing Pre-Approvals with Insurers 

CMHC, Canada Guaranty and Genworth (ALL 3 Canadian mortgage insurers) will not look at a client application until they have gone to the trouble to actually buy a house. This leads to disappointed and ‘turns-downs’ after home buyers spend weeks with a Realtor finding a dream home. Our firm has found work around to this to help save you time & money but it requires many complicated hoops and unnecessary time being wasted by all parties to get it done properly today. Why can’t we simply send in an application for a pre-approval?

So if your bank tells you that you are pre-approved, it may not be worth the piece of paper that says you’re pre-approved. We believe our extra effort in this area to properly obtain a CMHC approval sets us apart from our competition and makes our service more valuable but “come on man”, we have got to get these insurers looking at pre-approvals. I hate to see a dream home slip away from anyone because they were needlessly shopping with a improper pre-approval.

By Referral Mortgage Consultants*“Click, Call, Chat – Award Winning Brokers”
1 – 32540 Logan Ave
Mission BC V2V 6G3
& 360-3033 Immel StAbbotsford BC V2S 6S2&8387 Youg RdChilliwack BC V2P 4N8 Dave  604 897 2741 Jordi 604 615 1312
www.AbbotsfordsMortgageBroker.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. 

 

You just got taxed.

When CMHC announced earlier this week that they were making a major announcement on Friday Feb 28th at 8am rumors started swirling on what it might be about.

Abbotsford Mortgage Clients and Abbotsford Realtors alike heard rumors including increasing minimum down payment to 10% down instead of 5% or that conventional mortgages would start at 35% down payment instead of current 25% down payment to avoid paying cmhc insurance all together. Mortgage Brokers in Abbotsford, Chilliwack and Mission also theorized that CMHC would increase the minimum credit bureau score requirements or eliminate gifted down payments for insured home buyers.

Well neither of these came to fruition, instead CMHC anounced that they would be increasing their fees as follows:

Loan-to-Value Ratio & New Standard Premium (Current)

Standard Premium (Effective May 1st, 2014)

Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%
90.01% to 95% – Non-Traditional Down Payment 2.90% 3.35%

To put this in perspective, on a $100,000 purchase with 5% down you will have a one time premium increase of $379.50 and it will increase your payment $1.86.

  • A premium increase of $379.50 per $100,000 of mortgage added to mortgage
  • A minimal increase in your payments of $1.86 per $100,000 of mortgage per month

A 3.15% premium is not unheard of in the industry. In January of 2011 clients were able to purchase a house with 5% down with a 35 year amortization. The CMHC premium for that product was 3.15% (CMHC would use a 2.75% premium for a 25 year amortization but then increase it .20% for every 5 years added onto the amortization). January of 2011 the 35 year amortization was reduced to a max of 30 years, and followed in July of 2012 further reduced from a max of 30 years to 25 years.

Why was this done?? For the six months ending June 30th 2013, CMHC net income was $824,000,000! Since CMHC’s profit ends up in the governments coffers this increase will effectively end up as additional income to the government. So in the end this is just another back end tax done by the government of Canada.

But what most people we are talking to ask is, “Will this affect the local Real Estate market?” – The short answer on that is No.

Personal Budget Blown Too? We have a ‘Gross’ problem.

When searching for blog ideas this month, it became quickly obvious that all of us could use some helpful, easy-to-use information on how to spend less money than we make. Due to the holiday spending, we have had many people asking us to address this topic. We even texted the BRMC Mortgage Broker Team and asked them if a “Budget Solutions for our Clients” would be a good topic this month, and I received our first group agreement in almost a year! (LOL) So here we go:

 

“My problem lies in reconciling my ‘gross’ habits with my ‘net’ income.”

— Errol Flynn

Even Hollywood Stars can spend more than they earn.

 

Well said and very funny, Errol. I love his play with accounting words. Mind you, I believe this Hollywood Star’s “Gross Habits” were probably much different than ours here in Abbotsford. I’m sure we are all are guilty of ‘grossly’ spoiling our kids and spending a few extra dollars on ourselves over the holiday season, despite our net income limitations.

Now, what can we do to correct this? A budget? Nope. Have YOU ever been on one? They don’t work for most of us. Much like our post-holiday/New Year’s resolution diets, it’s hard to stick to a budget that is not part of our lifestyle already. To train ourselves to implement good habits during the darkest, coldest months of the year is simply a recipe for failure. So instead, let us approach this issue as being a payment problem rather than an income problem. We can help change your bill payments and simply reduce them, while arranging to pay off the debts quicker!

At BRMC Mortgages, we are well-versed in solutions that will cut down your monthly bill payments so you have money left over at the end of the month (no budget required). We can save you thousands of dollars per year you spend on higher interest rate debts, such as cars, visas and even mortgages.

If you own a house, we can also help you also book that long-awaited sunny, all-inclusive vacation while we are at it–all we have to do is set up an Abbotsford Debt Consolidation plan for you. Call us today for more information.

Jordi Browne

 

 

Jordi Browne and Dave Browne: BRMC Mortgage – Thanks you for taking the time to read our blog.

 

Want to see what everyone thinks of us? Check out our reviews and make a comment please 🙂
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 and We really appreciate reviews! Good or Bad please let the world hear you voice! Connect with us for ongoing industry news items, contests & prizes.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”
1 – 32540 Logan Ave
Mission BC V2V 6G3

&

360-3033 Immel St

Abbotsford BC V2S 6S2

&

8387 Young Rd

Chilliwack BC V2P 4N8

 

C Jordi 604 615 1312 C dave 604 897 2741
O 604 826 2599
F 604 826 2621

www.AbbotsfordsMortgageBroker.com

www.BRMC.ca

 

Connect with us on Facebook: www.facebook.com/BRMCMortgages

 

*By Referral Mortgage Consultants – doing business as BRMC is a co-brokerage between Verico Preferred Financing Inc and Verico Canadian 1st Mortgage Corp. Offices in CHILLIWACK, ABBOTSFORD, MAPLE RIDGE and MISSION.