BRMC Vs. The Banks. Bigger Bang For Your Buck.

Here is another reason to use BRMC as your Abbotsford, Chilliwack and Mission mortgage brokers this year. If you are putting 20% down payment or more toward the purchase of your next home, working with an award winning BRMC broker will allow you the same purchase power as you could find last year before the new rule changes introduced Jan 1st 2018. That is 21%+ more home with us!

Here is an example of how we differentiate ourselves besides lower rates:

BUYING POWER – 21%+ Greater with BRMC

We can also help you purchase or refinance your home without the need of the financial stress if you are putting 20% down or more where as the majority of lenders have to qualify using the financial stress test which effectively reduces your purchase power by approximately 20% as indicated by the above example. The difference in not only a reduction purchase power but the style of home you are looking for ie townhome or home. In our current market renting a home is the same amount and if not more in some cases as owning your own home. . So ask yourself this question, why not use BRMC?

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave 604 897 2741 Jordi 604 615 1312

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office

www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

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www.linkedin.com

www.twitter.com/brmcmortgages

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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

BRMC Facebook

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office

www.linkedin.com/company/2410358

www.twitter.com/brmcmortgages

www.youtube.com/user/BRMCmortgages

1 New Mortgage Rule Change to Watch in 2017

As we head into the fall market and after 1 year since the last mortgage rule changes, OFSI (the governing body in Canada for financial services) are proposing yet another mortgage rule change that may impact your home buying/purchasing limits.  OFSI has proposed changes to the Guideline B-20 Residential Mortgage Underwriting Practices and Procedures (referred to as B-20 – http://www.osfi-bsif.gc.ca/Eng/fi-if/in-ai/Pages/rfmrm.aspx).  The most concerning change would be imposing a 200 basis point qualifying stress test for all uninsured mortgages.

What does this mean for the buyer?  Even a 50% downpayment, would be required to qualify for the mortgage based on a rate 2% higher than the actual mortgage rate you would be obtaining.  So, if the actual rate you were obtaining today were let’s say 2.99%, you would have to qualify for the mortgage based on a rate of 4.99%( 2.99% + 2% for qualifying rule = 4.99%)

This higher qualifying rate would essentially reduce the amount of mortgage that could be obtained  hence reduce the eligible purchase price for a new home.  On average, this would reduce  buying power by approximately 14%.

Here is an example of the reduction in buying power:

-Clients are selling home and buying a new one -Household Income: $120,000 per year -Down payment: Up to $180,000 (they want to put at least 20% down)  $120K Annual Income/20% down

 Today:    2.99%, 30 year amortization.     Max Purchase Price $900K     Down payment $180K     Max mortgage $720K

 Proposed:    4.99%, 30 year amortization     Max Purchase Price $800k     Down Payment $180K     Max Mortgage $620K

While this is still in the proposal stage, we anticipate this coming into effect mid to end of October 2017.  The good news is, buyers can prepare for these changes ahead of time. The most effective way is by obtaining a pre-approval now that secures the rate for up to 120 days. Although It is not certain that lenders would be able to honor the approval based on how OSFI rolls out the proposed changes, it is still one of the best ways to be proactive.  Let us review your options now and create an optimum mortgage plan. Contact us today for your free home financing advice.

                                            

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. 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.

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.