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.

 

 

 

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

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www.PeaceOfficeMortgageBroker.com

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